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23-Jun-2005

27

The Bihar Value Added Tax Act, 2005

https://www.indiacode.nic.in/bitstream/123456789/18937/5/A2005-27.pdf

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# THE BIHAR VALUE ADDED TAX ACT, 2005 ____________ # ARRANGEMENT OF SECTIONS __________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II INCIDENCE OF TAX 3. Charge of tax. 4. Levy of purchase tax. 5. Liability to pay purchase tax on certain purchases. 6. Non-levy of tax in certain cases. 7. Exemptions. 8. Burden of proof. CHAPTER III TRIBUNAL AND TAXING AUTHORITIES 9. Tribunal. 10. Taxing Authorities and Inspectors. 11. Protection of action taken in good faith. 12. Power to issue summons and examine on oath. CHAPTER IV RATE OF TAX AND POINT OF LEVY 13. Point or points in series of sales at which sales tax shall be levied. 14. Rate of tax. 15. Compounding of tax liability in certain cases. 16. Input tax credit. 17. Exports to be zero-rated. 18. Rate of tax on packing materials and containers. ----- CHAPTER V REGISTRATION SECTIONS 19. Registration. 20. Amendment and cancellation of certificate of registration. 21. Security. 22. Declared manager. 23. Furnishing of information by dealers. CHAPTER VI RETURNS, ASSESSMENT, RE-ASSESSMENT AND PAYMENT OF TAX 24. Returns, payment of tax, interest and penalty. 25. Scrutiny of returns. 26. Self-Assessment of tax. 27. Assessment of dealer not filing returns. 28. Assessment of tax of dealers evading registration. 29. Assessment of tax on disputed question. 30. Assessment of tax of non-resident dealer doing business temporarily by way of fair, mela, etc. 31. Assessment or re-assessment of tax of escaped turnover. 32. Escaped turnover detected before or at the time of assessment of tax. 33. Assessment of tax based on audit objections. 34. Assessment of tax proceedings, etc., not to be invalid on certain grounds. 35. Taxable turnover. 36. Tax payable by a dealer. 37. Time limit for completion of proceeding of assessment of tax. 38. Exclusion of time in assessment tax proceedings. 39. Payment and recovery of tax. 40. Advance recovery of tax on sales and supplies to Governments and other persons. 41. Advance recovery of tax from works contractors. 42. Production of tax clearance certificate. 43. Restriction on collection of tax by dealers. 44. Forfeiture of tax collected in violation of this Act. 45. Rounding off of tax liability. 46. Recovery of tax as arrears of land revenue. 47. Special mode of recovery of tax and other liabilities under this Act. 48. Liability of surety. 49. Transfers to defraud revenue void. ----- SECTIONS 50. Period of limitation for recovery of tax. 51. Tax to be first charge on property. CHAPTER VII BOOKS OF ACCOUNT AND FURNISHING OF INFORMATION 52. Maintenance of accounts. 53. Issue of tax invoice and debit and credit notes. 54. Accounts to be audited in certain cases. 55. Furnishing of information by Government departments, banks, financial institutions clearing and forwarding agents and owners of warehouses, godowns and others. CHAPTER VIII INSPECTIONS, SEARCH AND SEIZURE 56. Production of books of account, inspection, search and seizure. 57. Cross checking or verification of transactions. 58. Survey. 59. Control on clearing, forwarding or booking agent and any person transporting goods. CHAPTER IX CHECK-POSTS AND RESTRICTIONS ON MOVEMENT 60. Establishment of check-posts. 61. Restriction on movement of goods. 62. Transportation of goods through State of Bihar. CHAPTER X LIABILITIES OF REPRESENTATIVE CHARACTER 63. Liability to pay tax in case of transfer of business. 64. Tax payable by deceased dealer shall be paid by his representative. 65. Tax-liability of guardian and trustee, etc. 66. Tax-liability of court of wards. 67. Liability in case of dissolution of firm, etc. ----- CHAPTER XI REFUNDS AND ADJUSTMENTS SECTIONS 68. Refunds. 69. Provisional refunds. 70. Interest on delayed refund. 71. Power to withhold refund in certain cases. CHAPTER XII APPEAL, REVISION AND REVIEW 72. Appeal to Deputy Commissioner and Joint Commissioner. 73. Appeal to Tribunal. 74. Revisionary powers of Commissioner. 75. Additional evidence in appeal or revision. 76. Review. 77. Determination of disputed questions. 78. Power to transfer proceedings. 79. Appeal before High Court. 80. Case before High Court to be heard by not less than two Judges. CHAPTER XIII OFFENCES AND PENALTIES 81. Offences and penalties. 82. Cognizance of offences. 83. Investigation of offences. 84. Offences by companies and others. 85. Compounding of offences. CHAPTER XIV BUREAU OF INVESTIGATION 86. Bureau of Investigation. ----- CHAPTER XV MISCELLANEOUS SECTIONS 87. Appearance before taxing authorities. 88. Change of an incumbent of an office. 89. Bar to certain proceedings. 90. Disclosure of information by public servant. 91. Agreements to defeat intention and application of this Act to be void. 92. Write off of dues. 93. Power to make rules. 94. Repeal and savings. 95. Declaration of stock of goods held on 1st April, 2005. 96. Transitory provisions. 97. Construction of references in any repealed law to officers, authorities, etc. 98. Removal of difficulty. 99. Laying of notifications on the table of the State Legislature. 100. Validation of Bihar Value Added Tax Ordinance, 2005. SCHEDULE I. SCHEDULE II. SCHEDULE III. SCHEDULE IV. SCHEDULE V. ----- # THE BIHAR VALUE ADDED TAX ACT, 2005 ACT NO. 27 OF 2005 [23rd June, 2005.] # An Act to consolidate and amend the law relating to levy of tax on sales or purchases of goods in the State of Bihar and to provide for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-sixth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Bihar Value Added Tax** Act, 2005. (2) It shall extend to the whole of the State of Bihar. (3) It shall be deemed to have come into force on the 1st day of April, 2005. **2. Definitions.–In this Act, unless the context otherwise requires,—** (a) “Assessing Authority” means any of the authorities referred to in section 10 who is directed under sub-section (2) of that section to exercise or perform all or any of the powers and functions conferred on an Assessing Authority under this Act; (b) “Assistant Commercial Taxes Officer” means an Assistant Commercial Taxes Officer appointed under sub-section (1) of section 10; (c) “Assistant Commissioner of Commercial Taxes” means an Assistant Commissioner of Commercial Taxes and Additional Assistant Commissioner of Commercial Taxes appointed under sub-section (1) of section 10; (d) “business” includes,— (i) any trade, commerce, manufacture or any adventure or concern in the nature of trade, commerce, manufacture, whether or not such trade, commerce, manufacture, adventure or concern is carried on with a motive to make gain or profit and whether or not any gain or profit accrues from such trade, commerce, manufacture, adventure or concern; (ii) any transaction of sale or purchase in connection with, or incidental or ancillary to, such trade, commerce, manufacture, adventure or concern; and (iii) any transaction in connection with, or incidental or ancillary to, the commencement or closure of such business; (e) “capital goods” means plant, machinery and equipment used in trade or manufacturing of goods; (f) “casual trader” means a person, who, whether as principal, agent or in any other capacity undertakes occasional transactions in the nature of business involving buying, selling, supply or distribution of goods or conducting any exhibition-cum-sale in the State of Bihar, whether for cash, deferred payment, commission, remuneration or other valuable consideration; (g) “Commercial Taxes Officer” means a Commercial Taxes Officer appointed under sub-section (1) of section 10; (h) “Commissioner” means the Commissioner of Commercial Taxes appointed under sub-section (1) of section 10 or Additional Commissioner of Commercial Taxes and any other officer upon whom the State Government may, by notification, confer all or any of the powers and duties of the Commissioner under this Act; (i) “dealer” means any person who, whether regularly or otherwise, in the course of business, buys, sells, supplies, distributes or does anything incidental to such buying, selling, supplying or ----- distributing of goods, directly or indirectly, whether for cash, or for deferred payment or for commission, remuneration or other valuable consideration and includes— (A) a local authority; (B) a Hindu undivided family; (C) a company, or any society (including a co-operative society), club, firm, association of persons or body of individuals, whether incorporated or not, which carries on such business; (D) a society (including a co-operative society), club, firm or association which buys goods from, or sells, supplies or distributes goods to its members; (E) an industrial, commercial, banking or trading undertaking, whether or not, of the Central Government or of any of the State Governments or of a local authority; (F) a casual trader; (G) a commission agent, broker, factor, a _del credere agent, an auctioneer or any other_ mercantile agent, by whatever name called, who carries on the business of buying, selling, supplying or distributing goods on behalf of the principal. _Explanation.—Every person who acts as an agent on behalf of a dealer residing outside the_ State of Bihar and buys, sells, supplies or distributes goods in the State or acts on behalf of such dealer as— (a) a commission agent, broker, factor, a _del credere agent, an auctioneer or any other_ mercantile agent, by whatever name called; or (b) an agent for handling goods or documents of title to goods; or (c) an agent for the collection or the payment of the sale price of goods or as a guarantor for such collection or payment; or (d) a local branch of a firm or company situated outside the State, shall be deemed to be a dealer for the purposes of this Act; (j) “declared goods” means goods declared under section 14 of the Central Sales Tax Act, 1956 (74 of 1956) to be of special importance in inter-State trade or commerce; (k) “Deputy Commissioner of Commercial Taxes” means the Deputy Commissioner of Commercial Taxes or Additional Deputy Commissioner of Commercial Taxes appointed under sub-section (1) of section 10; (l) “goods” means all kinds of movable property including livestock, computer software, any electronic chip used for the purpose of storing or transmitting data or voice and all materials, commodities and articles (as such or in some other form) but excluding newspapers, electricity, actionable claims, stocks, shares or security. _Explanation.—For the purposes of this clause, materials, commodities and articles,–_ (i) attached to or forming part of an immovable property which are agreed to be severed under the contract of sale; or (ii) sold or supplied as such or in some other form in the execution of works contract, lease or hire purchase, shall be deemed to be goods within the meaning of this clause; (m) “goods carrier” means a motor vehicle, vessel, boat, animal and any form of conveyance used for carrying goods; (n) “Government” means the Government of the State of Bihar; (o) “gross turnover” means,— (i) for the purposes of levy of tax on sales, in respect of sale of goods, aggregate of sale prices received or receivable by a dealer on sales and includes sale of goods made outside the State of Bihar or in the course of inter-State trade or commerce or export but does not include sale price of goods which have borne the incidence of tax on purchases under sections 4 and 5; ----- (ii) for the purposes of levy of tax on purchase, aggregate of purchase prices paid or payable by a dealer during any given period in respect of purchase of goods or class or description of goods which are liable to tax under sections 4 and 5; and (iii) for the purposes of section 3, the aggregate of the amounts under sub-clauses (i) and (ii) above. _Explanation.—For the purposes of this clause, the amount received by a dealer on account of price_ variation or price escalation in respect of sale or supply of goods shall be deemed to form part of gross turnover of the financial year during which it is actually received; (p) “importer” means a dealer who brings any goods into the State of Bihar or to whom any goods are despatched from any place outside the State of Bihar; (q) “input” means goods (excluding goods specified in Schedule IV) purchased in the course of business— (a) for re-sale; (b) for use in manufacture of goods including packing materials; (c) for use as capital goods as defined in clause (e); (r) “input tax” means the amount paid or payable by a registered dealer, by way of tax under this Act, in respect of purchase of any taxable goods; (s) “Inspector” means an Inspector of Commercial Taxes appointed under sub-section (3) of section 10; (t) “month” means a calendar month; (u) “notification” means a notification published in the Official Gazette; (v) “output tax” means the tax charged or chargeable in respect of sale or supply of goods made by a registered dealer; (w) “place of business” means any place where a dealer, either usually or for the time being, manufactures, sells or purchases goods or keeps accounts of stocks, manufactures, sales or purchases, execution of works contracts, hire purchase contracts and lease contracts or any other place where business activity takes place and includes— (i) the place of business of an agent, in case of a dealer carrying on business through an agent; or (ii) any place or building in which a person carrying on a business, keeps any of his books of account, documents, stocks or other things, relating to his business; (x) “prescribed authority” means the authority prescribed by the rules made under this Act to exercise powers conferred under different provisions and perform such functions as may be conferred by or under this Act; (y) “prescribed” means prescribed under the rules made under this Act; (z) “purchase price” means the amount paid or payable by a dealer as a valuable consideration in respect of purchase of goods and includes— (i) any amount charged for anything done by the vendor in respect of the goods at the time of, or before, the delivery thereof; (ii) transport costs or freight, if any; (iii) trade commission, if any, by whatever name called; (iv) clearing, forwarding and handling charges, if any; (v) insurance charges, if any; (vi) taxes or duties under any law for the time being in force (other than tax paid or payable under this Act) by whatever name called, if any; ----- (vii) cost of packing, if any; and (viii) the amount paid or payable by the purchaser by way of non-refundable deposit, whether by way of a separate agreement or not, in connection with or incidental or ancillary to, the said purchase of goods; (za) “quarter” means the quarter ending on the 30th June, 30th September, 31st December and 31st March and the expression “quarterly” shall be construed accordingly; (zb) “registered dealer” means a dealer in possession of a valid certificate of registration granted to him under section 19 or under the provisions of the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94; (zc) “sale” with all its grammatical variations and cognate expressions means any transfer of property in goods for cash or deferred payment or for other valuable consideration and includes— (i) a transfer, otherwise than in pursuance of a contract, of property in any goods for cash, deferred payment or other valuable consideration; (ii) a transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract; (iii) a delivery of goods on hire purchase or any system of payment by instalments; (iv) a transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration; (v) a supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration; (vi) a supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (whether or not intoxicating) where such supply or service is for cash, deferred payment or other valuable consideration, and such transfer, delivery or supply of any goods shall be deemed to be a sale of those goods by the person making the transfer, delivery or supply and purchase of those goods by the person to whom such transfer, delivery or supply is made; (zd) “sale price” means the amount payable to a dealer as valuable consideration for the sale or supply of any goods and includes— (i) any amount charged for anything done by the vendor in respect of the goods at the time of, or before, the delivery thereof; (ii) transport costs or freight, if any; (iii) trade commission, if any, by whatever name called; (iv) clearing, forwarding and handling charges, if any; (v) insurance charges, if any; (vi) taxes or duties levied under any law for the time being in force (other than tax paid or payable under this Act) by whatever name called, if any; (vii) cost of packing, if any; and (viii) the amount received or receivable by the seller by way of non-refundable deposit, whether by way of a separate agreement or not, in connection with or incidental to or ancillary to, the said sale of goods; _Explanation I.—Where goods are sold on hire purchase or any system of payment by instalments,_ the sale price of such goods shall be inclusive of insurance charges, interest and hire charges and such other charges related to hire purchase or any system of payment by instalments. _Explanation II.—Where goods are sold by way of transfer of right to use such goods, the sale price_ thereof shall be the amount of valuable consideration received or receivable by the transferor for such transfer; ----- (ze) “tax” means the tax leviable and payable under this Act; (zf) “taxable goods” means all goods in respect of which tax is payable under section 14; (zg) “Tribunal” means the Tribunal constituted under sub-section (1) of section 9; (zh) “works contract” means any agreement for carrying out for cash or deferred payment or other valuable consideration, the construction, fitting out, improvement or repair of any building, road, bridge or other immovable or movable property; (zi) “year” means the financial year. CHAPTER II INCIDENCE OF TAX **3. Charge of tax.—(1) Every dealer who is registered under the Bihar Finance Act, 1981 (Bihar Act 5** of 1981), as it stood before its repeal by section 94, shall be liable, on or after the commencement of this Act, to pay tax under this Act on sale or purchase, made by him. (2) Every dealer, to whom sub-section (1) does not apply, shall be liable to pay tax on sale or purchase, as the case may be, from the date on which his gross turnover, during a period not exceeding twelve months, first exceeded five lakh rupees. (3) Notwithstanding anything contained in sub-section (1) or sub-section (2) but subject to the other provisions of this Act, every dealer,— (a) being an importer or a manufacturer; or (b) who is required to file a return under the Income-tax Act, 1961 (43 of 1961); or (c) who holds any licence under the Explosives Act, 1884 (4 of 1884), or the Bihar Excise Act, 1915 (Bihar and Orissa Act 2 of 1915), or the Drugs and Cosmetics Act, 1940 (23 of 1940), or the Essential Commodities Act, 1955 (10 of 1955) or the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957); or (d) being a corporation, constituted under any law for the time being in force or a company incorporated under the Companies Act, 1956 (1 of 1956), or, is registered under the Central Sales Tax Act, 1956 (74 of 1956); or (e) whose place of business is located inside the market yard established under the Bihar Agriculture Produce Market Act, 1960 (Bihar Act 16 of 1960); or (f) who fulfils the following two conditions, namely:— (i) uses a telephone in his place of business or has a mobile telephone; and (ii) the receipts or payments of whose business, either wholly or in part, are transacted through any bank, shall be liable to pay tax on sale or purchase, as the case may be, with effect from the date of the first sale of any taxable goods made by him. (4) Every dealer who has become liable to pay tax under sub-sections (1), (2) and (3) shall, subject to the provisions of sub-section (5), cease to be so liable after the expiry of twelve consecutive months from the date he either closes or discontinues his business or entirely transfers his business to another person. (5) A registered dealer shall, within a period of twelve consecutive months, pay tax on the stock of goods remaining with him on the date with effect from which he closes or discontinues his business: Provided that the Commissioner may, after recording the reasons, extend the period of twelve consecutive months if the goods are held in stock beyond the said period of twelve months because of reasons beyond the control of the dealer. ----- (6) Notwithstanding anything contained in sub-section (1) or sub-section (2) or sub-section (3), where any person who, is, or was, less than six months earlier, a member of the partnership firm, concern or Hindu undivided family, which is, or was, less than six months earlier, liable to pay tax, starts a new business, either singly or jointly with other persons, or joins other business, partnership firm or concern, tax as aforesaid, shall likewise be payable on sales and purchases made from such business, partnership firm or concern, on and from the date the person starts or joins it, unless the liability in respect of such business, partnership firm or concern has arisen from an earlier date under the said sub-sections. (7) The tax for each year or any part thereof, may, with the previous approval of the Commissioner, be estimated and collected in advance, in the manner prescribed, during a year, in such instalments as may be fixed by the prescribed authority. (8) For the purposes of sub-section (7), the prescribed authority may require the dealer to furnish an advance estimate of his taxable turnover for that year or any part thereof and may provisionally determine the amount of tax payable by the dealer in respect of the year or any part thereof and thereupon the dealer shall pay the amount so determined by such date as may be fixed by such authority. **4. Levy of purchase tax.—Subject to the provisions of sections 6 and 7, every dealer liable to pay tax** under section 3, who purchases goods in circumstances in which no tax on sales is payable or has been paid on the sale price of such goods and either consumes such goods in the manufacture of other goods for sale or otherwise disposes of such goods in any manner other than by way of sale in the State or sale in the course of inter-State trade or commerce, shall be liable to pay tax on the purchase price of such goods at the same rate at which it would have been leviable on the sale price of such goods under section 14. **5. Liability to pay purchase tax on certain purchases.–Where a dealer purchases any taxable goods** from any person within the State of Bihar, and such person is not a registered dealer and the said goods are used as capital assets anytime after such purchase, there shall be levied, a tax on the purchase price of such purchases at the rate at which tax on sales is leviable on the said goods. **6. Non-levy of tax in certain cases.—(1) No tax shall be payable under this Act on sales or purchases** of goods which have taken place— (a) in the course of inter-State trade or commerce; (b) outside the State of Bihar; (c) in the course of import of goods into, or, export of goods out of, the territory of India. (2) The provisions of the Central Sales Tax Act, 1956 (74 of 1956) shall apply for determining when a sale or purchase of goods shall be deemed to have taken place in any of the ways mentioned in clause (a) or clause (b) or clause (c) of sub-section (1). **7. Exemptions.—No tax shall be payable on sale or purchase of goods specified in Schedule I.** **8. Burden of proof.—The burden of proving that any sale or purchase effected by a dealer is not liable** to tax under section 6 or section 7 or sub-section (2) of section 13, as the case may be, or that he is eligible for an input tax credit under sections 16 and 17 shall be on the dealer. CHAPTER III TRIBUNAL AND TAXING AUTHORITIES **9. Tribunal.—(1) Subject to such rules, as may be prescribed, the State Government shall, by a** notification published in the Official Gazette, constitute a Tribunal to be called the Commercial Tax Tribunal consisting of a Chairperson and two other Members to exercise all the powers and perform all the functions conferred by or under this Act or any other law for the time being in force upon such a Tribunal: Provided that till the Tribunal is constituted under this Act, the Tribunal constituted under the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94, shall be deemed to be the Commercial Tax Tribunal constituted under this Act and shall exercise all the powers and perform all the functions conferred by or under this Act or any other law for the time being in force. (2) The Chairperson of the Tribunal shall be a retired High Court Judge, not exceeding sixty-five years of age, or a judicial officer of the rank of a District Judge. ----- (3) One of the other two Members shall be an officer of the Commercial Taxes Department of the State Government not below the rank of Joint Commissioner and the third Member shall be a person— (a) who has, for at least ten years, been in the practice of accountancy as a chartered accountant under the Chartered Accountants Act, 1949 (38 of 1949) or as a registered accountant under any law formerly in force or partly as a registered accountant and partly as a chartered accountant; or (b) who is or has been an officer of the Indian Audit and Accounts Service not below the rank of Deputy Accountant-General; or (c) who is a Government servant, whether serving or retired having experience of at least four years in the administration of accounts or financial management in the State Government or public sector undertaking. (4) (a) The State Government may, if it considers expedient to do so, set up by a notification, one or more additional benches of the Tribunal at such places and having jurisdiction over such area as may be specified in the notification. (b) It shall consist of such Member or Members, as may be specified in the notification, possessing such qualifications as are specified in sub-sections (2) and (3): Provided that if a judicial officer is appointed to such an additional bench, he shall be an officer not below the rank of an Additional District Judge. (5) Any vacancy in the membership of the Tribunal shall be filled up by the State Government as soon as possible. (6) During the vacancy in the post of the Chairperson pending the appointment of a permanent Chairperson, the Government may appoint one of the remaining members to act as the Chairperson. (7) Any person appointed as a member of the Tribunal shall ordinarily hold office for a period of three years: Provided that in case a retired High Court Judge is appointed as the Chairperson or any other Government servant is appointed as a Member, after his superannuation to the Tribunal, the terms and conditions of service (including his pay and allowances) shall be such as may be prescribed. (8) (a) The functions of the Tribunal shall be exercised by a bench to be constituted by the Chairperson consisting of one or two or three members. (b) The nature of cases to be disposed of by either of these benches shall be under the discretion of the Chairperson: Provided that a bench consisting of only one Member or two Members may in its discretion refer a case to a larger bench of two or three Members, as the case may be. (9)(a) Where an application is heard by all the three Members of the Tribunal and the Members are divided in opinion on any point or points, such point or points shall be decided in accordance with the opinion of the majority: Provided that if the post of any one of the Members is vacant such points shall be decided in accordance with the opinion of the Chairperson. (b) Where an application is heard by a bench consisting of two Members, whether it consists of the Chairperson or not, and the Members are divided in opinion on any point or points, such point or points shall be referred to a bench consisting of all the three Members. (10) (a) The Members of the Tribunal shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). (b) No Member shall accept any other paid employment outside the duties of his office during the term of his membership of the Tribunal. (11) The Tribunal shall, with the previous sanction of the State Government, make regulations consistent with the provisions of this Act and the rules made thereunder, for regulating its procedure and other matters incidental to the disposal of its business and publish such regulations in the Official Gazette. ----- (12) The Members of the Tribunal shall, ordinarily be appointed for a period of three years from the date of their appointment: Provided that the period of appointment may be reduced or extended by the State Government. (13) The Chairperson or any other Member may, by notice in writing under his hand addressed to the State Government, resign his office: Provided that the Chairperson or any other Member shall, unless he is permitted by the State Government to relinquish his office sooner, continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is the earliest. (14) The Chairperson or any other Member of the Tribunal shall not be removed from his office except by an order by the State Government on the ground of proved misbehaviour or incapacity after an inquiry made by a Judge of the High Court, in which the Chairperson or any other member concerned has been informed of the charges against him and given a reasonable opportunity of being heard in respect of those charges. (15) The State Government may, by rules, regulate the procedure for the investigation of misbehaviour or incapacity of the Chairperson or any other Member. **10. Taxing Authorities and Inspectors.—(1) There shall be the following classes of authorities to be** appointed by the State Government, for carrying out the purposes of this Act, namely:— (a) Commissioner of Commercial Taxes; (b) Senior Joint Commissioner of Commercial Taxes; (c) Joint Commissioner of Commercial Taxes; (d) Deputy Commissioner of Commercial Taxes; (e) Assistant Commissioner of Commercial Taxes; (f) Commercial Taxes Officer; (g) Assistant Commercial Taxes Officer. (2) The authorities appointed under sub-section (1) shall, within such areas or in respect of such transactions falling within an area as the State Government may, by notification specify, exercise such powers as may be conferred and perform such duties as may be imposed, by or under this Act. (3) The Commissioner may appoint such number of Inspectors of Commercial Taxes as may be necessary to assist any of the authorities appointed under sub-section (1) and the Inspectors so appointed shall, within such areas exercise powers under sub-sections (1) and (2) of section 56 and perform such other functions in the execution of this Act in those areas as may be prescribed or as the Commissioner may, by general or special order, assign to them and such assignment may be subject to such conditions and restrictions as may be specified in the order. (4) All persons appointed under sub-section (1) or sub-section (3) shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code 45 of 1860. (5) The Commissioner may, at any stage, direct transfer of a proceeding under section 27 or section 28 or section 31 or section 32 or section 33 or section 72 in respect of any dealer from the prescribed authority to another of the same or higher rank appointed under sub-section (1) and where such direction is given by the Commissioner the authority to whom the proceeding is transferred shall proceed to dispose it of as if it had been initiated by the said authority, irrespective of the local limits of its jurisdiction; such transfer shall not render necessary the re-issue of any notice already issued before the transfer and the authority to whom the proceeding is transferred may, in its discretion, continue it from the stage at which it was left by the authority from whom it was transferred. (6) For smooth functioning of the office, it shall be lawful for the Deputy Commissioner or the Assistant Commissioner in-charge of a circle to allot work and proceedings amongst the officers posted in the circle, as the case may be, and it may include transfer of a proceeding from one officer to another posted in the same office and exercising concurrent jurisdiction. ----- (7) The Commissioner may, from time to time, issue such orders, instructions and directions as he may deem fit, to the authorities subordinate to him, for carrying out the purposes of this Act, and such authorities shall observe and follow such orders, instructions and directions of the Commissioner: Provided that no such orders, instructions and directions shall be issued– (i) so as to require any authority to pass a particular order or to dispose of a particular case in a particular manner; or (ii) so as to interfere with the discretion of the Appellate authorities in a particular case: Provided further that if the Commissioner is of the opinion that it is necessary in the public interest so to do, he may cause such orders, instructions and directions to be published and circulated for general information. **11. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall lie** against any servant of the Government or any officer or authority appointed under section 10 or section 86 of this Act for anything which is in good faith done or intended to be done in pursuance or rules made thereunder. **12. Power to issue summons and examine on oath.—(1) The Tribunal constituted under section 9, or** the Commissioner or any officer or authority appointed under section 10 or section 86 shall, for carrying out the purposes of this Act, have all the powers of a Civil Court under the Code of Civil Procedure, 1908 (5 of 1908) and in particular in respect of the following matters, namely:— (a) to summon and enforce attendance of any person, including any officer of a banking company, and examine him on oath or affirmation; (b) to compel the production of documents or accounts and to impound and retain them; (c) to issue commissions for the examination of witness. (2) Every proceeding under this Act before the Tribunal, shall be deemed to be a judicial proceeding within the meaning of section 193 and section 228 of the Indian Penal Code, 1860 (45 of 1860). CHAPTER IV RATE OF TAX AND POINT OF LEVY **13. Point or points in series of sales at which sales tax shall be levied.—(1)(a) Subject to the** provisions of sections 16 and 17, tax on sale of goods (other than goods specified in Schedule IV) shall be levied at each point in a series of sales in the State of Bihar by a dealer liable to pay tax under this Act. (b) Where the tax is levied at each point of sale, the tax payable by a dealer at any point shall be the amount arrived at after deducting, the input tax credit specified under section 16 or section 17, from the tax computed at that point of sale. (2) (a) The tax on sales, in respect of goods specified in Schedule IV, shall be levied at the first point of their sale in the State of Bihar by a dealer and subsequent sales of the same goods in the State of Bihar shall not be levied to tax, if the dealer making the subsequent sale produces before the prescribed authority the original copy of the cash memo, or invoice or bill issued to him and files a true and complete declaration in the form and in the manner prescribed. (b) The declaration referred to in clause (a) shall be issued by the selling dealer to the purchasing dealer not later than the 30th day of September of the year following the year to which such sales relate. (3) If upon information, the prescribed authority has reasons to believe that the selling dealer has, without reasonable cause, failed to issue to the purchasing dealer the declaration referred to in sub-section (2), he shall, after giving the selling dealer a reasonable opportunity of being heard, direct that the selling dealer shall pay, by way of penalty, a sum of rupees five thousand per month for every month of default or the amount of tax involved, whichever is less. **14. Rate of tax.—(1) Tax shall be payable on the sale price of—** (a) the goods specified in the Schedule II, at the rate of one per cent.; (b) the goods specified in the Schedule III, at the rate of four per cent.; ----- (c) the goods specified in the Schedule IV, at the rate not exceeding fifty per cent. but not less than twenty per cent., as the State Government may, subject to such conditions and restrictions, by notification, specify; (d) any other goods, not specified in the Schedules I, II, III and IV, at the rate of twelve and a-half per cent. (2) The State Government may, by notification, alter any Schedule to this Act. **15. Compounding of tax liability in certain cases.—(1) Notwithstanding anything to the contrary** contained in the Act, the State Government may, by notification and subject to such conditions and restrictions as may be prescribed, permit any class of registered dealers, whose gross turnover does not exceed the limit specified in the notification to pay, in lieu of the tax payable by him, an amount calculated at such rate, not exceeding four per cent. of his taxable turnover, as may be specified in the notification: Provided that no such permission shall be granted to a manufacturer or a person who imports any goods from any place outside the State of Bihar for the purpose of his business: Provided further that the amount so specified shall be in addition to any tax that may be payable by the dealer under section 4. (2) The dealers to whom the provisions of sub-section (1) apply shall— (a) not charge any tax on the sale of goods specified in Schedule I; (b) not charge tax in excess of the rate specified in the notification issued under sub-section (1); and (c) not be entitled to issue tax invoices in respect of sales made by them. (3) If the Assessing Authority has reasons to believe that the dealer was not eligible to pay tax at a rate specified under sub-section (1), the Assessing Authority shall, without prejudice to any action which is or may be taken under section 81, impose a penalty equivalent to three times of the amount of tax arrived at after applying the rate, specified under section 14, to the gross turnover of the dealer after deducting the value of sales under section 6: Provided that no order under this sub-section shall be passed without giving the dealer a reasonable opportunity of being heard. **16. Input tax credit.—(1) Subject to the provisions of this Act, an input tax credit as provided in this** section shall be claimed by a registered dealer, subject to such conditions and restrictions as may be prescribed, on sales of goods in the following circumstances, namely:— (a) when a registered dealer purchases any input within the State of Bihar from another registered dealer after paying him the tax as specified under section 14, he shall claim credit of the input tax in the manner prescribed, if the goods are sold within the State or in the course of inter-State trade and commerce; (b) when a registered dealer— (i) purchases any input within the State from another registered dealer after paying him the tax under section 14, or (ii) purchases any input and pays tax on such purchase under section 4 of the Act, and consumes such goods in the manufacture of any goods mentioned in clause (a), (b) and (d) of section 14, he shall claim credit of the said input tax in the manner prescribed, if the goods so manufactured are sold within the State of Bihar or in the course of inter-State trade and commerce; (c) when a registered dealer purchases any capital goods within the State from another registered dealer after paying him the tax as specified under section 14, and uses such goods in the manufacture of any goods mentioned in clauses (a), (b) and (d) of section 14 and sells the manufactured goods within the State of Bihar or in the course of inter-State trade or commerce, or otherwise, he shall claim and be allowed, in such manner as may be prescribed, credit of the amount of input tax; ----- (d) when a registered dealer holds in stock, on the 1st day of April, 2005, such goods as have been purchased by him on or after the 1st day of April, 2004 and which have suffered the incidence of tax under the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94 and— (i) he sells such goods within the State of Bihar or in the course of inter-State trade and commerce, or (ii) he consumes such goods in the manufacture of any goods mentioned in clauses (a), (b) and (d) of section 14 and the goods so manufactured are sold within the State of Bihar or in the course of inter-State trade and commerce, he shall claim credit of the input tax in the manner prescribed; (e) when a registered dealer purchases any input within the State of Bihar from another such dealer after paying him the tax as specified under section 14 at a rate higher than four per cent. and transfers such goods or goods manufactured from such goods to another dealer outside the State of Bihar, he shall be allowed credit of such tax in excess of four per cent. in the manner as may be prescribed: Provided that if the claim for input tax credit under clause (a) or clause (b) or clause (c) or clause (d) or clause (e) for any month exceeds the output tax for the same month, such excess shall be carried forward for adjustment against the output tax of subsequent months, not being a month later than two years after the close of the year during which such excess had arisen and the amount of input tax remaining unadjusted after two years after the close of the year during which such excess had arisen shall be refunded to the dealer subject to the provisions of sections 68, 69 and 71 of this Act: Provided further that input tax credit in respect of capital goods shall be allowed in the manner and over such period, not exceeding thirty-six months from the date of their acquisition, as may be prescribed: Provided also that no credit of input tax shall be allowed in respect of capital assets purchased or acquired before the commencement of this Act. (2) Notwithstanding anything contained in sub-section (1), where a registered dealer purchases any input in the circumstances mentioned in clause (a) or clause (b) or clause (c) or clause (d) of the said sub-section and,— (a) he despatches such goods or the goods manufactured by consuming such goods, to a commission agent registered under this Act or transfers such goods to its branch or head office within the State of Bihar for sale, as the case may be; or (b) he supplies such goods in the course of execution of a works contract to another registered dealer to whom he has let out a sub-contract, for use in the execution thereof, the input tax credit on the sale or supply, as the case may be, of such goods shall be claimed by the registered dealer selling the goods on commission or using the goods supplied in the execution of sub-contract, as the case may be, in accordance with the provisions of sub-section (1), in such manner as may be prescribed. (3) No input tax credit under sub-section (1) shall be claimed or be allowed to a registered dealer– (a) in respect of goods specified in Schedule IV or such other goods as may be prescribed; or (b) in respect of inputs purchased by him from another registered dealer or manufactured by him and the right wherein to use is transferred to another dealer; or (c) in respect of inputs purchased from a registered dealer permitted to pay tax under the provisions of section 15; or (d) in respect of inputs consumed for the manufacture of goods specified in Schedule I; or (e) in respect of goods used for self consumption or as gift. (4) In case the inputs or goods are used partially for the purpose specified in sub- section (3), the claim for input tax credit shall stand reduced to the extent they are so used. ----- (5) (a) No dealer shall claim an input tax credit in respect of inputs purchased unless he is in possession of an original copy of the tax invoice, signed and issued by the selling registered dealer, containing the prescribed particulars of sale. (b) If the original tax invoice is lost, input tax credit shall be allowed only on the basis of a duplicate copy of the original tax invoice in the form and manner prescribed. **17. Exports to be zero-rated.—(1) In the case of a sale in the course of export under section 5 of the** Central Sales Tax Act, 1956 (74 of 1956); or sale of any input made to any dealer in a special economic zone outside the customs territory of India; or sale (including sale outside India and Domestic Tariff Area) by an export oriented unit, there shall be no tax payable on the turnover of such sale and the person exporting the goods or selling them shall be entitled, in the manner prescribed, to a credit of input tax paid— (a) on the purchase of the goods sold in the course of export (excluding sale to Domestic Tariff Area) or purchase of goods sold to any dealer in the special economic zone or sale (including sale outside India and Domestic Tariff Area) by an export oriented unit, or (b) on the purchase of inputs and capital assets which have been used for the manufacture of goods sold in the course of export (excluding sale to Domestic Tariff Area) or to any dealer in the special economic zone: Provided that the input tax credit on account of capital assets shall be allowed only to the extent and in the manner prescribed. (2) The organisations specified in the Schedule V to this Act shall be entitled to claim a refund of tax paid on goods purchased in the State of Bihar, subject to such restrictions and conditions as may be prescribed and such organisation shall be entitled to a refund of the same only on an application made to the prescribed authority within such time and in such manner as may be prescribed. **18. Rate of tax on packing materials and containers.—Notwithstanding anything contained in** section 14, where any goods packed in any container or packing material are sold or purchased, the container or packing material in which such goods are so packed shall be deemed to have been sold or purchased along with such goods and the tax under sections 3, 4 and 5 shall be levied on the sale or purchase of such container or packing material (whether such packing materials or containers are separately charged for or not) at the rate of tax applicable to the sale or the purchase, as the case may be, of such goods: Provided that where the price of the goods is less than the container or packing material in which they are packed, the rate of tax specified in respect of such containers under sub-section (1) of section 14 shall apply. CHAPTER V REGISTRATION **19. Registration.—(1) No person liable to pay tax under section 3 or section 4, as the case may be, of** this Act shall sell or purchase goods unless he has obtained and is in possession of a valid certificate of registration: Provided that any dealer not liable to pay tax under this Act may also apply for grant of a certificate of registration. (2) Every person, referred to in sub-section (1), shall apply for the grant of certificate of registration to the prescribed authority in the prescribed manner and the prescribed authority, shall, after verifying that the application has been duly filled in, grant certificate of registration in the manner as may be prescribed: Provided that dealers registered under the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94, shall be deemed to be dealers registered under this Act and such dealers shall be granted, a certificate of registration within such time and in the manner as may be prescribed and such dealers may sell or purchase goods till such time as the certificate of registration is granted to them: Provided further that a dealer, who exclusively sells or purchases, goods mentioned in Schedule I, shall not be liable for registration. ----- (3) Every dealer registered under sub-section (1) of section 7 of the Central Sales Tax Act, 1956 (74 of 1956), shall apply for and obtain a certificate of registration, notwithstanding whether such dealer is not liable to pay tax under this Act. (4) Where the prescribed authority, at any time after the grant of the certificate of registration, is satisfied upon an inquiry, that the particulars mentioned in the application are incorrect or the applicant has suppressed or misrepresented certain material facts, he shall, after giving the applicant an opportunity of being heard, and after recording reasons therefor, cancel the certificate of registration granted to him. **20. Amendment and cancellation of certificate of registration.—(1) The prescribed authority may,** after considering such information as may be furnished by the dealer under section 23 or as may be otherwise received by the said authority, amend the certificate of registration of the dealer in respect of whom the information has been furnished or received. (2) When— (a) any registered dealer discontinues or entirely transfers his business to other persons; or (b) the liability of a registered dealer to pay tax under this Act has ceased, the dealer shall, forthwith, surrender his certificate of registration in the manner prescribed to the prescribed authority and the said authority shall cancel the certificate of registration in the manner prescribed: Provided that, in a case covered by clause (a), the certificate of registration shall be deemed to be inoperative with effect from the date of discontinuance or transfer of the business and, in a case covered by clause (b), with effect from the date on which the dealer's liability to pay tax has ceased. **21. Security.—Where it appears necessary to the prescribed authority to do so for the proper realisation** of the tax payable under this Act, he may, by an order in writing and for reasons to be recorded therein, direct a dealer to furnish such security and in such manner as may be prescribed. **22. Declared manager.—(1) Every dealer, who is liable to pay tax under this Act, and who is a Hindu** undivided family, a firm, company or corporation or a society or club or association or who is engaged in business as a guardian or a trustee or otherwise on behalf of another person, shall furnish to the prescribed authority in the prescribed manner a declaration stating the name and prescribed particulars of the person or persons who shall be deemed to be the manager or managers of such dealer's business for the purposes of this Act. (2) Every dealer shall specifically authorise his manager or officer or any other person to receive any form of declaration, make any statement, furnish any return, statement, accounts, produce documents or other evidence and any statement made, return or statement furnished, accounts, registers or documents produced or evidence given by the manager or any person authorised by him or by the dealer in this behalf, in the course of any proceeding under this Act, shall be binding on the dealer. **23. Furnishing of information by dealers.—If any person or dealer liable to pay tax under this Act—** (a) transfers or otherwise disposes of his business or any part thereof, whether by way of sale or otherwise, or (b) acquires any business or part of any business, whether by way of purchase or otherwise, or (c) effects any other change in the ownership or constitution of the business, or (d) discontinues his business, or shifts his place of business, or (e) changes the name, style or nature of his business or effects any change in the class or description of goods dealt in by him, or (f) starts a new business or joins another business either singly or jointly with other person or persons, or (g) effects any change in the particulars furnished in an application under section 19 or declaration furnished under section 22, or (h) applies for or has an application made against him for insolvency or liquidation under any law for the time being in force, or ----- (i) makes a reference or has a reference made under the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986), he shall, within seven days of the occurring of any of the events aforesaid, inform the prescribed authority accordingly, and, if any such dealer dies without doing so, his executor, administrator, successor-in-interest or legal representative, as the case may be, shall, within fifteen days of the dealer's death, inform the said authority accordingly. CHAPTER VI RETURNS, ASSESSMENT, RE-ASSESSMENT AND PAYMENT OF TAX **24. Returns, payment of tax, interest and penalty.—(1) Every person, being—** (a) a dealer, who is not registered under this Act, by a notice served in the manner prescribed by the prescribed authority; (b) a registered dealer (other than a dealer permitted under section 15 to pay tax at a fixed rate in lieu of the tax payable by him), shall furnish a true and complete return in respect of all his transactions relating to sales, purchases, receipts and despatches of goods and any other transactions prescribed specifically for each month, on or before the end of the next following month to the prescribed authority in such form and in such manner as may be prescribed. (2) Without prejudice to the provisions contained in sub-section (1), every person, being— (a) a dealer, who is not registered under this Act, by a notice served in the manner prescribed by the prescribed authority; (b) a registered dealer (other than a dealer permitted under section 15 to pay tax at a fixed rate in lieu of the tax payable by him), shall furnish a true and complete statement in respect of all his transactions relating to sales and purchases of goods and any such details as may be prescribed for each completed quarter on or before the end of the month following the end of the quarter to the prescribed authority in such form and in such manner as may be prescribed. (3) Every registered dealer shall furnish to the prescribed authority, on or before the due date, a true and complete return in respect of every financial year in the form and manner prescribed. _Explanation.—In this sub-section, “due date” means—_ (a) where the dealer is a company within the meaning of the Companies Act, 1956 (1 of 1956), the 30th day of November of the year following the year to which such return relates; (b) where the dealer is a person, other than a company,— (i) in a case where the accounts of the dealer are required under this Act or any other law to be audited or where the report of an accountant is required to be furnished under section 54, the 31st day of October of the year following the year to which such return relates; (ii) in any other case, the 31st day of July of the year following the year to which such return relates. (4) Every dealer who has been permitted to pay tax under section 15 shall file a quarterly abstract statement for each completed quarter on or before the end of the month following the end of the quarter to the prescribed authority in such form and in such manner as may be prescribed. (5) If the due date prescribed for the filing of quarterly statement or monthly return or quarterly abstract statement or annual return happens to be a holiday, the next date on which the office opens shall be deemed to be the due date. (6) Notwithstanding anything contained in sub-section (1) or sub-section (2), the prescribed authority may, for specific reasons to be recorded in writing, extend the date of filing such return or quarterly statement, as the case may be, subject to the condition that such an extension may be allowed only once and for a period not exceeding thirty days from the due date; but the Commissioner may allow extension beyond thirty days for reasons to be recorded in writing subject to the condition that such an extension may be allowed only once and that also for a period not exceeding three months. ----- (7) If a dealer, having furnished a monthly return under sub-section (1) or the quarterly statement under sub-section (2), discovers any omission or wrong statement therein, he may furnish a revised return or statement, as the case may be, in the form and manner prescribed to the prescribed authority at any time before the due date within the meaning of sub-section (3): Provided that no such return or statement shall be taken into consideration if, upon information or otherwise and for reasons to be recorded in writing, the prescribed authority is satisfied that the return or statement originally furnished was deliberately false or that it was furnished with intent to defraud the State Government of its revenue. (8) If a dealer fails to furnish the return within the time specified under sub-section (1) or the quarterly statement under sub-section (2) or the quarterly abstract statement under sub-section (4), the prescribed authority shall, after giving such a dealer an opportunity of being heard in the manner prescribed, impose a penalty at the rate of twenty-five rupees for every day of such failure. (9) (a) Every dealer liable to furnish the return under sub-section (1) shall also deposit the tax payable, according to the return on or before the fifteenth day of the following month in such manner as may be prescribed and shall enclose the proof of payment in the form and manner prescribed along with the return. (b) Every dealer permitted to pay tax under section 15 shall also deposit the tax, arrived at after applying the rate specified in the notification issued under section 15 to his quarterly turnover, on or before the fifteenth day of the month following the quarter to which it relates and shall enclose the proof of payment in the form and manner prescribed along with the statement required to be furnished under sub-section (4). (c) Subject to the provisions of sub-section (10), if any registered dealer submits a revised return under sub-section (7) and if the amount of tax due from such dealer according to the revised return is higher than the amount which was due according to the original return, such revised return shall be accompanied by a receipt showing the payment of extra amount of tax in the manner provided in clause (a). (10) If a dealer, required to furnish the return under sub-section (1) or statement under sub-section (4), fails to pay the amount of tax payable according to the provisions of sub-section (9), such dealer shall be liable to pay interest— (a) in respect of tax payable under sub-section (9), by him in accordance with the return or the quarterly abstract statement or revised return, as the case may be; or (b) in respect of the tax payable for the period for which he has failed to furnish returns under sub-section (1) or quarterly abstract statement under sub-section (4), at the rate of one and a-half per cent. per month of the amount due from the date the tax so payable had become due to the date of its payment. _Explanation.—For the purposes of this sub-section—_ (i) where the period of default in payment of tax covers a period less than a month, the interest payable on such tax in respect of such period shall be computed proportionately; (ii) “month” shall mean thirty days. (11) Any interest levied or penalty imposed under this section shall be without prejudice to any action, which is or may be taken under section 81. (12) A rebate at the rate of half per cent. of the amount of tax admitted to be due in the return furnished under sub-section (1), subject to a maximum of fifty thousand rupees in a year, shall be allowed to a registered dealer who has furnished the return within the due dates specified under this section and has paid such amount in full on or before the date specified for payment of tax under this section. **25. Scrutiny of returns.—(1) The prescribed authority shall, within the time and in the manner** prescribed, scrutinize every return filed under sub-sections (1) and (3) of section 24 for the purpose of ascertaining that— (a) all calculations contained therein are arithmetically accurate; (b) the output tax, the input tax, the tax payable and interest payable, if any, have been computed correctly and properly; (c) the rates of tax have been applied correctly; and ----- (d) evidence, as prescribed, has been furnished with regard to payment of tax and interest payable, if any. (2) If, upon scrutiny under sub-section (1), the prescribed authority discovers any error, he shall serve a notice in the prescribed form on the concerned dealer directing him to— (a) pay, within thirty days, the extra amount of tax along with the interest, if any, payable and furnish the challan evidencing such payment; or (b) explain, within thirty days, that the return or returns filed by him do not suffer from any error and all requirements specified in clauses (a) to (d) of sub-section (1) have been complied with. (3) (a) The prescribed authority shall, in a case falling under clause (b) of sub-section (2) and after giving the dealer a reasonable opportunity to adduce necessary evidence, pass such order in the matter as it may deem fit. (b) If, pursuant to an order under clause (a), any tax or interest is found to be payable by a dealer, a notice in the form and manner prescribed, shall be served upon the dealer requiring him to pay the tax and interest within the time as may be prescribed. (c) Any tax or interest payable under clause (b) shall be deemed to be an arrear of tax within the meaning of section 39. **26. Self-Assessment of tax.—(1) Subject to the provisions of section 25, the tax due in respect of a** financial year from every registered dealer, who has furnished the return and statement mentioned in section 24, shall be deemed to have been assessed. (2) Notwithstanding anything contained in sub-section (1), the Commissioner may, in the interest of revenue, select any registered dealer for detailed audit of his business, on the basis of a selection model as may be prepared for such purpose, incorporating therein such criteria as may be deemed fit by the Commissioner. (3) The audit of the business of a dealer selected under sub-section (2) shall be conducted, within a period of twenty-four months from the due date within the meaning of sub-section (3) of section 24, in such manner as may be prescribed. **27. Assessment of dealer not filing return.—(1) If a registered dealer fails to furnish before the due** date specified under sub-section (3) of section 24— (a) the returns specified under sub-section (1) or sub-section (3) of section 24; or (b) the quarterly abstract statement under sub-section (4) of section 24; or (c) the statement under sub-section (2) of section 24, the prescribed authority shall, after giving the dealer a reasonable opportunity of being heard, assess to the best of its judgment, the amount of tax due from the dealer and interest, if any— (2) Any assessment made or interest levied under this section shall be without prejudice to any action, which is, or may be, taken under section 81. **28. Assessment of tax of dealers evading registration.—(1) If upon information which has come into** his possession, the prescribed authority is satisfied that reasonable grounds exist to believe that any dealer has been liable to pay tax under this Act in respect of any period, and has nevertheless wilfully failed to apply for grant of certificate of registration, or, having so applied, failed to furnish any particulars or information required for the purposes of section 19, the prescribed authority shall, after giving the dealer a reasonable opportunity of being heard, assess, to the best of its judgment, the amount of tax due, if any, from the dealer in respect of such period and all subsequent periods; and the prescribed authority may, direct that the dealer shall pay, by way of penalty, in addition to the amount of tax so assessed, a sum of one hundred rupees for every day of the period during which the dealer failed to apply for registration or failed to furnish any particulars or information required for the purposes of section 19 or an amount equal to the amount of tax assessed, whichever is higher: Provided that no proceeding for such assessment shall be initiated except before the expiry of two years from the expiry of the period to which it relates: ----- Provided further that a proceeding initiated under this sub-section shall be completed within a period of four years from the date of initiation. (2) Any assessment made, interest levied or penalty imposed under this section shall be without prejudice to any action which is, or may be, taken under section 81. **29. Assessment of tax on disputed question.—Notwithstanding anything contained in any other** provision of this Act, where the assessment involves a decision on a point which is concluded against any of the authorities specified in sub-section (1) of section 10 by a judgment of the Tribunal and an appeal has been filed under section 79, then unless otherwise directed by the High Court, the prescribed authority may complete the assessment as if the point was not so decided against such authority, but shall stay the recovery of such of the dues including tax, penalty, interest or amount forfeited, if any, in so far as they relate to such point, until the decision by the High Court and after such decision, may modify the assessment order, if found necessary, after giving the dealer a reasonable opportunity of being heard. **30. Assessment of tax of non-resident dealer doing business temporarily by way of fair, mela, etc.** — (1) Notwithstanding anything contained in section 19, or section 26 and subject to such rules as may be prescribed, it shall be open to the prescribed authority or any other officer authorised by the Commissioner in this behalf to make provisional or final assessment of turnover of sale or purchase of goods, as the case may be, effected by any dealer residing outside the State of Bihar and carrying on business temporarily by way of fair, mela or by way of any other similar mode in the State of Bihar. (2) If a dealer referred to in sub-section (1) claims that the sales affected by him are not of goods imported by him, the onus to prove such claim shall lie on the claimant. **31. Assessment or re-assessment of tax of escaped turnover.—(1) If the prescribed authority is** satisfied, either on the basis of audit conducted under sub-section (3) of section 26 or otherwise, that reasonable grounds exist to believe that, in respect of any assessment under this Act or under the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94, during any period, any sale or purchases of goods liable to tax under this Act or the said Act, for any reason, has been underassessed or has escaped assessment, or has been assessed to tax at a lower rate, or any deduction therefrom has been wrongly made, or an input tax credit has incorrectly been claimed, the prescribed authority shall, in such manner as may be prescribed and after serving on the dealer a notice in the form and in the manner prescribed, proceed to assess or re-assess, as the case may be, the tax payable by such dealer within four years from the expiry of the year during which the original order of assessment or re-assessment was passed, in a case where the dealer has concealed, omitted or failed to disclose full and correct particulars of such sale or purchase or input tax credit, and the provisions of this Act shall, so far as may be, apply accordingly as if the notice under this sub-section was a notice under section 27: Provided that the amount of tax shall be assessed or re-assessed after allowing such deductions as were allowable during the said period and at the rates at which it would have been assessed had the turnover not escaped assessment. (2)(a) The prescribed authority shall, in a case where the dealer has concealed, omitted or failed to disclose full and correct particulars of such sale or purchase or input tax credit, direct that the dealer shall, besides the amount of interest payable under sub-section (10) of section 24, pay by way of penalty, a sum equal to three times the amount of tax which is or may be assessed on the turnover of sale or purchase which escaped assessment. (b) The penalty imposed under clause (a) shall be in addition to the amount of tax, which is or may be assessed on the turnover of sale or purchase which escaped assessment. (3) Any assessment or re-assessment made and any penalty imposed under this section shall be without prejudice to any action, which is or may be taken under section 81. **32. Escaped turnover detected before or at the time of assessment of tax.—(1) If the prescribed** authority is satisfied that any registered dealer— (a) has concealed any sales or purchases or any particulars thereof, with a view to reduce the amount of tax payable by him under this Act; or ----- (b) has furnished incorrect statement of his turnover or incorrect particulars of his sales or purchases in the return furnished under sub-section (1) of section 24 or quarterly statement under sub-section (2) of section 24 or quarterly abstract statement under sub-section (3) of section 24; or (c) has claimed input tax credit in excess of the amount of input tax credit to which he is entitled under this Act, the prescribed authority shall, after giving such a dealer an opportunity of being heard in the prescribed manner, by an order in writing, direct that he shall, besides the amount of interest payable under sub-section (10) of section 24 and in addition to any tax which may be determined to be payable by him under the Act, pay by way of penalty, a sum equal to three times the amount of tax on the concealed turnover or on concealed or incorrect particulars or excess input tax credit claimed. (2) The penalty under sub-section (1) may be imposed before completion of assessment, and for determining the amount of penalty, the prescribed authority may quantify the amount of tax provisionally in the prescribed manner. (3) Any penalty imposed under sub-section (1) shall be without prejudice to any action, which is or may be taken under section 81. **33. Assessment of tax based on audit objections.—Where an objection has been made by the** Comptroller and Auditor-General of India in respect of an assessment or re-assessment made or scrutiny of any return filed under this Act, the prescribed authority shall proceed to re-assess the dealer with respect to whose assessment or re-assessment or scrutiny, as the case may be, the objection has been made in the manner prescribed: Provided that no order under this section shall be passed without giving the dealer an opportunity of being heard. **34. Assessment of tax proceedings, etc., not to be invalid on certain grounds.—No assessment and** demand on account of any tax, interest or penalty shall be invalid or affected by reason only of any mistake in the name, residence, place of business or status of any person liable to pay the tax, interest of penalty or by reason only of clerical error or other defect of form, if the provisions contained in this Act and the rules made thereunder have, in substance, been complied with. **35. Taxable turnover.—(1) For the purposes of this Act, the taxable turnover of a dealer shall be that** part of his gross turnover which remains after deducting therefrom— (a) the aggregate value of the transactions specified in section 6; (b) sale price on account of sales exempted under section 7; (c) in the case of works contract, the amount remaining after deducting from the gross value of the contract the amount on account of the following, namely:— (i) labour charges for execution of the works contract, (ii) amount paid to sub-contractor on account of labour and services, (iii) charges for planning, designing and architects fees, (iv) charges for obtaining on hire, the machineries and tools used in the execution of the works contract, (v) cost of consumables such as water, electricity, fuels, etc., used in execution of the works contract, the property in which is not transferred in the course of execution of a works contract, (vi) cost of establishment of the contractor to the extent, it is relatable to supply of labour and services, (vii) other similar expenses relatable to supply of labour and services, (viii) profit earned by the contractor to the extent it is relatable to the supply of labour and services, and (ix) goods or transaction exempted under section 6 or section 7; ----- (d) value of goods transferred otherwise than by way of sale; (e) the value of goods sold but returned to the dealer within a period of six months from the date of the original sales and in respect of which the selling dealer has issued to the purchasing dealer a credit note specified in section 53; (f) sale price at the subsequent stages of sale of such goods as are specified in Schedule IV as being subject to tax at the first point of their sale in the State of Bihar, if necessary evidence as required by sub-section (2) of section 13 are filed along with the return filed by the dealer under sub-section (3) of section 24. (2) Where a dealer claims that he is not liable to pay tax on any part of his gross turnover in respect of any goods by reason of transfer of such goods by him to any other dealer or to his agent or to his principal, as the case may be, for sale, the burden of proving such claim shall be on the dealer and for this purpose, along with other evidences as may be prescribed, he shall furnish before the prescribed authority a declaration in a form and in the manner prescribed. **36. Tax payable by a dealer.—The tax payable by a dealer shall be calculated according to the** following formula, namely:– T = A–B Where— T means the tax payable by the dealer, A means the output tax under this Act, and B means the total amount of input tax credit allowable to the dealer under section 16 or section 17. **37. Time limit for completion of proceeding of assessment of tax.—Except for a proceeding under** sub-section (2) of section 26, section 28, sub-section (1) of section 31 and section 33, no proceeding for assessment of tax payable by a dealer under this Act in respect of any period shall be initiated and completed except before the expiry of two years from the expiry of such period: Provided that a proceeding for re-assessment in pursuance of or as a result of an order on appeal, revision or review shall be initiated and completed before the expiry of one year from the expiry of the year during which such order was communicated to the assessing authority: Provided further that the Commissioner may, on being satisfied that it is necessary so to do and for reasons to be recorded in writing, extend in a case or class of cases, the said period of two years to such further period not exceeding two years. **38. Exclusion of time in assessment tax proceedings.—In computing the period of limitation** prescribed for assessment or re-assessment, as the case may be, under section 27 or section 28 or section 29 or section 30 or section 31 or section 32 or section 33, the time during which any assessment or re-assessment proceedings remained stayed under the order of any competent court shall be excluded. **39. Payment and recovery of tax.—(1) The tax payable under this Act shall be paid in the manner** hereinafter provided. (2) The amount of— (i) tax estimated in advance under sub-section (7) of section 3, or (ii) tax due according to the returns filed by the dealer where full payment of such amount has not been made, or (iii) tax assessed or re-assessed under section 26 or section 27 or section 28 or section 29 or section 30 or section 31 or section 32 or section 33 or in pursuance of or as a result of an order on appeal, revision or review, less the sum, if any, already paid by the dealer, or (iv) interest chargeable or penalty imposed, if any, under any of the provisions of this Act, shall be paid by the dealer or the person concerned into a Government Treasury or a bank authorised in this behalf by the State Government, or in such other manner as may be prescribed and by such date as may be ----- specified in a notice issued by the prescribed authority for this purpose and the date to be specified shall, ordinarily, not be less than thirty days from the date of service of such notice: Provided that the authority may, in respect of any particular dealer or a person, and, for reasons to be recorded in writing, extend the date of such payment, or allow such dealer to pay tax or interest due and the penalty, if any, by instalments in the manner prescribed: Provided further that where the prescribed authority considers it expedient in the interest of revenue, it may, for reasons to be recorded in writing, require any dealer, or person, to make such payments forthwith. (3) If a dealer or a person fails to make payment of any amount of tax by the period specified in the notice issued under sub-section (2) or fails to make payment of tax by the date extended or has defaulted in making payment of instalments under the first proviso of the said sub-section, the dealer shall, for such failure or default, pay, in addition to the amount of tax, an amount by way of simple interest calculated at the rate of one and a-half per cent. for each calendar month or part thereof on the amount of such tax. (4) Where, in course of any proceeding, the prescribed authority finds that any dealer has— (i) wrongly claimed either the whole or part of his turnover as not taxable and, has consequently, paid lesser amount of tax than payable by him; or (ii) wrongly declared his turnover or any particulars thereof and thereby has reduced the amount of tax payable under this Act; or (iii) wrongly claimed input tax credit in excess of what he is entitled to under this Act, the dealer shall pay, in addition to the amount of tax assessed under any proceeding as aforesaid, simple interest at the rate of one and a half per cent. for each calendar month or part thereof on the difference of the amount previously admitted and tax finally assessed from the date, the tax would have been payable had the dealer not committed any of the acts mentioned in clause (i) or clause (ii) or clause (iii): Provided that where the recovery of tax or any part thereof assessed under any proceeding under this Act is stayed as a result of an order on appeal or by any competent court, the amount of such interest shall be recoverable after the final order is passed and such order is confirmed from the date the tax first became due. (5) If a dealer or a person has failed, without reasonable cause, to make payment of any amount of tax by the date specified in the notice issued under sub-section (2) or forthwith as required by the second proviso thereto, or in like manner has failed to make payment of tax and interest by the date extended under the first proviso of the said sub-section or has defaulted in payment of instalments or has not paid the amount of interest due, the prescribed authority, after giving the dealer a reasonable opportunity of being heard, may direct that the dealer shall pay, in the prescribed manner, by way of penalty for such failure, an amount which shall be five per cent. per month of the amount payable following the expiry of such date for each subsequent month and part thereof. (6) Subject to the provisions of sub-sections (2), (4) and (5), any amount of tax, interest together with penalty, if any, which remains unpaid after the date specified in the notice issued under sub-section (2), or penalty imposed under sub-section (5) and remaining unpaid shall, without prejudice to any other mode of recovery, be recoverable as if it were an arrear of land revenue: Provided that where an appeal in respect of such amount has been entertained under section 72, the appellate authority may, subject to such rules as may be made by the State Government under this Act, stay recovery of such amount or portion thereof for so long as the appeal remains pending or for such shorter period as the said authority may consider to be adequate. **40. Advance recovery of tax on sales and supplies to Governments and other persons.—(1) Subject** to the provisions of section 6, any person responsible for paying sale price or any amount purporting to be the full or part payment of sale price in respect of sales or supplies of taxable goods exceeding rupees two lakh fifty thousands during a year made to the State Government or the Central Government or a company, corporation, Board, authority, undertaking or any other body owned, financed or controlled either wholly ----- or partly by the State Government or the Central Government, shall, at the time of payment, subject to such conditions and restrictions as may be prescribed, deduct an amount at the rate as may be specified by the State Government, by a notification, on account of tax on the amount of such payment: Provided that the rate or rates to be specified by the State Government shall not be more than the rate of tax applicable to the goods sold or supplied. (2) Notwithstanding any law or contract to the contrary, the person making such deduction shall be lawfully competent to make such deduction. (3) The payment of the amount deducted under sub-section (1) into the Government Treasury in the prescribed manner, shall be the liability of the person making such deduction. (4) The payment of the amount deducted under sub-section (1) into the Government Treasury by the person making the deduction shall be deemed to be a payment by or on behalf of the seller or supplier concerned. (5) If any person contravenes any or all of the provisions of sub-sections (1), (3) and (4), he shall be liable to pay, by way of penalty, a sum not exceeding twice the amount of tax deductible under sub-section (1): Provided that such penalty shall not be imposed unless the person contravening the provisions is given an opportunity of being heard by the prescribed authority. (6) The provisions of sections 39 and 47 for recovery of any amount of tax due from a dealer shall, _mutatis mutandis, apply for recovery of any amount of tax deducted or any penalty imposed but not_ deposited under this section. _Explanation.—For the purposes of this section, the “person” in this section shall include all officers or_ authorities who are competent or authorised to make payment of the sale-price in respect of sales to the State Government or the Central Government or to a company, corporation, Board, authority, undertaking or any other body owned, financed or controlled wholly or partly by the State Government or the Central Government. (7) The provisions of sub-section (5) of section 41 shall, mutatis mutandis, apply, so far as it relates, to issuance of certificate to person from whose bills deduction has been made and for filing of quarterly statements by the person making the deductions. **41. Advance recovery of tax from works contractors.—(1) Subject to the provisions of section 6,** every person, responsible for making any payment in discharge of any liability on account of valuable consideration payable in respect of transfer of property in goods (whether as goods or in some other form) vested in the execution of a works contract shall be lawfully competent to deduct an amount at the rate or rates, not exceeding four per cent. to be specified by the State Government, in a notification published in the Official Gazette, purporting to be a part or full amount of tax payable on the sale of such goods from every bill or invoice raised by the works contractor as payable by the person and no such payment or discharge of any such bill or invoice raised by a works contractor shall be made without deduction as aforesaid. _Explanation.—For the purposes of this section, the “person” in this section shall include all officers_ and authorities of the Central or the State Government or of a company, corporation, Board, authority, co-operative societies, undertaking or any other body constituted or formed under any Act and of any firm or association of persons and organisation: Provided that, the State Government may prescribe the conditions subject to which no such deductions shall be made. (2) No such payment or discharge of any bill or invoice raised in respect of transfer of property in goods (whether as goods or in some other form) by a works contractor shall be made without the deduction referred to in sub-section (1): ----- Provided that no deduction under sub-section (1) shall be made where the payment is made as advance prior to the commencement of the execution of such works contract until it forms part of the sale price payable for transfer of property in goods (whether as goods or in some other form): Provided further that no deduction under sub-section (1) shall be made from the payment or any part thereof, where— (a) the payment or any part thereof does not relate to any transfer of property in goods (whether as goods or in some other form) involved in the execution of works contract; (b) the dealer produces a certificate issued by the Deputy Commissioner, Commercial Taxes or the Assistant Commissioner, Commercial Taxes or the Commercial Taxes Officer, in-charge of the concerned Circle to the effect that the payment or any part thereof relates to such transfer of property in goods (whether as goods or in some other form) on which he has no further liability to pay tax in terms of the provisions of section 15 of the Central Sales Tax Act, 1956 (74 of 1956); (c) the dealer produces a certificate issued by the Deputy Commissioner, Commercial Taxes or the Assistant Commissioner, Commercial Taxes or the Commercial Taxes Officer, in charge of the concerned Circle to the effect that the payment or any part thereof relates to such transfer of property in goods (whether as goods or in some other form) on which he has no liability to pay tax in terms of the provisions of section 6. (3) The amount deducted under sub-section (1) shall be adjusted against the amount of tax finally assessed or determined as being payable by the concerned works contractor and any amount deducted in excess of the tax so assessed or determined shall be refunded in accordance with the provisions of this Act. (4) The deduction referred to in sub-section (1) shall be made in the manner prescribed. (5) The person making the deduction shall issue a certificate, in the form and manner prescribed, containing such particulars as may be required to be mentioned therein, to the works contractor or person from whose bill or invoice such deduction has been made and such certificate shall be deemed to be a valid discharge of liability in terms of provisions of sub-section (9) of section 24 to the extent of amount of deduction made under sub-section (1). (6) If any person contravenes any or all of the provisions of sub-sections (1), (2) and (5), the prescribed authority shall, after giving a reasonable opportunity of being heard, by order in writing direct that such person shall pay by way of penalty, a sum not exceeding twice the amount of tax deductible or deducted and not deposited in the Government Treasury. (7) The provisions of sections 39 and 47 shall, mutatis mutandis, apply for recovery of any amount of tax deducted but not deposited into the Government Treasury or any penalty imposed under this section. **42. Production of tax clearance certificate.—Notwithstanding anything contained in any law for the** time being in force, no person shall be awarded by— (i) the State Government; or (ii) the Central Government; or (iii) a company, corporation, board, authority, undertaking or any other body which is owned, financed or controlled either wholly or partly by the State Government or the Central Government, any contract involving sale or supply of goods and no person shall be granted any licence to carry on any trade or commerce unless he produces to the State Government or the Central Government or the company, corporation, board, authority, undertaking or any other body which is owned, financed or controlled either wholly or partly by the State Government or the Central Government, a tax clearance certificate, granted by the prescribed authority in the form and manner prescribed, to the effect that the prescribed authority has no objection to the awarding of such contract or the granting of such licence to the person concerned: Provided that no such certificate shall be granted to any person who is not a registered dealer under this Act or, being a registered dealer, has made a default in the payment of any tax, penalty or interest due under this Act: Provided further that if a person not liable to tax under this Act applies for the grant of certificate under this section and in whose case the value of the contract or, as the case may be, the anticipated turnover in ----- the immediately succeeding twelve months exceeds the limit specified in sub-section (2) of section 3, he shall be granted such certificate subject to the condition that he shall furnish, to the prescribed authority, an undertaking to the effect that he shall apply for grant of certificate of registration in the manner and within the period prescribed and in the event of failure to do so the concerned Government or person or authority shall terminate the contract awarded to the person. **43. Restriction on collection of tax by dealers.—(1) Without prejudice to the provisions of sections** 40 and 41, no person, who is not a registered dealer, shall collect from any person any amount, by whatever name or description it may be called, towards or purporting to be tax on sale of goods. (2) No registered dealer shall collect from any person any such amount exceeding the amount arrived at after applying the rate of tax specified under section 14 to the sale price of the goods sold. (3) If any person or a registered dealer contravenes the provisions of sub-section (1) or sub-section (2), the prescribed authority shall, after giving an opportunity of being heard in the manner prescribed, by an order in writing direct that such person or registered dealer shall pay by way of penalty a sum equal to twice the amount collected in contravention of the provisions of sub-sections (1) and (2). **44. Forfeiture of tax collected in violation of this Act.—(1) Any amount collected, by any person in** contravention of the provisions of sub-section (1) or sub-section (2) of section 43 or any amount collected by any person by way of tax, by whatever name called, or in any other manner not payable under any provision of this Act, shall be liable to forfeiture to the State Government. (2) If the prescribed authority, in the course of any proceeding under this Act or otherwise, has reason to believe that any amount is liable for forfeiture under sub-section (1), it shall serve, on the person who has collected such amount, a notice in the prescribed form requiring him to show cause why the said amount should not be forfeited to the State Government and on receipt of the reply, if any, and after making such inquiries as may be deemed fit, he shall make an order of forfeiture if the amount is found so liable. (3) Where an order of forfeiture under sub-section (2) has been made, the person making the unauthorised collection shall forthwith pay the amount so forfeited to the State Government, if it has not already been paid and on his failure to do so, such amount shall be recoverable from him as if it were a tax due from him. (4) Where an order for forfeiture is passed, the Commissioner shall publish or cause to be published, in the prescribed manner, a notice for information of the persons from whom the amount so forfeited had been collected giving such details as may be prescribed. (5) On the publication of the notice under sub-section (4) a refund of such amount or part thereof may be claimed from the State Government within one year from the date of publication of the said notice by the person from whom it was unauthorisedly realised by way of tax and for this purpose the person claiming the refund shall make an application in the prescribed form. (6) On receipt of an application under sub-section (5), the Commissioner shall hold such enquiry as he deems fit and if he is satisfied that the claim is valid and admissible and that the amount so claimed as refund was actually paid to the State Government and no refund or remission in respect of that amount was granted, the Commissioner shall refund such amount or any part thereof to the person concerned. (7) Notwithstanding anything contained in this Act or in any other law for the time being in force, where any amount collected by any person is forfeited to the State Government under this section, such forfeiture shall, if the amount forfeited has been paid to the State Government, discharge him of the liability to refund the amount to the person from whom it was so collected. **45. Rounding off of tax liability.—Any tax, interest or penalty payable under this Act shall be rounded** off to the nearest ten rupees and shall be paid accordingly. **46. Recovery of tax as arreears of land revenue.—(1) All authorities appointed under section 10** shall, for the purpose of recovery of tax, interest and penalty under this Act, have the same powers as are vested in the certificate officer under the Bihar and Orissa Public Demand Recovery Act, 1914 (Bihar and Orissa Act 4 of 1914). (2) Any proceeding under sub-section (1) before any authority appointed under section 10 shall be deemed to be a proceeding for recovery of the public demand under the Bihar and Orissa Public Demands ----- Recovery Act, 1914 (Bihar and Orissa Act 4 of 1914) and all provisions of the said Act for recovery, attachment, sale, arrest shall mutatis mutandis apply. **47. Special mode of recovery of tax and other liabilities under this Act.—(1) Notwithstanding** anything contained in section 39 or any law or contract to the contrary, the prescribed authority may, at any time or from time to time, by notice in writing (a copy of which shall be forwarded to the dealer at his last address known to the said authority) direct— (a) any person from whom any money is due or may become due to a dealer who has failed to comply with a notice of demand served under section 39; or (b) any person who holds or may subsequently hold any money for or on account of such dealer, to pay into Government treasury, in the manner specified in the notice issued under this sub-section, either forthwith or upon the money becoming due or being held, or within the time specified in the notice (not being before the money becomes due or it is held) so much of the money as is sufficient to pay the amount of tax due from the dealer, together with interest and penalty, if any, under this Act or the whole of the money when it is equal to or less than that amount. (2) The authority issuing a notice under sub-section (1) may, at any time or from time to time, amend or revoke any such notice or extend the time for making any payment in pursuance of the notice. (3) Any person making any payment in compliance with a notice issued under sub-section (1) shall be deemed to have made the payment under the authority of the dealer and the receipt from the Government Treasury shall constitute a good and sufficient discharge of the liability of such person to the dealer to the extent of the amount specified in the receipt. (4) Any person discharging any liability to the dealer after service on him of the notice issued under sub-section (1) shall be personally liable to the State Government to the extent of the liability discharged or to the extent of the liability of the dealer for tax, interest and penalty, whichever is less. (5) Where a person on whom a notice is served under sub-section (1) proves to the satisfaction of the authority which issued the notice that the money demanded or any part thereof was not due to the dealer or that he did not hold any money for or on account of the dealer, at the time the notice was served on him, nor is the money demanded or any part thereof, likely to become due to the dealer or be held for or on account of the dealer, nothing contained in this section shall be deemed to require such person to pay into the Government Treasury any such money or part thereof, as the case may be. (6) If any person contravenes any of the provisions of sub-sections (1) and (4) of this section, the prescribed authority shall after giving an opportunity of being heard by an order in writing direct that such person shall pay by way of penalty a sum not exceeding twice the amount payable under sub-section (1). (7) Any amount of money which a person is directed to pay under subsection (1) or for which he is personally liable to the State Government under sub-section (4), shall, if it remains unpaid, be recoverable as an arrear of land revenue. (8) No action shall be taken under this section in respect of any amount of tax, interest and penalty, if any, the date of payment of which has been extended or the realisation of which has been stayed under this Act during the period of such extension or stay. (9) The provisions of this section shall be without prejudice to any action that may be taken for recovery of the arrears of tax, interest and penalty, if any, due from the dealer or person. **48. Liability of surety.—The liability of a surety under this Act shall be co-extensive, to the extent of** the amount of security, with that of the defaulting dealer and all modes of recovery enforceable against the dealer shall be enforceable against the surety by the prescribed authority. **49. Transfers to defraud revenue void.—Where, during the pendency of any proceeding relating to** assessment, re-assessment or recovery of any tax, interest or penalty payable under this Act or the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94, any person or dealer creates a charge on or parts with the possession, by any mode of transfer whatsoever including sale, mortgage, gift or exchange, of any of his assets in favour of any person with the intention of defrauding the revenue, then, notwithstanding anything to the contrary contained in any Act or contract, such charge or ----- transfer shall be void as against any claim inrespect of any tax or any other sum payable by the dealer as a result of the completion of such proceeding or otherwise. **50. Period of limitation for recovery of tax.—Notwithstanding anything contained in any other law** for the time being in force, no proceeding, for the purposes of sub-section (6) of section 39 or sub-section (7) of section 47, shall be initiated under this Act except before the expiry of twelve years from due date within the meaning of sub-section (3) of section 24: Provided that the period of limitation for the registered dealer availing of the tax deferment under section 23A of the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94, shall be reckoned from the last date of repayment of the deferred amount of tax: Provided further that when an appeal or application for review has been filed, the period of limitation as aforesaid shall run from the date of order passed on such appeal, application for review or from the date of order passed in pursuance of or as a result of such order, whichever is later. **51. Tax to be first charge on property.—Notwithstanding anything to the contrary contained in any** law for the time being in force, any amount of tax and interest and penalty, if any, payable by a dealer or any other person under this Act shall be a first charge on the property of the dealer or such person. CHAPTER VII BOOKS OF ACCOUNT AND FURNISHING OF INFORMATION **52. Maintenance of accounts.—(1) Every registered dealer (other than a dealer permitted to pay tax** under section 15), shall— (a) keep in such manner as may be prescribed a true and complete account in respect of all goods produced, raised, manufactured, processed, bought, sold or delivered or transferred to or by him; (b) maintain in such manner as may be prescribed correct and complete accounts of despatches and arrivals of goods as also of stock of goods manufactured or transferred. (2) Such dealers or persons, as may be prescribed, and such other dealers to whom sub-section (1) applies, shall, at the end of each financial year, draw up, in the manner as may be prescribed,– (a) a manufacturing, trading and profit and loss account and a balance sheet, in the case of a manufacturer; and (b) such accounts as may be prescribed, in any other case: Provided that no accounts referred to in sub-section (1) shall be considered, true and complete unless such accounts enable the prescribed authority to compute the tax payable and the entitlement of input tax credit under the provisions of this Act: Provided further that the accounts referred to in sub-section (1) shall not be considered true and complete unless they give a true and fair view— (i) of the state of affairs of the dealer or the person as at the end of the financial year, in the case of the balance sheet; and (ii) of the working results of the dealer or the person for the financial year, in the case of the anufacturing, trading and profit and loss account. (3) Every dealer or a person required to keep accounts by sub-section (1) shall— (a) issue a challan in respect of all transfers of goods from his place of business otherwise than as a result of sale, in such form as may be prescribed; and (b) preserve all invoices for a period of not less than six years from the end of the year to which they relate, or for a period of two years after the completion of assessment, appeal or revision for the year, whichever is later. (4) Every dealer permitted to pay tax under section 15 shall— (a) maintain accounts showing his purchases and sales during the year and such other accounts, as may be prescribed; and ----- (b) draw up, at the end of each financial year, in the manner as may be prescribed, a trading and profit and loss account. **53. Issue of tax invoice and debit and credit notes.—(1) A registered dealer, making a sale liable to** tax under this Act, to another registered dealer shall, provide the purchaser at the time of sale, a tax invoice containing the particulars specified in sub-section (2) and retain a copy thereof: Provided that a tax invoice shall not be issued— (a) by a dealer permitted to pay tax under section 15; or (b) for the sale in the course of inter-State trade or commerce or export by a dealer, and in such cases a retail invoice shall be issued: Provided further that not more than one tax invoice shall be issued for each such sale: Provided also that if an invoice has been issued under the provisions of the Central Excise Act, 1944 (1 of 1944), it shall be deemed to be a tax invoice if it contains the particulars specified in sub-section (2). (2) The tax invoice issued under sub-section (1) shall contain the following particulars on the original as well as copies thereof, namely:— (a) the words “Tax Invoice” in a prominent place; (b) the name, address and tax payer identification number of the selling registered dealer; (c) the name, address and tax payer identification number of the purchaser; (d) an individual pre-printed serialised number and the date on which the tax invoice is issued; (e) description, quantity, volume and value of goods sold and the amount of tax charged thereon indicated separately; (f) the signature of the selling dealer or his manager, agent or servant duly authorised by him; and (g) the name and address of the printer and first and last serial number of tax invoices printed and supplied by him to the dealer. (3) A tax invoice in respect of a sale shall be issued in duplicate and the original of which shall be issued to the purchaser (or the person taking the delivery, as the case may be) and the duplicate shall be retained by the selling dealer. (4) Except when a tax invoice is issued under sub-section (1), if a dealer sells any goods exceeding such amount in value as may be prescribed, in any one transaction to any person, he shall issue to the purchaser a retail invoice containing the particulars specified in sub-section (5) and retain a copy thereof. (5) The retail invoice issued under sub-section (4) shall contain the following particulars on the original as well as copies thereof, namely:— (a) the words “Retail Invoice” or “Cash Memorandum” or “Bill” in a prominent place; (b) the name, address and tax payer identification number of the selling dealer, if registered; (c) in case the sale is in the course of inter-State trade or commerce, the name, registration number and address of the purchasing dealer and type of any form, under the Central Sales Tax Act, 1956 (74 of 1956), if any, against which the sale has been made; (d) an individual pre-printed serialised number and the date on which the retail invoice is issued; (e) description, quantity, volume and value of goods sold and amount of tax charged thereon indicated separately; and (f) the signature of the selling dealer or his servant, manager or agent, duly authorised by him. (6) The retail invoice shall be issued in duplicate, and the original of which shall be issued to the purchaser and the duplicate copy of which shall be retained by the selling dealer. (7) The Commissioner may, by notification, specify the manner and form in which the particulars on a tax invoice or retail invoice are to be recorded. ----- (8) If a purchaser claims to have lost the original tax invoice, the selling dealer may, subject to such conditions and restrictions as may be prescribed, provide a copy of such tax invoice clearly marked as a copy of the original tax invoice. (9) Where a tax invoice has been issued in respect of a sale and— (a) the amount shown as tax in that tax invoice exceeds the tax payable in respect of the sale, the dealer shall provide the purchaser with a credit note, containing such particulars as may be prescribed; or (b) the tax payable in respect of the sale exceeds the amount shown as tax on the tax invoice, the dealer shall provide the purchaser with a debit note, containing such particulars as may be prescribed. (10) Every dealer referred to in sub-section (1) shall preserve books of account including tax invoices and retail invoices until the expiry of six years after the end of the year to which they relate or for such other period as may be prescribed. (11) If a registered dealer contravenes the provisions of this section, the prescribed authority shall, after giving the dealer an opportunity of being heard, direct him to pay by way of penalty a sum equivalent to twice the amount of tax payable for each sale in respect of which such contravention has taken place. **54. Accounts to be audited in certain cases.—(1) Every dealer whose gross turnover exceeds forty** lakh rupees shall, for the purposes of this Act, get his annual accounts audited by an accountant by— (i) the 30th day of November of the following year, in the case of a company formed and registered under the Companies Act, 1956 (1 of 1956); and (ii) the 31st day of October of the following year, in any other case. (2) Every dealer referred to in sub-section (1) shall obtain, by the date specified in that sub-section, a report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed and true copy of such report shall be furnished, on or before the due date, by such dealer to the prescribed authority. _Explanation 1.—In this sub-section, “due date” means—_ (a) where the dealer is a company within the meaning of the Companies Act, 1956 (1 of 1956), the 30th day of November of the year following the year to which such return relates; (b) where the dealer is a person, other than a company,— (i) in a case where the accounts of the dealer are required under this Act or any other law to be audited or where the report of an accountant is required to be furnished under this section, the 31st day of October of the year following the year to which such return relates; (ii) in any other case, the 31st day of July of the year following the year to which such return relates. _Explanation 2.—For the purposes of this section, “accountant” means a Chartered Accountant within_ the meaning of the Chartered Accountants Act, 1949 (38 of 1949) and includes a person who, by virtue of the provisions of sub-section (2) of section 226 of the Companies Act, 1956 (1 of 1956), is entitled to be appointed to act as an auditor of companies registered in any State. (3) If the accounts of a registered dealer are not required to be audited in terms of the provisions of sub-section (1), such dealer shall furnish, to the prescribed authority, the accounts and statements mentioned in sub-section (2) of section 52 on or before the 31st day of July of the year following the year to which such accounts or statements relate. (4) If a dealer contravenes the provisions of sub-section (2) or sub-section (3), the prescribed authority shall, after giving the dealer a reasonable opportunity of being heard, impose on him, in addition to any tax payable, a sum by way of penalty equivalent to two per cent. of the tax payable by him under section 36 for every month, or part thereof, of such default. **55. Furnishing of information by Government departments, banks, financial institutions clearing** **and forwarding agents and owners of warehouses, godowns and others.—(a) Every bank, including** any branch of a bank, or any clearing house in the State or any financial institution, department of the ----- Government, corporation, institution, organisations or companies, boards, authorities, undertakings or any bodies owned, financed or controlled wholly or partly by the State Government or the Central Government; and (b) every clearing, forwarding or booking agent or dalal as defined in clause (a) of the Explanation to section 59 or a person engaged in the business of transporting goods, shall, if so required by any authority appointed under section 10, furnish any such particulars as may be required by such authority in respect of the transactions relating to sales or purchases of goods by such dealers or any dealer with or through such banks or clearing house or any financial institution, department of the Government, corporations, institutions, organisations or companies, boards, authorities, undertakings or any other body owned, financed or controlled wholly or partly by the State Government or the Central Government. CHAPTER VIII INSPECTIONS, SEARCH AND SEIZURE **56. Production of books of account, inspection, search and seizure.—(1) Subject to such rules as** may be made by the State Government under this Act, any authority appointed under sub-section (1) of section 10 may, either before or after assessment, require any dealer to produce before it or him any accounts, registers or documents or to furnish any information relating to the details of his purchases and sales and the stock of goods produced, raised, processed, manufactured, bought, sold or delivered by such dealer, and the dealer shall comply with such requirement. (2) If reasonable grounds exist to suspect that— (a) a dealer, with an intention to reduce his tax liability under the Act, has suppressed any financial transaction, element of value addition implicit in the transaction or the stock of goods produced, raised, processed, manufactured, bought, sold or delivered by such dealer or has claimed input tax credit in excess of his entitlement; or (b) any clearing or forwarding agent or a person engaged in the business of transporting goods or owner of a warehouse or a godown is keeping or has kept his accounts in such a manner as is likely to cause evasion of tax payable under this Act, the prescribed authority shall, after making such further inquiries as may be deemed fit and after obtaining such authorisation in the manner prescribed, proceed to inspect all the places of business of the dealer or the clearing or forwarding agent or the person engaged in the business of transporting goods or the owner of warehouse or godown: Provided that if the prescribed authority is satisfied that delay in obtaining such authorisation may be prejudicial to the interest of revenue, he may, for reasons to be recorded in writing, proceed to inspect all the places of business of the dealer or the clearing or forwarding agent or the person engaged in the business of transporting goods or the owner of warehouse or godown without obtaining such authorisation which may be granted subsequently. (3) The prescribed authority shall have the powers to enter into and search the premises, including the place of business, of such dealer or the person and, for reasons to be recorded in writing, seize such accounts, registers or documents of the dealer or the person as may be necessary, in the manner prescribed, and shall retain the same for so long as may be necessary in connection with any proceeding under this Act or for a prosecution under any law: Provided that if the dealer or person whose accounts, registers or documents have been seized, applies for a copy of the same, he shall be supplied with a photo-copy of the same on payment of appropriate cost into a Government Treasury or a bank authorised in this behalf by the State Government: Provided further that such authority or inspector may take or cause to be taken such copies of, or extracts from, the accounts, registers or documents, as such authority or inspector may consider necessary. (4) (a) Any authority referred to in sub-sections (1) and (2) shall have the powers to seize any goods not properly accounted for in the books, accounts, registers and other documents of the dealer or the dalal as defined in clause (a) of the Explanation to section 59, or the owner of the warehouse, or the clearing, ----- booking or forwarding agent, or the person engaged in the business of transporting goods in the manner prescribed. (b) The authority referred to in clause (a) shall, in a case where the dealer or the person in-charge of goods as mentioned in clause (a) fails to produce any evidence or fails to satisfy the said authority regarding the proper accounting of goods, impose a penalty, after allowing an opportunity of hearing in the prescribed manner to the dealer or such person, which shall be equal to three times the amount of tax calculated on the value of such goods and the goods shall be released as soon as the penalty is paid. (c) If the dealer or the person in-charge of the goods mentioned in clause (a) requests for time for production of necessary documents in support of proper accounting, the authority referred to in clause (a) shall release the goods on the condition that the dealer or such person deposits a security equivalent to three times the amount of tax calculated on the value of the goods, either in the form of cash, to be deposited in the Government Treasury, or in the form of bank guarantee acceptable to the authority. (d) If the goods seized under clause (a) are not claimed by any person, the authority referred to in the said clause shall arrange for the safe custody of goods. (e) In case the penalty imposed under clause (b) is not paid or the goods remain unclaimed for a period of thirty days or more from the date of seizure, the goods so seized shall be sold by auction in the prescribed manner and the sale proceeds shall be appropriated towards the amount of penalty imposed under clause (b); and the balance of the sale-proceeds, if any, shall be deposited in the Government Treasury and shall be refunded to the lawful claimant in the prescribed manner: Provided that in the case of goods of a perishable nature, the prescribed authority may decide to sell the goods by auction before a period of thirty days. (f) In case where the goods have been released on the deposit of a security as mentioned in clause (c) and evidence regarding proper accounting of goods, to the satisfaction of the authority referred to in clause (a) is not produced within thirty days from the date on which the security is deposited, the amount of security shall stand forfeited to the State Government: Provided that in case evidence or document to the satisfaction of the authority mentioned in clause (a) regarding the proper accounting of goods is produced within the said period of thirty days, the security shall be released in the prescribed manner. (5) (a) The power conferred under sub-sections (3) and (4) shall include the power to break open the lock of any box or receptacle or door of any other place or premises where any accounts, registers or other documents or goods may be kept or are reasonably suspected to be kept. (b) The powers conferred under sub-sections (3) and (4) shall also include the power to seal any box or receptacle, godown or building where any accounts, registers or other documents or goods may be kept or are reasonably suspected to be kept. (6) An authority appointed under section 10 may require the assistance of any person, public servant or police officer in making a search and a seizure or for safe custody of goods seized under this section, and such person, public servant or police officer shall render necessary assistance in the matter. (7) Where any books of account, other documents, money or goods are found in the possession or control of any person in the course of any search under sub-section (2) or sub-section (3), it shall be presumed, unless it is proved to the contrary, that such books of account, documents, money or goods belong to such person. _Explanation.—For the purposes of this section the expression “proper accounting”, shall—_ (i) in the case of a dealer, mean that the goods have either not been entered in the books of account or they have been classified in a manner which is likely to lead to evasion of tax payable under this Act; or (ii) in the case of the owner of a warehouse, or a clearing, booking or forwarding agent, or a person engaged in the business of transporting goods, mean properly entered in such registers and accounts as may be prescribed under sub-section (2) of section 59. ----- (8) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974), relating to searches and seizure shall apply, so far as may be, to searches and seizure under this section. **57. Cross checking or verification of transactions.—(1) With a view to preventing evasion of tax** payable under this Act and ensuring proper compliance with the provisions of this Act, the prescribed authority may, from time to time, collect information regarding sales and purchases effected by any class of dealers and cause any of such transactions of sale and purchase to be cross-checked. (2) For this purpose, the prescribed authority may, from time to time and by issuing a notice, in the manner and form prescribed, require any class of dealers to furnish, before such authority and by such date as may be specified in the said notice, such information, details and particulars as may be specified in the notice, regarding the transactions of sales and purchases effected by the dealers during the period mentioned in the said notice. (3) The prescribed authority shall cause any of such transactions to be cross-checked with reference to the books of account of the purchasing and selling dealers and for this purpose, the prescribed authority shall send an intimation required for the purpose of cross-checking, stating therein the details of the transactions proposed to be cross-checked and the time and date on which any officer or person duly authorised to cross check the transaction shall visit the place where the books of account are ordinarily kept by the dealer. **58. Survey.—(1) With a view to identifying dealers who are liable to pay tax under this Act, but have** remained unregistered, the prescribed authority, shall, from time to time, cause a survey of unregistered dealers to be done for this purpose. (2) For the purposes of the survey, the prescribed authority may, by notice in the prescribed form, require any dealer or class of dealers to furnish the names, addresses and other particulars, in the manner specified, of the persons and dealers who have purchased or sold any goods from, or, to, such dealer or class of dealers during a given period. (3) For the purposes of survey, the prescribed authority may call for, by notice in the prescribed form, details and particulars regarding the services provided by public utilities, financial institutions including banking companies, clearing and forwarding agents, owners of warehouses, dalals and persons engaged in the business of transporting goods which such authority is of the opinion, shall be relevant and useful for the purposes of this Act. **59. Control on clearing, forwarding or booking agent and any person transporting goods.—(1)** Every clearing, forwarding or booking agent or dalal or a person transporting goods, who during course of his business handles the document of title to the goods or transports goods or takes delivery of goods for or on behalf of a dealer and having his place of business in the State of Bihar, shall furnish true and complete particulars and information relating to his place of business to the prescribed authority, within such time and in such manner as may be prescribed. (2) Every agent or person referred to in sub-section (1), shall maintain true and complete accounts, registers and documents, as may be prescribed, in respect of the goods handled by him and the documents of title relating thereto and shall produce the said accounts, registers and documents before the prescribed authority as and when required by him. (3) If any agent or person referred to in sub-section (1) contravenes the provisions of sub-section (1) or sub-section (2) in a manner which is likely to lead to evasion of any tax payable under this Act, the prescribed authority may, without prejudice to any action under section 81, on charge of abetment, after giving such agent or person an opportunity of being heard, direct him to pay by way of penalty an amount which shall be equal to three times the amount of tax calculated on the value of goods in respect of which complete particulars have not been furnished or incorrect particulars or information have been furnished. _Explanation.—For the purposes of this sub-section—_ (a) “dalal” shall include a person who renders his services for booking of, or taking delivery of, consignment of goods at a railway station, booking agency, goods transport company office, or any place of loading or unloading of goods or contrives, makes and concludes bargains and contracts for or on behalf of any dealer for a fee, reward, commission, remuneration or other valuable consideration or otherwise; ----- (b) “person transporting goods” shall, besides the owner, include the manager, agent, driver or employee of the owner, or person in-charge of a place of loading or unloading of goods other than a rail-head, or a post office, or of a goods carrier carrying such goods, or a person who accepts consignments of such goods for despatch to other places or gives delivery of any consignment of such goods to the consignee. CHAPTER IX CHECK-POSTS AND RESTRICTIONS ON MOVEMENT **60. Establishment of check-posts.—(1) The State Government may, by notification, set up and erect,** in such manner as may be prescribed, check-posts and barriers at any place in the State with a view to preventing evasion of tax payable under this Act. (2) Every person transporting goods, other than those specified in Schedule I and subject to such conditions as may be prescribed, shall, at any check-post or barrier, referred to in sub-section (1) and before crossing such check-post or barrier, file before such authority or officer as may be authorised by the State Government in this behalf, a correct and complete declaration in such form and manner as may be prescribed. (3) Any authority or officer who may be authorised by the State Government in this behalf, may, for the purpose of verifying, whether any goods are being transported in contravention of the provisions of sub-section (2) and in such manner as may be prescribed, intercept, detain and search any goods carrier; and the person, transporting goods or for the time being in-charge of goods, shall render all possible assistance to such authority or officer in carrying out the search. (4) (a) The authority or any officer referred to in sub-section (3) may seize any goods along with the vehicle or carrier, which, he suspects, are being transported in contravention of the provisions of sub-section (2) together with any container or material for the packing of such goods: Provided that a list of all the goods seized under this sub-section shall be prepared by such officer and be signed by the officer, the dealer or the person in-charge of goods and not less than two witnesses and a copy of the seizure list shall be made over to the dealer or the person in charge of the goods, as the case may be. (b) The provisions of section 56 shall, _mutatis mutandis, apply in matters relating to such seizure,_ penalty, security, release and confiscation of goods. **61. Restriction on movement of goods.—(1) A person transporting goods—** (a) from any place outside the State of Bihar to any place inside the State of Bihar, or (b) from any place inside the State of Bihar to any place outside the State of Bihar, or (c) from any place within the State of Bihar to any other such place, shall carry a declaration in such form as may be prescribed supported by a cash memo, retail invoice, bill or tax invoice, as the case may be, in case the movement is as a result of sale or a challan in case the movement is otherwise than as a result of sale, in respect of goods which are being transported on a goods carrier, vehicle or a vessel or is otherwise in transit or in transit storage and shall produce such cash memo or bill or tax invoice or challan, as the case may be, along with the aforesaid form of declaration on demand before the prescribed authority: Provided that the Commissioner may exempt, by notification in the Official Gazette, consignments below a particular value or quantity from the requirement of this sub-section in so far as it relates to carrying of a declaration. (2) Any authority or officer who may be authorised by the State Government in this behalf may, for the purpose of verifying whether any goods are being transported in contravention of the provisions of sub-section (1) intercept, detain and search any goods carrier, vehicle or vessel and may also search the warehouse or godown or any other such place of transit storage, where goods are kept in course of transportation and if the said authority is satisfied on such verification and search that transportation of goods is being made in contravention of the provision of sub-section (1), he may seize any such goods together with any container or material for the packing of such goods: ----- Provided that a list of all the goods seized under this sub-section shall be prepared by such officer and be signed by the officer, the dealer or the person in-charge of goods and not less than two witnesses and a copy of the seizure list shall be made over to the dealer or the person in charge of the goods, as the case may be. (3) The provisions of section 56 shall, _mutatis mutandis, apply in matters relating to such seizure,_ penalty, security, release and confiscation of goods. _Explanation.–For the purposes of this section, the power to seize any goods shall also include the power_ to seize the goods carrier on which the goods are being transported. **62. Transportation of goods through State of Bihar.—(1) If any consignment of goods is being** transported by road from a place outside the State of Bihar to another such place and the vehicle carrying the consignment passes through the territory of the State, the driver or any other person in-charge of the vehicle shall obtain transit permission in the prescribed manner from the authority of the first check-post falling en route after entry into the State and shall surrender the same transit permission to the authority of the last check-post before leaving the State and in the event of failure to do so within seventy-two hours of leaving the first check-post falling en route, it shall be deemed that goods so transported have been sold by the owner or the person in-charge of the vehicle within the State of Bihar. (2) In case the driver or person referred to in sub-section (1) fails to comply with the provisions of sub-section (1), he shall be liable to pay penalty at the rate of rupees five hundred for every day of the default or a sum twice the amount of tax calculated on the value of the goods transported in contravention of that sub-section, whichever is higher: Provided that no such penalty shall be levied without giving the person an opportunity of being heard: Provided further that if the person proceeded against, justifies, beyond any doubt, the reasons for any delay exceeding seventy-two hours, the prescribed authority shall, for reasons to be recorded in writing, condone the delay. CHAPTER X LIABILITIES OF REPRESENTATIVE CHARACTER **63. Liability to pay tax in case of transfer of business.—(1) When the ownership of the business of** a dealer liable to pay tax under this Act is entirely transferred, the transferor and the transferee, shall jointly and severally be liable to pay any tax, interest and penalty, if any, payable in respect of such business and remaining unpaid at the time of the transfer and the transferee shall also be liable to pay tax on sales or purchases made by the transferee on and from the date of such transfer and shall forthwith apply for the grant of a registration certificate unless such certificate is already possessed by him. (2) Where a dealer liable to pay tax under this Act transfers the ownership or a part of his business, the transferor shall be liable to pay tax in respect of the stock of goods transferred with that part of the business. **64. Tax payable by deceased dealer shall be paid by his representative.—(1) Where a dealer dies** after assessment but before payment of the tax, interest or penalty payable by him under this Act, his executor, administrator, successor-in-interest or legal representative shall be liable to pay out of the property of the deceased, to the extent to which it is capable of meeting the charge, the amount payable by such dealer. (2) When a dealer dies without having furnished the return under section 24 or after having furnished the return but before assessment, the prescribed authority may proceed to make an assessment and determine the amount payable under this Act by the deceased and for the said purpose he may require the executor, administrator, successor-in interest or legal representative, as the case may be, of the deceased to perform all or any of the obligations, which he might, under the provisions of this Act, have required the deceased to perform and the amount thus determined shall be payable by the executor, administrator, successor-in-interest or legal representative of the deceased to the extent to which the property of the deceased is capable of meeting the charge. **65. Tax-liability of guardian and trustee, etc.—Where the business in respect of which tax is payable** under this Act is carried on by, or is in charge of, any guardian, trustee or agent of a minor or other incapacitated person on behalf of and for the benefit of, such minor or other incapacitated person, the tax ----- shall be assessed upon and recoverable from such guardian, trustee or agent, as the case may be, in the manner and to the same extent as it would be leviable upon and recoverable from any such minor or incapacitated person, if he were of full age and sound mind, and if he were conducting the business himself and all the provisions of this Act shall apply accordingly. **66. Tax-liability of court of wards.—Where the estate or any portion thereof of a dealer owning a** business in respect of which tax is payable under this Act is under the control of the court of wards, the Administrator General, the official trustee, or any receiver or manager, including any person, whatever his designation who in fact manages the business, appointed by, or under the order of a court, the tax shall be assessed upon and recoverable from such court of wards, Administrator-General, official trustee, receiver or manager in like manner and to the same extent as it would be assessable upon and recoverable from the dealer if he were conducting the business himself; and all the provisions of this Act shall apply accordingly. **67. Liability in case of dissolution of firm, etc.—Where a dealer is a Hindu undivided family, firm or** association of persons, and such family, firm or association is partitioned, dissolved or disrupted, as the case may be— (a) the tax, interest and penalty payable under this Act by such family, firm or association of persons for the period up to the date of such partition, dissolution or disruption may be assessed as if no partition, dissolution or disruption had taken place and all the provisions of this Act shall apply accordingly; and (b) every person who was at the time of such partition, dissolution or disruption a member or partner of a Hindu undivided family, firm or association of persons shall, notwithstanding such partition, dissolution or disruption, be liable severally and jointly for the payment of tax, interest including penalty, if any, payable under this Act, by such family, firm or association of persons, whether dues of tax, interest or penalty is for the period prior to or after such partition, dissolution or disruption. CHAPTER XI REFUNDS AND ADJUSTMENTS **68. Refunds.—(1) Subject to the other provisions of this Act and the rules made thereunder, the** prescribed authority shall refund to a person the amount of tax, penalty and interest, if any, paid by such person in excess of the amount due from him in such manner as may be prescribed. (2) Where on account of death, incapacity, insolvency liquidation or other cause a person is unable to claim or receive any refund due to him, his legal representative or the trustee or guardian or receiver, as the case may be, shall be entitled to claim or receive such refund in the manner prescribed: Provided that the prescribed authority shall first apply such excess amount towards the recovery of any amount for any period in respect of which a notice under section 39 has been issued and shall then refund the balance, if any. **69. Provisional refunds.—(1) If a registered dealer files any returns or produces any other evidence** as required by or under this Act, and the return or evidences produced show any amount to be refundable to the dealer, then the dealer may apply in the prescribed form to the prescribed authority for grant of provisional refund. (2) The prescribed authority may require the said dealer to furnish such security as may be prescribed for an amount equal to the amount of refund and on receipt of such security, the prescribed authority shall, subject to rules, grant the dealer a provisional refund of the amount claimed refundable as aforesaid. (3) (a) Subject to other provisions of this Act, the refund under sub-section (1) shall be deemed to be final if the dealer has no liability under the Act as per his annual return filed under section 24 and the report submitted under sub-section (2) of section 54. (b) Upon the said refund being final, the security, if any, furnished under sub-section (2) shall be returned to the said dealer. (c) If any amount in excess of the amount refunded under sub-section (1) is found to be payable by the said dealer in respect of the period for which he had claimed and was allowed such provisional refund, such excess shall be recovered as arrears of tax from the dealer and he shall be liable to pay simple interest on such excess amount at the rate of one and half per cent. per month or part thereof from the date of grant of provisional refund till the date of the payment of such excess amount. ----- **70. Interest on delayed refund.—(1) Where an amount required to be refunded by the prescribed** authority to any person is not refunded to him or the application for refund is not rejected, as the case may be, within ninety days of the amount having become refundable, the prescribed authority shall pay such person simple interest at the rate of six per cent. per annum or part thereof on the said amount from the date immediately following the expiry of the period of ninety days to the date of the refund: Provided that where the amount becomes refundable by virtue of an order of the Tribunal or the High Court or the Supreme Court, the interest under the provisions of this section shall be payable from the date immediately following the expiry of the period of ninety days from the date of receipt of the order of the Tribunal, the High Court or the Supreme Court, by the officer whose order forms the subject matter of the proceedings before the Tribunal, the High Court or the Supreme Court, to the date of refund. (2) If the delay in granting the refund within the period of ninety days aforesaid is attributable to the said person, whether wholly or in part, the period of the delay attributable to him shall be excluded from the period for which interest is payable. (3) Where any question arises as to the period to be excluded for the purposes of calculation of interest under the provisions of this section, such question shall be determined by the Commissioner, whose decision shall be final. **71. Power to withhold refund in certain cases.—Where an order giving rise to a refund is the** subject-matter of an appeal or further proceeding or where any other proceeding under this Act is pending, and the authority competent to grant such refund is of the opinion that the grant of the refund is likely to adversely affect the revenue, such authority (not being the Commissioner) with the previous approval of the Commissioner may withhold the refund till such time as is deemed fit: Provided that the Commissioner may, on application or otherwise, order for release of such refund if he is of the opinion that the situation does not require such action on the part of the prescribed authority. CHAPTER XII APPEAL, REVISION AND REVIEW **72. Appeal to Deputy Commissioner and Joint Commissioner.—(1) Subject to such rules as may** be made by the State Government under this Act, any dealer, objecting to an order of assessment or an order levying interest or penalty passed by the prescribed authority against him, or an order under section 25 or a person, objecting to an order of penalty passed against him or an order under section 47, may appeal to the Joint Commissioner, or, the Deputy Commissioner specially authorised in this behalf. (2) No appeal under sub-section (1) shall be admitted unless the dealer objecting to an order of assessment has paid twenty-five per cent. of the tax assessed or full amount of admitted tax, whichever is higher. (3) Every appeal under this section shall be filed, in such form and the manner, as may be prescribed, within forty-five days of the receipt of the notice of demand but where the appellate authority is satisfied that the appellant had sufficient reason for not preferring the appeal within time, it may condone the delay. (4) The appellate authority while disposing of an appeal against an order, other than an order under section 47, may— (a) (i) confirm, annul, reduce, enhance or otherwise modify such order; or (ii) set aside the order directing the authority below to make fresh order after further enquiry on specific points as directed; and (b) in other cases, pass such order as it may, for reasons to be recorded in writing, deem fit. (5) No order under this section shall be passed without giving reasonable opportunity of hearing to the appellant as also the authority whose order has been appealed against. **73. Appeal to Tribunal.—(1) Subject to such rules as may be made by the State Government, any of** the authorities mentioned in section 10 or any person aggrieved by an order made by the Deputy Commissioner or Joint Commissioner under section 72 or the Commissioner under section 74 or section 77, may, prefer an appeal to the Tribunal. ----- (2) Where an appeal is preferred by a dealer, such appeal shall not be entertained by the Tribunal unless such dealer has deposited in the manner specified by the Tribunal, twenty-five per cent. of the amount in dispute: Provided that the Tribunal may, for reasons to be recorded in writing, waive or reduce the amount required to be deposited under this section. (3) Every application for appeal under this section shall be filed within ninety days of the communication of the order which is sought to be appealed, but where the Tribunal is satisfied that the applicant had sufficient cause for not applying within time, it may condone the delay. (4) No order under this section shall be passed without giving the applicant as also the authority whose order is sought to be appealed or their representative a reasonable opportunity of being heard. (5) On receipt of an appeal under sub-section (1), the Tribunal may, after giving the parties to the appeal, an opportunity of being heard, pass such order thereon as it thinks fit, confirming, modifying or setting aside the order appealed against. (6) The Tribunal shall send the copy of every order made by it to the parties to the appeal and to the concerned authority against whose order the appeal had been preferred. (7) The appeal filed before the Tribunal under sub-section (1) shall be dealt with by it as expeditiously as possible and endeavour shall be made by it to dispose of the appeal finally within six months from the date of receipt of the appeal. **74. Revisionary powers of Commissioner.—The Commissioner may, suo motu, call for and examine** the record of any proceeding recorded by any authority, officer or person subordinate to him under this Act and if he considers that any order passed therein is erroneous in so far as it is prejudicial to the interest of revenue, pass such order as he deems fit after giving the dealer or the person concerned an opportunity of being heard. **75. Additional evidence in appeal or revision.—A dealer shall not be entitled to produce additional** evidence whether oral or documentary in appeal before the appellate authority or in revision before the Commissioner or the Tribunal except where the evidence sought to be adduced is evidence, which the prescribed authority had wrongly refused to admit or which, after exercise of due diligence, was not within his knowledge or could not be produced by him before the prescribed authority or for the production of which adequate time was not given by the prescribed authority and in every such case upon the additional evidence being taken on record reasonable opportunity for challenge or rebuttal shall be given. **76. Review.—Subject to such rules as may be made by the State Government under this Act, any** authority appointed under section 10 or the Tribunal may review any order passed by it, if such review is, in the opinion of the said authority or the Tribunal, as the case may be, necessary on account of a mistake which is apparent from the record: Provided that no such review, if it has the effect of enhancing the tax, interest or penalty or of reducing a refund shall be made unless the said authority or the Tribunal, as the case may be, has given the dealer, or the person concerned a reasonable opportunity of being heard. **77. Determination of disputed questions.—(1) If any question arises, otherwise than in proceedings** before a court, or before the prescribed authority has commenced assessment of a dealer under section 27 or section 28 or section 29 or section 30 or section 31 or section 32 or section 33, whether, for the purposes of this Act, — (a) any person, society, club or association or any firm or any branch or department of any firm, is a dealer, or (b) any particular thing done to any goods amounts to or results in the manufacture of goods, within the meaning of that term, or (c) any transaction is a sale or a purchase, or where it is a sale or a purchase the sale price or the purchase price, as the case may be, thereof, or (d) any particular person or dealer is required to be registered, or (e) in the case of any person or dealer liable to pay tax, any tax is payable by such person or dealer in respect of any particular sale or purchase, or if tax is payable, the rate thereof, or ----- (f) input tax credit can be claimed on any particular transaction of purchase and if it can be claimed, what are the conditions and restrictions subject to which such input tax credit can be claimed, or (g) the order passed under sub-section (2) of section 25 is just and proper, or (h) any other question involving interpretation of any provisions of this Act, the Commissioner shall, subject to such rules as may be made, make an order determining such question. _Explanation.—For the purposes of this sub-section, the prescribed authority shall be deemed to have_ commenced assessment of the dealer under section 27 or section 28 or section 29 or section 30 or section 31 or section 32 or section 33, when the dealer is served with any notice by the prescribed authority under the said sections. (2) The Commissioner may direct that the determination shall not affect the liability of any person under this Act, as respect any sale or purchase affected prior to the determination or such date as he may specify. (3) If any such question arises from any order already passed by any authority or court under this Act or the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94, no such question shall be entertained for determination under this section; but such question may be raised in appeal against such order. **78. Power to transfer proceedings.—(1) The Commissioner may, after giving the parties a reasonable** opportunity of being heard in the matter, by order in writing after recording his reason for so doing, transfer any proceedings or class of proceedings under any provision of this Act, from himself to any other officer and he may likewise transfer any such proceeding, including a proceeding pending with any officer or already transferred under this section, from any officer to any other officer. (2) For the purpose of this section, any proceeding shall be deemed to have commenced only when any authority having appropriate jurisdiction issues notice under the provisions of this Act, rules or notifications and the proceedings shall be deemed to be pending only after the issue of such notice. (3) Where no proceedings are pending before any authority, then any authority having appropriate jurisdiction over a person or dealer, may initiate and complete any proceedings whatsoever. _Explanation.—In this section, the word “proceedings” in relation to any dealer means all proceedings_ under this Act in respect of any year, which may be pending on the date of such order or which may have been completed on or before such date, and also includes all proceedings under this Act which may be commenced after the date of such order in respect of the said year in relation to such dealer. **79. Appeal before High Court.—(1) An appeal shall lie to the High Court from every order passed by** the Tribunal, if the High Court is satisfied that the case involves a substantial question of law. (2) The Commissioner or a dealer aggrieved by any order passed by the Tribunal,— (i) under the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94, on or after the date of commencement of this Act; or (ii) under this Act, may file an appeal to the High Court, and such appeal under this section shall be filed within ninety days from the date of the communication to the dealer or the Commissioner on any question of law arising out of such order. (3) Where the High Court is satisfied that a substantial question of law is involved in any case, it shall formulate the question. (4) The appeal shall be heard only on the question so formulated and the respondents shall, at the hearing of the appeal, be allowed to argue that the case does not involve such question: Provided that nothing in this sub-section shall be deemed to take away or abridge the power of the High Court to hear, for reasons to be recorded, the appeal on any other substantial question of law not formulated by it, if it is satisfied that the case involves such question. ----- (5) (a) The High Court shall decide the substantial question of law so formulated or involved and deliver such judgment thereon containing the grounds on which such decision is founded and may award such costs as it deems fit. (b) The High Court may determine any issue which— (i) has not been determined by the Tribunal, or (ii) has been wrongly determined by the Tribunal, by reason of a decision on such question of law as is referred to in sub-section (1). (6) Save as otherwise provided in this Act, the provisions of the Code of Civil Procedure, 1908 (5 of 1908) relating to appeals to High Court, shall as far as may be, apply in the case of appeals under this section. **80. Case before High Court to be heard by not less than two Judges.—(1) When an appeal has been** filed before the High Court under section 79, it shall be heard by a bench of not less than two Judges of the High Court, and shall be decided in accordance with the opinion of such Judges or of the majority, if any, of such Judges. (2) Where there is no such majority, the Judges shall state the point of law upon which they differ and the case shall then be heard upon that point only by one or more of other Judges of the High Court and such point shall be decided according to the opinion of the majority of Judges who have heard the case including those who first heard it. CHAPTER XIII OFFENCES AND PENALTIES **81. Offences and penalties.—(1) Whoever—** (a) carries on business as a dealer without being registered in wilful contravention of section 19, or (b) fails without sufficient cause to furnish any information required by section 23, or (c) fails, without sufficient cause, when directed so to do under section 59, to keep any accounts or record in accordance with the directions, or (d) fails, without sufficient cause, to furnish any return as required by section 24 by the date and in the manner prescribed, shall, on conviction, be punished with imprisonment, of either description, for a term which shall not be less than three months but which may extend to six months and with fine not exceeding one thousand rupees. (2) Whoever— (a) knowingly keeps false account of the value of the goods bought or sold by him in contravention of sub-section (1) of section 52 or section 53, or (b) wilfully attempts, in any manner whatsoever, to evade any payment of any tax, penalty or interest, shall, on conviction, be punished with imprisonment, of either description, for a term which shall not be less than six months but which may extend to one year and with fine not exceeding two thousand rupees. (3) Whoever— (a) not being a registered dealer under section 19, falsely represents that he is or was a registered dealer at the time when he sells or buys goods; or (b) knowingly furnishes a false return; or (c) knowingly produces before the prescribed authority, false bill, tax invoice, cash-memorandum, voucher, declaration, certificate or other document for any of the purposes of this Act; or (d) issues to any person a certificate or declaration under this Act or the rules framed or notifications issued thereunder, a bill, cash memorandum, tax invoice, voucher or other document which he knows or has reason to believe to be false; or ----- (e) obstructs any officer making inspection or search or seizure under section 56 or section 61 or section 62, shall, on conviction, be punished with imprisonment, of either description, for a term which shall not be less than one year but which may extend to three years and with fine not exceeding three thousand rupees. (4) Whoever aids or abets any person in the commission of any offence specified in sub-section (1) or sub-section (2) or sub-section (3) shall, on conviction, be liable for punishment of the description specified in respect of the offence in the commission of which he has aided or abetted. (5) Notwithstanding anything contained in sub-sections (1) to (4), no person shall be proceeded against under these sub-sections for the commission of the offences referred therein if the total amount of tax, interest or penalties evaded or attempted to be evaded is less than five thousand rupees. (6) Where a dealer is accused of an offence specified in sub-section (1) or sub-section (2) or sub-section (3), the person declared as manager of the business of the dealer under section 22 shall also be deemed to be guilty of such offence, unless he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission thereof. **82. Cognizance of offences.—(1) Save as provided in section 81, the punishments inflicted under the** said section shall be without prejudice to any penalty which may be imposed under the provisions of this Act. (2) No court shall take cognizance of any offence under this Act except with the previous sanction of the Commissioner or any officer specially empowered in this behalf and no court inferior to that of a Magistrate of the first class shall try any such offence. (3) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), all offences punishable under section 81 shall be cognizable and bailable. **83. Investigation of offences.—(1) Subject to such conditions as may be prescribed, the Commissioner** may authorise either generally or in respect of a particular case or class of cases, any officer or person subordinate to him to investigate all or any of the offences punishable under this Act. (2) Every officer so authorised shall, in the conduct of such investigation, exercise the powers conferred by the Code of Criminal Procedure, 1973 (2 of 1974) upon an officer in-charge of a police station for the investigation of a cognizable offence. **84. Offences by companies and others.—(1) Where an offence under this Act has been committed by** a company, every person who at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of business of the company as well as the company shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that, nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section—_ (a) “company” means a company incorporated under the Companies Act, 1956 (1 of 1956), and includes a body corporate, a firm or other association of individuals; (b) “director” in relation to a firm means a partner in the firm. (3) Where an offence under this Act has been committed by a Hindu undivided family, the karta thereof shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render the karta liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence: ----- Provided further that, where an offence under this Act has been committed by a Hindu undivided family and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any adult member of the Hindu undivided family, such member shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and on conviction punished accordingly. **85. Compounding of offences.—(1) The Commissioner may, either before or after the institution of** proceedings under section 81, accept from any person charged with an offence under sub-section (1) or sub-section (2) or sub-section (3) or sub-section (4) of the said section by way of composition of the offence, a sum not exceeding ten thousand rupees and where the offence charged was likely to cause or caused evasion of any amount of tax payable under this Act, a sum not exceeding three times of such amount, whichever is higher. (2) On payment of such sum as may be determined by the Commissioner under sub-section (1), no further proceeding shall be taken against the accused person in respect of the same offence. CHAPTER XIV BUREAU OF INVESTIGATION **86. Bureau of Investigation.—(1) The State Government may, by an order published in the Official** Gazette, constitute a Bureau of Investigation and it shall consist of such personnel and such number of officers and such hierarchy of supervision and control as may be specified by the State Government in the said order: Provided that if authorities appointed under sub-section (1) of section 10 are specified as such they shall, without prejudice to the powers under sub-section (1) of section 10, exercise the powers of an authority under sections 55, 56, 57, 58, 59, 60, 61 and 62 for carrying out the purposes of this Act. (2) (a) The State Government may, by an order published in the Official Gazette, vest an officer of the Bureau of Investigation with the powers of an officer in-charge of a police station under the Code of Criminal Procedure, 1973 (2 of 1974) and with such other powers under different Acts, as it may consider necessary. (b) The Commissioner may, by an order published in the Official Gazette, authorise an officer of the Bureau of Investigation to exercise the powers of an authority appointed under section 10 in respect of such matters as may be specified in the order. (3) The Bureau of Investigation shall function under the control and supervision of the Commissioner, and discharge such duties as may be assigned to it by the Commissioner, including investigation of offences under section 83 of this Act. CHAPTER XV MISCELLANEOUS **87. Appearance before taxing authorities.—Any person, who is required to appear before any** authority appointed under section 10 or before the Tribunal or before an officer of the Bureau of Investigation constituted under section 86 in connection with any proceeding under this Act, may appear before such authority through— (a) a person authorised in the prescribed manner by him in this behalf, being his relative or person in his regular and whole time employment, (b) a sales tax practitioner who possesses the prescribed qualifications; or (c) a legal practitioner, or (d) subject to such conditions as may be prescribed, a chartered accountant, or company secretary, or cost accountant. _Explanation.—For the purposes of this section,—_ (a) “chartered accountant” means a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949 (38 of 1949) and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act; ----- (b) “company secretary” means a company secretary as defined in clause (c) of sub-section (1) of section 2 of the Company Secretaries Act, 1980 (56 of 1980) and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act; (c) “cost accountant” means a cost accountant as defined in clause (b) of sub-section (1) of section 2 of the Cost and Works Accountants Act, 1959 (23 of 1959) and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act; (d) “legal practitioner” means an advocate, vakil or an attorney of any High Court, and includes a pleader in practice. **88. Change of an incumbent of an office.—Whenever, in respect of any proceeding under this Act,** any person or authority appointed under section 10 ceases to exercise jurisdiction and is succeeded by another person who has and exercises jurisdiction, the person so succeeding may continue the proceeding from the stage at which the proceeding was left by his predecessor: Provided that the dealer concerned may demand that before the proceeding is so continued, the previous proceeding or any part thereof be reopened or that before any order is passed against him, he be heard. **89. Bar to certain proceedings.—Save as provided in section 79, no assessment made and no order** passed under this Act or rules made thereunder by any authority appointed under section 10 or by the Bureau of Investigation or by the Tribunal shall be called in question in any court, and save as is provided in section 72 or section 73 or section 74 or section 76, no appeal or application for revision or review shall lie against any such assessment or order. **90. Disclosure of information by public servant.—(1) All particulars contained in any statement** made, return furnished or accounts or documents produced in accordance with this Act, or in any record of evidence given in the course of any proceedings under this Act (other than proceeding before a criminal court), or in any record of any assessment proceeding, or any proceeding relating to the recovery of a demand, prepared for the purposes of this Act, shall, save as provided in sub-section (3), be treated as confidential; and notwithstanding anything contained in the Indian Evidence Act, 1872 (1 of 1872), no court shall save as aforesaid, be entitled to require any servant of the Government to produce before it any such statement, return, account, document or record or any part thereof, or to give evidence before it in respect thereof. (2) If, save as provided in sub-section (3), any servant of the Government discloses any of the particulars referred to in sub-section (1), he shall, on conviction, be punished with imprisonment, which may extend to six months or with fine or with both. (3) Nothing in this section shall apply to the disclosure of any of the particulars, referred to in sub-section (1), made— (a) for the purposes of a prosecution under the Indian Penal Code, 1860 (45 of 1860) in respect of any statement, return, accounts, registers, documents or evidence, or any part thereof; or (b) for the purposes of a prosecution under this Act; or (c) for regulating any inquiry under the Public Servant (Inquiries) Act, 1850 (37 of 1850), into the conduct or behaviour of any authority or Inspector appointed under section 10 or an officer of the Bureau of Investigation constituted under section 86 or into the behaviour of any other officer appointed to conduct such inquiry; or (d) in connection with the trial of a suit in a civil court to which the State of Bihar is a party and which relates to any matter arising out of any proceeding under this Act; or (e) for the purposes of enabling an officer of the Central Government or of any State Government to levy or recover any tax or duty imposed by it; (f) to any officer of the State Government where it is necessary to make such disclosure for the purposes of this Act; or (g) to any officer of the Central Government or of the State Government for the purpose of enabling such officer to perform his executive functions relating to the affairs of the Union or the State. ----- **91. Agreements to defeat intention and application of this Act to be void.—(1) If the Commissioner** is satisfied that an arrangement has been entered into between two or more persons or dealers to defeat the application or purposes of this Act or any provision of this Act, then, the Commissioner may, by order, declare the arrangement to be null and void as regards the application and purposes of this Act and he may, by the said order, provide for increase or decrease in the amount of tax payable by any person or dealer who is affected by the arrangement, whether or not such dealer or person is a party to the arrangement, in such manner as the Commissioner considers appropriate so as to counter act any tax advantage obtained by that dealer from or under the arrangement. (2) For the purposes of this section,— (i) “arrangement” includes any contract, agreement, plan or understanding whether enforceable in law or not, and all steps and transactions by which the arrangement is sought to be carried into effect; (ii) “tax advantage” includes,— (a) any reduction in the liability of any dealer to pay tax, (b) any increase in the entitlement of any dealer to claim input tax credit or refund, (c) any reduction in the sale price or purchase price receivable or payable by any dealer. (3) Before passing any order under this section, the Commissioner shall afford a reasonable opportunity of being heard to any such person or dealer whose tax advantage is sought to be counter acted. **92. Write off of dues.—Notwithstanding anything contained in this Act, the State Government, by** notification to be published in the Official Gazette, may, subject to such rules as may be prescribed, declare any dues created under this Act or the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94, as unrecoverable. **93. Power to make rules.—(1) The State Government may, subject to the condition of previous** publication, by notification, make rules to carry out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the manner in which the advance tax may be collected under sub-section (7) of section 3; (b) constitution of the Tribunal under sub-section (1) of section 9; (c) the terms and conditions of service of the Chairperson or any other Government servant appointed as a member of the Tribunal under sub-section (7) of section 9; (d) the areas and functions of inspectors under sub-section (3) of section 10; (e) the form and manner in which the true and complete declaration referred to in clause (a) of sub-section (2) of section 13 shall be filed; (f) the conditions and restrictions subject to which the registered dealers may be permitted to pay an amount under sub-section (1) of section 15; (g) the conditions and restrictions subject to which an input tax credit shall be claimed under sub-section (1) section 16; (h) the manner and the period within which the input tax credit in respect of capital goods shall be allowed under clauses (a), (b), (c), (d) and (e) of sub-section (1) of section 16; (i) the manner in which the input tax credit on the sale or supply of goods shall be claimed by the registered dealer selling the goods or using them in the execution of sub-contract under sub-section (2) of section 16; (j) the other goods on which input tax credit shall not be claimed or allowed under clause (a) of sub-section (3) of section 16; (k) the particulars of sale in the original copy of the tax invoice and the form and manner of the duplicate copy of the original tax invoice under sub-section (5) of section 16; ----- (l) the manner in which input tax credit on goods and the manner and extent in which the input tax on account of capital assets shall be allowed under sub-section (1) of section 17; (m) the restrictions and conditions subject to which and the time and manner in which the organisations specified in the Schedule V to this Act may apply for refund of tax paid on goods purchased under sub-section (2) of section 17; (n) the manner of application for and the grant of certificate of registration under sub-section (2) of section 19; (o) the manner in which the certificate of registration shall be surrendered and the manner in which the certificate of registration shall be cancelled under sub-section (2) of section 20; (p) the security and the manner in which such security shall be furnished under section 21; (q) the manner in which the declaration shall be furnished and the particulars of the person under sub-section (1) of section 22; (r) the form and manner in which the returns or statements or notice, as the case may be, under sub-sections (1), (2), (3), (4) and (7) of section 24 shall be furnished; (s) the manner in which the opportunity of being heard is to be provided under sub-section (8) of section 24; (t) the manner of depositing tax and the form and manner of enclosing the proof of payment of such tax under sub-section (9) of section 24; (u) the time and manner of scrutiny of return under sub-section (1) of section 25; (v) the form of notice to the concerned dealer under sub-section (2) of section 25; (w) the form and manner of serving a notice and the time within which the dealer is required to pay the tax and interest under clause (b) of sub-section (3) of section 25; (x) the manner of conducting an audit of the business of a dealer under sub-section (3) of section 26; (y) making of provisional or final assessment of turnover of sale or purchase of goods under sub-section (1) of section 30; (z) the form and manner of notice and the manner of assessment or re-assessment under sub-section (1) of section 31; (za) the manner in which the opportunity of being heard is to be provided under sub-section (1) of section 32; (zb) the manner in which the amount of tax may be provisionally quantified under sub-section (2) of section 32; (zc) the manner in which the re-assessment may be made under section 33; (zd) the other evidence to prove and the form and manner of declaration required to be furnished under sub-section (2) of section 35; (ze) such other manner of payment of tax and the manner of payment of tax, interest due or the penalty by instalments under sub-section (2) of section 39; (zf) the manner of payment of penalty under sub-section (5) of section 39; (zg) the conditions and restrictions subject to which the deduction of tax may be made under sub-section (1) of section 40; (zh) the manner of payment of amount into the Government Treasury under sub-section (3) of section 40; (zi) the conditions subject to which no deduction of tax shall be made under sub-section (1) of section 41; ----- (zj) the manner in which tax referred to in sub-section (1) of section 41 shall be deducted under sub-section (4) of section 41; (zk) the form and manner of certificate by the person making deduction under sub-section (5) of section 41; (zl) the form and manner of granting tax clearance certificate under section 42; (zm) the manner in which the opportunity of being heard is to be provided under sub-section (3) of section 43; (zn) the form of notice by the prescribed authority under sub-section (2) of section 44; (zo) the manner of publication of notice and the details therefor under sub-section (4) of section 44; (zp) the form of application in which the person may claim the refund under sub-section (5) of section 44; (zq) the manner of keeping a true and complete accounts under sub-section (1) of section 52; (zr) the dealers or persons and the manner of drawing up the manufacturing, trading and profit and loss account and a balance-sheet and other accounts under sub-section (2) of section 52; (zs) the form of challan to be issued by every dealer or a person under sub-section (3) of section 52; (zt) the accounts and the manner in which the trading and profit and loss account shall be drawn up under sub-section (4) of section 52; (zu) the value of goods exceeding which the retail invoice is required to be issued by the dealer under sub-section (4) of section 53; (zv) the period for which invoices under sub-section (7) of section 53 may be required to be preserved; (zw) the conditions and restrictions subject to which a copy of the original tax invoice may be provided by the selling dealer under sub-section (8) of section 53; (zx) the particulars of the credit note and the debit note under sub-section (9) of section 53; (zy) the other period for which the tax invoices and retail invoices are required to be preserved under sub-section (10) of section 53; (zz) the form of audit report and the particulars thereof under sub-section (2) of section 54; (zza) the manner of authorisation to inspect all places of business under sub-section (2) of section 56; (zzb) the manner of seizure of accounts, registers or documents under sub-section (3) of section 56; (zzc) the manner of seizure of goods under clause (a) of sub-section (4) of section 56; (zzd) the manner in which the opportunity of being heard is to be provided under clause (b) of sub-section (4) of section 56; (zze) the manner of auction of goods and the manner in which the sale proceeds shall be refunded under clause (e) of sub-section (4) of section 56; (zzf) the manner of release of security under clause (f) of sub-section (4) of section 56; (zzg) the manner and form of notice by the prescribed authority under sub-section (2) of section 57; (zzh) the form of notice by the prescribed authority under sub-sections (2) and (3) of section 58; (zzi) the time and manner of furnishing information under sub-section (1) of section 59; ----- (zzj) the accounts, registers and documents required to be maintained under sub-section (2) of section 59; (zzk) the manner of erecting check posts and barriers under sub-section (1) of section 60; (zzl) the form and manner of furnishing declaration and the conditions subject to which such declaration shall be furnished under sub-section (2) of section 60; (zzm) the manner of intercepting, detaining and searching any goods carrier under sub-section (3) of section 60; (zzn) the form of declaration required by a person transporting goods under sub-section (1) of section 61; (zzo) the manner of obtaining transit permission under sub-section (1) of section 62; (zzp) the manner of refund to a person who paid in excess of the amount due under sub-section (1) of section 68; (zzq) the manner of claiming or receiving the refund under sub-section (2) of section 68; (zzr) the form of application for grant of provisional refund under sub-section (1) of section 69; (zzs) the security to be furnished by the dealer under sub-section (2) of section 69; (zzt) the form and manner of filing an appeal under section 72; (zzu) the conditions subject to which the offences punishable under this Act may be investigated under sub-section (1) of section 83; (zzv) the manner of authorisation and the conditions subject to which an accountant, company secretary or sales tax practitioner may appear before taxing authorities under section 87; (zzw) declaration by the State Government relating to any dues as unrecoverable under section 92; (zzx) the manner of imposition of penalty for breach of any rules made under this section; (zzy) the manner and time in which, the particulars of, and the authority to whom, goods held in stock is to be declared under section 95; (zzz) the manner of claiming input tax credit under sub-sections (1) and (2) of section 96; (zzza) the manner and extent of deferment of tax liability under sub-section (3) of section 96; (zzzb) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be made, or may be, made by rules. (3) Every rule made under this section shall be laid, as soon as may be after it is made, before each House of the State Legislature while it is in session for a total period of fourteen days, which may be comprised in one session or in two successive sessions, and if, before the expiry of the session in which it is so laid or the session immediately following, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. (4) Any rule made under this section may provide that the contravention thereof shall be punishable with fine which may extend to five thousand rupees and where the contravention is continuing one, with a further fine which may extend to one hundred rupees per day for every day during which such contravention continues. **94. Repeal and savings.—(1) The Bihar Finance Act, 1981 (Bihar Act 5 of 1981) (hereinafter referred** to as “the repealed Act”) is hereby repealed from the date of commencement of this Act. (2) The repeal shall not affect,— (a) any legal proceeding or remedy whether initiated or availed of before or after this repeal, in respect of any such right, title, obligation or liability; (b) affect any right, privilege, obligation, or liability acquired, accrued or incurred under the repealed Act except the right or privilege accrued under the repealed Act or the rules framed or ----- notifications issued thereunder, to industries, granted under any industrial policy or industrial policy resolution of the State Government; or (c) the levy, assessment or recovery of any tax or the imposition or recovery of any penalty, in respect of such period, under the provision of the repealed Act; and all proceedings under the repealed Act in respect of matters aforesaid shall be initiated and disposed of or continued and disposed of, as the case may be, as if this Act has not been passed; and for this purpose all taxing authorities or Inspectors appointed under section 10, and the Tribunal constituted under section 9 of, shall exercise all powers and perform all duties conferred by or under the repealed Act upon the corresponding authorities appointed under section 9 or section 8 thereof: Provided that any appeal or any revision arising out of any order under the Bihar Finance Act, 1981 (Bihar Act 5 of 1981) shall be filed before, or heard or disposed of by, the appropriate authorities mentioned in sections 72, 73 and 74 in the manner as provided therein. (3) All rules, orders and appointments made, notifications published, certificates granted, powers conferred and other things done under the said Act and in force on the commencement of this Act, shall, so far as they are not inconsistent with or until they are not modified, superseded or cancelled under this Act, be deemed to have been respectively made, published, granted, conferred or done under this Act. (4) Save as otherwise provided in sub-sections (2) and (3), the mention of particular matters in those sub-sections shall not be held to prejudice or affect the general application of section 6 of the General Clauses Act, 1897 (10 of 1897) with regard to the effect of repeal. **95. Declaration of stock of goods held on 1st April, 2005.—Every dealer who was registered under** the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94, or who makes an application for registration as a dealer on the 1st day of April, 2005 shall declare such details regarding the stock of goods held by him on the 31st March, 2005 in such manner and with such particulars and within such time and to such authority, as may be prescribed. **96. Transitory provisions.—(1) Where any goods, other than those specified under sub-section (2) of** section 13 of this Act, held in stock by a registered dealer on the date of commencement of this Act, are goods which have already suffered tax on the first point of their sale within the meaning of the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94, are sold by him or are consumed in manufacture of other goods on or after the date of commencement of this Act, he shall claim and be allowed, in such manner as may be prescribed, an input tax credit under sections 16 and 17 of this Act. (2) Where any goods, other than those specified under sub-section (2) of section 13 of this Act, held in stock by a registered dealer on the date of commencement of this Act, are goods which have already suffered tax on the first point of their sale within the meaning of the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94, are used or consumed by him for the manufacture of goods for sale within the State of Bihar or in the course of inter-State trade and commerce under section 3 of the Central Sales Tax Act, 1956 (74 of 1956) or in the course of export within the meaning of section 5 of the Central Sales Tax Act, 1956 on or after the date of commencement of this Act, he shall claim and be allowed, in such manner as may be prescribed, an input tax credit under sections 16 and 17 of this Act. (3) Where— (a) any dealer has been granted the facility of deferment of tax payable under section 23A of the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94, and who has, on the commencement of this Act, not availed of the full entitlement, he shall be allowed to continue to defer the tax payable under this Act, in the manner and to the extent prescribed; (b) any dealer has been granted the facility of exemption from payment of tax under clause (b) of sub-section (3) of section 7 of the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94, and who has, on the commencement of this Act, not availed of the full entitlement, he shall be allowed to opt for deferment of his tax liability under this Act, in the manner and to the extent prescribed. (4) Where— ----- (a) the tax has been collected under the Bihar Finance Act, 1981 (Bihar Act 5 of 1981) as it stood before its repeal by section 94, but the same has not been deposited before the date of commencement of this Act, the tax so collected by any person under the said Act shall be deposited in accordance with the provisions of the aforesaid Act and the rules made thereunder, as if this Act has not come into force and the said Act had not been repealed; (b) a return or statement is required to be filed under the Bihar Finance Act, 1981 (Bihar Act 5 of 1981) as it stood before its repeal by section 94, but the same had not been filed before the commencement of this Act, such return or statement, as the case may be, shall be filed in accordance with the provisions of the aforesaid Act and by the person liable to file such return or statement; (c) a return has been filed, under the Bihar Finance Act, 1981 (Bihar Act 5 of 1981) as it stood before its repeal by section 94, by any dealer for any year and no assessment in respect of that year has been made before the commencement of this Act, the proceedings for the assessment of that dealer for that year shall be made or be continued as if this Act had not come into force and the said Act had not been repealed and such assessment shall be made by the prescribed authority under this Act; (d) a person has been aggrieved by any decision made or order passed under the Bihar Finance Act, 1981 (Bihar Act 5 of 1981) as it stood before its repeal by section 94, and he has not filed any appeal or an application for review or revision, such person may file an appeal or make an application for revision or review, as the case may be, in accordance with the provision of the said Act and the rules made thereunder to the prescribed authority for disposing of such appeal or application; (e) any liability of any dealer to pay tax, under the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94, had been affected, and such person was entitled to make a reference before the High Court under section 48 of the said Act, before the date of commencement of this Act, such person may, draw up, within two months of the date of commencement of this Act, a reference (if not already made such reference) and refer it to the High Court in accordance with the provisions of said section 48, as if the aforesaid Act had not been repealed. (5) No interest or penalty shall be leviable or imposable or no prosecution shall be initiated for any offence committed under this Act during the period beginning on the 18th April, 2005 and ending on the day preceding the day on which this Act comes into force. **97. Construction of references in any repealed law to officers, authorities, etc.—Any reference in** any provision of the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94, to an officer, authority or tribunal shall, for the purpose of carrying into effect the provisions contained in section 83, be construed as a reference to the corresponding officer, authority or tribunal appointed or constituted by or under this Act; and if any question arises as to who such corresponding officer, authority or tribunal is, the decision of the Commissioner thereon shall be final. **98. Removal of difficulty.—(1) If any difficulty arises in giving effect to the provisions of this Act,** the State Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for removing the difficulty: Provided that no order shall be made under this section after the expiry of a period of two years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of State Legislature. **99. Laying of notifications on the table of the State Legislature.—Every notification issued under** this Act shall be laid, as soon as may be, after it is published in the Official Gazette, before each House of State Legislature while it is in session for a total period of fourteen days which may be comprised in one session or in two successive sessions, and if, before the expiry of the session in which it is so laid or the session immediately following, both Houses agree in making any modification in the notification or both Houses agree that the notification should be annulled, the notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that notification. ----- **100. Validation of Bihar Value Added Tax Ordinance, 2005.—Anything done or any action taken** under the Bihar Value Added Tax Ordinance, 2005 (Bihar Ord. 1 of 2005) (including any order passed, notification issued and rules made) shall be deemed to be valid and be deemed to have been done or taken under the corresponding provisions of this Act. ----- SCHEDULE I (See section 7) Serial Number Goods 1. Coarse grains. 2. Fresh vegetables and fresh fruits. 3. Fresh meat, fresh fish and livestock. 4. Unprocessed and unbranded salt. 5. Fresh milk and pasteurized milk. 6. Fresh eggs. 7. Unpacked plain water. 8. Books, periodicals and journals. 9. Unbranded bread. 10. Handlooms excluding handloom products. 11. Betel leaves. 12. Condoms an contraceptives. 13. Curd, lassi and butter milk. 14. Electrical energy. 15. Glass bangles. 16. Kumkum and bindi. 17. Aids and implements used by handicapped persons. 18. Poultry feed and aquatic feed. 19. Green garlic and green ginger. 20. Firewood. 21. Agricultural implements exclusively worked by human or animal power such as rahat, water lift, ploughs and parts thereof, spades (kudali), hoes, phavras, harrows, sickles, khurpies, karing, kundi, mowers, cultivators, ridgers, land levellers, axe, gandasa, shears, yokes, hand dusters. 22. Raw silk. 23. Indigenous hand-made musical instruments. 24. Raw wool. 25. Fresh flowers. 26. Saplings. 27. Cotton yarn in hank. 28. Cart driven by animals. 29. Rakhi. 30. Sacred thread, commonly known as yagyopawit. 31. Idols made of clay. ----- Serial Number Goods 32. Clay lamps. 33. Bangles made of shell, plastic, lac or glass. 34. Kites. 35. Takhti. 36. Poha, murmura, laktho, lai and mukundana. 37. Sattu. 38. Goods mentioned in clauses (iia), (vii), (viii), (ix) and (x) of section 14 of the Central Sales Tax Act, 1956 (74 of 1956). ----- SCHEDULE II (See section 14) Serial Number Goods 1. Gold, silver and other precious metals. 2. Articles of gold, silver and precious metals including jewellery made of gold, silver and precious metals. 3. Precious stones. ----- SCHEDULE III (See section 14) PART I Serial Number Goods 1. Acids. 2. Agarbatti. 3. All kinds of bricks including refractory bricks and asphaltic roofing. 4. All types of yarn except cotton hank yarn. 5. Aluminium conductor steel reinforced. 6. Aluminium utensils. 7. Aluminium, aluminium alloys, their products (including extrusions) not elsewhere mentioned in this Schedule or in any other Schedule. 8. Article made of rolled gold and imitation gold. 9. Artificial silk yarn, polyster fibre yarn, and staple fibre yarn. 10. Bagasse. 11. Basic chromium sulphate, sodium bi-chromate, bleach liquid. 12. Beedi leaves. 13. Bicycles, tricycles and their spare parts. 14. Bone meal. 15. Bran oil. 16. Branded bread. 17. Castor oil. 18. Charcoal. 19. Chemical fertilizers, pesticides, weedicides and insecticides excluding mosquito repellants. 20. Chemicals including caustic soda, caustic potash, soda ash, bleaching powder, sodium bi-carbonate, sodium hydrosulphite, sulphate of alumina, sodium nitrate, sodium acetate, sodium sulphate, acid slurry, tri-sodium phosphate, sodium tripoly phosphate, sodium silicate, sodium metasilicate, carboxy methyl cellulose, sodium sulphide, acetic acid, sodium bi-sulphite, oxalic acid, sodium thiosulphate, sodium sulphite, sodium alginate, benzene, citric acid, diethylene glycol, sodium nitrite, hydrogen peroxide, acetaldehyde, pentaerythritol, sodium alpha olefin sulphonate, sodium formate, chemical components and mixtures and all other chemicals not specified elsewhere in this Schedule or in any other Schedule. 21. Chillies. 22. Clay. 23. Cumin seed. 24. Declared goods under section 14 of the Central Sales Tax Act, 1956 (74 of 1956) except goods mentioned in clauses (iia), (vii), (viii), (ix) and (x) of that section. 25. De-oiled cake. ----- Serial Number Goods 26. Dyes, that is to say, –(i) Acid dyes; (ii) Alizarine dyes; (iii) Bases; (iv) Basic dyes; (v) Direct dyes; (vi) Naphthols; (vii) Nylon dyes; (viii) Optical whitening agents; (ix) Plastic dyes; (x) Reactive dyes; (xi) Sulphur dyes; (xii) Vat dyes; (xiii) all other dyes not specified elsewhere in the Schedule. 27. Edible oils and oil cake. 28. Electrodes. 29. Embroidery or zari articles, that is to say,–(i) imi; (ii) zari; (iii) kasab; (iv) saima; (v) dabka; (vi) chumki; (vii) gota; (viii) sitara; (ix) naqsi; (x) kora; (xi) glass bead; (xii) badla; (xiii) glzal, (xiv) embroidery machines, (xv) embroidery needles. 30. Fireclay, coal ash, coal boiler ash, coal cinder ash, coal powder, clinker. 31. Flour-atta, maida, suji, bran and besan. 32. Galvanized iron Pipes. 33. Gingili oil. 34. Gur and Jaggery. 35. Hand pumps and spare parts. 36. Hose pipes. 37. Hosiery goods. 38. Ice. 39. Industrial cables. 40. Industrial inputs as specified in Part III of this Schedule used exclusively as industrial inputs. 41. Information Technology products, as given in Part II of this Schedule, including computers, telephone and parts thereof, tele-printer and wireless equipment. 42. Khandsari. 43. Kirana goods such as: _i. Spices e.g. garlic, haldi, gol mirch, tejpatta, dhania, jira, laung, ilaichi, sahjira, mangraila,_ dalchini, jaffer, hing, methi, jabitri, saunf, all kinds of adrakh, jatamanshi, tamarind, sonth, ajwain, kawabchini and pepper; _ii. Medical herbs, and_ _iii. Miscellaneous articles like rori, gulal, mica dust, camphor, peppermint, dhup, broom_ sticks, lohban, arrowroot, sohaga, nausadar, alum, posta and mitha soda. 44. Knitting wool. 45. Lignite. 46. Lime, lime stone, products of lime, dolomite and other white washing materials not elsewhere mentioned in this Schedule or in any other Schedule. 47. Linear alkyl benezene. 48. Maize products. 49. Medicine and Drugs of all varieties excluding any cosmetics, perfumery, toiletry and hair oil, whether or not such cosmetics, perfumery, toiletry and hair oil is manufactured under any Drug Licence and whether or not such cosmetics, perfumery, toiletry and hair oil contains any medicinal properties. ----- Serial Number Goods 50. Metals, alloys, metal powders, metal pastes of all types and grades and metal scraps other than those declared under section 14 of the Central Sales Tax Act, 1956. 51. Mixed PVC stabilizer. 52. Napa Slabs (rough flooring stones). 53. Ores and minerals. 54. Organic manure. 55. Palm fatty acid. 56. Paper and newsprint including exercise books, paperboard, mill board, straw board, blotting paper, cardboard, waste paper (cutting paper), cartridge paper, packing paper, paper bags, cartons, cards, blank registers, note books, envelopes, labels, letter pads, writing tablets and flat files. 57. (i) Paraffin wax of all grade standards other than food grade standard including standard wax and match wax; (ii) Slack wax. 58. Pens of all kinds including refills. 59. Plastic footwear. 60. Plastic granules. 61. Power operated agricultural implements. 62. Printing ink excluding toner and cartridges. 63. Processed and branded salt. 64. Pulp of bamboo. 65. PVC pipes. 66. Ready-made garments. 67. Rubber that is to say,–(a) Raw rubber, latex, dry ribbed sheet of all RMA Grades, tree lace, earth scrap, ammoniated latex, prescribed latex, latex concentrate, centrifugal latex, dry crepe rubber, dry block rubber, crumb rubber, skimmed rubber and all other qualities and grades of latex; (b) Reclaimed rubber all grades and qualities; (c) Synthetic rubber. 68. Safety matches. 69. Seeds. 70. Sewing thread. 71. Ship (including ship building). 72. Silk fabrics. 73. Solvent oils other than organic solvent oil. 74. Sponge iron. 75. Stainless steel. 76. Starch. 77. Tamarind. 78. Tractors, harvesters, their implements and spare parts. ----- Serial Number Goods 79. Transmission wires and towers. 80. Turmeric. 81. Vanaspati. 82. Vegetable oil. 83. Water when sold in sealed container. 84. Writing instruments. 85. Renewable energy devices and spare parts such as flat solar collectors, concentrating and pipe type solar collectors, solar water heaters and systems, air/gas/fluid heating systems, solar crop dealers and systems, solar stills and declination systems, solar pumps based on solar thermal and solar photovoltaic conversion, solar power generating systems, solar photovoltaic nodules and panels for water pumping and other applications, wind mills and any specially designed devices on wind mills, any special devices including electric generators and pumps running on wind energy, bio-gas plants and bio-gas engines and bio-gas fires, agricultural and municipal water conversion devices producing energy, equipment for utilising geothermal energy, portable varieties of improved solar chullah, solar refrigeration, solar cold storage and solar air conditioning systems, electricity operated vehicles including battery powered or fuel cell powered vehicles. PART II 1. Word processing machines and electronic typewriters. 2. Electronic calculators. 3. Computer systems and peripherals, electronic diaries. 4. Parts and accessories of goods specified at serial numbers 1, 2, 3 above. 5. DC Micrometers/stepper motors of an output not exceeding 37.5 watts. 6. Parts of goods specified at serial number 5 above. 7. Uninterrupted Power Supplies and their parts. 8. Permanent magnets and articles intended to become permanent magnets (Ferrites). 9. Electrical apparatus for line telephony or line telegraphy, including line telephone sets with cordless handsets and telecommunication apparatus for carries-current line systems or for digital line systems; Videophones. 10. Microphones, Multimedia speakers, headphones, earphones and combined microphone/ speaker sets and their parts. 11. Telephone answering machines. 12. Parts of telephone answering machines. 13. Prepared unrecorded media for sound recording or similar recording of other phenomena. 14. Information Technology software on any media. 15. Transmission apparatus other than apparatus for radio broadcasting or TV broadcasting, transmission apparatus incorporating reception apparatus, digital still image video cameras. 16. Radio communication receivers, Radio pagers. ----- Serial Number Goods 17. (i) Aerials, antennas and their parts. (ii) Parts of goods specified at serial number 14 and 15 above. 18. LCD Panels, LED Panels and parts thereof. 19. Electrical capacitors, fixed, variable or adjustable (Pre-set) and parts thereof. 20. Electrical resistors (including rheostats and potentiometers), other than heating resistors. 21. Printed circuits. 22. Switches, connectors and Relays for up to 5 Amps at voltage not exceeding 250 volts, electronic fuses. 23. Data/Graphic display tubes, other than TV picture tubes and parts thereof. 24. Diodes, transistors and similar semi-conductor devices, Photosensitive semi-conductor devices, including Photovoltaic cells whether or not assembled in modules or made up into panels; Light emitting diodes; Mounted piezo-electric crystals. 25. Electronic Integrated Circuits and Micro-assemblies. 26. Signal generators and parts thereof. 27. Optical fibre cables. 28. Optical fibre and optical fibre bundles and cables. 29. Liquid Crystal Devices, Flat Panel Display Devices and parts thereof. 30. Cathode ray oscilloscopes, Spectrum Analyzers, Cross-talk meters, Gain measuring instruments, Distortion factor meters, Psophometers, Network and Logic Analyzer and Signal Analyzer. PART III 1. Animal (including fish) fats and oils, crude, refined or purified. 2. Glycerol, crude, glycerol waters and glycerol lyes. 3. Vegetable waxes (other than triglycerides), beeswax, other insect waxes and spermacell, whether or not refined or coloured; degras; residues resulting from the treatment of tall substances or animal or vegetable waxes. 4. Animal or vegetable fats boiled, oxidized, dehydrated, sulphurised, blown, polymerized by heat in vacuum or in inert gas or otherwise chemically modified inedible mixtures or preparations of fats and oils. 5. Liquid glucose (non-medicinal). 6. Denatured ethyl alcohol of any strength. 7. Manganese ores and concentrates, including ferruginous manganese ores and concentrates with a manganese content of 20% or more, calculate on dry weight. 8. Copper ores and concentrates. 9. Nickel ores and concentrates. 10. Cobalt ores and concentrates. 11. Aluminium ores and concentrates. 12. Lead ores and concentrates. 13. Zinc ores and concentrates. ----- Serial Number Goods 14. Tin ores and concentrates. 15. Chromium ores and concentrates. 16. Tungsten ores and concentrates. 17. Uranium or thorium ores and concentrates. 18. Molybdenum ores and concentrates. 19. Titanium ores and concentrates. 20. Niobium, tantalum, vanadium or zirconium ores and concentrates. 21. Precious metal ores and concentrates. 22. Other ores and concentrates. 23. Granulate slag (slag sand) for the manufacture of iron or steel. 24. Benzole. 25. Toluole. 26. Xylole. 27. Naphthalene. 28. Phenols. 29. Creosote oils. 30. Fluorine, chlorine, bromine and iodine. 31. Sulphur, sublimed or precipitated; colloidal sulphur. 32. Carbon (carbon blacks and other forms of carbon not elsewhere specified or included). 33. Hydrogen, rare gases and other non-metals. 34. Alkali or alkaline-earth metals; rare-earth metals, scandium and yttrium, whether or not intermixed or inter alloyed; mercury. 35. Hydrogen chloride (hydrochloric acid); chlorosulphuric acids. 36. Sulphuric acid and anhydrides thereof; oleum. 37. Nitric acid; sulphonitric acids. 38. Diphosphorus pentaoxide; phosphoric acid and polyphosphoric acids. 39. Oxides of boron: boric acids. 40. Halides and halide oxides of non-metals. 41. Sulphides of non-metals; commercial phosphorus trisulphide. 42. Ammonia, anhydrous or in aqueous solution. 43. Sodium hydroxide (caustic soda); potassium hydroxide (caustic potash); peroxides of sodium or potassium. 44. Hydroxide and peroxide of magnesium; oxides, hydroxides and peroxides of strontium or barium. 45. Aluminium hydroxide. 46. Chromium oxides and hydroxides. 47. Manganese oxides. ----- Serial Number Goods 48. Iron oxides and hydroxides. 49. Cobalt oxides and hydroxides; commercial cobalt oxides. 50. Tatanium oxide. 51. Hydrazine and hydroxylamine and their inorganic salts; other inorganic bases; other metal oxides, hydroxides and peroxides. 52. Fluorides; fluorosilicates, fluoroaluminates and other complex fluorine salts. 53. Chlorides, chloride oxides and chloride hydroxides, bromides and bromide oxides; iodides and iodide oxides. 54. Chlorates and perchlorates; bromates and perbromates; lodates and periodates. 55. Sulphides; polysulphides. 56. Dithionites and sulphoxylates. 57. Sulphides; thiosulphates. 58. Copper sulphate. 59. Nitrites; nitrates. 60. Phosphinates (hypophosphites), phosphonates (phosphates), phosphates and polyphosphates. 61. Carbonates; peroxocarbonates (percarbonates); commercial ammonium. 62. Cyanides, cyanide oxides and complex cyanides. 63. Fulminates, cyanates and thiocyanates. 64. Borates; peroxoborates (perborates). 65. Sodium dichromate. 66. Potassium dichromate. 67. Radioactive chemical elements and radioactive isotopes (including the fissile chemical elements and isotopes) and their compounds; mixtures and residues containing these products. 68. Isotopes compounds, inorganic or organic of such isotopes, whether or not chemically defined. 69. Compounds, inorganic or organic, of rare earth metals, of yttrium or of scandium or of mixtures of these metals. 70. Phosphides, whether or not chemically defined excluding ferrophosphours. 71. Calcium carbide. 72. Cyclic hydrocarbons. 73. Halogenated derivatives of hydrocarbons. 74. Sulphonated, nitrated or nitrosated derivatives of hydrocarbons, whether or nor halogenated. 75. Cyclic alcohols and their halogenated, sulphonated nitrated or nitrosated derivatives. 76. Halogenated, sulphonated, nitrated or nitrosated derivatives of phenols or phenol-alcohols. 77. Ethers, ether-alcohols, ether-phenols, ether-alcoholphenols, alcohol peroxides, ether peroxides, ketone peroxides (whether or not chemically defined) and their halogenated, sulphonated, nitrated or nitrosated, derivatives. ----- Serial Number Goods 78. Epoxidees, epoxyalcohols, epoxyphenols and epoxyethers, with a three-membered ring and their halogenated, sulphonated, nitrated or nitrosated derivatives. 79. Acetals and hemiacetals, whether or not with other oxygen function and their halogenated, sulphonated, nitrated or nitorsated derivatives. 80. Aldehydes, whether or not with other oxygen function; cyclic polymers of aldehydes; paraformaldehyde. 81. Halogenated, sulphonated, nitrated or nitrosated derivatives. 82. Saturated acyclic monocarboxylic acids and their anhydrides, halides, peroxides and peroxyacides; their halogenated, sulphonated, nitrated or nitrosated derivatives. 83. Unsaturated acyclic monocarboxylic acid, cyclic monocarboxylic acid, their anhydrides, halides, peroxides and peroxyacids; their halogenated, sulphonated, nitrated or nitrosated derivatives. 84. Polycarboxylic acids, their anhydrides, halides, peroxides and peroxyacids; their halogenated sulphonated, nitrated or nitrosated derivatives. 85. Carboxylic acids with additional oxygenfunction and their anhydrides, halides, peroxides and peroxyacids; their halogenated, sulphonated, nitrated or nitrosated derivatives. 86. Phosphoric esters and their salts including lactophosphates; their halogenated sulphonated, nitrated nitrosated derivatives. 87. Esters of other inorganic acids (excluding esters of hydrogen halides) and their salts; their halogenated; sulphonated, nitrated or nitrosated derivatives. 88. Amine-function compounds. 89. Oxygen-function amino-compounds. 90. Quaternary ammonium salts and hydroxides, leetcithins and other phosphoaminolipids. 91. Carboxyamind-function compounds: amide-function compounds of carbonic acid. 92. Carboxyamide function compounds (including saccharin andnits salts) and iminefunction compounds. 93. Nitrile-function compounds. 94. Diazo, Axo-orazoxy compounds. 95. Organic derivatives of hydrazine or of hydroxylamine. 96. Organo-sulphou compounds. 97. Ethylene Diamine Tetra Acetic Acid. Nitrillo Triaccetric acid and their derivatives. 98. Hetrocyclic compounds with oxygen heteroatom(s) only. 99. Hetrocyclic compounds with nitrogen heteroatom(s) only. 100. Nucleic acids and their salts; other heterocyclic compounds. 101. Sulphonamides. 102. Glycosides, natural or reproduced by synthesis and their salts, ethers, esters and other deritaves. 103. Vegetable alkaloids, natural or reproduced by synthesis and their salts, ethers, esters and other derivatives. 104. Ethylene Diamine Tetra Acetic Acid, nitrillo triaccetric acid and their derivatives. ----- Serial Number Goods 105. Tanning extracts of vegetable origin; tannis and their salts, ethers, esters and other derivatives. 106. Synthetic organic tanning substances; inorganic tanning substances; tanning preparations whether or not containing natural tanning substances; enbzymatic preparations for pretanning. 107. Colouring matter of vegetable or animal origin (including dyeing extracts but excluding animal black), whether or not chemically defined; preparations based on colouring matter of vegetable or animal origin. 108. Synthetic organic colouring matter; synthetic organic products of a kind used as fluorescent brightening agents or as luminophores, whether or not chemical defines. 109. Colour lakes; preparations based on colour lakes. 110. Glass frit and other glass, in the form of powder, granules or flakes. 111. Prepared driers. 112. Printing ink whether or not concentrated or solid. 113. Casein, caseinates and other casein derivatives, casein glues. 114. Enzymes; prepared enzymes not elsewhere specified or included. 115. Artificial graphite: colloidal or semi-colloidal graphite; preparations based on graphite or other carbon in the form of pastes, blocks, plated or other semi-manufactures. 116. Activated carbon: activated natural mineral products: animal black, including spent animal black. 117. Residual lyes from the manufacture of wood pulp, whether or not concentrated, desugared or chemically treated, including ligning sulphonates. 118. Resin and resin acids, and derivatives thereof: resin spirit and resin oils; run gums. 119. Wood tar; wood tar oils; wood creosote; woods naptha; vegetable pitch; brewers pitch and similar preparations based on rosin, resin acids or on vegetables pitch. 120. Finishing agents, dye carriers to accelerate the dyeing or fixing of dye-stuffs and other products and preparations (for example, dressing) and mordant of kind used in textile, paper, leather or liked industries, not elsewhere specified or included. 121. Prepared rubber accelerator; compound plasticisers for rubber or plastics, not elsewhere specified or included anti-oxidising preparations and other compound stabilisers for rubber or plastics. 122. Reducers and blanket wash/roller wash used in the printing industry. 123. Reaction intiators, reaction accelerators and catalytic preparations, not elsewhere specified or included. 124. Mixed alkylbenzenes and mixed alkyaphthalaenes. 125. Chemical elements doped for use in electronics, in the form of dises, wafers or similar forms: chemical compounds doped for use in electronic. 126. Industrial monocarboxylic fatty acids; acid oils from refining; industrial fatty alcohols. 127. Retarders used in the printing industry. 128. Polymers of propylene or of other olefins, in primary forms. 129. Acrylic polymers in primary forms. ----- Serial Number Goods 130. Polyacetals, other polyethers and expoxide resins in primary forms, polycarbonates, alkyd resins, polyallyl esters and other polyesters in primary forms. 131. Polyamides in primary forms. 132. Amino-resins, polyphenylene oxide, phenolic resins and plyurethanes in primary forms. 133. Silicones in primary forms. 134. Petroleum resins, coumarone-indene resins, polyterpenes, polysulphides, polysulphides. 135. Cellulose and its chemical derivatives, and cellulose ethers, not elsewhere specified or included in primary forms. 136. Natural polymers (for example alginic acid) and modified natural polyers (for example, hardened proteins, chemical derivatives of natural rubber), not elsewhere specified or included, in primary forms. 137. Ion-exchangers based on polymers. 138. Self adhesive plates, sheets, film foil, tape, strip of plastic whether or not in rolls. 139. Flexible plain films. 140. Articles for the packing of goods of plastics; namely; boxes, cases crates, containers, carboys, bottles, jerry cans and their stoppers, lids caps of plastics but not including insulated ware. 141. Natural rubber, balata, gutta percha, Guayule, chicle and similar natural gums, in primary forms or in plates, sheets or strips. 142. Synthetic rubber and factice derived from oils in primary forms or in plates, sheets or strip; mixtures of any produce of this heading in primary forms or in plates, sheets or strip. 143. Reclaimed rubber in primary form or in plates, sheets or strip. 144. Compounded rubber, unvulcanised, in primary forms or in plates, sheets or strip other than the forms and articles of unvulcanised rubber. 145. Mechanical wood pulp, chemical wood pulp, semi-chemical wood pulp and pulps of other fibrous cellulosic materials. 146. Cartons (including flattened or folded cartons), boxes (including flattened or folded boxes), cases, bags and other packing containers, of paper, paperboard, whether in assembled or unassembled condition. 147. Paper printed labels and paperboard printed labels. 148. Paper self adhesive tape and printed wrappers used for packing. 149. Sacks and bags of a kind used for the packing of goods, of jute or of other textile based fibres. 150. Carboys, bottles, jars phials of glass, of a kind used for the packing of goods; stoppers, lids and other closures of glass. 151. Stoppers, caps and lids (including crown corks, screw caps and pouring stoppers) capsules for bottles, threaded bungs, bung covers, seals and other packing accessories of base metal. ----- SCHEDULE IV (See section 14) Serial Number Goods 1. Country liquor including spiced country liquor 2. Potable spirit, wine or liquor whether imported or manufactured in India 3. High Speed Diesel Oil and Light Diesel Oil 4. Motor Spirit 5. Natural Gas 6. Aviation Turbine Fuel ----- Serial Number SCHEDULE V (See section 17) List of organisations which can claim refund 1. AFGHANISTAN. H.E. Ambassador of Republic of Afghanistan. The Embassy of Republic of Afghanistan. The Diplomatic Officers (including their spouses) of the Embassy of Afghanistan. 2. AFRO-ASIAN RURAL RECONSTRUCTION ORGANISATION. 3. ALGERIA. The Embassy of Democratic and Popular Republic of Algeria. 4. ANGOLA. The Embassy of Angola on the purchases made by the diplomats for Official and personal use. 5. APOSTOLIC NUNCIATURE. 6. ARGENTINA. The Embassy of Argentina Republic on the purchases made by its diplomats for official as well as personal use. 7. ARMENIA. The Embassy of Armenia on the purchases made by the mission for official use. 8. ASIAN AFRICAN LEGAL CONSULTIVE COMMITTEE, for its official use. 9. ASIAN DEVELOPMENT BANK. 10. AUSTRALIA. The High Commission and its Diplomatic Officers in respect of purchases made from bounded stores only for their official and personal use. 11. AUSTRIA. The Embassy of Austria in India (for sales intended for their official use). The Diplomatic Officers of the Embassy of Austria in India (for sales intended for their personal use). 12. BANGLADESH. The High Commission for the Peoples Republic of Bangladesh in India. The Diplomatic Officers (including their spouses) of the High Commission for the Peoples Republic of Bangladesh in India. 13. BELARUS. The Embassy of Belarus in India. Purchases made for its diplomatic and administrative/technical personnel for official as well as personal use. ----- Serial Number List of organisations which can claim refund 14. BELGIUM. H.E. the Ambassador of Belgium in India. The Embassy of Belgium in India. The Diplomatic Officers of the Belgium Embassy in India. 15. BHUTAN. The Royal Bhutan Mission for sales intended for official use of Mission. The Representative of Bhutan for sales intended for personal use. The Diplomatic Officers of the Royal Bhutan Mission for sales intended for personal use. 16. BRAZIL. The Embassy of the Federative Republic of Brazil in India. The Diplomatic Officers (including their spouses) of the Embassy of Federative Republic of Brazil in India. 17. BRITAIN. The High Commission for Britain in India (all sales for official use). The Diplomatic Officers (including their spouses) of the High Commission for Britain in India (sales of imported goods from bonded stocks only). 18. BRUNEI DARUSSALAM. The Embassy of Brunei Darussalam on the purchases made by its Diplomats for Official as well as personal use. 19. BULGARIA. H.E. the Ambassador of the Peoples Republic of Bulgaria in India. The Embassy of the Peoples Republic of Bulgaria in India. The Diplomatic Officers (including their spouses) of the Embassy of the Peoples Republic of Bulgaria in India. 20. CANADA. H.E. the High Commissioner for Canadian in India. The Diplomatic Officers of the Canada High Commission. The Canadian High Commission. 21. CENTRAL AFRICA. The Embassy of the Central African Empire (for sales intended for official use). The Diplomatic Officers (including their spouses) of the Embassy of the Central African Empire (for sales intended for their personal use). 22. CHINA. H.E. the Chinese Ambassador in India. The Embassy of the Peoples Republic of China. The Diplomatic officers of the Chinese Embassy in India. ----- Serial Number List of organisations which can claim refund 23. COLUMBIA. The Embassy of Columbia in India. 24. COMBODIA. H.E. the ambassador of Combodia in India. The Embassy of Combodia in India. The Diplomatic Officers (including their spouses) of the Embassy of Combodia in India. 25. (A) Officials of the COMMISSION OF THE EUROPEAN COMMUNITIES for setting up their office. (B) Personnel of the delegation holding diplomatic status (other than Indian nationals and persons permanently resident in India Employed by the said Commission). 26. COMMON EDUCATIONAL MEDIA CENTRE FOR ASIA. Common Educational Media Centre on the purchase made for official use and by its President and Vice-President for personal use. 27. CONGO. The Congolese Embassy and their Diplomatic Officers. 28. CROATIA. The Embassy of Croatia on the purchases made by its diplomats for official as well as for personal use of their officials. 29. CUBA. The Embassy of the Republic of Cuba in India. The Diplomatic Officers (including their spouses) of the Republic of Cuba in India. 30. CYPRUS. The Cyprus High Commission (for sales intended for official use). The Diplomatic Officers (including their spouses) of the Cyprus High Commission (for sales intended for their personal use). 31. CZECH REPUBLIC. The Embassy of Czech Republic on the purchases made by its diplomats for official as well as for personal use of their officials. 32. DENMARK. The Royal Danish Embassy in India. The Diplomatic Officers (including their spouses) of the Royal Danish Embassy in India. 33. DOMINICA. The High Commission for the Commonwealth of Dominica (for its official purchases). The Diplomatic Officials of the High Commission for the Commonwealth of Dominica (for their personal use). ----- Serial Number List of organisations which can claim refund 34. EGYPT. The Embassy of the Arab Republic of Egypt in India. The Diplomatic officers (including their spouses) of the Embassy of the Arab Republic of Egypt in India. 35. ETHOPIA. The Ethopian Embassy in India (for its official purchases). The Diplomatic Officers of the Ethopian Embassy in India (for their personal purchases). 36. FINLAND. The Embassy of Finland on the purchase of following items made by its diplomats for official purpose. (1) Construction materials as well as commodities to be used for the interior decoration and furnishing of building. (2) Commodities used in representational functions. (3) Motor vehicles as well as spare parts and equipment for Motor vehicles. (4) Work performances concerning the premises of a mission or office and the commodities referred to in items (1) to (3) or the rental of those commodities. (5) Telecommunication services, energy commodities and fuel purchased for the building of a mission or office. (6) Fuels for motor vehicles. 37. FRANCE. The Embassy of France on the purchases made by its diplomats for Official purposes and for the residence of the Ambassador. 38. GERMANY. The Embassy of Germany in India (for sales intended for official use only). The Diplomatic Officers of the German Embassy in India (for sales intended for personal use). 39. GHANA. The High Commissioner for Ghana in India. The Diplomatic officers (including their spouses) of the High Commissioner for Ghana in India. 40. GREECE. The Royal Greek Embassy in India. The Diplomatic Officers (including their spouses) of the Royal Greek Embassy in India. 41. GUYANA. The High Commission for Guyana, and its Diplomatic Officers (including their spouses). ----- Serial Number List of organisations which can claim refund 42. HUNGARY. H.E. The Ambassador of the Hungarian Peoples Republic in India. The Embassy of the Hungarian Peoples Republic in India. The Diplomatic Officers (including their spouses) of the Embassy of the Hungarian Peoples Republic in India. 43. INDONESIA. The Embassy of Indonesia on all its official purchases and the purchases made by its officials for their personal use. 44. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT IN INDIA and Employees, other than those recruited locally of the International Bank for Reconstruction and Development in India. 45. INTERNATIONAL CENTRE FOR GENETIC ENGINEERING AND BIOTECHNOLOGY, (for all its official purchases). 46. (A) Office of the INTERNATIONAL COURT OF JUSTICE (for sales intended for official use). (B) Dr. Nagendra Singh an elected judge of the International Court of Justice, (for sales intended for his personal use). 47. INTERNATIONAL LABOUR OFFICE. 48. IRAN. The Embassy of Iran in India. The Diplomatic Officers (including their spouses) of the Embassy of Iran in India. 49. IRAQ. H.E. the Ambassador of the Republic of Iraq in India. The Embassy of Republic of Iraq in India. The Diplomatic Officers (including their spouses) of the Embassy of Iraq in India. 50. IRELAND. The Embassy of Ireland in India. The Diplomatic Officers (including their spouses) of the Embassy of Ireland in India. 51. ISRAEL. The Embassy of Israel on purchases made by its diplomats for official as well as for personal use. 52. ITALY. The Embassy of Italy on the purchases made by its diplomats for official use as well as for personal use of their officials. 53. JAPAN. The Embassy of Japan and its Diplomatic Officers. ----- Serial Number List of organisations which can claim refund 54. JORDAN. The Embassy of Hashemite Kingdom of Jordan in India. The Diplomatic Officers (including their spouses) of the Embassy of the Hashemite Kingdom of Jordan in India. 55. KAZAKHSTAN. The Embassy of Kazakhstan on the purchases made by its diplomats for official as well as for personal use. 56. KENYA. For official use as well as Diplomatic Officers (including their spouses) of the Kenya High Commission in India. 57. KOREA. H.E. the Ambassador of Korea. The Embassy of the Republic of Korea. The Diplomatic Officers (including their spouses) of the Embassy Republic of Korea. 58. KOREA (D.P.R.). H.E. The Ambassador of the Democratic Peoples Republic of Korea. The Embassy of the Democratic People Republic of Korea. The Diplomatic Officers (including their spouses) of the Embassy of the Democratic Peoples Republic of Korea. 59. KUWAIT. H.E. the Ambassador of the State of Kuwait in India. The Embassy of the State of Kuwait in India. The Diplomatic Officers of the Embassy of the State of Kuwait in India. 60. KYRGHYSTAN. The Embassy of Kyrghystan on the purchases made by its diplomats for official as well as for personal use. 61. LAOS. The Royal Embassy of Laos in India. The Diplomatic Officers (including their spouses) of Royal Embassy of Laos in India. 62. LEAGUE OF ARAB STATES MISSION. League of Arab States Mission. Chief Representative, Deputy Chief Representative, their spouses and minor children of the league of Arab States Mission. 63. LEBANON. H.E. the Ambassador of Lebanon in India. The Embassy of Lebanon in India. The Diplomatic Officers (including their spouses) of the Embassy of Lebanon. ----- Serial Number List of organisations which can claim refund 64. LIBERIA. The Embassy of Liberia on all its official purchases as well as purchases made by its officials for their personal use. 65. LIBYA. The Embassy of the Libyan Arab Republic in India (for sales intended for official use). The Diplomatic Officers (including their spouses) of the Embassy of the Libyan Arab Republic in India (for sales intended for their personal use). 66. LUXEMBOURG. The Embassy of Grand Duchy of Luxembourg in respect of goods purchased by them for official use only. 67. MALAYSIA. The High Commissioner for Malaysia in India. The Diplomatic Officer (including their spouses) of the High Commissioner for Malaysia in India. 68. MAURITIUS. The High Commission of Mauritius and its Diplomatic Officers. 69. MEXICO. The Embassy of Mexico in India. The Diplomatic Officers (including their spouses) of the Embassy of Mexico in India. 70. MONGOLIA. H.E. the Ambassador of the Mongolian Peoples Republic in India. The Embassy of the Mongolian Peoples Republic in India. The Diplomatic Officers of the Embassy of the Mongolian Peoples Republic in India. 71. MOROCCO The Embassy of Morocco on the purchases made by its diplomats for official as well as personal use. 72. MOZAMBIQUE. High Commission of the Republic of Mozambique in respect of goods purchased by them for official use only. 73. MYANMAR. The Embassy of the Republic of the Myanmar in India. (Restricted to sale of goods from bonded stocks). The Diplomatic Officers (including their spouses) of the Embassy of the Union of Myanmar in India. (sale of petrol only). 74. NAMIBIA. The Namibian High Commission on the purchase made by its diplomats for official as well as for personal use. ----- Serial Number List of organisations which can claim refund 75. NEPAL. The Royal Nepalese Embassy in India, and The Diplomatic Officers (including their spouses) of the Royal Nepalese Embassy in India. 76. NETHERLANDS. The Royal Netherlands Embassy in India. The Diplomatic Officers (including their spouses) of the Royal Netherlands Embassy in India. 77. NICARAGUA. The Embassy of Nicaragua on all its official purchases as well as the purchases made by its officials for their personal use. 78. NIGERIA. H.E. the High Commission of the Federal Republic of Nigeria in India. The High Commission for the Federal Republic of Nigeria. The Diplomatic Officers of the High Commission for the Federal Republic of Nigeria in India. 79. NORWAY. H.E. the Norwegian Ambassador in India. The Royal Norwegian Embassy in India. The Diplomatic Officers (including their spouses) of the Royal Norwegian Embassy in India. 80. OMAN. The Embassy of Sultanate of Oman and its Diplomatic Officers. 81. PAKISTAN. The Embassy of Pakistan in India. The Diplomatic Officers (including their spouses) of the Embassy of Pakistan in India. 82. PANAMA. The Embassy of Panama and its Diplomatic Officers in respect of purchases made from bonded stores only. 83. PHILIPPINES. H.E. the Ambassador of the Philippines in India. The Embassy of Philippines in India, and The Diplomatic Officers (including their spouses) of the Embassy of the Philippines in India. 84. PLO. The Embassy of the Palestine Liberation Organisation (for sales intended for official use). The Diplomatic Officers (including their spouses) of the Embassy of the Palestine Liberation Organisation (for sales intended for personal use). 85. POLAND. The Embassy of the Polish Peoples Republic and their Diplomatic Officers. ----- Serial Number List of organisations which can claim refund 86. PORTUGAL. The Embassy of Portugal in India. The Diplomatic Officers (including their spouses) of the Embassy of Portugal in India (for sales intended for their personal use). 87. QATAR. The Embassy of the State of Qatar. The Diplomatic Officers of the Embassy of the State of Qatar, and their spouses for sales intended for their personal use. 88. ROMANIA. H.E. the Ambassador of the Socialist Republic of Romania in India. The Embassy of the Socialist Republic of Romania in India. The Diplomatic Officers (including their spouses) of the Embassy of the Socialist Republic of Romania. 89. RUSSIA. The Embassy of the Russian Federation on the purchases made by the Diplomats for official and personal use. 90. RWANDA. The Embassy of Republic of Rwanda on the purchases made by its diplomatic and administrative/technical personnel for official as well as personal use. 91. SAHRAWI ARAB DEMOCRATIC REPUBLIC. The Embassy of Sahrawi Arab Democratic Republic. The Diplomatic Officers of the Embassy of Sahrawi Arab Democratic Republic. 92. SAUDI ARABIA. H.E. the Ambassador of Saudi Arabia in India. The Embassy of Saudi Arabia in India. The Diplomatic Officers (including their spouses) of the Embassy of Saudi Arabia in India. 93. SENEGAL. The Embassy of Republic of the Senegal in India (for sales intended for the official use of the Embassy). The Diplomatic Officers (including their spouses) the Embassy of the Republic of Senegal in India (for sales intended for personal use). 94. SINGAPORE. The High Commission for Singapore. Their Diplomatic Officers. 95. SLOVAK REPUBLIC. The Embassy of Slovak Republic on the purchases made by its diplomats for official as well as for personal use of their officials. ----- Serial Number List of organisations which can claim refund 96. SOMALIA. The Embassy of Somalia in India (for sales intended for official use). The Diplomatic Officers (including their spouses) of the Embassy of the Somali in India (for sales intended for their personal use). 97. SOUTH AFRICA. The Embassy of South Africa on the purchases made by its diplomats for official as well as for personal use. 98. SOUTH WEST AFRICAN PEOPLES ORGANISATION (SWAPO). The Embassy of South West African Peoples Organisation (SWAPO) – on all its official purchases and the purchases made by its officials for their personal use. 99. SPAIN. H.E. the Ambassador of Spain in India. The Embassy of Spain in India. The Diplomatic Officers of the Embassy of Spain in India. 100. SRI LANKA. The High Commission for the Democratic Socialist Republic of Sri Lanka for purchases made for its official use as well as by diplomats. 101. SUDAN. The Embassy of Democratic Republic of Sudan in India. The Diplomatic Officers (including their spouses) of the Embassy of the Democratic Republic of Sudan in India. (Exemption extended to purchases from places other than bonded stocks). 102. SURINAME. The Embassy of Republic of Suriname on the purchases made for official use as well as personal use of the diplomats. 103. SWEDEN. The Royal Swedish Embassy in India (for its official purchases). The Diplomatic Officers of the Royal Swedish Embassy in India (for their personal use). 104. SWITZERLAND. The Embassy of Switzerland on the purchases made by its diplomats for official as well as for personal use of their officials. 105. SYRIA. The Embassy of the Syrian Arab Republic and their Diplomatic Officers. 106. THAILAND. The Royal Thai Embassy in India. The Diplomatic Officers (including their spouses) of the Royal Thai Embassy in India. ----- Serial Number List of organisations which can claim refund 107. TRINIDAD. The High Commission for Trinidad and Tobago in India. The members of the Diplomatic Staff of the said High Commission. (Exemption restricted to (i) sale intended for the official use of the Commission and (ii) sale intended for personal use). 108. TUNISIA. The Embassy of Tunisia on the purchases made by its Diplomats for official as well as personal use. 109. TURKEY. The Embassy of Turkey on the purchases made by its diplomats for official as well as for personal use. 110. U.A.E. The Embassy of the United Arab Emirates, for its official use. The Diplomatic Officers of the Embassy of the United Arab Emirates, and their spouses for sales intended for their personal use. 111. UGANDA. The High Commission for the Republic of Uganda in India. The Diplomatic officers (including their spouses) of the High Commission for the Republic of Uganda in India. 112. UKRAINE. The Embassy of Ukraine on the purchases made by its diplomats for official as well as for personal use. 113. UNITED NATIONS DEVELOPMENT PROGRAMME. 114. The Regional Office for India, Nepal, Ceylon, Iran, Afghanistan and Pakistan of THE UNITED NATIONS ECONOMIC COMMISSION FOR ASIA and Far East (Division of Social Affairs). 115. UNITED NATIONS EDUCATION SCIENTIFIC AND CULTURAL ORGANISATION. 116. UNITED NATIONS EDUCATIONAL SCIENTIFIC AND CULTURAL ORGANISATION RESEARCH CENTRE ON SOCIAL AND ECONOMIC DEVELOPMENT IN SOUTHERN ASIA. 117. UNITED NATIONS FOOD AND AGRICULTURAL ORGANISATION. 118. UNITED NATIONS HIGH COMMISSION FOR REFUGEES. (Exemption for official use only). 119. UNITED NATIONS INFORMATION CENTRE. 120. UNITED NATIONS INTERNATIONAL CHILDREN'S EMERGENCY FUND. 121. UNITED NATIONS MILITARY OBSERVERS GROUP IN INDIA AND PAKISTAN. 122. UNITED NATIONS OFFICE FOR POPULATION STUDIES. ----- Serial Number List of organisations which can claim refund 123. (A) The Regional Office of the UNITED NATIONS WORLD HEALTH ORGANISATION for South East Asia, (for sales intended for official use). (B) The Regional Director (including his spouses) of the United Nations World Health Organisation for South East Asia, (for sales intended for personal use). 124. UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT MISSION. United States Agency for International Development Mission and Employees other than the locally recruited staff of the United States Agency for International Development Mission. 125. URUGUAY. H.E. the Ambassador of the Oriental Republic of Uruguay in India. The Embassy of the Oriental Republic of Uruguay in India. The Diplomatic Officers (including their spouses) of the Oriental Republic of Uruguay in India. 126. U.S.A. The Embassy of the U.S.A. in India. H.E. the Ambassador of the U.S.A. in India. The Diplomatic Officers (including their spouses and dependents) of the Embassy of U.S.A. in India. 127. RUSSIAN FEDERATION. H.E. the Ambassador of the Russian Federation in India. The Embassy of the Russian Federation in India. The Diplomatic Officers of the Embassy of Russian Federation in India. 128. UZBEKISTAN. The Embassy of Republic of Uzbekistan on the purchases made by its diplomats for official as well as for personal use. 129. VIETNAM (DEMOCRATIC REPUBLIC). H.E. the Ambassador of the Democratic Republic of Vietnam in India. The Embassy of the Democratic Republic of Vietnam in India. The Diplomatic Officers (including their spouses) of the Embassy of the Democratic Republic of Vietnam in India. 130. VIETNAM (REPUBLIC). The Counsel General of the Republic of Vietnam in India. The Consulate General of the Republic of Vietnam in India. The Consular Officer of the Consulate General of the Republic of Vietnam in India. 131. VENEZUELA. The Embassy of Venezuela in India. The Diplomatic Officers (including their spouses) of the Embassy of Venezuela in India. ----- Serial Number List of organisations which can claim refund 132. YEMEN. The Embassy of the Peoples Democratic Republic of Yemen in India. The Diplomatic Officers (including their spouses) of the Embassy of Peoples Democratic Republic of Yemen in India. 133. YUGOSLAVIA. The Embassy of the Socialist Federal Republic of Yugoslavia in India. The Diplomatic Officers (including their spouses) of the Embassy of Federal Republic of Yugoslavia in India. 134. ZAIRE. H.E. the Ambassador of the Republic of Zaire in India. The Embassy of the Republic of Zaire in India. The Diplomatic Officers (including their spouses) of the Embassy of the Republic of Zaire in India (exemption restricted to goods from bonded stores only). 135. ZAMBIA. The High Commission of Zambia in India (for sales intended for official use). The Diplomatic Officers (including their spouses) of the Zambian High Commission in India (for sales intended for personal use), (exemption is restricted to goods manufactured or produced in India and not imported from out of India). 136. ZIMBABWE. The Zimbabwe High Commission for its official purchases only upon certification of the Head of Mission Charged Affairs. –––––––– -----

23-Jun-2005

28

The Special Economic Zones Act, 2005

https://www.indiacode.nic.in/bitstream/123456789/2042/7/A2005-28.pdf

central

# THE SPECIAL ECONOMIC ZONES ACT, 2005 __________________ # ARRANGEMENT OF SECTIONS __________________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II ESTABLISHMENT OF SPECIAL ECONOMIC ZONE 3. Procedure for making proposal to establish Special Economic Zone. 4. Establishment of Special Economic Zone and approval and authorisation to operate it to, Developer. 5. Guidelines for notifying Special Economic Zone. 6. Processing and non-processing areas. 7. Exemption from taxes, duties or cess. CHAPTER III CONSTITUTION OF BOARD OF APPROVAL 8. Constitution of Board of Approval. 9. Duties, Powers and functions of Board. 10. Suspension of letter of approval and transfer of Special Economic Zone in certain cases. CHAPTER IV DEVELOPMENT COMMISSIONER 11. Development Commissioner. 12. Functions of Development Commissioner. CHAPTER V SINGLE WINDOW CLEARANCE 13. Constitution of Approval Committee. 14. Powers and functions of Approval Committee. 15. Setting up of Unit. 16. Cancellation of letter of approval to entrepreneur. 17. Setting up and operation of Offshore Banking Unit. 1 ----- SECTIONS 18. Setting up of International Financial Services Centre. 19. Single application form, return, etc. 20. Agency to inspect. 21. Single enforcement officer or agency for notified offences. 22. Investigation, inspection, search or seizure. 23. Designated Courts to try suits and notified offences. 24. Appeal to High Court. 25. Offences by companies. CHAPTE VI SPECIAL FISCAL PROVISIONS FOR SPECIAL ECONOMIC ZONES 26. Exemptions, drawbacks and concessions to every Developer and entrepreneur. 27. Provisions of Income-tax Act, 1961 to apply with certain modification in relation to Developers and entrepreneurs. 28. Duration of goods or services in Special Economic Zones. 29. Transfer of ownership and removal of goods. 30. Domestic clearance by Units. CHAPTER VII SPECIAL ECONOMIC ZONE AUTHORITY 31. Constitution of Authority. 32. Officers of Authority and other staff. 33. Special provision for transfer of officers or other employees to Authority. 34. Functions of Authority. 35. Grants and loans by Central Government. 36. Constitution of Fund and its application. 37. Accounts and audit. 38. Directions by Central Government. 39. Returns and reports. 40. Power to supersede Authority. 41. Members, officers and other employees of Authority to be public servants. CHAPTER VIII MISCELLANEOUS 42. Reference of dispute. 43. Limitation. 44. Applicability of provisions of this Act to existing Special Economic Zones. 45. Person to whom a communication may be sent under this Act. 46. Identity Card. 47. Authorities responsible for administration. 48. Protection of action taken in good faith. 49. Power to modify provisions of this Act or other enactments in relation to Special Economic Zones. 2 ----- SECTIONS 50. Power of State Government to grant exemption. 51. Act to have overriding effect. 52. Certain provisions not to apply. 53. Special Economic Zones to be ports, airports, inland container depots, land stations, etc., in certain cases. 54. Amendment to First Schedule. 55. Power to make rules. 56. Power to remove difficulties. 57. Amendment of certain enactments. 58. Savings. THE FIRST SCHEDULE. THE SECOND SCHEDULE. THE THIRD SCHEDULE. 3 ----- # THE SPECIAL ECONOMIC ZONES ACT, 2005 ACT NO. 28 OF 2005 [23rd June, 2005.] # An Act to provide for the establishment, development and management of the Special Economic Zones for the promotion of exports and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-sixth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Special Economic Zones** Act, 2005. (2) It extends to the whole of India. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “appointed day” with reference to a Special Economic Zone means the date on which the Special Economic Zone is notified by the Central Government under sub-section (1) of section 4; (b) “Approval Committee” means an Approval Committee constituted under sub-section (1) of section 13; (c) “authorised operations” means operations which may be authorised under sub-section (2) of section 4 and sub-section (9) of section 15; (d) “Authority” means a Special Economic Zone Authority constituted under sub-section (1) of section 31; (e) “Board” means the Board of Approval constituted under sub-section (1) of section 8; (f) “Co-Developer” means a person who, or a State Government which, has been granted by the Central Government a letter of approval under sub-section (12) of section 3; (g) “Developer” means a person who, or a State Government which, has been granted by the Central Government a letter of approval under sub-section (10) of section 3 and includes an Authority and a Co-Developer; (h) “Development Commissioner” means the Development Commissioner appointed for one or more Special Economic Zones under sub-section (1) of section 11; (i) “Domestic Tariff Area” means the whole of India (including the territorial waters and continental shelf) but does not include the areas of the Special Economic Zones; (j) “entrepreneur” means a person who has been granted a letter of approval by the Development Commissioner under sub-section (9) of section 15; (k) “existing Special Economic Zone” means every Special Economic Zone which is in existence on or before the commencement of this Act; 1. 10th February, 2006 (ss. 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 25, 26, 27, 28, 29, 30, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57 and 58), vide Notification No. S.O. 196(E), dated 10th February, 2006, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 1st October, 2008 (ss. 31, 32, 33, 34, 35, 36, 37, 38, 39, 40 and 41), vide Notification No.S.O.2320(E), dated 1st October, 2008, _see Gazette of India, Extraordinary, Part II, sec. 3 (ii)._ 13th January, 2010 (ss. 20, 21 and 22), _vide Notification No. S.O. 75(E), dated 13th January, 2010,_ _see Gazette of India,_ Extraordinary, Part II, sec. 3(ii). 4 ----- (l) “existing Unit” means every Unit which has been set up on or before the commencement of this Act in an existing Special Economic Zone; (m) “export” means— (i) taking goods, or providing services, out of India, from a Special Economic Zone, by land, sea or air or by any other mode, whether physical or otherwise; or (ii) supplying goods, or providing services, from the Domestic Tariff Area to a Unit or Developer; or (iii) supplying goods, or providing services, from one Unit to another Unit or Developer, in the same or different Special Economic Zone; (n) “Free Trade and Warehousing Zone” means a Special Economic Zone wherein mainly trading and warehousing and other activities related thereto are carried on; (o) “import” means— (i) bringing goods or receiving services, in a Special Economic Zone, by a Unit or Developer from a place outside India by land, sea or air or by any other mode, whether physical or otherwise; or (ii) receiving goods, or services by a Unit or Developer from another Unit or Developer of the same Special Economic Zone or a different Special Economic Zone; (p) “infrastructure facilities” means industrial, commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone or such other facilities which may be prescribed; (q) “International Financial Services Centre” means an International Financial Services Centre which has been approved by the Central Government under sub-section (1) of section 18; (r) “manufacture” means to make, produce, fabricate, assemble, process or bring into existence, by hand or by machine, a new product having a distinctive name, character or use and shall include processes such as refrigeration, cutting, polishing, blending, repair, remaking, re-engineering and includes agriculture, aquaculture, animal husbandry, floriculture, horticulture, pisciculture, poultry, sericulture, viticulture and mining; (s) “notification” means a notification published in the Official Gazette and the expression “notify” shall be construed accordingly; (t) “notified offences” means the offences specified as such under sub-section (1) of section 21; (u) “Offshore Banking Unit” means a branch of a bank located in a Special Economic Zone and which has obtained the permission under clause (a) of sub-section (1) of section 23 of the Banking Regulation Act, 1949 (10 of 1949); (v) “person” includes an individual, whether resident in India or outside India, a Hindu undivided family, co-operative society, a company, whether incorporated in India or outside India, a firm, proprietary concern, or an association of persons or body of individuals, whether incorporated or not, local authority [1][trust or any entity as may be notified by the Central Government] and any agency, office or branch owned or controlled by such individual, Hindu undivided family, co-operative, association, body, [2][authority, company, trust or entity]; (w) “prescribed” means prescribed by rules made by the Central Government under this Act; (x) “Reserve Bank” means the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934); (y) “Schedule” means Schedules to this Act; 1. Ins. by Act 8 of 2019, s. 2 (w.e.f. 2-3-2019). 2. Subs. by s. 2, ibid., for “authority or company” (w.e.f. 2-3-2019). 5 ----- (z) “services” means such tradable services which,— (i) are covered under the General Agreement on Trade in Services annexed as IB to the Agreement establishing the World Trade Organisation concluded at Marrakesh on the 15th day of April, 1994; (ii) may be prescribed by the Central Government for the purposes of this Act; and (iii) earn foreign exchange; (za) “Special Economic Zone” means each Special Economic Zone notified under the proviso to sub-section (4) of section 3 and sub-section (1) of section 4 (including Free Trade and Warehousing Zone) and includes an existing Special Economic Zone; (zb) “State Government” means a State Government of the State in which a Special Economic Zone is established or proposed to be established; (zc) “Unit” means a Unit set up by an entrepreneur in a Special Economic Zone and includes an existing Unit, an Offshore Banking Unit and a Unit in an International Financial Services Centre, whether established before or established after the commencement of this Act; (zd) all other words and expressions used and not defined in this Act but defined in the Central Excise Act, 1944 (1 of 1944), the Industries (Development and Regulation) Act, 1951 (65 of 1951), the Income-tax Act, 1961 (43 of 1961), the Customs Act, 1962 (52 of 1962) and the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992) shall have the meanings respectively assigned to them in those Acts. CHAPTER II ESTABLISHMENT OF SPECIAL ECONOMIC ZONE **3. Procedure for making proposal to establish Special Economic Zone.—(1) A Special Economic** Zone may be established under this Act, either jointly or severally by the Central Government, State Government, or any person for manufacture of goods or rendering services or for both or as a Free Trade and Warehousing Zone. (2) Any person, who intends to set up a Special Economic Zone, may, after identifying the area, make a proposal to the State Government concerned for the purpose of setting up the Special Economic Zone. (3) Notwithstanding anything contained in sub-section (2), any person, who intends to set up a Special Economic Zone, may, after identifying the area, at his option, make a proposal directly to the Board for the purpose of setting up the Special Economic Zone: Provided that where such a proposal has been received directly from a person under this sub-section, the Board may grant approval and after receipt of such approval, the person concerned shall obtain the concurrence of the State Government within the period, as may be prescribed. (4) In case a State Government intends to set up a Special Economic Zone, it may after identifying the area, forward the proposal directly to the Board for the purpose of setting up the Special Economic Zone: Provided that the Central Government may,— (a) after consulting the State Government concerned; (b) without referring the proposal for setting up the Special Economic Zone to the Board; and (c) after identifying the area, _suo motu set up and notify the Special Economic Zone._ (5) Every proposal under sub-sections (2) to (4) shall be made in such form, and, manner, containing such particulars as may be prescribed. (6) The State Government may, on receipt of the proposal made under sub-section (2), forward the same together with its recommendations to the Board within such period as may be prescribed. 6 ----- (7) Without prejudice to the provisions contained in sub-section (8), the Board may, after receipt of the proposal under sub-sections (2) to (4), approve the proposal subject to such terms and conditions as it may deem fit to impose, or modify or reject the proposal. (8) The Central Government may prescribe the following requirements for establishment of a Special Economic Zone, namely:— (a) the minimum area of land and other terms and conditions subject to which the Board shall approve, modify or reject any proposal received by it under sub-sections (2) to (4); and (b) the terms and conditions, subject to which the Developer shall undertake the authorised operations and his obligations and entitlements: Provided that different minimum area of land and other terms and conditions referred to in clause (a) may be prescribed by the Central Government for a class or classes of Special Economic Zones. (9) If the Board,— (a) approves without any modification the proposal received under sub-sections (2) to (4), it shall communicate the same to the Central Government; (b) approves with modifications the proposal received under sub-sections (2) to (4), it shall, communicate such modifications to the person or the State Government concerned and if such modifications have been accepted by such person or State Government, the Board shall communicate the approval to the Central Government; (c) rejects the proposal received under sub-sections (2) to (4), it shall record the reasons therefor and communicate the rejection to the Central Government which shall intimate to the State Government or the person concerned. (10) The Central Government shall, on receipt of communication under clause (a) or clause (b) of sub-section (9), grant, within such time as may be prescribed, a letter of approval on such terms and conditions and obligations and entitlements as may be approved by the Board, to the Developer, being the person or the State Government concerned: Provided that the Central Government may, on the basis of approval of the Board, approve more than one Developer in a Special Economic Zone in cases where one Developer does not have in his possession the minimum area of contiguous land, as may be prescribed, for setting up a Special Economic Zone and in such cases, each Developer shall be considered as a Developer in respect of the land in his possession. (11) Any person who, or a State Government which, intends to provide any infrastructure facilities in the identified area referred to in sub-sections (2) to (4), or undertake any authorised operation may, after entering into an agreement with the Developer referred to in sub-section (10), make a proposal for the same to the Board for its approval and the provisions of sub-section (5) and sub-sections (7) to (10) shall, as far as may be, apply to the said proposal made by such person or the State Government. (12) Every person or the State Government referred to in sub-section (11), whose proposal has been approved by the Board and who, or which, has been granted letter of approval by the Central Government, shall be considered as a Co-Developer of the Special Economic Zone. (13) Subject to the provisions of this section and the letter of approval granted to a Developer, the Developer may allocate space or built up area or provide infrastructure services to the approved Units in accordance with the agreement entered into by him with the entrepreneurs of such Units. **4. Establishment of Special Economic Zone and approval and authorisation to operate it to,** **Developer.—(1) The Developer shall, after the grant of letter of approval under sub-section (10) of** section 3, submit the exact particulars of the identified area referred to in sub-sections (2) to (4) of that section, to the Central Government and thereupon that Government may, after satisfying that the requirements, under sub-section (8) of section 3 and other requirements, as may be prescribed, are fulfilled, notify the specifically identified area in the State as a Special Economic Zone: 7 ----- Provided that an existing Special Economic Zone shall be deemed to have been notified and established in accordance with the provisions of this Act and the provisions of this Act shall, as far as may be, apply to such Zone accordingly: Provided further that the Central Government may, after notifying the Special Economic Zone, if it considers appropriate, notify subsequently any additional area to be included as a part of that Special Economic Zone. (2) After the appointed day, the Board may, authorise the Developer to undertake in a Special Economic Zone, such operations which the Central Government may authorise. **5. Guidelines for notifying Special Economic Zone.—The Central Government, while notifying** any area as a Special Economic Zone or an additional area to be included in the Special Economic Zone and discharging its functions under this Act, shall be guided by the following, namely:— (a) generation of additional economic activity; (b) promotion of exports of goods and services; (c) promotion of investment from domestic and foreign sources; (d) creation of employment opportunities; (e) development of infrastructure facilities; and (f) maintenance of sovereignty and integrity of India, the security of the State and friendly relations with foreign States. **6. Processing and non-processing areas.—The areas falling within the Special Economic Zones** may be demarcated by the Central Government or any authority specified by it as— (a) the processing area for setting up Units for activities, being the manufacture of goods, or rendering services; or (b) the area exclusively for trading or warehousing purposes; or (c) the non-processing areas for activities other than those specified under clause (a) or clause (b). **7. Exemption from taxes, duties or cess.—Any goods or services exported out of, or imported into,** or procured from the Domestic Tariff Area by,— (i) a Unit in a Special Economic Zone; or (ii) a Developer, shall, subject to such terms, conditions and limitations, as may be prescribed, be exempt from the payment of taxes, duties or cess under all enactments specified in the First Schedule. CHAPTER III CONSTITUTION OF BOARD OF APPROVAL **8. Constitution of Board of Approval.—(1) The Central Government shall, within fifteen days of** the commencement of this Act, by notification, constitute, for the purposes of this Act, a Board to be called the Board of Approval. (2) The Board shall consist of— (a) an officer not below the rank of an Additional Secretary to the Government of India in the Ministry or Department of the Central Government dealing with commerce—Chairperson, ex officio; (b) two officers, not below the rank of a Joint Secretary to the Government of India, to be nominated by the Central Government to represent the Ministry or Department of the Central Government dealing with revenue—Members, ex officio; (c) one officer not below the rank of a Joint Secretary to the Government of India to be nominated by the Central Government to represent the Ministry or Department of the Central Government dealing with economic affairs (financial services) —Member, ex officio; 8 ----- (d) such number of officers, not exceeding ten, not below the rank of the Joint Secretary to the Government of India, to be nominated by the Central Government to represent the Ministries or Departments of the Central Government dealing with commerce, industrial policy and promotion, science and technology, small scale industries and agro and rural industries, home affairs, defence, environment and forests, law, overseas Indian affairs and urban development—Members, ex officio; (e) a nominee of the State Government concerned—Member, ex officio; (f) the Director General of Foreign Trade or his nominee—Member, ex officio; (g) the Development Commissioner concerned—Member, ex officio; (h) a Professor in the Indian Institute of Management, being a society registered under the Societies Registration Act, 1860 (21 of 1860) or the Indian Institute of Foreign Trade, being a society registered under the Societies Registration Act, 1860, as may be, nominated by the Central Government—Member, ex officio; (i) an officer not below the rank of Deputy Secretary to the Government of India dealing with the Special Economic Zones in the Ministry or Department of the Central Government, dealing with commerce to be nominated by the Central Government—Member-Secretary, ex officio: Provided that the member, being the Joint Secretary, nominated under clauses (b) to (d) of this sub-section may, if he is unable to attend the meeting of the Board, authorise any other officer to attend the meeting of the Board on his behalf. (3) The term of office of an ex officio Member shall come to an end as soon as he ceases to hold the office by virtue of which he was so nominated. (4) For the purposes of performing its functions, the Board may co-opt as members, such number of persons as it deems fit, who have special knowledge of, and practical experience in, matters relating to, or relevant to activity connected with the Special Economic Zones and any such person shall have the right to take part in the discussions of the Board but shall not be counted for the quorum and shall not be a member for any other purpose and such person shall be entitled to receive such allowances or fees, as the case may be, fixed by the Board. (5) The Board shall meet at such times and places as may be appointed by it and shall have the power to regulate its own procedure. (6) One-third of the total Members of the Board shall form a quorum, and all the acts of the Board shall be decided by a general consensus of the Members present. (7) No act or proceeding of the Board shall be called in question on the ground merely of existence of any vacancy in, or any defect in the constitution of, the Board. (8) All orders and decisions of the Board and all other instruments issued by it shall be authenticated by the signature of the Member-Secretary, or any other Member as may be authorised by the Board in this behalf. **9. Duties, powers and functions of Board.—(1) Subject to the provisions of this Act, the Board** shall have the duty to promote and ensure orderly development of the Special Economic Zones. (2) Without prejudice to the generality of the provisions contained in sub-section (1), the powers and functions of the Board shall include— (a) granting of approval or rejecting proposal or modifying such proposals for establishment of the Special Economic Zones; (b) granting approval of authorised operations to be carried out in the Special Economic Zones by the Developer; (c) granting of approval to the Developers or Units (other than the Developers or the Units which are exempt from obtaining approval under any law or by the Central Government) for foreign collaborations and foreign direct investments (including investments by a person resident outside India), in the Special Economic Zone for its development, operation and maintenance; 9 ----- (d) granting of approval or rejecting of proposal for providing infrastructure facilities in a Special Economic Zone or modifying such proposals; (e) granting, notwithstanding anything contained in the Industries (Development and Regulation) Act, 1951 (65 of 1951), a licence to an industrial undertaking referred to in clause (d) of section 3 of that Act, if such undertaking is established, as a whole or part thereof, or proposed to be established, in a Special Economic Zone; (f) suspension of the letter of approval granted to a Developer and appointment of an Administrator under sub-section (1) of section 10; (g) disposing of appeals preferred under sub-section (4) of section 15; (h) disposing of appeals preferred under sub-section (4) of section 16; (i) performing such other functions as may be assigned to it by the Central Government. (3) The Board may, if so required for the purposes of this Act or any other law for the time being in force relating to Special Economic Zones, by notification, decide as to whether a particular activity constitutes manufacture as defined in clause (r) of section 2 and such decision of the Board shall be binding on all Ministries and Departments of the Central Government. (4) The Board may delegate such powers and functions as it may deem fit to one or more Development Commissioners for effective and proper discharge of the functions of the Board. (5) Without prejudice to the foregoing provisions of this Act, the Board shall, in exercise of its powers or the performance of its functions under this Act, be bound by such directions on questions of policy as the Central Government may give in writing to it from time to time. (6) The decision of the Central Government whether a question is one of policy or not shall be final. **10. Suspension of letter of approval and transfer of Special Economic Zone in certain cases.—** (1) If, at any time, the Board is of the opinion that a Developer— (a) is unable to discharge the functions or perform the duties imposed on him by or under the provisions of this Act or rules made thereunder; or (b) has persistently defaulted in complying with any direction given by the Board under this Act; or (c) has violated the terms and conditions of the letter of approval; or (d) whose financial position is such that he is unable to fully and efficiently discharge the duties and obligations imposed on him by the letter of approval, and the circumstances exist which render it necessary for it in public interest so to do, the Board may, on application, or with the consent of the Developer, or otherwise, for reasons to be recorded in writing, suspend the letter of approval, granted to the Developer for a whole or part of his area established as Special Economic Zone, for a period not exceeding one year and appoint an Administrator to discharge the functions of the Developer in accordance with the terms and conditions of the letter of approval and manage the Special Economic Zone accordingly. (2) Consequent upon appointment of an Administrator, the management of the Special Economic Zone of the Developer referred to in sub-section (1) shall vest in the Administrator. (3) No letter of approval shall be suspended under sub-section (1) unless the Board has given to the Developer not less than three months' notice, in writing, stating the grounds on which it proposes to suspend the letter of approval, and has considered any cause shown by the Developer within the period of that notice, against the proposed suspension. (4) The Board may, instead of suspending the letter of approval under sub-section (1), permit it to remain in force subject to such further terms and conditions as it thinks fit to impose, and any further terms or conditions so imposed shall be binding upon and be complied with by the Developer and shall be of like force and effect as if they were contained in the letter of approval. 10 ----- (5) In case the Board suspends a letter of approval under this section, it shall serve a notice of suspension upon the Developer and fix a date on which the suspension shall take effect. (6) Upon suspension of the letter of approval under sub-section (1), the Special Economic Zone of the Developer referred to in sub-section (5) shall vest in the Administrator under sub-section (2) for a period not exceeding one year or up to the date on which the letter of approval for such Special Economic Zone is transferred, whichever is earlier, in accordance with the provisions contained in sub-sections (7) and (9), as the case may be. (7) Where the Board has given notice for suspension of letter of approval under sub-section (5), the Developer may, after prior approval of the Board, transfer his letter of approval to any person who is found eligible by the Board for grant of such approval. (8) If at any time, it appears to the Board that the purpose of the order appointing the Administrator has been fulfilled or that for any reason it is undesirable that the order of appointment should remain in force, the Board may cancel the order and thereupon the Administrator shall be divested of the management of the Special Economic Zone which shall, unless otherwise directed by the Board, again vest in the person, being the Developer, in whom it was vested immediately prior to the date of appointment of the Administrator. (9) Where the Board suspends the letter of approval, under this section, in respect of any Developer, the following provisions shall apply, namely:— (a) the Board shall invite applications for transferring the letter of approval of the Developer, whose approval has been suspended and select the person or persons, in accordance with the procedure as may be prescribed, to whom the letter of approval of the Developer in the Special Economic Zone may be transferred; (b) upon selection of person or persons under sub-clause (a), the Board may, by notice in writing, require the Developer to transfer his letter of approval in a Special Economic Zone to the person or persons so selected and thereupon the Developer shall transfer his interests, rights and liabilities in the Special Economic Zone to any of the persons (hereafter in this section referred to as the “transferee”) who has been selected by the Board on such terms and conditions and consideration as may be agreed upon between the Developer and the transferee; (c) all the rights, duties, obligations and liabilities of the Developer, on and from the date of suspension of letter of approval or on and from the date, if earlier, on which his letter of approval in the Special Economic Zone of the Developer has been transferred to the transferee, shall cease absolutely except for any liabilities which have accrued prior to that date; (d) the Board may make such interim arrangements in regard to the operation of the Special Economic Zone as may be considered appropriate; (e) the Administrator shall exercise such powers and discharge such functions as the Board may direct. (10) The Board may, in order to promote export or to protect the interest of Units or in the public interest, issue such directions or formulate such scheme as it may consider necessary for operation of the Special Economic Zone. CHAPTER IV DEVELOPMENT COMMISSIONER **11. Development Commissioner.—(1) The Central Government may appoint any of its officers not** below the rank of Deputy Secretary to the Government of India as the Development Commissioner of one or more Special Economic Zones. (2) The Central Government may appoint such officers and other employees as it considers necessary to assist the Development Commissioner in the performance of his functions in the Special Economic Zones established by a Developer (other than the Central Government) under this Act on such terms and conditions as it deems fit. 11 ----- (3) Every Development Commissioner, officer and other employee shall be entitled to such salary and allowances and subject to such terms and conditions of service in respect of leave, pension, provident fund and other matters as may, from time to time, be specified by the Central Government. **12. Functions of Development Commissioner.—(1) Every Development Commissioner shall take** all steps in order to discharge his functions under this Act to ensure speedy development of the Special Economic Zone and promotion of exports therefrom. (2) Without prejudice to the generality of the foregoing provisions, the Development Commissioner shall— (a) guide the entrepreneurs for setting up of Units in the Special Economic Zone; (b) ensure and take suitable steps for effective promotion of exports from the Special Economic Zone; (c) ensure proper co-ordination with the Central Government or State Government Departments concerned or agencies with respect to, or for the purposes, of clauses (a) and (b); (d) monitor the performance of the Developer and the Units in a Special Economic Zone; (e) discharge such other functions as may be assigned to him by the Central Government under this Act or any other law for the time being in force; and (f) discharge such other functions as may be delegated to him by the Board. (3) Every Development Commissioner shall be overall in-charge of the Special Economic Zone and shall exercise administrative control and supervision over the officers and employees appointed under sub-section (2) of section 11 (including the officials deputed to such Special Economic Zone) to discharge any of the functions under this Act. (4) Without prejudice to the provisions of sub-sections (1) to (3), every Development Commissioner shall discharge such functions and exercise such powers as may be delegated to him by a general or special order by the Central Government or the State Government concerned, as the case may be. (5) Every Development Commissioner may call for such information from a Developer or Unit from time to time as may be necessary to monitor the performance of the Developer or the Unit, as the case may be. (6) The Development Commissioner may delegate any or all of his powers or functions to any of the officers employed under him. CHAPTER V SINGLE WINDOW CLEARANCE **13. Constitution of Approval Committee.—(1) The Central Government shall,—** (a) in the case of existing Special Economic Zones, within six months from the date of commencement of this Act; (b) in case of other Special Economic Zones established after the commencement of this Act, within six months from the date of establishment of such Special Economic Zone, by notification, constitute a Committee for every Special Economic Zone, to be called the Approval Committee to exercise the powers and perform the functions specified in section 14. (2) Every Approval Committee shall consist of— (a) the Development Commissioner—Chairperson, ex officio; (b) two officers of the Central Government to be nominated by that Government—Members, _ex officio;_ (c) two officers of the Central Government to be nominated by that Government to represent the Ministry or Department dealing with revenue—Members, ex officio; 12 ----- (d) one officer of the Central Government to be nominated by that Government to represent the Ministry or Department dealing with economic affairs (financial services)—Member, ex officio; (e) two officers of the State Government concerned to be nominated by that State Government— Members, ex officio; (f) a representative of the Developer concerned—Special invitee. (3) For the purpose of exercising its powers and performing its functions, the Approval Committee may invite to its meetings, such persons as the Committee deems fit, whose assistance or advice it may consider necessary. (4) Every Approval Committee shall meet at such times and places as it considers necessary and shall have the power to regulate its own procedure. (5) One-half of the total Members of the Approval Committee shall form a quorum, and all the acts of the Approval Committee shall be decided by a general consensus of the Members present: Provided that in case the Approval Committee is unable to decide any matter by a general consensus, such matter shall stand referred to the Board of Approval for its decision. (6) No act of the Approval Committee shall be called in question on the ground merely of existence of any vacancy in, or any defect in the constitution of, the Approval Committee. (7) All orders and decisions of the Approval Committee and all other communications issued by it shall be authenticated by the signature of the Chairperson or any other member as may be authorised by the Approval Committee in this behalf. (8) The term of office of an _ex officio Member shall come to an end as soon as he ceases to hold_ office by virtue of which he was so nominated. **14. Powers and functions of Approval Committee.—(1) Every Approval Committee may discharge** the functions and exercise the powers in respect of the following matters, namely:— (a) approve the import or procurement of goods from the Domestic Tariff Area, in the Special Economic Zone for carrying on the authorised operations by a Developer; (b) approve the providing of services by a service provider, from outside India, or from the Domestic Tariff Area, for carrying on the authorised operations by the Developer, in the Special Economic Zone; (c) monitor the utilisation of goods or services or warehousing or trading in the Special Economic Zone; (d) approve, modify or reject proposals for setting up Units for manufacturing or rendering services or warehousing or trading in the Special Economic Zone [other than the grant of licence under clause (e) of sub-section (2) of section 9] in accordance with the provisions of sub-section (8) of section 15: Provided that where the Approval Committee is unable to decide whether a particular process constitutes manufacture or not it shall refer the same to the Board of Approval for decision; (e) allow, on receipt of approval under clause (c) of sub-section (2) of section 9, foreign collaborations and foreign direct investments (including investments by a person outside India) for setting up a Unit; (f) monitor and supervise compliance of conditions subject to which the letter of approval or permission, if any, has been granted to the Developer or entrepreneur; and (g) perform such other functions as may be entrusted to it by the Central Government or the State Government concerned, as the case may be. (2) The Approval Committee shall not discharge such functions and exercise such powers referred to in sub-section (1) in relation to a Developer, being the Central Government, as may be specified, by notification, by the Central Government: 13 ----- Provided that till such time, the Approval Committee is constituted, the concerned Development Commissioner shall discharge all functions and exercise all powers of the Approval Committee. **15. Setting up of Unit.—(1) Any person, who intends to set up a Unit for carrying on the authorised** operations in a Special Economic Zone, may submit a proposal to the Development Commissioner concerned in such form and manner containing such particulars as may be prescribed: Provided that an existing Unit shall be deemed to have been set up in accordance with the provisions of this Act and such Units shall not require approval under this Act. (2) On receipt of the proposal under sub-section (1), the Development Commissioner shall submit the same to the Approval Committee for its approval. (3) The Approval Committee may, either approve the proposal without modification, or approve the proposal with modifications subject to such terms and conditions as it may deem fit to impose, or reject the proposal in accordance with the provisions of sub-section (8): Provided that in case of modification or rejection of a proposal, the Approval Committee shall afford a reasonable opportunity of being heard to the person concerned and after recording the reasons, either modify or reject the proposal. (4) Any person aggrieved by an order of the Approval Committee, made under sub-section (3), may prefer an appeal to the Board within such time as may be prescribed. (5) No appeal shall be admitted if it is preferred after the expiry of the time prescribed therefor: Provided that an appeal may be admitted after the expiry of the period prescribed therefor if the appellant satisfies the Board that he had sufficient cause for not preferring the appeal within the prescribed time. (6) Every appeal made under sub-section (4) shall be in such form and shall be accompanied by a copy of the order appealed against and by such fees as may be prescribed. (7) The procedure for disposing of an appeal shall be such as may be prescribed: Provided that before disposing of an appeal, the appellant shall be given a reasonable opportunity of being heard. (8) The Central Government may prescribe,— (a) the requirements (including the period for which a Unit may be set up) subject to which the Approval Committee shall approve, modify or reject any proposal referred to in sub-section (3); (b) the terms and conditions, subject to which the Unit shall undertake the authorised operations and its obligations and entitlements. (9) The Development Commissioner may, after approval of the proposal referred to in sub-section (3), grant a letter of approval to the person concerned to set up a Unit and undertake such operations which the Development Commissioner may authorise and every such operation so authorised shall be mentioned in the letter of approval. **16. Cancellation of letter of approval to entrepreneur.—(1) The Approval Committee may, at any** time, if it has any reason or cause to believe that the entrepreneur has persistently contravened any of the terms and conditions or its obligations subject to which the letter of approval was granted to the entrepreneur, cancel the letter of approval: Provided that no such letter of approval shall be cancelled unless the entrepreneur has been afforded a reasonable opportunity of being heard. (2) Where the letter of approval has been cancelled under sub-section (1), the Unit shall not, from the date of such cancellation, be entitled to any exemption, concession, benefit or deduction available to it, being a Unit, under this Act. (3) Without prejudice to the provisions of this Act, the entrepreneur whose letter of approval has been cancelled under sub-section (1), shall remit, the exemption, concession, drawback and any other benefit 14 ----- availed by him in respect of the capital goods, finished goods lying in stock and unutilised raw materials relatable to his Unit, in such manner as may be prescribed. (4) Any person aggrieved by an order of the Approval Committee made under sub-section (1), may prefer an appeal to the Board within such time as may be prescribed. (5) No appeal shall be admitted if it is preferred after the expiry of the time prescribed therefor: Provided that an appeal may be admitted after the expiry of the period prescribed therefor if the appellant satisfies the Board that he had sufficient cause for not preferring the appeal within the prescribed time. (6) Every appeal made under sub-section (4) shall be in such form and shall be accompanied by a copy of the order appealed against and by such fees as may be prescribed. (7) The procedure for disposing of an appeal shall be such as may be prescribed: Provided that before disposing of an appeal, the appellant shall be given a reasonable opportunity of being heard. **17. Setting up and operation of Offshore Banking Unit.—(1) An application for setting up and** operation of an Offshore Banking Unit in a Special Economic Zone may be made to the Reserve Bank in such form and manner as may be prescribed. (2) On receipt of an application under sub-section (1), the Reserve Bank shall, if it is satisfied that the applicant fulfils all the conditions specified under sub-section (3), grant permission to such applicant for setting up and operation of an Offshore Banking Unit. (3) The Reserve Bank may, by notification, specify the terms and conditions subject to which an Offshore Banking Unit may be set up and operated in the Special Economic Zone. **18. Setting up of International Financial Services Centre.—(1) The Central Government may** approve the setting up of an International Financial Services Centre in a Special Economic Zone and prescribe the requirements for setting up and operation of such Centre: Provided that the Central Government shall approve only one International Financial Services Centre in a Special Economic Zone. (2) The Central Government may, subject to such guidelines as may be framed by the Reserve Bank, the Securities and Exchange Board of India, the Insurance Regulatory and Development Authority and such other concerned authorities, as it deems fit, prescribe the requirements for setting up and the terms and conditions of the operation of Units in an International Financial Services Centre. **19. Single application form, return, etc.—Notwithstanding anything contained in any other law for** the time being in force, the Central Government may, if required,— (a) prescribe a single application form for obtaining any licence, permission or registration or approval by a Developer, or an entrepreneur under one or more Central Acts; (b) authorise the Board, the Development Commissioner or Approval Committee, to exercise the powers of the Central Government on matters relating to the development of a Special Economic Zone or setting up and operation of Units; (c) prescribe a single form for furnishing returns or information by a Developer or an entrepreneur under one or more Central Acts. **20. Agency to inspect.—Notwithstanding anything contained in any other law for the time being in** force, the Central Government may, by notification, specify any officer or agency to carry out surveys or inspections for securing of compliance with the provisions of any Central Act by a Developer or an entrepreneur, as the case may be, and such officer or agency shall submit verification and compliance reports, in such manner and within such time as may be specified in the said notification. **21. Single enforcement officer or agency for notified offences.—(1) The Central Government may,** by notification, specify any act or omission made punishable under any Central Act, as notified offence for the purposes of this Act. 15 ----- (2) The Central Government may, by general or special order, authorise any officer or agency to be the enforcement officer or agency in respect of any notified offence or offences committed in a Special Economic Zone. (3) Every officer or agency authorised under sub-section (2) shall have all the corresponding powers of investigation, inspection, search or seizure as is provided under the relevant Central Act in respect of the notified offences. **22. Investigation, inspection, search or seizure.—The agency or officer, specified under section 20** or section 21, may, with prior intimation to the Development Commissioner concerned, carry out the investigation, inspection, search or seizure in the Special Economic Zone or in a Unit if such agency or officer has reasons to believe (reasons to be recorded in writing) that a notified offence has been committed or is likely to be committed in the Special Economic Zone: Provided that no investigation, inspection, search or seizure shall be carried out in a Special Economic Zone by any agency or officer other than those referred to in sub-section (2) or sub-section (3) of section 21 without prior approval of the Development Commissioner concerned: Provided further that any officer or agency, if so authorised by the Central Government, may carry out the investigation, inspection, search or seizure in the Special Economic Zone or Unit without prior intimation or approval of the Development Commissioner. **23. Designated Courts to try suits and notified offences.—(1) The State Government, in which the** Special Economic Zone is situated, may, with the concurrence of the Chief Justice of the High Court of that State, designate one or more courts— (a) to try all suits of a civil nature arising in the Special Economic Zone; and (b) to try notified offences committed in the Special Economic Zone. (2) No court, other than the court designated under sub-section (1), shall try any suit or conduct the trial of any notified offence referred to in that sub-section: Provided that the courts, in which any suit of a civil nature in a Special Economic Zone had been filed before the commencement of this Act, shall continue to try such suit after such commencement: Provided further that the courts, in which any trial of any notified offence is being conducted before the commencement of this Act, shall continue to conduct the trial of such offence after the commencement of this Act: Provided also that the courts competent to try any notified offence, before the commencement of this Act, shall conduct the trial in respect of such offence after the commencement of this Act until the courts have been designated under sub-section (1) and all such cases relating to such trials shall thereafter be transferred to such courts so designated which shall conduct the trial from the stage at which such cases were so transferred. **24. Appeal to High Court.—Any person aggrieved, by any decision or order of the court designated** under sub-section (1) of section 23, may file an appeal to the High Court within sixty days from the date of communication of the decision or order of the courts so designated to him on any question of fact or law arising out of such orders: Provided that the High Court may, if it is satisfied that the appellant was prevented by sufficient cause from filing an appeal within the said period, allow it to be filed within a further period not exceeding sixty days. _Explanation.—In section 23 and in this section “High Court” means the High Court of the State in_ which the Special Economic Zone is situated. **25. Offences by companies.—(1) Where an offence has been committed by a company, every** person, who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: 16 ----- Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided for the offence, if he has proved that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section,—_ (a) “company” means any body corporate and includes a firm or other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm. CHAPTER VI SPECIAL FISCAL PROVISIONS FOR SPECIAL ECONOMIC ZONES **26. Exemptions, drawbacks and concessions to every Developer and entrepreneur.—(1) Subject** to the provisions of sub-section (2), every Developer and the entrepreneur shall be entitled to the following exemptions, drawbacks and concessions, namely:— (a) exemption from any duty of customs, under the Customs Act, 1962 (52 of 1962) or the Customs Tariff Act, 1975 (51 of 1975) or any other law for the time being in force, on goods imported into, or services provided in, a Special Economic Zone or a Unit, to carry on the authorised operations by the Developer or entrepreneur; (b) exemption from any duty of customs, under the Customs Act, 1962 (52 of 1962) or the Customs Tariff Act, 1975 (51 of 1975) or any other law for the time being in force, on goods exported from, or services provided, from a Special Economic Zone or from a Unit, to any place outside India; (c) exemption from any duty of excise, under the Central Excise Act, 1944 (1 of 1944) or the Central Excise Tariff Act, 1985 (5 of 1986) or any other law for the time being in force, on goods brought from Domestic Tariff Area to a Special Economic Zone or Unit, to carry on the authorised operations by the Developer or entrepreneur; (d) drawback or such other benefits as may be admissible from time to time on goods brought or services provided from the Domestic Tariff Area into a Special Economic Zone or Unit or services provided in a Special Economic Zone or Unit by the service providers located outside India to carry on the authorised operations by the Developer or entrepreneur; (e) exemption from service tax under Chapter V of the Finance Act, 1994 (32 of 1994) on taxable services provided to a Developer or Unit to carry on the authorised operations in a Special Economic Zone; (f) exemption from the securities transaction tax leviable under section 98 of the Finance (No. 2) Act, 2004 (23 of 2004) in case the taxable securities transactions are entered into by a non-resident through the International Financial Services Centre; (g) exemption from the levy of taxes on the sale or purchase of goods other than newspapers under the Central Sales Tax Act, 1956 (74 of 1956) if such goods are meant to carry on the authorised operations by the Developer or entrepreneur. (2) The Central Government may prescribe, the manner in which, and, the terms and conditions subject to which, the exemptions, concessions, drawback or other benefits shall be granted to the Developer or entrepreneur under sub-section (1). **27. Provisions of Income-tax Act, 1961 to apply with certain modification in relation to** **Developers and entrepreneurs.—The provisions of the Income-tax Act, 1961 (43 of 1961), as in force** for the time being, shall apply to, or in relation to, the Developer or entrepreneur for carrying on the 17 ----- authorised operations in a Special Economic Zone or Unit subject to the modifications specified in the Second Schedule. **28. Duration of goods or services in Special Economic Zones.—The Central Government may** prescribe the period during which any goods brought into, or services provided in, any Unit or Special Economic Zone without payment of taxes, duties or cess shall remain or continue to be provided in such Unit or Special Economic Zone. **29. Transfer of ownership and removal of goods.—The transfer of ownership in any goods brought** into, or produced or manufactured in, any Unit or Special Economic Zone or removal thereof from such Unit or Zone shall be allowed, subject to such terms and conditions as the Central Government may prescribe. **30. Domestic clearance by Units.—Subject to the conditions specified in the rules made by the** Central Government in this behalf,— (a) any goods removed from a Special Economic Zone to the Domestic Tariff Area shall be chargeable to duties of customs including anti-dumping, countervailing and safeguard duties under the Customs Tariff Act, 1975 (51 of 1975), where applicable, as leviable on such goods when imported; and (b) the rate of duty and tariff valuation, if any, applicable to goods removed from a Special Economic Zone shall be at the rate and tariff valuation in force as on the date of such removal, and where such date is not ascertainable, on the date of payment of duty. CHAPTER VII SPECIAL ECONOMIC ZONE AUTHORITY **31. Constitution of Authority.— (1) The Central Government shall, by notification in the Official** Gazette, constitute, for every Special Economic Zone established by it before the commencement of this Act or which may be established after such commencement by the Central Government, an Authority to be called the ...... (name of the Special Economic Zone) Authority to exercise the powers conferred on, and discharge the functions assigned to, it under this Act: Provided that in respect of existing Special Economic Zones established by the Central Government, such Authority shall be constituted by the Central Government within six months from the date of commencement of this Act: Provided further that until such Authority is constituted, the person or the authority (including the Development Commissioner) exercising control over such existing Special Economic Zones shall continue to exercise such control over the Special Economic Zone till the Authority is constituted. (2) Every Authority shall be a body corporate by the name aforesaid, having perpetual succession and a common seal, with a power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to contract and shall, by the said name, sue and be sued. (3) The head office of every Authority shall be at such place as the Central Government may specify in the notification referred to in sub-section (1). (4) Any Authority may, with the previous approval of the Central Government, establish branch offices at other places in India. (5) Every Authority shall consist of— (a) the Development Commissioner of the Special Economic Zone over which the Authority exercises its jurisdiction—Chairperson, ex officio; (b) two officers of the Central Government to be nominated by that Government having knowledge of, or experience in, dealing with matters relating to Special Economic Zones—Members, _ex officio;_ (c) an officer of the Government of India in the Ministry or Department dealing with commerce on matters relating to Special Economic Zone—Member, ex officio; 18 ----- (d) not more than two persons, being entrepreneurs or their nominee, to be nominated by the Central Government—Members, ex officio; (6) The term of office of the Members of an Authority (other than _ex officio Members) and the_ manner of filling of vacancies shall be such as may be prescribed. (7) An Authority may associate with itself in such manner, subject to such conditions and for such purposes as may be prescribed, any person whose assistance or advice it requires in discharging its functions effectively and that person shall be entitled to receive such allowances or fees as may be fixed by the Authority. (8) One-third of the total Members of the Authority shall form a quorum, and all the acts of the Authority shall be decided by a majority of the Members present. (9) No act or proceeding of an Authority shall be invalidated merely by reason of— (a) any vacancy in, or any defect in the constitution of, the Authority; or (b) any defect in the appointment of a person acting as a Member of the Authority; or (c) any irregularity in the procedure of the Authority not affecting the merits of the case. (10) Every Authority shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings (including quorum at such meetings) as may be prescribed. **32. Officers of Authority and other staff.—(1) Every Development Commissioner of the Special** Economic Zone, for which he is appointed as such, shall be the chief executive of the Authority concerned and exercise such powers and perform such functions as may be prescribed. (2) Every Authority may, in addition to the officers and employees transferred to it under section 33, appoint such other officers and employees, as it considers necessary for the efficient discharge of its functions under this Act. (3) The method of appointment, the conditions of service and the scales of pay and allowances of such other officers and employees appointed under sub-section (2) shall be such as may be prescribed. **33. Special provision for transfer of officers or other employees to Authority.—(1) It shall be** lawful for the Central Government to transfer to each Authority, by order, and with effect from such date or dates, as may be specified in the order, any officer or other employee holding office as such (except officers or other employees on deputation) in the existing Special Economic Zone concerned: Provided that the scale of pay of the post to which such officer or other employee is transferred shall not be lower than the scale of pay of the post which he was holding immediately before such transfer and the other terms and conditions of service (including pension, leave, provident fund and medical benefits) of the post to which he is transferred shall not be less favourable than the terms and conditions of service in relation to the post held by him immediately before such transfer: Provided further that if, immediately before the date of his transfer, any such officer or other employee is officiating in a higher post under the Central Government either in a leave vacancy or in any vacancy of a specified duration, his pay and other allowances, if any, on transfer, shall be protected for the unexpired period of such vacancy and thereafter he shall be entitled to the scale of pay applicable to the post under the Central Government to which he would have reverted but for his transfer to the Authority. (2) If any question arises as to whether the prescribed terms and conditions of service in respect of any matter, including remuneration, pension, leave, provident fund and medical benefits, are less favourable than those attached to the post held by an officer or other employee immediately before his transfer to the Authority, the decision of the Central Government in the matter shall be final. **34. Functions of Authority.—(1) Subject to the provisions of this Act, it shall be the duty of each** Authority to undertake such measures as it thinks fit for the development, operation and management of the Special Economic Zone for which it is constituted. 19 ----- (2) Without prejudice to the generality of the provisions of sub-section (1), the measures referred to therein may provide for— (a) the development of infrastructure in the Special Economic Zone; (b) promoting exports from the Special Economic Zone; (c) reviewing the functioning and performance of the Special Economic Zone; (d) levy user or service charges or fees or rent for the use of properties belonging to the Authority; (e) performing such other functions as may be prescribed. **35. Grants and loans by Central Government.—The Central Government may, after due** appropriation made by Parliament by law in this behalf, make to every Authority by way of grants and loans or such sums of money as that Government may think fit for being utilised for the purposes of this Act. **36. Constitution of Fund and its application.—(1) There shall be established by every Authority a** Fund to be called the.......... (the name of the Special Economic Zone concerned) Authority Fund and there shall be credited thereto— (a) all sums of money, which the Central Government may, after due appropriation made by Parliament by law in this behalf, provide to the Authority; (b) all grants or loans that may be made to the Authority under this Act; (c) all sums received on account of user or service charges or fees or rent for the use of properties belonging to the Authority; (d) all sums received by the Authority from such other sources as may be decided upon by the Central Government. (2) The Fund shall be applied for meeting— (a) the salaries, allowances and other remuneration of the members, officers and other employees of the Authority; (b) the expenses of the Authority in the discharge of its functions under section 34; (c) the repayment of any loan; (d) the expenses on objects and for purposes authorised by this Act; (e) any other administrative expenses of the Authority. **37. Accounts and audit.—(1) Every Authority shall maintain proper accounts and other relevant** records and prepare an annual statement of accounts in such form as may be prescribed by the Central Government, in consultation with the Comptroller and Auditor-General of India. (2) The accounts of every Authority shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Authority to the Comptroller and Auditor-General of India. (3) The Comptroller and Auditor-General of India or any person appointed by him in connection with the audit of the accounts of the Authority shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General of India generally has in connection with the audit of the Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Authority. (4) The accounts of every Authority as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and the Central Government shall cause the same to be laid before each House of Parliament. 20 ----- **38. Directions by Central Government.—Every Authority shall be bound to carry out such** directions as may be issued to it from time to time by the Central Government for the efficient administration of this Act. **39. Returns and reports.—(1) Every Authority shall furnish to the Central Government at such time** and in such form and manner as may be prescribed or as the Central Government may direct, such returns and statements and such particulars in regard to the promotion and development of exports and the operation and maintenance of the Special Economic Zone and Units as the Central Government may, from time to time, require. (2) Without prejudice to the provisions of sub-section (1), every Authority shall, as soon as possible, after the end of each financial year, submit to the Central Government a report in such form and before such date, as may be prescribed, giving a true and full account of its activities, policy and programmes during the previous financial year. (3) A copy of every report received under sub-section (2) shall be laid, as soon as may be, after it is received, before each House of Parliament. **40. Power to supersede Authority.—(1) If at any time the Central Government is of the opinion that** an Authority is unable to perform, or has persistently made default in the performance of the duty imposed on it by or under this Act or has exceeded or abused its powers, or has wilfully or without sufficient cause, failed to comply with any direction issued by the Central Government under section 38, the Central Government may, by notification, supersede that Authority for such period not exceeding six months, as may be specified in the notification: Provided that before issuing a notification under this sub-section, the Central Government shall give reasonable time to that Authority to make representation against the proposed supersession and shall consider the representations, if any, of the Authority. (2) Upon the publication of a notification under sub-section (1) superseding the Authority,— (a) the Chairperson and other Members of the Authority shall, notwithstanding that their term of office has not expired as from the date of supersession, vacate their offices as such; (b) all the powers, functions and duties which may, by or under the provisions of this Act, be exercised or discharged by or on behalf of the Authority shall, during the period of supersession, be exercised and performed by such person or persons as the Central Government may direct; (c) all property vested in the Authority shall, during the period of supersession, vest in the Central Government. (3) On the expiration of the period of supersession specified in the notification issued under sub-section (1), the Central Government may— (a) extend the period of supersession for such further period not exceeding six months; or (b) reconstitute the Authority in the manner provided in section 31. **41 Members, officers and other employees of Authority to be public servants.—All Members,** officers and other employees of every Authority, shall, when acting or purporting to act in pursuance of any of the provisions of this Act or the rules made thereunder, be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). CHAPTER VIII MISCELLANEOUS **42. Reference of dispute.—(1) Notwithstanding anything contained in any other law for the time** being in force, if— (a) any dispute of civil nature arises among two or more entrepreneurs or two or more Developers or between an entrepreneur and a Developer in the Special Economic Zone; and 21 ----- (b) the court or the courts to try suits in respect of such dispute had not been designated under sub-section (1) of section 23, such dispute shall be referred to arbitration: Provided that no dispute shall be referred to the arbitration on or after the date of the designation of the court or courts under sub-section (1) of section 23. (2) Where a dispute has been referred to arbitration under sub-section (1), the same shall be settled or decided by the arbitrator to be appointed by the Central Government. (3) Save as otherwise provided under this Act, the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) shall apply to all arbitration under this Act as if the proceedings for arbitration were referred in settlement or decision under the provisions of the Arbitration and Conciliation Act, 1996. **43. Limitation.—(1) The period of limitation in the case of any dispute which is required to be** referred to arbitration shall be regulated by the provisions of the Limitation Act, 1963 (36 of 1963), as if the dispute was a suit and the arbitrator is civil court. (2) Notwithstanding anything contained in sub-section (1), the arbitrator may admit a dispute after the expiry of the period of limitation, if the applicant satisfies the arbitrator that he had sufficient cause for not referring the dispute within such period. **44. Applicability of provisions of this Act to existing Special Economic Zones.—All the** provisions of this Act (except sections 3 and 4) shall, as far as may be, apply to every existing Special Economic Zone. **45. Person to whom a communication may be sent under this Act.—A communication by any** competent authority or person under this Act may be sent to the person who has the ultimate control over the affairs of the Special Economic Zone or Unit or where the said affairs are entrusted to a manager, director, chairperson, or managing director, or to any other officer, by whatever name called, such communication may be sent to such manager, director, chairperson, or managing director or any other officer. **46. Identity Card.—Every person, whether employed or residing or required to be present in a** Special Economic Zone, shall be provided an identity card by every Development Commissioner of such Special Economic Zone, in such form and containing such particulars as may be prescribed. **47. Authorities responsible for administration.—Any authority which has been conferred upon any** power, or, is, required to discharge any function under any Central or State Act, may, subject to the provisions of this Act, exercise such power or discharge such functions in any Special Economic Zone under that Act. **48. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall** lie against the Central Government or any Chairperson, Member, officer or other employee of the Board or the Approval Committee or the Authority or Development Commissioner for anything done or intended to be done in good faith under this Act. **49. Power to modify provisions of this Act or other enactments in relation to Special Economic** **Zones.—(1) The Central Government may, by notification, direct that any of the provision of this Act** (other than sections 54 to 56) or any other Central Act or any rules or regulations made thereunder or any notification or order issued or direction given thereunder (other than the provisions relating to making of the rules or regulations) specified in the notification— (a) shall not apply to a Special Economic Zone or a class of Special Economic Zones or all Special Economic Zones; or (b) shall apply to a Special Economic Zone or a class of Special Economic Zones or all Special Economic Zones only with such exceptions, modification and adaptation, as may be specified in the notification: Provided that nothing contained in this section shall apply to any modifications of any Central Act or any rule or regulation made thereunder or any notification or order issued or direction given or scheme made thereunder so far as such modification, rule, regulation, notification, order or direction 22 ----- or scheme relates to the matters relating to trade unions, industrial and labour disputes, welfare of labour including conditions of work, provident funds, employers' liability, workmen's compensation, invalidity and old age pensions and maternity benefits applicable in any Special Economic Zones. (2) A copy of every notification proposed to be issued under sub-section (1), shall be laid in draft before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in disapproving the issue of the notification or both Houses agree in making any modification in the notification, the notification shall not be issued or, as the case may be, shall be issued only in such modified form as may be agreed upon by both the Houses. **50. Power of State Government to grant exemption.—The State Government may, for the** purposes of giving effect to the provisions of this Act, notify policies for Developers and Units and take suitable steps for enactment of any law— (a) granting exemption from the State taxes, levies and duties to the Developer or the entrepreneur; (b) delegating the powers conferred upon any person or authority under any State Act to the Development Commissioner in relation to the Developer or the entrepreneur. **51. Act to have overriding effect.—The provisions of this Act shall have effect notwithstanding** anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law other than this Act. **52. Certain provisions not to apply.—(1) The provisions contained in the Chapter XA of the** Customs Act, 1962 (52 of 1962) and the Special Economic Zones Rules, 2003 and the Special Economic Zones (Customs Procedure) Regulations, 2003 made thereunder shall not, with effect from such date as the Central Government by notification appoint, apply to the Special Economic Zones. (2) Notwithstanding anything contained in sub-section (1), all offences committed, before the commencement of this Act, under any provisions of the Customs Act, 1962 (52 of 1962) and the Special Economic Zones Rules, 2003 and the Special Economic Zones (Customs Procedure) Regulations, 2003 made thereunder, shall continue to be governed by the said Act or rules, as the case may be. (3) Anything done or any action taken or purported to have been done or taken including any rule, notification, inspection, order or notice made or issued or any permission or authorisation or exemption granted or any document or instrument executed under the said provisions of the Act, rules and regulations referred to in sub-section (1) shall, in so far as they are not inconsistent with the provisions of this Act, be deemed to have been done or taken or made or issued or granted under the corresponding provisions of the Act or rules or regulations referred to in that sub-section. **53. Special Economic Zones to be ports, airports, inland container depots, land stations, etc., in** **certain cases.—A Special Economic Zone shall, on and from the appointed day, be deemed to be a** territory outside the customs territory of India for the purposes of undertaking the authorised operations. (2) A Special Economic Zone shall, with effect from such date as the Central Government may notify, be deemed to be a port, airport, inland container depot, land station and land customs stations, as the case may be, under section 7 of the Customs Act, 1962 (52 of 1962): Provided that for the purposes of this section, the Central Government may notify different dates for different Special Economic Zones. **54. Amendment to First Schedule.—(1) The Central Government may, having regard to the objects** of this Act, and if it considers necessary or expedient so to do, by notification add to, or as the case may be, omit from the First Schedule any enactment specified therein. (2) A copy of every notification proposed to be issued under sub-section (1), shall be laid in draft before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in 23 ----- disapproving the issue of the notification or both Houses agree in making any modification in the notification, the notification shall not be issued or, as the case may be, shall be issued only in such modified form as may be agreed upon by both the Houses. **55. Power to make rules.—(1) The Central Government may, by notification, make rules for** carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the infrastructure facilities necessary for the development of the Special Economic Zones under clause (p) and services in the Special Economic Zones under clause (z) of section 2; (b) the period within which the person concerned shall obtain the concurrence of the State Government under sub-section (3) of section 3; (c) the form and the manner in which a proposal may be made and the particulars to be contained therein under sub-section (5) of section 3; (d) the period within which the State Government may forward the proposal together with its recommendation under sub-section (6) of section 3; (e) the requirements subject to which the Board may approve, modify or reject the proposal under sub-section (8) of section 3; (f) the period within which the grant of letter of approval shall be communicated to the State Government or Developer or entrepreneur under sub-section (10) of section 3; (g) the other requirements for notifying the specifically identified area in a State as a Special Economic Zone under sub-section (1) of section 4; (h) the terms, conditions and limitations subject to which the goods or services exported out of, or imported into, or procured from the Domestic Tariff Area to, a Special Economic Zone, be exempt from payment of taxes, duties, or cess under section 7; (i) the procedure for transfer of letter of approval in case of suspension of letter of approval of a Developer under clause (a) of sub-section (9) of section 10; (j) the form and the manner in which a proposal may be submitted and the particulars to be contained therein under sub-section (1) of section 15; (k) the time within which a person aggrieved by the order of the Approval Committee may prefer an appeal under sub-section (4) of section 15; (l) the form in which the appeal shall be made and the fees for making such appeal under sub-section (6) of section 15; (m) the procedure for disposing of an appeal under sub-section (7) of section 15; (n) the requirements (including the period for which a Unit may be set up) subject to which the proposal may be approved, modified or rejected under clause (a) of sub-section (8) of section 15; (o) the terms and conditions for the Unit subject to which it shall undertake authorised operations under clause (b) of sub-section (8) of section 15 and the obligations and entitlements of the Unit; (p) the time within which a person aggrieved by the order of the Approval Committee may prefer an appeal under sub-section (4) of section 16; (q) the form in which the appeal shall be made and the fees for making such appeal under sub-section (6) of section 16; (r) the procedure for disposing of an appeal under sub-section (7) of section 16; (s) the form and the manner in which an application may be made for setting up of an Offshore Banking Unit in a Special Economic Zone under sub-section (1) of section 17; 24 ----- (t) the requirements for setting up and operation of an International Financial Services Centre in a Special Economic Zone under sub-section (1) of section 18; (u) the requirements and terms and conditions subject to which a Unit in the International Financial Services Centre may be set up and operated in a Special Economic Zone under sub-section (2) of section 18; (v) the form of single application for obtaining any licence, permission or registration or approval under clause (a) of section 19; (w) the form of single return or information to be furnished by an entrepreneur or Developer under clause (c) of section 19; (x) the manner in which and the terms and conditions subject to which the exemptions, concessions, draw back or other benefits shall be granted to every Developer and entrepreneur under sub-section (2) of section 26; (y) the period during which any goods brought into, or services provided in, any Special Economic Zone shall remain or continue to be provided in such Unit or Special Economic Zone under section 28; (z) the terms and conditions subject to which transfer of ownership in any goods brought into, or produced or manufactured in, any Unit or Special Economic Zone, or removal thereof from such Unit or Zone, shall be allowed under section 29; (za) the conditions subject to which the Units shall be entitled to sell the goods manufactured in a Special Economic Zone to the Domestic Tariff Area under section 30; (zb) the term of office of the Members, other than ex officio Members, of every Authority and the manner of filling of vacancies under sub-section (6) of section 31; (zc) the manner in which and the conditions subject to which and the purposes for which any person may be associated under sub-section (7) of section 31; (zd) the times and the places of meetings and the procedure to be followed in the transaction of business at the meetings under sub-section (10) of section 31; (ze) the powers and the functions of every Development Commissioner under sub-section (1) of section 32; (zf) the method of appointment of officers and other employees of every Authority, conditions of their service and the scale of pay and allowances under sub-section (3) of section 32; (zg) the other functions to be performed by the Authority under clause (e) of sub-section (2) of section 34; (zh) the form in which the accounts and other relevant records of every Authority shall be maintained and annual statement of accounts shall be prepared under sub-section (1) of section 37; (zi) the form and the manner in which and the time at which every Authority shall furnish returns and statements and other particulars to the Central Government under sub-section (1) of section 39; (zj) the form in which and the date before which every Authority shall furnish to the Central Government the report of its activities, policy and programmes under sub-section (2) of section 39; (zk) the form in which and the particulars to be contained in the identity cards under section 46; (zl) any other matter which, is to be, or may be, prescribed. (3) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that 25 ----- any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **56. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act, as may appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made under this section after the expiration of two years from the date of commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **57. Amendment of certain enactments.—With effect from such date as the Central Government** may, by notification, appoint, the enactments specified in the Third Schedule shall be amended in the manner specified therein: Provided that different dates may be appointed on which the amendments specified in the Third Schedule shall apply to a particular Special Economic Zone or a class of Special Economic Zones or all Special Economic Zones. **58. Savings.—All rules made or purporting to have been made or all notifications issued or** purporting to have been issued under any Central Act relating to the Special Economic Zones shall, in so far as they relate to matters for which provision is made in this Act or rules made or notification issued thereunder and are not inconsistent therewith, be deemed to have been made or issued under this Act as if this Act had been in force on the date on which such rules were made or notifications were issued and shall continue to be in force unless and until they are superseded by any rules made or notifications issued under this Act. 26 ----- THE FIRST SCHEDULE (See sections 7 and 54) ENACTMENTS 1. The Agricultural Produce Cess Act, 1940 (27 of 1940). 2. The Coffee Act, 1942 (7 of 1942). 3. The Mica Mines Labour Welfare Fund Act, 1946 (22 of 1946). 4. The Rubber Act, 1947 (24 of 1947). 5. The Tea Act, 1953 (29 of 1953). 6. The Salt Cess Act, 1953 (49 of 1953). 7. The Medicinal and Toilet Preparations (Excise Duties) Act, 1955 (16 of 1955). 8. The Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957). 9. The Sugar (Regulation of Production) Act, 1961 (55 of 1961). 10. The Textiles Committee Act, 1963 (41 of 1963). 11. The Produce Cess Act, 1966 (15 of 1966). 12. The Marine Products Export Development Authority Act, 1972 (13 of 1972). 13. The Coal Mines (Conservation and Development) Act, 1974 (28 of 1974). 14. The Oil Industry (Development) Act, 1974 (47 of 1974). 15. The Tobacco Cess Act, 1975 (26 of 1975). 16. The Additional Duties of Excise (Textile and Textile Articles) Act, 1978 (40 of 1978). 17. The Sugar Cess Act, 1982 (3 of 1982). 18. The Jute Manufactures Cess Act, 1983 (28 of 1983). 19. The Agricultural and Processed Food Products Export Cess Act, 1985 (3 of 1986). 20. The Spices Cess Act, 1986 (11 of 1986). 21. The Research and Development Cess Act, 1986 (32 of 1986). 27 ----- THE SECOND SCHEDULE (See section 27) MODIFICATIONS TO THE INCOME-TAX ACT, 1961 (43 OF 1961) (a) in section 10,— (A) in clause (15), after sub-clause (vii), the following clause shall be inserted at the end, namely:— “(viii) any income by way of interest received by a non-resident or a person who is not ordinarily resident, in India on a deposit made on or after the 1st day of April, 2005 in an Offshore Banking Unit referred to in clause (u) of section 2 of the Special Economic Zones Act, 2005;”; (B) in clause (23G), after the words, brackets, figures and letters “sub-section (4) of section 80-IA”, the words brackets, figures and letters “or sub-section (3) of section 80-IAB” shall be inserted; _(C) in clause (34), the following Explanation shall be inserted, namely:—_ “Explanation.—For the removal of doubts, it is hereby declared that the dividend referred to in section 115-O shall not be included in the total income of the assessee, being a Developer or entrepreneur.”; (b) in section 10A, after sub-section (7A), the following sub-section shall be inserted, namely:— “(7B) The provisions of this section shall not apply to any undertaking, being a Unit referred to in clause (zc) of section 2 of the Special Economic Zones Act, 2005, which has begun or begins to manufacture or produce articles or things or computer software during the previous year relevant to the assessment year commencing on or after the 1st day of April, 2006 in any Special Economic Zone.”; (c) after section 10A, the following section shall be inserted, namely:— ‘10AA. Special provisions in respect of newly established Units in Special Economic Zones.—(1) Subject to the provisions of this section, in computing the total income of an assessee, being an entrepreneur as referred to in clause (j) of section (2) of the Special Economic Zones Act, 2005, from his Unit, who begins to manufacture or produce articles or things or provide any services during the previous year relevant to any assessment year commencing on or after the 1st day of April, 2006, a deduction of— (i) hundred per cent. of profits and gains derived from the export, of such articles or things or from services for a period of five consecutive assessment years beginning with the assessment year relevant to the previous year in which the Unit begins to manufacture or produce such articles or things or provide services, as the case may be, and fifty per cent. of such profits and gains for further five assessment years and thereafter; (ii) for the next five consecutive assessment years, so much of the amount not exceeding fifty per cent. of the profit as is debited to the profit and loss account of the previous year in respect of which the deduction is to be allowed and credited to a reserve account (to be called the “Special Economic Zone Re-investment Reserve Account”) to be created and utilised for the purposes of the business of the assessee in the manner laid down in sub-section (2). (2) The deduction under clause (ii) of sub-section (1) shall be allowed only if the following conditions are fulfilled, namely:— (a) the amount credited to the Special Economic Zone Re-investment Reserve Account is to be utilised— (i) for the purposes of acquiring machinery or plant which is first put to use before the expiry of a period of three years following the previous year in which the reserve was created; and (ii) until the acquisition of the machinery or plant as aforesaid, for the purposes of the business of the undertaking other than for distribution by way of dividends or profits or for remittance outside India as profits or for the creation of any asset outside India; 28 ----- (b) the particulars, as may be specified by the Central Board of Direct Taxes in this behalf, under clause (b) of sub-section (IB) of section 10A have been furnished by the assessee in respect of machinery or plant along with the return of income for the assessment year relevant to the previous year in which such plant or machinery was first put to use. (3) Where any amount credited to the Special Economic Zone Re-investment Reserve Account under clause (ii) of sub-section (1),— (a) has been utilised for any purpose other than those referred to in sub-section (2), the amount so utilised; or (b) has not been utilised before the expiry of the period specified in sub-clause (i) of clause (a) of sub-section (2), the amount not so utilised, shall be deemed to be the profits,— (i) in a case referred to in clause (a), in the year in which the amount was so utilised; or (ii) in a case referred to in clause (b), in the year immediately following the period of three years specified in sub-clause (i) of clause (a) of sub-section (2), and shall be charged to tax accordingly: Provided that where in computing the total income of the Unit for any assessment year, its profits and gains had not been included by application of the provisions of sub-section (7B) of section 10A, the undertaking being the Unit shall be entitled to deduction referred to in this sub-section only for the unexpired period of ten consecutive assessment years and thereafter it shall be eligible for deduction from income as provided in clause (ii) of sub-section (1): _Explanation.—For the removal of doubts, it is hereby declared that an undertaking being the Unit,_ which had already availed before the commencement of the Special Economic Zone Act, 2005, the deductions referred to in section 10A for ten consecutive assessment years, such Unit shall not be eligible for deduction from income under this section: Provided further that where a Unit initially located in any free trade zone or export processing zone is subsequently located in a Special Economic Zone by reason of conversion of such free trade zone or export processing zone into a Special Economic Zone, the period of ten consecutive assessment years referred to above shall be reckoned from the assessment year relevant to the previous year in which the Unit began to manufacture, or produce or process such articles or things or services in such free trade zone or export processing zone: Provided also that where a Unit initially located in any free trade zone or export processing zone is subsequently located in a Special Economic Zone by reason of conversion of such free trade zone or export processing zone into a Special Economic Zone and has completed the period of ten consecutive assessment years referred to above, it shall not be eligible for deduction from income as provided in clause (ii) of sub-section (1) with effect from the 1st day of April, 2006. (4) This section applies to any undertaking being the Unit, which has begun or begins to manufacture or produce articles or things or services during the previous year relevant to the assessment year commencing on or after the 1st day of April, 2006, in any Special Economic Zone. (5) Where any undertaking being the Unit which is entitled to the deduction under this section is transferred, before the expiry of the period specified in this section, to another undertaking, being the Unit in a scheme of amalgamation or demerger,— (a) no deduction shall be admissible under this section to the amalgamating or the demerged Unit, being the company for the previous year in which the amalgamation or the demerger takes place; and (b) the provisions of this section shall, as they would have applied to the amalgamating or the demerged Unit being the company as if the amalgamation or demerger had not taken place. 29 ----- (6) Loss referred to in sub-section (1) of section 72 or sub-section (1) or sub-section (3) of section 74, in so far as such loss relates to the business of the undertaking, being the Unit shall be allowed to be carried forward or set off. (7) For the purposes of sub-section (1), the profits derived from the export of articles or things or services (including computer software) shall be the amount which bears to the profits of the business of the undertaking, being the Unit, the same proportion as the export turnover in respect of such articles or things or services bears to the total turnover of the business carried on by the assessee. (8) The provisions of sub-sections (5) and (6) of section 10A shall apply to the articles or things or services referred to in sub-section (1) as if— (a) for the figures, letters and word “1st April, 2001”, the figures, letters and word “1st April, 2006” had been substituted; (b) for the word “undertaking”, the words “undertaking, being the Unit” had been substituted. (9) The provisions of sub-section (8) and sub-section (10) of section 80-IA shall, so far as may be, apply in relation to the undertaking referred to in this section as they apply for the purposes of the undertaking referred to in section 80-IA. _Explanation 1.—For the purposes of this section,—_ (i) “export turnover” means the consideration in respect of export by the undertaking, being the Unit of articles or things or services received in, or brought into, India by the assessee but does not include freight, telecommunication charges or insurance attributable to the delivery of the articles or things outside India or expenses, if any, incurred in foreign exchange in rendering of services (including computer software) outside India; (ii) “export in relation to the Special Economic Zones” means taking goods or providing services out of India from a Special Economic Zone by land, sea, air, or by any other mode whether physical or otherwise; (iii) “manufacture” shall have the same meaning as assigned to it in clause (r) of section 2 of the Special Economic Zones Act, 2005; (iv) “relevant assessment year” means any assessment year falling within a period of fifteen consecutive assessment years referred to in this section; (v) “Special Economic Zone” and “Unit” shall have the same meanings as assigned to them under clause (za) and (zc) of section 2 of the Special Economic Zones Act, 2005. _Explanation_ 2.—For the removal of doubts, it is hereby declared that the profits and gains derived from on site development of computer software (including services for development of software) outside India shall be deemed to be the profits and gains derived from the export of computer software outside India; (d) after section 54G, the following section shall be inserted, namely:— “54GA. Exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area to any Special Economic Zone.—(1) Notwithstanding anything contained in section 54G, where the capital gain arises from the transfer of a capital asset, being machinery or plant or building or land or any rights in building or land used for the purposes of the business of an industrial undertaking situate in an urban area, effected in the course of, or in consequence of the shifting of such industrial undertaking to any Special Economic Zone, whether developed in any urban area or any other area and the assessee has within a period of one year before or three years after the date on which the transfer took place,— (a) purchased machinery or plant for the purposes of business of the industrial undertaking in the Special Economic Zone to which the said undertaking is shifted; (b) acquired building or land or constructed building for the purposes of his business in the Special Economic Zone; 30 ----- (c) shifted the original asset and transferred the establishment of such undertaking to the Special Economic Zone; and (d) incurred expenses on such other purposes as may be specified in a scheme framed by the Central Government for the purposes of this section, then, instead of the capital gain being charged to income-tax as income of the previous year in which the transfer took place, it shall, subject to the provisions of sub-section (2), be dealt with in accordance with the following provisions of this section, that is to say,— (i) if the amount of the capital gain is greater than the cost and expenses incurred in relation to all or any of the purposes mentioned in clauses (a) to (d) (such cost and expenses being hereafter in this section referred to as the new asset), the difference between the amount of the capital gain and the cost of the new asset shall be charged under section 45 as the income of the previous year; and for the purpose of computing in respect of the new asset any capital gain arising from its transfer within a period of three years of its being purchased, acquired, constructed or transferred, as the case may be, the cost shall be Nil; or (ii) if the amount of the capital gain is equal to, or less than, the cost of the new asset, the capital gain shall not be charged under section 45, and for the purpose of computing in respect of the new asset any capital gain arising from its transfer within a period of three years of its being purchased, acquired, constructed or transferred, as the case may be, the cost shall be reduced by the amount of the capital gain. _Explanation.—In this sub-section,—_ (a) “Special Economic Zone” shall have the meaning assigned to it in clause (za) of the Special Economic Zones Act, 2005; (b) “urban area” means any such area within the limits of a municipal corporation or municipality as the Central Government may, having regard to the population, concentration of industries, need for proper planning of the area and other relevant factors, by general or special order, declare to be an urban area for the purposes of this sub-section. (2) The amount of capital gain which is not appropriated by the assessee towards the cost and expenses incurred in relation to all or any of the purposes mentioned in clauses (a) to (d) of sub-section (1) within one year before the date on which the transfer of the original asset took place, or which is not utilised by him for all or any of the purposes aforesaid before the date of furnishing the return of income under section 139, shall be deposited by him before furnishing such return [such deposit being made in any case not later than the due date applicable in the case of the assessee for furnishing the return of income under sub-section (1) of section 139] in an account in any such bank or institution as may be specified in, and utilised in accordance with, any scheme which the Central Government may, by notification, frame in this behalf and such return shall be accompanied by proof of such deposit; and, for the purposes of sub-section (1), the amount, if any, already utilised by the assessee for all or any of the aforesaid purposes together with the amount so deposited shall be deemed to be the cost of the new asset: Provided that if the amount deposited under this sub-section is not utilised wholly or partly for all or any of the purposes mentioned in clauses (a) to (d) of sub-section (1) within the period specified in that sub-section, then,— (i) the amount not so utilised shall be charged under section 45 as the income of the previous year in which the period of three years from the date of the transfer of the original asset expires; and (ii) the assessee shall be entitled to withdraw such amount in accordance with the scheme aforesaid.”; (e) in section 80-IA, after sub-section (12), the following section shall be inserted, namely:— “(13) nothing contained in this section shall apply to any Special Economic Zones notified on or after the 1st day of April, 2005 in accordance with the scheme referred to in sub-clause (iii) of clause (c) of sub-section (4)”. 31 ----- (f) after section 80-IA, the following section shall be inserted, namely:— “80-I AB. Deductions in respect of profits and gains by an undertaking or enterprise engaged in development of Special Economic Zone.—(1) Where the gross total income of an assessee, being a Developer, includes any profits and gains derived by an undertaking or an enterprise from any business of developing a Special Economic Zone, notified on or after the 1st day of April, 2005 under the Special Economic Zone Act, 2005, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction of an amount equal to one hundred per cent. of the profits and gains derived from such business for ten consecutive assessment years. (2) The deduction specified in sub-section (1) may, at the option of the assessee, be claimed by him for any ten consecutive assessment years out of fifteen years beginning from the year in which a Special Economic Zone has been notified by the Central Government: Provided that where in computing the total income of any undertaking, being a Developer for any assessment year, its profits and gains had not been included by application of the provisions of sub-section (13) of section 80-1A, the undertaking being the Developer shall be entitled to deduction referred to in this section only for the unexpired period of ten consecutive assessment years and thereafter it shall be eligible for deduction from income as provided in sub-section (1) or sub-section (2), as the case may be: Provided further that in a case where an undertaking, being a Developer who develops a Special Economic Zone on or after the 1st day of April, 2005 and transfers the operation and maintenance of such Special Economic Zone to another Developer (hereafter in this section referred to as the transferee Developer), the deduction under sub-section (1) shall be allowed to such transferee Developer for the remaining period in the ten consecutive assessment years as if the operation and maintenance were not so transferred to the transferee Developer. (3) The provisions of sub-sections (5) and sub-sections (7) to (12) of section 80-IA shall apply to the Special Economic Zones for the purpose of allowing deductions under sub-section (1). _Explanation.—For the purposes of this section, “Developer” and “Special Economic Zone” shall_ have the same meanings respectively as assigned to them in clauses (g) and (za) of section 2 of the Special Economic Zones Act, 2005”; (g) for section 80LA, the following section shall be substituted, namely:— ‘80LA. _Deduction in respect of certain incomes of Offshore Banking Units and International_ _Financial Services Centre.—(1) Where the gross total income of an assessee,—_ (i) being a scheduled bank, or, any bank incorporated by or under the laws of a country outside India; and having an Offshore Banking Unit in a Special Economic Zone; or (ii) being a Unit of an International Financial Services Centre, includes any income referred to in sub-section (2), there shall be allowed, in accordance with and subject to the provisions of this section, a deduction from such income, of an amount equal to— (a) one hundred per cent of such income for five consecutive assessment years beginning with the assessment year relevant to the previous year in which the permission, under clause (a) of sub-section (1) of section 23 of the Banking Regulation Act, 1949 (10 of 1949) or permission or registration under the Securities and Exchange Board of India Act, 1992 (15 of 1992) or any other relevant law was obtained, and thereafter; (b) fifty per cent. of such income for five consecutive assessment years. (2) The income referred to in sub-section (1) shall be the income— (a) from an Offshore Banking Unit in a Special Economic Zone; or (b) from the business referred to in sub-section (1) of section 6 of the Banking Regulation Act, 1949 (10 of 1949) with an undertaking located in a Special Economic Zone or any other 32 ----- undertaking which develops, develops and operates or develops, operates and maintains a Special Economic Zone; or (c) from any Unit of the International Financial Services Centre from its business for which it has been approved for setting up in such a Centre in a Special Economic Zone. (3) No deduction under this section shall be allowed unless the assessee furnishes along with the return of income,— (i) the report, in the form specified by the Central Board of Direct Taxes under clause (i) of sub-section (2) of section 80LA, as it stood immediately before its substitution by this section, of an accountant as defined in the Explanation below sub-section (2) of section 288, certifying that the deduction has been correctly claimed in accordance with the provisions of this section; and (ii) a copy of the permission obtained under clause (a) of sub-section (1) of section 23 of the Banking Regulation Act, 1949 (10 of 1949). _Explanation.—For the purposes of this section,—_ (a) “International Financial Services Centre” shall have the same meaning as assigned to it in clause (q) of section 2 of the Special Economic Zones Act, 2005; (b) “scheduled bank” shall have the same meaning as assigned to it in clause (e) of section 2 of the Reserve Bank of India Act, 1934 (2 of 1934); (c) “Special Economic Zone” shall have the same meaning as assigned to it in clause (za) of section 2 of the Special Economic Zones Act, 2005; (d) “Unit” shall have the same meaning as assigned to it in clause (zc) of section 2 of the Special Economic Zones Act, 2005; (h) in section 115JB, after sub-section (5), the following sub-section shall be inserted, namely:— “(6) The provisions of this section shall not apply to the income accrued or arising on or after the 1st day of April, 2005 from any business carried on, or services rendered, by an entrepreneur or a Developer, in a Unit or Special Economic Zone, as the case may be.”. (i) in section 115-0, after sub-section (5), the following sub-section shall be inserted, namely:— “(6) Notwithstanding anything contained in this section, no tax on distributed profits shall be chargeable in respect of the total income of an undertaking or enterprise engaged in developing or developing and operating or developing, operating and maintaining a Special Economic Zone for any assessment year on any amount declared, distributed or paid by such Developer or enterprise, by way of dividends (whether interim or otherwise) on or after the 1st day of April, 2005 out of its current income either in the hands of the Developer or enterprise or the person receiving such dividend not falling under clause (23G) of section 10.”; (j) in section 197A, after sub-section (1C), the following sub-section shall be inserted, namely:— (1D) Notwithstanding anything contained in this section, no deduction of tax shall be made by the Offshore Banking Unit from the interest paid— (a) on deposit made on or after the 1st ordinarily resident in India; or day of April, 2005, by a non-resident or a person not (b) on borrowings, on or after the 1st ordinarily resident in India. day of April, 2005, from a non-resident or a person not _Explanation.—For the purposes of this sub-section “Offshore Banking Unit” shall have the same_ meaning as assigned to it in clause (u) of section 2 of the Special Economic Zones Act, 2005.’. 33 ----- THE THIRD SCHEDULE (See section 57) AMENDMENT TO CERTAIN ENACTMENTS PART I AMENDMENTS TO THE INSURANCE ACT, 1938 (4 OF 1938) **1. In section 2C, in sub-section (1), after the third proviso, insert:—** “Provided also an insurer, being an Indian Insurance Company, insurance co-operative society or a body corporate referred to in clause (c) of this sub-section carrying on the business of insurance, may carry on any business of insurance in any Special Economic Zone as defined in clause (za) of section 2 of the Special Economic Zones Act, 2005.”. **2. After section 2C, insert—** _“2CA. Power of Central Government to apply provisions of this Act to Special Economic_ Zones.— The Central Government may, by notification, direct that any of the provisions of this Act,— (a) shall not apply to insurer, being an Indian Insurance Company, insurance co-operative society or a body corporate referred to in clause (c) of sub-section (1) of section 2C, carrying on the business of insurance, in any Special Economic Zone as defined in clause (za) of section 2 of the Special Economic Zones Act, 2005; or (b) shall apply to any insurer, being an Indian Insurance Company, insurance co-operative society or a body corporate referred to in clause (c) of sub-section (1) of section 2C, carrying on the business of insurance, in any Special Economic Zone as defined in clause (za) of section 2 of the Special Economic Zones Act, 2005 only with such exceptions, modifications and adaptations as may be specified in the notification.”. PART II AMENDMENTS TO THE BANKING REGULATION ACT, 1949 (10 OF 1949) **1. Section 53 shall be re-numbered as sub-section (1) thereof and in sub-section (1) as so** re-numbered, for “banking company or institution or to any class of banking companies”, substitute,— “banking company or institution or to any class of banking companies or any of their branches functioning or located in any Special Economic Zone established under the Special Economic Zones Act, 2005.”. **2. After sub-section (1) as so numbered, the following sub-section shall be inserted, namely:—** “(2) A copy of every notification proposed to be issued under sub-section (1), shall be laid in draft before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in disapproving the issue of the notification or both Houses agree in making any modification in the notification, the notification shall not be issued or, as the case may be, shall be issued only in such modified form as may be agreed upon by both the Houses.”. 34 ----- PART III AMENDMENT TO THE INDIAN STAMP ACT, 1899 (2 OF1899) In section 3, in the proviso, after clause (2), insert,— '(3) any instrument executed, by, or, on behalf of, or, in favour of, the Developer, or Unit or in connection with the carrying out of purposes of the Special Economic Zone. _Explanation.—For the purposes of this clause, the expressions “Developer”, “Special Economic_ Zone” and “Unit” shall have meanings respectively assigned to them in clause (g), (za) and (zc) of section 2 of the Special Economic Zones Act, 2005.'. 35 -----

23-Jun-2005

24

The Coastal Aquaculture Authority Act, 2005

https://www.indiacode.nic.in/bitstream/123456789/2068/8/A2005-24.pdf

central

# THE COASTAL AQUACULTURE AUTHORITY ACT, 2005 ___________ # ARRANGEMENT OF SECTIONS ___________ CHAPTER I PRELIMINARY SECTIONS 1. Short title and commencement. 2. Definitions. CHAPTER II GENERAL POWERS OF CENTRAL GOVERNMENT 3. Power of Central Government to take measures to protect environment. CHAPTER III THE COASTAL AQUACULTURE AUTHORITY 4. Establishment of Authority and appointment of Chairperson and members. 5. Disqualifications for appointment as member. 6. Eligibility of member for reappointment. 7. Meetings of Authority. 7A. Committees of Authority. 8. Vacancy in Authority not to invalidate proceeding. 9. Appointment of officers, consultants and other employees of Authority. 9A. Secretary of Authority. 10. Authentication of orders and other instruments of Authority. CHAPTER IV POWERS AND FUNCTIONS OF AUTHORITY 11. Functions of Authority. 12. Power to enter. 12A. Prohibition of certain materials. 13. Registration for coastal aquaculture. 13A. Authorisation of officers. 14. Penalty for carrying on coastal aquaculture in contravention of provisions of Act. 14A. Appeal. 15. Cognizance of offence. CHAPTER V FINANCE, ACCOUNTS AND AUDIT 16. Payment to Authority. 17. Fund of Authority. 18. Budget. 19. Annual report. 20. Accounts and audit. ----- CHAPTER VI MISCELLANEOUS SECTIONS 21. Chairperson and other members, officers and other employees of Authority, etc., to be public servants. 22. Protection of action taken in good faith. 22A. Arrears of cost and penalty recoverable as arrears of land revenue. 23. Power to remove difficulties. 24. Power of Central Government to make rules. 25. Power of Authority to make regulations. 26. Rules and regulations to be laid before Parliament. 27. Validation. 28. Validation of certain provisions and amendments retrospectively. ----- # THE COASTAL AQUACULTURE AUTHORITY ACT, 2005 ACT NO. 24 OF 2005 [23rd June, 2005.] # An Act to provide for the establishment of a Coastal Aquaculture Authority for regulating the activities connected with coastal aquaculture in the coastal areas and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-sixth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title and commencement.—(1) This Act may be called the Coastal Aquaculture Authority** Act, 2005. (2) Provisions of section 27 shall come into force at once and the remaining provisions of this Act shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.—(1) In this Act, unless the context otherwise requires,—** 2[(a) “aquaculture input” means any material used as an input in coastal aquaculture for the maintenance of quality of water and soil and for the growth and better health of organisms reared, or other aquatic life available, therein and includes seed, fertilizer, feed, growth supplement, probiotic, environment remediator and disinfectant; (aa) “aqua mapping” means geospatial coastal area distribution maps depicting areas potential and suitable for coastal aquaculture; (ab) “aqua zonation” means the zones of spatial planning for different species or methods of coastal aquaculture notified by a State Government or the Authority for sustainable coastal aquaculture; (ac) “Authority” means the Coastal Aquaculture Authority established under sub-section (1) of section 4; (ad) “biosecured facility” means a coastal aquaculture unit carrying on coastal aquaculture activity adopting such biosecurity measures for ensuring freedom from disease causing pathogens as may be specified in the guidelines issued for such activity; (ae) “biosecurity” means any measure or strategy or integrated approach adopted to analyse, manage and prevent the risk of introduction or spread of harmful organisms, including viruses and bacteria, within the coastal aquaculture unit and to minimise the risk of transmission of infectious diseases; (af) “Brood Stock Multiplication Centre” means a coastal aquaculture unit carrying on such coastal aquaculture activity which receives such post larvae or juvenile which are specific pathogen free or specific pathogen tolerant or specific pathogen resistant or such other post larvae or juvenile from a Nucleus Breeding Centre and rears it under strict biosecurity and close disease surveillance to ensure freedom from disease;] (b) “Chairperson” means the Chairperson of the Authority; 3[(c) “coastal aquaculture” or “coastal aquaculture activity” means rearing and cultivation of any life stages of fish, including crustacean, mollusc, finfish, seaweed or any other aquatic life under controlled conditions, either indoor or outdoor, in cement cisterns, ponds, pens, cages, rafts, enclosures or otherwise in saline or brackish water in coastal areas, including activities such as production of brood stock, seed, grow out, but does not include fresh water aquaculture; 1.16th December, 2005, ss. 2 to 26 (both inclusive), vide notification No. S.O. 1771(E), dated 16th December, 2005, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 2. Subs. by Act 27 of 2023, s. 2, for clause (a) (w.e.f. 12-9-2023). 3. Subs. by s. 2, ibid., for clause (c) (w.e.f. 12-9-2023). ----- (ca) “coastal aquaculture unit” means any facility that is engaged in coastal aquaculture or any allied activity connected therewith and includes Nucleus Breeding Centre, Brood Stock Multiplication Centre, hatchery and farm;] 1[(d) “coastal area” means the area declared as the Coastal Regulation Zone in the Coastal Regulation Zone notification issued by the Central Government under the Environment (Protection) Act, 1986 (29 of 1986) and includes such other area as the Central Government may, by notification in the Official Gazette, specify; (da) “coastal environment” means the area of land and water in the coastal area, including complete system of living organisms and physical surroundings therein; (db) “farm” means a coastal aquaculture unit where culturing of fish, including crustacean, mollusc, finfish, seaweed or any other aquatic life is done under controlled conditions in ponds, pens, cages, rafts, enclosures or otherwise, in saline or brackish water in coastal areas and includes nursery rearing, but does not include fresh water aquaculture; (dc) “hatchery” means a coastal aquaculture unit carrying on coastal aquaculture activity of breeding and seed production of fish, including crustacean, mollusc, finfish, seaweed or any other aquatic life, in saline or brackish water and includes rearing of nauplii and live feed, but does not include fresh water aquaculture;] (e) “member” means the member of the Authority appointed under sub-section (3) of section 4 and includes the Chairperson [2]***; 3[(ea) “Nucleus Breeding Centre” means a coastal aquaculture unit carrying on biosecured coastal aquaculture activity which has an established freedom from disease causing pathogens for the purpose of producing domesticated specific pathogen free, specific pathogen tolerant and specific pathogen resistant stocks; (eb) “operator” means any person or firm that is engaged in the operation of the coastal aquaculture activity; (ec) “owner”, in relation to any coastal aquaculture unit, includes— (i) his legal heirs or agent; and (ii) an operator, a mortgagee, lessee, including sub-lessee or any other person in actual possession of such coastal aquaculture unit; (ed) “pharmacologically active substance or antimicrobial agent” means a naturally occurring, semi-synthetic or synthetic substance that, at in vivo concentration, exhibits antimicrobial activity of killing or inhibiting the growth of microorganisms;] (f) “prescribed” means prescribed by rules made under this Act; (g) “regulations” means the regulations made by the Authority under this Act. (2) Words and expressions used herein and not defined but defined in the Environment (Protection) Act, 1986 (29 of 1986) shall have the meanings respectively assigned to them in that Act. 3[(h) “specific pathogen free” or “specific pathogen resistant” or “specific pathogen tolerant” means free of, resistant to, or tolerant to, such pathogens as may be listed by the World Organisation for Animal Health or any other pathogen notified by the Central Government, which is specific for candidate species used in the coastal aquaculture; (i) “State” includes Union territory.] CHAPTER II GENERAL POWERS OF CENTRAL GOVERNMENT **3. Power of Central Government to take measures to protect environment.—The Central** Government shall take all such measures as it deems necessary or expedient for regulation of coastal aquaculture by prescribing guidelines, to ensure that coastal aquaculture does not cause any detriment to the coastal environment and the concept of responsible coastal aquaculture contained in such guidelines 1. Subs. by Act 27 of 2023, s. 2, for clause (d) (w.e.f. 12-9-2023). 2. The words “and the member-secretary” omitted by s. 2, ibid. (w.e.f. 12-9-2023). 3. Ins. by s. 2, ibid. (w.e.f. 12-9-2023). ----- shall be followed in regulating the coastal aquaculture activities to protect the livelihood of various sections of the people living in the coastal areas. CHAPTER III THE COASTAL AQUACULTURE AUTHORITY **4. Establishment of Authority and appointment of Chairperson and members.—(1) With effect** from such date as the Central Government may, by notification in the Official Gazette, appoint in this behalf, there shall be established for the purposes of this Act an Authority to be called the Coastal Aquaculture Authority. (2) The head office of the Authority shall be at such place as the Central Government may decide. (3) The Authority shall consist of the following members who shall be appointed by the Central Government, namely:— (a) the Chairperson who is, or has been, a Judge of a High Court; (b) one member who is an expert in the field of coastal aquaculture; (c) one member who is an expert in the field of coastal ecology nominated by the [1][Ministry of Earth Sciences] of the Central Government; (d) one member who is an expert in the field of environment protection or pollution control nominated by the [2][Ministry of Environment, Forest and Climate Change] of the Central Government; (e) one member to represent the [3][Ministry of Agriculture and Farmers Welfare] of the Central Government; (f) one member to represent the [4][Ministry of Commerce and Industry] of the Central Government; 5[(fa) one member to represent the Ministry of Fisheries, Animal Husbandry and Dairying of the Central Government;] 6[(g) one member to represent each of the coastal States and Union territories;] 7* - - *. 5[(3A) When the office of the Chairperson is vacant, the Central Government may, till the appointment of a new incumbent to the said office, nominate any member of the Authority to exercise such of the powers, and perform such of the functions, of the Chairperson as may be prescribed.] (4) The term of office of the Chairperson and every other member shall be three years. (5) The salaries and allowances payable to, and the other terms and conditions of service of, the members shall be such as may be prescribed. **5. Disqualifications for appointment as member.—A person shall be disqualified for being** appointed as a member if he— (a) has been convicted and sentenced to imprisonment for an offence which, in the opinion of the Central Government, involves moral turpitude; or (b) is an undischarged insolvent; or (c) is of unsound mind and stands so declared by a competent court; or (d) has been removed or dismissed from the service of the Government or a Corporation owned or controlled by the Government; or 1. Subs. by Act 27 of 2023, s. 3, for “Department of Ocean Development” (w.e.f. 12-9-2023). 2. Subs. by s. 3, ibid., for “Ministry of Environment and Forests” (w.e.f. 12-9-2023). 3. Subs. by s. 3, ibid., for “Ministry of Agriculture” (w.e.f. 12-9-2023). 4. Subs. by s. 3, ibid., for “Ministry of Commerce” (w.e.f. 12-9-2023). 5. Ins. by s. 3, ibid. (w.e.f. 12-9-2023). 6. Subs. by s. 3, ibid., for clause (g) (w.e.f. 12-9-2023). 7. Clause (h) omitted by s. 3, ibid, (w.e.f. 12-9-2023). ----- (e) has, in the opinion of the Central Government, such financial or other interest in the Authority as is likely to affect prejudicially the discharge by him of his functions as a member. **6. Eligibility of member for reappointment.—Subject to sub-section (5) of section 4, any person** ceasing to be a member shall be eligible for reappointment as such member for not more than two consecutive terms. **7. Meetings of Authority.—(1) The Authority shall meet at such times and places and shall observe** such rules of procedure in regard to the transaction of business at its meetings (including the quorum thereat) as may be specified by regulations. 1[(2) If the Chairperson is unable to attend a meeting of the Authority, any other member of the Authority nominated by the Chairperson in this behalf, and in the absence of both Chairperson and nominated member, any other member chosen by the members present from amongst themselves, shall preside over the meeting.] (3) All questions which come up before any meeting of the Authority shall be decided by a majority of votes of the members present and voting and in the event of an equality of votes, the Chairperson or in his absence the person presiding, shall have and exercise a second or casting vote. 2[7A. Committees of Authority.—(1) Subject to any rules made in this behalf, the Authority may from time to time constitute such committees as may be necessary for the efficient discharge of its functions. (2) Every committee shall consist of such number of persons and perform such functions and be subject to such terms and conditions as may be prescribed.] **8. Vacancy in Authority not to invalidate proceeding.—No act or proceeding of the Authority shall** be invalidated merely by reason of— (a) any vacancy in, or any defect in the constitution of, the Authority; or (b) any defect in the appointment of a person acting as a member of the Authority; or (c) any irregularity in the procedure adopted by the Authority not affecting the merits of the case. **9. Appointment of officers, consultants and other employees of Authority.—(1) For the purposes** of discharging its functions, the Authority shall appoint such number of officers and other employees as it may consider necessary on such terms and conditions as may be specified by the regulations. (2) The Authority may appoint, from time to time, any person as adviser or consultant as it may consider necessary on such terms and conditions as may be specified by the regulations. 3[9A. Secretary of Authority.—(1) The Central Government may appoint an officer of such rank, as it considers fit, to be a Secretary of the Authority, in such manner and subject to such terms and conditions as may be prescribed. (2) The Secretary shall function as the Chief Executive Officer of the Authority who shall be responsible for— (a) the day-to-day administration of the Authority; (b) drawing up of proposal for the Authority's work programmes in consultation with the Authority; (c) implementing the work programmes and the decisions adopted by the Authority; (d) ensuring that the tasks of the Authority are carried out in accordance with the requirements of users, in particular with regard to the adequacy of the services provided and the time taken; (e) the preparation of the statement of revenue and expenditure and the execution of the budget of the Authority; 1. Subs. by Act 27 of 2023, s. 4, for sub-section (2) (w.e.f. 12-9-2023). 2. Ins. by s. 5, ibid. (w.e.f. 12-9-2023). 3. Ins. by s. 6, ibid. (w.e.f. 12-9-2023). ----- (f) coordinating with the Central Government and with the committees of the Authority; and (g) legally representing the Authority in all matters. (3) Every year, the Secretary shall submit to the Authority for approval,— (a) a general report covering all the activities of the Authority in the previous year; (b) the programmes of work; (c) the annual accounts for the previous year; and (d) the budget for the coming year. (4) The Secretary shall, after the approval of the Authority, forward the general report and the programmes to the Central Government and shall have the general report published. (5) The Secretary shall have administrative control over the officers and other employees of the Authority. (6) The Secretary shall approve all financial expenditure of the Authority and send a report on the Authority's activities to the Central Government.] **10. Authentication of orders and other instruments of Authority.—All orders, decisions and other** instruments of the Authority shall be authenticated under the signature of the Chairperson or any other member or any officer of the Authority authorised by the Chairperson in this behalf. CHAPTER IV POWERS AND FUNCTIONS OF AUTHORITY **11. Functions of Authority.—(1) Subject to any guidelines issued by the Central Government under** section 3, the Authority shall exercise the following powers and perform the following functions, namely:— (a) to make regulations for the construction and operation of [1][coastal aquaculture units] within the coastal areas; (b) to inspect coastal aquaculture [2][units] with a view to ascertaining their environmental impact caused by coastal aquaculture; (c) to register coastal aquaculture [2][units]; 3[(d) to order removal or demolition of any coastal aquaculture unit which is causing pollution after hearing the occupier of such unit;] 4[(da) to regulate or prohibit the number, species and method of any coastal aquaculture in such area, as may be prescribed, through planning and execution of such programmes, including aqua zonation and aqua mapping for environmentally sustainable coastal aquaculture, as may be notified by the Central Government; (db) to fix or adopt standards, certify, monitor, regulate or prohibit coastal aquaculture inputs, including probiotics, therapeutants and such other inputs used in coastal aquaculture, as may be prescribed, for the prevention, control and abatement of detriment to the coastal aquaculture or coastal environment; (dc) to fix or adopt standards, certify, monitor and regulate the coastal aquaculture units, including coastal aquaculture activities carried out in such units with biosecurity and close disease surveillance to ensure freedom from disease, in such manner as may be prescribed; (dd) to fix or adopt the standards for emission or discharge of effluents from coastal aquaculture unit: 1. Subs. by Act 27 of 2023, s. 7, for “aquaculture farms” (w.e.f. 12-9-2023). 2. Subs. by s. 7, ibid., for “farms” (w.e.f. 12-9-2023). 3. Subs. by s. 7, ibid., for clause (d) (w.e.f. 12-9-2023). 4. Ins. by s. 7, ibid. (w.e.f. 12-9-2023). ----- Provided that different standards for emission or discharge may be fixed for different coastal aquaculture unit having regard to the quality or composition of the emission or discharge of effluents from such sources; (de) to collect and disseminate information in respect of matters relating to coastal aquaculture;] (e) to perform such other functions as may be prescribed. (2) Where the Authority orders removal or demolition of any coastal aquaculture [1][unit] under clause (d) of sub-section (1), the workers of the said [1][unit] shall be paid such compensation as may be settled between the workers and the management through an authority consisting of one person only to be appointed by the Authority and such authority may exercise such powers of a District Magistrate for such purpose, as may be prescribed. **12. Power to enter.—Subject to any rule made in this behalf, any person generally or specially** authorised by the Authority in this behalf, may, wherever it is necessary to do so for any purposes of this Act, at all reasonable times, enter on any coastal aquaculture [2][unit] and— (a) make any inspection, survey, measurement, valuation or inquiry; (b) remove or demolish any structure therein; and (c) do such other acts or things as may be prescribed: Provided that no such person shall enter on any coastal aquaculture [2][unit] without giving the occupier of such aquaculture [2][unit] at least twenty-four hours' notice in writing of his intention to do so. 3[Provided further that the requirement of notice under the first proviso may be waived by the Authority, in such cases and for such reasons to be recorded in writing, as it deems fit: Provided also that the owner shall be liable to pay the cost of demolition and cost of damage to the environment, if any, assessed in such manner as may be prescribed.] 4[12A. Prohibition of certain materials.— The Authority may, by an order, prohibit the use, in any coastal aquaculture activity of— (a) such pharmacologically active substance, antimicrobial agent or other material which may cause harm to human health as may be prescribed; or (b) aquaculture inputs containing such substance, agent or material as may be specified under clause (a).] **13. Registration for coastal aquaculture.—(1) Save as otherwise provided in this section, no person** shall carry on, or cause to be carried on, coastal aquaculture in coastal area or traditional coastal aquaculture in the traditional coastal aquaculture [5][unit] which lies within the Coastal Regulation Zone referred to in sub-section (9) and is not used for coastal aquaculture purposes on the appointed day unless he has registered his [5][unit] with the Authority under sub-section (5) or in pursuance of sub-section (9), as the case may be. (2) Notwithstanding anything contained in sub-section (1), a person engaged in coastal aquaculture, immediately before the appointed day, may continue to carry on such activity without such registration for a period of three months from that day and if he makes an application for such registration under sub-section (4) within the said period of three months, till the communication to him of the disposing of such application by the Authority. (3) The registration made under sub-section (5) or in pursuance of sub-section (9)— (a) shall be valid for a period of five years; (b) may be renewed from time to time for a like period; and 1. Subs. by Act 27 of 2023, s. 7, for “farm” (w.e.f. 12-9-2023). 2. Subs. by s. 8, ibid., for “land, pond, pen or enclosure” (w.e.f. 12-9-2023). 3. Ins. by s. 8, ibid, (w.e.f. 12-9-2023). 4. Ins. by s. 9, ibid, (w.e.f. 12-9-2023). 5. Subs. by s. 10, ibid., for “farm” (w.e.f. 12-9-2023). ----- (c) shall be in such form and shall be subject to such conditions as may be specified by the regulations. 1[Provided that the Authority may issue a certificate of registration for carrying out coastal aquaculture on the land allotted or assigned by the Government subject to such procedure and for such period, as may be prescribed, but not exceeding the period specified under clause (a) or clause (b), as the case may be.] (4) A person who intends to carry on coastal aquaculture shall make an application for registration of his [2][coastal aquaculture unit] before the Authority in such form accompanied with such fees as may be prescribed for the purpose of registration under sub-section (5). (5) On receipt of an application for registration of a [2][coastal aquaculture unit] under sub-section (4), the Authority shall consider the application in the prescribed manner and after considering the application either register the [2][coastal aquaculture unit] or reject the application: Provided that the Authority shall not reject the application without recording the reason for such rejection. (6) The Authority shall, after registering a [2][coastal aquaculture unit] under sub-section (5), issue a certificate of registration in the prescribed form to the person who has made the application for such registration. 3[(7) In the case of a farm comprising more than two hectares of water spread area and any other coastal aquaculture unit, no application for registration to commence any activity connected with coastal aquaculture shall be considered under sub-section (5) unless the Authority, after making such inquiry as it thinks fit, is satisfied that registration of such coastal aquaculture unit shall not be detrimental to the coastal environment.] (8) Notwithstanding anything contained in this section,— 4[(a) no coastal aquaculture shall be carried on in the ecologically sensitive areas or the geo morphological features; (b) no coastal aquaculture, except hatchery, Nucleus Breeding Centre and Brood Stock Multiplication Centre shall be carried on in the No Development Zone in the case of sea, and in the buffer zone in the case of creeks, rivers and backwaters; (c) no coastal aquaculture, except seaweed culture, pen culture, raft culture and cage culture activities shall be carried on in creek, rivers and backwaters within the Coastal Regulation Zone:] Provided that nothing in this sub-section shall apply in the case of a coastal aquaculture farm which is in existence on the appointed day and to the non-commercial and experimental coastal aquaculture farms operated or proposed to be operated by any research institute of the Government or funded by the Government: Provided further that the Authority may, for the purposes of providing exemption under the first proviso, review from time to time the existence and activities of the coastal aquaculture farms and the provisions of this section shall apply on coastal aquaculture farms in view of such review. 5[Explanation.—For the purposes of this sub-section,— (i) “High Tide Line” means the line on the land up to which the highest water line reaches during the spring tide; (ii) the expressions “ecologically sensitive areas”, “geo-morphological features”, “No Development Zone”, “buffer zone” and “Coastal Regulation Zone” shall have the same meanings as defined in the Coastal Regulation Zone notification issued under the Environment (Protection) Act, 1986 (29 of 1986).] 1. Ins. by Act 27 of 2023, s. 10, (w.e.f. 12-9-2023). 2. Subs. by s. 10, ibid., for “farm” (w.e.f. 12-9-2023). 3. Subs. by s. 10, ibid., for sub-section (7) (w.e.f. 12-9-2023). 4. Subs. by s. 10, ibid., for clauses (a) and (b) (w.e.f. 16-12-2005). 5. Subs. by s. 10, ibid., for Explanation (w.e.f. 16-12-2005). ----- (9) Notwithstanding anything contained in this section, any traditional coastal aquaculture [1][unit] which lies within the Coastal Regulation Zone declared by the notification of the Government of India in the Ministry of Environment and Forest (Department of Environment, Forests and Wildlife) No. S.O.114(E), dated the 19th February, 1991 and is not used for coastal aquaculture purposes on the appointed day shall be registered under sub-section (5) by producing before the Authority, by the person who is the owner of such [1][unit], the documentary proof of such ownership failing which such [1][unit] shall not be registered under sub-section (5) and if such person after such registration does not utilise such 1[unit], within one year, for coastal aquaculture purposes, the registration shall be cancelled by the Authority. (10) A person, who intends to renew the registration of a [2][coastal aquaculture unit] made under sub-section (5) or in pursuance of sub-section (9), may make an application within two months before the expiry of such registration to the Authority in the prescribed form accompanied with the prescribed fees and the Authority shall, after receiving such application, renew the registration and for such purpose make an entry with its seal on the registration certificate relating to such form issued under sub-section (6). 3[Provided that the Authority may condone the delay in making application for renewal, subject to payment of such fee for renewal of registration, as may be prescribed.] (11) The Authority may refuse to renew the registration of a [2][coastal aquaculture unit] under sub-section (10) if the Authority is satisfied that the person to whom such registration is made has failed to utilise such [2][coastal aquaculture unit] for coastal aquaculture purposes or without any reasonable cause has violated any provision of this Act or the rules or regulations made there under or any direction or order made by the Authority in pursuance of section 11: Provided that such refusal to renew the registration shall not be made without providing such person an opportunity of being heard. _Explanation 1.—For the purposes of this section, “appointed day” means the date of establishment of_ the Authority. _Explanation 2.—For the removal of doubts, it is hereby declared that the expression “to renew the_ registration” used in sub-sections (10) and (11) shall be construed to include further renewal of the registration. [3][(12) The Authority may vary, amend or modify the certificate of registration issued under this section, in such manner as may be prescribed. (13) In the event of the certificate of registration issued under this Act being defaced or mutilated or lost, the Authority may grant a duplicate certificate, on payment of such fee and in such manner, as may be prescribed.] 4[13A. Authorisation of officers.—(1) The Authority may, by order, authorise any officer of the Authority or the State Government or the Central Government, not below the rank of Assistant Director of Fisheries in a District to function as authorised officer to exercise such powers, to discharge such duties and perform such functions, as may be specified in that order. (2) The Central Government may, by notification, authorise any officer of the Authority or the State Government or the Central Government, not below the rank of Under Secretary to the Government of India, to function as an adjudicating officer, to adjudicate the penalties imposed under this Act. (3) The Central Government may, by notification, authorise any officer of the Authority or the State Government or the Central Government, not below the rank of Deputy Secretary to the Government of India, to function as the Appellate Authority, who may affirm, vary or set aside the order passed by the adjudicating officer. 1. Subs. by Act 27 of 2023, s. 10, for “farm” (w.e.f. 12-9-2023). 2. Subs. by s. 10, ibid., for “farm” (w.e.f. 12-9-2023). 3. Ins. by s. 10, ibid, (w.e.f. 12-9-2023). 4. Ins. by s. 11, ibid, (w.e.f. 12-9-2023). ----- (4) The adjudicating officer or the Appellate Authority, shall, for the purposes of discharging functions under this Act, have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) while trying a suit, in respect of the following matters, namely:— (a) summoning and enforcing the attendance of witnesses; (b) requiring the discovery and production of documents; (c) requisitioning any public record or document or copy of such record or document from any office; (d) receiving evidence on affidavits; (e) issuing commissions for the examination of witnesses or documents. (5) The adjudicating officer or the Appellate Authority shall be deemed to be a civil court for the purposes of sections 345 and 346 of the Code of Criminal Procedure, 1973 (2 of 1974).] **1[14. Penalty for carrying on coastal aquaculture in contravention of provisions of Act.— Where** any person carries on coastal aquaculture or traditional coastal aquaculture or causes the coastal aquaculture or traditional coastal aquaculture to be carried on in contravention of any of the provisions of this Act or any rules or regulations made thereunder or any guidelines or notifications issued thereunder, an officer authorised under section 13A shall take all or any of the following actions, namely:— (a) suspension or stoppage of any activity in a coastal aquaculture unit for such period and in such manner as may be prescribed; (b) imposition of penalty as specified in the Table below; (c) removal or demolition of any structure; (d) destruction of the standing crop therein; (e) suspension or cancellation of registration for such period and in such manner as may be prescribed. Table Sl. Coastal Offences Penalty No. Aquaculture/use First time Second time Third time and of prohibited offence offence subsequent materials offences (1) (2) (3) (4) (5) (6) 1. Farm Non-registration. Rupees ten Rupees fifteen Rupees twentythousand per thousand per five thousand hectare (or hectare (or per hectare (or fraction of a fraction of a fraction of a hectare) of water hectare) of hectare) of spread area. water spread water spread area. area. Non-compliance Rupees five Rupees ten Rupees fifteen with the provisions thousand per thousand per thousand per of the Act, rules, hectare (or hectare (or hectare (or regulations, fraction of a fraction of a fraction of a guidelines and hectare) of water hectare) of hectare) of notifications, other spread area. water spread water spread than non- area. area. registration. 1. Subs. by Act 27 of 2023, s. 12 for section 14 (w.e.f. 12-9-2023). |Table|Col2|Col3|Col4|Col5|Col6| |---|---|---|---|---|---| |Sl. No.|Coastal Aquaculture/use of prohibited materials|Offences|Penalty||| ||||First time offence|Second time offence|Third time and subsequent offences| |(1)|(2)|(3)|(4)|(5)|(6)| |1.|Farm|Non-registration.|Rupees ten thousand per hectare (or fraction of a hectare) of water spread area.|Rupees fifteen thousand per hectare (or fraction of a hectare) of water spread area.|Rupees twenty- five thousand per hectare (or fraction of a hectare) of water spread area.| |||Non-compliance with the provisions of the Act, rules, regulations, guidelines and notifications, other than non- registration.|Rupees five thousand per hectare (or fraction of a hectare) of water spread area.|Rupees ten thousand per hectare (or fraction of a hectare) of water spread area.|Rupees fifteen thousand per hectare (or fraction of a hectare) of water spread area.| ----- |2.|Hatchery, Brood Stock Multiplication Centre, Nucleus Breeding Centre or such other coastal aquaculture unit|Non-registration.|Rupees fifty thousand.|Rupees seventy-five thousand.|Rupees one lakh.| |---|---|---|---|---|---| |||Non-compliance with the provisions of the Act, rules, regulations, guidelines and notifications, other than non- registration.|Rupees twenty- five thousand.|Rupees fifty thousand.|Rupees one lakh.| |3.|Use of materials prohibited under section 12A|Contravention of the provisions of clause (a) or clause (b) of section 12A|Rupees fifty thousand.|Rupees seventy-five thousand.|Rupees one lakh.| **14A. Appeal. —(1) Any person aggrieved by an order of the adjudicating officer may within thirty** days from the date on which the order is made, prefer an appeal to the Appellate Authority: Provided that the Appellate Authority may entertain any appeal preferred after the expiry of the said period of thirty days, but before the expiry of ninety days from the date aforesaid, if it satisfied that the appellant was prevented by sufficient cause from filing the appeal in time. (2) No appeal under this section shall be entertained by the Appellate Authority unless the appellant has at the time of filing the appeal deposited the amount of penalty payable under the order appealed against: Provided that on an application made by the appellant in this behalf, the Appellate Authority may, if it is of the opinion that the deposit to be made under this sub-section shall cause undue hardship to the appellant, by order in writing, dispense with such deposit, either unconditionally or subject to such condition, as it may deem fit to impose. (3) On the receipt of an appeal under sub-section (1), the Appellate Authority may, after holding such enquiry as it deems fit, and after giving the parties concerned reasonable opportunity of being heard, confirm, modify or set aside the order appealed against, and— (a) if the sum deposited by way of penalty under sub-section (2) exceeds the penalty directed to be paid by the Appellate Authority, such excess amount shall be refunded to the appellant; or (b) if the Appellate Authority sets aside the order imposing penalty, the whole of the sum deposited by the way of penalty shall be refunded to the appellant. (4) The decision of the Appellate Authority under this section shall be final.] **15. Cognizance of offence.—No court shall take cognizance of an offence under section 14 without a** written complaint filed by an officer of the Authority authorised in this behalf by it. CHAPTER V FINANCE, ACCOUNTS AND AUDIT **16. Payment to Authority.—The Central Government may, after due appropriation made by** Parliament, by law, in this behalf, pay to the Authority in each financial year such sums as may be considered necessary for the performance of functions of the Authority under this Act. **17. Fund of Authority.—(1) The Authority shall have its own fund and all sums which may, from** time to time, be paid to it by the Central Government and all the receipts of the Authority (including any sum which any State Government or any other authority or person may hand over to the Authority) shall be credited to the fund and all payments by the Authority shall be made therefrom. (2) All moneys belonging to the fund shall be deposited in such banks or invested in such manner as may, subject to the approval of the Central Government, be decided by the Authority. ----- (3) The Authority may spend such sums as it thinks fit for performing its functions under this Act, and such sums shall be treated as expenditure payable out of the fund of the Authority. **18. Budget.—The Authority shall prepare, in such form and at such time each year as may be** prescribed, a budget, in respect of the financial year next ensuing, showing the estimated receipts and expenditure and copies thereof shall be forwarded to the Central Government. **19. Annual report.—The Authority shall prepare once in every calendar year, in such form and at** such time as may be prescribed an annual report giving a true and full account of its activities during the previous year and copies thereof shall be forwarded to the Central Government and that Government shall cause the same to be laid before both Houses of Parliament. **20. Accounts and audit.—(1) The Authority shall cause to be maintained such books of account and** other books in relation to its accounts in such form and in such manner as may, in consultation with the Comptroller and Auditor-General of India, be prescribed. (2) The Authority shall, as soon as may be, after closing its annual accounts, prepare a statement of accounts in such form, and forward the same to the Comptroller and Auditor-General of India by such date, as the Central Government may, in consultation with the Comptroller and Auditor-General of India, determine. (3) The accounts of the Authority shall be audited by the Comptroller and Auditor-General of India at such times and in such manner as he thinks fit. (4) The accounts of the Authority as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before both Houses of Parliament. CHAPTER VI MISCELLANEOUS **21. Chairperson and other members, officers and other employees of Authority, etc., to be** **public servants.—The Chairperson and other members and the officers and other employees of the** Authority and the authority appointed by the Authority shall be deemed to be public servants within the meaning of section 21 of the India Penal Code (45 of 1860). **22. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall** lie against the Central Government or the Authority or the Chairperson and other members of the Authority or the authority appointed by the Authority or any person authorised by the Authority or any officer authorised by the Chairperson for anything which is in good faith done or intended to be done in pursuance of this act or any rule or regulation or order made thereunder. 1[22A. Arrears of cost and penalty recoverable as arrears of land revenue. — Any cost which is due and not paid as provided for by or under this Act and any sum directed to be recovered by way of penalty under section 14 shall be recoverable in the same manner as an arrear of land revenue.] **23. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made after the expiry of the period of two years from the date of the commencement of this Act. (2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament. **24. Power of Central Government to make rules.—(1) The Central Government may, by** notification in the Official Gazette, make rules to carry out the provisions of this act. 1. Ins. by Act 27 of 2023, s. 13 (w.e.f. 12-9-2023). ----- (2) In particular, and without prejudice to the generality of the foregoing powers, such rules may provide for all or any of the following matters, namely:— (a) the guidelines under section 3; 1[(aa) the powers to be exercised and the functions to be performed by the nominated member under sub-section (3A) of section 4;] (b) the salaries and allowances payable to, and the other terms and conditions of service of, the members under sub-section (5) of section 4; 1[(ba) the manner of constitution of committees under sub-section (1) of section 7A; (bb) the number of persons in the committees, their functions, and the terms and conditions of the committees under sub-section (2) of section 7A; (bc) the manner of appointment and the terms and conditions for appointment of Secretary under sub-section (1) of section 9A; (bd) the area in which the Authority may regulate or prohibit the number, species and method of any coastal aquaculture under clause (da) of sub-section (1) of section 11; (be) the other inputs used in coastal aquaculture under clause (db) of sub-section (1) of section 11; (bf) the manner of certification, monitoring and regulation of the coastal aquaculture units and the manner of carrying out coastal aquaculture activities with biosecurity and close disease surveillance to ensure freedom from disease in coastal aquaculture units under clause (dc) of sub-section (1) of section 11;] (c) the other functions of the Authority under clause (e) of sub-section (1) of section 11; (d) the powers of a District Magistrate to be exercised by the authority under sub-section (2) of section 11; (e) the rules subject to which any person referred to in section 12 may enter upon any coastal aquaculture [2][unit]; (f) the other acts or things under clause (c) of section 12; [1][(fa) the manner of assessing the cost of damage to the environment under the third proviso to section 12; (fb) prohibition of such other material which may cause harm to human health under clause (a) of section 12A; (fc) the procedure and period under the proviso to sub-section (3) of section 13;] (g) the form of application and the fees to be accompanied therewith under sub-section (4) of section 13; (h) the manner of considering application under sub-section (5) of section 13; (i) the form of certificate of registration under sub-section (6) of section 13; (j) the form of application and the fees to be accompanied therewith under sub-section (10) of section 13 [1][and the fee for renewal of registration under the proviso thereof;] 1[(ja) the manner of varying, amending and modifying the certificate of registration under sub-section (12) of section 13; (jb) the fee for grant of duplicate certificate and the manner of granting it under sub-section (13) of section 13; (jc) the period and manner of suspension or stoppage of activity in a coastal aquaculture unit under clause (a) of section 14; 1. Ins. by Act 27 of 2023, s. 14 (w.e.f. 12-9-2023). 2. Subs. by s. 14, ibid., for “land, pond, pen or enclosure under that section” (w.e.f. 12-9-2023). ----- (jd) the period and manner for suspension or cancellation of registration under clause (e) of section 14;] (k) the form and time of preparing budget under section 18; (l) the form and time of preparing annual report under section 19; (m) the books of account and other books to be maintained in relation to the accounts of the Authority and the form and manner of maintaining such books of account and other books under sub-section (1) of section 20; (n) any other matter which is required to be, or may be, prescribed. **25. Power of Authority to make regulations.—(1) The Authority may, by notification in the** Official Gazette, make regulations not inconsistent with the provisions of this Act and the rules made thereunder to carry out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing powers, such regulations may provide for all or any of the following matters, namely:— (a) the times and places of the meetings of the Authority and the rules of procedure to be observed in regard to the transaction of business at its meetings (including quorum thereat) under sub-section (1) of section 7; (b) the terms and conditions of appointment of the officers and other employees under sub-section (1) section 9; (c) the terms and conditions of appointment of adviser or consultant under sub-section (2) of section 9; (d) for the construction and operation of coastal aquaculture [1][units] within the coastal areas under clause (a) of sub-section (1) of section 11; (e) the form and conditions of registration under clause (c) of sub-section (3) of section 13; (f) generally for better regulation of the coastal aquaculture. **26. Rules and regulations to be laid before Parliament.—Every rule and every regulation made** under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. **27. Validation.—[2][(1) Notwithstanding anything contained in clause (v) of sub-section (2) of** section 3 of the Environment (Protection) Act, 1986 (29 of 1986) or clause (d) of sub-rule (3) of rule 5 of the Environment (Protection) Rules, 1986, in the Coastal Regulation Zone Notification or the Island Coastal Regulation Zone Notification issued by the Government of India in the Ministry of Environment, Forest and Climate Change, in exercise of the powers conferred under the said Environment (Protection) Act, in the paragraph dealing with prohibited activities, after the last sub-paragraph, the following proviso shall be inserted and shall always be deemed to have been inserted with effect from the 19th day of February, 1991, namely:— “Provided that nothing contained in this paragraph shall apply to coastal aquaculture.”] (2) The said notification shall have and shall be deemed always to have effect for all purposes as if the foregoing provisions of this section had been in force at all material times and accordingly notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority, no coastal aquaculture carried on or undertaken or purporting to have been carried on or 1. Subs. by Act 27 of 2023, s. 15, for “farms” (w.e.f. 12-9-2023). 2. Subs. by s. 16, ibid. for sub-section (1) (w.e.f. 12-9-2023). ----- undertaken shall deemed to be in contravention of the said notification and shall be deemed to be and to have always been for all purposes in accordance with law, as if the foregoing provisions of this section had been in force at all material times and notwithstanding anything as aforesaid and without prejudice to the generality of the foregoing provisions, no suit or other proceeding shall be maintained or continued in any court for the enforcement of any direction given by any court of any decree or order directing the removal or closure of any coastal aquaculture [1]*** activity or demolition of any structure connected thereunder which would not have been so required to be removed, closed or demolished if the foregoing provisions of this section had been in force at all material times. 2[28. Validation of certain provisions and amendments retrospectively.—(1) Where a coastal aquaculture and activities connected therewith has been granted registration under this Act, then, notwithstanding anything contained in clause (v) of sub-section (2) of section 3 of the Environment (Protection) Act, 1986 (29 of 1986), or clause (d) of sub-rule (3) of rule 5 of the Environment (Protection) Rules, 1986 or in any other law for the time being in force:— (i) such registration granted under this Act shall prevail and remain valid; (ii) such coastal aquaculture and activities connected therewith shall be a permitted activity under the Coastal Regulation Zone Notification or the Island Coastal Regulation Zone Notification issued under the Environment (Protection) Act, 1986 (29 of 1986); (iii) all registrations granted for coastal aquaculture and activities connected therewith under this Act shall be valid permissions under the applicable rules, regulations and notifications notified under the Environment (Protection) Act, 1986 (29 of 1986) from time to time. (2) The provisions of sub-section (1), and the provisions of sub-section (8) of section 13 as amended retrospectively with effect from the 16th December, 2005 by the Coastal Aquaculture Authority (Amendment) Act, 2023 (27 of 2023), shall have and shall be deemed always to have effect for all purposes as if they had been in force at all material times, and accordingly,— (i) notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority, any action taken or anything done or purported to have been taken or done in accordance with the said provisions shall be deemed to be, and always to have been, for all purposes, as validly and effectively taken or done as if the said provisions had been in force at all material times; (ii) no suit or other proceeding shall be instituted, maintained or continued in any court for any action taken or anything done or omitted to be done in accordance with the said provisions; and (iii) no enforcement shall be made by any court of any decree or order or direction relating to removal or closure of any coastal aquaculture activity or demolition of any structure connected therewith or relating to any action taken or done or omitted to be done in accordance with the said provisions as if the provisions of sub-section (1), and the amendments made in sub-section (8) of section 13 had been in force at all material times.] 1. The word “farm’s” omitted by Act 27 of 2023, s. 16 (w.e.f. 12-9-2023). 2. Ins. by s. 17, ibid. (w.e.f. 12-9-2023). -----

23-Jun-2005

26

The University of Allahabad Act, 2005

https://www.indiacode.nic.in/bitstream/123456789/2019/5/A2005-26.pdf

central

# THE UNIVERSITY OF ALLAHABAD ACT, 2005 _____________ # ARRANGEMENT OF SECTIONS _____________ SECTIONS 1. Short title and commencement. 2. Declaration of University of Allahabad as Institution of national importance. 3. Definitions. 4. Incorporation of University of Allahabad. 5. Effect of incorporation of Allahabad University. 6. Objects of University. 7. Powers of University. 8. Jurisdiction. 9. University open to all persons irrespective of gender, class or creed. 10. The Visitor. 11. The Chief Rector. 12. Officers of University. 13. The Chancellor. 14. The Vice-Chancellor. 15. The Pro-Vice-Chancellor. 16. The Deans of Faculties. 17. The Registrar. 18. The Finance Officer. 19. Other officers. 20. Authorities of University. 21. The Court. 22. The Executive Council. 23. The Academic Council. 24. The Finance Committee. 25. Other authorities. 26. The Faculties and Departments. 27. Power to make Statutes. 28. Statutes, how to be made. 29. Power to make Ordinances. 30. Regulations. 31. Annual report. 32. Accounts and audit. 33. Furnishing returns, etc. 34. Conditions of service of employees. 35. Procedure of appeal and arbitration in disciplinary cases against students. 36. Right to appeal. 37. Provident and pension funds. 38. Disputes as to constitution of University authorities and bodies. 39. Filling of casual vacancies. 40. Proceedings of University authorities or bodies not invalidated by vacancies. 41. Protection of action taken in good faith. 42. Mode of proof of University record. 43. Power to remove difficulties. 44. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid before Parliament. 45. Transitional provisions. 46. Amendment of President’s Act 10 of 1973. THE SCHEDULE ----- # THE UNIVERSITY OF ALLAHABAD ACT, 2005 ACT NO. 26 OF 2005 [23rd June, 2005.] # An Act to declare the University of Allahabad to be an institution of national importance and to provide for its incorporation and matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-sixth Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the University of Allahabad Act,** 2005. (2) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act. **2. Declaration of University of Allahabad as Institution of national importance.—Whereas the** objects of the University of Allahabad in the State of Uttar Pradesh are such as to make it an Institution of national importance, it is hereby declared that the said University is an Institution of national importance. **3. Definitions.—In this Act, and in all Statutes made hereunder, unless the context otherwise** requires,— (a) “Academic Council” means the Academic Council of the University; (b) “academic staff” means such categories of staff as are designated as academic staff by the Statutes; (c) “appointed day” means the date of establishment of the University of Allahabad under sub-section (1) of section 4; (d) “Centre” means a unit of the University or of a University Institute providing teaching, consultancy and research facilities; (e) “Chancellor” means the Chancellor of the University appointed under section 13; (f) “Constituent College” means a college prescribed as such by the Statutes; (g) “Constituent Institute” means an Institute prescribed as such by the Statutes; (h) “Court” means the Court of the University; (i) “Department” means a Department of a Faculty; (j) “Director” means the head of a University Institute or Constituent Institute; (k) “employee” means any person appointed by the University and includes teachers and other staff of the University; (l) “Executive Council” means the Executive Council of the University; (m) “Faculty” means a Faculty of the University; (n) “Finance Officer” means the Finance Officer of the University appointed under section 18; (o) “Ordinances” means the Ordinances of the University; (p) “Principal” means the head of a University College or a Constituent College; (q) “Pro-Vice-Chancellor” means the Pro-Vice-Chancellor of the University appointed under section 15; (r) “Registrar” means the Registrar of the University appointed under section 17; (s) “Regulations” means the Regulations of the University; (t) “Statutes” means the Statutes of the University; 1. 14th July, 2005, vide notification No. S.O. 978(E), dated 11th July, 2005, see Gazette of India, Extraordinary, Part II, sec. 3(ii). ----- (u) “teacher” means Professors, Readers and Lecturers appointed or recognised by the University; (v) “University” means the University of Allahabad established and incorporated under section 4; (w) “University appointed teacher” means a teacher appointed by the University for imparting instruction and conducting research in the University or any college or institution maintained by the University; (x) “University College” means a college or an institution maintained by the University or admitted to the privileges of the University as a Faculty; (y) “University Institute” means an Institute, established and maintained by the University; (z) “University recognized teacher” means a teacher recognized by the University for imparting instruction and conducting research in a college or institution admitted to the privileges of the University; and (za) “Vice-Chancellor” means the Vice-Chancellor of the University appointed under section 14. **4. Incorporation of University of Allahabad.—(1) The University of Allahabad in the State of Uttar** Pradesh, established under the Uttar Pradesh State Universities Act, 1973 (President's Act 10 of 1973), shall be established as a body corporate under this Act having perpetual succession and a common seal and shall sue and be sued by the said name. (2) The first Chancellor, the first Vice-Chancellor and the first members of the Court, the Executive Council and the Academic Council, and all persons who may hereafter become such officers or members, so long as they continue to hold such office or membership, shall constitute the University. (3) The headquarters of the University shall be at Allahabad. **5. Effect of incorporation of Allahabad University.—On and from the appointed day,—** (a) any reference to the University of Allahabad in any law (other than this Act) or in any contract or other instrument shall be deemed as a reference to the University; (b) all properties, movable and immovable, of or belonging to the University of Allahabad shall vest in the University; (c) all rights and liabilities of the University of Allahabad shall be transferred to, and be the rights and liabilities of, the University; (d) every person employed by the University of Allahabad immediately before the appointed day shall hold his office or service in the University by the same tenure, at the same remuneration and upon the same terms and conditions and with the same rights and privileges as to pension, leave, gratuity, provident fund and other matters as he would have held the same if this Act had not been passed, and shall continue to do so unless and until his employment is terminated or until such tenure, remuneration and terms and conditions are duly altered by the Statutes: Provided that if the alteration so made is not acceptable to such employee, his employment may be terminated by the University in accordance with the term of the contract with the employee or, if no provision is made therein in this behalf, on payment to him by the University of compensation equivalent to three months' remuneration in case of permanent employees and one month's remuneration in the case of other employees: Provided further that every person employed before the appointed day, pending the execution of a contract under section 34, shall be deemed to have been appointed in accordance with the provisions of a contract consistent with the provisions of this Act and the Statutes: Provided also that any reference, by whatever form of words, to the Vice-Chancellor and Pro Vice-Chancellor of the University of Allahabad in any law for the time being in force, or in any instrument or other document, shall be construed as a reference respectively to the Vice-Chancellor and the Pro-Vice-Chancellor of the University; (e) the Vice-Chancellor of the University, appointed under the provisions of the Uttar Pradesh State Universities Act, 1973 (President's Act 10 of 1973) shall be deemed to have been appointed as ----- the Vice-Chancellor under this Act, and shall hold office for a period of three months or till such time the Vice-Chancellor is appointed, whichever is earlier. **6. Objects of University.—The objects of the University shall be to disseminate and advance** knowledge by providing instructional and research facilities in such branches of learning as it may deem fit; to make provisions for integrated courses in the humanities, the social sciences, the basic and applied science and technology in the educational programmes of the University; to take appropriate measures for promoting innovations in teaching-learning process, interdisciplinary and professional studies and research, removal of gender disparities and the digital divide, and the application of knowledge to social advancement, national progress and human welfare; and to educate and train human resource for the development of the country. **7. Powers of University.—The University shall have the following powers, namely:—** (i) to provide for instruction in such branches of learning as the University may, from time to time, determine and to make provisions for research and for the advancement and dissemination of knowledge; (ii) to grant, subject to such conditions as the University may determine, diplomas or certificates and confer degrees or other academic distinctions on the basis of examinations, evaluation or any other method of testing and to withdraw any such diplomas, certificates, degrees or other academic distinctions for good and sufficient cause; (iii) to confer honorary degrees or other distinctions in the manner prescribed by the Statutes; (iv) to organise and to undertake open learning programmes, extramural studies, training and extension services; (v) to institute Chairs, Principalships, Professorships, Readerships and Lecturerships and other teaching and academic positions, required by the University and to appoint persons to such Chairs, Principalships, Professorships, Readerships and Lecturerships and other teaching and academic positions; (vi) to recognize persons as University recognized teachers; (vii) to declare persons working in any other University or organisation, as teachers of the University; (viii) to appoint, on contract or otherwise, visiting Professors, Emeritus Professors, Consultants, Scholars and such other persons who may contribute to the advancement of the objects of the University; (ix) to create administrative, ministerial and other posts and to make appointments thereto; (x) to lay down conditions of service of all categories of employees, including their code of conduct; (xi) to establish and maintain University Colleges and University Institutes for imparting instruction and conducting research; (xii) to admit to its privileges colleges and institutions situated within the territorial jurisdiction of the University, as University Colleges, Constituent Institutes and Constituent Colleges, and to withdraw all or any of those privileges in accordance with such conditions as may be prescribed by the Statutes; (xiii) to confer autonomous status on a college or an institution or a Department, as the case may be, and to withdraw such status, in accordance with the Statutes; (xiv) to co-operate or collaborate or associate with any other University or authority or institution of higher learning in such manner as may be prescribed and for such purposes as the University may determine; (xv) to determine standards of admission, including examination, evaluation or any other method of testing, to the University, and the institutions maintained by or admitted to the privileges of the University; ----- (xvi) to demand and receive payment of fees and other charges; (xvii) to establish and recognise hostels and supervise the residence of the students of the University, make arrangements for promoting their health and general welfare and guide the Constituent Colleges and the Constituent Institutes to like ends in respect of the students enrolled thereat; (xviii) to regulate and enforce discipline among the students and the employees, and to take such disciplinary measures in this regard as may be deemed by the University to be necessary; (xix) to institute and award fellowships, scholarships, studentships, medals and prizes; (xx) to receive benefactions, donations and gifts and to acquire, hold, manage and dispose of any property, movable or immovable, including trust and endowment properties, for the purposes of the University: Provided that no immovable property shall be disposed off except with the prior approval of the Central Government; (xxi) to borrow, with the approval of the Central Government, on the security of the property of the University, money for the purposes of the University; and (xxii) to do all such other acts and things as may be necessary, incidental or conducive to the attainment of all or any of the objects of the University. **8. Jurisdiction.—(1) Save as otherwise provided by this Act, the powers conferred on the University** shall be exercisable in respect of the area within a radius of sixteen kilometres from the Convocation Hall of the University, without prejudice to the territorial jurisdiction over the said area that may be assigned to any other University. (2) On and from the appointed day, all institutions admitted to the privileges of, or maintained by, the University of Allahabad as incorporated under the Uttar Pradesh State Universities Act, 1973 (President's Act 10 of 1973) shall stand admitted to the privileges of, or maintained by, the University and shall be governed by such conditions as may be prescribed by Statutes. **9. University open to all persons irrespective of gender, class or creed.—The University shall be** open to all persons of either sex and of whatever caste, creed, race or class and it shall not be lawful for the University to adopt or impose on any person, any test whatsoever of religious belief or profession in order to entitle him to be appointed as a teacher of the University or to hold any office therein or be admitted as a student in the University or to graduate thereat or to enjoy or exercise any privilege thereof: Provided that nothing in this section shall be deemed to prevent the University from making special provisions for the employment or admission of women, physically handicapped or of persons belonging to the weaker sections of the society and, in particular, of the Scheduled Castes and the Scheduled Tribes. **10. The Visitor.—(1) The President of India shall be the Visitor of the University.** (2) The Visitor may, from time to time, appoint one or more persons to review the work and progress of the University, including the colleges and institutions maintained by it, and to submit a report thereon; and upon receipt of such report, the Visitor may, after obtaining the views of the Executive Council thereon through the Vice-Chancellor, take such action and issue such directions as he considers necessary in respect of any of the matters dealt with in the report and the University shall be bound to comply with such directions. (3) The Visitor shall have the right to cause an inspection to be made, by such person or persons as he may direct, of the University, its buildings, libraries, laboratories and equipment, and of any college or institution maintained by the University or admitted to its privileges; and also of the examinations, teaching and other work conducted or done by the University and to cause an inquiry to be made in like manner in respect of any matter connected with the administration or finances of the University, and the said colleges and institutions. ----- (4) The Visitor shall, in every matter referred to in sub-section (3), give notice of his intention to cause an inspection or inquiry to be made— (a) to the University, if such inspection or inquiry is to be made in respect of the University or any college or institution maintained by it, or (b) to the Management of the college or institution, if the inspection or inquiry is to be made in respect of a college or institution admitted to the privileges of the University, and the University or the Management, as the case may be, shall have the right to make such representations to the Visitor, as it may consider necessary. (5) After considering the representations, if any, made by the University or the Management, as the case may be, the Visitor may cause to be made such inspection or inquiry as is referred to in sub-section (3). (6) Where any inspection or inquiry has been caused to be made by the Visitor, the University or the Management shall be entitled to appoint a representative, who shall have the right to be present and be heard at such inspection or inquiry. (7) The Visitor may, if the inspection or inquiry is made in respect of the University or any college or institution maintained by it, address the Vice-Chancellor with reference to the result of such inspection or inquiry together with such views and advice with regard to the action to be taken thereon, as the Visitor may be pleased to offer, and on receipt of address made by the Visitor, the Vice-Chancellor shall communicate to the Executive Council, the views of the Visitor with such advice as the Visitor may offer upon the action to be taken thereon. (8) The Visitor may, if the inspection or inquiry is made in respect of any college or institution admitted to the privileges of the University, address the Management concerned through the Vice-Chancellor with reference to the result of such inspection or inquiry, his views thereon and such advice as he may be pleased to offer upon the action to be taken thereon. (9) The Executive Council or the Management, as the case may be, communicate, through the Vice-Chancellor to the Visitor such action, if any, as it proposes to take or has been taken upon the result of such inspection or inquiry. (10) Where, the Executive Council or the Management, as the case may be, does not, within a reasonable time, take action to the satisfaction of the Visitor, the Visitor may, after considering any explanation furnished or representation made by the Executive Council or the Management, issue such directions as he may think fit and the Executive Council or the Management, as the case may be, shall comply with such directions. (11) Without prejudice to the foregoing provisions of this section, the Visitor may, by order in writing, annul any proceeding of the University which is not in conformity with the Act or the Statutes or the Ordinances: Provided that before making any such order, the Visitor shall call upon the Registrar to show cause why such an order should not be made, and, if any cause is shown within a reasonable time, he shall consider the same. (12) The Visitor shall have such other powers as may be prescribed by the Statutes. **11. The Chief Rector.—The Governor of the State of Uttar Pradesh shall be the Chief Rector of the** University. **12. Officers of University.—The following shall be the officers of the University,—** (1) the Chancellor; (2) the Vice-Chancellor; (3) the Pro-Vice-Chancellor; (4) the Deans of Faculties; (5) the Registrar; ----- (6) the Finance Officer; and (7) such other officers as may be declared by the Statutes to be officers of the University. **13. The Chancellor.—(1) The Chancellor shall be appointed by the Visitor in such manner as may be** prescribed by the Statutes. (2) The Chancellor shall, by virtue of his office, be the head of the University and shall, if present, preside at the Convocations of the University held for conferring degrees and meetings of the Court. **14. The Vice-Chancellor.—(1) The Vice-Chancellor shall be appointed by the Visitor in such** manner and on such terms and conditions of service as may be prescribed by the Statutes. (2) The Vice-Chancellor shall be the principal executive and academic officer of the University and shall exercise general supervision and control over the affairs of the University and give effect to the decisions of all the authorities of the University. (3) The Vice-Chancellor may, if he is of the opinion that immediate action is necessary on any matter, exercise any power conferred on any authority of the University by or under this Act and shall report to such authority at its next meeting the action taken by him on such matter: Provided that such exercise of power shall be made only in emergent situations and in no case in respect of creation, and upgradation of posts and appointments thereto: Provided further that if the authority concerned is of the opinion that such action ought not to have been taken, it may refer the matter to the Visitor whose decision thereon shall be final: Provided also that any person in the service of the University who is aggrieved by the action taken by the Vice-Chancellor under this sub-section shall have the right to appeal against such action to the Executive Council within three months from the date on which decision on such action is communicated to him and thereupon the Executive Council may confirm, modify or reverse the action taken by the Vice-Chancellor. (4) The Vice-Chancellor, if he is of the opinion that any decision of any authority of the University is beyond the powers of the authority conferred by the provisions of this Act, the Statutes or the Ordinances or that any decision taken is not in the interest of the University, may ask the authority concerned to review its decision within sixty days of such decision and if the authority refuses to review the decision either in whole or in part or no decision is taken by it within the said period of sixty days, the matter shall be referred to the Visitor whose decision thereon shall be final. (5) The Vice-Chancellor shall exercise such other powers and perform such other duties as may be prescribed by the Statutes or the Ordinances. **15. The Pro-Vice-Chancellor.—The Pro-Vice-Chancellor shall be appointed in such manner and on** such terms and conditions of service, and shall exercise such powers and perform such duties, as may be prescribed by the Statutes. **16. The Deans of Faculties.—Every Dean of Faculty shall be appointed in such manner and shall** exercise such powers and perform such duties as may be prescribed by the Statutes. **17. The Registrar.—(1) The Registrar shall be appointed in such manner and on such terms and** conditions of service as may be prescribed by the Statutes. (2) The Registrar shall have the power to enter into agreements, sign documents and authenticate records on behalf of the University and shall exercise such powers and perform such duties as may be prescribed by the Statutes. **18. The Finance Officer.—The Finance Officer shall be appointed in such manner and on such terms** and conditions of service, and shall exercise such powers and perform such duties, as may be prescribed by the Statutes. **19. Other officers.—The manner of appointment and powers and duties of other officers of the** University shall be prescribed by the Statutes. ----- **20. Authorities of University.—The following shall be the authorities of the University,—** (1) the Court; (2) the Executive Council; (3) the Academic Council; (4) the Boards of Faculties; (5) the Finance Committee; and (6) such other authorities as may be declared by the Statutes to be authorities of the University. **21. The Court.—(1) The constitution of the Court and the term of office of its members shall be** prescribed by the Statutes. (2) Subject to the provisions of this Act, the Court shall have the following powers and functions, namely:— (a) to review, from time to time, the broad policies and programmes of the University and to suggest measures for the improvement and development of the University; (b) to consider and pass resolutions on the annual report and annual accounts of the University and the audit report on such accounts; (c) to advise the Visitor in respect of any matter which may be referred to it for advice; and (d) to perform such other functions as may be prescribed by the Statutes. **22. The Executive Council.—(1) The Executive Council shall be the principal executive body of the** University. (2) The constitution of the Executive Council, the term of office of its members and its powers and functions shall be prescribed by the Statutes. **23. The Academic Council.—(1) The Academic Council shall be the principal academic body of the** University and shall, subject to the provisions of this Act, the Statutes and the Ordinances, co-ordinate and exercise general supervision over the academic policies of the University. (2) The constitution of the Academic Council, the term of office of its members and its powers and functions shall be prescribed by the Statutes. **24. The Finance Committee.—The constitution, powers and functions of the Finance Committee** shall be prescribed by the Statutes. **25. Other authorities.—The constitution, powers and functions of the Boards of Faculties and such** other authorities as may be declared by the Statutes to be authorities of the University shall be prescribed by the Statutes. **26. The Faculties and Departments.—(1) The University shall have such Faculties as are prescribed** by the Statutes. (2) Each Faculty shall have such Departments as are prescribed by the Statutes, and each Department shall have such subjects of study as may be assigned to it by the Ordinances. **27. Power to make Statutes.—Subject to the provisions of this Act, the Statutes may provide for all** or any of the following matters, namely:— (a) the constitution, powers and functions of the authorities and other bodies of the University as may be constituted from time to time; (b) the appointment and continuance in office of the members of the said authorities and bodies, the filling up of vacancies of members, and all other matters relating to those authorities and other bodies for which it may be necessary or desirable to provide; (c) the appointment, powers and duties of the officers of the University and their emoluments and conditions of service; ----- (d) the appointment of teachers, academic staff and other employees of the University, their emoluments and conditions of service; (e) the recognition of persons as University recognised teachers; (f) the declaration of persons working in other Universities or other organisations as teachers of the University for a specified period; (g) the conditions of service of employees of the University including provisions for pension, insurance and provident fund, the manner of termination of service and disciplinary action relating to such employees; (h) the principles governing the seniority of service of the employees of the University; (i) the procedure for arbitration in cases of dispute between employees or students and the University; (j) the procedure for appeal to the Executive Council by any employee or student against the action of any officer or authority of the University; (k) the conditions under which colleges and institutions may be admitted to the privileges of the University and the withdrawal of such privileges; (l) the establishment and abolition of Faculties, Departments, University Institutes, Centres and University Colleges; (m) the conferment of autonomous status on a college or institution or a Department and the withdrawal of such status; (n) the conferment of honorary degrees; (o) the withdrawal of degrees, diplomas, certificates and other academic distinctions; (p) the registration of graduates; (q) the delegation of powers vested in the authorities or officers of the University; (r) the maintenance of discipline among the employees and students; and (s) all other matters which by this Act are to be or may be provided for by the Statutes. **28. Statutes, how to be made.—(1) The First Statutes are those set out in the Schedule.** (2) The Executive Council may, from time to time, make new or additional Statutes or may amend or repeal the Statutes referred to in sub-section (1): Provided that the Executive Council shall not make, amend or repeal any Statute affecting the status, powers or constitution of any authority of the University until such authority has been given an opportunity of expressing an opinion in writing on the proposed changes, and any opinion so expressed shall be considered by the Executive Council. (3) Every new Statute or addition to the Statutes or any amendment or repeal of a Statute shall require the assent of the Visitor who may assent thereto or withhold assent or remit to the Executive Council for re-consideration. (4) A new Statute or a Statute amending or repealing an existing Statute shall have no validity unless it has been assented to by the Visitor. (5) Notwithstanding anything contained in the foregoing sub-sections, the Visitor may make new or additional Statutes, or amend or repeal the Statutes referred to in sub-section (1), during the period of three years immediately after the commencement of this Act: Provided that the Visitor may, on the expiry of the said period of three years, make, within one year from the date of such expiry, such detailed Statutes as he may consider necessary and such detailed Statutes shall be laid before both Houses of Parliament. (6) Notwithstanding anything contained in this section, the Visitor may direct the University to make provisions in the Statutes in respect of any matter specified by him and if the Executive Council is unable to implement such direction within sixty days of its receipt, the Visitor may, after considering the reasons, ----- if any, communicated by the Executive Council for its inability to comply with such direction, make or amend the Statutes suitably. **29. Power to make Ordinances.—(1) Subject to the provisions of this Act and the Statutes, the** Ordinances may provide for all or any of the following matters, namely:— (a) the admission and enrolment of students to the University and institutions maintained by or admitted to the privileges of the University; (b) the courses of study to be laid down for all degrees, diplomas and certificates of the University; (c) the medium of instruction and examination; (d) the award of degrees, diplomas, certificates and other academic distinctions, the qualifications for the same and the means to be taken relating to the granting and obtaining of the same; (e) the fees to be charged for courses of study in the University and for admission to the examinations, degrees and diplomas of the University; (f) the institution of, and conditions for award of fellowships, scholarships, studentships, medals and prizes; (g) the conduct of examinations, including the term of office and manner of appointment and the duties of examining bodies, examiners and moderators; (h) the conditions of residence of students of the University; (i) the special arrangements, if any, which may be made for the residence, discipline and teaching of women students and the prescribing of special courses of studies for them; (j) the establishment of Centres, University Institutes, Boards of Studies, Specialised Laboratories and Committees; (k) the creation, composition and functions of any other body which is considered necessary for improving the academic life of the University; (l) the manner of co-operation and collaboration with other Universities, Institutions and other Agencies including learned bodies or associations; (m) the setting up of a machinery for redressal of grievances of employees; and (n) all other matters which by this Act or the Statutes, are to be or may be, provided for by the Ordinances. (2) The first Ordinances shall be made by the Vice-Chancellor with the previous approval of the Central Government and the Ordinances so made may be amended, repealed or added to at any time by the Executive Council in the manner prescribed by the Statutes. **30. Regulations.—The authorities of the University may make Regulations consistent with this Act,** the Statutes and the Ordinances for the conduct of their own business and that of the Committees, if any, appointed by them and not provided for by this Act, the Statutes or the Ordinances and for such matters as may be prescribed by the Statutes or the Ordinances. **31. Annual report.—(1) The annual report of the University shall be prepared under the direction of** the Executive Council, which shall include, among other matters, the steps taken by the University towards the fulfilment of its objects and shall be submitted to the Court on or after such date as may be prescribed by the Statutes and the Court shall consider the report in its annual meeting. (2) The Court shall submit the annual report to the Visitor along with its comments, if any. (3) A copy of the annual report, as prepared under sub-section (1), shall also be submitted to the Central Government, which shall, as soon as may be, cause the same to be laid before both Houses of Parliament. **32. Accounts and audit.—(1) The annual accounts and balance sheet of the University shall be** prepared under the directions of the Executive Council and shall once at least every year, and at intervals ----- of not more than fifteen months, be audited by the Comptroller and Auditor-General of India or by such persons as he may authorise in this behalf. (2) A copy of the annual accounts together with the audit report thereon shall be submitted to the Court and the Visitor along with the observations of the Executive Council. (3) Any observations made by the Visitor on the annual accounts shall be brought to the notice of the Court and the observations of the Court, if any, shall, after being considered by the Executive Council, be submitted to the Visitor. (4) A copy of the annual accounts together with the audit report as submitted to the Visitor, shall also be submitted to the Central Government, which shall, as soon as may be, cause the same to be laid before both Houses of Parliament. (5) The audited annual accounts after having been laid before both Houses of Parliament shall be published in the Gazette of India. **33. Furnishing returns, etc.—The University shall furnish to the Central Government such returns** or other information with respect to its property or activities as the Central Government may, from time to time, require. **34. Conditions of service of employees.—(1) Every employee of the University shall be appointed** under a written contract, which shall be lodged with the University and a copy of which shall be furnished to the employee concerned. (2) Any dispute arising out of the contract between the University and any employee shall, at the request of the employee, be referred to a Tribunal of Arbitration consisting of one member appointed by the Executive Council, one member nominated by the employee concerned and an umpire appointed by the Visitor. (3) The decision of the Tribunal shall be final and no suit shall lie in any civil court in respect of the matters decided by the Tribunal. (4) Every request made by the employee under sub-section (2), shall be deemed to be a submission to arbitration upon the terms of this section within the meaning of the Arbitration and Conciliation Act, 1996 (26 of 1996). (5) The procedure for regulating the work of the Tribunal shall be prescribed by the Statutes. **35. Procedure of appeal and arbitration in disciplinary cases against students.—(1) Any student** or candidate for an examination whose name has been removed from the rolls of the University by the orders or resolution of the Vice-Chancellor, Discipline Committee or Examination Committee, as the case may be, and who has been debarred from appearing at the examinations of the University for more than one year, may, within ten days of the date of receipt of such orders or copy of such resolution by him, appeal to the Executive Council and the Executive Council may confirm, modify or reverse the decision of the Vice-Chancellor or the Committee, as the case may be. (2) Any dispute arising out of any disciplinary action taken by the University against a student shall, at the request of such student, be referred to a Tribunal of Arbitration and the provisions of sub-sections (2), (3), (4) and (5) of section 34 shall, as far as may be, apply to a reference made under this sub-section. **36. Right to appeal.—Every employee or student of the University or of an Institution maintained by** the University or admitted to its privileges shall, notwithstanding anything contained in this Act, have a right to appeal within such time as may be prescribed by the Statutes, to the Executive Council against the decision of any officer or authority of the University, and thereupon the Executive Council may confirm, modify or reverse the decision appealed against. **37. Provident and pension funds.—(1) The University shall constitute for the benefit of its** employees such provident fund or pension fund or provide such insurance schemes as it may deem fit in such manner and subject to such conditions as may be prescribed by the Statutes. ----- (2) Where such provident fund or pension fund has been so constituted, the Central Government may declare that the provisions of the Provident Funds Act, 1925 (19 of 1925), shall apply to such fund as if it were a Government provident fund. **38. Disputes as to constitution of University authorities and bodies.—If any question arises as to** whether any person has been duly appointed or elected as, or is entitled to be, a member of any authority or other body of the University, the matter shall be referred to the Visitor whose decision thereon shall be final. **39. Filling of casual vacancies.—All casual vacancies among the members, other than** _ex officio_ members, of any authority or other body of the University shall be filled, as soon as may be, by the person or body who appoints, elects or co-opts the member whose place has become vacant and person appointed, elected or co-opted to a casual vacancy shall be a member of such authority or body for the residue of the term for which the person whose place he fills would have been member. **40. Proceedings of University authorities or bodies not invalidated by vacancies.—No act or** proceedings of any authority or other body of the University shall be invalid merely by reason of the existence of a vacancy or vacancies among its members. **41. Protection of action taken in good faith.—No suit or other legal proceeding shall lie against any** officer or other employee of the University for anything which is in good faith done or intended to be done in pursuance of any of the provisions of this Act, the Statutes or the Ordinances. **42. Mode of proof of University record.—Notwithstanding anything contained in the Indian** Evidence Act, 1872 (1 of 1872) or in any other law for the time being in force, a copy of any receipt, application, notice, order, proceeding or resolution of any authority or other body of the University, or any other document in possession of the University, or any entry in any register duly maintained by the University, if certified by the Registrar, shall be received as _prima facie evidence of such receipt,_ application, notice, order, proceeding, resolution or document or the existence of entry in the register and shall be admitted as evidence of the matters and transactions therein where the original thereof would, if produced, have been admissible in evidence. **43. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made under this section after the expiry of three years from the commencement of this Act. (2) Every order made under sub-section (1) shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the order or both Houses agree that the order should not be made, the order shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that order. **44. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid** **before Parliament.—(1) Every Statute, Ordinance or Regulation made under this Act shall be published** in the Official Gazette. (2) Every Statute, Ordinance or Regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the Statute, Ordinance or Regulation or both Houses agree that the Statute, Ordinance or Regulation should not be made, the Statute, Ordinance or Regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that Statute, Ordinance or Regulation. ----- (3) The power to make Statutes, Ordinances or Regulations shall include the power to give retrospective effect, from a date not earlier than the date of commencement of this Act, to the Statute, Ordinance or Regulation or any of them but no retrospective effect shall be given to any Statute, Ordinance or Regulation so as to prejudicially affect the interests of any person to whom such Statute, Ordinance or Regulation may be applicable. **45. Transitional provisions.—(1) Notwithstanding anything contained in this Act and the Statutes,—** (a) the first Chancellor and the first Vice-Chancellor shall be appointed by the Central Government in such manner and on such conditions as may be deemed fit and each of the said officers shall hold office for such term, not exceeding five years, as may be specified by the Central Government; (b) the first Registrar and the first Finance Officer shall be appointed by the Central Government and each of the said officers shall hold office for a term of three years; (c) the first Court and the first Executive Council shall consist of not more than thirty-one members and fifteen members, respectively, who shall be nominated by the Central Government and shall hold office for a term of three years; (d) the first Academic Council shall consist of not more than thirty-one members, who shall be nominated by the Central Government and shall hold office for a term of three years: Provided that if any vacancy occurs in the above-mentioned offices or authorities, the same shall be filled by appointment or nomination, as the case may be, by the Central Government, and the person so appointed or nominated shall hold office for so long as the officer or member in whose place he is appointed or nominated would have held office if such vacancy had not occurred. (2) Till such time as the first Ordinances are not made under sub-section (2) of section 29, in respect of the matters that are to be provided for by the Ordinances under this Act and Statutes, the relevant provisions of the Statutes and the Ordinances made immediately before the commencement of this Act under the provisions of the Uttar Pradesh State Universities Act, 1973 (President's Act 10 of 1973) shall be applicable insofar as they are not inconsistent with the provisions of this Act and the Statutes. **46. Amendment of President's Act 10 of 1973.—(1) In the Uttar Pradesh State Universities Act,** 1973,— (a) the word “Allahabad”, except in clause (b) of sub-section (2) of section 12, sub-section (1) of section 31B, clause (b) of sub-section (1) of section 74, clause (j) of sub-section (3) of section 74, and entries relating to Serial No. 5 in the Schedule, wherever it occurs, shall be omitted; (b) in the Schedule, Serial No. 2 and the entries relating thereto shall be omitted. (2) Notwithstanding such omission,— (a) all appointments made, orders issued, degrees and other academic distinctions conferred, diplomas and certificates awarded, privileges granted, or other things done (including the registration of graduates) under the Uttar Pradesh State Universities Act, 1973 (President's Act 10 of 1973), shall be deemed to have been respectively made, issued, conferred, awarded, granted or done under the corresponding provisions of this Act and, except as otherwise provided by or this Act or the Statutes, continue in force unless and until they are superseded by any order made under this Act or the Statutes; and (b) all proceedings of Selection Committees for the appointment or promotion of teachers that took place before the commencement of this Act and all actions of the Executive Council in respect of the recommendations of such Selection Committees where no orders of appointment on the basis thereof were passed before the commencement of this Act shall, notwithstanding that the procedure for selection has been modified by this Act, be deemed to have been valid but further proceeding in connection with such pending selections shall be taken in accordance with the provisions of this Act and be continued from the stage where they stood immediately before such commencement, except if the concerned authorities take, with the approval of the Visitor, a decision to the contrary. ----- THE SCHEDULE (see section 28) THE STATUTES OF THE UNIVERSITY **1. The Chancellor.—(1) The Chancellor shall be appointed by the Visitor from a panel of not less** than three persons recommended by the Executive Council from amongst persons of eminence in the academic or public life of the country: Provided that if the Visitor does not approve of any of the persons so recommended, he may call for fresh recommendations from the Executive Council. (2) The Chancellor shall hold office for a term of five years and shall not be eligible for re-appointment: Provided that notwithstanding the expiry of his term of office the Chancellor shall continue to hold office until his successor enters upon his office. **2. The Vice-Chancellor.—(1) The Vice-Chancellor shall be appointed by the Visitor from a panel of** not less than three persons who shall be recommended by a Committee as constituted under clause (2): Provided that if the Visitor does not approve of any of the persons included in the panel, he may call for an extended or a fresh panel. (2) The Committee referred to in clause (1) shall consist of three persons, out of whom two shall be nominated by the Executive Council and one by the Visitor and the nominee of the Visitor shall be the convener of the Committee: Provided that none of the members of the Committee shall be an employee of the University or an institution maintained by, or admitted to the privileges of, the University or a member of any authority of the University. (3) The Vice-Chancellor shall be a whole-time salaried officer of the University. (4) The Vice-Chancellor shall hold office for a term of five years from the date on which he enters upon his office, or until he attains the age of sixty-five years, whichever is earlier, and he shall not be eligible for re-appointment: Provided that notwithstanding the expiry of the said period of five years, he shall continue in office until his successor is appointed and enters upon his office: Provided further that the Visitor may direct any Vice-Chancellor after his term has expired, to continue in office for such period, not exceeding a total period of one year, as may be specified by him or till his successor is appointed and enters upon his office, whichever is earlier. (5) The emoluments and other conditions of service of the Vice-Chancellor shall be as follows:— (i) the Vice-Chancellor shall be paid a monthly salary and allowances, other than house rent allowance, at the rates fixed by the Central Government from time to time and he shall be entitled, without payment of rent, to use a furnished residence throughout his term of office and no charge shall fall on the Vice-Chancellor in respect of the maintenance of such residence; (ii) the Vice-Chancellor shall be entitled to such terminal benefits and allowances as may be fixed by the Central Government from time to time: Provided that where an employee of the University, or a college or an institution maintained by, or admitted to the privileges of, the University, or of any other University or any college or institution maintained by or admitted to the privileges of, such other University, is appointed as the Vice-Chancellor, he may be allowed to continue to contribute to any provident fund of which he is a member and the University shall contribute to the account of such person in that provident fund at the same rate at which the person had been contributing immediately before his appointment as the Vice-Chancellor: Provided further that where such employee had been member of any pension scheme, the University shall make the necessary contribution to such scheme; ----- (iii) the Vice-Chancellor shall be entitled to travelling allowance at such rates as may be fixed by the Executive Council; (iv) the Vice-Chancellor shall be entitled to leave on full pay at the rate of thirty days in a calendar year and the leave shall be credited to his account in advance in two half-yearly instalments of fifteen days each on the first day of January and July every year: Provided that if the Vice-Chancellor assumes or relinquishes charge of the office of the Vice-Chancellor during the currency of a half year, the leave shall be credited proportionately at the rate of two and-a-half days for each completed month of service; (v) in addition to the leave referred to in sub-clause (iv), the Vice-Chancellor shall also be entitled to half-pay leave at the rate of twenty days for each completed year of service, and half-pay leave may also be availed of as commuted leave on full pay on medical certificate: Provided that when such commuted leave is availed of, twice the amount of half-pay leave shall be debited against half-pay leave due. (6) If the office of the Vice-Chancellor becomes vacant due to death, resignation or otherwise, or if he is unable to perform his duties due to ill-health or any other cause, the Pro-Vice-Chancellor shall perform the duties of the Vice-Chancellor: Provided that if the Pro-Vice-Chancellor is not available, the senior most Professor shall perform the duties of the Vice-Chancellor until a new Vice-Chancellor assumes office or until the existing Vice-Chancellor resumes the duties of his office, as the case may be. **3. Powers and duties of the Vice-Chancellor.—(1) The Vice-Chancellor shall be** _ex officio_ Chairman of the Executive Council, the Academic Council and the Finance Committee and shall, in the absence of the Chancellor, preside at the Convocations held for conferring degrees and at meetings of the Court. (2) The Vice-Chancellor shall be entitled to be present at, and address, any meeting of any authority or other body of the University, but shall not be entitled to vote thereat unless he is a member of such authority or body. (3) It shall be the duty of the Vice-Chancellor to see that this Act, the Statutes, the Ordinances and the Regulations are duly observed and he shall have all the powers necessary to ensure such observance. (4) The Vice-Chancellor shall have all the powers necessary for the proper maintenance of discipline in the University and he may delegate any such powers to such person or persons as he deems fit. (5) The Vice-Chancellor shall have the power to convene or cause to be convened the meetings of the Executive Council, the Academic Council and the Finance Committee. **4. Pro-Vice-Chancellor.—(1) The Pro-Vice-Chancellor shall be appointed by the Executive Council** on the recommendation of the Vice-Chancellor: Provided that where the recommendation of the Vice-Chancellor is not accepted by the Executive Council, the matter shall be referred to the Visitor who may either appoint the person recommended by the Vice-Chancellor or ask the Vice-Chancellor to recommend another person to the Executive Council: Provided further that the Executive Council may, on the recommendation of the Vice-Chancellor, appoint a Professor to discharge the duties of a Pro-Vice-Chancellor in addition to his own duties as a Professor. (2) The term of office of a Pro-Vice-Chancellor shall be such as may be decided by the Executive Council but it shall not in any case exceed five years or until the expiration of the term of office of the Vice-Chancellor, whichever is earlier: Provided that a Pro-Vice-Chancellor whose term of office has expired shall be eligible for re-appointment: Provided further that, in any case, a Pro-Vice-Chancellor shall retire on attaining the age of sixty-five years: ----- Provided also that a Pro-Vice-Chancellor shall, while discharging the duties of the Vice-Chancellor under clause (6) of Statute 1, continue in office notwithstanding the expiration of his term of office as Pro-Vice-Chancellor, until the Vice-Chancellor resumes office or a new Vice-Chancellor assumes office, as the case may be. (3) The emoluments and other terms and conditions of service of a Pro-Vice-Chancellor shall be such as may be prescribed by the Ordinances. (4) The Pro-Vice-Chancellor shall assist the Vice-Chancellor in respect of such matters as may be specified by the Vice-Chancellor in this behalf, from time to time, and shall also exercise such powers and perform such duties as may be assigned or delegated to him by the Vice-Chancellor. **5. Deans of Faculties.—(1) Every Dean of Faculty shall be appointed by the Vice-Chancellor from** amongst the Professors in the Faculty by rotation in the order of seniority for a period of three years: Provided that in case there is only one Professor or no Professor in a Faculty, the Dean shall be appointed, for the time being, from amongst the Professor, if any, and the Readers in the Faculty by rotation in the order of seniority: Provided further that in the case of a Faculty comprising a University College, the Principal of such University College shall be the ex officio Dean of the Faculty. (2) When the office of the Dean is vacant or when the Dean is, by reason of illness, absence or any other cause, unable to perform duties of his office, the duties of the office shall be performed by the senior-most Professor or Reader, as the case may be, in the Faculty. (3) The Dean shall be the ex officio Chairman of the Board of the Faculty and shall be responsible for the conduct and maintenance of the standards of teaching and research in the Faculty and shall have such other functions as may be prescribed by the Ordinances. (4) The Dean shall have the right to be present and to speak at any meeting of the Boards of Studies or Committees of the Faculty, but shall not have the right to vote thereat unless he is a member thereof. (5) Notwithstanding anything contained in clause (1), every teacher serving as Dean of a Faculty immediately before the appointed day, shall continue as such up to the date on which he would have continued as Dean if the Act had not been enacted and thereafter the Dean of the concerned Faculty shall be appointed in accordance with the provisions of clause (1) above. **6. The Registrar.—(1) The Registrar shall be appointed by the Executive Council on the** recommendation of a Selection Committee constituted for the purpose and shall be a whole-time salaried officer of the University. (2) He shall be appointed for a term of five years and shall be eligible for re-appointment. (3) The emoluments and other terms and conditions of service of the Registrar shall be such as may be prescribed by the Ordinances: Provided that the Registrar shall retire on attaining the age of sixty-two years: Provided further that a Registrar shall, notwithstanding his attaining the age of sixty-two years, continue in office until his successor is appointed and enters upon his office or until the expiry of a period of one year, whichever is earlier. (4) When the office of the Registrar is vacant or when the Registrar is, by reason of illness, absence or any other cause, unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) (a) The Registrar shall have power to take disciplinary action against such of the employees, excluding teachers and other academic staff, as may be specified in the order of the Executive Council and to suspend them pending inquiry, to administer warnings to them or to impose on them the penalty of censure or the withholding of increment: Provided that no such penalty shall be imposed unless the person has been given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. ----- (b) An appeal shall lie to the Vice-Chancellor against any order of the Registrar imposing any of the penalties specified in sub-clause (a). (c) In a case where the inquiry discloses that a punishment beyond the power of the Registrar is called for, the Registrar shall, upon the concluding of the inquiry, make a report to the Vice-Chancellor along with his recommendations: Provided that an appeal shall lie to the Executive Council against an order of the Vice-Chancellor imposing any penalty. (6) The Registrar shall be ex officio Secretary of the Court, the Executive Council and the Academic Council, but shall not be deemed to be a member of any of these authorities. (7) It shall be the duty of the Registrar— (a) to be the custodian of the records, the common seal and such other property of the University as the Executive Council shall commit to his charge; (b) to issue all notices convening meetings of the Court, the Executive Council, and the Academic Council, the college development council and of any Committees appointed by those authorities; (c) to keep the minutes of all the meetings of the Court, the Executive Council and the Academic Council and of any Committees appointed by those authorities; (d) to conduct the official correspondence of the Court, the Executive Council and the Academic Council; (e) to arrange for and superintend the examinations of the University in the manner prescribed by the Ordinances; (f) to supply to the Visitor copies of the agenda of the meetings of the authorities of the University as soon as they are issued and the minutes of such meetings; (g) to represent the University in suits or proceedings by or against the University, sign powers of attorney and verify pleadings or depute his representative for the purpose; and (h) to perform such other duties as may be specified in the Statutes, the Ordinances or the Regulations or as may be required from time to time by the Executive Council or the Vice-Chancellor. **7. The Finance Officer.—(1) The Finance Officer shall be appointed by the Executive Council on** the recommendations of a Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. (2) The Finance Officer shall be appointed for a term of five years and shall be eligible for re-appointment. (3) The emoluments and other terms and conditions of service of the Finance Officer shall be such as may be prescribed by the Ordinances: Provided that the Finance Officer shall retire on attaining the age of sixty years: Provided further that the Finance Officer shall, notwithstanding his attaining the age of sixty years, continue in office until his successor is appointed and enters upon his office or until the expiry of a period of one year, whichever is earlier. (4) When the office of the Finance Officer is vacant or when the Finance Officer is, by reason of illness, absence or any other cause, unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) The Finance Officer shall be _ex officio Secretary of the Finance Committee, but shall not be_ deemed to be a member of such Committee. (6) The Finance Officer shall— (a) exercise general supervision over the funds of the University and shall advise it as regards its financial policy; and ----- (b) perform such other financial functions as may be assigned to him by the Executive Council or as may be prescribed by the Statutes or the Ordinances. (7) Subject to the control of the Executive Council, the Finance Officer shall— (a) hold and manage the property and investments of the University including trust and endowed property; (b) ensure that the limits fixed by the Executive Council for recurring and non-recurring expenditure for a year are not exceeded and that all moneys are expended on the purpose for which they are granted or allotted; (c) be responsible for the preparation of annual accounts and the budget of the University and for their presentation to the Executive Council; (d) keep a constant watch on the state of the cash and bank balances and on the state of investments; (e) watch the progress of the collection of revenue and advise on the methods of collection employed; (f) ensure that the registers of buildings, land, furniture and equipment are maintained up-to-date and that stock-checking is conducted, of equipment and other consumable materials in all offices, Departments, University Institutes, Centres and Specialised Laboratories; (g) bring to the notice of the Vice-Chancellor unauthorised expenditure and other financial irregularities and suggest disciplinary action against persons at fault; and (h) call for from any office, Department, University Institute, independent Centre, Specialised Laboratory or User Facility maintained by the University any information or returns that he may consider necessary for the performance of his duties. (8) Any receipt given by the Finance Officer or the person or persons duly authorised in this behalf by the Executive Council for any money payable to the University shall be sufficient discharge for payment of such money. **8. The Court.—(1) The Court shall consist of the following members, namely:—** (a) Ex officio _Members_ (i) the Chancellor; (ii) the Vice-Chancellor; (iii) the Pro-Vice-Chancellor, if any; (iv) the members of the Executive Council other than the Vice-Chancellor, the Pro-Vice-Chancellor and the Deans of Faculties; (v) the Deans of Faculties; (vi) the Finance Officer; (vii) the Dean of Research and Development, in case he is not a member under any other provision of this sub-clause; (viii) the Dean of College Development, in case he is not a member under any other provision of this sub-clause; (ix) the Librarian; (x) such Heads of Departments, Directors of University Institutes, Directors of Constituent Institutes and Heads of Centres which are not comprised in any University Institute, as are not members under any other provision of this sub-clause; and (xi) two Principals of Constituent Colleges, to be selected by rotation in the order of length of substantive service as Principals. ----- (b) Representatives of the academic staff (i) five Professors, three Readers and three Lecturers from among the University appointed teachers of the Faculties, to be selected by rotation in the order of seniority; (ii) one Professor, one Reader and one Lecturer from among the University recognised teachers of the University Colleges, to be selected by rotation in the order of seniority; (iii) two Professors, two Readers and two Lecturers from among the teachers of the University Institutes, to be selected by rotation in the order of seniority; (iv) two Professors, one Reader and one Lecturer from among the University recognised teachers of the Constituent Institutes, to be selected by rotation in the order of seniority; and (v) six persons from among the University recognised teachers of the Constituent Colleges, to be selected by rotation in the order of seniority, of whom at least two shall be Lecturers. (c) Representatives of Students one student from each group of subjects assigned to the Faculties who, having secured the highest marks in that group of subjects at the preceding degree examination of the University, is pursuing a course of study for a Post-graduate degree in the same group of subjects in the University or in a college or institution maintained by the University or admitted to the privileges of the University: Provided that a representative of students shall no longer continue as such representative on the termination of his enrolment as a student. (d) Representatives of Registered Graduates ten representatives of the registered Graduates, not being persons in the service or students of the University or an institution maintained by or admitted to the privileges of the University or a member of the management of such institution, to be co-opted by the Court in accordance with the procedure laid down in the Regulations. (e) Representatives of Parliament (i) three representatives of Parliament, two to be elected by the Lok Sabha from amongst its own members, in such manner as the Speaker may direct, and one to be elected by the Rajya Sabha from amongst its own members, in such manner as the Chairman may direct: Provided that consequent upon a Member of Parliament becoming a Minister or Speaker/Deputy Speaker, Lok Sabha or Deputy Chairman, Rajya Sabha, his election to the Court shall be deemed to have been terminated. (f) Nominees of the Visitor, the Chief Rector and the Chancellor (i) seven persons representing learned professions and special interests, including representatives of Industry, Commerce, Labour and Agriculture, to be nominated by the Visitor; (ii) two eminent educationists, to be nominated by the Chief Rector; and (iii) three persons of distinction in public life, to be nominated by the Chancellor. (2) The term of office of the members of the Court under sub-clauses (a), (b), (e) and (f) of clause (1) shall be three years and under sub-clauses (c) and (d) thereof shall be one year. (3) An annual meeting of the Court shall be held on a date to be fixed by the Executive Council unless some other date has been fixed by the Court in respect of any year. (4) At the annual meeting of the Court, a report on the working of the University during the previous year, together with a statement of the receipts and expenditure, the balance sheet as audited, and the financial estimates for the next year shall be presented. (5) A copy of the statement of receipts and expenditure, the balance sheet and the financial estimates referred to in clause (4) shall be sent to every member of the Court at least seven days before the date of the annual meeting. ----- (6) Special meetings of the Court may be convened by the Executive Council or the Vice-Chancellor or if there is no Vice-Chancellor, the Pro-Vice-Chancellor or if there is no Pro-Vice-Chancellor, by the Registrar. (7) Twenty-five members of the Court shall form a quorum for a meeting of the Court. **9. The Executive Council.—(1) The Executive Council shall consist of the following members,** namely:— (a) the Vice-Chancellor; (b) the Pro-Vice-Chancellor, if any; (c) three Deans of Faculties, to be selected by rotation in the order in which the Faculties are enumerated in clause (1) to Statute 14; (d) one Director of a Constituent Institute, to be selected by rotation in the order of length of substantive service as such Director; (e) one Principal of a Constituent College, to be selected by rotation in the order of length of substantive service as such Principal; (f) two Professors, two Readers and two Lecturers from among the University appointed teachers, to be selected by rotation in the order of seniority; (g) one person from among the University recognised teachers of University Colleges, to be selected by rotation in the order of seniority; (h) two persons from among the University recognised teachers of Constituent Institutes, to be selected by rotation in the order of seniority, of whom at least one shall be a Lecturer; (i) three persons from among the University recognised teachers of Constituent Colleges, to be selected by rotation in the order of seniority, of whom at least one shall be a Lecturer; (j) four persons to be nominated by the Visitor; (k) one person of academic eminence to be nominated by the Chief Rector; and (l) one person of academic eminence to be nominated by the Chancellor. (2) The term of office of members of the Executive Council under sub-clauses (c) to (g) of clause (1) shall be two years, and of members under sub-clauses (h) to (j) thereof shall be three years. (3) No person shall continue to be a member of the Executive Council in more than one capacity, and whenever a person becomes such member in more than one capacity, he shall within two weeks thereof intimate to the Registrar in writing as to the capacity in which he desires to be such member and vacate the other seat, failing which the seat held by him earlier in point of time shall be deemed to have been vacated. (4) Seven members of the Executive Council shall form a quorum for a meeting of the Executive Council. **10. Powers and functions of the Executive Council.—(1) The Executive Council shall have the** power of management and administration of the revenues and property of the University and the conduct of all administrative affairs of the University not otherwise provided for. (2) Subject to the provisions of the Act, the Statutes and the Ordinances, the Executive Council shall, in addition to all other powers vested in it, have the following powers, namely:— (i) to create teaching and other academic posts, to determine the number and emoluments of such posts and to define the duties and conditions of service of Professors, Readers, Lecturers and other academic staff: Provided that no action shall be taken by the Executive Council in respect of the number and qualifications of teachers and other academic staff otherwise than after consideration of the recommendations of the Academic Council; ----- (ii) to appoint such Professors, Readers, Lecturers and other academic staff, as may be necessary, and the Directors of University Institutes and Heads of independent Centres on the recommendation of the Selection Committee constituted for the purpose and to fill up temporary vacancies therein; (iii) to recognise persons as University recognised teachers in the manner prescribed by the Ordinances; (iv) to create administrative, ministerial and other necessary posts (including Chairs) and to make appointments thereto in the manner prescribed by the Ordinances; (v) to grant leave of absence to any salaried officer of the University other than the Vice-Chancellor, and to make necessary arrangements for the discharge of the functions of such officer during his absence; (vi) to regulate and enforce discipline among employees in accordance with the Statutes and the Ordinances; (vii) to manage and regulate the finances, accounts, investments, property, business and all other administrative affairs of the University and for that purpose to appoint such agents as it may think fit; (viii) to fix limits on the total recurring and the total non-recurring expenditure for a year on the recommendation of the Finance Committee; (ix) to invest any money belonging to the University, including any unapplied income, in such stocks, funds, share or securities, from time to time as it may think fit or in the purchase of immovable property in India, with the like powers of varying such investment from time to time; (x) to transfer or accept transfers of any movable or immovable property on behalf of the University; (xi) to provide buildings, premises, furniture and apparatus and other means needed for carrying on the work of the University; (xii) to enter into, vary, carry out and cancel contracts on behalf of the University; (xiii) to entertain, adjudicate upon, and if thought fit, to redress any grievances of the employees and students of the University who may, for any reason, feel aggrieved; (xiv) to appoint examiners and moderators and, if necessary, to remove them, and to fix their fees, emoluments and travelling and other allowances, after consulting the Academic Council; (xv) to select a common seal for the University and provide for the custody and use of such seal; (xvi) to make such special arrangements as may be necessary for the residence and discipline of women students; (xvii) to institute fellowships, scholarships, studentships, medals and prizes; (xviii) to provide for the appointment of Visiting Professors, Emeritus Professors, Consultants and Scholars and determine the terms and conditions of such appointments; and (xix) to exercise such other powers and perform such other duties as may be conferred or imposed on it by the Act or the Statutes. **11. The Academic Council.—(1) The Academic Council shall consist of the following members,** namely:— (a) the Vice-Chancellor; (b) the Pro-Vice-Chancellor, if any; (c) the Deans of the Faculties; (d) the Dean of Research and Development; (e) the Dean of Students Welfare; (f) the Dean of College Development; (g) the Librarian; ----- (h) such Heads of Departments, Directors of University Institutes and Heads of Centres not comprised in any University Institute, as are not members under sub-clauses (b) to (f): Provided that where a subject assigned to any Faculty is not placed under any Department, the Chairman of the Board of Studies of the subject shall be a member of the Academic Council in case he is not already a member under sub-clauses (b) to (g); (i) one Professor, one Reader and one Lecturer from each Faculty, selected by rotation in the order of seniority of Professors, Readers or Lecturers, as the case may be, of the concerned Faculty; (j) the Directors of Constituent Institutes; (k) one Professor (not being Director) of each Constituent Institute, selected by rotation in the order of seniority; (l) two Principals of Constituent Colleges, selected by rotation in the order of length of substantive service as Principal; (m) two members of the academic staff (not being Principals) of Constituent Colleges from each group of subjects assigned to a Faculty of the University, selected by rotation in the order of seniority as such members of the academic staff of the concerned group of subjects; and (n) five persons, not being persons of academic excellence in the service of the University or a college or an institution admitted to the privileges of the University, to be co-opted by the Academic Council. (2) The term of office of members (other than ex officio members) of the Academic Council shall be three years. (3) Twenty-five members of the Academic Council shall form a quorum for a meeting of the Academic Council. **12. Powers and functions of the Academic Council.—Subject to the provisions of the Act, the** Statutes and the Ordinances, the Academic Council shall, in addition to all other powers vested in it, have the following powers, namely:— (a) to exercise general supervision over the academic policies of the University and to give directions regarding methods of instruction, co-ordination of teaching among the Constituent Colleges, evaluation of research and maintenance and improvement of academic standards; (b) to promote co-ordination between Faculties, Departments, University Institutes and independent Centres, collaboration between the University and Constituent Institutes and establish such committees, boards or schools as may be deemed necessary for these purposes; (c) to consider matters of general academic interest either on its own initiative, or on a reference by a Faculty, University Institute, independent Centre or Constituent Institute or the Executive Council, and to take appropriate action thereon; (d) to advise the Executive Council on all academic matters, including— (i) matters relating to the examinations conducted by the University; (ii) the qualifications required to be possessed by persons imparting instruction in particular subjects for the degrees of the University; and (iii) matters referred to it for advice by the Executive Council; (e) to consider and approve proposals submitted by the Boards of Studies through the Boards of Faculties or by University Institutes or independent Centres or Constituent Institutes in respect of courses of study and research degree programmes; (f) to recommend for the consideration of the Executive Council the principles and criteria on which examiners and Inspectors for various kinds of inspection of the University Colleges, Constituent Institutes and Constituent Colleges may be appointed; and ----- (g) to frame such regulations and rules consistent with the Statutes and the Ordinances regarding the academic functioning of the University, discipline, residence, admissions, award of fellowships, scholarships, studentships, medals and prizes, fees, concessions, corporate life and attendance. **13. The Finance Committee.—(1) The Finance Committee shall consist of the following members,** namely:— (i) the Vice-Chancellor; (ii) the Pro-Vice-Chancellor; (iii) three persons to be nominated by the Executive Council, out of whom at least one shall be a member of the Executive Council; and (iv) three persons to be nominated by the Visitor. (2) Five members of the Finance Committee shall form a quorum for a meeting of the Finance Committee. (3) All the members of the Finance Committee, other than ex officio members, shall hold office for a term of three years. (4) A member of the Finance Committee shall have the right to record a minute of dissent if he does not agree with any decision of the Finance Committee. (5) The Finance Committee shall meet at least thrice every year to examine the accounts and to scrutinise proposals for expenditure. (6) All proposals relating to creation of posts, and those items which have not been included in the Budget, shall be examined by the Finance Committee before they are considered by the Executive Council. (7) The annual accounts and the financial estimates of the University prepared by the Finance Officer shall be laid before the Finance Committee for consideration and comments and thereafter submitted to the Executive Council for approval. (8) The Finance Committee shall recommend limits for the total recurring expenditure and the total non-recurring expenditure for the year, based on the income and resources of the University (which, in the case of productive works, may include the proceeds of loans). **14. Faculties and Departments.—(1) The University shall have the following Faculties, namely:—** (i) the Faculty of Arts; (ii) the Faculty of Commerce; (iii) the Faculty of Law; (iv) the Faculty of Medicine; and (v) the Faculty of Science. (2) The constitution and term of office of members of the Board of each Faculty, its powers and functions and the provisions in respect of the meetings thereof shall be prescribed by the Ordinances: Provided that the first Board of each Faculty shall be nominated by the Executive Council and shall hold office for a period of one year. (3) The Faculty of Arts shall consist of the following Departments, namely:— (i) Ancient History, Culture and Archaeology; (ii) Anthropology; (iii) Arabic and Persian; (iv) Education; (v) English and Modern European Languages; (vi) Geography; ----- (vii) Hindi and Modern Indian Languages; (viii) Journalism and Mass Communication; (ix) Medieval and Modern History; (x) Music and Performing Arts; (xi) Philosophy; (xii) Physical Education; (xiii) Political Science; (xiv) Psychology; (xv) Sanskrit; Pali, Prakrit and Oriental Languages; (xvi) Urdu; and (xvii) Visual Arts. (4) The Faculty of Commerce shall consist of the following Departments, namely:— (i) Commerce and Business Administration; and (ii) Economics. (5) The Faculty of Law shall consist of the following Department, namely:— Law. (6) The Faculty of Medicine shall consist of the following Departments, namely:— (i) Anaesthesia; (ii) Anatomy; (iii) Cardiology; (iv) Ear, Nose and Throat; (v) Forensic Medicine; (vi) Medicine; (vii) Microbiology; (viii) Obstetrics and Gynaecology; (ix) Ophthalmology; (x) Orthopaedics; (xi) Paediatrics; (xii) Pathology and Bacteriology; (xiii) Pharmacy; (xiv) Pharmacology; (xv) Physiology; (xvi) Radiology; (xvii) Social and Preventive Medicine; (xviii) Surgery; and (xix) Tuberculosis. (7) The Faculty of Science shall consist of the following Departments, namely:— (i) Botany; ----- (ii) Bio-Chemistry; (iii) Chemistry; (iv) Defence and Strategic Studies; (v) Earth and Planetary Sciences; (vi) Electronics and Communication; (vii) Home Science; (viii) Mathematics; (ix) Physics; (x) Statistics; and (xi) Zoology. (8) Each Department shall be headed by a Head of the Department, whose manner of appointment, term of office and functions shall be prescribed by the Ordinances. (9) Each Department shall have a Departmental Committee, the constitution, term of office of members and functions whereof shall be prescribed by the Ordinances. (10) There shall be a Board of Studies for each subject, the constitution, term of office of members and functions whereof shall be prescribed by the Ordinances. **15. Selection Committees.—(1) There shall be Selection Committees for making recommendations** to the Executive Council for appointment to the posts of Professor, Reader, Lecturer, Registrar, Finance Officer, Librarian and Directors of University Institutes and Heads of independent Centres maintained by the University. (2) The Selection Committee for appointment to the posts specified in column 1 of the Table below shall consist of the Vice-Chancellor, a nominee of the Visitor and the persons specified in the corresponding entry in column 2 of the said Table: TABLE 1 2 Professor/Reader (i) The Dean of the Faculty. (ii) The Head of the Department. (iii) Three experts in the concerned subject/field, to be appointed by the Executive Council, out of the panel recommended by the Academic Council. Lecturer (i) The Dean of the Faculty/Head of the Department. (ii) Three experts in the concerned subject/field, to be appointed by the Executive Council, out of the panel recommended by the Academic Council. Registrar/Finance Officer (i) Two members of the Executive Council nominated by it. (ii) One person not in the service of the University or an institution maintained by, or admitted to, the privileges of the University, nominated by the Executive Council. Librarian (i) Three persons not in the service of the University or an institution maintained by, or admitted to, the privileges of the University, who have special knowledge of the subject of the Library Science/ Library Administration to be nominated by the Executive Council. (ii) One person not in the service of the University or an institution maintained by, or admitted to, the privileges of the University, nominated by the Executive Council. ----- 1 2 Director of University Institute or Head of independent Centre maintained by the University. Three experts in the concerned subject/field, to be appointed by the Executive Council, out of the panel recommended by the Academic Council. _Note : 1_ _Note : 2_ Where the appointment is being made for an interdisciplinary project, the head of the project shall be deemed to be the Head of the Department concerned. In the case of a University Institute, the Director and in the case of an independent Centre, the Head thereof shall be deemed to be the Head of the Department concerned. (3) The Vice-Chancellor, or in his absence the Pro-Vice-Chancellor, shall convene and preside at the meeting of the Selection Committee: Provided that the meeting of the Selection Committee shall be fixed after prior consultation with, and subject to the convenience of Visitor's nominee and the experts approved by the Executive Council. (4) Four members, including at least two experts, must be present to form the quorum for a meeting of the Selection Committee. (5) The procedure to be followed by the Selection Committee shall be laid down in the Ordinances. (6) If the Executive Council is unable to accept the recommendations made by the Selection Committee, it shall record its reasons and submit the case to the Visitor for final orders. (7) Appointments to temporary posts shall be made in the manner indicated below— (i) If the temporary vacancy is for duration longer than one academic session, it shall be filled on the advice of the Selection Committee in accordance with the procedure indicated in the foregoing clauses: Provided that if the Vice-Chancellor is satisfied that in the interests of work it is necessary to fill the vacancy, the appointment may be made on a purely temporary basis on the advice of a local Selection Committee referred to in sub-clause (ii) for a period not exceeding six months. (ii) If the temporary vacancy is for a period less than a year, an appointment to such vacancy shall be made on the recommendation of a local Selection Committee consisting of the Dean of the Faculty concerned, the Head of the Department and a nominee of the Vice-Chancellor: Provided that if the same person holds the offices of the Dean and the Head of the Department, the Selection Committee may contain two nominees of the Vice-Chancellor. (iii) No teacher appointed temporarily on the advice of a local Selection Committee shall be continued in service on such temporary employment, unless he is subsequently selected by a regular Selection Committee, for temporary or permanent appointment. (iv) Where a teacher has been appointed to a Department on the recommendation of a regular Selection Committee on a temporary post, and such post subsequently becomes permanently vacant or another permanent post of the same rank and grade becomes available in the same Department, the Executive Council may appoint such teacher on permanent basis in such Department without further reference to a regular Selection Committee. **16. Special mode of appointment.—(1) Notwithstanding anything contained in Statute 15, the** Executive Council may invite a person of high academic distinction and professional attainments to accept a post of Professor or any other equivalent academic post in the University, on such terms and conditions as it deems fit and on the person agreeing to do so appoint him to the post. (2) The Executive Council may declare a person working in any other University or organisation as teacher of the University for a specified period. (3) Appointments to Chairs and of Emeritus Professors shall be made by the Executive Council in accordance with the procedure laid down in the Ordinances for such tenure and on such terms and conditions as it deems fit. ----- (4) The Executive Council may appoint a person selected in accordance with the procedure laid down in Statute 15 for a fixed tenure on such terms and conditions as it deems fit. **17. Academic staff.—(1) The academic staff shall consist of teachers and staff employed for** imparting instruction or for conducting, or assisting in the conduct of, research. (2) The manner of appointment of the academic staff, other than teachers, shall be such as may be prescribed by the Ordinances. **18. Recognition of teachers.—(1) The qualifications of University recognised teachers shall be such** as may be determined by the Ordinances. (2) All applications for the recognition of teachers shall be made in such manner as may be laid down by the Regulations made by the Executive Council in that behalf. (3) The Executive Council may, on a reference from the Vice-Chancellor, withdraw recognition from a teacher: Provided that the teacher or the college or institution concerned may, within a period of thirty days from the date of the order of withdrawal, appeal against the order to the Visitor whose decision shall be final. **19. Committees.—(1) Any authority of the University may appoint as many standing or special** Committees as it may deem fit, and may appoint to such Committees persons who are not members of such authority. (2) Any Committee appointed under clause (1) may deal with any subject delegated to it subject to subsequent confirmation by the authority appointing it. **20. Terms and conditions of service and code of conduct of the teachers, etc.—(1) All the** teachers and other academic staff of the University shall, in the absence of any agreement to the contrary, be governed by the terms and conditions of service and code of conduct as are specified in the Statutes, the Ordinances and the Regulations. (2) The emoluments of members of the academic staff shall be such as may be prescribed by the Ordinances. (3) Every teacher and other member of the academic staff of the University shall be appointed on a written contract, the form of which shall be prescribed by the Ordinances. (4) A copy of every contract referred to in clause (3) shall be deposited with the Registrar. **21. Terms and conditions of service and code of conduct of other employees.—(1) All the** employees of the University, other than the academic staff, shall, in the absence of any contract to the contrary, be governed by the terms and conditions of service and code of conduct as are specified in the Statutes, the Ordinances and the Regulations. (2) The manner of appointment and emoluments of employees, other than the academic staff, shall be such as may be prescribed by the Ordinances. **22. Seniority list.—(1) Whenever, in accordance with the Statutes, any person is to hold an office or** be a member of an authority of the University by rotation according to seniority, such seniority shall be determined according to the length of continuous service of such person in his grade and in accordance with such other principles as the Executive Council may, from time to time, prescribe. (2) It shall be the duty of the Registrar to prepare and maintain in respect of each class of persons to whom the provisions of these Statutes apply, a complete and up-to-date seniority list in accordance with the provisions of clause (1). (3) If two or more persons have equal length of continuous service in a particular grade or the relative seniority of any person or persons is otherwise in doubt, the Registrar may, on his own motion and shall, at the request of any such person, submit the matter to the Executive Council whose decision thereon shall be final. (4) The provisions of this Statute shall not affect the _inter se seniority of the employees working in_ the University before the appointed day. ----- **23. Removal of employees of the University.—(1) Where there is an allegation of misconduct** against a member of the academic staff or other employee of the University, the Vice-Chancellor, in the case of such member of the academic staff, and the authority competent to appoint (hereinafter referred to as the appointing authority) in the case of other employee may, by order in writing, place such member of the academic staff or other employee, as the case may be, under suspension and shall forthwith report to the Executive Council the circumstances in which the order was made: Provided that the Executive Council may, if it is of the opinion, that the circumstances of the case do not warrant the suspension of the member of the academic staff, revoke such order. (2) Notwithstanding anything contained in the terms of the contract of appointment or of any other terms and conditions of service of the employees, the Executive Council in respect of the academic staff, and the appointing authority in respect of other employees, shall have the power to remove such member of the academic staff or other employee, as the case may be, on grounds of misconduct. (3) Save as aforesaid, the Executive Council, or as the case may be, the appointing authority, shall not be entitled to remove any member of the academic staff or other employee except for a good cause and after giving three months' notice or on payment of three months' salary in lieu thereof. (4) No teacher, member of the academic staff or other employee shall be removed under clause (2) or clause (3) unless he has been given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. (5) The removal of a member of the academic staff or other employee shall take effect from the date on which the order of removal is made: Provided that where the teacher, member of the academic staff or other employee is under suspension at the time of his removal, such removal shall take effect from the date on which he was placed under suspension. (6) Notwithstanding anything contained in the foregoing provisions of this Statute, a teacher, member of the academic staff or other employee may resign,— (a) if he is a permanent employee, only after giving three months' notice in writing to the Executive Council or the appointing authority, as the case may be, or by paying three months' salary in lieu thereof; (b) if he is not a permanent employee, only after giving one month's notice in writing to the Executive Council or, as the case may be, the appointing authority or by paying one month's salary in lieu thereof: Provided that such resignation shall take effect only on the date on which the resignation is accepted by the Executive Council or the appointing authority, as the case may be. **24. The Librarian.—There shall be a Librarian of the University, who shall be appointed by the** Executive Council on the recommendations of the Selection Committee constituted for the purpose and shall exercise such powers and perform such duties as may be prescribed by Ordinances. **25. Promotion of research, development and consultancy and extension services.—There shall be** a Dean of Research and Development to assist the Vice-Chancellor in the planning and co-ordination of research, development and consultancy and extension services in the University, who shall be appointed from amongst the Professors in the manner prescribed by the Ordinances. **26. Honorary degrees.—(1) The Executive Council may, on the recommendation of the Academic** Council and by a resolution passed by a majority of not less than two-thirds of the members present and voting, make proposals to the Visitor for the conferment of honorary degrees: Provided that in case of emergency, the Executive Council may, on its own motion, make such proposals. (2) The Executive Council may, by a resolution passed by a majority of not less than two-thirds of the members present and voting, withdraw, with the previous sanction of the Visitor, any honorary degree conferred by the University. ----- **27. Withdrawal of degrees, etc.—The Executive Council may, by a special resolution passed by a** majority of not less than two-thirds of the members present and voting, withdraw a degree or academic distinction conferred on, or any certificate or diploma granted to, any person by the University for good and sufficient cause: Provided that no such resolution shall be passed until a notice in writing has been given to that person calling upon him to show cause within such time as may be specified in the notice why such a resolution should not be passed and until his objections, if any, and any evidence he may produce in support of them, have been considered by the Executive Council. **28. Maintenance of discipline amongst students of the University.—(1) All powers relating to the** maintenance of discipline and disciplinary action in relation to the students of the University shall vest in the Vice-Chancellor. (2) There shall be a Proctor of the University to assist the Vice-Chancellor in the exercise of the powers referred to in clause (1), who shall be appointed by the Executive Council from amongst the Professors and Readers in the manner prescribed by the Ordinances. (3) The Vice-Chancellor may delegate all or any of the powers referred to in clause (1), as he deems proper, to the Proctor and to such other officers as he may specify in this behalf. (4) Without prejudice to the generality of the powers referred to in clause (1), the Vice-Chancellor may, in exercise of such powers, by order, direct that any student or students be expelled or rusticated, for a specified period, or be not admitted for a stated period to a course or courses of study in the University or an institution maintained by or admitted to the privileges of the University, or be punished with fine for an amount to be specified in the order, or be debarred from taking an examination or examinations conducted by the University, for one or more years, or that the results of the student or students concerned in the examination or examinations in which he or they have appeared be cancelled. (5) The Deans of Faculties, Heads of Departments and Centres, Directors of University Institutes and Constituent Institutes and Principals of University Colleges and Constituent Colleges shall have the authority to exercise all such disciplinary powers over the students in their respective Faculties, Departments, independent Centres, University Institutes, Constituent Institutes, University Colleges and Constituent Colleges, as may be necessary for the proper conduct of the work thereof. (6) Without prejudice to the powers of the Vice-Chancellor and the Deans, Heads, Directors and Principals specified in clause (5), detailed rules of discipline and proper conduct shall be made by the University, and such Deans, Heads, Directors and Principals may also make such supplementary rules as they deem necessary for the purposes stated therein. (7) At the time of admission, every student shall be required to sign a declaration to the effect that he submits himself to the disciplinary jurisdiction of the Vice-Chancellor and other authorities of the University. **29. Maintenance of discipline among Students of institutions admitted to the privileges of the** **University.—All powers relating to discipline and disciplinary action in relation to students of an** institution admitted to the privileges of the University, shall vest in the Director or Principal, as the case may be, of the institution, in accordance with the procedure prescribed by the Ordinances. **30. University Institutes, independent Centres, University Colleges and Constituent** **Institutes.—(1) The Institutes of the University immediately before the commencement of the Act,** namely:— (i) The Institute of Inter-Disciplinary Studies; (ii) The Institute of Professional Studies; and (iii) The National Centre of Experimental Mineralogy and Petrology, shall continue as University Institutes and the Centre of Behavioural and Cognitive Sciences shall continue as an independent Centre of the University, and all matters relating thereto shall be provided for by the Ordinances. ----- (2) The Institute of Correspondence Courses and Continuing Education shall continue as a temporary self-financing University Institute, and all matters relating thereto shall be provided for by the Ordinances. (3) The manner of establishing University Institutes, Centres and University Colleges maintained by the University and other matters relating to them shall be prescribed by the Ordinances. (4) The following shall be the University Colleges, namely:— The Motilal Nehru Medical College and Swarup Rani Nehru Hospital, Allahabad. (5) The following shall be the Constituent Institutes, namely:— (i) The Govind Ballabh Pant Social Science Institute, Allahabad; (ii) The Harish Chandra Research Institute of Mathematics and Mathematical Physics, Allahabad; and (iii) The Kamala Nehru Post-graduate Medical Institute, Allahabad. (6) The admission of institutions to the privileges of the University as Constituent Institutes and University Colleges and other matters relating to Constituent Institutes and University Colleges shall be prescribed by the Ordinances. **31. Constituent Colleges.—(1) The following shall be the Constituent Colleges, namely:—** (i) Allahabad Degree College, Allahabad; (ii) Arya Kanya Degree College, Allahabad; (iii) Chaudhary Mahadeo Prasad Degree College, Allahabad; (iv) Ewing Christian College, Allahabad; (v) Iswar Saran Degree College, Allahabad; (vi) Hamidia Girls Degree College, Allahabad; (vii) Jagat Taran Girls Degree College, Allahabad; (viii) K. P. Training College, Allahabad; (ix) Rajarshi Tandon Girls Degree College, Allahabad; (x) Sanwal Dass Sadan Lal Khanna Girls Degree College, Allahabad; and (xi) Shyama Prasad Mukherji Government Degree College, Allahabad. (2) Matters relating to the constitution of the management, the powers of the Vice-Chancellor to issue directions to, and to enforce his orders against, the management, the conditions for the continuance, enlargement and withdrawal of the privileges of Constituent Colleges and the grant to and withdrawal from them of the autonomous status shall be prescribed by the Ordinances: Provided that every Constituent College shall be required to undergo the process of assessment by a visiting Peer Team of the National Assessment and Accreditation Council, set up under section 12 (ccc) of the University Grants Commission Act, 1956 (3 of 1956), and accreditation by the said Council within a period of three years from the date of the commencement of the Act. (3) Where under the provisions of the Uttar Pradesh State Universities Act, 1973 (President's Act 10 of 1973) a Constituent College had been granted permission by the predecessor University to impart instruction for a Post-graduate degree other than the degree of Bachelor of Laws or to exercise the privileges of an Autonomous College, such permission shall cease to have effect upon the expiry of the academic year immediately following the academic year during which the Act has commenced or of the period for which such permission had been granted by the predecessor University, whichever is earlier, without prejudice to the right of the Constituent College concerned to apply afresh for such permission in accordance with the provisions of the Statutes and the Ordinances. (4) There shall be constituted, by Ordinances, a College Development Council to monitor and promote the academic functioning and development of the Constituent Colleges. ----- (5) The College Development Council shall be headed by the Dean of College Development, who shall be appointed by the Executive Council from among the Professors of the University in the manner prescribed by the Ordinances. **32. Convocations.—Convocations of the University for the conferring of degrees or for other** purposes shall be held in such manner as may be prescribed by the Ordinances. **33. Acting Chairman of meetings.—Where no provision is made for a President or Chairman to** preside over a meeting of any authority of the University or any Committee of such authority or when the President or Chairman so provided for is absent, the members present shall elect one from among themselves to preside at such meeting. **34. Resignation.—Any member, other than an** _ex officio member, of the Court, the Executive_ Council, the Academic Council or any other authority of the University or any Committee of such authority may resign by letter addressed to the Registrar and the resignation shall take effect as soon as such letter is received by the Registrar. **35. Disqualifications.—(1) A person shall be disqualified for being chosen as, and for being, a** member of any of the authorities of the University,— (i) if he is of unsound mind; (ii) if he is an undischarged insolvent; (iii) if he has been convicted by a court of law of an offence involving moral turpitude and sentenced in respect thereof to imprisonment for not less than six months. (2) If any question arises as to whether a person is or had been subjected to any of the disqualifications mentioned in clause (1), the question shall be referred to the Visitor and his decision shall be final and no suit or other proceeding shall lie in any civil court against such decision. **36. Residence condition for membership and office.—Notwithstanding anything contained in the** Statutes, a person who is not ordinarily resident in India shall not be eligible to be an officer of the University or a member of any authority of the University. **37. Membership of authorities by virtue of membership of other bodies.—Notwithstanding** anything contained in the Statutes, a person who holds any post in the University or is a member of any authority or body of the University in his capacity as a member of a particular authority or body or as the holder of a particular appointment shall hold such office or membership only for so long as he continues to be a member of that particular authority or body or the holder of that particular appointment, as the case may be. **38. Registered Graduates.—The provisions in respect of the registration of graduates and the** maintenance of the register of Registered Graduates shall be prescribed by the Ordinances. **39. Dean and Board of Students Welfare.—(1) There shall be a Dean of Students Welfare to** co-ordinate the measures for promoting the welfare of the students of the University, who shall be appointed by the Executive Council from among the Professors and Readers of the University in the manner prescribed by the Ordinances. (2) There shall be constituted in the University, a Board of Students Welfare, the constitution, term of office of members and functions whereof shall be prescribed by the Ordinances. **40. Ordinances, how made.—(1) The first Ordinances made under sub-section (2) of section 29 may** be amended, repealed or added to at any time by the Executive Council in the manner specified in the following sub-sections. (2) No Ordinance in respect of the matters enumerated in sub-section (1) of section 29 shall be made by the Executive Council unless a draft of such Ordinance has been proposed by the Academic Council. (3) The Executive Council shall not have power to amend any draft of any Ordinance proposed by the Academic Council under clause (2), but may reject the proposal or return the draft to the Academic Council for re-consideration, either in whole or in part, together with any amendment which the Executive Council may suggest. ----- (4) Where the Executive Council has rejected or returned the draft of an Ordinance proposed by the Academic Council, the Academic Council may consider the question afresh and in case the original draft is reaffirmed by a majority of not less than two-thirds of the members present and voting and more than half the total number of members of the Academic Council, the draft may be sent back to the Executive Council which shall either adopt it or refer it to the Visitor whose decision shall be final. (5) Every Ordinance made by the Executive Council shall come into effect immediately. (6) Every Ordinance made by the Executive Council shall be submitted to the Visitor within two weeks from the date of its adoption. (7) The Visitor shall have the power to direct the University to suspend the operation of any Ordinance. (8) The Visitor shall inform the Executive Council about his objection to the Ordinance referred to in clause (7) and may, after receiving the comments of the University, either withdraw the order suspending the Ordinance or disallow the Ordinance, and his decision shall be final. **41. Regulations.—(1) The authorities of the University may make Regulations consistent with the** Act, the Statutes and the Ordinances for the following matters, namely:— (i) laying down the procedure to be observed at their meetings and the number of members required to form a quorum; (ii) providing for all matters which are required by the Act, the Statutes or the Ordinances to be prescribed by Regulations; (iii) providing for all other matters solely concerning such authorities or committees appointed by them and not provided for by the Act, the Statutes or the Ordinances. (2) Every authority of the University shall make Regulations providing for the giving of notice to the members of such authority of the dates of meeting and of the business to be considered at meetings and for the keeping of a record of the proceedings of meetings. (3) The Executive Council may direct the amendment in such manner as it may specify of any Regulation made under the Statutes or the annulment of any such Regulation. **42. Delegation of Powers.—Subject to the provisions of the Act and the Statutes, any officer or** authority of the University may delegate his or its powers to any other officer or authority or person under his or its respective control and subject to the condition that overall responsibility for the exercise of the powers so delegated shall continue to vest in the officer or authority delegating such powers. ________________ -----

5-Sep-2005

42

The Mahatma Gandhi National Rural Employment Guarantee Act, 2005

https://www.indiacode.nic.in/bitstream/123456789/2014/5/a2005-42.pdf

central

# THE MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT GUARANTEE ACT, 2005 __________________ # ARRANGEMENT OF SECTIONS __________________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II GUARANTEE OF EMPLOYMENT IN RURAL AREAS 3. Guarantee of rural employment to households. CHAPTER III EMOPLOYMENT GUARANTEE SCHEMES AND UNEMPLOYMENT ALLOWANCE 4. Employment Guarantee Schemes for rural areas. 5. Conditions for providing guaranteed employment. 6. Wage rate. 7. Payment of unemployment allowance. 8. Non-disbursement of unemployment allowance in certain circumstances. 9. Disentitlement to receive unemployment allowance in certain circumstances. CHAPTER IV IMPLEMENTING AND MONITORING AUTHORITIES 10. Central Employment Guarantee Council. 11. Functions and duties of Central Council. 12. State Employment Guarantee Council. 13. Principal authorities for planning and implementation of Schemes. 14. District Programme Coordinator. 15. Programme Officer. 16. Responsibilities of the Gram Panchayats. 17. Social audit of work by Gram Sabha. 18. Responsibilities of State Government in implementing Scheme. 19. Grievance redressal mechanism. 1 ----- CHAPTER V ESTABLISHMENT OF NATIONALAND STATE EMPLOYMENT GUARANTEE FUNDSAND AUDIT SECTIONS 20. National Employment Guarantee Fund. 21. State Employment Guarantee Fund. 22. Funding pattern. 23. Transparency and accountability. 24. Audit of accounts. CHAPTER VI MISCELLANEOUS 25. Penalty for non-compliance. 26. Power to delegate. 27. Power of Central Government to give directions. 28. Act to have overriding effect. 29. Power to amend Schedules. 30. Protection of action taken in good faith. 31. Power of Central Government to make rules. 32. Power of State Government to make rules. 33. Laying of rules and Schemes. 34. Power to remove difficulties. SCHEDULE I. SCHEDULE II. 2 ----- 1[THE MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT GUARANTEE ACT], # 2005 ACT NO. 42 OF 2005 [5th September, 2005.] # An Act to provide for the enhancement of livelihood security of the households in rural areas of the country by providing at least one hundred days of guaranteed wage employment in every financial year to every household whose adult members volunteer to do unskilled manual work and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-sixth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called** [1][the Mahatma Gandhi National Rural Employment Guarantee Act], 2005. (2) It extends to the whole of India [2]***. (3) It shall come into force on such date[3] as the Central Government may, by notification in the Official Gazette, appoint; and different dates may be appointed for different States or for different areas in a State and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision in such State or, as the case may be, in such area: Provided that this Act shall be applicable to the whole of the territory to which it extends within a period of five years from the date of enactment of this Act. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “adult” means a person who has completed his eighteenth years of age; (b) “applicant” means the head of a household or any of its other adult members who has applied for employment under the Scheme; (c) “Block” means a community development area within a district comprising a group of Gram Panchayats; (d) “Central Council” means the Central Employment Guarantee Council constituted under sub-section (1) of section 10; (e) “District Programme Coordinator” means an officer of the State Government designated as such under sub-section (1) of section 14 for implementation of the Scheme in a district; (f) “household” means the members of a family related to each other by blood, marriage or adoption and normally residing together and sharing meals or holding a common ration card; (g) “implementing agency” includes any department of the Central Government or a State Government, a Zila Parishad, Panchayat at intermediate level, Gram Panchayat or any local authority or Government undertaking or non-governmental organisation authorised by the Central Government or the State Government to undertake the implementation of any work taken up under a Scheme; (h) “minimum wage”, in relation to any area, means the minimum wage fixed by the State Government under section 3 of the Minimum Wages Act, 1948 (11 of 1948) for agricultural labourers as applicable in that area; 1. Subs. by Act 46 of 2009, s. 2, for “the National Rural Employment Guarantee Act” (w.e.f. 2-10-2009). 2. The words “except the State of Jammu and Kashmir” omitted by Act 23 of 2007, s. 2, (w.e.f. 6-6-2007). 3. 2nd February, 2006, vide Notification No. S.O. 87(E), dated 24th January, 2006, _see Gazette of India, Extraordinary, Part II_ sec.3(ii). *. Vide Notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and Kashmir and the Union territory of Ladakh. 3 ----- (i) “National Fund” means the National Employment Guarantee Fund established under sub-section (1) of section 20; (j) “notification” means a notification published in the Official Gazette; (k) “preferred work” means any work which is taken up for implementation on a priority basis under a Scheme; (l) “prescribed” means prescribed by rules made under this Act; (m) “Programme Officer” means an officer appointed under sub-section (1) of section 15 for implementing the Scheme; (n) “project” means any work taken up under a Scheme for the purpose of providing employment to the applicants; (o) “rural area” means any area in a State except those areas covered by any urban local body or a Cantonment Board established or constituted under any law for the time being in force; (p) “Scheme” means a Scheme notified by the State Government under sub-section (1) of section4; (q) “State Council” means the State Employment Guarantee Council constituted under sub-section (1) of section 12; (r) “unskilled manual work” means any physical work which any adult person is capable of doing without any skill or special training; (s) “wage rate” means the wage rate referred to in section 6. CHAPTER II GUARANTEE OF EMPLOYMENT IN RURAL AREAS **3. Guarantee of rural employment to households.—(1) Save as otherwise provided, the State** Government shall, in such rural area in the State as may be notified by the Central Government, provide to every household whose adult members volunteer to do unskilled manual work not less than one hundred days of such work in a financial year in accordance with the Scheme made under this Act. (2) Every person who has done the work given to him under the Scheme shall be entitled to receive wages at the wage rate for each day of work. (3) Save as otherwise provided in this Act, the disbursement of daily wages shall be made on a weekly basis or in any case not later than a fortnight after the date on which such work was done. (4) The Central Government or the State Government may, within the limits of its economic capacity and development, make provisions for securing work to every adult member of a household under a Scheme for any period beyond the period guaranteed under sub-section (1), as may be expedient. CHAPTER III EMPLOYMENT GUARANTEE SCHEMESANDUNEMPLOYMENT ALLOWANCE **4. Employment Guarantee Schemes for rural areas.—(1) For the purposes of giving effect to the** provisions of section 3, every State Government shall, within six months from the date of commencement of this Act, by notification, make a Scheme, for providing not less than one hundred days of guaranteed employment in a financial year to every household in the rural areas covered under the Scheme and whose adult members, by application, volunteer to do unskilled manual work subject to the conditions laid down by or under this Act and in the Scheme: Provided that until any such Scheme is notified by the State Government, the Annual Action Plan or Perspective Plan for the _Sampoorna Grameen Rozgar Yojana (SGRY) or the National Food for Work_ Programme (NFFWP) whichever is in force in the concerned area immediately before such notification shall be deemed to be the action plan for the Scheme for the purposes of this Act. 4 ----- (2) The State Government shall publish a summary of the Scheme made by it in at least two local newspapers, one of which shall be in a vernacular language circulating in the area or areas to which such Scheme shall apply. (3) The Scheme made under sub-section (1) shall provide for the minimum features specified in Schedule I. **5. Conditions for providing guaranteed employment.—(1) The State Government may, without** prejudice to the conditions specified in Schedule II, specify in the Scheme the conditions for providing guaranteed employment under this Act. (2) The persons employed under any Scheme made under this Act shall be entitled to such facilities not less than the minimum facilities specified in Schedule II. **6. Wage rate.—(1) Notwithstanding anything contained in the Minimum Wages Act, 1948** (11 of 1948), the Central Government may, by notification, specify the wage rate for the purposes of this Act: Provided that different rates of wages may be specified for different areas: Provided further that the wage rate specified from time to time under any such notification shall not be at a rate less than sixty rupees per day. (2) Until such time as a wage rate is fixed by the Central Government in respect of any area in a State, the minimum wage fixed by the State Government under section 3 of the Minimum Wages Act, 1948 (11 of 1948) for agricultural labourers, shall be considered as the wage rate applicable to that area. **7. Payment of unemployment allowance.—(1) If an applicant for employment under the Scheme is** not provided such employment within fifteen days of receipt of his application seeking employment or from the date on which the employment has been sought in the case of an advance application, whichever is later, he shall be entitled to a daily unemployment allowance in accordance with this section. (2) Subject to such terms and conditions of eligibility as may be prescribed by the State Government and subject to the provisions of this Act and the Schemes and the economic capacity of the State Government, the unemployment allowance payable under sub-section (1) shall be paid to the applicants of a household subject to the entitlement of the household at such rate as may be specified by the State Government, by notification, in consultation with the State Council: Provided that no such rate shall be less than one-fourth of the wage rate for the first thirty days during the financial year and not less than one-half of the wage rate for the remaining period of the financial year. (3) The liability of the State Government to pay unemployment allowance to a household during any financial year shall cease as soon as— (a) the applicant is directed by the Gram Panchayat or the Programme Officer to report for work either by himself or depute at least one adult member of his household; or (b) the period for which employment is sought comes to an end and no member of the household of the applicant had turned up for employment; or (c) the adult members of the household of the applicant have received in total at least one hundred days of work within the financial year; or (d) the household of the applicant has earned as much from the wages and unemployment allowance taken together which is equal to the wages for one hundred days of work during the financial year. (4) The unemployment allowance payable to the household of an applicant jointly shall be sanctioned and disbursed by the Programme Officer or such local authority (including the Panchayats at the district, intermediate or village level) as the State Government may, by notification, authorise in this behalf. (5) Every payment of unemployment allowance under sub-section (1) shall be made or offered not later than fifteen days from the date on which it became due for payment. 5 ----- (6) The State Government may prescribe the procedure for payment of unemployment allowance under this Act. **8. Non-disbursement of unemployment allowance in certain circumstances.—(1) If the** Programme Officer is not in a position to disburse the unemployment allowance in time or at all for any reason beyond his control, he shall report the matter to the District Programme Coordinator and announce such reasons in a notice to be displayed on his notice board and the notice board of the Gram Panchayat and such other conspicuous places as he may deem necessary. (2) Every case of non-payment or delayed payment of unemployment allowance shall be reported in the annual report submitted by the District Programme Coordinator to the State Government along with the reasons for such non-payment or delayed payment. (3) The State Government shall take all measures to make the payment of unemployment allowance reported under sub-section (1) to the concerned household as expeditiously as possible. **9. Disentitlement to receive unemployment allowance in certain circumstances.—An applicant** who— (a) does not accept the employment provided to his household under a Scheme; or (b) does not report for work within fifteen days of being notified by the Programme Officer or the implementing agency to report for the work; or (c) continuously remains absent from work, without obtaining a permission from the concerned implementing agency for a period of more than one week or remains absent for a total period of more than one week in any month, shall not be eligible to claim the unemployment allowance payable under this Act for a period of three months but shall be eligible to seek employment under the Scheme at any time. CHAPTER IV IMPLEMENTING AND MONITORING AUTHORITIES **10. Central Employment Guarantee Council.—(1) With effect from such date as the Central** Government may, by notification specify, there shall be constituted a Council to be called the Central Employment Guarantee Council to discharge the functions, and perform the duties, assigned to it by or under this Act. (2) The headquarters of the Central Council shall be at Delhi. (3) The Central Council shall consist of the following members to be appointed by the Central Government, namely:— (a) a Chairperson; (b) not more than such number of representatives of the Central Ministries including the Planning Commission not below the rank of Joint Secretary to the Government of India as may be determined by the Central Government; (c) not more than such number of representatives of the State Governments as may be determined by the Central Government; (d) not more than fifteen non-official members representing Panchayati Raj Institutions, organisations of workers and disadvantaged groups: Provided that such non-official members shall include two chairpersons of District Panchayats nominated by the Central Government by rotation for a period of one year at a time: Provided further that not less than one-third of the non-official members nominated under this clause shall be women: Provided also that not less than one-third of the non-official members shall be belonging to the Scheduled Castes, the Scheduled Tribes, the Other Backward Classes and Minorities; 6 ----- (e) such number of representatives of the States as the Central Government may, by rules, determine in this behalf; (f) a Member-Secretary not below the rank of Joint Secretary to the Government of India. (4) The terms and conditions subject to which the Chairperson and other members of the Central Council may be appointed and the time, place and procedure of the meetings (including the quorum at such meetings) of the Central Council shall be such as may be prescribed by the Central Government. **11. Functions and duties of Central Council.—(1) The Central Council shall perform and discharge** the following functions and duties, namely:— (a) establish a central evaluation and monitoring system; (b) advise the Central Government on all matters concerning the implementation of this Act; (c) review the monitoring and redressal mechanism from time to time and recommend improvements required; (d) promote the widest possible dissemination of information about the Schemes made under this Act; (e) monitoring the implementation of this Act; (f) preparation of annual reports to be laid before Parliament by the Central Government on the implementation of this Act; (g) any other duty or function as may be assigned to it by the Central Government. (2) The Central Council shall have the power to undertake evaluation of the various Schemes made under this Act and for that purpose collect or cause to be collected statistics pertaining to the rural economy and the implementation of the Schemes. **12. State Employment Guarantee Council.—(1) For the purposes of regular monitoring and** reviewing the implementation of this Act at the State level, every State Government shall constitute a State Council to be known as the ......(name of the State) State Employment Guarantee Council with a Chairperson and such number of official members as may be determined by the State Government and not more than fifteen non-official members nominated by the State Government from Panchayati Raj institutions, organisations of workers and disadvantaged groups: Provided that not less than one-third of the non-official members nominated under this clause shall be women: Provided further that not less than one third of the non-official members shall be belonging to the Scheduled Castes, the Scheduled Tribes, the Other Backward Classes and Minorities. (2) The terms and conditions subject to which the Chairperson and members of the State Council may be appointed and the time, place and procedure of the meetings (including the quorum at such meetings) of the State Council shall be such as may be prescribed by the State Government. (3) The duties and functions of the State Council shall include— (a) advising the State Government on all matters concerning the Scheme and its implementation in the State; (b) determining the preferred works; (c) reviewing the monitoring and redressal mechanisms from time to time and recommending improvements; (d) promoting the widest possible dissemination of information about this Act and the Schemes under it; (e) monitoring the implementation of this Act and the Schemes in the State and coordinating such implementation with the Central Council; 7 ----- (f) preparing the annual report to be laid before the State Legislature by the State Government; (g) any other duty or function as may be assigned to it by the Central Council or the State Government. (3) The State Council shall have the power to undertake an evaluation of the Schemes operating in the State and for that purpose to collect or cause to be collected statistics pertaining to the rural economy and the implementation of the Schemes and Programmes in the State. **13. Principal authorities for planning and implementation of Schemes.—(1) The Panchayats at** district, intermediate and village levels shall be the principal authorities for planning and implementation of the Schemes made under this Act. (2) The functions of the Panchayats at the district level shall be— (a) to finalise and approve block wise shelf of projects to be taken up under a programme under the Scheme; (b) to supervise and monitor the projects taken up at the Block level and district level; and (c) to carry out such other functions as may be assigned to it by the State Council, from time to time. (3) The functions of the Panchayat at intermediate level shall be— (a) to approve the Block level Plan for forwarding it to the district Panchayat at the district level for final approval; (b) to supervise and monitor the projects taken up at the Gram Panchayat and Block level; and (c) to carry out such other functions as may be assigned to it by the State Council, from time to time. (4) The District Programme Coordinator shall assist the Panchayat at the district level in discharging its functions under this Act and any Scheme made thereunder. **14. District Programme Coordinator.—(1) The Chief Executive Officer of the District Panchayat** or the Collector of the district or any other district level officer of appropriate rank as the State Government may decide shall be designated as the District Programme Coordinator for the implementation of the Scheme in the district. (2) The District Programme Coordinator shall be responsible for the implementation of the Scheme in the district in accordance with the provisions of this Act and the rules made thereunder. (3) The functions of the District Programme Coordinator shall be— (a) to assist the district Panchayat in discharging its functions under this Act and any scheme made thereunder; (b) to consolidate the plans prepared by the Blocks and project proposals received from other implementing agencies for inclusion in the shelf of projects to be approved by the Panchayat at district level; (c) to accord necessary sanction and administrative clearance, wherever necessary; (d) to coordinate with the Programme Officers functioning within his jurisdiction and the implementing agencies to ensure that the applicants are provided employment as per their entitlements under this Act; (e) to review, monitor and supervise the performance of the Programme Officers; (f) to conduct periodic inspection of the works in progress; and (g) to redress the grievances of the applicants. (4) The State Government shall delegate such administrative and financial powers to the District Programme Coordinator as may be required to enable him to carry out his functions under this Act. 8 ----- (5) The Programme Officer appointed under sub-section (1) of section 15 and all other officers of the State Government and local authorities and bodies functioning within the district shall be responsible to assist the District Programme Coordinator in carrying out his functions under this Act and the Schemes made thereunder. (6) The District Programme Coordinator shall prepare in the month of December every year a labour budget for the next financial year containing the details of anticipated demand for unskilled manual work in the district and the plan for engagement of labourers in the works covered under the Scheme and submit it to the district panchayat. **15. Programme Officer.—(1) At every Panchayat at intermediate level, the State Government shall** appoint a person who is not below the rank of Block Development Officer with such qualifications and experience as may be determined by the State Government as Programme Officer at the Panchayat at intermediate level. (2) The Programme Officer shall assist the Panchayat at intermediate level in discharging its functions under this Act and any Scheme made thereunder. (3) The Programme Officer shall be responsible for matching the demand for employment with the employment opportunities arising from projects in the area under his jurisdiction. (4) The Programme Officer shall prepare a plan for the Block under his jurisdiction by consolidating the project proposals prepared by the Gram Panchayats and the proposals received from intermediate panchayats. (5) The functions of the Programme Officer shall include— (a) monitoring of projects taken up by the Gram Panchayats and other implementing agencies within the Block; (b) sanctioning and ensuring payment of unemployment allowance to the eligible households; (c) ensuring prompt and fair payment of wages to all labourers employed under a programme of the Scheme within the Block; (d) ensuring that regular social audits of all works within the jurisdiction of the Gram Panchayat are carried out by the Gram Sabha and that prompt action is taken on the objections raised in the social audit; (e) dealing promptly with all complaints that may arise in connection with the implementation of the Scheme within the Block; and (f) any other work as may be assigned to him by the District Programme Coordinator or the State Government. (6) The Programme Officers shall function under the direction, control and superintendence of the District Programme Coordinator. (7) The State Government may, by order, direct that all or any of the functions of a Programme Officer shall be discharged by the Gram Panchayat or a local authority. **16. Responsibilities of the Gram Panchayats.—(1) The Gram Panchayat shall be responsible for** identification of the projects in the Gram Panchayat area to be taken up under a Scheme as per the recommendations of the Gram Sabha and the Ward Sabhas and for executing and supervising such works. (2) A Gram Panchayat may take up any project under a Scheme within the area of the Gram Panchayat as may be sanctioned by the Programme Officer. (3) Every Gram Panchayat shall, after considering the recommendations of the Gram Sabha and the Ward Sabhas, prepare a development plan and maintain a shelf of possible works to be taken up under the Scheme as and when demand for work arises. 9 ----- (4) The Gram Panchayat shall forward its proposals for the development projects including the order of priority between different works to the Programme Officer for scrutiny and preliminary approval prior to the commencement of the year in which it is proposed to be executed. (5) The Programme Officer shall allot at least fifty per cent. of the works in terms of its cost under a Scheme to be implemented through the Gram Panchayats. (6) The Programme Officer shall supply each Gram Panchayat with— (a) the muster rolls for the works sanctioned to be executed by it; and (b) a list of employment opportunities available elsewhere to the residents of the Gram Panchayat. (7) The Gram Panchayat shall allocate employment opportunities among the applicants and ask them to report for work. (8) The works taken up by a Gram Panchayat under a Scheme shall meet the required technical standards and measurements. **17. Social audit of work by Gram Sabha.—(1) The Gram Sabha shall monitor the execution of** works within the Gram Panchayat. (2) The Gram Sabha shall conduct regular social audits of all the projects under the Scheme taken up within the Gram Panchayat. (3) The Gram Panchayat shall make available all relevant documents including the muster rolls, bills, vouchers, measurement books, copies of sanction orders and other connected books of account and papers to the Gram Sabha for the purpose of conducting the social audit. **18. Responsibilities of State Government in implementing Scheme.—The State Government shall** make available to the District Programme Coordinator and the Programme Officers necessary staff and technical support as may be necessary for the effective implementation of the Scheme. **19. Grievance redressal mechanism.—The State Government shall, by rules, determine appropriate** grievance redressal mechanisms at the Block level and the district level for dealing with any complaint by any person in respect of implementation of the Scheme and lay down the procedure for disposal of such complaints. CHAPTER V ESTABLISHMENT OF NATIONAL AND STATE EMPLOYMENT GUARANTEE FUNDSANDAUDIT **20. National Employment Guarantee Fund.—(1) The Central Government shall, by notification,** establish a fund to be called the National Employment Guarantee Fund for the purposes of this Act. (2) The Central Government may, after due appropriation made by Parliament by law in this behalf, credit by way of grants or loans such sums of money as the Central Government may consider necessary to the National Fund. (3) The amount standing to the credit of the National Fund shall be utilised in such manner and subject to such conditions and limitations as may be prescribed by the Central Government. **21. State Employment Guarantee Fund.—(1) The State Government may, by notification, establish** a fund to be called the State Employment Guarantee Fund for the purposes of implementation of the Scheme. (2) The amount standing to the credit of the State Fund shall be expended in such manner and subject to such conditions and limitations as may be prescribed by the State Government for the purposes of implementation of this Act and the Schemes made thereunder and for meeting the administrative expenses in connection with the implementation of this Act. (3) The State Fund shall be held and administered on behalf of the State Government in such manner and by such authority as may be prescribed by the State Government. 10 ----- **22. Funding pattern.—(1) Subject to the rules as may be made by the Central Government in this** behalf, the Central Government shall meet the cost of the following, namely: — (a) the amount required for payment of wages for unskilled manual work under the Scheme; (b) up to three-fourths of the material cost of the Scheme including payment of wages to skilled and semi-skilled workers subject to the provisions of Schedule II; (c) such percentage of the total cost of the Scheme as may be determined by the Central Government towards the administrative expenses, which may include the salary and allowances of the Programme Officers and his supporting staff, the administrative expenses of the Central Council, facilities to be provided under Schedule II and such other item as may be decided by the Central Government. (2) The State Government shall meet the cost of the following, namely:— (a) the cost of unemployment allowance payable under the Scheme; (b) one-fourth of the material cost of the Scheme including payment of wages to skilled and semi-skilled workers subject to the provisions of Schedule II; (c) the administrative expenses of the State Council. **23. Transparency and accountability.—(1) The District Programme Coordinator and all** implementing agencies in the District shall be responsible for the proper utilisation and management of the funds placed at their disposal for the purpose of implementing a Scheme. (2) The State Government may prescribe the manner of maintaining proper books and accounts of employment of labourers and the expenditure incurred in connection with the implementation of the provisions of this Act and the Schemes made thereunder. (3) The State Government may, by rules, determine the arrangements to be made for the proper execution of Schemes and programmes under the Schemes and to ensure transparency and accountability at all levels in the implementation of the Schemes. (4) All payments of wages in cash and unemployment allowances shall be made directly to the person concerned and in the presence of independent persons of the community on pre-announced dates. (5) If any dispute or complaint arises concerning the implementation of a Scheme by the Gram Panchayat, the matter shall be referred to the Programme Officer. (6) The Programme Officer shall enter every complaint in a complaint register maintained by him and shall dispose of the disputes and complaints within seven days of its receipt and in case it relates to a matter to be resolved by any other authority it shall be forwarded to such authority under intimation to the complainant. **24. Audit of accounts.—(1) The Central Government may, in consultation with the Comptroller and** Auditor General of India, prescribe appropriate arrangements for audits of the accounts of the Schemes at all levels. (2) The accounts of the Scheme shall be maintained in such form and in such manner as may be prescribed by the State Government. CHAPTER VI MISCELLANEOUS **25. Penalty for non-compliance.—Whoever contravenes the provisions of this Act shall on** conviction be liable to a fine which may extend to one thousand rupees. **26. Power to delegate.—(1) The Central Government may, by notification, direct that the powers** exercisable by it (excluding the power to make rules) may, in such circumstances and subject to such conditions and limitations, be exercisable also by the State Government or such officer subordinate to the Central Government or the State Government as it may specify in such notification. 11 ----- (2) The State Government may, by notification, direct that the powers exercisable by it (excluding the power to make rules and Schemes) may, in such circumstances and subject to such conditions and limitations, be exercisable also by such officer subordinate to it as it may specify in such notification. **27. Power of Central Government to give directions.—(1) The Central Government may give such** directions as it may consider necessary to the State Government for the effective implementation of the provisions of this Act. (2) Without prejudice to the provisions of sub-section (1), the Central Government may, on receipt of any complaint regarding the issue or improper utilisation of funds granted under this Act in respect of any Scheme if prima facie satisfied that there is a case, cause an investigation into the complaint made by any agency designated by it and if necessary, order stoppage of release of funds to the Scheme and institute appropriate remedial measures for its proper implementation within a reasonable period of time. **28. Act to have overriding effect.—The provisions of this Act or the Schemes made thereunder shall** have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of such law: Provided that where a State enactment exists or is enacted to provide employment guarantee for unskilled manual work to rural households consistent with the provisions of this Act under which the entitlement of the households is not less than and the conditions of employment are not inferior to what is guaranteed under this Act, the State Government shall have the option of implementing its own enactment: Provided further that in such cases the financial assistance shall be paid to the concerned State Government in such manner as shall be determined by the Central Government, which shall not exceed what the State would have been entitled to receive under this Act had a Scheme made under this Act had to be implemented. **29. Power to amend Schedules.—(1) If the Central Government is satisfied that it is necessary or** expedient so to do, it may, by notification, amend Schedule I or Schedule II and thereupon Schedule I or Schedule II, as the case may be, shall be deemed to have been amended accordingly. (2) A copy of every notification made under sub-section (1) shall be laid before each House of Parliament as soon as may be after it is made. **30. Protection of action taken in good faith.—No suit, prosecution or other legal proceedings shall** lie against the District Programme Coordinator, Programme Officer or any other person who is, or who is deemed to be, a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860) in respect of anything which is in good faith done or intended to be done under this Act or the rules or Schemes made thereunder. **31. Power of Central Government to make rules.—(1) The Central Government may, by** notification, and subject to the condition of previous publication, make rules to carry out the provisions of this Act. (2) In particular, and without the prejudice of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the number of representatives of the State Governments under clause (e) of sub-section (3) of section 10; (b) the terms and conditions subject to which the Chairman and other members of the Central Council may be appointed, and the time, place and procedure of the meetings (including the quorum at such meetings) of the Central Council, under sub-section (4) of section 10; (c) the manner in which and the conditions and limitations subject to which the National Fund shall be utilised under sub-section (3) of section 20; (d) the rules relating to funding pattern to meet the cost of certain items under sub-section (1) of section 22; 12 ----- (e) any other matter which is to be, or may be, prescribed or in respect of which provision is to be made by the Central Government by rules. **32. Power of State Government to make rules.—(1) The State Government may, by notification,** and subject to the condition of previous publication, and consistent with this Act and the rules made by the Central Government, make rules to carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the terms and conditions upon which eligibility for unemployment allowance may be determined under sub-section (2) of section 7; (b) the procedure for payment of unemployment allowance under sub-section (6) of section 7; (c) the terms and conditions subject to which the Chairperson and members of the State Council may be appointed, and the time, place and procedure of the meetings (including the quorum at such meetings) of their appointment to the State Council, under sub-section (2) of section 12; (d) the grievance redressal mechanism at the Block level and the District level and the procedure to be followed in such matter under section 19; (e) the manner in which and the conditions and limitations subject to which the State Fund shall be utilised under sub-section (2) of section 21; (f) the authority who may administer and the manner in which he may hold the State Fund under sub-section (3) of section 21; (g) the manner of maintaining books of account of employment of labourers and the expenditure under sub-section (2) of section 23; (h) the arrangements required for proper execution of Schemes under sub-section (3) of section 23; (i) the form and manner in which the accounts of the Scheme shall be maintained under sub-section (2) of section 24; (j) any other matter which is to be, or may be, prescribed or in respect of which provision is to be made by the State Government by rules. **33. Laying of rules and Schemes.—(1) Every rule made by the Central Government under this Act** shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both the Houses agree that the rule should not be made, the rule shall have thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. (2) Every rule or Scheme made by the State Government under this Act shall, as soon as may be after it is made, be laid before each House of the State Legislature where there are two Houses, and where there is one House of the State Legislature, before that House. **34. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulty: Provided that no order shall be made under this section after the expiry of three years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. 13 ----- 1[SCHEDULE I _See section 4(3)_ MINIMUM FEATURES OF A RURAL EMPLOYMENT GUARANTEE SCHEME 1. The Scheme notified under section 4 by all States shall be called the Mahatma Gandhi National Rural Employment Guarantee Scheme” and all documents pertaining to the said Scheme shall have a mention of the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (42 of 2005). 2. The Mahatma Gandhi National Rural Employment Guarantee Scheme shall hereinafter be referred to as “Mahatma Gandhi NREGS” and any reference in the said scheme to the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 shall be referred to as “Mahatma Gandhi NREGA”. 3. The core objectives of the Scheme shall be the following: (a) Providing not less than one hundred days of unskilled manual work as a guaranteed employment in a financial year to every household in rural areas as per demand, resulting in creation of productive assets of prescribed quality and durability; (b) Strengthening the livelihood resource base of the poor; (c) Proactively ensuring social inclusion and (d) Strengthening Panchayat raj institutions: Provided that the said objectives are applicable where the adult members volunteer to do unskilled manual work subject to the conditions laid down by or under this Act and in the Scheme. 4. (1) The focus of the Scheme shall be on the following works as categorised below: I. Category: A: PUBLIC WORKS RELATING TO NATURAL RESOURCES MANAGEMENT 2[(i) Rural sanitation related works, such as, individual household latrines, School toilet units, Anganwadi toilets either independently or in convergence with schemes of other Government Departments and unskilled wage component for construction of Community Sanitary Complexes in convergence with “Swachh Bharat Mission (Grameen) to achieve ‘open defecation free’ status, and solid and liquid waste management as per prescribed norms;] (ii) Watershed management works such as contour trenches, terracing, contour bunds, boulder checks, gabion structures and spring shed development resulting in a comprehensive treatment of a watershed; 1. Subs by Notification No. S.O. 19(E) Dated 03-01-2014. 2. Subs. by Notification No. S.O. 2198(E), dated 27-11-2019. 14 ----- (iii) Micro and minor irrigation works and creation, renovation and maintenance of irrigation canals and drains; 1[(iv) renovation of traditional water bodies including desilting of irrigation tanks and other water bodies and conservation of old step wells or baolis;] (v) Afforestation, tree plantation and horticulture in common and forest lands, road margins, canal bunds, tank foreshores and coastal belts duly providing right to usufruct to the households covered in Paragraph 5; and (vi) Land development works in common land. II. Category B: [2][COMMUNITY ASSETS OR INDIVIDUAL ASSETS] FOR VULNERABLE SECTIONS (ONLY FOR HOUSEHOLDS IN PARAGRAPH 5) (i) Improving productivity of lands of households specified in Paragraph 5 through land development and by providing suitable infrastructure for irrigation including dug wells, farm ponds and other water harvesting structures; (ii) Improving livelihoods through horticulture, sericulture, plantation, and farm forestry; (iii) Development of fallow or waste lands of households defined in Paragraph 5 to bring it under cultivation; 3[(iv) Unskilled wage component in construction of houses sanctioned under the Pradhan Mantri Awaas Yojana-Gramin or such other State or Central Government Scheme;] (v) Creating infrastructure for promotion of livestock such as, poultry shelter, goat shelter, piggery shelter, cattle shelter and fodder troughs for cattle; and (vi) Creating infrastructure for promotion of fisheries such as, fish drying yards, storage facilities, and promotion of fisheries in seasonal water bodies on public land; 4[(vii) Construction of bio-gas plant for individual; and (viii) unskilled wage component towards the construction of bio-gas plant for community.] 1. Subs. by Notification S.O. No. 973(E) dated 27-3-2017 2. Subs. by the Notification S.O. No. 1888(E) Dated 21-7-2014 3. Subs. by the Notification S.O. No. 403(E) Dated 25-1-2018. 4. Subs. by the Notification S.O. No.1719(E) Dated 8-4-2022. 15 ----- III. Category C: COMMON INFRASTRUCTURE [1][INCLUDING FOR NRLM] COMPLIANT SELF HELP GROUPS (i) Works for promoting agricultural productivity by creating durable infrastructure required for bio-fertilizers and post-harvest facilities including pucca storage facilities for agricultural produce; and (ii) Common work-sheds for livelihood activities of self-help groups. IV. Category D: RURAL INFRASTRUCTURE: 2[(i) Rural sanitation related works, such as, individual household latrines, School toilet units, Anganwadi toilets either independently or in convergence with schemes of other Government Departments and unskilled wage component for construction of Community Sanitary Complexes in convergence with Swachh Bharat Mission (Grameen) to achieve ‘open defecation free’ status, and solid and liquid waste management as per prescribed norms;] (ii) Providing all-weather rural road connectivity to [3][unconnected villages and border areas] and to connect identified rural production centers to the existing pucca road network; and construction of pucca internal roads or streets including side drains and culverts within a village; 4[(iii) Construction of play fields and compound walls for government run schools in the villages;] (iv) Works for improving disaster preparedness or restoration of roads or restoration of other essential public infrastructure including flood control and protection works, providing drainage in water logged areas, deepening and repairing of flood channels, chaur renovation, construction of storm water drains for coastal protection; (v) Construction of buildings for Gram Panchayats, women self-help groups’ federations, cyclone shelters, Anganwadi centers, village haats and crematoria at the village or block level. (vi) Construction of Food Grain Storage Structures for implementing the provisions of The National Food Security Act 2013 (20 of 2013); (vii) Production of building material required for construction works under the Act as a part of the estimate of such construction works. (viii) Maintenance of rural public assets created under the Act; [5][including maintenance of tunnel and bridges constructed by the Border Roads Organization] and 1. Subs. by Notification S.O. No. 1888(E) Dated 21-7-2014. 2. Subs. by Notification S.O. No. 2198(E), dated 2-7-2020. 3. Subs. by Notification S.O. No. 4598(E), dated 3-11-2021. 4. Subs. by Notification S.O. No. 973(E), dated 27-3-2020. 5. Ins. by Notification S.O. No. 3126(E), dated 7-7-2022. 16 ----- (ix) any other work which may be notified by the Central Government in consultation with the State Government in this regard. (2) The order of priority of works shall be determined by each Gram Panchayat in the meetings of the Gram Sabha keeping in view potential of the local area, its needs, local resources and in accordance with the provisions of Paragraph 9. 1[Provided that the District Programme Coordinator shall ensure that at least 60% of the works to be taken up in a district in terms of cost shall be for creation of productive assets directly linked to agriculture and allied activities through development of land, water and trees.] (3) Works which are non-tangible, not measurable, repetitive such as, removing grass, pebbles, agricultural operations, shall not be taken up. 5. Works creating individual assets shall be prioritised on land or homestead owned by households belonging to the: (a) Scheduled Castes (b) Scheduled Tribes (c) nomadic tribes (d) denotified tribes (e) other families below the poverty line (f) women-headed households (g) physically handicapped headed households (h) beneficiaries of land reforms 2[(i) the beneficiaries under the Pradhan Mantri Awaas Yojana-Gramin.] (j) beneficiaries under the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 (2 of 2007), and and after exhausting the eligible beneficiaries under the above categories, on lands of the small or marginal farmers as defined in the Agriculture Debt Waiver and Debt Relief Scheme, 2008 subject to the condition that such households shall have a job card with at least one member willing to work on the project undertaken on their land or homestead. 1. Ins. by the Notification S.O. No. 1888(E) Dated 21-7-2014. 2. Subs. by the Notification S.O. No. 403(E) Dated 25-1-2018. 17 ----- 6. The State Government shall take concrete steps to achieve effective inter-departmental convergence till the last mile implementation level of the works under the Scheme with other Government Schemes/programmes so as to improve the quality and productivity of assets, and bring in synergy to holistically address the multiple dimensions of poverty in a sustainable manner. 7. There shall be a systematic, participatory planning exercise at each tier of Panchayat, conducted between August to December month of every year, as per a detailed methodology laid down by the State Government. All works to be executed by the Gram Panchayats shall be identified and placed before the Gram Sabha, and such works which are to be executed by the intermediate Panchayats or other implementing agencies shall be placed before the intermediate or District Panchayats, along with the expected outcomes. 8. Demand for work, either oral or written, shall be registered as and when required by any job card holder and in the Rozgar Diwas which is to be conducted at every Ward and Gram Panchayat level at least once a month, leading to provision of work as per demand. 9. (1) Adequate shelf of works shall be maintained by every Gram Panchayat to meet the expected demand for work in such a way that at least one labour intensive public work with at least one work which is suitable for Particularly Vulnerable Groups especially the aged and the disabled which shall be kept open at all times to provide work as per demand. (2) The details of the said work(s) shall be prominently displayed through writingson the walls of the village. 10. While opening works in the public works category, it shall be ensured that the ongoing or incomplete works should be completed first. 11. Work shall be provided within fifteen days, from the date of registration of the demand for work or the date from which work has been demanded in case of advance applications, whichever is later. 12. (1) In case work could not be provided as per demand within the specified time limit, unemployment allowance shall be paid, as calculated automatically by the computer system or the Management Information System and as provided under the Act. The programme officer can reject the unemployment allowance only on grounds of force majeure. (2) In cases where unemployment allowance is paid, or due to be paid, the Programme Officer shall inform the concerned District Programme Coordinator in writing the reasons for not providing employment to the applicants. (3) The District Programme Coordinator shall, in his Annual Report to the State Council explain as to why employment could not provided in cases where payment of unemployment allowances is involved. 18 ----- 13. Every work under the Scheme shall have a technical estimate duly sanctioned by an authority authorised by the State Government. While sanctioning the estimates, the following are required to be considered: (a) For all works involving construction, cost effective, labour intensive technologies and usage of local materials shall be employed as far as possible; (b) The Bill of quantities (used in the estimate) is stated in common terminology for easy understanding of all stakeholders; (c) Each work shall have a summary of the estimate, design and a technical note that indicate the expected outcomes from implementing the work. 14. The works finalised at the Gram Panchayat level and consolidated at the Block or District level shall be given Block-wise administrative or financial sanction by the competent authority within thirty days from the date of finalisation of the works at the Gram Panchayat level only after confirming that the shelf of works in any Gram Panchayat is not less than two times the labour budget approved for that Gram Panchayat. 15. The muster rolls for works taken up under the scheme shall be maintained as follows, namely: (a) each muster roll shall be in English or local language and have a unique identity number electronically generated by the computer System (e-Muster) along with the list of workers applied for work. Every Muster roll shall be signed by the authorised person of the Gram Panchayat or by the Programme Officer; and shall contain such mandatory information as may be specified by the Central Government; (b) muster rolls shall be maintained at the worksite by marking attendance daily by a person authorised under the Scheme, details of which shall be made available in public view on a daily basis using the computer system. (c) the muster roll shall be periodically checked by officials in the manner prescribed in the Scheme; (d) the muster roll shall be closed on the last given day, countersigned by every worker who has worked, and shall be handed over to the technical personnel for measurement; (e) a detailed record of muster rolls shall be maintained in the registers as specified from time to time; (f) when a work is in progress, the workers engaged in that work may select from amongst themselves not less than five workers on a weekly rotational basis to verify and certify all the bills or vouchers of their worksite at least once in a week; 19 ----- (g) any person shall have access to muster rolls on the worksite on demand all days during all working hours; 16. Payment shall only be made based on the measurements taken at the worksite by the authorised personnel within three days of closure of the muster roll. The State Government shall ensure that adequate technical personnel are deployed to complete this work within the stipulated period. Suitable persons from the families of workers may be trained or skilled and deployed as barefoot engineers with appropriate delegation of technical powers and paid wages as skilled workers. 17. The State Government shall link the wages, without any gender bias, with the quantity of work done and it shall be paid according to the rural schedule of rates fixed after time and motion studies for different types of work and different seasons and revised periodically. 18. A separate Schedule of rates shall be finalised for women, the elderly, people with disabilities and people with debilitating ailments so to improve their participation through productive work. 19. (a) The schedule of rates of wages for various unskilled labourers shall be fixed up so that an adult person worked for eight hours which include an hour of rest will earn a wage which is equal to the stipulated wage rate; (b) The working hours of an adult worker shall be flexible but shall not spread over more than twelve hours on any day. 1[20. For all works taken up by the Gram Panchayats, the cost of the material component # including the wages of the skilled and semi-skilled workers shall not exceed forty per cent at the Gram Panchayat level. For works taken up by the implementing agencies other than Gram Panchayats, the overall material component including the wages of the skilled and semi-skilled workers shall not exceed forty per cent at the district level.] 21. The works executed shall be done without engaging any contractor. Implementing agencies under the Scheme shall execute the works in conformity with the processes specified under the Act and after complying with the mandatory proactive disclosures and social audit. 22. As far as practicable, works executed by the programme implementation agencies shall be performed by using manual labour and no labour displacing machines shall be used. 23. All material required for the works shall be procured by the Gram Panchayat or the implementing agency using a transparent tender process as specified by the State Government. 1. Subs. by the Notification S.O. No. 1888(E) Dated 21-7-2014. 20 ----- 24. Out of the administrative costs allowed under the Scheme, at least one third (1/3rd) shall be utilised at the Gram Panchayat level to employ and pay the Gram Rozgar Sahayak, other technical personnel as per the work done and for other administrative expenses. 25. Every Scheme to contain adequate provisions for ensuring transparency and accountability at all levels of implementation shall consist of the following measures, namely: (a) Mandatory Proactive disclosure of basic information to all common people and stakeholders using a ‘Janata Information System’ consisting of: (1) Display at each worksite the ‘Janata’ estimate of the work - showing the details of the work, estimated labour days, quantities of materials to be used in local terminology and item-wise cost of the estimate. (2) Display on prominent walls or public boards in the village: job cards list, number of days of work provided and the wages paid to each job card holder; and entitlements provided under the Act. (3) Display through boards at the Gram Panchayat Office: shelf of projects approved, year-wise works taken up or completed by Gram Panchayats and Line Departments, employment provided, funds received and expenditure, list of materials with quantities used in each work, rates at which the material was procured. (4) Display on the website: The Ministry of Rural Development and the State Departments of Rural Development shall ensure that their websites are updated to fully comply with all the seventeen provisions of Section 4(1)(b) of the Right to Information Act (22 of 2005) and all information about the Act is available in public domain, through free downloadable electronic form. (b) Concurrent social audit shall be done for all works every month. For this purpose, Programme Officer shall make available free of cost, details of works done and expenditure made during the past one month to the Bharat Nirman Volunteers, village social auditors, self-help groups, youth organisations and such other village level organisations for verification and report deviations if any. (c) Social audit: Implementation of all conditions for guaranteed rural employment under the Scheme and provision of minimum entitlements of labourers, including all expenditure under the Act shall be subjected to social audit in the manner prescribed by Central Government at least once in every six months consisting of the following: i. Identification, training of local youth as social auditors; and formation of trained social auditor teams for each Gram Panchayat with youth from outside the Gram Panchayat to conduct social audit, provided that at least 25% of village social auditors are from SC/ST groups. For services rendered by such youth, each one of them shall be paid an honorarium at a rate not less than the remuneration payable to the skilled labour under MGNREGA 21 ----- ii. Provision of records (muster rolls, M-Books, pay orders) to the social audit teams free of cost. iii. Verification of every work site to cross-check the measurements in the field with that on M-Books; and to assess the utility and outcomes of the work so executed. iv. Verification of every disbursement on record with the concerned beneficiaries. v. Verification of outcomes with that of estimated outcomes. vi. Verification of provision of entitlements in the field. vii. Review the implementation of MGNREGA for vulnerable groups. viii. Conduct of Public hearings by the social auditors at the Ward/Gram Panchayat and Block level to read out the findings. ix. Systematic follow up action on the reports of the social audit and completing recovery of amounts found misappropriated and completing suitable disciplinary/criminal action on the irregularities brought out in social audits within 6 months from the date of conduct of social audit. 26. Any misappropriation of amounts spent under the Act shall be recoverable under the Revenue Laws for recovery prevailing in the State. 27. Provisions for regular inspection and supervision of works by quality control teams to ensure proper quality of work as well as to ensure that the total wages paid for the completion of the work is as per the quality and quantity of work done. 28. The State Government shall take steps to organize, either through its own machinery or working with Civil Society Organisations, the workers into formal groups/labour collectives to improve their participation in implementation and to ensure provision of entitlements provided under the Act. 29. Establish an effective grievance redressal mechanism consisting of: (a) Institutional mechanisms for receiving grievances as and when they arise, while fixing one day each week during which all officials shall be necessarily present for receiving grievances at Ward/GP/Block and District level; (b) Issuance of dated receipt to complaints accepted in writing, phone, internet and orally by all personnel authorized to receive complaints; (c) Enquiry through spot verification, inspection and disposal to be completed within 7 working days; (d) On completion of the enquiry, immediate steps shall be taken by the concerned authority to redress the grievance within 15 days; 22 ----- (e) Failure to dispose of a complaint within seven days shall be considered as a contravention as per Section 25 of the Act; (f) In case of a prime facie evidence regarding financial irregularities are noticed after preliminary enquiry of the complaint or of findings in the social audit report, the District Programme Coordinator after obtaining legal advice will ensure that a First Information Report is lodged; (g) The concerned authority shall be responsible for informing the person or party aggrieved of the conclusion of enquiry and steps being taken for the redressal of his/her grievance, in writing; (h) The action taken on the complaints received by all agencies shall be placed before the meetings of the intermediate Panchayat and the District Panchayat respectively. (i) Appeals against the orders of the Gram Panchayat shall be made to the Programme Officer; those against the orders of the Programme Officer shall be made to District Programme Coordinator; those against the District Programme Coordinator shall be made to State Commissioner (NREGS), Divisional Commissioner (NREGS) and State Grievance Redressal Officer. (j) All Appeals shall be made within forty-five days from the date of the issuance of the order. (k) All Appeals shall be disposed off within one month. (l) There shall be a system of escalation of the grievances registered at ward/GP/Block/District level if not resolved within 15 days to the next higher level; and monitoring the same electronically. 30. Ombudsperson: There shall be an Ombudsperson for each District for receiving grievances, enquiring into and passing awards as per guidelines issued. 31. State Government shall coordinate the activities of Programme Officer, District Programme Coordinator, Ombudsmen, Social Audits Units, call centers or help Lines, Vigilance and Monitoring Committees, National Level Monitors, Rozgar Sahayata Kendras and any other entity authorised by the appropriate Government for an effective monitoring of the programme and redressal of grievances. 32. Wherever contravention of the provisions of the Act has been proved after due enquiry by the State Government or the District Programme Coordinator or the Programme Officer or the Ombudsperson or any other authority authorized by the State Government, action in accordance with the provisions of Section 25 of the Act shall be taken. 33. The District Programme Coordinator, the programme officer and the Gram Panchayat shall prepare a report annually containing the facts and figures and achievements relating to the implementation of the scheme within his or its jurisdiction and a copy of the same shall be made available to the public on demand on payment of such fee as may be specified in the Scheme. 23 ----- 34. All accounts and records including muster rolls relating to the scheme shall be made available for public scrutiny free of cost. Any person desirous of obtaining a copy or relevant extracts therefrom may be provided such copies or extracts on demand not later than three working days from the date of receipt of application. 35. There shall be a Capacity Building Plan, Information Education Communication plan and a plan for strengthening Panchayats as a part of the scheme.] 24 ----- SCHEDULE II (See section 5) CONDITIONS FOR GUARANTEED RURAL EMPLOYMENT UNDER A SCHEME AND MINIMUM ENTITLEMENTS OF LABOURERS **Job cards:—** 1. The adult member of every household residing in any rural area and willing to do unskilled manual work may submit the names, age and the address of the household to the Gram Panchayat at the village level, in whose jurisdiction they reside, for registration of their household for issuance of a job card. If the job seeker is a single woman or disabled person or aged person or released bonded labour or belonging to Particularly Vulnerable Tribal Group, they must be given a special job card of a distinct colour which will ensure them a special protection in providing work, work evaluation and work site facilitates, as the case may be. 2. It shall be the duty of the Gram Panchayat, after making such enquiry, as it deems fit, to issue a job card within fifteen days from the date of receipt of such application, containing therein a unique job card number with details of the registered adult members of the household, their photos, Bank or Post office account number, insurance policy number and the Aadhaar numbers if any. 3. The job card issued shall be valid for at least five years after which, it may be renewed after due verification. 4. No job card can be cancelled except where it is found to be a duplicate, or if the entire household has permanently migrated to a place outside the Gram Panchayat and no longer lives in the village. 5. The State Government shall make arrangements for updating the following details in the job card regularly while mentioning the key entitlements under the Act are clearly listed as follows:— (i) number of days for which work was demanded; (ii) number of days of work allocated; (iii) description of the work allocated along with the muster roll number; (iv) measurement details; (v) unemployment allowance, if any, paid; (vi) dates and number of days worked; (vii) date-wise amount of wages paid; (viii) delay compensation paid if any. 25 ----- **Demand for work:—** 6. Every adult member of a registered household whose name appears in the job card shall be entitled to apply for unskilled manual work under the Scheme; and every such application shall be compulsorily registered, and a receipt issued with the date, which shall be entered in the computer system. 7. The State shall proactively verify the requirements of the Vulnerable Groups and provide them work. 8. Application for work can be oral or written and made to the Ward member or to the Gram Panchayat or to the Programme Officer or any person authorised by the State Government or through a telephone or mobile or Interactive Voice Response System or through a call center or through web site or through a kiosk set up for this purpose or through any other means authorised by the State Government. 9. Applications for work can be filed individually or for a group together. 10. There shall be no limit on the number of days of employment for which a person may apply, or on the number of days of employment actually provided to him subject to the aggregate entitlement of the household. 11. Normally, applications for work must be for at least fourteen days of continuous work, other than the works relating to access to sanitation facilities, for which application for work shall be for at least six days of continuous work. 12. Provision shall be made in the Scheme for advance application, that is, application which may be submitted earlier than the date from which employment is sought. 13. Provision shall be made in the Scheme for submission of multiple applications by the same person provided that the corresponding periods for which employment is sought do not overlap. **Allocation of work:—** 14. The Gram Panchayat and Programme Officer shall ensure that every applicant shall be provided unskilled manual work in accordance with the provisions of the Scheme within fifteen days of receipt of an application or the date from which he seeks work in case of advance application, whichever is later. 15. Priority shall be given to women in such a way that at least one third of the beneficiaries shall be women who have registered and requested for work. Efforts to increase participation of single women and the disabled shall be made. 26 ----- 16. Applicants who are provided with work shall be so intimated in writing, by means of a letter sent to him at the address given in the job card or by a public notice displayed at the office of the Panchayats at district, intermediate or village level. 17. A list of persons who are provided with the work shall be displayed on the notice board of the Gram Panchayat and at the office of the Programme Officer and at such other place as the Programme Officer may deem necessary and the list shall be open for inspection by the State Government and any interested person. 18. As far as possible, the employment shall be provided within a radius of five kilometers of the village where the applicant resides at the time of applying. 19. A new work under the Scheme can be commenced if at least ten labourers become available for work, provided that this condition shall not be applicable for new works, as determined by the State Government, in hilly areas and in respect of afforestation works. 20. In case the employment is provided outside the radius specified in Paragraph 18, it shall be provided within the Block, and the labourers shall be paid ten percent of the wage rate as extra wages to meet additional transportation and expenses for living. 21. A period of employment shall be for at least fourteen days continuously with not more than six days in a week. **Work site management:—** 22. For the purpose of transparency at the work site, the following shall be ensured:— (i) there shall be a project initiation meeting in which various provisions of the work shall be explained to the workers; (ii) a copy of the sanction work order shall be available for public inspection at the worksite; (iii) measurement record of each work and details of the workers shall be available for public inspection; (iv) a Citizens’ Information Board shall be put up at every worksite and updated regularly in the manner specified by the Central Government; (v) The vigilance and Monitoring Committee setup according to the instructions of the Central Government may check all works and its evaluation report will be recorded in the Works Register in the format specified by the Central Government and submitted to the Gram Sabha during the Social Audit. 27 ----- 23. The facilities of safe drinking water, shade for children and periods of rest, first aid box with adequate material for emergency treatment for minor injuries and other health hazards connected with the work being performed shall be provided at the work site. 24. In case the number of children below the age of five years accompanying the women working at any site is five or more, provisions shall be made to depute one of such women workers to look after such children. The person so deputed shall be paid wage rate. The most marginalized women in the locality, women in exploitative conditions or bonded labour or those vulnerable to being trafficked or liberated manual scavengers should be employed for providing child care services. **Welfare:—** 25. If any personal injury is caused to any person employed under the Scheme by any accident arising out of and in the course of his employment, he shall be entitled to such medical treatment as required, free of cost. 26. Where hospitalisation of the injured worker is necessary, the State Government shall arrange for such hospitalisation including accommodation, treatment, medicines and payment of daily allowance which is not less than half of the wage rate. 1[27. If a person employed under the Scheme meets with death or becomes permanently disabled by accident arising out of and in the course of employment, he or his legal heirs, as the case may be, shall be paid by the implementing agency an ex-gratia as per entitlement under the Pradhan Mantri _Suraksha Bima Yojana or as may be notified by the Central Government.]_ 28. If any personal injury is caused by accident to a child accompanying a person who is employed under the Scheme, such person shall be entitled to medical treatment free of cost; and in case of death or disablement of the child due to the said accident, ex gratia shall be paid to the legal guardians as determined by the State Government. **Wage payment : —** 29. (1) In case the payment of wages is not made within fifteen days from the date of closure of the muster roll, the wage seekers shall be entitled to receive payment of compensation for the delay, at the rate of 0.05% of the unpaid wages per day of delay beyond the sixteenth day of closure of muster roll. (a) Any delay in payment of compensation beyond a period of fifteen days from the date it becomes payable, shall be considered in the same manner as the delay in payment of wages. 1. Subs. by Notification S.O. No. 2309(E), dated 13-7-2020. 28 ----- (b) For the purpose of ensuring accountability in payment of wages and to calculate culpability of various functionaries or agencies, the States shall divide the processes leading to determination and payment of wages into various stages such as— i. measurement of work; ii. computerising the muster rolls; iii. computerising the measurements; iv. generation of wage lists; and v. uploading Fund Transfer Orders (FTOs), and specify stage-wise maximum time limits along with the functionary or agency which is responsible for discharging the specific function. (c) The computer system shall have a provision to automatically calculate the compensation payable based on the date of closure of the muster roll and the date of deposit of wages in the accounts of the wage seekers. (d) The State Government shall pay the compensation upfront after due verification within the time limits as specified above and recover the compensation amount from the functionaries or agencies who is responsible for the delay in payment. (e) It shall be the duty of the District Programme Coordinator or Programme Officer to ensure that the system is operationalised. (f) The number of days of delay, the compensation payable and actually paid shall be reflected in the Monitoring and Information System and the Labour Budget. (2) Effective implementation of sub-paragraph (1) shall be considered necessary for the purposes of the Section 27 of the Act. 30. The payment of wages shall, unless so exempted by the Central Government, be made through the individual savings accounts of the workers in the relevant Banks or Post Offices. 31. In case of employment provided under the Scheme, there shall be no discrimination solely on the ground of gender and the provisions of the Equal Remuneration Act, 1976 (25 of 1976), shall be complied with. **Record maintenance and grievance redressal system:—** 32. The Gram Panchayat shall prepare and maintain or cause to be prepared and maintained such registers, vouchers and other documents in such form and in such manner as may be specified in the 29 ----- Scheme containing particulars of job cards and pass books issued, name, age and address of the head of the household and the adult members of the households registered with the Gram Panchayat. 33. The Gram Panchayat shall send such list or lists of the names and addresses of households and their adult members registered with it and supply such other information to the concerned Programme Officer at such periods and in such form as may be specified in the Scheme. 34. (1) Notwithstanding anything contained in this Schedule, in the event of any national calamity such as flood, cyclone, tsunami and earthquake resulting in mass dislocation of rural population, the adult members of rural households of areas so affected may— (a) seek for registration and get job card issued by the Gram Panchayat or Programme Officer of the area of temporary relocation; (b) submit written or oral applications for work to the Programme Officer or the Gram Panchayat of the area of temporary relocation; and (c) apply for re-registration and re-issuance of job card in the event of any loss or destruction. (2) The details of such job cards shall be intimated to the District Programme Coordinator. (3) In the event of restoration of normalcy, the job card so issued shall be re-endorsed at original place of habitation and clubbed with the original job card on being retrieved. (4) The number of days of employment so provided shall be counted while computing 100 days of guaranteed employment per household. 35. Every worker shall have an opportunity of being heard and register any grievance either orally or in writing, at all implementation levels for disposal as per the provisions of the Grievance Redressal Mechanism under the Scheme.] 30 -----

13-Sep-2005

43

The Protection of Women from Domestic Violence Act, 2005

https://www.indiacode.nic.in/bitstream/123456789/2021/5/A2005-43.pdf

central

# THE PROTECTION OF WOMEN FROM DOMESTIC VIOLENCE ACT, 2005 _____________ # ARRANGEMENT OF SECTIONS _____________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II DOMESTIC VIOLENCE 3. Definition of domestic violence. CHAPTER III POWERS AND DUTIES OF PROTECTION OFFICERS, SERVICE PROVIDERS, ETC. 4. Information to Protection Officer and exclusion of liability of informant. 5. Duties of police officers, service providers and Magistrate. 6. Duties of shelter homes. 7. Duties of medical facilities. 8. Appointment of Protection Officers. 9. Duties and functions of Protection Officers. 10. Service providers. 11. Duties of Government. CHAPTER IV PROCEDURE FOR OBTAINING ORDERS OF RELIEFS 12. Application to Magistrate. 13. Service of notice. 14. Counselling. 15. Assistance of welfare expert. 16. Proceedings to be held in camera. 17. Right to reside in a shared household. 18. Protection orders. 19. Residence orders. 20. Monetary reliefs. 21. Custody orders. 22. Compensation orders. 23. Power to grant interim and ex parte orders. 24. Court to give copies of order free of cost. 25. Duration and alteration of orders. 26. Relief in other suits and legal proceedings. 27. Jurisdiction. 28. Procedure. ----- SECTIONS 29. Appeal. CHAPTER V MISCELLANEOUS 30. Protection Officers and members of service providers to be public servants. 31. Penalty for breach of protection order by respondent. 32. Cognizance and proof. 33. Penalty for not discharging duty by Protection Officer. 34. Cognizance of offence committed by Protection Officer. 35. Protection of action taken in good faith. 36. Act not in derogation of any other law. 37. Power of Central Government to make rules. ----- # THE PROTECTION OF WOMEN FROM DOMESTIC VIOLENCE ACT, 2005 ACT NO. 43 OF 2005 [13th September, 2005.] # An Act to provide for more effective protection of the rights of women guaranteed under the Constitution who are victims of violence of any kind occurring within the family and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-sixth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Protection of Women** from Domestic Violence Act, 2005. (2) It extends to the whole of India [1]***. (3) It shall come into force on such date[2] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “aggrieved person” means any woman who is, or has been, in a domestic relationship with the respondent and who alleges to have been subjected to any act of domestic violence by the respondent; (b) “child” means any person below the age of eighteen years and includes any adopted, step or foster child; (c) “compensation order” means an order granted in terms of section 22; (d) “custody order” means an order granted in terms of section 21; (e) “domestic incident report” means a report made in the prescribed form on receipt of a complaint of domestic violence from an aggrieved person; (f) “domestic relationship” means a relationship between two persons who live or have, at any point of time, lived together in a shared household, when they are related by consanguinity, marriage, or through a relationship in the nature of marriage, adoption or are family members living together as a joint family; (g) “domestic violence” has the same meaning as assigned to it in section 3; (h) “dowry” shall have the same meaning as assigned to it in section 2 of the Dowry Prohibition Act, 1961 (28 of 1961); (i) “Magistrate” means the Judicial Magistrate of the first class, or as the case may be, the Metropolitan Magistrate, exercising jurisdiction under the Code of Criminal Procedure, 1973 (2 of 1974) in the area where the aggrieved person resides temporarily or otherwise or the respondent resides or the domestic violence is alleged to have taken place; (j) “medical facility” means such facility as may be notified by the State Government to be a medical facility for the purposes of this Act; (k) “monetary relief” means the compensation which the Magistrate may order the respondent to pay to the aggrieved person, at any stage during the hearing of an application seeking any relief under this Act, to meet the expenses incurred and the losses suffered by the aggrieved person as a result of the domestic violence; (l) “notification” means a notification published in the Official Gazette and the expression “notified” shall be construed accordingly; (m) “prescribed” means prescribed by rules made under this Act; 1. The words “except the State of Jammu and Kashmir” omitted by Act 34 of 2019, s. 95 and the Fifth Schedule (w.e.f. 31-10-2019). 2. 26th October, 2006, vide Notification No. S.O. 1776(E), dated by 17th October, 2006, see Gazette of India, Extraordinary, Part II, sec. 3(ii). ----- (n) “Protection Officer” means an officer appointed by the State Government under sub-section (1) of section 8; (o) “protection order” means an order made in terms of section 18; (p) “residence order” means an order granted in terms of sub-section (1) of section 19; (q) “respondent” means any adult male person who is, or has been, in a domestic relationship with the aggrieved person and against whom the aggrieved person has sought any relief under this Act: Provided that an aggrieved wife or female living in a relationship in the nature of a marriage may also file a complaint against a relative of the husband or the male partner; (r) “service provider” means an entity registered under sub-section (1) of section 10; (s) “shared household” means a household where the person aggrieved lives or at any stage has lived in a domestic relationship either singly or along with the respondent and includes such a household whether owned or tenanted either jointly by the aggrieved person and the respondent, or owned or tenanted by either of them in respect of which either the aggrieved person or the respondent or both jointly or singly have any right, title, interest or equity and includes such a household which may belong to the joint family of which the respondent is a member, irrespective of whether the respondent or the aggrieved person has any right, title or interest in the shared household; (t) “shelter home” means any shelter home as may be notified by the State Government to be a shelter home for the purposes of this Act. CHAPTER II DOMESTIC VIOLENCE **3. Definition of domestic violence.—For the purposes of this Act, any act, omission or commission** or conduct of the respondent shall constitute domestic violence in case it— (a) harms or injures or endangers the health, safety, life, limb or well-being, whether mental or physical, of the aggrieved person or tends to do so and includes causing physical abuse, sexual abuse, verbal and emotional abuse and economic abuse; or (b) harasses, harms, injures or endangers the aggrieved person with a view to coerce her or any other person related to her to meet any unlawful demand for any dowry or other property or valuable security; or (c) has the effect of threatening the aggrieved person or any person related to her by any conduct mentioned in clause (a) or clause (b); or (d) otherwise injures or causes harm, whether physical or mental, to the aggrieved person. _Explanation I.—For the purposes of this section,—_ (i) “physical abuse” means any act or conduct which is of such a nature as to cause bodily pain, harm, or danger to life, limb, or health or impair the health or development of the aggrieved person and includes assault, criminal intimidation and criminal force; (ii) “sexual abuse” includes any conduct of a sexual nature that abuses, humiliates, degrades or otherwise violates the dignity of woman; (iii) “verbal and emotional abuse” includes— (a) insults, ridicule, humiliation, name calling and insults or ridicule specially with regard to not having a child or a male child; and (b) repeated threats to cause physical pain to any person in whom the aggrieved person is interested; (iv) “economic abuse” includes— (a) deprivation of all or any economic or financial resources to which the aggrieved person is entitled under any law or custom whether payable under an order of a court or otherwise or which the aggrieved person requires out of necessity including, but not limited to, household necessities ----- for the aggrieved person and her children, if any, stridhan, property, jointly or separately owned by the aggrieved person, payment of rental related to the shared house hold and maintenance; (b) disposal of household effects, any alienation of assets whether movable or immovable, valuables, shares, securities, bonds and the like or other property in which the aggrieved person has an interest or is entitled to use by virtue of the domestic relationship or which may be reasonably required by the aggrieved person or her children or her stridhan or any other property jointly or separately held by the aggrieved person; and (c) prohibition or restriction to continued access to resources or facilities which the aggrieved person is entitled to use or enjoy by virtue of the domestic relationship including access to the shared household. _Explanation II.—For the purpose of determining whether any act, omission, commission or conduct_ of the respondent constitutes “domestic violence” under this section, the overall facts and circumstances of the case shall be taken into consideration. CHAPTER III POWERS AND DUTIES OF PROTECTION OFFICERS, SERVICE PROVIDERS, ETC. **4. Information to Protection Officer and exclusion of liability of informant.—(1) Any person** who has reason to believe that an act of domestic violence has been, or is being, or is likely to be committed, may give information about it to the concerned Protection Officer. (2) No liability, civil or criminal, shall be incurred by any person for giving in good faith of information for the purpose of sub-section (1). **5. Duties of police officers, service providers and Magistrate.—A police officer, Protection** Officer, service provider or Magistrate who has received a complaint of domestic violence or is otherwise present at the place of an incident of domestic violence or when the incident of domestic violence is reported to him, shall inform the aggrieved person— (a) of her right to make an application for obtaining a relief by way of a protection order, an order for monetary relief, a custody order, a residence order, a compensation order or more than one such order under this Act; (b) of the availability of services of service providers; (c) of the availability of services of the Protection Officers; (d) of her right to free legal services under the Legal Services Authorities Act, 1987 (39 of 1987); (e) of her right to file a complaint under section 498A of the Indian Penal Code (45 of 1860), wherever relevant: Provided that nothing in this Act shall be construed in any manner as to relieve a police officer from his duty to proceed in accordance with law upon receipt of information as to the commission of a cognizable offence. **6. Duties of shelter homes.—If an aggrieved person or on her behalf a Protection Officer or a service** provider requests the person in charge of a shelter home to provide shelter to her, such person in charge of the shelter home shall provide shelter to the aggrieved person in the shelter home. **7. Duties of medical facilities.—If an aggrieved person or, on her behalf a Protection Officer or a** service provider requests the person in charge of a medical facility to provide any medical aid to her, such person in charge of the medical facility shall provide medical aid to the aggrieved person in the medical facility. **8. Appointment of Protection Officers.—(1) The State Government shall, by notification, appoint** such number of Protection Officers in each district as it may consider necessary and shall also notify the area or areas within which a Protection Officer shall exercise the powers and perform the duties conferred on him by or under this Act. (2) The Protection Officers shall as far as possible be women and shall possess such qualifications and experience as may be prescribed. ----- (3) The terms and conditions of service of the Protection Officer and the other officers subordinate to him shall be such as may be prescribed. **9. Duties and functions of Protection Officers.—(1) It shall be the duty of the Protection Officer—** (a) to assist the Magistrate in the discharge of his functions under this Act; (b) to make a domestic incident report to the Magistrate, in such form and in such manner as may be prescribed, upon receipt of a complaint of domestic violence and forward copies thereof to the police officer in charge of the police station within the local limits of whose jurisdiction domestic violence is alleged to have been committed and to the service providers in that area; (c) to make an application in such form and in such manner as may be prescribed to the Magistrate, if the aggrieved person so desires, claiming relief for issuance of a protection order; (d) to ensure that the aggrieved person is provided legal aid under the Legal Services Authorities Act, 1987 (39 of 1987) and make available free of cost the prescribed form in which a complaint is to be made; (e) to maintain a list of all service providers providing legal aid or counselling, shelter homes and medical facilities in a local area within the jurisdiction of the Magistrate; (f) to make available a safe shelter home, if the aggrieved person so requires and forward a copy of his report of having lodged the aggrieved person in a shelter home to the police station and the Magistrate having jurisdiction in the area where the shelter home is situated; (g) to get the aggrieved person medically examined, if she has sustained bodily injuries and forward a copy of the medical report to the police station and the Magistrate having jurisdiction in the area where the domestic violence is alleged to have been taken place; (h) to ensure that the order for monetary relief under section 20 is complied with and executed, in accordance with the procedure prescribed under the Code of Criminal Procedure, 1973 (2 of 1974); (i) to perform such other duties as may be prescribed. (2) The Protection Officer shall be under the control and supervision of the Magistrate, and shall perform the duties imposed on him by the Magistrate and the Government by, or under, this Act. **10. Service providers.—(1) Subject to such rules as may be made in this behalf, any voluntary** association registered under the Societies Registration Act, 1860 (21 of 1860) or a company registered under the Companies Act, 1956 (1 of 1956) or any other law for the time being in force with the objective of protecting the rights and interests of women by any lawful means including providing of legal aid, medical, financial or other assistance shall register itself with the State Government as a service provider for the purposes of this Act. (2) A service provider registered under sub-section (1) shall have the power to— (a) record the domestic incident report in the prescribed form if the aggrieved person so desires and forward a copy thereof to the Magistrate and the Protection Officer having jurisdiction in the area where the domestic violence took place; (b) get the aggrieved person medically examined and forward a copy of the medical report to the Protection Officer and the police station within the local limits of which the domestic violence took place; (c) ensure that the aggrieved person is provided shelter in a shelter home, if she so requires and forward a report of the lodging of the aggrieved person in the shelter home to the police station within the local limits of which the domestic violence took place. (3) No suit, prosecution or other legal proceeding shall lie against any service provider or any member of the service provider who is, or who is deemed to be, acting or purporting to act under this Act, for anything which is in good faith done or intended to be done in the exercise of powers or discharge of functions under this Act towards the prevention of the commission of domestic violence. **11. Duties of Government.—The Central Government and every State Government, shall take all** measures to ensure that— ----- (a) the provisions of this Act are given wide publicity through public media including the television, radio and the print media at regular intervals; (b) the Central Government and State Government officers including the police officers and the members of the judicial services are given periodic sensitization and awareness training on the issues addressed by this Act; (c) effective co-ordination between the services provided by concerned Ministries and Departments dealing with law, home affairs including law and order, health and human resources to address issues of domestic violence is established and periodical review of the same is conducted; (d) protocols for the various Ministries concerned with the delivery of services to women under this Act including the courts are prepared and put in place. CHAPTER IV PROCEDURE FOR OBTAININGORDERS OF RELIEFS **12. Application to Magistrate.—(1) An aggrieved person or a Protection Officer or any other person** on behalf of the aggrieved person may present an application to the Magistrate seeking one or more reliefs under this Act: Provided that before passing any order on such application, the Magistrate shall take into consideration any domestic incident report received by him from the Protection Officer or the service provider. (2) The relief sought for under sub-section (1) may include a relief for issuance of an order for payment of compensation or damages without prejudice to the right of such person to institute a suit for compensation or damages for the injuries caused by the acts of domestic violence committed by the respondent: Provided that where a decree for any amount as compensation or damages has been passed by any court in favour of the aggrieved person, the amount, if any, paid or payable in pursuance of the order made by the Magistrate under this Act shall be set off against the amount payable under such decree and the decree shall, notwithstanding anything contained in the Code of Civil Procedure, 1908 (5 of 1908), or any other law for the time being in force, be executable for the balance amount, if any, left after such set off. (3) Every application under sub-section (1) shall be in such form and contain such particulars as may be prescribed or as nearly as possible thereto. (4) The Magistrate shall fix the first date of hearing, which shall not ordinarily be beyond three days from the date of receipt of the application by the court. (5) The Magistrate shall Endeavour to dispose of every application made under sub-section (1) within a period of sixty days from the date of its first hearing. **13. Service of notice.—(1) A notice of the date of hearing fixed under section 12 shall be given by** the Magistrate to the Protection Officer, who shall get it served by such means as may be prescribed on the respondent, and on any other person, as directed by the Magistrate within a maximum period of two days or such further reasonable time as may be allowed by the Magistrate from the date of its receipt. (2) A declaration of service of notice made by the Protection Officer in such form as may be prescribed shall be the proof that such notice was served upon the respondent and on any other person as directed by the Magistrate unless the contrary is proved. **14. Counselling.—(1) The Magistrate may, at any stage of the proceedings under this Act, direct the** respondent or the aggrieved person, either singly or jointly, to undergo counselling with any member of a service provider who possess such qualifications and experience in counselling as may be prescribed. (2) Where the Magistrate has issued any direction under sub-section (1), he shall fix the next date of hearing of the case within a period not exceeding two months. ----- **15. Assistance of welfare expert.—In any proceeding under this Act, the Magistrate may secure the** services of such person, preferably a woman, whether related to the aggrieved person or not, including a person engaged in promoting family welfare as he thinks fit, for the purpose of assisting him in discharging his functions. **16. Proceedings to be held** **_in camera.—If the Magistrate considers that the circumstances of the_** case so warrant, and if either party to the proceedings so desires, he may conduct the proceedings under this Act in camera. **17. Right to reside in a shared household.—(1) Notwithstanding anything contained in any other** law for the time being in force, every woman in a domestic relationship shall have the right to reside in the shared household, whether or not she has any right, title or beneficial interest in the same. (2) The aggrieved person shall not be evicted or excluded from the shared household or any part of it by the respondent save in accordance with the procedure established by law. **18. Protection orders.—The Magistrate may, after giving the aggrieved person and the respondent** an opportunity of being heard and on being prima facie satisfied that domestic violence has taken place or is likely to take place, pass a protection order in favour of the aggrieved person and prohibit the respondent from— (a) committing any act of domestic violence; (b) aiding or abetting in the commission of acts of domestic violence; (c) entering the place of employment of the aggrieved person or, if the person aggrieved is a child, its school or any other place frequented by the aggrieved person; (d) attempting to communicate in any form, whatsoever, with the aggrieved person, including personal, oral or written or electronic or telephonic contact; (e) alienating any assets, operating bank lockers or bank accounts used or held or enjoyed by both the parties, jointly by the aggrieved person and the respondent or singly by the respondent, including her stridhan or any other property held either jointly by the parties or separately by them without the leave of the Magistrate; (f) causing violence to the dependants, other relatives or any person who give the aggrieved person assistance from domestic violence; (g) committing any other act as specified in the protection order. **19. Residence orders.—(1) While disposing of an application under sub-section (1) of section12, the** Magistrate may, on being satisfied that domestic violence has taken place, pass a residence order— (a) restraining the respondent from dispossessing or in any other manner disturbing the possession of the aggrieved person from the shared household, whether or not the respondent has a legal or equitable interest in the shared household; (b) directing the respondent to remove himself from the shared household; (c) restraining the respondent or any of his relatives from entering any portion of the shared household in which the aggrieved person resides; (d) restraining the respondent from alienating or disposing off the shared household or encumbering the same; (e) restraining the respondent from renouncing his rights in the shared household except with the leave of the Magistrate; or (f) directing the respondent to secure same level of alternate accommodation for the aggrieved person as enjoyed by her in the shared household or to pay rent for the same, if the circumstances so require: Provided that no order under clause (b) shall be passed against any person who is a woman. ----- (2) The Magistrate may impose any additional conditions or pass any other direction which he may deem reasonably necessary to protect or to provide for the safety of the aggrieved person or any child of such aggrieved person. (3) The Magistrate may require from the respondent to execute a bond, with or without sureties, for preventing the commission of domestic violence. (4) An order under sub-section (3) shall be deemed to be an order under Chapter VIII of the Code of Criminal Procedure, 1973 (2 of 1974) and shall be dealt with accordingly. (5) While passing an order under sub-section (1), sub-section (2) or sub-section (3), the court may also pass an order directing the officer in charge of the nearest police station to give protection to the aggrieved person or to assist her or the person making an application on her behalf in the implementation of the order. (6) While making an order under sub-section (1), the Magistrate may impose on the respondent obligations relating to the discharge of rent and other payments, having regard to the financial needs and resources of the parties. (7) The Magistrate may direct the officer in-charge of the police station in whose jurisdiction the Magistrate has been approached to assist in the implementation of the protection order. (8) The Magistrate may direct the respondent to return to the possession of the aggrieved person her _stridhan or any other property or valuable security to which she is entitled to._ **20. Monetary reliefs.—(1) While disposing of an application under sub-section (1) of section 12, the** Magistrate may direct the respondent to pay monetary relief to meet the expenses incurred and losses suffered by the aggrieved person and any child of the aggrieved person as a result of the domestic violence and such relief may include, but not limited to,— (a) the loss of earnings; (b) the medical expenses; (c) the loss caused due to the destruction, damage or removal of any property from the control of the aggrieved person; and (d) the maintenance for the aggrieved person as well as her children, if any, including an order under or in addition to an order of maintenance under section 125 of the Code of Criminal Procedure, 1973 (2 of 1974) or any other law for the time being in force. (2) The monetary relief granted under this section shall be adequate, fair and reasonable and consistent with the standard of living to which the aggrieved person is accustomed. (3) The Magistrate shall have the power to order an appropriate lump sum payment or monthly payments of maintenance, as the nature and circumstances of the case may require. (4) The Magistrate shall send a copy of the order for monetary relief made under sub-section (1) to the parties to the application and to the in charge of the police station within the local limits of whose jurisdiction the respondent resides. (5) The respondent shall pay the monetary relief granted to the aggrieved person within the period specified in the order under sub-section (1). (6) Upon the failure on the part of the respondent to make payment in terms of the order under sub-section (1), the Magistrate may direct the employer or a debtor of the respondent, to directly pay to the aggrieved person or to deposit with the court a portion of the wages or salaries or debt due to or accrued to the credit of the respondent, which amount may be adjusted towards the monetary relief payable by the respondent. **21. Custody orders.—Notwithstanding anything contained in any other law for the time being in** force, the Magistrate may, at any stage of hearing of the application for protection order or for any other relief under this Act grant temporary custody of any child or children to the aggrieved person or the person making an application on her behalf and specify, if necessary, the arrangements for visit of such child or children by the respondent: ----- Provided that if the Magistrate is of the opinion that any visit of the respondent may be harmful to the interests of the child or children, the Magistrate shall refuse to allow such visit. **22. Compensation orders.—In addition to other reliefs as may be granted under this Act, the** Magistrate may on an application being made by the aggrieved person, pass an order directing the respondent to pay compensation and damages for the injuries, including mental torture and emotional distress, caused by the acts of domestic violence committed by that respondent. **23. Power to grant interim and ex parte orders.—(1) In any proceeding before him under this Act,** the Magistrate may pass such interim order as he deems just and proper. (2) If the Magistrate is satisfied that an application _prima facie discloses that the respondent is_ committing, or has committed an act of domestic violence or that there is a likelihood that the respondent may commit an act of domestic violence, he may grant an ex parte order on the basis of the affidavit in such form, as may be prescribed, of the aggrieved person under section 18, section 19, section 20, section 21 or, as the case may be, section 22 against the respondent. **24. Court to give copies of order free of cost.—The Magistrate shall, in all cases where he has** passed any order under this Act, order that a copy of such order, shall be given free of cost, to the parties to the application, the police officer in-charge of the police station in the jurisdiction of which the Magistrate has been approached, and any service provider located within the local limits of the jurisdiction of the court and if any service provider has registered a domestic incident report, to that service provider. **25. Duration and alteration of orders.—(1) A protection order made under section 18 shall be in** force till the aggrieved person applies for discharge. (2) If the Magistrate, on receipt of an application from the aggrieved person or the respondent, is satisfied that there is a change in the circumstances requiring alteration, modification or revocation of any order made under this Act, he may, for reasons to be recorded in writing pass such order, as he may deem appropriate. **26. Relief in other suits and legal proceedings.—(1) Any relief available under sections 18, 19, 20,** 21 and 22 may also be sought in any legal proceeding, before a civil court, family court or a criminal court, affecting the aggrieved person and the respondent whether such proceeding was initiated before or after the commencement of this Act. (2) Any relief referred to in sub-section (1) may be sought for in addition to and along with any other relief that the aggrieved person may seek in such suit or legal proceeding before a civil or criminal court. (3) In case any relief has been obtained by the aggrieved person in any proceedings other than a proceeding under this Act, she shall be bound to inform the Magistrate of the grant of such relief. **27. Jurisdiction.—(1) The court of Judicial Magistrate of the first class or the Metropolitan** Magistrate, as the case may be, within the local limits of which— (a) the person aggrieved permanently or temporarily resides or carries on business or is employed; or (b) the respondent resides or carries on business or is employed; or (c) the cause of action has arisen, shall be the competent court to grant a protection order and other orders under this Act and to try offences under this Act. (2) Any order made under this Act shall be enforceable throughout India. **28. Procedure.—(1) Save as otherwise provided in this Act, all proceedings under sections 12,18,** 19, 20, 21, 22 and 23 and offences under section 31 shall be governed by the provisions of the Code of Criminal Procedure, 1973 (2 of 1974). (2) Nothing in sub-section (1) shall prevent the court from laying down its own procedure for disposal of an application under section 12 or under sub-section (2) of section 23. ----- **29. Appeal.—There shall lie an appeal to the Court of Session within thirty days from the date on** which the order made by the Magistrate is served on the aggrieved person or the respondent, as the case may be, whichever is later. CHAPTER V MISCELLANEOUS **30. Protection Officers and members of service providers to be public servants.—The Protection** Officers and members of service providers, while acting or purporting to act in pursuance of any of the provisions of this Act or any rules or orders made thereunder shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **31. Penalty for breach of protection order by respondent.—(1) A breach of protection order, or of** an interim protection order, by the respondent shall be an offence under this Act and shall be punishable with imprisonment of either description for a term which may extend to one year, or with fine which may extend to twenty thousand rupees, or with both. (2) The offence under sub-section (1) shall as far as practicable be tried by the Magistrate who had passed the order, the breach of which has been alleged to have been caused by the accused. (3) While framing charges under sub-section (1), the Magistrate may also frame charges under section 498A of the Indian Penal Code (45 of 1860) or any other provision of that Code or the Dowry Prohibition Act, 1961 (28 of 1961), as the case may be, if the facts disclose the commission of an offence under those provisions. **32. Cognizance and proof.—(1) Notwithstanding anything contained in the Code of Criminal** Procedure, 1973 (2 of 1974), the offence under sub-section (1) of section 31 shall be cognizable and non-bailable. (2) Upon the sole testimony of the aggrieved person, the court may conclude that an offence under sub-section (1) of section 31 has been committed by the accused. **33. Penalty for not discharging duty by Protection Officer.—If any Protection Officer fails or** refuses to discharge his duties as directed by the Magistrate in the protection order without any sufficient cause, he shall be punished with imprisonment of either description for a term which may extend to one year, or with fine which may extend to twenty thousand rupees, or with both. **34. Cognizance of offence committed by Protection Officer.—No prosecution or other legal** proceeding shall lie against the Protection Officer unless a complaint is filed with the previous sanction of the State Government or an officer authorised by it in this behalf. **35. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall** lie against the Protection Officer for any damage caused or likely to be caused by anything which is in good faith done or intended to be done under this Act or any rule or order made thereunder. **36. Act not in derogation of any other law.—The provisions of this Act shall be in addition to, and** not in derogation of the provisions of any other law, for the time being in force. **37. Power of Central Government to make rules.—(1) The Central Government may, by** notification, make rules for carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the qualifications and experience which a Protection Officer shall possess under sub-section (2) of section 8; (b) the terms and conditions of service of the Protection Officers and the other officers subordinate to him, under sub-section (3) of section 8; (c) the form and manner in which a domestic incident report may be made under clause (b) of sub-section (1) of section 9; (d) the form and the manner in which an application for protection order may be made to the Magistrate under clause (c) of sub-section (1) of section 9; ----- (e) the form in which a complaint is to be filed under clause (d) of sub-section (1) of section 9; (f) the other duties to be performed by the Protection Officer under clause (i) of sub-section (1) of section 9; (g) the rules regulating registration of service providers under sub-section (1) of section 10; (h) the form in which an application under sub-section (1) of section 12 seeking reliefs under this Act may be made and the particulars which such application shall contain under sub-section (3) of that section; (i) the means of serving notices under sub-section (1) of section 13; (j) the form of declaration of service of notice to be made by the Protection Officer under sub-section (2) of section 13; (k) the qualifications and experience in counselling which a member of the service provider shall possess under sub-section (1) of section 14; (l) the form in which an affidavit may be filed by the aggrieved person under sub-section (2) of section 23; (m) any other matter which has to be, or may be, prescribed. (3) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. -----

20-Dec-2005

49

The National Tax Tribunal Act, 2005

https://www.indiacode.nic.in/bitstream/123456789/2032/3/A2005-49.pdf

central

# THE NATIONAL TAX TRIBUNAL ACT, 2005 __________ # ARRANGEMENT OF SECTIONS __________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II ESTABLISHMENT OF THE NATIONAL TAX TRIBUNAL 3. Establishment of National Tax Tribunal. 4. Composition of National Tax Tribunal. 5. Constitution and jurisdiction of Benches. 6. Qualifications for appointment of Chairperson and other Members. 7. Appointment of Chairperson and other Members. 8. Terms of office of Chairperson and other Members. 9. Resignation of Chairperson and other Members. 10. Salary and allowances. 11. Removal and suspension of Chairperson and other Members. 12. Officers and employees of National Tax Tribunal. 13. Appearances before National Tax Tribunal. 14. Member to act as Chairperson or to discharge his functions in certain circumstances. CHAPTER III JURISDICTION, POWERS AND FUNCTIONS OF NATIONAL TAX TRIBUNAL 15. Appeal to National Tax Tribunal. 16. Procedure and powers of National Tax Tribunal. 17. Finality of orders of National Tax Tribunal. 18. Decision by majority. 19. Special Bench. 20. Interim order. 21. Power to punish for contempt. 22. Order of National Tax Tribunal. 23. Transfer of pending cases from High Court. 24. Appeal to Supreme Court. CHAPTER VI MISCELLANEOUS 25. Members, etc., to be public servants. 26. Protection of action taken in good faith. 27. Power to remove difficulties. 28. Power to make rules. 29. Laying of rules before Parliament. 30. Consequential amendments. THE SCHEDULE. 1 ----- 1[THE NATIONAL TAX TRIBUNAL ACT, 2005] # ACT NO. 49 OF 2005 [20th December, 2005.] # An Act to provide for the adjudication by the National Tax Tribunal of disputes with respect to levy, assessment, collection and enforcement of direct taxes and also to provide for the adjudication by that Tribunal of disputes with respect to the determination of the rates of duties of customs and central excise on goods and the valuation of goods for the purposes of assessment of such duties as well as in matters relating to levy of tax on service, in pursuance of article 323B of the Constitution and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-sixth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the National Tax Tribunal** Act, 2005. (2) It extends to the whole of India. (3) It shall come into force on such date[2] as the Central Government may, by notification in the Official Gazette, appoint: Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “Bench” means a Bench of the National Tax Tribunal; (b) “Board of Direct Taxes” means the Central Board of Direct Taxes constituted under the Central Boards of Revenue Act, 1963 (54 of 1963); (c) “Board of Excise and Customs” means the Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963 (54 of 1963); (d) “Central Excise Act” means the Central Excise Act, 1944 (1 of 1944); (e) “Central Excise Tariff Act” means the Central Excise Tariff Act, 1985 (5 of 1986); (f) “Chairperson” means the Chairperson of the National Tax Tribunal; (g) “Companies (Profits) Surtax Act” means the Companies (Profits) Surtax Act, 1964 (7 of 1964); (h) “Customs Act” means the Customs Act, 1962 (52 of 1962); (i) “Customs, Excise and Service Tax Appellate Tribunal” means the Customs, Excise and Service Tax Appellate Tribunal constituted under section 129 of the Customs Act, 1962 (52 of 1962); (j) “Customs Tariff Act” means the Customs Tariff Act, 1975 (51 of 1975); (k) “Expenditure-tax Act” means the Expenditure-tax Act, 1987 (35 of 1987); (l) “Gift-tax Act” means the Gift-tax Act, 1958 (18 of 1958); (m) “Income-tax Act” means the Income-tax Act, 1961 (43 of 1961); 1. This Act has been struck down by the Supreme Court’s Order dated 25[th] September, 2014 in the Madras Bar Association Vs. Union of India. 2. 28th December, 2005, vide notification No. S.O. 1826(E), dated 28 December, 2005, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 2 ----- (n) “Income-tax Appellate Tribunal” means the Income-tax Appellate Tribunal constituted under section 252 of the Income-tax Act, 1961 (43 of 1961); (o) “Interest-tax Act” means the Interest-tax Act, 1974 (45 of 1974); (p) “law officer” means the Attorney-General for India, the Solicitor General of India or the Additional Solicitor General of India; (q) “Member” means a Member of the National Tax Tribunal and includes the Chairperson; (r) “National Tax Tribunal” means the National Tax Tribunal established under section 3; (s) “notification” means a notification published in the Official Gazette; (t) “prescribed” means prescribed by rules made under this Act; (u) “Supreme Court” means the Supreme Court of India; (v) “Wealth-tax Act” means the Wealth-tax Act, 1957 (27 of 1957); (w) words and expressions used in this Act but not defined herein and defined in the Central Excise Act, the Central Excise Tariff Act, the Customs Act, the Customs Tariff Act (hereinafter referred to as the indirect taxes) or the rules made thereunder or in Chapter V of the Finance Act, 1994 (32 of 1994) shall have the meanings, respectively, assigned to them in the said Acts or the rules made thereunder; (x) words and expressions used in this Act but not defined herein and defined in the Income-tax Act, the Wealth-tax Act, the Gift-tax Act, the Expenditure-tax Act, the Interest-tax Act or the Companies (Profits) Surtax Act (hereinafter referred to as the direct taxes) or the rules made thereunder shall have the meanings, respectively, assigned to them in the said Acts or the rules made thereunder. CHAPTER II ESTABLISHMENT OF THE NATIONAL TAX TRIBUNAL **3. Establishment of National Tax Tribunal.—The Central Government shall, by notification in the** Official Gazette, establish with effect from such date as may be specified therein, a Tax Tribunal to be known as the National Tax Tribunal to exercise the jurisdiction, powers and authority conferred on such Tribunal by or under this Act. **4. Composition of National Tax Tribunal.—The National Tax Tribunal shall consist of a** Chairperson and such number of Members as the Central Government deems fit, to be appointed by that Government, by notification in the Official Gazette. **5. Constitution and jurisdiction of Benches.—(1) The jurisdiction of the National Tax Tribunal** may be exercised by the Benches thereof to be constituted by the Chairperson. (2) The Benches of the National Tax Tribunal shall ordinarily sit at any place in the National Capital Territory of Delhi or such other places as the Central Government may, in consultation with the Chairperson, notify: Provided that the Chairperson may for adequate reasons permit a Bench to hold its temporary sitting for a period not exceeding fifteen days at a place other than its ordinary place of seat. (3) The Central Government shall notify the areas in relation to which each Bench of the National Tax Tribunal may exercise its jurisdiction. (4) The Central Government shall determine the number of Benches and each Bench shall consist of two members. (5) The Central Government may [1]*** transfer a Member from headquarters of one Bench in one State to the headquarters of another Bench in another State or to the headquarters of any other Bench within a State: 2[Provided that no Member shall be transferred without the concurrence of the Chairperson.] 1. The words “in consultation with the Chairperson” omitted by Act 18 of 2007, s. 2 (w.e.f. 29-1-2007). 2. Ins. by s. 2. ibid. (w.e.f. 29-1-2007). 3 ----- **6. Qualifications for appointment of Chairperson and other Members.—(1) The Chairperson of** the National Tax Tribunal shall be a person who has been a Judge of the Supreme Court or the Chief Justice of a High Court. (2) A person shall not be qualified for appointment as Member unless he— (a) is, or has been, or is eligible to be, a Judge of a High Court; or (b) is, or has been, a Member of the Income-tax Appellate Tribunal or of the Customs, Excise and Service Tax Appellate Tribunal for at least [1][five years]. **7. Appointment of Chairperson and other Members.—(1) Subject to the provisions of sub-section** (2), the Chairperson and every other Member shall be appointed by the Central Government. (2) The Chairperson and the other Members shall be appointed by the Central Government on the recommendations of a Selection Committee consisting of— (a) the Chief Justice of India or a Judge of the Supreme Court nominated by him; (b) the Secretary in the Ministry of Law and Justice (Department of Legal Affairs); (c) the Secretary in the Ministry of Finance (Department of Revenue). (3) No appointment of the Chairperson or of any other Member shall be invalidated merely by reason of any vacancy or any defect in the constitution of the Selection Committee. **8. Terms of office of Chairperson and other Members.—The Chairperson and every other Member** shall hold office as such for a term of five years from the date on which he enters upon his office but shall be eligible for re-appointment: Provided that no Chairperson or other Member shall hold office as such after he has attained,— (a) in the case of Chairperson, the age of sixty-eight years; and (b) in the case of any other Member, the age of sixty-five years. **9. Resignation of Chairperson and other Members.—The Chairperson or any other Member may,** by notice in writing under his hand addressed to the Central Government, resign his office. **10. Salary and allowances.—(1) Subject to the provisions of this Act, the salary and allowances and** other terms and conditions of the Chairperson shall be the same as applicable to a sitting Judge of the Supreme Court, but no vacation shall be allowed: Provided that if a person who, immediately before the date of assuming the office as the Chairperson was in receipt of or being eligible so to do, had elected to draw, a pension in respect of any previous service or office held by such person under the Government of the Union or of a State, his salary in respect of service as Chairperson shall be reduced by the amount of that pension. _Explanation.—For the purposes of this sub-section, “vacation” shall have the meaning assigned to it_ in the Supreme Court Judges (Conditions of Service) Act, 1958 (41 of 1958). (2) A Member shall draw salary of a High Court Judge and other allowances and the terms and conditions of his service shall be the same as applicable to a Secretary to the Government of India: Provided that if a person who, immediately before the date of assuming the office as Member was in receipt of, or being eligible so to do, had elected to draw, a pension in respect of any previous service held by such person in connection with the affairs of the Union or of a State, his salary in respect of service as Member shall be reduced to the extent of that pension. (3) The salary and allowances and other terms and conditions of service of Chairperson or a Member of the Tribunal shall not be varied to his disadvantage after appointment. **11. Removal and suspension of Chairperson and other Members.—(1) The Central Government** may, in consultation with the Chief Justice of India, remove from office the Chairperson or any Member who— 1. Subs. by Act 18 of 2007, s. 3, for “seven years” (w.e.f. 29-1-2007). 4 ----- (a) has been adjudged an insolvent; or (b) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or (c) has become physically or mentally incapable of acting as such Chairperson or Member of the National Tax Tribunal; or (d) has acquired such financial or other interest as is likely to affect prejudicially his functions as the Chairperson or a Member of the National Tax Tribunal; or (e) has so abused his position as to render his continuance in office prejudicial to the public interest. (2) The Chairperson or any other Member shall not be removed from his office except by an order made by the Central Government on the ground of proved misbehaviour or incapacity after an inquiry made by a Judge of the Supreme Court in which such Chairperson or Member had been informed of the charges against him and given a reasonable opportunity of being heard in respect of those charges. (3) The Central Government may suspend from office the Chairperson or any other Member in respect of whom a reference of conducting an inquiry has been made to the Judge of the Supreme Court under sub-section (2) until the Central Government has passed orders on receipt of the report of the Judge of the Supreme Court on such reference. (4) The Central Government may, by rules, regulate the procedure for the investigation of misbehaviour or incapacity of the Chairperson or a Member referred to in sub-section (2). **12. Officers and employees of National Tax Tribunal.—(1) The Central Government shall provide** the National Tax Tribunal with such officers and employees as it may deem fit. (2) The salaries and allowances and other conditions of service of officers and employees of the National Tax Tribunal shall be such as may be prescribed. (3) The officers and employees of the National Tax Tribunal shall discharge their functions under the general superintendence of the Chairperson. (4) The officers and the other employees shall be appointed on the recommendations of a Selection Committee constituted by the Central Government. **13. Appearance before National Tax Tribunal.—(1) A party to an appeal other than Government** may either appear in person or authorise one or more chartered accountants or legal practitioners [1]*** to present his or its case before the National Tax Tribunal. (2) The Government may authorise one or more legal practitioners or any of its officers to present its case before the National Tax Tribunal. _Explanation.—For the purposes of this section,—_ (a) “chartered accountant” means a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949 (38 of 1949) and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act; (b) “legal practitioner” means an advocate, a _vakil or any attorney of any High Court, and_ includes a pleader in practice. **14.** **Member to** **act** **as** **Chairperson** **or** **to** **discharge** **his functions** **in** **certain** **circumstances.—(1) In the event of any vacancy in the office of the Chairperson by reason of his death,** resignation or otherwise, the Central Government may designate the senior-most Member to act as the Chairperson until the day on which a Chairperson, appointed in accordance with the provisions of this Act to fill such vacancy, enters upon his office. 1. The words “or any person duly authorised by him or it” omitted by Act 18 of 2007, s. 4 (w.e.f. 29-1-2007). 5 ----- (2) When the Chairperson is unable to discharge his functions owing to absence, illness or any other cause, the Central Government may authorise the senior-most Member to discharge the functions of the Chairperson until the date on which the Chairperson resumes his duties. (3) The senior-most member designated to act under sub-section (1) or to discharge functions of the Chairperson under sub-section (2), of the Chairperson shall continue to draw salary and allowances of a Member. CHAPTER III JURISDICTION, POWERS AND FUNCTIONS OF NATIONAL TAX TRIBUNAL **15. Appeal to National Tax Tribunal.—(1) An appeal shall lie to the National Tax Tribunal from** every order passed in appeal by the Income-tax Appellate Tribunal and the Customs, Excise and Service Tax Appellate Tribunal, if the National Tax Tribunal is satisfied that the case involves a substantial question of law. (2) The Chief Commissioner or the Commissioner of Income-tax or the Chief Commissioner or Commissioner of Customs and Central Excise, as the case may be, or an assessee aggrieved by any order passed by the Income-tax Appellate Tribunal or any person aggrieved by any order passed by the Customs, Excise and Service Tax Appellate Tribunal (hereinafter referred to as aggrieved person), may file an appeal to the National Tax Tribunal and such appeal under this sub-section shall— (a) be filed within one hundred and twenty days from the date on which the order appealed against is received by the assessee or the aggrieved person or the Chief Commissioner or Commissioner, as the case may be; (b) be in the form of a memorandum of appeal precisely stating therein the substantial question of law involved; and (c) be accompanied by such fees as may be prescribed: Provided that separate form of memorandum of appeal shall be filed for matters involving direct and indirect taxes: Provided further that the National Tax Tribunal may entertain the appeal within sixty days after the expiry of the said period of one hundred and twenty days, if it is satisfied that the appellant was prevented by sufficient cause from preferring an appeal in time. (3) Where an appeal is admitted under sub-section (1), the National Tax Tribunal— (a) shall formulate the question of law for hearing the appeal; and (b) may also determine any relevant issue in connection with the question so formulated— (i) which has not been so determined by the Income-tax Appellate Tribunal or by the Customs, Excise and Service Tax Appellate Tribunal; or (ii) which has been wrongly determined by the Income-tax Appellate Tribunal or by the Customs, Excise and Service Tax Appellate Tribunal, and shall decide the question of law so formulated and the other relevant issue so determined and deliver such judgment thereon containing the grounds on which such decision is founded and may award such cost as it deems fit. (4) Where in any appeal under this section, the decision of the Income-tax Appellate Tribunal or the Customs, Excise and Service Tax Appellate Tribunal involves the payment of any tax or duties, the assessee or the aggrieved person, as the case may be, shall not be allowed to prefer such appeal unless he deposits at least twenty-five per cent. of such tax or duty payable on the basis of the order appealed against: Provided that where in a particular case the National Tax Tribunal is of the opinion that the deposit of tax or duty under this sub-section would cause undue hardship to such person, it may dispense with such deposit subject to such conditions as it may deem fit to impose so as to safeguard the interest of revenue. 6 ----- **16. Procedure and powers of National Tax Tribunal.—(1) The National Tax Tribunal shall not be** bound by the procedure laid down by the Code of Civil Procedure, 1908 (5 of 1908) but shall be guided by the principles of natural justice. (2) Subject to the other provisions of this Act, the National Tax Tribunal shall have powers to regulate its own procedure. (3) The National Tax Tribunal shall have, for the purposes of discharging its functions under this Act, the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) while trying a suit, in respect of the following matters, namely:— (a) requiring the discovery and production of books of account and other documents; (b) subject to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872 (1 of 1872), requisitioning any public record or document or a copy of such record or document, from any office; (c) dismissing an appeal for default or deciding it, ex parte; (d) setting aside any order of dismissal of any appeal for default or any order passed by it, _ex parte;_ (e) rectifying any mistake or error apparent on the face of record; and (f) any other matter which may be prescribed. (4) All proceedings before the National Tax Tribunal shall be deemed to be judicial proceedings within the meaning of sections 193 and 228 and for the purposes of section 196 of the Indian Penal Code (45 of 1860) and the National Tax Tribunal shall be deemed to be a civil court for the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). **17. Finality of orders of National Tax Tribunal.—Any order passed by the National Tax Tribunal** shall be final and shall be given effect to accordingly and no civil court shall have or be entitled to exercise any jurisdiction, power or authority with respect to any of the matters falling within the jurisdiction of the National Tax Tribunal. **18. Decision by majority.—If the Members of a Bench consisting of two Members differ in opinion** on any point, they shall state the point or points on which they differ, and make a reference to the Chairperson, who shall hear the point or points himself or nominate any other Member for such hearing and such point or points shall be decided according to the opinion of the majority, who have heard the case including those who first heard it. **19. Special Bench.—Where a judgment pronounced on a question of law by a Bench subsequently** comes up for hearing before any Bench, and the latter Bench is of the opinion that the question of law requires reconsideration, then the latter Bench shall make a reference to the Chairperson to constitute a Special Bench consisting of five Members to hear and decide such question of law. **20. Interim order.—Notwithstanding anything contained in any other provisions of this Act or any** other law for the time being in force, no interim order (whether by way of injunction or stay or otherwise) shall be made in relation to any appeal under this Act, unless— (a) copies of such appeal and all documents in support of the plea for such interim order are furnished to the party against whom the appeal is preferred; and (b) opportunity is given to such party to be heard in the matter. **21. Power to punish for contempt.—The National Tax Tribunal shall have and exercise the same** jurisdiction, powers and authority in respect of contempt of itself as the High Court has and may exercise 7 ----- such power or authority, for this purpose under the provisions of the Contempt of Courts Act, 1971 (70 of 1971), which shall have effect subject to the modification that— (a) any reference therein to a High Court shall be construed as including a reference to the National Tax Tribunal; (b) any reference to the Advocate General in section 15 of the said Act shall be construed as a reference to such law officer as the Central Government may specify in this behalf: Provided that such matters shall be heard by a Special Bench consisting of five Members constituted by the Chairperson. **22. Order of National Tax Tribunal.—The National Tax Tribunal may, after giving the parties to** any proceedings before it, an opportunity of being heard, pass such orders thereon as it thinks fit. **23. Transfer of pending cases from High Court.—(1) On and from such date as the Central** Government may, by notification, specify, all matters and proceedings including appeals and references under the direct taxes and indirect taxes pending before any High Court immediately before that date shall stand transferred to the National Tax Tribunal. (2) Where any matter or proceeding including appeals and references stand transferred from the High Court to the National Tax Tribunal under sub-section (1),— (a) the High Court shall, as soon as may be after such transfer, forward the records pertaining to such matter or proceeding to the National Tax Tribunal; (b) the National Tax Tribunal shall, on receipt of such records, proceed to deal with such matter or proceeding from the stage at which it is transferred or from an earlier stage or de novo as it may deem fit; (c) the Chairperson shall constitute a Bench consisting of such number of Members as he deems fit for hearing cases transferred under this section. **24. Appeal to Supreme Court.—Any person including any department of the Government aggrieved** by any decision or order of the National Tax Tribunal may file an appeal to the Supreme Court within sixty days from the date of communication of the decision or order of the National Tax Tribunal to him: Provided that the Supreme Court may, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within the said period, allow it to be filed within such time as it may deem fit. CHAPTER IV MISCELLANEOUS **25. Members, etc., to be public servants.—The Chairperson, Members and other officers and** employees of the National Tax Tribunal shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **26. Protection of action taken in good faith.—No suit, prosecution or other legal proceedings shall** lie against the National Tax Tribunal or its Chairperson, Member, officer or other employee in the discharge of any function for any loss or damage caused or likely to be caused by any act which is, in good faith, done or intended to be done in the discharge of any function under this Act. **27. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made after the expiry of a period of two years from the commencement of this Act. (2) Every order made under this section shall, as soon as may be, after it is made, be laid before each House of Parliament. 8 ----- **28. Power to make rules.—(1) The Central Government may, by notification, make rules to carry** out the provisions of this Act. (2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the procedure under sub-section (4) of section 11 for the investigation of charges of misbehaviour or incapacity against the Chairperson or other Members; (b) the salaries and allowances and other conditions of service of officers and other employees of the National Tax Tribunal under sub-section (2) of section 12; (c) the amount of fees payable under clause (c) of sub-section (2) of section 15; (d) the other matters in respect of which the National Tax Tribunal may exercise the powers of a civil court under clause (f) of sub-section (3) of section 16; (e) any other matter which may be prescribed or in respect of which rules are required to be made by the Central Government. **29. Laying of rules before Parliament.—Every rule made under this Act by the Central Government** shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **30. Consequential amendments.—On and from such date as the Central Government may, by** notification, specify, the enactments mentioned in the Schedule shall stand amended in the manner specified therein. 9 ----- THE SCHEDULE (See section 30) AMENDMENT OF CERTAIN ENACTMENTS PART I AMENDMENTS TO THE INCOME-TAX ACT, 1961 (43 OF 1961) 1. In section 2, after clause (29C), the following clause shall be inserted, namely:— '(29D) “National Tax Tribunal” means the National Tax Tribunal established under section 3 of the National Tax Tribunal Act, 2005;’. 2. In Chapter XX,— (i) in section 254, in sub-section (4), for the words, figures and letter “Save as provided in section 256 or section 260A”, the words and figures “Save as provided in the National Tax Tribunal Act, 2005” shall be substituted; (ii) sub-heading “C.—Reference to High Court” and sections 256, 258 and 259 shall be omitted; (iii) for section 260, the following section shall be substituted, namely:— “260. Effect to the decisions of Supreme Court and of the National Tax Tribunal.—(1) The Supreme Court upon hearing any reference made to it by the Appellate Tribunal under section 257 shall decide the question of law raised therein, and shall deliver its judgment thereon containing the grounds on which such decision is founded, and a copy of the judgment shall be sent under the seal of the Court and the signature of the Registrar to the Appellate Tribunal which shall pass such orders as are necessary to dispose of the case conforming to such judgment. (2) Where the National Tax Tribunal delivers a judgment in an appeal filed before it or in any matter transferred to it under the National Tax Tribunal Act, 2005, effect shall be given to the order of that Tribunal by the assessing officer on the basis of certified copy of the judgment. (3) The cost of any reference to the Supreme Court which shall not include the fee for making the reference shall be at the discretion of the Court.”; (iv) in section 260A, in sub-section (1), after the words “order passed in appeal by the Appellate Tribunal”, the words “before the date of establishment of the National Tax Tribunal” shall be inserted; (v) in section 261, after the words “any judgment of the High Court delivered”, the words “before the establishment of the National Tax Tribunal” shall be inserted; (vi) in section 263, in sub-section (3), after the words “the Appellate Tribunal,”, the words “National Tax Tribunal,” shall be inserted; (vii) in section 264, in sub-section (7), after the words “the Appellate Tribunal,”, the words “National Tax Tribunal,” shall be inserted. PART II AMENDMENTS TO THE WEALTH-TAX ACT, 1957 (27 OF 1957) 1. In section 2, after clause (lc), the following clause shall be inserted, namely:— '(ld) “National Tax Tribunal” means the National Tax Tribunal established under section 3 of the National Tax Tribunal Act, 2005;'. 2. In section 25, in sub-section (4), after the words “Appellate Tribunal,” the words “National Tax Tribunal” shall be inserted. 10 ----- 3. In section 27A,— (i) in sub-section (1), after the words and figures “file on or after the 1st day of October, 1998”, the words “but before the date of establishment of the National Tax Tribunal” shall be inserted; (ii) in sub-section (2), after the words “An appeal shall lie to the High Court”, the words “before the date of establishment of the National Tax Tribunal” shall be inserted. 4. In section 29, in sub-section (1), after the words “any judgment of the High Court delivered”, the words “before the date of establishment of the National Tax Tribunal” shall be inserted. 5. In section 29A, after the words “preferred to the Supreme Court”, the words and figures “under this Act before the commencement of the National Tax Tribunal Act, 2005” shall be inserted. PART III AMENDMENTS TO THE EXPENDITURE-TAX ACT, 1987 (35 OF 1987) 1. In section 13, in sub-section (4), for the words “or any order of a High Court”, the words “or any order of the National Tax Tribunal or of a High Court” shall be substituted. 2. In section 21, in sub-section (7), after the words “Appellate Tribunal,”, the words “the National Tax Tribunal,” shall be inserted. PART IV AMENDMENTS TO THE INTEREST-TAX ACT, 1974 (45 OF 1974) 1. In section 19, in sub-section (3), after the words “the Appellate Tribunal”, the words “the National Tax Tribunal” shall be inserted. 2. In section 20, in sub-section (7), for the words “Appellate Tribunal, the High Court or the Supreme Court”, the words “Appellate Tribunal, the National Tax Tribunal, the High Court or the Supreme Court” shall be substituted. PART V AMENDMENT TO THE FINANCE (NO. 2) ACT, 1998 (21 OF 1998) In section 76, in sub-section (1), the words, figures, letter and brackets “sections 23, 23A, 24, 25, 28 and 29 of the Wealth-tax Act as amended and section 27A as inserted by the Finance (No. 2) Act, 1998”, the words, figures and letter “sections 23, 23A, 24 and 25 of the Wealth-tax Act” shall be substituted. PART VI AMENDMENTS TO THE CUSTOMS ACT, 1962 (52 OF 1962) 1. In section 2, after clause (30), the following clause shall be inserted, namely:— '(30A) “National Tax Tribunal” means the National Tax Tribunal established under section 3 of the National Tax Tribunal Act, 2005,'. 2. In section 27, in sub-section (3), after the words “Appellate Tribunal”, the words “, the National Tax Tribunal” shall be inserted. 3. In section 27A, in the Explanation, after the words “Appellate Tribunal”, the words “, National Tax Tribunal” shall be inserted. 4. In section 28AA, in Explanations 1 and 2, after the words “Appellate Tribunal”, the words “, National Tax Tribunal” shall be inserted. 11 ----- 5. In section 28AB, in Explanations 1 and 2, after the words “Appellate Tribunal”, the words “, National Tax Tribunal” shall be inserted. 6. In section 28B, in sub-section (1), after the words “Appellate Tribunal”, the words “, National Tax Tribunal” shall be inserted. 7. Sections 130, 130A, 130B, 130C and 130D shall be omitted. 8. In section 130E, in clause (b), after the words “any order passed”, the words “before the establishment of the National Tax Tribunal” shall be inserted. 9. In section 131, after the words “an appeal has been preferred to the Supreme Court”, the words and figure “under this Act before the commencement of the National Tax Tribunal Act, 2005” shall be inserted. 10. In section 131C, clause (b) shall be omitted. PART VII AMENDMENTS TO THE CENTRAL EXCISE ACT, 1944 (1 OF 1944) 1. In section 2, after clause (f), the following clause shall be inserted, namely:— '(ff) “National Tax Tribunal” means the National Tax Tribunal established under section 3 of the National Tax Tribunal Act, 2005;'. 2. In section 11AA, in Explanations 1 and 2, after the words “Appellate Tribunal”, the words “, National Tax Tribunal” shall be inserted. 3. In section 11AB, in Explanations 1 and 2, after the words “Appellate Tribunal”, the words “, National Tax Tribunal” shall be inserted. 4. In section 11BB, in the Explanation, after the words “Appellate Tribunal”, the words “, National Tax Tribunal” shall be inserted. 5. In section 35C, in sub-section (4), for the words, figures and letters “Save as provided in section 35G or section 35L”, the words and figures “Save as provided in the National Tax Tribunal Act, 2005” shall be substituted. 6. Sections 35G, 35H, 35-I and 35J shall be omitted. 7. In section 35K,— (i) in sub-section (1), the words “High Court or the” shall be omitted; (ii) in sub-section (2),— (a) the words “the High Court or” occurring at both the places shall be omitted; (b) the words “as the case may be,” shall be omitted. 8. In section 35L, in clause (b), after the words “any order passed”, the words “before the establishment of the National Tax Tribunal” shall be inserted. 9. In section 35N, after the words “an appeal has been preferred to the Supreme Court”, the words and figures “under this Act before the commencement of the National Tax Tribunal Act, 2005” shall be inserted. ______________ 12 -----

20-Dec-2005

50

The State Emblem of India (Prohibition of Improper Use) Act, 2005

https://www.indiacode.nic.in/bitstream/123456789/2038/5/A2005-50.pdf

central

## THE STATE EMBLEM OF INDIA (PROHIBITION OF IMPROPER USE) ACT, 2005 _______ ARRANGEMENT OF SECTIONS _________ SECTIONS 1. Short title, extent, application and commencement. 2. Definitions. 3. Prohibition of improper use of emblem. 4. Prohibition of use of emblem for wrongful gain. 5. Prohibition of registration of certain companies, etc. 6. General powers of Central Government to regulate use of emblem. 7. Penalty. 8. Previous sanction for prosecution. 9. Savings. 10. Act to have overriding effect. 11. Power to make rules. THE SCHEDULE. APPENDIX I. APPENDIX II. 1 ----- ## THE STATE EMBLEM OF INDIA (PROHIBITION OF IMPROPER USE) ACT, 2005 ACT NO. 50 OF 2005 [20th December, 2005.] ## An Act to prohibit the improper use of State Emblem of India for professional and commercial purposes and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-sixth Year of the Republic of India as follows:— **1. Short title, extent, application and commencement.—(1) This Act may be called the State** Emblem of India (Prohibition of Improper Use) Act, 2005. (2) It extends to the whole of India, and also applies to citizens of India out side India. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “competent authority” means any authority competent under any law for the time being in force to register any company, firm, other body of persons or any trade mark or design or to grant a patent; (b) “emblem” means the State Emblem of India as described and specified in the Schedule to be used as an official seal of the Government. **3. Prohibition of improper use of emblem.—Notwithstanding anything contained in any other law** for the time being in force, no person shall use the emblem or any colourable imitation thereof in any manner which tends to create an impression that it relates to the Government or that it is an official document of the Central Government, or as the case may be, the State Government, without the previous permission of the Central Government or of such officer of that Government as may be authorised by it in this behalf. _Explanation.—For the purposes of this section, “person” includes a former functionary of the Central_ Government or the State Governments. **4. Prohibition of use of emblem for wrongful gain.—No person shall use the emblem for the** purpose of any trade, business, calling or profession or in the title of any patent, or in any trade mark or design, except in such cases and under such conditions as may be prescribed. **5. Prohibition of registration of certain companies, etc.—(1) Notwithstanding anything contained** in any other law for the time being in force, no competent authority shall,— (a) register a trade mark or design which bears the emblem, or (b) grant patent in respect of an invention which bears a title containing the emblem. (2) If any question arises before a competent authority whether any emblem is an emblem specified in the Schedule or a colourable imitation thereof, the competent authority shall refer the question to the Central Government and the decision of the Central Government thereon shall be final. **6. General powers of Central Government to regulate use of emblem.—(1) The Central** Government may make such provision by rules as appears to it to be necessary, to regulate the use of the emblem in official seal that is used in offices of the Central Government and the State Governments and their organisations including diplomatic missions abroad, subject to such restrictions and conditions as may be prescribed. 1. 12[th] September, 2007, vide Notification No. S.O. 1526(E) dated 12th September, 2007, see Gazette of India, Extraordinary, Part II sec.3(ii). 2 ----- (2) Subject to the provisions of this Act, the Central Government shall have powers— (a) to notify the use of emblem on stationery, the method of printing or embossing it on demi-official stationery by the constitutional authorities, Ministers, Members of Parliament, Members of Legislative Assemblies, officers of the Central Government and the State Governments; (b) to specify the design of the official seal consisting of the emblem; (c) to restrict the display of emblem on vehicles of constitutional authorities, foreign dignitaries, Ministers of the Central Government and the State Governments; (d) to provide for guidelines for display of emblem on public buildings in India, the diplomatic missions and on the buildings occupied by India's consulates abroad; (e) to specify conditions for the use of emblem for various other purposes including the use for educational purposes and the armed forces personnel; (f) to do all such things (including the specification of design of the emblem and its use in the manner whatsoever) as the Central Government considers necessary or expedient for the exercise of the foregoing powers. **7. Penalty.—(1) Any person who contravenes the provisions of section 3 shall be punishable with** imprisonment for a term which may extend to two years, or with fine which may extend to five thousand rupees, or with both, or if having been previously convicted of an offence under this section, is again convicted of any such offence, he shall be punishable for the second and for every subsequent offence with imprisonment for a term which shall not be less than six months, which may extend to two years and with fine which may extend to five thousand rupees. (2) Any person who contravenes the provisions of section 4 for any wrongful gain shall be punishable for such offence with imprisonment for a term which shall not be less than six months, which may extend to two years and with fine which may extend to five thousand rupees. **8. Previous sanction for prosecution.—No prosecution for any offence punishable under this Act** shall be instituted, except with the previous sanction of the Central Government or of any officer authorised in this behalf by general or special order of the Central Government. **9. Savings.—Nothing in this Act shall exempt any person from any suit or other proceedings which** might be brought against him under any other law for the time being in force. **10. Act to have overriding effect.—The provisions of this Act or any rule made thereunder shall** have effect notwithstanding anything inconsistent therewith contained in any other enactment or instrument having effect by virtue of such enactment. **11. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules to carry out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing powers, such rules may provide for all or any of the following matters, namely:— (a) cases and conditions regulating the use of emblem under section 4; (b) making rules to regulate the use of the emblem in official seal of the Government and specifying restrictions and conditions relating thereto under sub-section (1) of section 6; (c) the use of emblem on stationery, design of official seal consisting of emblem and other matters under sub-section (2) of section 6; (d) authorising officer by general or special order for giving previous sanction for instituting prosecution under section 8; and (e) any other matter which is required to be, or may be, prescribed. (3) Every rule made under this section shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately 3 ----- following the session or the successive sessions aforesaid, both House agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. 4 ----- THE SCHEDULE [See section 2(b)] STATE EMBLEM OF INDIA DESCRIPTION AND DESIGN The State Emblem of India is an adaptation from the Sarnath Lion Capital of Asoka which is preserved in the Sarnath Museum. The Lion Capital has four lions mounted back to back on a circularabacus. The frieze of the abacus is adorned with sculptures in high relief of an elephant, a galloping horse, a bull and a lion separated by intervening Dharma Chakras. The abacus rests on a bellshaped lotus. The profile of the Lion Capital showing three lions mounted on the abacus with a Dharma Chakrain the centre, a bull on the right and a galloping horse on the left, and outlines of Dharma Chakras on the extreme right and left has been adopted as the State Emblem of India. The bell-shaped lotus has been omitted. The motto “Satyameva Jayate”—Truth alone triumphs **— written in Devanagari script below the** profile of the Lion Capital is part of the State Emblem of India. The State Emblem of India shall conform to the designs as set out in Appendix I or Appendix II. 5 ----- # APPENDIX I ## Note.—This design is in simplified form and meant for reproduction in small sizes, such as for use in stationery, seals and die-printing. 6 ----- # APPENDIX II ## Note.—This design is more detailed and meant for reproduction in bigger sizes. 7 -----

23-Dec-2005

53

The Disaster Management Act, 2005

https://www.indiacode.nic.in/bitstream/123456789/2045/1/AAA2005___53.pdf

central

# THE DISASTER MANAGEMENT ACT, 2005 ____________ # ARRAGEMENT OF SECTIONS ____________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II THE NATIONAL DISASTER MANAGEMENT AUTHORITY 3. Establishment of National Disaster Management Authority. 4. Meetings of National Authority. 5. Appointment of officers and other employees of the National Authority. 6. Powers and functions of National Authority. 7. Constitution of advisory committee by National Authority. 8. Constitution of National Executive Committee. 9. Constitution of sub-committees. 10. Powers and functions of National Executive Committee. 11. National plan. 12. Guidelines for minimum standards of relief. 13. Relief in loan repayment, etc. CHAPTER III STATE DISASTER MANAGEMENT AUTHORITY 14. Establishment of State Disaster Management Authority. 15. Meetings of the State Authority. 16. Appointment of officers and other employees of State Authority. 17. Constitution of advisory committee by the State Authority. 18. Powers and functions of State Authority. 19. Guidelines for minimum standard of relief by State Authority. 20. Constitution of State Executive Committee. 21. Constitution of sub-committees by State Executive Committee. 22. Functions of the State Executive Committee. 23. State Plan. 24. Powers and functions of State Executive Committee in the event of threatening disaster situation. CHAPTER IV DISTRICT DISASTER MANAGEMENT AUTHORITY 25. Constitution of District Disaster Management Authority. 26. Powers of Chairperson of District Authority. 1 ----- SECTIONS 27. Meetings. 28. Constitution of advisory committees and other committees. 29. Appointment of officers and other employees of District Authority. 30. Powers and functions of District Authority. 31. District Plan. 32. Plans by different authorities at district level and their implementation. 33. Requisition by the District Authority. 34. Powers and functions of District Authority in the event of any threatening disaster situation or disaster. CHAPTER V MEASURES BY THE GOVERNMENT FOR DISASTER MANAGEMENT 35. Central Government to take measures. 36. Responsibilities of Ministries or Departments of Government of India. 37. Disaster management plans of Ministries or Departments of Government of India. 38. State Government to take measures. 39. Responsibilities of departments of the State Government. 40. Disaster management plan of departments of State. CHAPTER VI LOCAL AUTHORITIES 41. Functions of the local authority. CHAPTER VII NATIONAL INSTITUTEOF DISASTER MANAGEMENT 42. National Institute of Disaster Management. 43. Officers and other employees of the National Institute. CHAPTER VIII NATIONAL DISASTER RESPONSE FORCE 44. National Disaster Response Force. 45. Control, direction, etc. CHAPTER IX FINANCE, ACCOUNTS AND AUDIT 46. National Disaster Response Fund. 47. National Disaster Mitigation Fund. 48. Establishment of funds by State Government. 49. Allocation of funds by Ministries and Departments. 50. Emergency procurement and accounting. 2 ----- CHAPTER X OFFENCES AND PENALTIES SECTIONS 51. Punishment for obstruction, etc. 52. Punishment for false claim. 53. Punishment for misappropriation of money or materials, etc. 54. Punishment for false warning. 55. Offences by Departments of the Government. 56. Failure of officer in duty or his connivance at the contravention of the provisions of this Act. 57. Penalty for contravention of any order regarding requisitioning. 58. Offence by companies. 59. Previous sanction for prosecution. 60. Cognizance of offences. CHAPTER XI MISCELLANEOUS 61. Prohibition against discrimination. 62. Power to issue direction by Central Government. 63. Powers to be made available for rescue operations. 64. Making or amending rules, etc., in certain circumstances. 65. Power of requisition of resources, provisions, vehicles, etc., for rescue operations, etc. 66. Payment of compensation. 67. Direction to media for communication of warnings, etc. 68. Authentication of orders of decisions. 69. Delegation of powers. 70. Annual report. 71. Bar of jurisdiction of court. 72. Act to have overriding effect. 73. Action taken in good faith. 74. Immunity from legal process. 75. Power of Central Government to make rules. 76. Power to make regulations. 77. Rules and regulations to be laid before Parliament. 78. Power of State Government to make rules. 79. Power to remove difficulties. 3 ----- # THE DISASTER MANAGEMENT ACT, 2005 ACT NO. 53 OF 2005 [23rd December, 2005.] # An Act to provide for the effective management of disasters and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-sixth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Disaster Management** Act, 2005. (2) It extends to the whole of India. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette appoint; and different dates* may be appointed for different provisions of this Act and for different States, and any reference to commencement in any provision of this Act in relation to any State shall be construed as a reference to the commencement of that provision in that State. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “affected area” means an area or part of the country affected by a disaster; (b) “capacity-building” includes— (i) identification of existing resources and resources to be acquired or created; (ii) acquiring or creating resources identified under sub-clause (i); (iii) organisation and training of personnel and coordination of such training for effective management of disasters; (c) “Central Government” means the Ministry or Department of the Government of India having administrative control of disaster management; (d) “disaster” means a catastrophe, mishap, calamity or grave occurrence in any area, arising from natural or man made causes, or by accident or negligence which results in substantial loss of life or human suffering or damage to, and destruction of, property, or damage to, or degradation of, environment, and is of such a nature or magnitude as to be beyond the coping capacity of the community of the affected area; (e) “disaster management” means a continuous and integrated process of planning, organising, coordinating and implementing measures which are necessary or expedient for— (i) prevention of danger or threat of any disaster; (ii) mitigation or reduction of risk of any disaster or its severity or consequences; (iii) capacity-building; (iv) preparedness to deal with any disaster; (v) prompt response to any threatening disaster situation or disaster; (vi) assessing the severity or magnitude of effects of any disaster; 1. 28th July, 2006 (ss. 2, 3, 4, 5, 6, 8, 10, 75, 77, 79), vide notification No. S.O. 1216(E), dated 28th July, 2006; *1st August, 2007 [ss. 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 38, 39, 40, 41, 48, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, sub-sec. (2) of s. 70, 71, 72, 73, 74, 78, 79], vide notification No. S.O. 722(E), dated 7th May, 2007; *17th March, 2008 (ss. 44, 45), vide notification No. 517(E), dated 17th March, 2008; *18th October, 2011 (s. 46), _vide notification No. S.O. 2397(E), dated 18th October, 2011,_ _see Gazette of India,_ Extraordinary, Part II, sec. 3(ii). *5th February, 2021, sub-sec. (1) of s. 47, vide notification No. S.O. 564(E), dated 5th February, 2021, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 4 ----- (vii) evacuation, rescue and relief; (viii) rehabilitation and reconstruction; (f) “District Authority” means the District Disaster Management Authority constituted under sub section (1) of section 25; (g) “District Plan” means the plan for disaster management for the district prepared under section 31; (h) “local authority” includes panchayati raj institutions, municipalities, a district board, cantonment board, town planning authority or Zila Parishad or any other body or authority, by whatever name called, for the time being invested by law, for rendering essential services or, with the control and management of civic services, within a specified local area; (i) “mitigation” means measures aimed at reducing the risk, impact or effects of a disaster or threatening disaster situation; (j) “National Authority” means the National Disaster Management Authority established under sub-section (1) of section 3; (k) “National Executive Committee” means the Executive Committee of the National Authority constituted under sub-section (1) of section 8; (l) “National Plan” means the plan for disaster management for the whole of the country prepared under section 11; (m) “preparedness” means the state of readiness to deal with a threatening disaster situation or disaster and the effects thereof; (n) “prescribed” means prescribed by rules made under this Act; (o) “reconstruction” means construction or restoration of any property after a disaster; (p) “resources” includes manpower, services, materials and provisions; (q) “State Authority” means the State Disaster Management Authority established under sub section (1) of section 14 and includes the Disaster Management Authority for the Union territory constituted under that section; (r) “State Executive Committee” means the Executive Committee of a State Authority constituted under sub-section (1) of section 20; (s) “State Government” means the Department of Government of the State having administrative control of disaster management and includes Administrator of the Union territory appointed by the President under article 239 of the Constitution; (t) “State Plan” means the plan for disaster management for the whole of the State prepared under section 23. CHAPTER II THE NATIONAL DISASTER MANAGEMENT AUTHORITY **3. Establishment of National Disaster Management Authority.—(1) With effect from such date as** the Central Government may, by notification in the Official Gazette appoint in this behalf, there shall be established for the purposes of this Act, an authority to be known as the National Disaster Management Authority. (2) The National Authority shall consist of the Chairperson and such number of other members, not exceeding nine, as may be prescribed by the Central Government and, unless the rules otherwise provide, the National Authority shall consist of the following:— (a) the Prime Minister of India, who shall be the Chairperson of the National Authority, _ex officio;_ 5 ----- (b) other members, not exceeding nine, to be nominated by the Chairperson of the National Authority. (3) The Chairperson of the National Authority may designate one of the members nominated under clause (b) of sub-section (2) to be the Vice-Chairperson of the National Authority. (4) The term of office and conditions of service of members of the National Authority shall be such as may be prescribed. **4. Meetings of National Authority.—(1) The National Authority shall meet as and when necessary** and at such time and place as the Chairperson of the National Authority may think fit. (2) The Chairperson of the National Authority shall preside over the meetings of the National Authority. (3) If for any reason the Chairperson of the National Authority is unable to attend any meeting of the National Authority, the Vice-Chairperson of the National Authority shall preside over the meeting. **5. Appointment of officers and other employees of the National Authority.—The Central** Government shall provide the National Authority with such officers, consultants and employees, as it considers necessary for carrying out the functions of the National Authority. **6. Powers and functions of National Authority.—(1) Subject to the provisions of this Act, the** National Authority shall have the responsibility for laying down the policies, plans and guidelines for disaster management for ensuring timely and effective response to disaster. (2) Without prejudice to generality of the provisions contained in sub-section (1), the National Authority may — (a) lay down policies on disaster management; (b) approve the National Plan; (c) approve plans prepared by the Ministries or Departments of the Government of India in accordance with the National Plan; (d) lay down guidelines to be followed by the State Authorities in drawing up the State Plan; (e) lay down guidelines to be followed by the different Ministries or Departments of the Government of India for the purpose of integrating the measures for prevention of disaster or the mitigation of its effects in their development plans and projects; (f) coordinate the enforcement and implementation of the policy and plan for disaster management; (g) recommend provision of funds for the purpose of mitigation; (h) provide such support to other countries affected by major disasters as may be determined by the Central Government; (i) take such other measures for the prevention of disaster, or the mitigation, or preparedness and capacity building for dealing with the threatening disaster situation or disaster as it may consider necessary; (j) lay down broad policies and guidelines for the functioning of the National Institute of Disaster Management. (3) The Chairperson of the National Authority shall, in the case of emergency, have power to exercise all or any of the powers of the National Authority but exercise of such powers shall be subject to ex post _facto ratification by the National Authority._ **7. Constitution of advisory committee by National Authority.—(1) The National Authority may** constitute an advisory committee consisting of experts in the field of disaster management and having practical experience of disaster management at the national, State or district level to make recommendations on different aspects of disaster management. 6 ----- (2) The members of the advisory committee shall be paid such allowances as may be prescribed by the Central Government in consultation with the National Authority. **8. Constitution of National Executive Committee.—(1) The Central Government shall,** immediately after issue of notification under sub-section (1) of section 3, constitute a National Executive Committee to assist the National Authority in the performance of its functions under this Act. (2) The National Executive Committee shall consist of the following members, namely:— (a) the Secretary to the Government of India in charge of the Ministry or Department of the Central Government having administrative control of the disaster management, who shall be Chairperson, ex officio; (b) the Secretaries to the Government of India in the Ministries or Departments having administrative control of the agriculture, atomic energy, defence, drinking water supply, environment and forests, finance (expenditure), health, power, rural development, science and technology, space, telecommunication, urban development, water resources and the Chief of the Integrated Defence Staff of the Chiefs of Staff Committee, ex officio. (3) The Chairperson of the National Executive Committee may invite any other officer of the Central Government or a State Government for taking part in any meeting of the National Executive Committee and shall exercise such powers and perform such functions as may be prescribed by the Central Government in consultation with the National Authority. (4) The procedure to be followed by the National Executive Committee in exercise of its powers and discharge of its functions shall be such as may be prescribed by the Central Government. **9. Constitution of sub-committees.—(1) The National Executive Committee may, as and when it** considers necessary, constitute one or more sub-committees, for the efficient discharge of its functions. (2) The National Executive Committee shall, from amongst its members, appoint the Chairperson of the sub-committee referred to in sub-section (1). (3) Any person associated as an expert with any sub-committee may be paid such allowances as may be prescribed by the Central Government. **10. Powers and functions of National Executive Committee.—(1) The National Executive** Committee shall assist the National Authority in the discharge of its functions and have the responsibility for implementing the policies and plans of the National Authority and ensure the compliance of directions issued by the Central Government for the purpose of disaster management in the country. (2) Without prejudice to the generality of the provisions contained in sub-section (1), the National Executive Committee may— (a) act as the coordinating and monitoring body for disaster management; (b) prepare the National Plan to be approved by the National Authority; (c) coordinate and monitor the implementation of the National Policy; (d) lay down guidelines for preparing disaster management plans by different Ministries or Departments of the Government of India and the State Authorities; (e) provide necessary technical assistance to the State Governments and the State Authorities for preparing their disaster management plans in accordance with the guidelines laid down by the National Authority; (f) monitor the implementation of the National Plan and the plans prepared by the Ministries or Departments of the Government of India; (g) monitor the implementation of the guidelines laid down by the National Authority for integrating of measures for prevention of disasters and mitigation by the Ministries or Departments in their development plans and projects; 7 ----- (h) monitor, coordinate and give directions regarding the mitigation and preparedness measures to be taken by different Ministries or Departments and agencies of the Government; (i) evaluate the preparedness at all governmental levels for the purpose of responding to any threatening disaster situation or disaster and give directions, where necessary, for enhancing such preparedness; (j) plan and coordinate specialised training programme for disaster management for different levels of officers, employees and voluntary rescue workers; (k) coordinate response in the event of any threatening disaster situation or disaster; (l) lay down guidelines for, or give directions to, the concerned Ministries or Departments of the Government of India, the State Governments and the State Authorities regarding measures to be taken by them in response to any threatening disaster situation or disaster; (m) require any department or agency of the Government to make available to the National Authority or State Authorities such men or material resources as are available with it for the purposes of emergency response, rescue and relief; (n) advise, assist and coordinate the activities of the Ministries or Departments of the Government of India, State Authorities, statutory bodies, other governmental or non-governmental organisations and others engaged in disaster management; (o) provide necessary technical assistance or give advice to the State Authorities and District Authorities for carrying out their functions under this Act; (p) promote general education and awareness in relation to disaster management; and (q) perform such other functions as the National Authority may require it to perform. **11. National Plan.—(1) There shall be drawn up a plan for disaster management for the whole of the** country to be called the National Plan. (2) The National Plan shall be prepared by the National Executive Committee having regard to the National Policy and in consultation with the State Governments and expert bodies or organisations in the field of disaster management to be approved by the National Authority. (3) The National Plan shall include— (a) measures to be taken for the prevention of disasters, or the mitigation of their effects; (b) measures to be taken for the integration of mitigation measures in the development plans; (c) measures to be taken for preparedness and capacity building to effectively respond to any threatening disaster situations or disaster; (d) roles and responsibilities of different Ministries or Departments of the Government of India in respect of measures specified in clauses (a), (b) and (c). (4) The National Plan shall be reviewed and updated annually. (5) Appropriate provisions shall be made by the Central Government for financing the measures to be carried out under the National Plan. (6) Copies of the National Plan referred to in sub-sections (2) and (4) shall be made available to the Ministries or Departments of the Government of India and such Ministries or Departments shall draw up their own plans in accordance with the National Plan. **12. Guidelines for minimum standards of relief.—The National Authority shall recommend** guidelines for the minimum standards of relief to be provided to persons affected by disaster, which shall include,— (i) the minimum requirements to be provided in the relief camps in relation to shelter, food, drinking water, medical cover and sanitation; (ii) the special provisions to be made for widows and orphans; 8 ----- (iii) _ex gratia assistance on account of loss of life as also assistance on account of damage to_ houses and for restoration of means of livelihood; (iv) such other relief as may be necessary. **13. Relief in loan repayment, etc.—The National Authority may, in cases of disasters of severe** magnitude, recommend relief in repayment of loans or for grant of fresh loans to the persons affected by disaster on such concessional terms as may be appropriate. CHAPTER III STATE DISASTER MANAGEMENT AUTHORITIES **14. Establishment of State Disaster Management Authority.—(1) Every State Government shall,** as soon as may be after the issue of the notification under sub-section (1) of section 3, by notification in the Official Gazette, establish a State Disaster Management Authority for the State with such name as may be specified in the notification of the State Government. (2) A State Authority shall consist of the Chairperson and such number of other members, not exceeding nine, as may be prescribed by the State Government and, unless the rules otherwise provide, the State Authority shall consist of the following members, namely:— (a) the Chief Minister of the State, who shall be Chairperson, ex officio; (b) other members, not exceeding eight, to be nominated by the Chairperson of the State Authority; (c) the Chairperson of the State Executive Committee, ex officio. (3) The Chairperson of the State Authority may designate one of the members nominated under clause (b) of sub-section (2) to be the Vice-Chairperson of the State Authority. (4) The Chairperson of the State Executive Committee shall be the Chief Executive Officer of the State Authority, ex officio: Provided that in the case of a Union territory having Legislative Assembly, except the Union territory of Delhi, the Chief Minister shall be the Chairperson of the Authority established under this section and in case of other Union territories, the Lieutenant Governor or the Administrator shall be the Chairperson of that Authority: Provided further that the Lieutenant Governor of the Union territory of Delhi shall be the Chairperson and the Chief Minister thereof shall be the Vice-Chairperson of the State Authority. (5) The term of office and conditions of service of members of the State Authority shall be such as may be prescribed. **15. Meetings of the State Authority.—(1) The State Authority shall meet as and when necessary** and at such time and place as the Chairperson of the State Authority may think fit. (2) The Chairperson of the State Authority shall preside over the meetings of the State Authority. (3) If for any reason, the Chairperson of the State Authority is unable to attend the meeting of the State Authority, the Vice-Chairperson of the State Authority shall preside at the meeting. **16. Appointment of officers and other employees of State Authority.—The State Government** shall provide the State Authority with such officers, consultants and employees, as it considers necessary, for carrying out the functions of the State Authority. **17. Constitution of advisory committee by the State Authority.—(1) A State Authority may, as** and when it considers necessary, constitute an advisory committee, consisting of experts in the field of disaster management and having practical experience of disaster management to make recommendations on different aspects of disaster management. (2) The members of the advisory committee shall be paid such allowances as may be prescribed by the State Government. 9 ----- **18. Powers and functions of State Authority.—(1) Subject to the provisions of this Act, a State** Authority shall have the responsibility for laying down policies and plans for disaster management in the State. (2) Without prejudice to the generality of provisions contained in sub-section (1), the State Authority may— (a) lay down the State disaster management policy; (b) approve the State Plan in accordance with the guidelines laid down by the National Authority; (c) approve the disaster management plans prepared by the departments of the Government of the State; (d) lay down guidelines to be followed by the departments of the Government of the State for the purposes of integration of measures for prevention of disasters and mitigation in their development plans and projects and provide necessary technical assistance therefor; (e) coordinate the implementation of the State Plan; (f) recommend provision of funds for mitigation and preparedness measures; (g) review the development plans of the different departments of the State and ensure that prevention and mitigation measures are integrated therein; (h) review the measures being taken for mitigation, capacity building and preparedness by the departments of the Government of the State and issue such guidelines as may be necessary. (3) The Chairperson of the State Authority shall, in the case of emergency, have power to exercise all or any of the powers of the State Authority but the exercise of such powers shall be subject to _ex post facto ratification of the State Authority._ **19. Guidelines for minimum standard of relief by State Authority.—The State Authority shall lay** down detailed guidelines for providing standards of relief to persons affected by disaster in the State: Provided that such standards shall in no case be less than the minimum standards in the guidelines laid down by the National Authority in this regard. **20. Constitution of State Executive Committee.—(1) The State Government shall, immediately** after issue of notification under sub-section (1) of section 14, constitute a State Executive Committee to assist the State Authority in the performance of its functions and to coordinate action in accordance with the guidelines laid down by the State Authority and ensure the compliance of directions issued by the State Government under this Act. (2) The State Executive Committee shall consist of the following members, namely:— (a) the Chief Secretary to the State Government, who shall be Chairperson, ex officio; (b) four Secretaries to the Government of the State of such departments as the State Government may think fit, ex officio. (3) The Chairperson of the State Executive Committee shall exercise such powers and perform such functions as may be prescribed by the State Government and such other powers and functions as may be delegated to him by the State Authority. (4) The procedure to be followed by the State Executive Committee in exercise of its powers and discharge of its functions shall be such as may be prescribed by the State Government. **21. Constitution of sub-committees by State Executive Committee.—(1) The State Executive** Committee may, as and when it considers necessary, constitute one or more sub-committees, for efficient discharge of its functions. (2) The State Executive Committee shall, from amongst its members, appoint the Chairperson of the sub-committee referred to in sub-section (1). 10 ----- (3) Any person associated as an expert with any sub-committee may be paid such allowances as may be prescribed by the State Government. **22. Functions of the State Executive Committee.—(1) The State Executive Committee shall have** the responsibility for implementing the National Plan and State Plan and act as the coordinating and monitoring body for management of disaster in the State. (2) Without prejudice to the generality of the provisions of sub-section (1), the State Executive Committee may— (a) coordinate and monitor the implementation of the National Policy, the National Plan and the State Plan; (b) examine the vulnerability of different parts of the State to different forms of disasters and specify measures to be taken for their prevention or mitigation; (c) lay down guidelines for preparation of disaster management plans by the departments of the Government of the State and the District Authorities; (d) monitor the implementation of disaster management plans prepared by the departments of the Government of the State and District Authorities; (e) monitor the implementation of the guidelines laid down by the State Authority for integrating of measures for prevention of disasters and mitigation by the departments in their development plans and projects; (f) evaluate preparedness at all governmental or non-governmental levels to respond to any threatening disaster situation or disaster and give directions, where necessary, for enhancing such preparedness; (g) coordinate response in the event of any threatening disaster situation or disaster; (h) give directions to any Department of the Government of the State or any other authority or body in the State regarding actions to be taken in response to any threatening disaster situation or disaster; (i) promote general education, awareness and community training in regard to the forms of disasters to which different parts of the State are vulnerable and the measures that may be taken by such community to prevent the disaster, mitigate and respond to such disaster; (j) advise, assist and coordinate the activities of the Departments of the Government of the State, District Authorities, statutory bodies and other governmental and non-governmental organisations engaged in disaster management; (k) provide necessary technical assistance or give advice to District Authorities and local authorities for carrying out their functions effectively; (l) advise the State Government regarding all financial matters in relation to disaster management; (m) examine the construction, in any local area in the State and, if it is of the opinion that the standards laid for such construction for the prevention of disaster is not being or has not been followed, may direct the District Authority or the local authority, as the case may be, to take such action as may be necessary to secure compliance of such standards; (n) provide information to the National Authority relating to different aspects of disaster management; (o) lay down, review and update State level response plans and guidelines and ensure that the district level plans are prepared, reviewed and updated; (p) ensure that communication systems are in order and the disaster management drills are carried out periodically; (q) perform such other functions as may be assigned to it by the State Authority or as it may consider necessary. 11 ----- **23. State Plan.—(1) There shall be a plan for disaster management for every State to be called the** State Disaster Management Plan. (2) The State Plan shall be prepared by the State Executive Committee having regard to the guidelines laid down by the National Authority and after such consultation with local authorities, district authorities and the people's representatives as the State Executive Committee may deem fit. (3) The State Plan prepared by the State Executive Committee under sub-section (2) shall be approved by the State Authority. (4) The State Plan shall include,— (a) the vulnerability of different parts of the State to different forms of disasters; (b) the measures to be adopted for prevention and mitigation of disasters; (c) the manner in which the mitigation measures shall be integrated with the development plans and projects; (d) the capacity-building and preparedness measures to be taken; (e) the roles and responsibilities of each Department of the Government of the State in relation to the measures specified in clauses (b), (c) and (d) above; (f) the roles and responsibilities of different Departments of the Government of the State in responding to any threatening disaster situation or disaster. (5) The State Plan shall be reviewed and updated annually. (6) Appropriate provisions shall be made by the State Government for financing for the measures to be carried out under the State Plan. (7) Copies of the State Plan referred to in sub-sections (2) and (5) shall be made available to the Departments of the Government of the State and such Departments shall draw up their own plans in accordance with the State Plan. **24. Powers and functions of State Executive Committee in the event of threatening disaster** **situation.—For the purpose of, assisting and protecting the community affected by disaster or providing** relief to such community or, preventing or combating disruption or dealing with the effects of any threatening disaster situation, the State Executive Committee may— (a) control and restrict, vehicular traffic to, from or within, the vulnerable or affected area; (b) control and restrict the entry of any person into, his movement within and departure from, a vulnerable or affected area; (c) remove debris, conduct search and carry out rescue operations; (d) provide shelter, food, drinking water, essential provisions, healthcare and services in accordance with the standards laid down by the National Authority and State Authority; (e) give direction to the concerned Department of the Government of the State, any District Authority or other authority, within the local limits of the State to take such measure or steps for rescue, evacuation or providing immediate relief saving lives or property, as may be necessary in its opinion; (f) require any department of the Government of the State or any other body or authority or person in charge of any relevant resources to make available the resources for the purposes of emergency response, rescue and relief; (g) require experts and consultants in the field of disasters to provide advice and assistance for rescue and relief; (h) procure exclusive or preferential use of amenities from any authority or person as and when required; 12 ----- (i) construct temporary bridges or other necessary structures and demolish unsafe structures which may be hazardous to public; (j) ensure that non-governmental organisations carry out their activities in an equitable and non discriminatory manner; (k) disseminate information to public to deal with any threatening disaster situation or disaster; (l) take such steps as the Central Government or the State Government may direct in this regard or take such other steps as are required or warranted by the form of any threatening disaster situation or disaster. CHAPTER IV DISTRICT DISASTER MANAGEMENT AUTHORITY **25. Constitution of District Disaster Management Authority.—(1) Every State Government shall,** as soon as may be after issue of notification under sub-section (1) of section 14, by notification in the Official Gazette, establish a District Disaster Management Authority for every district in the State with such name as may be specified in that notification. (2) The District Authority shall consist of the Chairperson and such number of other members, not exceeding seven, as may be prescribed by the State Government, and unless the rules otherwise provide, it shall consist of the following, namely:— (a) the Collector or District Magistrate or Deputy Commissioner, as the case may be, of the district who shall be Chairperson, ex officio; (b) the elected representative of the local authority who shall be the co-Chairperson, ex officio: Provided that in the Tribal Areas, as referred to in the Sixth Schedule to the Constitution, the Chief Executive Member of the district council of autonomous district, shall be the co-Chairperson, _ex officio;_ (c) the Chief Executive Officer of the District Authority, ex officio; (d) the Superintendent of Police, ex officio; (e) the Chief Medical Officer of the district, ex officio; (f) not exceeding two other district level officers, to be appointed by the State Government. (3) In any district where zila parishad exists, the Chairperson thereof shall be the co-Chairperson of the District Authority. (4) The State Government shall appoint an officer not below the rank of Additional Collector or Additional District Magistrate or Additional Deputy Commissioner, as the case may be, of the district to be the Chief Executive Officer of the District Authority to exercise such powers and perform such functions as may be prescribed by the State Government and such other powers and functions as may be delegated to him by the District Authority. **26. Powers of Chairperson of District Authority.—(1) The Chairperson of the District Authority** shall, in addition to presiding over the meetings of the District Authority, exercise and discharge such powers and functions of the District Authority as the District Authority may delegate to him. (2) The Chairperson of the District Authority shall, in the case of an emergency, have power to exercise all or any of the powers of the District Authority but the exercise of such powers shall be subject to ex post facto ratification of the District Authority. (3) The District Authority or the Chairperson of the District Authority may, by general or special order, in writing, delegate such of its or his powers and functions, under sub-section (1) or (2), as the case may be, to the Chief Executive Officer of the District Authority, subject to such conditions and limitations, if any, as it or he deems fit. **27. Meetings.—The District Authority shall meet as and when necessary and at such time and place** as the Chairperson may think fit. 13 ----- **28. Constitution of advisory committees and other committees.—(1) The District Authority may,** as and when it considers necessary, constitute one or more advisory committees and other committees for the efficient discharge of its functions. (2) The District Authority shall, from amongst its members, appoint the Chairperson of the Committee referred to in sub-section (1). (3) Any person associated as an expert with any committee or sub-committee constituted under sub-section (1) may be paid such allowances as may be prescribed by the State Government. **29. Appointment of officers and other employees of District Authority.—The State Government** shall provide the District Authority with such officers, consultants and other employees as it considers necessary for carrying out the functions of District Authority. **30. Powers and functions of District Authority.—(1) The District Authority shall act as the district** planning, coordinating and implementing body for disaster management and take all measures for the purposes of disaster management in the district in accordance with the guidelines laid down by the National Authority and the State Authority. (2) Without prejudice to the generality of the provisions of sub-section (1), the District Authority may— (i) prepare a disaster management plan including district response plan for the district; (ii) coordinate and monitor the implementation of the National Policy, State Policy, National Plan, State Plan and District Plan; (iii) ensure that the areas in the district vulnerable to disasters are identified and measures for the prevention of disasters and the mitigation of its effects are undertaken by the departments of the Government at the district level as well as by the local authorities; (iv) ensure that the guidelines for prevention of disasters, mitigation of its effects, preparedness and response measures as laid down by the National Authority and the State Authority are followed by all departments of the Government at the district level and the local authorities in the district; (v) give directions to different authorities at the district level and local authorities to take such other measures for the prevention or mitigation of disasters as may be necessary; (vi) lay down guidelines for prevention of disaster management plans by the department of the Government at the districts level and local authorities in the district; (vii) monitor the implementation of disaster management plans prepared by the Departments of the Government at the district level; (viii) lay down guidelines to be followed by the Departments of the Government at the district level for purposes of integration of measures for prevention of disasters and mitigation in their development plans and projects and provide necessary technical assistance therefor; (ix) monitor the implementation of measures referred to in clause (viii); (x) review the state of capabilities for responding to any disaster or threatening disaster situation in the district and give directions to the relevant departments or authorities at the district level for their up gradation as may be necessary; (xi) review the preparedness measures and give directions to the concerned departments at the district level or other concerned authorities where necessary for bringing the preparedness measures to the levels required for responding effectively to any disaster or threatening disaster situation; (xii) organise and coordinate specialised training programmes for different levels of officers, employees and voluntary rescue workers in the district; (xiii) facilitate community training and awareness programmes for prevention of disaster or mitigation with the support of local authorities, governmental and non-governmental organisations; 14 ----- (xiv) set up, maintain, review and upgrade the mechanism for early warnings and dissemination of proper information to public; (xv) prepare, review and update district level response plan and guidelines; (xvi) coordinate response to any threatening disaster situation or disaster; (xvii) ensure that the Departments of the Government at the district level and the local authorities prepare their response plans in accordance with the district response plan; (xviii) lay down guidelines for, or give direction to, the concerned Department of the Government at the district level or any other authorities within the local limits of the district to take measures to respond effectively to any threatening disaster situation or disaster; (xix) advise, assist and coordinate the activities of the Departments of the Government at the district level, statutory bodies and other governmental and non-governmental organisations in the district engaged in the disaster management; (xx) coordinate with, and give guidelines to, local authorities in the district to ensure that measures for the prevention or mitigation of threatening disaster situation or disaster in the district are carried out promptly and effectively; (xxi) provide necessary technical assistance or give advise to the local authorities in the district for carrying out their functions; (xxii) review development plans prepared by the Departments of the Government at the district level, statutory authorities or local authorities with a view to make necessary provisions therein for prevention of disaster or mitigation; (xxiii) examine the construction in any area in the district and, if it is of the opinion that the standards for the prevention of disaster or mitigation laid down for such construction is not being or has not been followed, may direct the concerned authority to take such action as may be necessary to secure compliance of such standards; (xxiv) identify buildings and places which could, in the event of any threatening disaster situation or disaster, be used as relief centers or camps and make arrangements for water supply and sanitation in such buildings or places; (xxv) establish stockpiles of relief and rescue materials or ensure preparedness to make such materials available at a short notice; (xxvi) provide information to the State Authority relating to different aspects of disaster management; (xxvii) encourage the involvement of non-governmental organisations and voluntary social welfare institutions working at the grassroots level in the district for disaster management; (xxviii) ensure communication systems are in order, and disaster management drills are carried out periodically; (xxix) perform such other functions as the State Government or State Authority may assign to it or as it deems necessary for disaster management in the District. **31. District Plan.—(1) There shall be a plan for disaster management for every district of the State.** (2) The District Plan shall be prepared by the District Authority, after consultation with the local authorities and having regard to the National Plan and the State Plan, to be approved by the State Authority. (3) The District Plan shall include— (a) the areas in the district vulnerable to different forms of disasters; (b) the measures to be taken, for prevention and mitigation of disaster, by the Departments of the Government at the district level and local authorities in the district; 15 ----- (c) the capacity-building and preparedness measures required to be taken by the Departments of the Government at the district level and the local authorities in the district to respond to any threatening disaster situation or disaster; (d) the response plans and procedures, in the event of a disaster, providing for— (i) allocation of responsibilities to the Departments of the Government at the district level and the local authorities in the district; (ii) prompt response to disaster and relief thereof; (iii) procurement of essential resources; (iv) establishment of communication links; and (v) the dissemination of information to the public; (e) such other matters as may be required by the State Authority. (4) The District Plan shall be reviewed and updated annually. (5) The copies of the District Plan referred to in sub-sections (2) and (4) shall be made available to the Departments of the Government in the district. (6) The District Authority shall send a copy of the District Plan to the State Authority which shall forward it to the State Government. (7) The District Authority shall, review from time to time, the implementation of the Plan and issue such instructions to different departments of the Government in the district as it may deem necessary for the implementation thereof. **32. Plans by different authorities at district level and their implementation.—Every office of the** Government of India and of the State Government at the district level and the local authorities shall, subject to the supervision of the District Authority,— (a) prepare a disaster management plan setting out the following, namely:— (i) provisions for prevention and mitigation measures as provided for in the District Plan and as is assigned to the department or agency concerned; (ii) provisions for taking measures relating to capacity-building and preparedness as laid down in the District Plan; (iii) the response plans and procedures, in the event of, any threatening disaster situation or disaster; (b) coordinate the preparation and the implementation of its plan with those of the other organisations at the district level including local authority, communities and other stakeholders; (c) regularly review and update the plan; and (d) submit a copy of its disaster management plan, and of any amendment thereto, to the District Authority. **33. Requisition by the District Authority.—The District Authority may by order require any officer** or any Department at the district level or any local authority to take such measures for the prevention or mitigation of disaster, or to effectively respond to it, as may be necessary, and such officer or department shall be bound to carry out such order. **34. Powers and functions of District Authority in the event of any threatening disaster situation** **or disaster.—For the purpose of assisting, protecting or providing relief to the community, in response to** any threatening disaster situation or disaster, the District Authority may— (a) give directions for the release and use of resources available with any Department of the Government and the local authority in the district; (b) control and restrict vehicular traffic to, from and within, the vulnerable or affected area; 16 ----- (c) control and restrict the entry of any person into, his movement within and departure from, a vulnerable or affected area; (d) remove debris, conduct search and carry out rescue operations; (e) provide shelter, food, drinking water and essential provisions, healthcare and services; (f) establish emergency communication systems in the affected area; (g) make arrangements for the disposal of the unclaimed dead bodies; (h) recommend to any Department of the Government of the State or any authority or body under that Government at the district level to take such measures as are necessary in its opinion; (i) require experts and consultants in the relevant fields to advise and assist as it may deem necessary; (j) procure exclusive or preferential use of amenities from any authority or person; (k) construct temporary bridges or other necessary structures and demolish structures which may be hazardous to public or aggravate the effects of the disaster; (l) ensure that the non-governmental organisations carry out their activities in an equitable and non-discriminatory manner; (m) take such other steps as may be required or warranted to be taken in such a situation. CHAPTER V MEASURES BY THE GOVERNMENT FOR DISASTER MANAGEMENT **35. Central Government to take measures.—(1) Subject to the provisions of this Act, the Central** Government shall take all such measures as it deems necessary or expedient for the purpose of disaster management. (2) In particular and without prejudice to the generality of the provisions of sub-section (1), the measures which the Central Government may take under that sub-section include measures with respect to all or any of the following matters, namely:— (a) coordination of actions of the Ministries or Departments of the Government of India, State Governments, National Authority, State Authorities, governmental and non-governmental organisations in relation to disaster management; (b) ensure the integration of measures for prevention of disasters and mitigation by Ministries or Departments of the Government of India into their development plans and projects; (c) ensure appropriate allocation of funds for prevention of disaster, mitigation, capacity-building and preparedness by the Ministries or Departments of the Government of India; (d) ensure that the Ministries or Departments of the Government of India take necessary measures for preparedness to promptly and effectively respond to any threatening disaster situation or disaster; (e) cooperation and assistance to State Governments, as requested by them or otherwise deemed appropriate by it; (f) deployment of naval, military and air forces, other armed forces of the Union or any other civilian personnel as may be required for the purposes of this Act; (g) coordination with the United Nations agencies, international organisations and governments of foreign countries for the purposes of this Act; (h) establish institutions for research, training, and developmental programmes in the field of disaster management; (i) such other matters as it deems necessary or expedient for the purpose of securing effective implementation of the provisions of this Act. 17 ----- (3) The Central Government may extend such support to other countries affected by major disaster as it may deem appropriate. **36. Responsibilities of Ministries or Departments of Government of India.—It shall be the** responsibility of every Ministry or Department of the Government of India to— (a) take measures necessary for prevention of disasters, mitigation, preparedness and capacity building in accordance with the guidelines laid down by the National Authority; (b) integrate into its development plans and projects, the measures for prevention or mitigation of disasters in accordance with the guidelines laid down by the National Authority; (c) respond effectively and promptly to any threatening disaster situation or disaster in accordance with the guidelines of the National Authority or the directions of the National Executive Committee in this behalf; (d) review the enactments administered by it, its policies, rules and regulations, with a view to incorporate therein the provisions necessary for prevention of disasters, mitigation or preparedness; (e) allocate funds for measures for prevention of disaster, mitigation, capacity-building and preparedness; (f) provide assistance to the National Authority and State Governments for— (i) drawing up mitigation, preparedness and response plans, capacity-building, data collection and identification and training of personnel in relation to disaster management; (ii) carrying out rescue and relief operations in the affected area; (iii) assessing the damage from any disaster; (iv) carrying out rehabilitation and reconstruction; (g) make available its resources to the National Executive Committee or a State Executive Committee for the purposes of responding promptly and effectively to any threatening disaster situation or disaster, including measures for— (i) providing emergency communication in a vulnerable or affected area; (ii) transporting personnel and relief goods to and from the affected area; (iii) providing evacuation, rescue, temporary shelter or other immediate relief; (iv) setting up temporary bridges, jetties and landing places; (v) providing, drinking water, essential provisions, healthcare, and services in an affected area; (h) take such other actions as it may consider necessary for disaster management. **37. Disaster management plans of Ministries or Departments of Government of India.—(1)** Every Ministry or Department of the Government of India shall— (a) prepare a disaster management plan specifying the following particulars, namely:— (i) the measures to be taken by it for prevention and mitigation of disasters in accordance with the National Plan; (ii) the specifications regarding integration of mitigation measures in its development plans in accordance with the guidelines of the National Authority and the National Executive Committee; (iii) its roles and responsibilities in relation to preparedness and capacity-building to deal with any threatening disaster situation or disaster; (iv) its roles and responsibilities in regard to promptly and effectively responding to any threatening disaster situation or disaster; 18 ----- (v) the present status of its preparedness to perform the roles and responsibilities specified in sub-clauses (iii) and (iv); (vi) the measures required to be taken in order to enable it to perform its responsibilities specified in sub-clauses (iii) and (iv); (b) review and update annually the plan referred to in clause (a); (c) forward a copy of the plan referred to in clause (a) or clause (b), as the case may be, to the Central Government which Government shall forward a copy thereof to the National Authority for its approval. (2) Every Ministry or Department of the Government of India shall— (a) make, while preparing disaster management plan under clause (a) of sub-section (1), provisions for financing the activities specified therein; (b) furnish a status report regarding the implementation of the plan referred to in clause (a) of sub-section (1) to the National Authority, as and when required by it. **38. State Government to take measures.—(1) Subject to the provisions of this Act, each State** Government shall take all measures specified in the guidelines laid down by the National Authority and such further measures as it deems necessary or expedient, for the purpose of disaster management. (2) The measures which the State Government may take under sub-section (1) include measures with respect to all or any of the following matters, namely:— (a) coordination of actions of different departments of the Government of the State, the State Authority, District Authorities, local authority and other non-governmental organisations; (b) cooperation and assistance in the disaster management to the National Authority and National Executive Committee, the State Authority and the State Executive Committee, and the District Authorities; (c) cooperation with, and assistance to, the Ministries or Departments of the Government of India in disaster management, as requested by them or otherwise deemed appropriate by it; (d) allocation of funds for measures for prevention of disaster, mitigation, capacity-building and preparedness by the departments of the Government of the State in accordance with the provisions of the State Plan and the District Plans; (e) ensure that the integration of measures for prevention of disaster or mitigation by the departments of the Government of the State in their development plans and projects; (f) integrate in the State development plan, measures to reduce or mitigate the vulnerability of different parts of the State to different disasters; (g) ensure the preparation of disaster management plans by different departments of the State in accordance with the guidelines laid down by the National Authority and the State Authority; (h) establishment of adequate warning systems up to the level of vulnerable communities; (i) ensure that different departments of the Government of the State and the District Authorities take appropriate preparedness measures; (j) ensure that in a threatening disaster situation or disaster, the resources of different departments of the Government of the State are made available to the National Executive Committee or the State Executive Committee or the District Authorities, as the case may be, for the purposes of effective response, rescue and relief in any threatening disaster situation or disaster; (k) provide rehabilitation and reconstruction assistance to the victims of any disaster; and (l) such other matters as it deems necessary or expedient for the purpose of securing effective implementation of provisions of this Act. 19 ----- **39. Responsibilities of departments of the State Government.—It shall be the responsibility of** every department of the Government of a State to— (a) take measures necessary for prevention of disasters, mitigation, preparedness and capacity building in accordance with the guidelines laid down by the National Authority and the State Authority; (b) integrate into its development plans and projects, the measures for prevention of disaster and mitigation; (c) allocate funds for prevention of disaster, mitigation, capacity-building and preparedness; (d) respond effectively and promptly to any threatening disaster situation or disaster in accordance with the State Plan, and in accordance with the guidelines or directions of the National Executive Committee and the State Executive Committee; (e) review the enactments administered by it, its policies, rules and regulations with a view to incorporate therein the provisions necessary for prevention of disasters, mitigation or preparedness; (f) provide assistance, as required, by the National Executive Committee, the State Executive Committee and District Authorities, for— (i) drawing up mitigation, preparedness and response plans, capacity-building, data collection and identification and training of personnel in relation to disaster management; (ii) assessing the damage from any disaster; (iii) carrying out rehabilitation and reconstruction; (g) make provision for resources in consultation with the State Authority for the implementation of the District Plan by its authorities at the district level; (h) make available its resources to the National Executive Committee or the State Executive Committee or the District Authorities for the purposes of responding promptly and effectively to any disaster in the State, including measures for— (i) providing emergency communication with a vulnerable or affected area; (ii) transporting personnel and relief goods to and from the affected area; (iii) providing evacuation, rescue, temporary shelter or other immediate relief; (iv) carrying out evacuation of persons or live-stock from an area of any threatening disaster situation or disaster; (v) setting up temporary bridges, jetties and landing places; (vi)providing drinking water, essential provisions, healthcare and services in an affected area; (i) such other actions as may be necessary for disaster management. **40. Disaster management plan of departments of State.—(1) Every department of the State** Government, in conformity with the guidelines laid down by the State Authority, shall— (a) prepare a disaster management plan which shall lay down the following :— (i) the types of disasters to which different parts of the State are vulnerable; (ii) integration of strategies for the prevention of disaster or the mitigation of its effects or both with the development plans and programmes by the department; (iii) the roles and responsibilities of the department of the State in the event of any threatening disaster situation or disaster and emergency support function it is required to perform; (iv) present status of its preparedness to perform such roles or responsibilities or emergency support function under sub-clause (iii); 20 ----- (v) the capacity-building and preparedness measures proposed to be put into effect in order to enable the Ministries or Departments of the Government of India to discharge their responsibilities under section 37; (b) annually review and update the plan referred to in clause (a); and (c) furnish a copy of the plan referred to in clause (a) or clause (b), as the case may be, to the State Authority. (2) Every department of the State Government, while preparing the plan under sub-section (1), shall make provisions for financing the activities specified therein. (3) Every department of the State Government shall furnish an implementation status report to the State Executive Committee regarding the implementation of the disaster management plan referred to in sub-section (1). CHAPTER VI LOCAL AUTHORITIES **41. Functions of the local authority.—(1) Subject to the directions of the District Authority, a local** authority shall— (a) ensure that its officers and employees are trained for disaster management; (b) ensure that resources relating to disaster management are so maintained as to be readily available for use in the event of any threatening disaster situation or disaster; (c) ensure all construction projects under it or within its jurisdiction conform to the standards and specifications laid down for prevention of disasters and mitigation by the National Authority, State Authority and the District Authority; (d) carry out relief, rehabilitation and reconstruction activities in the affected area in accordance with the State Plan and the District Plan. (2) The local authority may take such other measures as may be necessary for the disaster management. CHAPTER VII NATIONAL INSTITUTEOF DISASTER MANAGEMENT **42. National Institute of Disaster Management.—(1) With effect from such date as the Central** Government may, by notification in the Official Gazette appoint in this behalf, there shall be constituted an institute to be called the National Institute of Disaster Management. (2) The National Institute of Disaster Management shall consist of such number of members as may be prescribed by the Central Government. (3) The term of office of, and vacancies among, members of the National Institute of Disaster Management and manner of filling such vacancies shall be such as may be prescribed. (4) There shall be a governing body of the National Institute of Disaster Management which shall be constituted by the Central Government from amongst the members of the National Institute of Disaster Management in such manner as may be prescribed. (5) The governing body of the National Institute of Disaster Management shall exercise such powers and discharge such functions as may be prescribed by regulations. (6) The procedure to be followed in exercise of its powers and discharge of its functions by the governing body, and the term of office of, and the manner of filling vacancies among the members of the governing body, shall be such as may be prescribed by regulations. (7) Until the regulations are made under this section, the Central Government may make such regulations; and any regulation so made may be altered or rescinded by the National Institute of Disaster Management in exercise of its powers. 21 ----- (8) Subject to the provisions of this Act, the National Institute of Disaster Management shall function within the broad policies and guidelines laid down by the National Authority and be responsible for planning and promoting training and research in the area of disaster management, documentation and development of national level information base relating to disaster management policies, prevention mechanisms and mitigation measures. (9) Without prejudice to the generality of the provisions contained in sub-section (8), the National Institute, for the discharge of its functions, may— (a) develop training modules, undertake research and documentation in disaster management and organise training programmes; (b) formulate and implement a comprehensive human resource development plan covering all aspects of disaster management; (c) provide assistance in national level policy formulation; (d) provide required assistance to the training and research institutes for development of training and research programmes for stakeholders including Government functionaries and undertake training of faculty members of the State level training institutes; (e) provide assistance to the State Governments and State training institutes in the formulation of State level policies, strategies, disaster management framework and any other assistance as may be required by the State Governments or State training institutes for capacity-building of stakeholders, Government including its functionaries, civil society members, corporate sector and people's elected representatives; (f) develop educational materials for disaster management including academic and professional courses; (g) promote awareness among stakeholders including college or school teachers and students, technical personnel and others associated with multi-hazard mitigation, preparedness and response measures; (h) undertake, Organise and facilitate study courses, conferences, lectures, seminars within and outside the country to promote the aforesaid objects; (i) undertake and provide for publication of journals, research papers and books and establish and maintain libraries in furtherance of the aforesaid objects; (j) do all such other lawful things as are conducive or incidental to the attainment of the above objects; and (k) undertake any other function as may be assigned to it by the Central Government. **43. Officers and other employees of the National Institute.—The Central Government shall** provide the National Institute of Disaster Management with such officers, consultants and other employees, as it considers necessary, for carrying out its functions. CHAPTER VIII NATIONAL DISASTER RESPONSE FORCE **44. National Disaster Response Force.—(1) There shall be constituted a National Disaster** Response Force for the purpose of specialist response to a threatening disaster situation or disaster. (2) Subject to the provisions of this Act, the Force shall be constituted in such manner and, the conditions of service of the members of the Force, including disciplinary provisions therefore, be such as may be prescribed. **45. Control, direction, etc.—The general superintendence, direction and control of the Force shall** be vested and exercised by the National Authority and the command and supervision of the Force shall vest in an officer to be appointed by the Central Government as the Director General of the National Disaster Response Force. 22 ----- CHAPTER IX FINANCE, ACCOUNTS AND AUDIT **46. National Disaster Response Fund.—(1) The Central Government may, by notification in the** Official Gazette, constitute a fund to be called the National Disaster Response Fund for meeting any threatening disaster situation or disaster and there shall be credited thereto— (a) an amount which the Central Government may, after due appropriation made by Parliament by law in this behalf provide; (b) any grants that may be made by any person or institution for the purpose of disaster management. (2) The National Disaster Response Fund shall be made available to the National Executive Committee to be applied towards meeting the expenses for emergency response, relief and rehabilitation in accordance with the guidelines laid down by the Central Government in consultation with the National Authority. **47. National Disaster Mitigation Fund.—(1) The Central Government may, by notification in the** Official Gazette, constitute a Fund to be called the National Disaster Mitigation Fund for projects exclusively for the purpose of mitigation and there shall be credited thereto such amount which the Central Government may, after due appropriation made by Parliament by law in this behalf, provide. (2) The National Disaster Mitigation Fund shall be applied by the National Authority. **48. Establishment of funds by State Government.—(1) The State Government shall, immediately** after notifications issued for constituting the State Authority and the District Authorities, establish for the purposes of this Act the following funds, namely:— (a) the fund to be called the State Disaster Response Fund; (b) the fund to be called the District Disaster Response Fund; (c) the fund to be called the State Disaster Mitigation Fund; (d) the fund to be called the District Disaster Mitigation Fund. (2) The State Government shall ensure that the funds established— (i) under clause (a) of sub-section (1) is available to the State Executive Committee; (ii) under sub-clause (c) of sub-section (1) is available to the State Authority; (iii) under clauses (b) and (d) of sub-section (1) are available to the District Authority. **49. Allocation of funds by Ministries and Departments.—(1) Every Ministry or Department of the** Government of India shall make provisions, in its annual budget, for funds for the purposes of carrying out the activities and programmes set out in its disaster management plan. (2) The provisions of sub-section (1) shall, mutatis mutandis, apply to departments of the Government of the State. **50. Emergency procurement and accounting.—Where by reason of any threatening disaster** situation or disaster, the National Authority or the State Authority or the District Authority is satisfied that immediate procurement of provisions or materials or the immediate application of resources are necessary for rescue or relief,— (a) it may authorise the concerned department or authority to make the emergency procurement and in such case, the standard procedure requiring inviting of tenders shall be deemed to be waived; (b) a certificate about utilisation of provisions or materials by the controlling officer authorised by the National Authority, State Authority or District Authority, as the case may be, shall be deemed to be a valid document or voucher for the purpose of accounting of emergency, procurement of such provisions or materials. 23 ----- CHAPTER X OFFENCES AND PENALTIES **51. Punishment for obstruction, etc.—Whoever, without reasonable cause—** (a) obstructs any officer or employee of the Central Government or the State Government, or a person authorised by the National Authority or State Authority or District Authority in the discharge of his functions under this Act; or (b) refuses to comply with any direction given by or on behalf of the Central Government or the State Government or the National Executive Committee or the State Executive Committee or the District Authority under this Act, shall on conviction be punishable with imprisonment for a term which may extend to one year or with fine, or with both, and if such obstruction or refusal to comply with directions results in loss of lives or imminent danger thereof, shall on conviction be punishable with imprisonment for a term which may extend to two years. **52. Punishment for false claim.—Whoever knowingly makes a claim which he knows or has reason** to believe to be false for obtaining any relief, assistance, repair, reconstruction or other benefits consequent to disaster from any officer of the Central Government, the State Government, the National Authority, the State Authority or the District Authority, shall, on conviction be punishable with imprisonment for a term which may extend to two years, and also with fine. **53. Punishment for misappropriation of money or materials, etc.—Whoever, being entrusted with** any money or materials, or otherwise being, in custody of, or dominion over, any money or goods, meant for providing relief in any threatening disaster situation or disaster, misappropriates or appropriates for his own use or disposes of such money or materials or any part thereof or wilfully compels any other person so to do, shall on conviction be punishable with imprisonment for a term which may extend to two years, and also with fine. **54. Punishment for false warning.—Whoever makes or circulates a false alarm or warning as to** disaster or its severity or magnitude, leading to panic, shall on conviction, be punishable with imprisonment which may extend to one year or with fine. **55. Offences by Departments of the Government.—(1) Where an offence under this Act has been** committed by any Department of the Government, the head of the Department shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly unless he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a Department of the Government and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any officer, other than the head of the Department, such officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. **56. Failure of officer in duty or his connivance at the contravention of the provisions of this** **Act.—Any officer, on whom any duty has been imposed by or under this Act and who ceases or refuses** to perform or withdraws himself from the duties of his office shall, unless he has obtained the express written permission of his official superior or has other lawful excuse for so doing, be punishable with imprisonment for a term which may extend to one year or with fine. **57. Penalty for contravention of any order regarding requisitioning.—If any person contravenes** any order made under section 65, he shall be punishable with imprisonment for a term which may extend to one year or with fine or with both. **58. Offence by companies.—(1) Where an offence under this Act has been committed by a company** or body corporate, every person who at the time the offence was committed, was in charge of, and was responsible to, the company, for the conduct of the business of the company, as well as the company, 24 ----- shall be deemed to be guilty of the contravention and shall be liable to be proceeded against and punished accordingly: Provided that nothing in this sub-section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he exercised due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company, and it is proved that the offence was committed with the consent or connivance of or is attributable to any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also, be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purpose of this section—_ (a) “company” means any body corporate and includes a firm or other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm. **59. Previous sanction for prosecution.—No prosecution for offences punishable under sections 55** and 56 shall be instituted except with the previous sanction of the Central Government or the State Government, as the case may be, or of any officer authorised in this behalf, by general or special order, by such Government. **60. Cognizance of offences.—No court shall take cognizance of an offence under this Act except on** a complaint made by— (a) the National Authority, the State Authority, the Central Government, the State Government, the District Authority or any other authority or officer authorised in this behalf by that Authority or Government, as the case may be; or (b) any person who has given notice of not less than thirty days in the manner prescribed, of the alleged offence and his intention to make a complaint to the National Authority, the State Authority, the Central Government, the State Government, the District Authority or any other authority or officer authorised as aforesaid. CHAPTER XI MISCELLANEOUS **61. Prohibition against discrimination.—While providing compensation and relief to the victims of** disaster, there shall be no discrimination on the ground of sex, caste, community, descent or religion. **62. Power to issue direction by Central Government.—Notwithstanding anything contained in any** other law for the time being in force, it shall be lawful for the Central Government to issue direction in writing to the Ministries or Departments of the Government of India, or the National Executive Committee or the State Government, State Authority, State Executive Committee, statutory bodies or any of its officers or employees, as the case may be, to facilitate or assist in the disaster management and such Ministry or Department or Government or Authority, Executive Committee, statutory body, officer or employee shall be bound to comply with such direction. **63. Powers to be made available for rescue operations.—Any officer or authority of the Union or a** State, when requested by the National Executive Committee, any State Executive Committee or District Authority or any person authorised by such Committee or Authority in this behalf, shall make available to that Committee or authority or person, such officers and employees as requested for, to perform any of the functions in connection with the prevention of disaster or mitigation or rescue or relief work. **64. Making or amending rules, etc., in certain circumstances.—Subject to the provisions of this** Act, if it appears to the National Executive Committee, State Executive Committee or the District Authority, as the case may be, that provisions of any rule, regulation, notification, guideline, instruction, order, scheme or bye-laws, as the case may be, are required to be made or amended for the purposes of prevention of disasters or the mitigation thereof, it may require the amendment of such rules, regulation, 25 ----- notification, guidelines, instruction, order, scheme or bye-laws, as the case may be, for that purpose, and the appropriate department or authority shall take necessary action to comply with the requirements. **65. Power of requisition of resources, provisions, vehicles, etc., for rescue operations, etc.—(1) If** it appears to the National Executive Committee, State Executive Committee or District Authority or any officer as may be authorised by it in this behalf that— (a) any resources with any authority or person are needed for the purpose of prompt response; (b) any premises are needed or likely to be needed for the purpose of rescue operations; or (c) any vehicle is needed or is likely to be needed for the purposes of transport of' resources from disaster affected areas or transport of resources to the affected area or transport in connection with rescue, rehabilitation or reconstruction, such authority may, by order in writing, requisition such resources or premises or such vehicle, as the case may be, and may make such further orders as may appear to it to be necessary or expedient in connection with the requisitioning. (2) Whenever any resource, premises or vehicle is requisitioned under sub-section (1), the period of such requisition shall not extend beyond the period for which such resource, premises or vehicle is required for any of the purposes mentioned in that sub-section. (3) In this section,— (a) “resources” includes men and material resources; (b) “services” includes facilities; (c) “premises” means any land, building or part of a building and includes a hut, shed or other structure or any part thereof; (d) “vehicle” means any vehicle used or capable of being used for the purpose of transport, whether propelled by mechanical power or otherwise. **66. Payment of compensation.— (1) Whenever any Committee, Authority or officer referred to in** sub-section (1) of section 65, in pursuance of that section requisitions any premises, there shall be paid to the persons interested compensation the amount of which shall be determined by taking into consideration the following, namely:— (i) the rent payable in respect of the premises, or if no rent is so payable, the rent payable for similar premises in the locality; (ii) if as consequence of the requisition of the premises the person interested is compelled to change his residence or place of business, the reasonable expenses (if any) incidental to such change: Provided that where any person interested being aggrieved by the amount of compensation so determined makes an application within the thirty days to the Central Government or the State Government, as the case may be, for referring the matter to an arbitrator, the amount of compensation to be paid shall be such as the arbitrator appointed in this behalf by the Central Government or the State Government, as the case may be, may determine: Provided further that where there is any dispute as to the title to receive the compensation or as to the apportionment of the amount of compensation, it shall be referred by the Central Government or the State Government, as the case may be, to an arbitrator appointed in this behalf by the Central Government or the State Government, as the case may be, for determination, and shall be determined in accordance with the decision of such arbitrator. _Explanation.—In this sub-section, the expression “person interested” means the person who was in_ actual possession of the premises requisitioned under section 65 immediately before the requisition, or where no person was in such actual possession, the owner of such premises. (2) Whenever any Committee, Authority or officer, referred to in sub-section (1) of section 65 in pursuance of that section requisitions any vehicle, there shall be paid to the owner thereof compensation the mount of which shall be determined by the Central Government or the State Government, as the case may be, on the basis of the fares or rates prevailing in the locality for the hire of such vehicle: 26 ----- Provided that where the owner of such vehicle being aggrieved by the amount of compensation so determined makes an application within the prescribed time to the Central Government or the State Government, as the case may be, for referring the matter to an arbitrator, the amount of compensation to be paid shall be such as the arbitrator appointed in this behalf by the Central Government or the State Government, as the case may be, may determine: Provided further that where immediately before the requisitioning the vehicle or vessel was by virtue of a hire purchase agreement in the possession of a person other than the owner, the amount determined under this sub-section as the total compensation payable in respect of the requisition shall be apportioned between that person and the owner in such manner as they may agree upon, and in default of agreement, in such manner as an arbitrator appointed by the Central Government or the State Government, as the case may be, in this behalf may decide. **67. Direction to media for communication of warnings, etc.—The National Authority, the State** Authority, or a District Authority may recommend to the Government to give direction to any authority or person in control of any audio or audio-visual media or such other means of communication as may be available to carry any warning or advisories regarding any threatening disaster situation or disaster, and the said means of communication and media as designated shall comply with such direction. **68. Authentication of orders or decisions.—Every order or decision of the National Authority or** the National Executive Committee, the State Authority, or the State Executive Committee or the District Authority, shall be authenticated by such officers of the National Authority or the National Executive Committee or, the State Executive Committee, or the District Authority, as may be authorised by it in this behalf. **69. Delegation of powers.—The National Executive Committee, State Executive Committee, as the** case may be, by general or special order in writing, may delegate to the Chairperson or any other member or to any officer, subject to such conditions and limitations, if any, as may be specified in the order, such of its powers and functions under this Act as it may deem necessary. **70. Annual report.—(1) The National Authority shall prepare once every year, in such form and at** such time as may be prescribed, an annual report giving a true and full account of its activities during the previous year and copies thereof shall be forwarded to the Central Government and that Government shall cause the same to be laid before both Houses of Parliament within one month of its receipt. (2) The State Authority shall prepare once in every year, in such form and at such time as may be prescribed, an annual report giving a true and full account of its activities during the previous year and copies thereof shall be forwarded to the State Government and that Government shall cause the same to be laid before each House of the State Legislature where it consists of two Houses, or where such Legislature consists of one House, before that House. **71. Bar of jurisdiction of court.—No court (except the Supreme Court or a High Court) shall have** jurisdiction to entertain any suit or proceeding in respect of anything done, action taken, orders made, direction, instruction or guidelines issued by the Central Government, National Authority, State Government, State Authority or District Authority in pursuance of any power conferred by, or in relation to its functions, by this Act. **72. Act to have overriding effect.—The provisions of this Act, shall have effect, notwithstanding** anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law other than this Act. **73. Action taken in good faith.—No suit or prosecution or other proceeding shall lie in any court** against the Central Government or the National Authority or the State Government or the State Authority or the District Authority or local authority or any officer or employee of the Central Government or the National Authority or the State Government or the State Authority or the District Authority or local authority or any person working for on behalf of such Government or authority in respect of any work done or purported to have been done or intended to be done in good faith by such authority or Government or such officer or employee or such person under the provisions of this Act or the rules or regulations made thereunder. 27 ----- **74. Immunity from legal process.—Officers and employees of the Central Government, National** Authority, National Executive Committee, State Government, State Authority, State Executive Committee or District Authority shall be immune from legal process in regard to any warning in respect of any impending disaster communicated or disseminated by them in their official capacity or any action taken or direction issued by them in pursuance of such communication or dissemination. **75. Power of Central Government to make rules.—(1) The Central Government may, by** notification in the Official Gazette, make rules for carrying out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the composition and number of the members of the National Authority under sub-section (2), and the term of office and conditions of service of members of the National Authority under sub-section (4), of section 3; (b) the allowances to be paid to the members of the advisory committee under sub-section (2) of section 7; (c) the powers and functions of the Chairperson of the National Executive Committee under sub-section (3) of section 8 and the procedure to be followed by the National Executive Committee in exercise of its powers and discharge of its functions under sub-section (4) of section 8; (d) allowances to be paid to the persons associated with the sub-committee constituted by the National Executive Committee under sub-section (3) of section 9; (e) the number of members of the National Institute of Disaster Management under sub-section (2), the term of the office and vacancies among members and the manner of filling such vacancies under sub-section (3) and the manner of constituting the Governing Body of the National Institute of Disaster Management under sub-section (4) of section 42; (f) the manner of constitution of the Force, the conditions of service of the members of the Force, including disciplinary provisions under sub-section (2) of section 44; (g) the manner in which notice of the offence and of the intention to make a complaint to the National Authority, the State Authority, the Central Government, the State Government or the other authority or officer under clause (b) of section 60; (h) the form in which and the time within which annual report is to be prepared under section 70; (i) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be made by rules. **76. Power to make regulations.—(1) The National Institute of Disaster Management, with the** previous approval of the Central Government may, by notification in the Official Gazette, make regulations consistent with this Act and the rules made thereunder to carry out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:— (a) powers and functions to be exercised and discharged by the governing body; (b) procedure to be followed by the governing body in exercise of the powers and discharge of its functions; (c) any other matter for which under this Act provision may be made by the regulations. **77. Rules and regulations to be laid before Parliament.—Every rule made by the Central** Government and every regulation made by the National Institute of Disaster Management under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised of one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only 28 ----- in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. **78. Power of State Government to make rules.—(1) The State Government may, by notification in** the Official Gazette, make rules to carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the composition and number of the members of the State Authority under sub-section (2), and the term of office and conditions of service of the members of the State Authority under sub-section (5), of section 14; (b) the allowances to be paid to the members of the advisory committee under sub-section (2) of section 17; (c) the powers and functions of the Chairperson of the State Executive Committee under sub-section (3), and the procedure to be followed by the State Executive Committee in exercise of its powers and discharge of its functions under sub-section (4) of section 20; (d) allowances to be paid to the persons associated with the sub-committee constituted by the State Executive Committee under sub-section (3) of section 21; (e) the composition and the number of members of the District Authority under sub-section (2), and the powers and functions to be exercised and discharged by the Chief Executive Officer of the District Authority under sub-section (3) of section 25; (f) allowances payable to the persons associated with any committee constituted by the District Authority as experts under sub-section (3) of section 28; (g) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be made by rules. (3) Every rule made by the State Government under this Act shall be laid, as soon as may be after it is made, before each House of the State Legislature where it consists of two Houses, or where such Legislature consists of one House before that House. **79. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government or the State Government, as the case may be, by notification in the Official Gazette, make order not inconsistent with the provisions of this Act as may appear to it to be necessary or expedient for the removal of the difficulty: Provided that no such order shall be made after the expiration of two years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament or the Legislature, as the case may be. 29 -----

28-Dec-2005

54

The Manipur University Act, 2005

https://www.indiacode.nic.in/bitstream/123456789/2051/1/200554.pdf

central

# THE MANIPUR UNIVERSITY ACT, 2005 __________________ # ARRANGEMENT OF SECTIONS __________________ SECTIONS 1. Short title and commencement. 2. Definitions. 3. Establishment of the University. 4. Effect of establishment of the University. 5. Objects of the University. 6. Powers of the University. 7. Jurisdiction. 8. University open to all classes, castes and creed. 9. The Visitor. 10. The Chief Rector. 11. Officers of the University. 12. The Chancellor. 13. The Vice- Chancellor. 14. The Pro-Vice Chancellor. 15. The Deans of Schools. 16. The Registrar. 17. The Finance Officer. 18. The Controller of Examinations. 19. The Librarian. 20. Other officers. 21. Authorities of the University. 22. The Court. 23. The Executive Council. 24. The Academic Council. 25. The College Development Council. 26. The Boards of Studies. 27. The Finance Committee. 28. Other authorities of the University. 29. Powers to make Statutes. 30. Statutes, how to be made. 31. Power to make Ordinances. 32. Regulations. 33. Annual report. 34. Annual accounts. 35. Returns and information. 36. Conditions of service of employees. 37. Procedure of appeal and arbitration in disciplinary cases against students. 38. Right to appeal. 39. Provident and pension funds. 40. Disputes as to constitution of authorities and bodies. 41. Filling of casual vacancies. 1 ----- SECTIONS 42. Proceedings of authorities or bodies not invalidated by vacancies. 43. Protection of action taken in good faith. 44. Mode of proof of University record. 45. Power to remove difficulties. 46. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid before Parliament. 47. Transitional provisions. 48. Repeal and savings. THE SCHEDULE. 2 ----- # THE MANIPUR UNIVERSITY ACT, 2005 ACT NO. 54 OF 2005 [28th December, 2005.] # An Act to establish and incorporate a teaching and affiliating University in the State of Manipur and to provide for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-sixth Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the Manipur University Act, 2005.** (2) It shall be deemed to have come into force on the 13th day of October, 2005. **2. Definitions.—In this Act, and in all Statutes made hereunder, unless the context otherwise** requires,— (a) “Academic Council” means the Academic Council of the University; (b) “academic staff” means such categories of staff as are designated as academic staff by the Ordinances; (c) “Affiliated College” means a college admitted to the privileges of the University; (d) “Board of Studies” means the Board of Studies of the University; (e) “Chancellor”, “Vice-Chancellor” and “Pro-Vice-Chancellor” mean, respectively, the Chancellor, Vice-Chancellor and Pro-Vice-Chancellor of the University; (f) “College Development Council” means the College Development Council of the University; (g) “Constituent College” means a college maintained by the University; (h) “Court” means the Court of the University; (i) “Department” means a Department of Studies and includes a Centre of Studies; (j) “distance education system” means the system of imparting education through any means of communication, such as broadcasting, telecasting, correspondence courses, seminars, contact programmes or the combination of any two or more such means; (k) “employee” means any person appointed by the University and includes teachers and other staff of the University; (l) “Executive Council” means the Executive Council of the University; (m) “Hall” means a unit of residence or of corporate life for the students of the University, or of a College or an Institution, maintained by the University; (n) “Institution” means an academic institution, not being a College, maintained by, or admitted to the privileges of, the University; (o) “Principal” means the Head of a College or an Institution maintained by the University and includes, where there is no Principal, the person for the time being duly appointed to act as Principal, and in the absence of the Principal, or the acting Principal, a Vice-Principal duly appointed as such; (p) “recognised teachers” means such persons as may be recognised by the University for the purpose of imparting instructions in a College or an Institution admitted to the privileges of the University; (q) “Regulations” means the Regulations made by any authority of the University under this Act for the time being in force; (r) “School” means a School of Studies of the University; (s) “Statutes” and “Ordinances” mean, respectively, the Statutes and the Ordinances of the University for the time being in force; 3 ----- (t) “teachers of the University” means Professors, Readers, Lecturers and such other persons as may be appointed for imparting instruction or conducting research in the University or in any College or Institution maintained by the University and are designated as teachers by the Ordinances; (u) “University” means the Manipur University established and incorporated as a University under this Act. **3. Establishment of the University.—(1) The Manipur University in the State of Manipur,** established under the Manipur University Act, 1980 (Manipur Act 8 of 1980), shall be established as a body corporate under this Act by the same name of “Manipur University”. (2) The first Chancellor, the first Vice-Chancellor and the first members of the Court, the Executive Council and the Academic Council, and all persons who may hereafter become such officers or members, so long as they continue to hold such office or membership, shall constitute the University. (3) The University shall have perpetual succession and a common seal and shall sue and be sued by the said name. (4) The headquarters of the University shall be at Imphal. **4. Effect of establishment of the University.—On and from the date of commencement of this** Act,— (a) any reference to the Manipur University in any contract or other instrument shall be deemed as a reference to the University; (b) all properties, movable and immovable, of or belonging to the Manipur University shall vest in the University; (c) all rights and liabilities of the Manipur University shall be transferred to, and be the rights and liabilities of, the University; (d) every person employed by the Manipur University immediately before the commencement of this Act shall hold his office or service in the University by the same tenure, at the same remuneration and upon the same terms and conditions and with the same rights and privileges as to pension, leave, gratuity, provident fund and other matters as he would have held the same if this Act had not been enacted, and shall continue to do so unless and until his employment is terminated or until such promulgated tenure, remuneration and terms and conditions are duly altered by the Statutes: Provided that if the alteration so made is not acceptable to such employee, his employment may be terminated by the University in accordance with the term of the contract with the employee or, if no provision is made therein in this behalf, on payment to him by the University of compensation equivalent to three months' remuneration in case of permanent employees and one month's remuneration in the case of other employees: Provided further that any reference, by whatever form of words, to the Vice-Chancellor and Pro Vice-Chancellor of the Manipur University in any law for the time being in force, or in any instrument or other document, shall be construed as a reference respectively to the Vice-Chancellor and the Pro-Vice-Chancellor of the University; (e) the Vice-Chancellor of the Manipur University, appointed under the provisions of the Manipur University Act, 1980 (Manipur Act 8 of 1980) shall be deemed to have been appointed as the ViceChancellor under this Act, and shall hold office for a period of three months or till such time the first Vice-Chancellor is appointed under section 47 of the Act, whichever is earlier; and (f) all Colleges, Institutions, Schools and Departments affiliated to, or admitted to the privileges of, or maintained by, the Manipur University shall stand affiliated to, or admitted to the privilege of, or maintained by, the University. **5. Objects of the University.—The objects of the University shall be to disseminate and advance** knowledge by providing instructional and research facilities in such branches of learning as it may deem fit; to make provisions for integrated courses in humanities, natural and physical sciences, social sciences, forestry and other allied disciplines in the educational programmes of the University; to take appropriate 4 ----- measures for promoting innovations in teaching-learning process, inter-disciplinary studies and research; to educate and train manpower for the development of the State of Manipur; and to pay special attention to the improvement of the social and economic conditions and welfare of the people of that State, their intellectual, academic and cultural development. **6. Powers of the University.—The University shall have the following powers, namely:—** (i) to provide for instructions in such branches of learning as the University may, from time to time, determine and to make provisions for research and for the advancement and dissemination of knowledge; (ii) to grant, subject to such conditions as the University may determine, diplomas or certificates to, and confer degrees or other academic distinctions on the basis of examinations, evaluation or any other method of testing, on persons, and to withdraw any such diplomas, certificates, degrees or other academic distinctions for good and sufficient cause; (iii) to organise and to undertake extramural studies, training and extension services; (iv) to confer honorary degrees or other distinctions in the manner prescribed by the Statutes; (v) to provide facilities through the distance education system to such persons as it may determine; (vi) to institute Principalships, Professorships, Readerships, Lecturerships and other teaching or academic positions, required by the University and to appoint persons to such Principalships, Professorships, Readerships, Lecturerships or other teaching or academic positions; (vii) to recognise an institution of higher learning for such purposes as the University may determine and to withdraw such recognition; (viii) to recognise persons for imparting instructions in any College or Institution admitted to the privileges of the University; (ix) to appoint persons working in any other University or organisation as teachers of the University for a specified period; (x) to create administrative, ministerial and other posts and to make appointments thereto; (xi) to co-operate or collaborate or associate with any other University or authority or institution of higher learning in such manner and for such purposes as the University may determine; (xii) to establish, with the prior approval of the Central Government, such Centres and specialised laboratories or other units for research and instruction as are, in the opinion of the University, necessary for the furtherance of its objects; (xiii) to institute and award fellowships, scholarships, studentships, medals and prizes; (xiv) to establish and maintain Colleges, Institutions and Halls; (xv) to make provision for research and advisory services and for that purpose to enter into such arrangements with other institutions, industrial or other organisations, as the University may deem necessary; (xvi) to organise and conduct refresher courses, workshops, seminars and other programmes for teachers, evaluators and other academic staff; (xvii) to admit to its privileges colleges and institutions within the State of Manipur not maintained by the University; to withdraw all or any of those privileges in accordance with such conditions as may be prescribed by the Statutes; to recognise, guide, supervise, and control Halls not maintained by the University and other accommodation for students, and to withdraw any such recognition; (xviii) to appoint on contract or otherwise visiting Professors, Emeritus Professors, Consultants, Scholars and such other persons who may contribute to the advancement of the objects of the University; 5 ----- (xix) to confer autonomous status on a College or an Institution or a Department, as the case may be, in accordance with the Statutes; (xx) to determine standards of admission to the University, which may include examination, evaluation or any other method of testing; (xxi) to demand and receive payment of fees and other charges; (xxii) to supervise the residences of the students of the University and to make arrangements for promoting their health and general welfare; (xxiii) to lay down conditions of service of all categories of employees, including their code of conduct; (xxiv) to regulate and enforce discipline among the students and the employees, and to take such disciplinary measures in this regard as may be deemed by the University to be necessary; (xxv) to make arrangements for promoting the health and general welfare of the employees; (xxvi) to receive benefactions, donations and gifts and to acquire, hold, manage and dispose of any property, movable or immovable, including trust and endowment properties for the purposes of the University; (xxvii) to borrow, with the approval of the Central Government, on the security of the property of the University, money for the purposes of the University; (xxviii) to do all such other acts and things as may be necessary, incidental or conducive to the attainment of all or any of its objects. **7. Jurisdiction.—The jurisdiction of the University shall extend to the whole of the State of Manipur.** **8. University open to all classes, castes and creed.—The University shall be open to persons of** either sex and of whatever caste, creed, race or class, and it shall not be lawful for the University to adopt or impose on any person, any test whatsoever of religious belief or profession in order to entitle him to be appointed as a teacher of the University or to hold any other office therein or be admitted as a student in the University or to graduate thereat or to enjoy or exercise any privilege thereof: Provided that nothing in this section shall be deemed to prevent the University from making special provisions for the employment or admission of women, physically handicapped or of persons belonging to the weaker sections of the society and, in particular, of the Scheduled Castes and the Scheduled Tribes. **9. The Visitor.—(1) The President of India shall be the Visitor of the University.** (2) The Visitor may, from time to time, appoint one or more persons to review the work and progress of the University, including Colleges and Institutions maintained by it, and to submit a report thereon; and upon receipt of that report, the Visitor may, after obtaining the views of the Executive Council thereon through the Vice-Chancellor, take such action and issue such directions as he considers necessary in respect of any of the matters dealt with in the report and the University shall be bound to comply with such directions. (3) The Visitor shall have the right to cause an inspection to be made by such person or persons as he may direct, of the University, its buildings, libraries, laboratories and equipment, and of any College or Institution maintained by the University or admitted to its privileges; and also of the examinations, teaching and other work conducted or done by the University and to cause an inquiry to be made in like manner in respect of any matter connected with the administration or finances of the University, Colleges or Institutions. (4) The Visitor shall, in every matter referred to in sub-section (3), give notice of his intention to cause an inspection or inquiry to be made,— (a) to the University, if such inspection or inquiry is to be made in respect of the University or any College or Institution maintained by it, or 6 ----- (b) to the management of the College or Institution, if the inspection or inquiry is to be made in respect of College or Institution admitted to the privileges of the University, and the University or the management, as the case may be, shall have the right to make such representations to the Visitor, as it may consider necessary. (5) After considering the representations, if any, made by the University or the management, as the case may be, the Visitor may cause to be made such inspection or inquiry as is referred to in sub-section (3). (6) Where any inspection or inquiry has been caused to be made by the Visitor, the University or the management shall be entitled to appoint a representative, who shall have the right to be present and be heard at such inspection or inquiry. (7) The Visitor may, if the inspection or inquiry is made in respect of the University or any College or Institution maintained by it, address the Vice-Chancellor with reference to the result of such inspection or inquiry together with such views and advice with regard to the action to be taken thereon, as the Visitor may be pleased to offer, and on receipt of address made by the Visitor, the Vice-Chancellor shall communicate, to the Executive Council, the views of the Visitor with such advice as the Visitor may offer upon the action to be taken thereon. (8) The Visitor may, if the inspection or inquiry is made in respect of any College or Institution admitted to the privileges of the University, address the management concerned through the ViceChancellor with reference to the result of such inspection or inquiry, his views thereon and such advice as he may be pleased to offer upon the action to be taken thereon. (9) The Executive Council or the management, as the case may be, shall communicate, through the Vice-Chancellor to the Visitor such action, if any, as it proposes to take or has been taken upon the result of such inspection or inquiry. (10) Where, the Executive Council or the management, does not, within a reasonable time, take action to the satisfaction of the Visitor, the Visitor may, after considering any explanation furnished or representation made by the Executive Council or the management, issue such directions as he may think fit and the Executive Council or the management, as the case may be, shall comply with such directions. (11) Without prejudice to the foregoing provisions of this section, the Visitor may, by order in writing, annul any proceeding of the University which is not in conformity with the Act, the Statutes or the Ordinances: Provided that before making any such order, he shall call upon the Registrar to show cause why such an order should not be made, and, if any cause is shown within a reasonable time, he shall consider the same. (12) The Visitor shall have such other powers as may be prescribed by the Statutes. **10. The Chief Rector.—The Governor of the State of Manipur shall be the Chief Rector of the** University. **11. Officers of the University.—The following shall be the officers of the University,—** (1) the Chancellor; (2) the Vice-Chancellor; (3) the Pro-Vice-Chancellor; (4) the Deans of Schools; (5) the Registrar; (6) the Finance Officer; (7) the Controller of Examinations; (8) the Librarian; and 7 ----- (9) such other officers as may be declared by the Statutes to be the officers of the University. **12. The Chancellor.—(1) The Chancellor shall be appointed by the Visitor in such manner as may be** prescribed by the Statutes. (2) The Chancellor shall, by virtue of his office, be the head of the University and shall, if present, preside at the Convocations of the University held for conferring degrees and meetings of the Court. **13. The Vice-Chancellor.—(1) The Vice-Chancellor shall be appointed by the Visitor in such** manner as may be prescribed by the Statutes. (2) The Vice-Chancellor shall be the principal executive and academic officer of the University and shall exercise general supervision and control over the affairs of the University and give effect to the decisions of all the authorities of the University. (3) The Vice-Chancellor may, if he is of opinion that immediate action is necessary on any matter, exercise any power conferred on any authority of the University by or under this Act and shall report to such authority at its next meeting the action taken by him on such matter: Provided that if the authority concerned is of opinion that such action ought not to have been taken, it may refer the matter to the Visitor whose decision thereon shall be final: Provided further that any person in the service of the University who is aggrieved by the action taken by the Vice-Chancellor under this sub-section shall have the right to represent against such action to the Executive Council within three months from the date on which decision on such action is communicated to him and thereupon the Executive Council may confirm, modify or reverse the action taken by the ViceChancellor. (4) The Vice-Chancellor, if he is of the opinion that any decision of any authority of the University is beyond the powers of the authority conferred by the provisions of this Act, the Statutes or the Ordinances or that any decision taken is not in the interest of the University, may ask the authority concerned to review its decision within sixty days of such decision and if the authority refuses to review the decision either in whole or in part or no decision is taken by it within the said period of sixty days, the matter shall be referred to the Visitor whose decision thereon shall be final. (5) The Vice-Chancellor shall exercise such other powers and perform such other duties as may be prescribed by the Statutes or the Ordinances. **14. The Pro-Vice-Chancellor.—The Pro-Vice-Chancellor shall be appointed in such manner and on** such terms and conditions of service, and shall exercise such powers and perform such duties, as may be prescribed by the Statutes. **15. The Deans of Schools.—Every Dean of School shall be appointed in such manner and shall** exercise such powers and perform such duties as may be prescribed by the Statutes. **16. The Registrar.—(1) The Registrar shall be appointed in such manner and on such terms and** conditions of service as may be prescribed by the Statutes. (2) The Registrar shall have the power to enter into agreements, sign documents and authenticate records on behalf of the University and shall exercise such powers and perform such duties as may be prescribed by the Statutes. **17. The Finance Officer.—The Finance Officer shall be appointed in such manner and shall exercise** such powers and perform such duties, as may be prescribed by the Statutes. **18. The Controller of Examinations.—The Controller of Examinations shall be appointed in such** manner and shall exercise such powers and perform such duties, as may be prescribed by the Statutes. **19. The Librarian.—The Librarian shall be appointed in such manner and on such terms and** conditions of service, and shall exercise such powers and perform such duties, as may be prescribed by the Statutes. **20. Other officers.—The manner of appointment and powers and duties of other officers of the** University shall be prescribed by the Statutes. 8 ----- **21. Authorities of the University.—The following shall be the authorities of the University,—** (1) the Court; (2) the Executive Council; (3) the Academic Council; (4) the College Development Council; (5) the Board of Studies; (6) the Finance Committee; and (7) such other authorities as may be declared by the Statutes to be the authorities of the University. **22. The Court.—(1) The constitution of the Court and the term of office of its members shall be** prescribed by the Statutes. (2) Subject to the provisions of this Act, the Court shall have the following powers and functions, namely:— (a) to review, from time to time, the broad policies and programmes of the University and to suggest measures for the improvement and development of the University; (b) to consider and pass resolutions on the annual report and the annual accounts of the University and the audit report on such accounts; (c) to advise the Visitor in respect of any matter which may be referred to it for advice; and (d) to perform such other functions as may be prescribed by the Statutes. **23. The Executive Council.—(1) The Executive Council shall be the principal executive body of the** University. (2) The constitution of the Executive Council, the term of office of its members and its powers and functions shall be prescribed by the Statutes. **24. The Academic Council.—(1) The Academic Council shall be the principal academic body of the** University and shall, subject to the provisions of this Act, the Statutes and the Ordinances, co-ordinate and exercise general supervision over the academic policies of the University. (2) The constitution of the Academic Council, the term of office of its members and its powers and functions shall be prescribed by the Statutes. **25. The College Development Council.—(1) The College Development Council shall be responsible** for admitting Colleges to the privileges of the University. (2) The constitution of the College Development Council, the term of office of its members and its powers and functions shall be prescribed by the Statutes. **26. The Boards of Studies.—The constitution, powers and functions of the Boards of Studies shall** be prescribed by the Statutes. **27. The Finance Committee.—The constitution, powers and functions of the Finance Committee** shall be prescribed by the Statutes. **28. Other authorities of the University.—The constitution, powers and functions of other** authorities, as may be declared by the Statutes to be the authorities of the University, shall be prescribed by the Statutes. **29. Powers to make Statutes.—Subject to the provisions of this Act, the Statutes may provide for all** or any of the following matters, namely:— (a) the constitution, powers and functions of authorities and other bodies of the University, as may be constituted from time to time; 9 ----- (b) the appointment and continuance in office of the members of the said authorities and bodies, the filling up of vacancies of members, and all other matters relating to those authorities and other bodies for which it may be necessary or desirable to provide; (c) the appointment, powers and duties of the officers of the University and their emoluments; (d) the appointment of teachers, academic staff and other employees of the University, their emoluments and conditions of service; (e) the recognition of persons as University recognised teachers; (f) the appointment of teachers, academic staff working in any other University or organisation for a specific period for undertaking a joint project; (g) the conditions of service of employees including provisions for pension, insurance, provident fund, the manner of termination of service and disciplinary action; (h) the principles governing the seniority of service of the employees of the University; (i) the procedure for arbitration in cases of dispute between employees or students and the University; (j) the procedure for appeal to the Executive Council by any employee or student against the action of any officer or authority of the University; (k) the conferment of autonomous status on a College or an Institution or a Department; (l) the establishment and abolition of Schools, Departments, Centres, Halls, Colleges and Institutions; (m) the conferment of honorary degrees; (n) the withdrawal of degrees, diplomas, certificates and other academic distinctions; (o) the conditions under which Colleges and Institutions may be admitted to the privileges of the University and the withdrawal of such privileges; (p) the management of Colleges and Institutions established by the University; (q) the delegation of powers vested in the authorities or officers of the University; (r) the maintenance of discipline among the employees and students; (s) all other matters which by this Act are to be or may be provided for by the Statutes. **30. Statutes, how to be made.— (1) The first Statutes are those set out in the Schedule.** (2) The Executive Council may, from time to time, make new or additional Statutes or may amend or repeal the Statutes referred to in sub-section (1): Provided that the Executive Council shall not make, amend or repeal any Statutes affecting the status, powers or constitution of any authority of the University until such authority has been given an opportunity of expressing an opinion in writing on the proposed changes, and any opinion so expressed shall be considered by the Executive Council. (3) Every new Statute or addition to the Statutes or any amendment or repeal of a Statute shall require the assent of the Visitor who may assent thereto or withhold assent or remit to the Executive Council for re-consideration. (4) A new Statute or a Statute amending or repealing an existing Statute shall have no validity unless it has been assented to by the Visitor. (5) Notwithstanding anything contained in the foregoing sub-sections, the Visitor may make new or additional Statutes or amend or repeal the Statutes referred to in sub-section (1), during the period of three years immediately after the commencement of this Act: 10 ----- Provided that the Visitor may, on the expiry of the said period of three years, make, within one year from the date of such expiry, such detailed Statutes as he may consider necessary and such detailed Statutes shall be laid before both Houses of Parliament. (6) Notwithstanding anything contained in the foregoing sub-sections, the Visitor may direct the University to make provisions in the Statutes in respect of any matter specified by him and if the Executive Council is unable to implement such direction within sixty days of its receipt, the Visitor may, after considering the reasons, if any, communicated by the Executive Council for its inability to comply with such direction, make or amend the Statutes suitably. **31. Power to make Ordinances.—(1) Subject to the provisions of this Act and the Statutes, the** Ordinances may provide for all or any of the following matters, namely:— (a) the admission of students to the University and their enrolment as such; (b) the courses of study to be laid down for all degrees, diplomas and certificates of the University; (c) the medium of instruction and examination; (d) the award of degrees, diplomas, certificates and other academic distinctions, the qualifications for the same and the means to be taken relating to the granting and obtaining of the same; (e) the fees to be charged for courses of study in the University and for admission to the examinations, degrees and diplomas of the University; (f) the conditions for award of fellowships, scholarships, studentships, medals and prizes; (g) the conduct of examinations, including the term of office and manner of appointment and the duties of examining bodies, examiners and moderators; (h) the conditions of residence of the students of the University; (i) the special arrangements, if any, which may be made for the residence, discipline and teaching of women students and the prescribing of special courses of studies for them; (j) the establishment of Centres of Studies, Boards of Studies, Specialised Laboratories and other Committees; (k) the manner of co-operation and collaboration with other Universities, institutions and other agencies including learned bodies or associations; (l) the creation, composition and functions of any other body which is considered necessary for improving the academic life of the University; (m) the institution of fellowships, scholarships, studentships, medals and prizes; (n) the supervision of management of Colleges and Institutions admitted to the privileges of the University; (o) the setting up of a machinery for redressal of grievances of employees; and (p) all other matters which by this Act or the Statutes, are to be or may be, provided for by the Ordinances. (2) The first Ordinances shall be made by the Vice-Chancellor with the previous approval of the Central Government and the Ordinances so made may be amended, repealed or added to at any time by the Executive Council in the manner prescribed by the Statutes: Provided that till such time as the first Ordinances are not so made by the Vice-Chancellor, in respect of the matters that are to be provided for by the Ordinances under this Act and Statutes, the relevant provisions of the Statutes and the Ordinances of the Manipur University in force immediately before the commencement of this Act shall be applicable insofar as they are not inconsistent with the provisions of this Act and the Statutes. 11 ----- **32. Regulations.—The authorities of the University may make Regulations, consistent with this Act,** the Statutes and the Ordinances for the conduct of their own business and that of the Committees, if any, appointed by them and not provided for by this Act, the Statutes or the Ordinances, in the manner prescribed by the Statutes. **33. Annual report.—(1) The annual report of the University shall be prepared under the direction of** the Executive Council, which shall include, among other matters, the steps taken by the University towards the fulfilment of its objects and shall be submitted to the Court on or after such date as may be prescribed by the Statutes and the Court shall consider the report in its annual meeting. (2) The Court shall submit the annual report to the Visitor along with its comments, if any. (3) A copy of the annual report, as prepared under sub-section (1), shall also be submitted to the Central Government, which shall, as soon as may be, cause the same to be laid before both Houses of Parliament. **34. Annual accounts.—(1) The annual accounts and balance-sheet of the University shall be** prepared under the directions of the Executive Council and shall, once at least every year and at intervals of not more than fifteen months, be audited by the Comptroller and Auditor-General of India or by such persons as he may authorise in this behalf. (2) A copy of the annual accounts together with the audit report thereon shall be submitted to the Court and the Visitor along with the observations of the Executive Council. (3) Any observations made by the Visitor on the annual accounts shall be brought to the notice of the Court and the observations of the Court, if any, shall, after being considered by the Executive Council, be submitted to the Visitor. (4) A copy of the annual accounts together with the audit report as submitted to the Visitor, shall also be submitted to the Central Government, which shall, as soon as may be, cause the same to be laid before both Houses of Parliament. (5) The audited annual accounts after having been laid before both Houses of Parliament shall be published in the Gazette of India. **35. Returns and information.—The University shall furnish to the Central Government such returns** or other information with respect to its property or activities as the Central Government may, from time to time, require. **36. Conditions of service of employees.— (1) Every employee of the University shall be appointed** under a written contract, which shall be lodged with the University and a copy of which shall be furnished to the employee concerned. (2) Any dispute arising out of the contract between the University and any employee shall, at the request of the employee, be referred to a Tribunal of Arbitration consisting of one member appointed by the Executive Council, one member nominated by the employee concerned and an umpire appointed by the Visitor. (3) The decision of the Tribunal shall be final, and no suit shall lie in any civil court in respect of the matters decided by the Tribunal. (4) Every request made by the employee under sub-section (2), shall be deemed to be a submission to arbitration upon the terms of this section within the meaning of the Arbitration and Conciliation Act, 1996 (26 of 1996). (5) The procedure for regulating the work of the Tribunal shall be prescribed by the Statutes. **37. Procedure of appeal and arbitration in disciplinary cases against students.—(1) Any student** or candidate for an examination whose name has been removed from the rolls of the University by the orders or resolution of the Vice-Chancellor, Discipline Committee or Examination Committee, as the case may be, and who has been debarred from appearing at the examinations of the University for more than one year, may, within ten days of the date of receipt of such orders or copy of such resolution by him, 12 ----- appeal to the Executive Council and the Executive Council may confirm, modify or reverse the decision of the Vice-Chancellor or the Committee, as the case may be. (2) Any dispute arising out of any disciplinary action taken by the University against a student shall, at the request of such student, be referred to a Tribunal of Arbitration and the provisions of sub-sections (2), (3), (4) and (5) of section 36 shall, as far as may be, apply to a reference made under this sub-section. **38. Right to appeal.—Every employee or student of the University or of a College or Institution** maintained by the University or admitted to its privileges shall, notwithstanding anything contained in this Act, have a right to appeal within such time as may be prescribed by the Statutes, to the Executive Council against the decision of any officer or authority of the University or of the Principal or the management of any College or an Institution, as the case may be, and thereupon the Executive Council may confirm, modify or reverse the decision appealed against. **39. Provident and pension funds.— (1) The University shall constitute for the benefit of its** employees such provident or pension fund or provide such insurance schemes as it may deem fit in such manner and subject to such conditions as may be prescribed by the Statutes. (2) Where such provident fund or pension fund has been so constituted, the Central Government may declare that the provisions of the Provident Funds Act, 1925 (19 of 1925), shall apply to such fund, as if it were a Government provident fund. **40. Disputes as to constitution of authorities and bodies.—If any question arises as to whether any** person has been duly elected or appointed as, or is entitled to be, a member of any authority or other body of the University, the matter shall be referred to the Visitor whose decision thereon shall be final. **41. Filling of casual vacancies.—All casual vacancies among the members (other than** _ex officio_ members) of any authority or other body of the University shall be filled, as soon as may be, by the person or body who appoints, elects or co-opts the member whose place has become vacant and person appointed, elected or co-opted to a casual vacancy shall be a member of such authority or body for the residue of the term for which the person whose place he fills would have been a member. **42. Proceedings of authorities or bodies not invalidated by vacancies.—No act or proceedings of** any authority or other body of the University shall be invalid merely by reason of the existence of a vacancy or vacancies among its members. **43. Protection of action taken in good faith.—No suit or other legal proceeding shall lie against any** officer or other employee of the University for anything which is in good faith done or intended to be done in pursuance of any of the provisions of this Act, the Statutes or the Ordinances. **44. Mode of proof of University record.—Notwithstanding anything contained in the Indian** Evidence Act, 1872 (1 of 1872) or in any other law for the time being in force, a copy of any receipt, application, notice, order, proceeding or resolution of any authority or other body of the University, or any other document in possession of the University, or any entry in any register duly maintained by the University, if certified by the Registrar, shall be received as _prima facie evidence of such receipt,_ application, notice, order, proceeding, resolution or document or the existence of entry in the register and shall be admitted as evidence of the matters and transactions therein where the original thereof would, if produced, have been admissible in evidence. **45. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made under this section after the expiry of three years from the commencement of this Act. (2) Every order made under sub-section (1) shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification 13 ----- in the order or both Houses agree that the order should not be made, the order shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that order. **46. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid** **before Parliament.—(1) Every Statute, Ordinance or Regulation made under this Act shall be published** in the Official Gazette. (2) Every Statute, Ordinance or Regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the Statute, Ordinance or Regulation or both Houses agree that the Statute, Ordinance or Regulation should not be made, the Statute, Ordinance or Regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that Statute, Ordinance or Regulation. (3) The power to make Statutes, Ordinances or Regulations shall include the power to give retrospective effect, from a date not earlier than the date of commencement of this Act, to the Statute, Ordinance or Regulations or any of them but no retrospective effect shall be given to any Statute, Ordinance or Regulation so as to prejudicially affect the interests of any person to whom such Statute, Ordinance or Regulation may be applicable. **47. Transitional provisions.—Notwithstanding anything contained in this Act and the Statutes,—** (a) the first Chancellor and first Vice-Chancellor shall be appointed by the Visitor in such manner and on such conditions as may be deemed fit and each of the said officer shall hold office for such term, not exceeding five years as may be specified by the Visitor; (b) the first Registrar and the first Finance Officer shall be appointed by the Visitor and each of the said officers shall hold office for a term of three years; (c) the first Court and the first Executive Council shall consist of not more than thirty members and eleven members, respectively, who shall be nominated by the Visitor and shall hold office for a term of three years; (d) the first College Development Council shall consist of not more than ten members, who shall be nominated by the Visitor and they shall hold office for a term of three years; (e) the first Academic Council shall consist of not more than twenty-one members, who shall be nominated by the Visitor and they shall hold office for a term of three years: Provided that if any vacancy occurs in the above offices or authorities, the same shall be filled by appointment or nomination, as the case may be, by the Visitor, and the person so appointed or nominated shall hold office for so long as the officer or member in whose place he is appointed or nominated would have held office, if such vacancy had not occurred. **48. Repeal and savings.—(1) The Manipur University Ordinance, 2005 (Ord. 3 of 2005) is hereby** repealed. (2) Notwithstanding such repeal anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act and— (a) all appointments made, orders issued, degrees and other academic distinctions conferred, diplomas and certificates awarded, privileges granted, or other things done under the Manipur University Ordinance, 2005 (Ord. 3 of 2005), shall be deemed to have been respectively made, issued, conferred, awarded, granted or done under the corresponding provisions of this Act and, except as otherwise provided by or this Act or the Statutes, continue in force unless and until they are superseded by any order made under this Act or the Statutes; and 14 ----- (b) all proceedings of Selection Committees for the appointment or promotion of teachers that took place before the commencement of this Act and all actions of the Executive Council in respect of the recommendations of such Selection Committees where no orders of appointment on the basis thereof were passed before the commencement of this Act shall, notwithstanding that the procedure for selection has been modified by this Act, be deemed to have been valid but further proceeding in connection with such pending selections shall be taken in accordance with the provisions of this Act and be continued from the stage where they stood immediately before such commencement, except if the concerned authorities take, with the approval of the Visitor, a decision to the contrary. 15 ----- THE SCHEDULE (See section 30) THE STATUTES OF THE UNIVERSITY **1. The Chancellor.—(1) The Chancellor shall be appointed by the Visitor from a panel of not less** than three persons recommended by the Executive Council from amongst persons of eminence in the academic or public life of the country: Provided that if the Visitor does not approve of any of the persons so recommended, he may call for fresh recommendations from the Executive Council. (2) The Chancellor shall hold office for a term of five years and shall not be eligible for re appointment: Provided that notwithstanding the expiry of his term of office, the Chancellor shall continue to hold office until his successor enters upon his office. **2. The Vice-Chancellor.—(1) The Vice-Chancellor shall be appointed by the Visitor from a panel of** not less than three persons who shall be recommended by a Committee as constituted under clause (2): Provided that if the Visitor does not approve of any of the persons included in the panel, he may call for an extended fresh panel. (2) The Committee referred to in clause (1) shall consist of three persons, out of whom two shall be nominated by the Executive Council and one by the Visitor and the nominee of the Visitor shall be the convener of the Committee: Provided that none of the members of the Committee shall be an employee of the University or an institution maintained by, or admitted to the privileges of, the University or a member of any authority of the University. (3) The Vice-Chancellor shall be a whole-time salaried officer of the University. (4) The Vice-Chancellor shall hold office for a term of five years from the date on which he enters upon his office, or until he attains the age of sixty-five years, whichever is earlier, and he shall not be eligible for re-appointment: Provided that notwithstanding the expiry of the said period of five years, he shall continue in office until his successor is appointed and enters upon his office: Provided further that the Visitor may direct any Vice-Chancellor after his term has expired, to continue in office for such period, not exceeding a total period of one year, as may be specified by him. (5) The emoluments and other conditions of service of the Vice-Chancellor shall be as follows:— (i) The Vice-Chancellor shall be paid a monthly salary and allowances, other than house rent allowance, at the rates fixed by the Central Government from time to time and he shall be entitled, without payment of rent, to use a furnished residence throughout his term of office and no charge shall fall on the Vice-Chancellor in respect of the maintenance of such residence. (ii) The Vice-Chancellor shall be entitled to such terminal benefits and allowances as may be fixed by the Central Government from time to time: Provided that where an employee of the University, or a college or an institution maintained by, or admitted to the privileges of, the University, or of any other University or any college or institution maintained by or admitted to the privileges of, such other University, is appointed as the ViceChancellor, he may be allowed to continue to contribute to any provident fund of which he is a member and the University shall contribute to the account of such person in that provident fund at the same rate at which the person had been contributing immediately before his appointment as the ViceChancellor: Provided further that where such employee had been member of any pension scheme, the University shall make the necessary contribution to such scheme. 16 ----- (iii) The Vice-Chancellor shall be entitled to travelling allowance at such rates as may be fixed by the Executive Council. (iv) The Vice-Chancellor shall be entitled to leave on full pay at the rate of thirty days in a calendar year and the leave shall be credited to his account in advance in two half-yearly instalments of fifteen days each on the first day of January and July every year: Provided that if the Vice-Chancellor assumes or relinquishes charge of the office of the Vice Chancellor during the currency of a half year, the leave shall be credited proportionately at the rate of two and-a-half days for each completed month of service. (v) In addition to the leave referred to in sub-clause (iv), the Vice-Chancellor shall also be entitled to half-pay leave at the rate of twenty days for each completed year of service, and half-pay leave may also be availed of as commuted leave on full pay on medical certificate: Provided that when such commuted leave is availed of, twice the amount of half-pay leave shall be debited against half-pay leave due. (6) If the office of the Vice-Chancellor becomes vacant due to death, resignation or otherwise, or if he is unable to perform his duties due to ill-health or any other cause, the Pro-Vice-Chancellor shall perform the duties of the Vice-Chancellor: Provided that if the Pro-Vice-Chancellor is not available, the senior most Professor shall perform the duties of the Vice-Chancellor until a new Vice-Chancellor assumes office or the existing Vice-Chancellor resumes the duties of his office, as the case may be. **3. Powers and duties of the Vice-Chancellor.—(1)The Vice-Chancellor shall be** _ex officio_ Chairman of the Executive Council, the Academic Council and the Finance Committee and shall, in the absence of the Chancellor, preside at the Convocations held for conferring degrees and at meetings of the Court. (2) The Vice-Chancellor shall be entitled to be present at, and address, any meeting of any authority or other body of the University, but shall not be entitled to vote thereat unless he is a member of such authority or body. (3) It shall be the duty of the Vice-Chancellor to see that this Act, the Statutes, the Ordinances and the Regulations are duly observed and he shall have all the powers necessary to ensure such observance. (4) The Vice-Chancellor shall have all the powers necessary for the proper maintenance of discipline in the University and he may delegate any such powers to such person or persons as he deems fit. (5) The Vice-Chancellor shall have the power to convene or cause to be convened the meetings of the Executive Council, the Academic Council and the Finance Committee. **4. Pro-Vice-Chancellor.—(1) The Pro-Vice-Chancellor shall be appointed by the Executive Council** on the recommendation of the Vice-Chancellor: Provided that where the recommendation of the Vice-Chancellor is not accepted by the Executive Council, the matter shall be referred to the Visitor who may either appoint the person recommended by the Vice-Chancellor or ask the Vice-Chancellor to recommend another person to the Executive Council: Provided further that the Executive Council may, on the recommendation of the Vice-Chancellor, appoint a Professor to discharge the duties of a Pro-Vice-Chancellor in addition to his own duties as a Professor. (2) The term of office of a Pro-Vice-Chancellor shall be such as may be decided by the Executive Council but it shall not in any case exceed five years or until the expiration of the term of office of the Vice-Chancellor, whichever is earlier: Provided that a Pro-Vice-Chancellor whose term of office has expired shall be eligible for re appointment: Provided further that, in any case, a Pro-Vice-Chancellor shall retire on attaining the age of sixty-five years: 17 ----- Provided also that a Pro-Vice-Chancellor shall, while discharging the duties of the Vice-Chancellor under clause (6) of Statute 2, continue in office notwithstanding the expiration of his term of office as Pro-Vice-Chancellor, until the Vice-Chancellor resumes office or a new Vice-Chancellor assumes office, as the case may be. (3) The emoluments and other terms and conditions of service of a Pro-Vice-Chancellor shall be such as may be prescribed by the Ordinances. (4) The Pro-Vice-Chancellor shall assist the Vice-Chancellor in respect of such matters as may be specified by the Vice-Chancellor in this behalf, from time to time, and shall also exercise such powers and perform such duties as may be assigned or delegated to him by the Vice-Chancellor. **5. Deans of Schools.—(1) Every Dean of School shall be appointed by the Vice-Chancellor from** amongst the Professors in the School by rotation in the order of seniority for a period of three years: Provided that in case there is only one Professor or no Professor in a School, the Dean shall be appointed, for the time being, from amongst the Professor, if any, and the Readers in the School by rotation in the order of seniority: Provided further that a Dean on attaining the age of sixty-two years shall cease to hold office as such. (2) When the office of the Dean is vacant or when the Dean is, by reason of illness, absence or any other cause, unable to perform duties of his office, the duties of the office shall be performed by the senior-most Professor or Reader, as the case may be, in the School. (3) The Dean shall be the Head of the School and shall be responsible for the conduct and maintenance of the standards of teaching and research in the School and shall have such other functions as may be prescribed by the Ordinances. (4) The Dean shall have the right to be present and to speak at any meeting of the Boards of Studies or Committees of the School, as the case may be, but shall not have the right to vote thereat unless he is a member thereof. **6. The Registrar.—(1) The Registrar shall be appointed by the Executive Council on the** recommendation of a Selection Committee constituted for the purpose and shall be a whole-time salaried officer of the University. (2) He shall be appointed for a term of five years and shall be eligible for re-appointment. (3) The emoluments and other terms and conditions of service of the Registrar shall be such as may be prescribed by the Executive Council from time to time: Provided that the Registrar shall retire on attaining the age of sixty-two years: Provided further that a Registrar shall, notwithstanding his attaining the age of sixty-two years, continue in office until his successor is appointed and enters upon his office or until the expiry of a period of one year, whichever is earlier. (4) When the office of the Registrar is vacant or when the Registrar is, by reason of illness, absence or any other cause, unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) (a) The Registrar shall have power to take disciplinary action against such of the employees, excluding teachers and other academic staff, as may be specified in the order of the Executive Council and to suspend them pending inquiry, to administer warnings to them or to impose on them the penalty of censure or the withholding of increment: Provided that no such penalty shall be imposed unless the person has been given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. (b) An appeal shall lie to the Vice-Chancellor against any order of the Registrar imposing any of the penalties specified in sub-clause (a). 18 ----- (c) In a case where the inquiry discloses that a punishment beyond the power of the Registrar is called for, the Registrar shall, upon the conclusion of the inquiry, make a report to the Vice-Chancellor along with his recommendations: Provided that an appeal shall lie to the Executive Council against an order of the Vice-Chancellor imposing any penalty. (6) The Registrar shall be ex officio Secretary of the Executive Council, the Academic Council and the College Development Council, but shall not be deemed to be a member of any of these authorities and he shall be ex officio Member-Secretary of the Court. (7) It shall be the duty of the Registrar— (a) to be the custodian of the records, the common seal and such other property of the University as the Executive Council shall commit to his charge; (b) to issue all notices convening meetings of the Court, the Executive Council, the Academic Council, the College Development Council and of any Committees appointed by those authorities; (c) to keep the minutes of all the meetings of the Court, the Executive Council, the Academic Council, the College Development Council and of any Committees appointed by those authorities; (d) to conduct the official correspondence of the Court, the Executive Council, the Academic Council and the College Development Council; (e) to supply to the Visitor, copies of the agenda of the meetings of the authorities of the University as soon as they are issued and the minutes of such meetings; (f) to represent the University in suits or proceedings by or against the University, sign powers of attorney and verify pleadings or depute his representative for the purpose; and (g) to perform such other duties as may be specified in the Statutes, the Ordinances or the Regulations or as may be required from time to time by the Executive Council or the ViceChancellor. **7. The Finance Officer.—(1) The Finance Officer shall be appointed by the Executive Council on** the recommendations of a Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. (2) The Finance Officer shall be appointed for a term of five years and shall be eligible for re appointment. (3) The emoluments and other terms and conditions of service of the Finance Officer shall be such as may be prescribed by the Executive Council from time to time: Provided that the Finance Officer shall retire on attaining the age of sixty-two years: Provided further that the Finance Officer shall, notwithstanding his attaining the age of sixty-two years, continue in office until his successor is appointed and enters upon his office or until the expiry of a period of one year, whichever is earlier. (4) When the office of the Finance Officer is vacant or when the Finance Officer is, by reason of illness, absence or any other cause, unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) The Finance Officer shall be _ex officio Secretary of the Finance Committee, but shall not be_ deemed to be a member of such Committee. (6) The Finance Officer shall— (a) exercise general supervision over the funds of the University and shall advise it as regards its financial policy; and (b) perform such other financial functions as may be assigned to him by the Executive Council or as may be prescribed by the Statutes or the Ordinances. 19 ----- (7) Subject to the control of the Executive Council, the Finance Officer shall— (a) hold and manage the property and investments of the University including trust and endowed property; (b) ensure that the limits fixed by the Executive Council for recurring and non-recurring expenditure for a year are not exceeded and that all moneys are expended on the purpose for which they are granted or allotted; (c) be responsible for the preparation of annual accounts and the budget of the University and for their presentation to the Executive Council; (d) keep a constant watch on the state of the cash and bank balances and on the state of investments; (e) watch the progress of the collection of revenue and advise on the methods of collection employed; (f) ensure that the registers of buildings, land, furniture and equipment are maintained up-to-date and that stock-checking is conducted, of equipment and other consumable materials in all offices, Departments, University, Institutes, Centres and Specialised Laboratories; (g) bring to the notice of the Vice-Chancellor unauthorised expenditure and other financial irregularities and suggest disciplinary action against persons at fault; and (h) call for from any office, Department, Centre, Laboratory, College or Institution maintained by the University any information or returns that he may consider necessary for the performance of his duties. (8) Any receipt given by the Finance Officer or the person or persons duly authorised in this behalf by the Executive Council for any money payable to the University shall be sufficient discharge for payment of such money. **8. The Controller of Examinations.—(1) The Controller of Examinations shall be appointed by the** Executive Council on the recommendations of a Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. (2) The Controller of Examinations shall be appointed for a term of five years and shall be eligible for re-appointment. (3) The emoluments and other terms and conditions of service of the Controller of Examinations shall be such as may be prescribed by the Executive Council from time to time: Provided that the Controller of Examinations shall retire on attaining the age of sixty-two years: Provided further that the Controller of Examinations shall, notwithstanding his attaining the age of sixty-two years, continue in office until his successor is appointed and enters upon his office or until the expiry of a period of one year, whichever is earlier. (4) When the office of the Controller of Examinations is vacant or when the Controller of Examinations is, by reason of illness, absence or any other cause, unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) The Controller of Examinations shall arrange for and superintend the examinations of the University in the manner prescribed by the Ordinances. **9. The Librarian.—(1) The Librarian shall be appointed by the Executive Council on the** recommendations of the Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. 20 ----- (2) The Librarian shall exercise such powers and perform such duties as may be assigned to him by the Executive Council. **10. Meetings of the Court.—(1) An annual meeting of the Court shall be held on a date to be fixed** by the Executive Council unless some other date has been fixed by the Court in respect of any year. (2) At an annual meeting of the Court, a report on the working of the University during the previous year, together with a statement of the receipts and expenditure, the balance sheet as audited, and the financial estimates for the next year shall be presented. (3) A copy of the statement of receipts and expenditure, the balance sheet and the financial estimates referred to in clause (2) shall be sent to every member of the Court at least seven days before the date of the annual meeting. (4) Special meetings of the Court may be convened by the Executive Council or the Vice-Chancellor or if there is no Vice-Chancellor, the Pro-Vice-Chancellor or if there is no Pro-Vice-Chancellor, by the Registrar. (5) Eleven members of the Court shall form a quorum for a meeting of the Court. **11. Quorum for meeting of the Executive Council.—Seven members of the Executive Council** shall form a quorum for a meeting of the Executive Council. **12. Powers and functions of the Executive Council.—(1) The Executive Council shall have the** power of management and administration of the revenues and property of the University and the conduct of all administrative affairs of the University not otherwise provided for. (2) Subject to the provisions of this Ordinance, the Statutes and the Ordinances, the Executive Council shall, in addition to all other powers vested in it, have the following powers, namely:— (i) to create teaching and other academic posts, to determine the number and emoluments of such posts and to define the duties and conditions of service of Professors, Readers, Lecturers and other academic staff: Provided that no action shall be taken by the Executive Council in respect of the number and qualifications of teachers and other academic staff otherwise than after consideration of the recommendations of the Academic Council; (ii) to appoint such Professors, Readers, Lecturers and other academic staff, as may be necessary, on the recommendation of the Selection Committee constituted for the purpose and to fill up temporary vacancies therein; (iii) to recognise persons as University recognised teachers in the manner prescribed by the Ordinances; (iv) to create administrative, ministerial and other necessary posts (including Chairs) and to make appointments thereto in the manner prescribed by the Ordinances; (v) to grant leave of absence to any officer of the University other than the Chancellor and the Vice-Chancellor, and to make necessary arrangements for the discharge of the functions of such officer during his absence; (vi) to regulate and enforce discipline among employees in accordance with the Statutes and the Ordinances; (vii) to manage and regulate the finances, accounts, investments, property, business and all other administrative affairs of the University and for that purpose to appoint such agents as it may think fit; (viii) to fix limits on the total recurring and the total non-recurring expenditure for a year on the recommendation of the Finance Committee; (ix) to invest any money belonging to the University, including any unapplied income, in such stocks, funds, share or securities, from time to time as it may think fit or in the purchase of immovable property in India, with the like powers of varying such investment from time to time; 21 ----- (x) to transfer or accept transfers of any movable or immovable property on behalf of the University; (xi) to provide buildings, premises, furniture and apparatus and other means needed for carrying on the work of the University; _(xii) to enter into, vary, carry out and cancel contracts on behalf of the University;_ (xiii) to entertain, adjudicate upon, and if thought fit, to redress any grievances of the employees and students of the University who may, for any reason, feel aggrieved; (xiv) to appoint examiners and moderators and, if necessary, to remove them, and to fix their fees, emoluments and travelling and other allowances, after consulting the Academic Council; (xv) to select a common seal for the University and provide for the custody and use of such seal; (xvi) to make such special arrangements as may be necessary for the residence and discipline of women students; (xvii) to institute fellowships, scholarships, studentships, medals and prizes; (xviii) to provide for the appointment of Visiting Professors, Emeritus Professors, Consultants and Scholars and determine the terms and conditions of such appointments; and (xix) to exercise such other powers and perform such other duties as may be conferred or imposed on it by the Ordinances or the Statutes. **13. Quorum of meeting of the Academic Council.—Nine members of the Academic Council shall** form a quorum for a meeting of the Academic Council. **14. Powers and functions of the Academic Council.—Subject to the provisions of this Act, the** Statutes and the Ordinances, the Academic Council shall, in addition to all other powers vested in it, have the following powers, namely:— (a) to exercise general supervision over the academic policies of the University and to give directions regarding methods of instruction, co-ordination of teaching among the Colleges and the Institutions, evaluation of research and improvement of academic standards; (b) to bring about and promote inter-School co-ordination and to establish or appoint such committees or boards as may be deemed necessary for the purpose; (c) to consider matters of general academic interest either on its own initiative, or on a reference by a School or the Executive Council, and to take appropriate action thereon; and (d) to frame such Regulations and rules consistent with the Statutes and the Ordinances regarding the academic functioning of the University, discipline, residence, admissions, award of fellowships and studentships, fees, concessions, corporate life and attendance. **15. Schools of studies and Departments.— (1) The University shall have such Schools of Studies as** may be specified in the Statutes. (2) Every School shall have a School Board and the members of the first School Board shall be nominated by the Executive Council for a period of three years. (3) The composition, powers and functions of a School Board shall be prescribed by the Ordinances. (4) The conduct of the meetings of a School Board and the quorum required for such meetings shall be prescribed by the Ordinances. (5) (a) Every School shall consist of such Departments as may be assigned to it by the Ordinances: Provided that the Executive Council may, on the recommendation of the Academic Council, establish Centres of Studies to which may be assigned such teachers of the University as the Executive Council may consider necessary. 22 ----- (b) Each Department shall consist of the following members, namely:— (i) Teachers of the Department; (ii) Persons conducting research in the Department; (iii) Dean of the School; (iv) Honorary Professors, if any, attached to the Department; and (v) such other persons as may be members of the Department in accordance with the provisions of the Ordinances. **16. Board of Studies.—(1) Each Department shall have a Board of Studies.** (2) The constitution of the Board of Studies and the term of office of its members shall be prescribed by the Ordinances. (3) Subject to the overall control and supervision of the Academic Council, the functions of a Board of Studies shall be to approve subjects for research for various degrees and other requirements of research degrees and to recommend to the concerned School Board in the manner prescribed by the Ordinances— (a) courses of studies and appointment of examiners for courses, but excluding research degrees; (b) appointment of supervisors for research; and (c) measures for the improvement of the standard of teaching and research: Provided that the above functions of a Board of Studies shall, during the period of three years immediately after the commencement of the Act, be performed by the Department. **17. College maintained by University.—(1) The Manipur Institute of Technology, Imphal shall be** maintained by the University. (2) The organisation, conditions of maintenance and management of the College in clause (1) shall be prescribed by the Ordinances. **18. The Finance Committee.—(1) The Finance Committee shall consist of the following members,** namely:— (i) the Vice-Chancellor; (ii) the Pro-Vice-Chancellor; (iii) three persons to be nominated by the Executive Council, out of whom at least one shall be a member of the Executive Council; and (iv) three persons to be nominated by the Visitor. (2) Five members of the Finance Committee shall form a quorum for a meeting of the Finance Committee. (3) All the members of the Finance Committee, other than ex officio members, shall hold office for a term of three years. (4) A member of the Finance Committee shall have the right to record a minute of dissent if he does not agree with any decision of the Finance Committee. (5) The Finance Committee shall meet at least thrice every year to examine the accounts and to scrutinise proposals for expenditure. (6) All proposals relating to creation of posts, and those items which have not been included in the Budget, shall be examined by the Finance Committee before they are considered by the Executive Council. (7) The annual accounts and the financial estimates of the University prepared by the Finance Officer shall be laid before the Finance Committee for consideration and comments and thereafter submitted to the Executive Council for approval. 23 ----- (8) The Finance Committee shall recommend limits for the total recurring expenditure and the total non-recurring expenditure for the year, based on the income and resources of the University (which, in the case of productive works, may include the proceeds of loans). **19. Selection Committees.—(1) There shall be Selection Committees for making recommendations** to the Executive Council for appointment to the posts of Professor, Reader, Lecturer, Registrar, Finance Officer, Librarian and Principals of Colleges and Institutions maintained by the University. (2) The Selection Committee for appointment to the posts specified in Column 1 of the Table below shall consist of the Vice-Chancellor, a nominee of the Visitor and the persons specified in the corresponding entry in Column 2 of the said Table: TABLE 1 2 Professor (i) The Dean of the School. (ii) The Head of the Department. (iii) Three persons not in the service of the University, nominated by the Executive Council, out of a panel of names recommended by the Academic Council for their special knowledge of, or interest in, the subject with which the Professor will be concerned. Reader/Lecturer (i) The Head of the Department. (ii) One Professor nominated by the Vice-Chancellor. (iii) Two persons not in the service of the University, nominated by the Executive Council, out of a panel of names recommended by the Academic Council for their special knowledge of, or interest in, the subject with which the Reader/Lecturer will be concerned. Registrar/ Finance Officer (i) Two members of the Executive Council nominated by it. (ii) One person not in the service of the University nominated by the Executive Council. Librarian (i) Two persons not in the service of the University who have special knowledge of the subject of the Library Science/Library Administration nominated by the Executive Council. (ii) One person not in the service of the University nominated by the Executive Council. Principal of College or Institution maintained by the University. Three persons not in the service of the University of whom two shall be nominated by the Executive Council and one by the Academic Council for their special knowledge of, or interest in, a subject in which instruction is being provided by the College or Institution. _Explanation 1.—Where the appointment is being made for an inter-disciplinary project, the head of_ the project shall be deemed to be the Head of the Department concerned. _Explanation_ 2.—The Professor to be nominated by the Vice-Chancellor shall be a Professor concerned with the speciality for which the selection is being made and the Vice-Chancellor shall consult the Head of the Department and the Dean of School before nominating the Professor. (3) The Vice-Chancellor, or in his absence the Pro-Vice-Chancellor, shall convene and preside at the meeting of the Selection Committee: 24 ----- Provided that the meeting of the Selection Committee shall be fixed after prior consultation with, and subject to the convenience of Visitor's nominee and the experts nominated by the Executive Council: Provided further that the proceedings of the Selection Committee shall not be valid unless,— (a) where the number of Visitor's nominee and the persons nominated by the Executive Council is four in all, at least three of them attend the meeting; and (b) where the number of Visitor's nominee and the persons nominated by the Executive Council is three in all, at least two of them attend the meeting. (4) The procedure to be followed by the Selection Committee shall be laid down in the Ordinances. (5) If the Executive Council is unable to accept the recommendations made by the Selection Committee, it shall record its reasons and submit the case to the Visitor for final orders. (6) Appointments to temporary posts shall be made in the manner indicated below— (i) If the temporary vacancy is for duration longer than one academic session, it shall be filled on the advice of the Selection Committee in accordance with the procedure indicated in the foregoing clauses: Provided that if the Vice-Chancellor is satisfied that in the interests of work it is necessary to fill the vacancy, the appointment may be made on a purely temporary basis on the advice of a local Selection Committee referred to in sub-clause (ii) for a period not exceeding six months. (ii) If the temporary vacancy is for a period less than a year, an appointment to such vacancy shall be made on the recommendation of a local Selection Committee consisting of the Dean of the School concerned, the Head of the Department and a nominee of the Vice-Chancellor: Provided that if the same person holds the offices of the Dean and the Head of the Department, the Selection Committee may contain two nominees of the Vice-Chancellor: Provided further that in the case of sudden casual vacancies of teaching posts caused by death or any other reason, the Dean may, in consultation with the Head of the Department concerned, make a temporary appointment for a month and report to the Vice-Chancellor and the Registrar about such appointment. (iii) No teacher appointed temporarily shall, if he is not recommended by a regular Selection Committee for appointment under the Statutes, be continued in service on such temporary employment, unless he is subsequently selected by a local Selection Committee or a regular Selection Committee, for a temporary or permanent appointment, as the case may be. **20. Special mode of appointment.—(1) Notwithstanding anything contained in Statute 19, the** Executive Council may invite a person of high academic distinction and professional attainments to accept a post of Professor or any other equivalent academic post in the University on such terms and conditions as it deems fit and on the person agreeing to do so appoint him to the post. (2) The Executive Council may appoint a teacher or any other academic staff working in any other University or organisation for undertaking a joint project in accordance with the manner laid down in the Ordinances. **21. Appointment for a fixed tenure.—The Executive Council may appoint a person selected in** accordance with the procedure laid down in Statute 19 for a fixed tenure on such terms and conditions as it deems fit. 25 ----- **22. Recognised teachers.—(1) The qualifications of recognised teachers shall be such as may be** prescribed by the Ordinances. (2) All applications for the recognition of teachers shall be made in such manner as may be laid down by the Ordinances. (3) No teacher shall be recognised as a teacher except on the recommendation of a Selection Committee constituted for the purpose in the manner laid down in the Ordinances. (4) The period of recognition of a teacher shall be determined by the Ordinances made in that behalf. (5) The Academic Council may, by a special resolution passed by a majority of not less than two-thirds of the members present and voting, withdraw recognition from a teacher: Provided that no such resolution shall be passed until notice in writing has been given to the person concerned calling upon him to show cause, within such time as may be specified in the notice, why such resolution should not be passed and until his objections, if any, and any evidence he may produce in support of them have been considered by the Academic Council. **23. Committees.—(1) An authority of the University may appoint as many standing or special** Committees as it may deem fit, and may appoint to such Committees persons who are not members of such authority. (2) A Committee appointed under clause (1) may deal with any subject delegated to it subject to subsequent confirmation by the authority appointing it. **24. Terms and conditions of service and code of conduct of teachers, etc.—(1) All the teachers** and other academic staff of the University shall, in the absence of any agreement to the contrary, be governed by the terms and conditions of service and code of conduct as are specified in the Statutes, the Ordinances and the Regulations. (2) The emoluments of members of the academic staff shall be such as may be prescribed by the Ordinances. (3) Every teacher and member of the academic staff of the University shall be appointed on a written contract, the form of which shall be prescribed by the Ordinances. (4) A copy of every contract referred to in clause (3) shall be deposited with the Registrar. **25. Terms and conditions of service and code of conduct of other employees.—(1) All the** employees of the University, other than the teachers and other academic staff shall, in the absence of any contract to the contrary, be governed by the terms and conditions of service and code of conduct as are specified in the Statutes, the Ordinances and the Regulations. (2) The manner of appointment and emoluments of employees, other than the teachers and other academic staff, shall be such as may be prescribed by the Ordinances. **26. Seniority list.—(1) Whenever, in accordance with the Statutes, any person is to hold an office or** be a member of an authority of the University by rotation according to seniority, such seniority shall be determined according to the length of continuous service of such person in his grade and in accordance with such other principles as the Executive Council may, from time to time, prescribe. (2) It shall be the duty of the Registrar to prepare and maintain in respect of each class of persons to whom the provisions of these Statutes apply, a complete and up-to-date seniority list in accordance with the provisions of clause (1). 26 ----- (3) If two or more persons have equal length of continuous service in a particular grade or the relative seniority of any person or persons is otherwise in doubt, the Registrar may, on his own motion and shall, at the request of any such person, submit the matter to the Executive Council whose decision thereon shall be final. **27. Removal of employees of the University.—(1) Where there is an allegation of misconduct** against a teacher, a member of the academic staff or other employee of the University, the ViceChancellor, in the case of the teacher or a member of the academic staff, and the authority competent to appoint (hereinafter referred to as the appointing authority) in the case of other employee may, by order in writing, place such teacher, member of the academic staff or other employee, as the case may be, under suspension and shall forthwith report to the Executive Council the circumstances in which the order was made: Provided that the Executive Council may, if it is of the opinion, that the circumstances of the case do not warrant the suspension of the teacher or a member of the academic staff, revoke such order. (2) Notwithstanding anything contained in the terms of the contract of appointment or of any other terms and conditions of service of the employees, the Executive Council in respect of teachers and other academic staff, and the appointing authority in respect of other employees, shall have the power to remove a teacher or a member of the academic staff or other employee, as the case may be, on grounds of misconduct. (3) Save as aforesaid, the Executive Council, or as the case may be, the appointing authority, shall not be entitled to remove any teacher, member of the academic staff or other employee except for a good cause and after giving three months' notice or on payment of three months' salary in lieu thereof. (4) No teacher, member of the academic staff or other employee shall be removed under clause (2) or clause (3) unless he has been given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. (5) The removal of a teacher, member of the academic staff or other employee shall take effect from the date on which the order of removal is made: Provided that where the teacher, member of the academic staff or other employee is under suspension at the time of his removal, such removal shall take effect from the date on which he was placed under suspension. (6) Notwithstanding anything contained in the foregoing provisions of this Statute, a teacher, member of the academic staff or other employee may resign— (a) if he is a permanent employee, only after giving three months' notice in writing to the Executive Council or the appointing authority, as the case may be, or by paying three months' salary in lieu thereof; (b) if he is not a permanent employee, only after giving one month's notice in writing to the Executive Council or, as the case may be, the appointing authority or by paying one month's salary in lieu thereof: Provided that such resignation shall take effect only on the date on which the resignation is accepted by the Executive Council or the appointing authority as the case may be. **28. Honorary degrees.—(1) The Executive Council may, on the recommendation of the Academic** Council and by a resolution passed by a majority of not less than two-thirds of the members present and voting, make proposals to the Visitor for the conferment of honorary degrees: 27 ----- Provided that in case of emergency, the Executive Council may, on its own motion, make such proposals. (2) The Executive Council may, by a resolution passed by a majority of not less than two-thirds of the members present and voting, withdraw, with the previous sanction of the Visitor, any honorary degree conferred by the University. **29. Withdrawal of degrees, etc.—The Executive Council may, by a special resolution passed by a** majority of not less than two-thirds of the members present and voting, withdraw any degree or academic distinction conferred on, or any certificate or diploma granted to, any person by the University for good and sufficient cause: Provided that no such resolution shall be passed until a notice in writing has been given to that person calling upon him to show cause within such time as may be specified in the notice why such a resolution should not be passed and until his objections, if any, and any evidence he may produce in support of them, have been considered by the Executive Council. **30. Maintenance of discipline amongst students of University.—(1) All powers relating to the** maintenance of discipline and disciplinary action in relation to the students of the University shall vest in the Vice-Chancellor. (2) There shall be a Proctor of the University to assist the Vice-Chancellor in the exercise of the powers referred to in clause (1), who shall be appointed by the Executive Council from amongst the Professors and Readers in the manner prescribed by the Ordinances. (3) The Vice-Chancellor may delegate all or any of the powers referred to in clause (1), as he deems proper, to the Proctor and to such other officers as he may specify in this behalf. (4) Without prejudice to the generality of his powers relating to the maintenance of discipline and taking such action, as may seem to him appropriate for the maintenance of discipline, the Vice-Chancellor may, in exercise of such powers, by order, direct that any student or students be expelled or rusticated, for a specified period, or be not admitted to a course or courses of study in a College, Institution or Department or a School of the University for a stated period, or be punished with fine for an amount to be specified in the order, or be debarred from taking an examination or examinations conducted by the University, College, Institution or Department or a School for one or more years, or that the results of the student or students concerned in the examination or examinations in which he or they have appeared be cancelled. (5) The Principals of College, Institutions, Deans of Schools of Studies and Heads of teaching Departments in the University shall have the authority to exercise all such disciplinary powers over the students in their respective Colleges, Institutions, Schools and teaching Departments in the University, as may be necessary for the proper conduct of such Colleges, Institutions, Schools and teaching Departments. (6) Without prejudice to the powers of the Vice-Chancellor and the Principal and other persons specified in clause (5), detailed rules of discipline and proper conduct shall be made by the University. The Principals of College, Institutions, Deans of Schools of Studies and Heads of teaching Departments in the University may also make such supplementary rules as they deem necessary for the purposes stated therein. (7) At the time of admission, every student shall be required to sign a declaration to the effect that he submits himself to the disciplinary jurisdiction of the Vice-Chancellor and other authorities of the University. 28 ----- **31. Maintenance of discipline among Students of Colleges, etc.—All powers relating to discipline** and disciplinary action in relation to students of a College or an Institution not maintained by the University, shall vest in the Principal of the College or Institution, as the case may be, in accordance with the procedure prescribed by the Ordinances. **32. Admission of Colleges, etc., to the privileges of University.—(1) Colleges and other Institutions** situated within the jurisdiction of the University may be admitted to such privileges of the University as the Executive Council and the College Development Council may decide on the following conditions, namely:— (a) every such College or Institution shall have a regularly constituted Governing Body, consisting of not more than fifteen persons approved by the Executive Council and including among others, two teachers of the University to be nominated by the Executive Council and three representatives of the teaching staff of whom the Principal of the College or Institution shall be one. The procedure for appointment of members of the Governing Body and other matters affecting the management of a College or an Institution shall be prescribed by the Ordinances: Provided that the said condition shall not apply in the case of Colleges and Institutions maintained by Government which shall, however, have an Advisory Committee consisting of not more than fifteen persons which shall consist of among others, three teachers including the Principal of the College or Institution, and two teachers of the University nominated by the Executive Council; (b) every such College or Institution shall satisfy the Executive Council and the College Development Council on the following matters, namely:— (i) the suitability and adequacy of its accommodation and equipment for teaching; (ii) the qualifications and adequacy of its teaching staff and the conditions of their service; (iii) the arrangements for the residence, welfare, discipline and supervision of students; (iv) the adequacy of financial provision made for the continued maintenance of the College or Institution; and (v) such other matters as are essential for the maintenance of the standards of University education. (c) no College or Institution shall be admitted to any privileges of the University except on the recommendation of the Academic Council made after considering the report of a Committee of Inspection appointed for the purpose by the Academic Council; (d) colleges and Institutions desirous of admission to any privileges of the University shall be required to intimate their intension to do so in writing so as to reach the Registrar not later than the 15th August, preceding the year from which permission applied for is to have effect; (e) a College or an Institution shall not, without the previous permission of the Executive Council, College Development Council and the Academic Council, suspend instruction in any subject or course of study which it is authorized to teach and teaches. (2) Appointment to the teaching staff and Principal of Colleges or Institutions admitted to the privileges of the University shall be made in the manner prescribed by the Ordinances: Provided that nothing in this clause shall apply to Colleges and Institutions maintained by Government. 29 ----- (3) The service conditions of the administrative and other non-academic staff of every College or Institution referred to in clause (2) shall be such as may be laid down in the Ordinances: Provided that nothing in this clause shall apply to Colleges and Institutions maintained by Government. (4) Every College or Institution admitted to the privileges of the University shall be inspected at least once in every two academic years by a Committee appointed by the Academic Council, and the report of the Committee shall be submitted to the Academic Council, which shall forward the same to the College Development Council and Executive Council with such recommendations as it may deem fit to make. (5) The College Development Council and the Executive Council, after considering the report and the recommendations, if any, of the Academic Council, shall forward a copy of the report to the Governing Body of the College or Institution with such remarks, if any, as they may deem fit for suitable action. (6) The Executive Council may, after consulting the College Development Council and Academic Council, withdraw any privileges granted to a College or an Institution, at any time it considers that the College or Institution does not satisfy any of the conditions on the fulfillment of which the College or Institution was admitted to such privileges: Provided that before any privileges are so withdrawn, the Governing Body of the College or Institution concerned shall be given an opportunity to represent to the Executive Council why such action should not be taken. (7) Subject to the conditions set forth in clause (1), the Ordinances may prescribe— (i) such other conditions as may be considered necessary; and (ii) the procedure for the admission of Colleges and Institutions to the privileges of the University and for the withdrawal of those privileges. **33. Convocations.—Convocations of the University for the conferring of degrees or for other** purposes shall be held in such manner as may be prescribed by the Ordinances. **34. Acting Chairman of meetings.—Where no provision is made for a President or Chairman to** preside over a meeting of any authority of the University or any Committee of such authority or when the President or Chairman so provided for is absent, the members present shall elect one from among themselves to preside at such meeting. **35. Resignation.—Any member, other than an** _ex officio member of the Court, the Executive_ Council, the Academic Council or any other authority of the University or any Committee of such authority may resign by letter addressed to the Registrar and the resignation shall take effect as soon as such letter is received by the Registrar. **36. Disqualification.—(1) A person shall be disqualified for being chosen as, and for being, a** member of any of the authorities of the University— (i) if he is of unsound mind; (ii) if he is an undischarged insolvent; (iii) if he has been convicted by a court of law of an offence involving moral turpitude and sentenced in respect thereof to imprisonment for not less than six months. (2) If any question arises as to whether a person is or had been subjected to any of the disqualifications mentioned in clause (1), the question shall be referred to the Visitor and his decision shall be final and no suit or other proceeding shall lie in any civil court against such decision. 30 ----- **37. Residence condition for membership and office.—Notwithstanding anything contained in the** Statutes, a person who is not ordinarily resident in India shall not be eligible to be an officer of the University or a member of any authority of the University. **38. Membership of authorities by virtue of membership of other bodies.—Notwithstanding** anything contained in the Statutes, a person who holds any post in the University or is a member of any authority or body of the University in his capacity as a member of a particular authority or body or as the holder of a particular appointment shall hold such office or membership only for so long as he continues to be a member of that particular authority or body or the holder of that particular appointment, as the case may be. **39. Alumni Association.—(1) There shall be an Alumni Association for the University.** (2) The subscription for membership of the Alumni Association shall be prescribed by the Ordinances. (3) No member of the Alumni Association shall be entitled to vote or stand for election unless he has been a member of the Association for at least one year prior to the date of election and is a degree holder of the University of at least five years standing: Provided that the condition relating to the completion of one year's membership shall not apply in the case of the first election. **40. Students Council.—(1) There shall be constituted in the University, a Students' Council for every** academic year, consisting of— (a) the Dean of Students' Welfare who shall be the Chairman of the Students' Council; (b) all students who have won prizes in the previous academic year in the field of studies, fine arts, sports and extension work; (c) twenty students to be nominated by the Academic Council on the basis of merit in studies, sports, activities and all round development of personality: Provided that any student of the University shall have the right to bring up any matter concerning the University before the Students' Council if so permitted by the Chairman, and he shall have the right to participate in the discussions at any meeting when the matter is taken up for consideration. (2) The functions of the Students' Council shall be to make suggestions to the appropriate authorities of the University in regard to the programmes of studies, students' welfare and other matters of importance, in regard to the working of the University in general and such suggestions shall be made on the basis of consensus of opinion. (3) The Students' Council shall meet at least once in an academic year preferably in the beginning of that year. **41. Ordinances, how made.—(1) The first Ordinances made under sub-section (2) of section 31 may** be amended, repealed or added to at any time by the Executive Council in the manner specified in the following sub-sections. (2) No Ordinance in respect of the matters enumerated in sub-section (1) of section 31 shall be made by the Executive Council unless a draft of such Ordinance has been proposed by the Academic Council. (3) The Executive Council shall not have power to amend any draft of any Ordinance proposed by the Academic Council under clause (2), but may reject the proposal or return the draft to the Academic 31 ----- Council for re-consideration, either in whole or in part, together with any amendment which the Executive Council may suggest. (4) Where the Executive Council has rejected or returned the draft of an Ordinance proposed by the Academic Council, the Academic Council may consider the question afresh and in case the original draft is reaffirmed by a majority of not less than two-thirds of the members present and voting and more than half the total number of members of the Academic Council, the draft may be sent back to the Executive Council which shall either adopt it or refer it to the Visitor whose decision shall be final. (5) Every Ordinance made by the Executive Council shall come into effect immediately. (6) Every Ordinance made by the Executive Council shall be submitted to the Visitor within two weeks from the date of its adoption. (7) The Visitor shall have the power to direct the University to suspend the operation of any Ordinance. (8) The Visitor shall inform the Executive Council about his objection to the Ordinance referred to in clause (7) and may, after receiving the comments of the University, either withdraw the order suspending the Ordinance or disallow the Ordinance, and his decision shall be final. **42. Regulations.—(1) The authorities of the University may make Regulations consistent with the** Act, the Statutes and the Ordinances for the following matters, namely:— (i) laying down the procedure to be observed at their meetings and the number of members required to form a quorum; (ii) providing for all matters which are required by the Ordinance, the Statutes or the Ordinance to be prescribed by Regulations; (iii) providing for all other matters solely concerning such authorities or committees appointed by them and not provided for by the Ordinance, the Statutes or the Ordinances. (2) Every authority of the University shall make Regulations providing for the giving of notice to the members of such authority of the dates of meeting and of the business to be considered at meetings and for the keeping of a record of the proceedings of meetings. (3) The Executive Council may direct the amendment in such manner as it may specify of any Regulation made under the Statutes or the annulment of any such Regulation. **43. Delegation of powers.—Subject to the provisions of the Act and the Statutes, any officer or** authority of the University may delegate his or its powers to any other officer or authority or person under his or its respective control and subject to the condition that overall responsibility for the exercise of the powers so delegated shall continue to vest in the officer or authority delegating such powers. 32 -----

11-Jan-2006

01

The Andhra Pradesh Legislative Council Act, 2005

https://www.indiacode.nic.in/bitstream/123456789/1732/1/A2006-01.pdf

central

# THE ANDHRA PRADESH LEGISLATIVE COUNCIL ACT, 2005 __________ ARRANGEMENT OF SECTIONS _______ SECTIONS 1. Short title. 2. Definitions. 3. Creation of Legislative Council for Andhra Pradesh. 4. Amendment of Third Schedule and Fourth Schedule of Act 43 of 1950. 5. Amendment of section 15A of Act 43 of 1951. 1 ----- # THE ANDHRA PRADESH LEGISLATIVE COUNCIL ACT, 2005 ACT NO. 1 OF 2006 [11th January, 2006.] # An Act to provide for the creation of Legislative Council for the State of Andhra Pradesh and for matters supplemental, incidental and consequential thereto. BE it enacted by Parliament in the Fifty-sixth Year of the Republic of India as follows:— **1. Short title.—This Act may be called the Andhra Pradesh Legislative Council Act, 2005.** **2. Definitions.—In this Act, unless the context otherwise requires, each of the words and expressions** used herein and not defined but defined in the Representation of the People Act, 1950 (43 of 1950), shall have the same meaning as in that Act. **3. Creation of Legislative Council for Andhra Pradesh.—(1) As from such date[1]as the President** may by order appoint, there shall be a Legislative Council for the State of Andhra Pradesh; and as from that date, in sub-clause (a) of clause (1) of article 168, after the words “States of”, the words “Andhra Pradesh,”, shall be inserted. (2) In the said Council, there shall be 90 seats of which— (a) the numbers to be filled by persons elected by the electorates referred to in sub-clauses (a), (b) and (c) of clause (3) of article 171 shall be 31, 8 and 8 respectively; (b) the number to be filled by persons elected by the members of the Legislative Assembly of Andhra Pradesh in accordance with the provisions of sub-clause (d) of the said clause shall be 31; and (c) the number to be filled by persons nominated by the Governor of Andhra Pradesh in accordance with the provisions of sub-clause (e) of that clause shall be 12. (3) As soon as may be after the commencement of this Act, the President, after consultation with the Election Commission, shall, by order, determine— (a) the constituencies into which the State of Andhra Pradesh shall be divided for the purpose of elections to the said Council under each of the sub-clauses (a), (b) and (c) of clause (3) of article 171; (b) the extent of each constituency; and (c) the number of seats to be allotted to each constituency. (4) As soon as may be after such determination, steps shall be taken to constitute the said Council in accordance with the provisions of this Act, the Representation of the People Act, 1950 (43 of 1950) and the Representation of the People Act, 1951 (43 of 1951). **4. Amendment of Third Schedule and Fourth Schedule of Act 43 of 1950.—In the Representation** of the People Act, 1950,— (a) in the Third Schedule, before entry No. 2 relating to Bihar, the following entry shall be inserted, namely:— “1. Andhra Pradesh 90 31 8 8 31 12”; 1. 30th March, 2007, (Legislative Council for Andhra Pradesh come to existence), vide notification No. G.S.R. 262(E), dated 30th March, 2007, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 2 ----- (b) in the Fourth Schedule, before the heading “BIHAR”, the following heading and entries shall be inserted, namely:— “ANDHRA PRADESH 1. Municipal Corporations. 2. Municipalities. 3. Nagar Panchayats. 4. Cantonment Boards. 5. ZilaPraja Parishads. 6. Mandal Praja Parishads.”. **5. Amendment of section 15A of Act 43 of 1951.—In section 15A of the Representation of the** People Act, 1951, for the words and figures “under the Legislative Councils Act, 1957” (37of 1957), the words and figures “under the Andhra Pradesh Legislative Council Act, 2005” shall be substituted. 3 -----

20-Jan-2006

04

The Commissions for Protection of Child Rights Act, 2005

https://www.indiacode.nic.in/bitstream/123456789/2056/1/200604.pdf

central

# THE COMMISSIONS FOR PROTECTION OF CHILD RIGHTS ACT, 2005 _________________ # ARRANGEMENT OF SECTIONS _______________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II THE NATIONAL COMMISSIONFOR PROTECTONOF CHILD RIGHTS 3. Constitution of National Commission for Protection of Child Rights. 4. Appointment of Chairperson and Members. 5. Term of office and conditions of service of Chairperson and Members. 6. Salary and allowances of Chairperson and Members. 7. Removal from office. 8. Vacation of office by Chairperson or Member. 9. Vacancies, etc., not to invalidate proceedings of Commission. 10. Procedure for transaction of business. 11. Member-Secretary, officers and other employees of Commission. 12. Salaries and allowances to be paid out of grants. CHAPTER III FUNCTIONSAND POWERS OF THE COMMISSION 13. Functions of Commission. 14. Powers relating to inquiries. 15. Steps after inquiry. 16. Annual and special reports of Commission. CHAPTER IV STATE COMMISSIONFOR PROTECTION OF CHILD RIGHTS 17. Constitution of State Commission for Protection of Child Rights. 18. Appointment of Chairperson and other Members. 19. Term of office and conditions of service of Chairperson and Members. 20. Salary and allowances and Chairperson and Members. 21. Secretary, officers and other employees of the State Commission. 22. Salaries and allowances to be paid out of grants. 1 ----- SECTIONS 23. Annual and special reports of State Commission. 24. Application of certain provisions relating to National Commission for Protection of Child Rights to State Commissions. CHAPTER V CHILDRENS’S COURTS 25. Children’s Courts. 26. Special Public Prosecutor. CHAPTER VI FINANCE, ACCOUNTSAND AUDIT 27. Grants by Central Government. 28. Grants by State Governments. 29. Accounts and audit of Commission. 30. Accounts and audit of State Commission. CHAPTER VII MISCELLANEOUS 31. Protection of action taken in good faith. 32. Chairperson, Members and other officers to be public servant. 33. Directions by Central Government. 34. Returns or information. 35. Power of Central Government to make rules. 36. Power of State Government to make rules. 37. Power to remove difficulties. 2 ----- # THE COMMISSIONS FOR PROTECTION OF CHILDRIGHTS ACT, 2005 ACT NO. 4 OF 2006 [20th January, 2006.] # An Act to provide for the constitution of a National Commission and State Commissions for Protection of Child Rights and Children's Courts for providing speedy trial of offences against children or of violation of child rights and for matters connected therewith or incidental thereto. WHEREAS India participated in the United Nations (UN) General Assembly Summit in1990, which adopted a Declaration on Survival, Protection and Development of Children; AND WHEREAS India has also acceded to the Convention on the Rights of the Child (CRC) on the 11th December, 1992; AND WHEREAS CRC is an international treaty that makes it incumbent upon the signatory States to take all necessary steps to protect children's rights enumerated in the Convention; AND WHEREAS in order to ensure protection of rights of children one of the recent initiatives that the Government have taken for Children is the adoption of National Charter for Children, 2003; AND WHEREAS the UN General Assembly Special Session on Children held in May, 2002 adopted an Outcome Document titled “A World Fit for Children” containing the goals, objectives, strategies and activities to be undertaken by the member countries for the current decade; AND WHEREAS it is expedient to enact a law relating to children to give effect to the policies adopted by the Government in this regard, standards prescribed in the CRC, and all other relevant international instruments; BE it enacted by Parliament in the Fifty-sixth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Commissions for** Protection of Child Rights Act, 2005. (2) It extends to the whole of India [1]***. (3) It shall come into force on such date[2] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “Chairperson” means the Chairperson of the Commission or of the State Commission, as the case may be; (b) “child rights” includes the children's rights adopted in the United Nations convention on the Rights of the Child on the 20th November, 1989 and ratified by the Government of India on the 11th December, 1992; (c) “Commission” means the National Commission for Protection of Child Rights constituted under section 3; (d) “Member” means a Member of the Commission or of the State Commission, as the case may be, and includes the Chairperson; 1. The words “except the State of Jammu and Kashmir” omitted by Act 34 of 2019, s. 95 and the Fifth Schedule (w.e.f. 31-10- 2019). 2. 5th February, 2007, _vide_ notification No. S.O. 229(E), dated 15th February, 2007, _see_ Gazette of India, Extraordinary, Part II, sec. 3(ii). 3 ----- (e) “notification” means a notification published in the Official Gazette; (f) “prescribed” means prescribed by rules made under this Act; (g) “State Commission” means a State Commission for Protection of Child Rights constituted under section 17. CHAPTER II THE NATIONAL COMMISSIONFOR PROTECTIONOF CHILD RIGHTS **3. Constitution of National Commission for Protection of Child Rights.—(1) The Central** Government shall, by notification, constitute a body to be known as the National Commission for Protection of Child Rights to exercise the powers conferred on, and to perform the functions assigned to it, under this Act. (2) The Commission shall consist of the following Members, namely:— (a) a Chairperson who is a person of eminence and has done outstanding work for promoting the welfare of children; and (b) six Members, out of which at least two shall be women, from the following fields, to be appointed by the Central Government from amongst persons of eminence, ability, integrity, standing and experience in,— (i) education; (ii) child health, care, welfare or child development; (iii) juvenile justice or care of neglected or marginalized children or children with disabilities; (iv) elimination of child labour or children in distress; (v) child psychology or sociology; and (vi) laws relating to children. (3) The office of the Commission shall be at Delhi. **4. Appointment of Chairperson and Members.—The Central Government shall, by** notification, appoint the Chairperson and other Members: Provided that the Chairperson shall be appointed on the recommendation of a three member Selection Committee constituted by the Central Government under the Chairmanship of the [1][Minister in-charge of the Ministry or the Department of Women and Child Development]. **5. Term of office and conditions of service of Chairperson and Members.—(1) The** Chairperson and every Member shall hold office as such for a term of three years from the date on which he assumes office: Provided that no Chairperson or a Member shall hold the office for more than two terms: Provided further that no Chairperson or any other Member shall hold office as such after he has attained— (a) in the case of the Chairperson, the age of sixty-five years; and (b) in the case of a Member, the age of sixty years. 1. Subs. by Act 4 of 2007, s.2., for “Minister in-charge of the Ministry of Human Resource Development” (w.e.f. 29-12-2006). 4 ----- (2) The Chairperson or a Member may, by writing under his hand addressed to the Central Government, resign his office at any time. **6. Salary and allowances of Chairperson and Members.—The salary and allowances payable** to, and other terms and conditions of service of, the Chairperson and Members, shall be such as may be prescribed by the Central Government: Provided that neither the salary and allowances nor the other terms and conditions of service of the Chairperson or a Member, as the case may be, shall be varied to his disadvantage after his appointment. **7. Removal from office.—(1) Subject to the provisions of sub-section (2), the Chairperson may** be removed from his office by an order of the Central Government on the ground of proved misbehaviour or incapacity. (2) Notwithstanding anything contained in sub-section (1), the Central Government may by order remove from office the Chairperson or any other Member, if the Chairperson or, as the case may be, such other Member,— (a) is adjudged an insolvent; or (b) engages during his term of office in any paid employment outside the duties of his office; or (c) refuses to act or becomes incapable of acting; or (d) is of unsound mind and stands so declared by a competent court; or (e) has so abused his office as to render his continuance in office detrimental to the public interest; or (f) is convicted and sentenced to imprisonment for an offence which in the opinion of the Central Government involves moral turpitude; or (g) is, without obtaining leave of absence from the Commission, absent from three consecutive meetings of the Commission. (3) No person shall be removed under this section until that person has been given an opportunity of being heard in the matter. **8. Vacation of office by Chairperson or Members.—(1) If the Chairperson or, as the case may** be, a Member,— (a) becomes subject to any of the disqualifications mentioned in section 7; or (b) tenders his resignation under sub-section (2) of section 5, his seat shall thereupon become vacant. (2) If a casual vacancy occurs in the office of the Chairperson or a Member, whether by reason of his death, resignation or otherwise, such vacancy shall be filled within a period of ninety days by making afresh appointment in accordance with the provisions of section 4and the person so appointed shall hold office for the remainder of the term of office for which the Chairperson, or a Member, as the case may be, in whose place he is so appointed would have held that office. **9. Vacancies, etc., not to invalidate proceedings of Commission.—No act or proceeding of the** Commission shall be invalid merely by reason of— (a) any vacancy in, or any defect in the constitution of, the Commission; or (b) any defect in the appointment of a person as the Chairperson or a Member; or (c) any irregularity in the procedure of the Commission not affecting the merits of the case. 5 ----- **10. Procedure for transaction of business.—(1) The Commission shall meet regularly at its** office at such time as the Chairperson thinks fit, but three months shall not intervene between its last and the next meeting. (2) All decisions at a meeting shall be taken by majority: Provided that in the case of equality of votes, the Chairperson, or in his absence the person presiding, shall have and exercise a second or casting vote. (3) If for any reason, the Chairperson, is unable to attend the meeting of the Commission, any Member chosen by the Members present from amongst themselves at the meeting, shall preside. (4) The Commission shall observe such rules of procedure in the transaction of its business at a meeting, including the quorum at such meeting, as may be prescribed by the Central Government. (5) All orders and decisions of the Commission shall be authenticated by the Member-Secretary or any other officer of the Commission duly authorised by Member-Secretary in this behalf. **11. Member-Secretary, officers and other employees of Commission.—(1) The Central** Government shall, by notification, appoint an officer not below the rank of the Joint Secretary or the Additional Secretary to the Government of India as a Member-Secretary of the Commission and shall make available to the Commission such other officers and employees as may be necessary for the efficient performance of its functions. (2) The Member-Secretary shall be responsible for the proper administration of the affairs of the Commission and its day-to-day management and shall exercise and discharge such other powers and perform such other duties as may be prescribed by the Central Government. (3) The salary and allowances payable to, and the other terms and conditions of service of the Member-Secretary, other officers and employees, appointed for the purpose of the Commission shall be such as may be prescribed by the Central Government. **12. Salaries and allowances to be paid out of grants.—The salaries and allowances payable to** the Chairperson and Members and the administrative expenses, including salaries, allowances and pensions payable to the Member-Secretary, other officers and employees referred to in section 11, shall be paid out of the grants referred to in sub-section (1) of section 27. CHAPTER III FUNCTIONSAND POWERSOF THE COMMISSION **13. Functions of Commission.—(1) The Commission shall perform all or any of the following** functions, namely:— (a) examine and review the safeguards provided by or under any law for the time being in force for the protection of child rights and recommend measures for their effective implementation; (b) present to the Central Government, annually and at such other intervals, as the Commission may deem fit, reports upon the working of those safeguards; (c) inquire into violation of child rights and recommend initiation of proceedings in such cases; (d) examine all factors that inhibit the enjoyment of rights of children affected by terrorism, communal violence, riots, natural disaster, domestic violence, HIV/AIDS, trafficking, maltreatment, torture and exploitation, pornography and prostitution and recommend appropriate remedial measures; (e) look into the matters relating to children in need of special care and protection including children in distress, marginalized and disadvantaged children, children in conflict with law, 6 ----- juveniles, children without family and children of prisoners and recommend appropriate remedial measures; (f) study treaties and other international instruments and undertake periodical review of existing policies, programmes and other activities on child rights and make recommendations for their effective implementation in the best interest of children; (g) undertake and promote research in the field of child rights; (h) spread child rights literacy among various sections of the society and promote awareness of the safeguards available for protection of these rights through publications, the media, seminars and other available means; (i) inspect or cause to be inspected any juvenile custodial home, or any other place of residence or institution meant for children, under the control of the Central Government or any State Government or any other authority, including any institution run by a social organisation; where children are detained or lodged for the purpose of treatment, reformation or protection and take up with these authorities for remedial action, if found necessary; (j) inquire into complaints and take suo motu notice of matters relating to,— (i) deprivation and violation of child rights; (ii) non-implementation of laws providing for protection and development of children; (iii) non-compliance of policy decisions, guidelines or instructions aimed at mitigating hardships to and ensuring welfare of the children and to provide relief to such children, or take up the issues arising out of such matters with appropriate authorities; and (k) such other functions as it may consider necessary for the promotion of child rights and any other matter incidental to the above functions. (2) The Commission shall not inquire into any matter which is pending before a State Commission or any other Commission duly constituted under any law for the time being in force. **14. Powers relating to inquiries.—(1) The Commission shall, while inquiring into any matter** referred to in clause (j) of sub-section (1) of section 13 have all the powers of a civil court trying a suit under the Code of Civil Procedure, 1908 (5 of 1908) and, in particular, in respect of the following matters, namely:— (a) summoning and enforcing the attendance of any person and examining him on oath; (b) discovery and production of any document; (c) receiving evidence on affidavits; (d) requisitioning any public record or copy thereof from any court or office; and (e) issuing commissions for the examination of witnesses or documents. (2) The Commission shall have the power to forward any case to a Magistrate having jurisdiction to try the same and the Magistrate to whom any such case is forwarded shall proceed to hear the complaint against the accused as if the case has been forwarded to him under section 346 of the Code of Criminal Procedure, 1973 (2 of 1974). **15. Steps after inquiry.—The Commission may take any of the following steps upon the** completion of an inquiry held under this Act, namely:— (i) where the inquiry discloses, the Commission of violation of child rights of a serious nature or contravention of provisions of any law for the time being in force, it may recommend to the concerned Government or authority the initiation of proceedings for prosecution or such other action as the Commission may deem fit against the concerned person or persons; 7 ----- (ii) approach the Supreme Court or the High Court concerned for such directions, orders or writs as that Court may deem necessary; (iii) recommend to the concerned Government or authority for the grant of such interim relief to the victim or the members of his family as the Commission may consider necessary. **16. Annual and special reports of Commission.—(1) The Commission shall submit an annual** report to the Central Government and to the State Government concerned and may at any time submit special reports on any matter which, in its opinion, is of such urgency or importance that it should not be deferred till submission of the annual report. (2) The Central Government and the State Government concerned, as the case maybe, shall cause the annual and special reports of the Commission to be laid before each House of Parliament or the State Legislature respectively, as the case may be, along with a memorandum of action taken or proposed to be taken on the recommendations of the Commission and the reasons for non-acceptance of the recommendations, if any, within a period of one year from the date of receipt of such report. (3) The annual report shall be prepared in such form, manner and contain such details as may be prescribed by the Central Government. CHAPTER IV STATE COMMISSION FOR PROTECTIONOF CHILD RIGHTS **17. Constitution of State Commission for Protection of Child Rights.—(1) A State** Government may constitute a body to be known as the ..........(name of the State) Commission for Protection of Child Rights to exercise the powers conferred upon, and to perform the functions assigned to, a State Commission under this Chapter. (2) The State Commission shall consist of the following Members, namely:— (a) a Chairperson who is a person of eminence and has done outstanding work for promoting the welfare of children; and (b) six Members, out of which at least two shall be women, from the following fields, to be appointed by the State Government from amongst persons of eminence, ability, integrity, standing and experience in,— (i) education; (ii) child health, care, welfare or child development; (iii) juvenile justice or care of neglected or marginalized children or children with disabilities; (iv) elimination of child labour or children in distress; (v) child psychology or sociology; and (vi) laws relating to children. (3) The headquarter of the State Commission shall be at such place as the State Government may, by notification, specify. **18. Appointment of Chairperson and other Members.—The State Government shall, by** notification, appoint the Chairperson and other Members: Provided that the Chairperson shall be appointed on the recommendation of a three Member Selection Committee constituted by the State Government under the Chairmanship of the Minister in-charge of the Department dealing with children. 8 ----- **19. Term of office and conditions of service of Chairperson and Members.—(1)The** Chairperson and every Member shall hold office as such for a term of three years from the date on which he assumes office: Provided that no Chairperson or a Member shall hold the office for more than two terms: Provided further that no Chairperson or any other Member shall hold office as such after he has attained— (a) in the case of Chairperson, the age of sixty-five years; and (b) in the case of a Member, the age of sixty years. (2) The Chairperson or a Member may, by writing under his hand addressed to the State Government, resign his office at any time. **20. Salary and allowances of Chairperson and Members.—The salaries and allowances** payable to, and other terms and conditions of service of, the Chairperson and Members shall be such as may be prescribed by the State Government: Provided that neither the salary and allowances nor the other terms and conditions of service of the Chairperson or a Member, as the case may be, shall be varied to his disadvantage after his appointment. **21. Secretary, officers and other employees of the State Commission.—(1) The State** Government shall, by notification, appoint an officer not below the rank of the Secretary to the State Government as the Secretary of the State Commission and shall make available to the State Commission such other officers and employees as may be necessary for the efficient performance of its functions. (2) The Secretary shall be responsible for the proper administration of the affairs of the State Commission and its day-to-day management and shall exercise and discharge such other powers and perform such other duties as may be prescribed by the State Government. (3) The salary and allowances payable to, and the other terms and conditions of service of the Secretary, other officers and employees, appointed for the purpose of the State Commission shall be such as may be prescribed by the State Government. **22. Salaries and allowances to be paid out of grants.—The salaries and allowances payable to** the Chairperson and Members and the administrative expenses, including salaries, allowances and pensions payable to the Secretary, other officers and employees referred to in section 21, shall be paid out of the grants referred to in sub-section (1) of section 28. **23. Annual and special reports of State Commission.—(1) The State Commission shall submit** an annual report to the State Government and may at any time submit special reports on any matter which, in its opinion, is of such urgency or importance that it should not be deferred till submission of the annual report. (2) The State Government shall cause all the reports referred to in sub-section (1) to be laid before each House of State Legislature, where it consists of two Houses, or where such Legislature consists of one House, before that House along with a memorandum explaining the action taken or proposed to be taken on the recommendations relating to the State and the reasons for the non-acceptance, if any, of any of such recommendations. (3) The annual report shall be prepared in such form, manner and contain such details as may be prescribed by the State Government. 9 ----- **24. Application of certain provisions relating to National Commission for Protection of** **Child Rights to State Commissions.—The provisions of sections 7, 8, 9, 10,sub-section (1) of** section 13 and sections 14 and 15 shall apply to a State Commission and shall have effect, subject to the following modifications, namely:— (a) references to “Commission” shall be construed as references to “State Commission”; (b) references to “Central Government” shall be construed as references to “State Government”; and (c) references to “Member-Secretary” shall be construed as references to “Secretary”. CHAPTER V CHILDREN’S COURTS **25. Children's Courts.—For the purpose of providing speedy trial of offences against children or** of violation of child rights, the State Government may, with the concurrence of the Chief Justice of the High Court, by notification, specify at least a court in the State or specify, for each district, a Court of Session to be a Children's Court to try the said offences: Provided that nothing in this section shall apply if— (a) a Court of Session is already specified as a special court; or (b) a special court is already constituted, for such offences under any other law for the time being in force. **26. Special Public Prosecutor.—For every Children's Court, the State Government shall, by** notification, specify a Public Prosecutor or appoint an advocate who has been in practice as an advocate for not less than seven years, as a Special Public Prosecutor for the purpose of conducting cases in that Court. CHAPTER VI FINANCE, ACCOUNTS AND AUDIT **27. Grants by Central Government.—(1) The Central Government shall, after due** appropriation made by Parliament by law in this behalf, pay to the Commission by way of grants such sums of money as the Central Government may think fit for being utilised for the purposes of this Act. (2) The Commission may spend such sums of money as it thinks fit for performing the functions under this Act, and such sums shall be treated as expenditure payable out of the grants referred to in sub-section (1). **28. Grants by State Governments.—(1) The State Government shall, after due appropriation** made by Legislature by law in this behalf, pay to the State Commission by way of grants such sums of money as the State Government may think fit for being utilised for the purposes of this Act. (2) The State Commission may spend such sums of money as it thinks fit for performing the functions under Chapter III of this Act, and such sums shall be treated as expenditure payable out of the grants referred to in sub-section (1). **29. Accounts and audit of Commission.—(1) The Commission shall maintain proper accounts** and other relevant records and prepare an annual statement of accounts in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India. (2) The accounts of the Commission shall be audited by the Comptroller and Auditor-General at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Commission to the Comptroller and Auditor-General. 10 ----- (3) The Comptroller and Auditor-General and any person appointed by him in connection with the audit of the accounts of the Commission under this Act shall, have the same rights and privileges and the authority in connection with such audit as the Comptroller and Auditor-General generally has in connection with the audit of Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Commission. (4) The accounts of the Commission as certified by the Comptroller and Auditor-General or any other person appointed by him in this behalf, together with the audit report thereon shall be forwarded annually to the Central Government by the Commission and the Central Government shall cause the audit report to be laid, as soon as may be after it is received, before each House of Parliament. **30. Accounts and audit of State Commission.—(1) The State Commission shall maintain proper** accounts and other relevant records and prepare an annual statement of accounts in such form as may be prescribed by the State Government in consultation with the Comptroller and Auditor-General of India. (2) The accounts of the State Commission shall be audited by the Comptroller and Auditor-General at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the State Commission to the Comptroller and Auditor-General. (3) The Comptroller and Auditor-General and any person appointed by him in connection with the audit of the accounts of the State Commission under this Act shall, have the same rights and privileges and the authority in connection with such audit as the Comptroller and Auditor-General generally has in connection with the audit of Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the State Commission. (4) The accounts of the State Commission as certified by the Comptroller and Auditor-General or any other person appointed by him in this behalf, together with the audit report thereon shall be forwarded annually to the State Government by the State Commission and the State Government shall cause the audit report to be laid, as soon as may be after it is received, before the State Legislature. CHAPTER VII MISCELLANEOUS **31. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding** shall lie against the Central Government, the State Government, the Commission, the State Commission, or any Member thereof or any person acting under the direction either of the Central Government, State Government, Commission or the State Commission, in respect of anything which is in good faith done or intended to be done in pursuance of this Act or of any rules made there under or in respect of the publication by or under the authority of the Central Government, State Government, Commission, or the State Commission of any report or paper. **32. Chairperson, Members and other officers to be public servant.—Every Member of the** Commission, State Commission and every officer appointed in the Commission or the State Commission to exercise functions under this Act shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860). **33. Directions by Central Government.—(1) In the discharge of its functions under this Act, the** Commission shall be guided by such directions on questions of policy relating to national purposes, as may be given to it by the Central Government. (2) If any dispute arises between the Central Government and the Commission as to whether a question is or is not a question of policy relating to national purposes, the decision of the Central Government thereon shall be final. 11 ----- **34. Returns or information.—The Commission shall furnish to the Central Government such** returns or other information with respect to its activities as the Central Government may, from time to time, require. **35. Power to Central Government to make rules.—(1) The Central Government may, by** notification, make rules to carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) terms and conditions of service of the Chairperson and Members of the Commission and their salaries and allowances under section 6; (b) the procedure to be followed by the Commission in the transaction of its business at a meeting under sub-section (4) of section 10; (c) the powers and duties which may be exercised and performed by the Member- Secretary of the Commission under sub-section (2) of section 11; (d) the salary and allowances and other terms and conditions of service of officers and other employees of the Commission under sub-section (3) of section 11; and (e) form of the statement of accounts and other records to be prepared by the Commission under sub-section (1) of section 29. (3) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions afore said, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be with out prejudice to the validity of anything previously done under that rule. **36. Power of State Government to make rules.—(1) The State Government may, by** notification, make rules to carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) terms and conditions of service of the Chairperson and Members of the State Commission and their salaries and allowances under section 20; (b) the procedure to be followed by the State Commission in the transaction of its business at a meeting under sub-section (4) of section 10 read with section24; (c) the powers and duties which may be exercised and performed by the Secretary of the State Commission under sub-section (2) of section 21; (d) the salary and allowances and other terms and conditions of service of officers and other employees of the State Commission under sub-section (3) of section 21; and (e) form of the statement of accounts and other records to be prepared by the State Commission under sub-section (1) of section 30. (3) Every rule made by the State Government under this section shall be laid, as soon as may be after it is made, before each House of the State Legislature where it consists of two Houses, or where such State Legislature consists of one House, before that House. 12 ----- **37. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as may appear to be necessary for removing the difficulty: Provided that no order shall be made under this section after the expiry of the period of two years from the date of commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. 13 -----

31-Mar-2006

19

The Petroleum and Natural Gas Regulatory Board Act, 2006

https://www.indiacode.nic.in/bitstream/123456789/2012/1/2006____19.pdf

central

# THE PETROLEUM AND NATURAL GAS REGULATORY BOARD ACT, 2006 _______________ ARRANGEMENT OF SECTIONS _______________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent, commencement and application. 2. Definitions. CHAPTER II PETROLEUM AND NATURAL GAS REGULATORY BOARD 3. Establishment and incorporation of the Board. 4. Qualifications for appointment of Chairperson and other members. 5. Term of office, conditions of service, etc., of Chairperson and other members. 6. Powers of Chairperson. 7. Removal of Chairperson or any other member from office. 8. Meetings of the Board. 9. Vacancies, etc., not to invalidate proceedings of the Board. 10. Officers and other employees of the Board. CHAPTER III FUNCTIONS AND POWERS OF THE BOARD 11. Functions of the Board. 12. Powers regarding complaints and resolution of disputes by the Board. 13. Procedure of the Board. CHAPTER IV REGISTRATION AND AUTHORISATION 14. Register. 15. Registration of entities. 16. Authorisation. 17. Application for authorisation. 18. Publicity of applications. 19. Grant of authorisation. 20. Declaring, laying, building, etc., of common carrier or contract carrier and city or local natural gas distribution network. 21. Right of first use, etc. 22. Transportation tariff. 23. Suspension or cancellation of authorisation. CHAPTER V SETTLEMENT OF DISPUTES 24. Board to settle disputes. ----- SECTIONS 25. Filing of complaints. 26. Power to investigate. 27. Factors to be taken into account by the Board. 28. Civil penalty for contravention of directions given by the Board. 29. Orders passed by Board deemed to be decrees. CHAPTER VI APEALS TO APPELLATE TRIBUNAL 30. Appellate Tribunal. 31. Technical Member (Petroleum and Natural Gas). 32. Terms and conditions of service of Technical Member (Petroleum and Natural Gas). 33. Appeals to Appellate Tribunal. 34. Procedure and powers of the Appellate Tribunal. 35. Power of Appellate Tribunal to make rules. 36. Orders passed by Appellate Tribunal to be executable as a decree. 37. Appeal to Supreme Court. CHAPTER VII FINANCE, ACCOUNTS AND AUDIT 38. Grants by Central Government. 39. Fund. 40. Accounts and audit. 41. Annual report and its laying before Parliament. CHAPTER VIII POWER OF CENTRAL GOVERNMENT 42. Power of Central Government to issue directions. 43. Taking over control and management of facilities and business premises of any entity and retail outlets in public interest. CHAPTER IX OFFENCES AND PUNISHMENT 44. Punishment for contravention of directions of the Board. 45. Penalty for wilful failure to comply with orders of Appellate Tribunal. 46. Punishment for unauthorised activities. 47. Punishment for establishing or operating a liquefied natural gas terminal without registration. 48. Punishment for laying, building, operating or expanding a common carrier or contract carrier without authorisation. 49. Punishment for wilful damages to common carrier or contract carrier. 50. Offences by companies. CHAPTER X MISCELLANEOUS 51. Maintenance of data bank and information. ----- SECTIONS 52. Obligations of entities. 53. Furnishing of returns, etc., to Central Government. 54. Chairperson, members, etc., to be public servants. 55. Protection of action taken in good faith. 56. Civil courts not to have jurisdiction. 57. Cognizance of certain offences. 58. Delegation. 59. Power to remove difficulties. 60. Power of Central Government to make rules. 61. Power of Board to make regulations. 62. Rules and regulations to be laid before Parliament. 63. Transitional arrangements. ----- # THE PETROLEUM AND NATURAL GAS REGULATORY BOARD ACT, 2006 ACT NO. 19 OF 2006 [31st March, 2006.] # An Act to provide for the establishment of Petroleum and Natural Gas Regulatory Board to regulate the refining, processing, storage, transportation, distribution, marketing and sale of petroleum, petroleum products and natural gas excluding production of crude oil and natural gas so as to protect the interests of consumers and entities engaged in specified activities relating to petroleum, petroleum products and natural gas and to ensure uninterrupted and adequate supply of petroleum, petroleum products and natural gas in all parts of the country and to promote competitive markets and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-seventh Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent, commencement and application.—(1) This Act may be called the Petroleum** and Natural Gas Regulatory Board Act, 2006. (2) It extends to the whole of India. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint: Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. (4) It applies to refining, processing, storage, transportation, distribution, marketing and sale of petroleum, petroleum products and natural gas excluding production of crude oil and natural gas. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “affiliate code of conduct” means the code of conduct governing entities engaged in storage, transmission, distribution, marketing and sale of natural gas under sub-section (1) of section 21; (b) “Appellate Tribunal” means the Appellate Tribunal referred to in section 30; (c) “appointed day” means the date on which the Board is established under sub-section (1) of section 3; (d) “authorised entity” means an entity— (A) registered by the Board under section 15— (i) to market any notified petroleum, petroleum products or natural gas, or (ii) to establish and operate liquefied natural gas terminals, or (B) authorised by the Board under section 16— (i) to lay, build, operate or expand a common carrier or contract carrier, or (ii) to lay, build, operate or expand a city or local natural gas distribution network; 1. 1st October, 2007 (except s. 16), _vide_ notification No. G.S.R. 637(E) dated 1st October, 2007, _see_ Gazette of India, Extraordinary, Part II, sec. 3(ii). 15th July, 2010,--Section 16, vide notification No. G.S.R. 596(E), dated 12th July, 2010, _see Gazette of India, Extraordinary,_ Part II, sec. 3(ii). ----- (e) “auto liquefied petroleum gas” means a mixture of certain light hydrocarbons derived from petroleum, which are gaseous at normal ambient temperature and atmospheric pressure but may be condensed to the liquid state at normal ambient temperature by the application of moderate pressure, and which conform to such specifications for use as fuel in vehicles, as the Central Government may, in consultation with the Bureau of Indian Standards, notify from time to time; (f) „„Board” means the Petroleum and Natural Gas Regulatory Board established under sub section (1) of section 3; (g) “Bureau of Indian Standards” means the Bureau of Indian Standards established under section 3 of the Bureau of Indian Standards Act, 1986 (63 of 1986); (h) “Chairperson” means the Chairperson of the Board appointed under sub-section (1) of section 4; (i) “city or local natural gas distribution network” means an inter-connected network of gas pipelines and the associated equipment used for transporting natural gas from a bulk supply high pressure transmission main to the medium pressure distribution grid and subsequently to the service pipes supplying natural gas to domestic, industrial or commercial premises and CNG stations situated in a specified geographical area. _Explanation.—For the purposes of this clause, the expressions “high pressure” and “medium_ pressure” shall mean such pressure as the Central Government may, by notification, specify to be high pressure or, as the case may be, medium pressure; (j) “common carrier” means such pipelines for transportation of petroleum, petroleum products and natural gas by more than one entity as the Board may declare or authorise from time to time on a non-discriminatory open access basis under sub-section (3) of section 20, but does not include pipelines laid to supply— (i) petroleum products or natural gas to a specific consumer; or (ii) crude oil; _Explanation.—For the purposes of this clause, a contract carrier shall be treated as a common_ carrier, if— (i) such contract carrier has surplus capacity over and above the firm contracts entered into; or (ii) the firm contract period has expired. (k) “CNG station” means filling station where one or more dispensing units are provided for sale of compressed natural gas; (l) “compressed natural gas or CNG” means natural gas used as fuel for vehicles, typically compressed to the pressure ranging from 200 to 250 bars in the gaseous state; (m) “contract carrier” means such pipelines for transportation of petroleum, petroleum products and natural gas by more than one entity pursuant to firm contracts for at least one year as may be declared or authorised by the Board from time to time under sub-section (3) of section 20; (n) “dealer” means a person, association of persons, firm, company or co-operative society, by whatsoever name called or referred to, and appointed by an oil company to purchase, receive, store and sell motor spirit, high speed diesel, superior kerosene oil, auto liquefied petroleum gas or natural gas; (o) “distributor” means a person, association of persons, firm, company or co-operative society, by whatsoever name called or referred to, and appointed by an oil company to purchase, receive, store and sell to consumers liquefied petroleum gas in cylinders; (p) “entity” means a person, association of persons, firm, company or co-operative society, by whatsoever name called or referred to, other than a dealer or distributor, and engaged or intending to be engaged in refining, processing, storage, transportation, distribution, marketing, import and export ----- of petroleum, petroleum products and natural gas including laying of pipelines for transportation of petroleum, petroleum products and natural gas, or laying, building, operating or expanding city or local natural gas distribution network or establishing and operating a liquefied natural gas terminal; (q) “exchange of products” shall mean giving and receiving of a petroleum product in accordance with an agreement entered into by the concerned entities; (r) “high speed diesel” means any hydrocarbon oil (excluding mineral colza oil and turpentine substitute), which conforms to such specifications for use as fuel in compression ignition engines, as the Central Government may, in consultation with the Bureau of Indian Standards, notify from time to time; (s) “kerosene or superior kerosene oil” means a middle distillate mixture of hydrocarbons which conforms to such specifications, as the Central Government may, in consultation with the Bureau of Indian Standards, notify from time to time; (t) “liquefied natural gas terminal” means the facilities and infrastructure required to— (i) receive liquefied natural gas; (ii) store liquefied natural gas; (iii) enable regasification of liquefied natural gas; and (iv) transport regasified liquefied natural gas till the outside boundaries of the facility; (u) “liquefied petroleum gas” means a mixture of light hydrocarbons containing propane, isobutene, normal butane, butylenes, or such other substance which is gaseous at normal ambient temperature and atmospheric pressure but may be condensed to liquid state at normal ambient temperature by the application of pressure and conforms to such specifications, as the Central Government may, in consultation with the Bureau of Indian Standards, notify from time to time; (v) “local distribution entity” means an entity authorised by the Board under section 20 to lay, build, operate or expand a city or local natural gas distribution network; (w) “marketing service obligations” means obligations— (i) to set up marketing infrastructure and retail outlets in remote areas in respect of notified petroleum and petroleum products; (ii) to maintain minimum stock of notified petroleum and petroleum products; (iii) of a local distribution entity to supply natural gas to consumers; and (iv) such other obligations as may be specified by regulations; (x) “maximum retail price” means the maximum price fixed by an entity at which the petroleum, petroleum products and natural gas may be sold to the retail consumers and includes all taxes, cess and levies, local or otherwise and freight or commission payable to the dealers; (y) “member” means a member of the Board appointed under sub-section (1) of section 4 and includes the Member (Legal) and the Chairperson; (z) “motor spirit” means any hydrocarbon oil (excluding crude mineral oil) used as fuel in spark ignition engines which conforms to such specifications, as the Central Government may, in consultation with the Bureau of Indian Standards, notify from time to time; (za) “natural gas” means gas obtained from bore-holes and consisting primarily of hydrocarbons and includes— (i) gas in liquid state, namely, liquefied natural gas and regasified liquefied natural gas, (ii) compressed natural gas, (iii) gas imported through transnational pipelines, including CNG or liquefied natural gas, (iv) gas recovered from gas hydrates as natural gas, ----- (v) methane obtained from coal seams, namely, coal bed methane, but does not include helium occurring in association with such hydrocarbons; (zb) “notification” means a notification published in the Official Gazette and the expression “notified” with its cognate meanings and grammatical variations, shall be construed accordingly; (zc) “notified petroleum, petroleum products and natural gas” means such petroleum, petroleum products and natural gas as the Central Government may notify from time to time, after being satisfied that it is necessary or expedient so to do for maintaining or increasing their supplies or for securing their equitable distribution or ensuring adequate availability; (zd) “oil company” means a company registered under the Companies Act, 1956 (1 of 1956) and includes an association of persons, society or firm, by whatsoever name called or referred to, for carrying out an activity relating to petroleum, petroleum products and natural gas; (ze) “petroleum” means any liquid hydrocarbon or mixture of hydrocarbons, and any inflammable mixture (liquid, viscous or solid) containing any liquid hydrocarbon, including crude oil and liquefied petroleum gas, and the expression „petroleum product‟ shall mean any product manufactured from petroleum; (zf) “pipeline access code” means the code to establish a framework for third party access to pipelines under sub-clause (i) of clause (e) of section 11; (zg) “prescribed” means prescribed by rules made by the Central Government under this Act; (zh) “regulations” means regulations made by the Board under this Act; (zi) “restrictive trade practice” means a trade practice which has, or may have, the effect of preventing, distorting or restricting competition in any manner and in particular,— (i) which tends to obstruct the flow of capital or resources into the stream of production, or (ii) which tends to bring about manipulation of prices, or conditions of delivery or to affect the flow of supplies in the market relating to petroleum, petroleum products or natural gas or services in such manner as to impose on the consumers unjustified costs or restrictions; (zj) “retail outlet” means filling station where one or more dispensing pumps have been provided for sale of motor spirit, high speed diesel, auto-liquefied petroleum gas or natural gas and includes distributorship for liquefied petroleum gas or dealership for superior kerosene oil or CNG stations; (zk) “retail service obligations” means obligations of dealers and distributors for maintaining supplies to consumers throughout the specified working hours and of specified quality, quantity and display of maximum retail price of notified petroleum, petroleum products and natural gas including CNG and such other obligations, as may be specified by regulations; (zl) “rules” means rules made by the Central Government under this Act; (zm) “Secretary” means the Secretary of the Board; (zn) “transportation rate”, in relation to common carrier or contract carrier or a city or local natural gas distribution network, means such rate for moving each unit of petroleum, petroleum products or natural gas as may be fixed by regulations. CHAPTER II PETROLEUM AND NATURAL GAS REGULATORY BOARD **3. Establishment and incorporation of the Board.—(1) With effect from such date as the Central** Government may, by notification, appoint, there shall be established, for the purposes of this Act, a Board to be called the Petroleum and Natural Gas Regulatory Board. (2) The Board shall be a body corporate by the name aforesaid, having perpetual succession and a common seal, with power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to contract, and shall, by the said name, sue or be sued. ----- (3) The Board shall consist of a Chairperson, a Member (Legal) and three other members to be appointed by the Central Government. (4) The head office of the Board shall be at New Delhi and regional offices at such places as the Board may deem necessary having regard to public interest and magnitude of the work. **4. Qualifications for appointment of Chairperson and other members.—(1) The Central** Government shall appoint the Chairperson and other members of the Board from amongst persons of eminence in the fields of petroleum and natural gas industry, management, finance, law, administration or consumer affairs: Provided that no person shall be appointed as Member (Legal) unless he— (a) is qualified to be a Judge of a High Court; or (b) has been a member of the Indian Legal Service and has held a post in Grade I of that Service for at least three years. (2) The Central Government shall, for the purposes of selecting the Chairperson and other members of the Board and for preparing a panel of persons to be considered for appointment as the Technical Member (Petroleum and Natural Gas) of the Appellate Tribunal, constitute a Search Committee consisting of— (i) Member, Planning Commission in charge of the energy sector-Chairperson; (ii) Secretary to the Government of India, Ministry of Petroleum and Natural Gas-Member; (iii) Secretary to the Government of India, Ministry of Finance, Department of Economic Affairs Member; (iv) Secretary to the Government of India in charge of Commerce, Ministry of Commerce and Industry-Member; and (v) Secretary to the Government of India, Department of Legal Affairs, Ministry of Law and Justice-Member. **5. Term of office, conditions of service, etc. of Chairperson and other members.—(1) Before** appointing any person as the Chairperson or other member, the Central Government shall satisfy itself that such person does not have any financial or other interest which is likely to affect prejudicially his functions as Chairperson or such other member. (2) The Chairperson and other members shall hold office for a term of five years from the date on which they enter upon their offices or until they attain the age of sixty-five years, whichever is earlier: Provided that the Chairperson and other members shall not be eligible for re-appointment. _Explanation.—For the purposes of this section, appointment of a member as Chairperson shall not be_ deemed to be re-appointment. (3) A person in the service of the Central Government, a State Government or an undertaking, corporation or company owned or controlled by the Central Government or a State Government or from any other non-Governmental or corporate body shall resign or retire from such service before joining as the Chairperson or other member, as the case may be. (4) The salaries and allowances payable to and the other terms and conditions of service of the Chairperson and the other members shall be such as may be prescribed: Provided that neither the salary and allowances nor the other terms and conditions of service of the Chairperson or any other member shall be varied to his disadvantage after appointment. (5) The Chairperson or other member may resign his office by giving notice thereof in writing to the Central Government and on such resignation being accepted, the Chairperson or such other member shall be deemed to have vacated his office. (6) The Chairperson or any other member, upon ceasing to hold office as such, shall— (a) be ineligible for further employment under the Central Government or any State Government; and ----- (b) not accept any commercial employment for a period of two years from the date he ceases to hold such office. _Explanation.—For the purposes of this section, “commercial employment” means employment in_ any capacity under, or agency of, a person engaged in trading, commercial, industrial or financial business in any field and includes also a director of a company or partner of a firm or setting up practice either independently or as partner of a firm or as an advisor or a consultant. **6. Powers of Chairperson.—The Chairperson shall have the powers of general superintendence and** directions in the conduct of the affairs of the Board and shall, in addition to presiding over the meetings of the Board, exercise and discharge such other powers and functions of the Board, as may be assigned to him by the Board. **7. Removal of Chairperson or any other member from office.—The Central Government may** remove from office the Chairperson or any other member, who— (a) has been adjudged as insolvent; or (b) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or (c) has become physically or mentally incapable of acting as a member; or (d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a member; or (e) has so abused his position as to render his continuance in office prejudicial to the public interest: Provided that no Chairperson or other member shall be removed from office under clause (d) or clause (e) unless the Central Government, after holding an inquiry by any person appointed or authority constituted for the purpose and in accordance with such procedure as may be prescribed in this behalf, is satisfied that such person ought on such ground or grounds to be removed. **8. Meetings of the Board.—(1) The Board shall meet at such times and places, and shall observe** such procedure in regard to the transaction of business at its meetings (including the quorum at such meetings) as may be provided by regulations. (2) The Chairperson or, if he is unable to attend a meeting of the Board, the senior-most member present, reckoned from the date of appointment to the Board, shall preside at the meeting: Provided that in case of common date of appointment of members, the member senior in age shall be considered as senior to the other members. (3) All questions which come up before any meeting of the Board shall be decided by a majority of the members present and voting, and in the event of an equality of votes, the Chairperson or in his absence, the person presiding shall have a second or casting vote. (4) All orders and decisions of the Board shall be authenticated by the Secretary or any other officer of the Board duly authorised by the Chairperson in this behalf. **9. Vacancies, etc., not to invalidate proceedings of the Board.—No act or proceeding of the Board** shall be invalid merely by reason of— (a) any vacancy in, or any defect in the constitution of, the Board; or (b) any defect in the appointment of a person acting as a member of the Board; or (c) any irregularity in the procedure of the Board not affecting the merits of the case. **10. Officers and other employees of the Board.—(1) The Central Government may, in consultation** with the Board, appoint a Secretary to exercise and perform such powers and duties, under the control of ----- the Chairperson as may be specified by regulations: Provided that no such consultation shall be necessary for appointment of the first Secretary of the Board. (2) The Board may, with the approval of the Central Government, determine the number, nature and categories of other officers and employees required to assist the Board in the efficient discharge of its functions. (3) The salaries and allowances payable to and the other terms and conditions of service of the Secretary, the other officers and employees of the Board shall be such as may be prescribed. (4) The Board may appoint consultants required to assist in the discharge of its functions on such terms and conditions as may be determined by regulations. CHAPTER III FUNCTIONS AND POWERS OF THE BOARD **11. Functions of the Board.—The Board shall—** (a) protect the interest of consumers by fostering fair trade and competition amongst the entities; (b) register entities to— (i) market notified petroleum and petroleum products and, subject to the contractual obligations of the Central Government, natural gas; (ii) establish and operate liquefied natural gas terminals; (iii) establish storage facilities for petroleum, petroleum products or natural gas exceeding such capacity as may be specified by regulations; (c) authorise entities to— (i) lay, build, operate or expand a common carrier or contract carrier; (ii) lay, build, operate or expand city or local natural gas distribution network; (d) declare pipelines as common carrier or contract carrier; (e) regulate, by regulations,— (i) access to common carrier or contract carrier so as to ensure fair trade and competition amongst entities and for that purpose specify pipeline access code; (ii) transportation rates for common carrier or contract carrier; (iii) access to city or local natural gas distribution network so as to ensure fair trade and competition amongst entities as per pipeline access code; (f) in respect of notified petroleum, petroleum products and natural gas— (i) ensure adequate availability; (ii) ensure display of information about the maximum retail prices fixed by the entity for consumers at retail outlets; (iii) monitor prices and take corrective measures to prevent restrictive trade practice by the entities; (iv) secure equitable distribution for petroleum and petroleum products; (v) provide, by regulations, and enforce, retail service obligations for retail outlets and marketing service obligations for entities; (vi) monitor transportation rates and take corrective action to prevent restrictive trade practice by the entities; (g) levy fees and other charges as determined by regulations; ----- (h) maintain a data bank of information on activities relating to petroleum, petroleum products and natural gas; (i) lay down, by regulations, the technical standards and specifications including safety standards in activities relating to petroleum, petroleum products and natural gas, including the construction and operation of pipeline and infrastructure projects related to downstream petroleum and natural gas sector; (j) perform such other functions as may be entrusted to it by the Central Government to carry out the provisions of this Act. **12. Powers regarding complaints and resolution of disputes by the Board.—(1) The Board shall** have jurisdiction to— (a) adjudicate upon and decide any dispute or matter arising amongst entities or between an entity and any other person on issues relating to refining, processing, storage, transportation, distribution, marketing and sale of petroleum, petroleum products and natural gas according to the provisions of Chapter V, unless the parties have agreed for arbitration; (b) receive any complaint from any person and conduct any inquiry and investigation connected with the activities relating to petroleum, petroleum products and natural gas on contravention of— (i) retail service obligations; (ii) marketing service obligations; (iii) display of retail price at retail outlets; (iv) terms and conditions subject to which a pipeline has been declared as common carrier or contract carrier or access for other entities was allowed to a city or local natural gas distribution network, or authorisation has been granted to an entity for laying, building, expanding or operating a pipeline as common carrier or contract carrier or authorisation has been granted to an entity for laying, building, expanding or operating a city or local natural gas distribution network; (v) any other provision of this Act or the rules or the regulations or orders made thereunder. (2) While deciding a complaint under sub-section (1), the Board may pass such orders and issue such directions as it deems fit or refer the matter for investigation according to the provisions of Chapter V. **13. Procedure of the Board.—(1) The Board shall have, for the purposes of discharging its** functions under this Act, the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit, in respect of the following matters, namely:— (a) summoning and enforcing the attendance of any person and examining him on oath; (b) subject to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872 (1 of 1872), requisitioning any public record or document or a copy of such record or document, from any office and production of such documents; (c) receiving evidence on affidavits; (d) issuing commissions for the examination of witnesses or documents; (e) dismissing an application for default or deciding it, ex parte; (f) setting aside any order of dismissal of any application for default or any order passed by it, ex _parte;_ (g) granting interim relief; (h) reviewing its decision; and (i) any other matter which may be prescribed. ----- (2) Every proceeding before the Board shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purposes of section 196, of the Indian Penal Code (45 of 1860) and the Board shall be deemed to be a civil court for the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). (3) The Board shall be guided by the principles of natural justice and subject to other provisions of this Act and of any rules made thereunder, shall have powers to regulate its own procedure including the places at which it shall conduct its business. CHAPTER IV REGISTRATION AND AUTHORISATION **14. Register.—(1) For the purposes of this Act, a register to be called the Petroleum and Natural Gas** Register shall be kept at the head office of the Board containing such details of entities— (a) registered for— (i) marketing notified petroleum, petroleum products or natural gas, or (ii) establishing and operating liquefied natural gas terminals, or (iii) establishing storage facilities for petroleum, petroleum products or natural gas exceeding such capacity as may be specified by regulations, or (b) authorised for— (i) laying, building, operating or expanding a common carrier, or (ii) laying, building, operating or expanding a city or local natural gas distribution network, as may be provided by the Board by regulations. (2) A copy of any entry in the register purporting to be maintained by the Board and certified as such by an officer authorised by the Board, shall be admitted in evidence in all courts and in all proceedings without further proof or production of the original. (3) The register shall be open to public inspection at the head office of the Board. (4) Any person may, on application to the Board, and on payment of such fee as may be determined by the Board, by regulations, obtain a certified copy of any entry in the register. **15. Registration of entities.—(1) Every entity desirous of—** (a) marketing any notified petroleum or petroleum products or natural gas; or (b) establishing or operating a liquefied natural gas terminal; or (c) establishing storage facilities for petroleum, petroleum products or natural gas exceeding such capacity as may be specified by regulations, and fulfilling the eligibility conditions as may be prescribed shall make an application to the Board for its registration under this Act: Provided that no registration under this Act shall be required for any entity carrying on any activity referred to in clause (a) or clause (b) or clause (c) immediately before the appointed day but shall inform the Board about such activity within six months from the appointed day. (2) Every application for registration under sub-section (1) shall be made in such form and in such manner and shall be accompanied by such fee as may be determined by the Board by regulations. (3) The Board may, after making such enquiry and subject to such terms and conditions as it may specify, grant a certificate of registration to the entity allowing to commence and carry on the activity referred to in clause (a) or clause (b) or clause (c), as the case may be, of sub-section (1). (4) The Board may, by order, suspend or cancel a certificate of registration granted under sub-section (3) in such manner as may be determined by regulations: Provided that no order under this sub-section shall be made unless the entity concerned has been given a reasonable opportunity of being heard. ----- **16. Authorisation.—No entity shall—** (a) lay, build, operate or expand any pipeline as a common carrier or contract carrier, (b) lay, build, operate or expand any city or local natural gas distribution network, without obtaining authorisation under this Act: Provided that an entity,— (i) laying, building, operating or expanding any pipeline as common carrier or contract carrier; or (ii) laying, building, operating or expanding any city or local natural gas distribution network, immediately before the appointed day shall be deemed to have such authorisation subject to the provisions of this Chapter, but any change in the purpose or usage shall require separate authorisation granted by the Board. **17. Application for authorisation.—(1) An entity which is laying, building, operating or expanding,** or which proposes to lay, build, operate or expand, a pipeline as a common carrier or contract carrier shall apply in writing to the Board for obtaining an authorisation under this Act: Provided that an entity laying, building, operating or expanding any pipeline as common carrier or contract carrier authorised by the Central Government at any time before the appointed day shall furnish the particulars of such activities to the Board within six months from the appointed day. (2) An entity which is laying, building, operating or expanding, or which proposes to lay, build, operate or expand, a city or local natural gas distribution network shall apply in writing for obtaining an authorisation under this Act: Provided that an entity laying, building, operating or expanding any city or local natural gas distribution network authorised by the Central Government at any time before the appointed day shall furnish the particulars of such activities to the Board within six months from the appointed day. (3) Every application under sub-section (1) or sub-section (2) shall be made in such form and in such manner and shall be accompanied with such fee as the Board may, by regulations, specify. (4) Subject to the provisions of this Act and consistent with the norms and policy guidelines laid down by the Central Government, the Board may either reject or accept an application made to it, subject to such amendments or conditions, if any, as it may think fit. (5) In the case of refusal or conditional acceptance of an application, the Board shall record in writing the grounds for such rejection or conditional acceptance, as the case may be. **18. Publicity of applications.—When an application for registration for marketing notified** petroleum, petroleum products and natural gas, or for establishing and operating a liquefied natural gas terminal, or for establishing storage facilities for petroleum, petroleum products or natural gas exceeding such capacity as may be specified by regulations, is accepted whether absolutely or subject to conditions or limitations, the Board shall, as soon as may be, cause such acceptance to be known to the public in such form and manner as may be provided by regulations. **19. Grant of authorisation.—(1) When, either on the basis of an application for authorisation for** laying, building, operating or expanding a common carrier or contract carrier or for laying, building, operating or expanding a city or local natural gas distribution network is received or on suo motu basis, the Board forms an opinion that it is necessary or expedient to lay, build, operate or expand a common carrier or contract carrier between two specified points, or to lay, build, operate or expand a city or local natural gas distribution network in a specified geographic area, the Board may give wide publicity of its intention to do so and may invite applications from interested parties to lay, build, operate or expand such pipelines or city or local natural gas distribution network. (2) The Board may select an entity in an objective and transparent manner as specified by regulations for such activities. ----- **20. Declaring, laying, building, etc., of common carrier or contract carrier and city or local** **natural gas distribution network.—(1) If the Board is of the opinion that it is necessary or expedient, to** declare an existing pipeline for transportation of petroleum, petroleum products and natural gas or an existing city or local natural gas distribution network, as a common carrier or contract carrier or to regulate or allow access to such pipeline or network, it may give wide publicity of its intention to do so and invite objections and suggestions within a specified time from all persons and entities likely to be affected by such decision. (2) For the purposes of sub-section (1), the Board shall provide the entity owning, the pipeline or network an opportunity of being heard and fix the terms and conditions subject to which the pipeline or network may be declared as a common carrier or contract carrier and pass such orders as it deems fit having regard to the public interest, competitive transportation rates and right of first use. (3) The Board may, after following the procedure as specified by regulations under section 19 and sub-sections (1) and (2), by notification,— (a) declare a pipeline or city or local natural gas distribution network as a common carrier or contract carrier; or (b) authorise an entity to lay, build, operate or expand a pipeline as a common carrier or contract carrier; or (c) allow access to common carrier or contract carrier or city or local natural gas distribution network; or (d) authorise an entity to lay, build, operate or expand a city or local natural gas distribution network. (4) The Board may decide on the period of exclusivity to lay, build, operate or expand a city or local natural gas distribution network for such number of years as it may by order, determine in accordance with the principles laid down by the regulations made by it, in a transparent manner while fully protecting the consumer interests. (5) For the purposes of this section, the Board shall be guided by the objectives of promoting competition among entities, avoiding infructuous investment, maintaining or increasing supplies or for securing equitable distribution or ensuring adequate availability of petroleum, petroleum products and natural gas throughout the country and follow such principles as the Board may, by regulations, determine in carrying out its functions under this section. **21. Right of first use, etc.—(1) The entity laying, building, operating or expanding a pipeline for** transportation of petroleum and petroleum products or laying, building, operating or expanding a city or local natural gas distribution network shall have right of first use for its own requirement and the remaining capacity shall be used amongst entities as the Board may, after issuing a declaration under section 20, determine having regard to the needs of fair competition in marketing and availability of petroleum and petroleum products throughout the country: Provided that in case of an entity engaged in both marketing of natural gas and laying, building, operating or expanding a pipeline for transportation of natural gas on common carrier or contract carrier basis, the Board shall require such entities to comply with the affiliate code of conduct as may be specified by regulations and may require such entity to separate the activities of marketing of natural gas and the transportation including ownership of the pipeline within such period as may be allowed by the Board and only within the said period, such entity shall have right of first use. (2) An entity other than an entity authorised to operate shall pay transportation rate for use of common carrier or contract carrier to the entity operating it as an authorised entity. (3) An entity authorised to lay, build, operate or expand a pipeline as common carrier or contract carrier or to lay, build, operate or expand a city or local natural gas distribution network shall be entitled to institute proceedings before the Board to prevent, or to recover damages for, the infringement of any right relating to authorisation. _Explanation.—For the purposes of this sub-section, “infringement of any right” means doing of any_ act by any person which interferes with common carrier or contract carrier or causes prejudice to the authorised entity. ----- **22. Transportation tariff.—(1) Subject to the provisions of this Act, the Board shall lay down, by** regulations, the transportation tariffs for common carriers or contract carriers or city or local natural gas distribution network and the manner of determining such tariffs. (2) For the purposes of sub-section (1), the Board shall be guided by the following, namely:— (a) the factors which may encourage competition, efficiency, economic use of the resources, good performance and optimum investments; (b) safeguard the consumer interest and at the same time recovery of cost of transportation in a reasonable manner; (c) the principles rewarding efficiency in performance; (d) the connected infrastructure such as compressors, pumps, metering units, storage and the like connected to the common carriers or contract carriers; (e) benchmarking against a reference tariff calculated based on cost of service, internal rate of return, net present value or alternate mode of transport; (f) policy of the Central Government applicable to common carrier, contract carrier and city or local distribution natural gas network. **23. Suspension or cancellation of authorisation.—If the Board, on an application of an affected** party or on its own motion, is satisfied that the entity in favour of which authorisation has been granted under section 19 has failed to comply with any conditions of authorisation, it may, after giving an opportunity to such entity of being heard, either suspend the authorisation for such period as the Board may think fit or cancel the authorisation: Provided that where the Board is of the opinion that an authorised entity persistently acts in a manner prejudicial to the interests of consumers, it may take action for the suspension of the authorisation immediately subject to the opportunity of hearing being given subsequently, after which action so taken may be confirmed or revoked. CHAPTER V SETTLEMENT OF DISPUTES **24. Board to settle disputes.—(1) Save as otherwise provided for arbitration in the relevant** agreements between entities or between an entity or any other person, as the case may be, if any dispute arises, in respect of matters referred to in sub-section (2) among entities or between an entity and any other person, such dispute shall be decided by a Bench consisting of the Member (Legal) and one or more members nominated by the Chairperson: Provided that if the members of the Bench differ on any point or points, they shall state the point or points on which they differ and refer the same to a member other than a member of the Bench for hearing on such point or points and such point or points shall be decided according to the opinion of that member. (2) The Bench constituted under sub-section (1) shall exercise, on and from the appointed day, all such jurisdiction, powers and authority as were exercisable by a civil court on any matter relating to— (a) refining, processing, storage, transportation and distribution of petroleum, petroleum products and natural gas by the entities; (b) marketing and sale of petroleum, petroleum products and natural gas including the quality of service and security of supply to the consumers by the entities; and (c) registration or authorisation issued by the Board under section 15 or section 19. (3) Notwithstanding anything contained in the Code of Civil Procedure, 1908 (5 of 1908), the Board shall have the power to decide matters referred to in sub-section (2) on or after the appointed day. ----- **25. Filing of complaints.—(1) A complaint may be filed before the Board by any person in respect** of matters relating to entities or between entities on any matter arising out of the provisions of this Act: Provided that the complaints of individual consumers maintainable before a consumer disputes redressal forum under the Consumer Protection Act, 1986 (68 of 1986) shall not be taken up by the Board but shall be heard and disposed of by such forum. _Explanation.—For the purposes of this sub-section, the expression “consumer disputes redressal_ forum” shall mean the district forum, State Commission or, the National Commission, as the case may be, constituted under the provisions of the Consumer Protection Act, 1986 (68 of 1986). (2) Every complaint made under sub-section (1) shall be filed within sixty days from the date on which any act or conduct constituting a contravention took place and shall be in such form and shall be accompanied by such fee as may be provided by regulations: Provided that the Board may entertain a complaint after the expiry of the said period if it is satisfied that there was sufficient cause for not filing the complaint within that period. (3) On receipt of a complaint under sub-section (1), the Board shall decide within thirty days whether there is a prima facie case against the entity or entities concerned and may either conduct enquiry on its own or refer the matter for investigation under this Chapter, to an Investigating Officer having jurisdiction; and, where the matter is referred to such Investigating Officer, on receipt of a report from such Investigating Officer, the Board may, hear and dispose of the complaint as a dispute if it falls under sub-section (2) of section 27 and in any other case, it may pass such orders and issue such directions as it deems fit. (4) Where the Central Government considers that a matter arising out of the provisions of this Act is required to be investigated, it shall make a reference to the Board and the provisions of this Act shall apply as if such reference were a complaint made to the Board. **26. Power to investigate.—(1) For the purposes of provisions of section 25, the Board shall, subject** to the provisions of sub-section (3), appoint by general or special order, an officer of the Board as an Investigating Officer for holding an investigation in the manner provided by regulations: Provided that where the Board considers it necessary that the matter should be investigated by any investigating agency of the State or Central Government including the special police force constituted under section 2 of the Delhi Special Police Establishment Act, 1946 (25 of 1946), the Board may request the concerned Government for directing or authorising such agency to investigate and the agency so directed or authorised shall, then, be competent to exercise the powers and to discharge the duties of an Investigating Officer under this Act. (2) No person shall be appointed as an Investigating Officer unless he possesses such qualifications and experience as may be determined by the Board by regulations. (3) Where more than one Investigating Officer is appointed, the Board shall specify, by order, the matters and the local limits of jurisdiction with respect to which each such officer shall exercise his jurisdiction. **27. Factors to be taken into account by the Board.—The Board shall, while deciding a dispute** under this Chapter, have due regard to the provisions of this Act and to the following factors, namely:— (a) the amount of disproportionate gain made or unfair advantage derived, wherever quantifiable, as a result of the default; (b) the amount of loss caused to an entity as a result of the default; (c) the repetitive nature of the default. **28. Civil penalty for contravention of directions given by the Board.—In case any complaint is** filed before the Board by any person or if the Board is satisfied that any person has contravened a direction issued by the Board under this Act to provide access to, or to adhere to the transportation rate in respect of a common carrier, or to display maximum retail price at retail outlets, or violates the terms and ----- conditions subject to which registration or authorisation has been granted under section 15 or section 19 or the retail service obligations or marketing service obligations, or does not furnish information, document, return of report required by the Board, it may, after giving such person an opportunity of being heard in the matter, by order in writing, direct that, without prejudice to any other penalty to which he may be liable under this Act, such person shall pay, by way of civil penalty an amount which shall not exceed one crore rupees for each contravention and in case of a continuing failure with additional penalty which may extend to ten lakh rupees for every day during which the failure continues after contravention of the first such direction: Provided that in the case of a complaint on restrictive trade practice, the amount of civil penalty may extend to five times the unfair gains made by the entity or ten crore rupees, whichever is higher. **29. Orders passed by Board deemed to be decrees.—Every order made by the Board under this** Act shall, on a certificate issued by an officer of the Board, shall be executable in the same manner as if it were a decree of a civil court: Provided that where an appeal lies against an order of the Board and no appeal is preferred then the order of the Board shall be deemed to be a final decree under this section on the expiry of the period allowed for preferring an appeal against such order before the Appellate Tribunal. CHAPTER VI APPEALS TO APPELLATE TRIBUNAL **30. Appellate Tribunal.—(1) Subject to the provisions of this Act, the Appellate Tribunal** established under section 110 of the Electricity Act, 2003 (36 of 2003) shall be the Appellate Tribunal for the purposes of this Act and the said Appellate Tribunal shall exercise the jurisdiction, powers and authority conferred on it by or under this Act: Provided that the Technical Member of the Appellate Tribunal for the purposes of this Act shall be called the Technical Member (Petroleum and Natural Gas) and shall have the qualifications specified in sub-section (2) of section 31. (2) Notwithstanding anything contained in the Electricity Act, 2003 (36 of 2003), the Central Government may, for the purposes of this Act, appoint one or more Technical Members (Petroleum and Natural Gas) on the Appellate Tribunal for Electricity or designate a Technical Member of the said Tribunal having the qualifications specified in sub-section (2) of section 31 and when a Technical Member (Petroleum and Natural Gas) is appointed, he shall be in addition to the three other members appointed under the said Act. **31. Technical Member (Petroleum and Natural Gas).—(1) The Technical Member (Petroleum and** Natural Gas) shall be appointed from the panel prepared by the Search Committee constituted under subsection (2) of section 4. (2) A person shall not be qualified for appointment as a Technical Member (Petroleum and Natural Gas) of the Appellate Tribunal unless he— (i) is, or has been, a Secretary for at least one year in the Ministry or Department of the Central Government having adequate experience in energy sector, especially in matters relating to Petroleum and Natural Gas sector; or (ii) is, or has been, a person of ability and standing, having adequate knowledge or experience in dealing with matters relating to exploration, production, transmission pipelines, marketing or regulation of petroleum, petroleum products or natural gas, economics, commerce, law or management. **32. Terms and conditions of service of Technical Member (Petroleum and Natural Gas).—The** term of office, the salaries and allowances payable to and the other terms and conditions of service of the Technical Member (Petroleum and Natural Gas) shall be the same as applicable to the other members of the Appellate Tribunal. ----- **33. Appeals to Appellate Tribunal.—(1) Any person aggrieved by an order or decision made by the** Board under this Act may prefer an appeal to the Appellate Tribunal: Provided that any person preferring an appeal against an order or decision of the Board levying any penalty shall, while filing the appeal, deposit the amount of such penalty: Provided further that where in any particular case, the Appellate Tribunal is of the opinion that deposit of such penalty would cause undue hardship to such person, it may dispense with such deposit subject to such conditions as it may deem fit to impose so as to safeguard the realisation of penalty. (2) Every appeal under sub-section (1) shall be filed within a period of thirty days from the date on which a copy of the direction or order of decision made by the Board is received by the aggrieved person and it shall be in such form, verified in such manner and be accompanied by such fee as may be prescribed: Provided that the Appellate Tribunal may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that there was sufficient cause for not filing it within that period. (3) On receipt of an appeal under sub-section (1), the Appellate Tribunal may, after giving the parties an opportunity of being heard, pass such orders thereon as it thinks fit. (4) The Appellate Tribunal shall send a copy of every order made by it to the parties to the appeal and to the Board. (5) The appeal filed under sub-section (1) shall be dealt with by the Appellate Tribunal as expeditiously as possible and endeavor shall be made by it to dispose of the appeal finally within ninety days from the date of receipt of appeal: Provided that where any such appeal could not be disposed of within the said period of ninety days, the Appellate Tribunal shall record its reasons in writing for not disposing of the appeal within the said period. (6) The Appellate Tribunal may, for the purpose of examining the legality or propriety or correctness of any order or decision of the Board referred to in the appeal filed under sub-section (1), either on its own motion or otherwise, call for the records relevant to disposing of such appeal and make such orders as it thinks fit. **34. Procedure and powers of the Appellate Tribunal.—The provisions of sections 120 to 124** (both inclusive) of the Electricity Act, 2003 (36 of 2003) shall _mutatis mutandis apply to the Appellate_ Tribunal in the discharge of its functions under this Act as they apply to it in the discharge of its functions under the Electricity Act, 2003. **35. Power of Appellate Tribunal to make rules.—The Appellate Tribunal may, by notification,** make rules consistent with the provisions of this Act as to the conduct and procedure in respect of all proceedings before it under this Act. **36. Orders passed by Appellate Tribunal to be executable as a decree.—(1) Every order made by** the Appellate Tribunal under this Act shall be executable by the Appellate Tribunal as a decree of a civil court, and for this purpose, the Appellate Tribunal shall have all the powers of a civil court. (2) Notwithstanding anything contained in sub-section (1), the Appellate Tribunal may transmit any order made by it to a civil court having jurisdiction and such civil court shall execute the order as if it were a decree made by that court. **37. Appeal to Supreme Court.—(1) Notwithstanding anything contained in the Code of Civil** Procedure, 1908 (5 of 1908) or in any other law, an appeal shall lie against any order, not being an interlocutory order, of the Appellate Tribunal to the Supreme Court on one or more of the grounds specified in section 100 of that Code. (2) No appeal shall lie against any decision or order made by the Appellate Tribunal with the consent of the parties. ----- (3) Every appeal under this section shall be preferred within a period of ninety days from the date of the decision or order appealed against: Provided that the Supreme Court may entertain the appeal after the expiry of the said period of ninety days, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal in time. CHAPTER VII FINANCE, ACCOUNTS AND AUDIT **38. Grants by Central Government.—The Central Government may, after due appropriation made** by Parliament by law in this behalf, make to the Board grants of such sums of money as are required to pay salaries and allowances payable to the Chairperson and the other members and the administrative expenses including the salaries, allowances and pensions payable to the officers and employees of the Board. **39. Fund.—(1) There shall be constituted a Fund to be called the Petroleum and Natural Gas** Regulatory Board Fund and there shall be credited thereto— (i) all grants, fees, penalties and charges received by the Board under this Act; (ii) all sums received by the Board from such other sources as may be approved by the Central Government. (2) The Fund shall be applied for making payments towards— (i) the salaries and allowances payable to the Chairperson and other members and the administrative expenses including the salaries, allowances and pensions payable to the officers and employees of the Board; (ii) the expenses incurred or to be incurred in carrying out the provisions of this Act. (3) The Central Government shall— (i) constitute a committee consisting of such persons as it thinks fit to recommend to that Government the budgetary requirements of the Board for salaries, allowances and all other expenses; and (ii) fix the budgetary ceiling of the Board on the basis of the recommendations of the committee. **40. Accounts and audit.—(1) The Board shall maintain proper accounts and other relevant records** and prepare an annual statement of accounts in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India. (2) The accounts of the Board shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Board to the Comptroller and Auditor-General of India. _Explanation.—For the removal of doubts, it is hereby declared that the decisions of the Board taken_ in the discharge of its functions under this Act, being matters appealable to the Appellate Tribunal, shall not be subject to audit under this section. (3) The Comptroller and Auditor-General of India or any other person appointed by him in connection with the audit of the accounts of the Board shall have the same rights and privileges and authority in connection with the audit of the Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and inspection of offices of the Board. (4) The accounts of the Board as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament. ----- **41. Annual report and its laying before Parliament.—(1) The Board shall prepare once every year** in such form and at such time as may be prescribed, an annual report giving a summary of its activities including information relating to the proceedings and policies during the previous years and such report shall also contain statements of annual accounts of the Board. (2) A copy of the report shall be forwarded to the Central Government and the Central Government shall cause such report to be laid, as soon as may be after it is received, before each House of Parliament. CHAPTER VIII POWER OF CENTRAL GOVERNMENT **42. Power of Central Government to issue directions.—(1) The Central Government may, from** time to time, by writing issue to the Board such directions as it may think necessary in the interest of the sovereignty and integrity of India, the security of the State, friendly relations with foreign States or public order. (2) Without prejudice to the foregoing provision, the Central Government may, if it finds necessary or expedient so to do in public interest or for maintaining or increasing supplies of petroleum, petroleum products or natural gas or all or any of them or for securing their equitable distribution and ensuring adequate availability, issue policy directives to the Board in writing and such policy directives shall be binding upon the Board: Provided that no such directive shall relate to any day-to-day affairs of the Board: Provided further that the Board shall, as far as practicable, be given an opportunity of expressing its views before any directive is issued under this sub-section. (3) The decision of the Central Government whether a question is one of policy or not shall be final. **43. Taking over control and management of facilities and business premises of any entity and** **retail outlets in public interest.—(1) In the event of war or natural calamity or such other similar** circumstances leading to disruption of supply of petroleum, petroleum products or natural gas, the Central Government may, for ensuring the continuous supply of petroleum, petroleum products or natural gas, by notification, either take over the control and management of any storage site, facilities and business premises of any entity and retail outlets or suspend its operations or entrust, to any agency of the Central or State Government for such time and manage it in such manner, as may be specified in that notification: Provided that the affected entities shall be given an opportunity of being heard before issuing orders to take over the control and management of retail outlets and other business premises: Provided further that in case of any urgency or in cases where the circumstances do not permit serving of notice for want of sufficient time or otherwise upon the entity against whom the order is directed, the opportunity of hearing may be dispensed with in public interest in order to maintain the uninterrupted supply of petroleum, petroleum products or natural gas for a specified period. (2) The collector of the revenue district in which the property referred to in the notification issued under sub-section (1) is situated shall determine the amount of compensation payable for taking over of the property. (3) The form and manner in which an application for claiming compensation under this section shall be made, the procedure for determining the compensation and the time within which such compensation shall be payable, shall be such as may be prescribed. CHAPTER IX OFFENCES AND PUNISHMENT **44. Punishment for contravention of directions of the Board.—If a person contravenes the** directions of the Board, such person shall be punishable with fine which may extend to twenty-five crore rupees and in case of continuing contravention with additional fine which may extend to ten lakh rupees for every day during which the contravention continues. ----- **45. Penalty for wilful failure to comply with orders of Appellate Tribunal.—If any person** willfully fails to comply with the order of the Appellate Tribunal, he shall be punishable with fine which may extend to one crore rupees and in case of a second or subsequent offence with fine which may extend to two crore rupees and in the case of continuing contravention with additional fine which may extend to twenty lakh rupees for every day during which such default continues. **46. Punishment for unauthorised activities.—If any person, being an entity, markets any notified** petroleum, petroleum products or natural gas without a valid registration, or authorisation such person shall be punishable with imprisonment which may extend to three years or with fine which may extend to twenty-five crore rupees or with both, and in case of continuing contravention with additional fine which may extend to ten lakh rupees for every day during which the contravention continues. **47. Punishment for establishing or operating a liquefied natural gas terminal without** **registration.—If a person establishes or operates a liquefied natural gas terminal without registration as** required under section 15, such person shall be liable for punishment with an imprisonment for a term which may extend to three years or penalty of twenty-five crore rupees or with both, and in case of continuing contravention with additional fine which may extend to ten lakh rupees for every day during which the contravention continues. **48. Punishment for laying, building, operating or expanding a common carrier or contract** **carrier without authorisation.—If a person lays, builds, operates or expands a common carrier or** contract carrier or a city or local natural gas distribution network without obtaining authorisation required under section 19, such person shall be liable for punishment with an imprisonment for a term which may extend to three years or penalty of twenty-five crore rupees or with both, and in case of continuing contravention with additional fine which may extend to ten lakh rupees for every day during which the contravention continues. **49. Punishment for wilful damages to common carrier or contract carrier.—Every person who** willfully removes, destroys or damages any pipeline or city or local natural gas distribution network or other work of the common carrier or contract carrier for supplying petroleum, petroleum products or natural gas shall for each such offence be punishable with imprisonment which may extend to three years or with fine which may extend to twenty-five crore rupees or with both, and, in case of continuing contravention with additional fine which may extend to ten lakh rupees for every day during which such contravention continues. **50. Offences by companies.—(1) Where an offence under this Act has been committed by a** company, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he has exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved `that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purpose of this section,—_ (a) “company” means any body corporate and includes a firm or other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm. ----- CHAPTER X MISCELLANEOUS **51. Maintenance of data bank and information.—(1) The Board shall maintain a data bank and** information system relating to activities of entities dealing with petroleum, petroleum products and natural gas in such form and manner as may be provided by regulations. (2) The Board shall have power to verify the data supplied by the entities and appoint any person or persons for the purpose and take such measures as it may consider necessary. **52. Obligations of entities.—(1) Every entity shall—** (a) maintain such documentary records as may be specified by the Board by regulations; (b) allow inspection of such facilities and documentary records, as may be specified by the Board, by any person authorised by the Board; (c) commence operation of activities for which authorisation has been granted within such period as may be specified by the Board in the document of authorisation; (d) register— (i) agreements with the Board relating to use of pipelines for supply of petroleum, petroleum products and natural gas; or (ii) any other document which the Board may determine by regulations; (e) comply with marketing service obligations and retail service obligations. (2) The Board may call for any information from any entity including information which is considered necessary for ensuring transparency or ascertaining true ownership of the entity. (3) The Board or any officer authorised by the Board shall have the power to inspect and obtain information, wherever necessary, from the entities. (4) For the effective enforcement of the terms and conditions of authorisation, the Board or any officer authorised by it for that purpose, shall have all the powers of an inspecting officer as provided under section 209A of the Companies Act, 1956 (1 of 1956). (5) It shall be the duty of every entity to carry out the directions of the Board given under this section. (6) The Board shall maintain confidentiality in respect of any information and record received by it from the entities and shall not disclose information contained therein to any person or authority except on the grounds of public interest. **53. Furnishing of returns, etc., to Central Government.—The Board shall furnish to the Central** Government at such time and in such form and manner as may be prescribed or as the Central Government may direct, such returns and statements and such particulars in regard to any matter in connection with proposed or existing activities under this Act, as the Central Government may, from time to time, require. **54. Chairperson, members, etc., to be public servants.—The Chairperson, Members, Officers and** other employees of the Board and Technical Member (Petroleum and Natural Gas) of the Appellate Tribunal shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this Act, to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **55. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall** lie against the Central Government, Board, Technical Authority or Appellate Tribunal or any officer of the Central Government or any Chairperson, Member, officer or other employee of the Board or Technical Member (Petroleum and Natural Gas) of the Appellate Tribunal for anything which is in good faith done or intended to be done under this Act or the rules or regulations made thereunder. ----- **56. Civil courts not to have jurisdiction.—No civil court shall have jurisdiction to entertain any suit** or proceeding in respect of any matter which the Board or the Appellate Tribunal is empowered by or under this Act to determine, and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act. **57. Cognizance of certain offences.—(1) No court shall take cognizance of any offence punishable** under Chapter IX save on a complaint made by the Board or by any investigating agency directed by the Central Government. (2) No court inferior to that of a Chief Metropolitan Magistrate or of a Chief Judicial Magistrate shall try any offence punishable under Chapter IX. (3) Every offence punishable under sections 44, 45, 46 and 47 shall be cognizable. **58. Delegation.—The Board may, by general or special order in writing, delegate to any member or** officer of the Board subject to such conditions, if any, as may be specified in the order, such of its powers and functions under this Act (except the power to settle a dispute under Chapter VI and to make regulations under section 61), as it may deem necessary. **59. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order, published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as it may deem necessary for removing the difficulty: Provided that no order shall be made under this section after the expiry of two years from the date of commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **60. Power of Central Government to make rules.—(1) The Central Government may, by** notification, make rules for carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the salaries and allowances payable to and the other conditions of service of the Chairperson and the other members under sub-section (4) of section 5; (b) the procedure for appointment of any person or constitution of any authority and conducting inquiry under section 7; (c) the salaries and allowances payable to and the other terms and conditions of service of the Secretary, officers and other employees of the Board, under sub-section (3) of section 10; (d) any other matter in respect of which the Board may exercise the powers of a civil court under clause (i) of sub-section (1) of section 13; (e) the eligibility conditions which an entity shall fulfill for registration under sub-section (1) of section 15; (f) the form of appeal and the manner of verifying such form, and the fee which shall accompany such form, under sub-section (2) of section 33; (g) the manner in which the accounts of the Board shall be maintained under sub-section (1) of section 40; (h) the time and manner in which the annual report of the Board shall be prepared under sub-section (1) of section 41; (i) the form and manner in which applications for claiming compensation shall be made, the procedure for determining the compensation and the time within which such compensation shall be payable, under sub-section (3) of section 43; (j) the time and manner in which returns and statements are to be furnished by the Board to the Central Government under section 53; ----- (k) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be made, by rules. **61. Power of Board to make regulations.—(1) The Board may, by notification, make regulations** consistent with this Act and the rules made thereunder to carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:— (a) the time and places of meetings of the Board and the procedure (including quorum necessary for the transaction of business) to be followed at such meetings under sub-section (1) of section 8; (b) the powers and duties of the Secretary under sub-section (1) of section 10; (c) the terms and conditions of the consultants appointed under sub-section (4) of section 10; (d) the capacity of storage facilities for petroleum, petroleum products or natural gas requiring registration under sub-clause (iii) of clause (b) of section 11; (e) regulating open access to and transportation rate for the common carrier or contract carrier or city or local natural gas distribution network and other matters referred to in clause (e) of section 11; (f) marketing service obligations for entities and retail service obligations for retail outlets under sub-clause (v) of clause (f) of section 11; (g) levy of fees and other charges under clause (g) of section 11; (h) the technical standards and specifications including safety standards in activities relating to petroleum, petroleum products and natural gas under clause (i) of section 11; (i) the procedure to be followed by the Board including the places at which it shall conduct its business under sub-section (3) of section 13; (j) the manner of maintaining the Petroleum and Natural Gas Register under sub-section (1) of section 14; (k) the form and manner of making application for obtaining certified copy of any entry in the register and the fee which shall accompany such application, under sub-section (4) of section 14; (l) the form and manner in which an application under sub-section (1) of section 15 shall be made and the fee which shall accompany such application under sub-section (2) of section 15; (m) the manner by which a certificate of registration granted under sub-section (3) of section 15 may be suspended or cancelled under sub-section (4) of section 15; (n) the form and manner in which an application under sub-section (1) or sub-section (2) of section 17 shall be made and the fee which shall accompany such application under sub-section (3) of section 17; (o) the form and manner in which publicity of acceptance of applications for registration shall be made under section 18; (p) the manner of selection of an entity under sub-section (2) of section 19; (q) the principles for determining the number of years for which a city or local natural gas distribution network shall be excluded from the purview of a common carrier or contract carrier under sub-section (4) of section 20; (r) the guiding principles to be followed by the Board and the objectives for declaring, or authorising to lay, build, operate or expand a common carrier or contract carrier for declaring, or authorising to lay, build, operate or expand a city or local natural gas distribution network, under sub-section (5) of section 20; (s) the affiliate code of conduct under which the entities are required to comply with under the proviso to sub-section (1) of section 21; ----- (t) the transportation tariffs for common carriers or contract carriers or city or local natural gas distribution network and the manner of determining such tariffs under sub-section (1) of section 22; (u) the form in which a complaint may be made and the fee which shall accompany such complaint, under sub-section (2) of section 25; (v) the manner of holding an investigation by an Investigating Officer under sub-section (1) of section 26; (w) the qualifications and experience which any person for appointment as an Investigating Officer shall possess, under sub-section (2) of section 26; (x) the form and manner of maintaining data bank and information system by the Board under sub-section (1) of section 51; (y) maintenance of documentary records by an entity, under clause (a) of sub-section (1) of section 52; (z) any other type of documents which are to be registered with the Board under sub-clause (ii) of clause (d) of sub-section (1) of section 52; (za) any other matter which is required to be, or may be, specified by regulations or in respect of which provision is to be or may be made by regulations. **62. Rules and regulations to be laid before Parliament.—Every rule made by the Central** Government and every regulation made by the Board under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. **63. Transitional arrangements.—(1) Where, before the commencement of this Act, an agreement** or agreements have been entered into between one oil company and another for the purpose of sharing of petroleum products or sharing of infrastructure facilities among the oil companies and such agreements have been approved by the Central Government, the Board may monitor the implementation of such agreements for the transition period. (2) The Board shall monitor setting up of dealerships and distributorships of motor spirit, high speed diesel, superior kerosene oil, liquefied petroleum gas and CNG stations for natural gas during transition period by the entities without encroaching on the retail network of the existing entities. _Explanation I.—For the purposes of this section, the expression “transition period” shall mean a_ period of three years from the date of commencement of this Act. _Explanation II.—For the purposes of this section, “infrastructure facilities” shall mean facilities at_ ports, refineries, terminals, depots and aviation fuelling stations including hydrant lines and shall include loading and unloading facilities. _Explanation III.—For the purposes of this section “encroaching” includes taking over of retail outlet_ of one entity by another. _____________ -----

19-May-2006

22

The Delhi Laws (Special Provisions) Act, 2006

https://www.indiacode.nic.in/bitstream/123456789/2073/1/A2006-22.pdf

central

# THE DELHI LAWS (SPECIAL PROVISIONS) ACT, 2006 _________ ARRANGEMENT OF SECTIONS _________ SECTIONS 1. Short title, extent and duration. 2. Definitions. 3. Enforcement to be kept in abeyance. 4. The provisions of this Act not to apply in certain cases. 5. Power of Central Government to give directions. 1 ----- # THE DELHI LAWS (SPECIAL PROVISIONS) ACT, 2006 ACT No. 22 OF 2006 [19th May, 2006.] # An Act to make special provisions for the areas of Delhi for a period of one year and for matters connected therewith or incidental thereto. WHEREAS phenomenal increase in the population owing to migration has put tremendous pressure on land and infrastructure in Delhi resulting in developments which are not in consonance with the Master Plan of Delhi 2001 and the building bye-laws; AND WHEREAS keeping in view the perspective for the year 2021 and emerging new dimensions in urban development, the Central Government has proposed extensive modifications in the Master Plan of Delhi, which have been published and suggestions and objections have been received in respect thereof from the public, and the finalisation of the Master Plan 2021 is likely to take some more time; AND WHEREAS the Central Government has constituted a Committee of Experts to look into the various aspects of unauthorised construction and misuse of premises and suggest a comprehensive strategy to deal with them; AND WHEREAS a revised policy for relocation and rehabilitation of slum dwellers in Delhi is also under consideration of the Central Government; AND WHEREAS a strategy is proposed to be prepared by the local authorities in Delhi in accordance with the National Policy for Urban Street Vendors; AND WHEREAS action for violation of the provisions of the Master Plan,2001 and building bye-laws, before a final view is taken in the matter by the Government, is causing avoidable hardship and irreparable loss to a large number of people; AND WHEREAS some time is required for making orderly arrangements in terms of the proposed Master Plan 2021; AND WHEREAS it is expedient to have a law to provide temporary relief to the people of Delhi against such action for a period of one year within which various policy issues referred to above are expected to be finalised; BE it enacted by Parliament in the Fifty-seventh Year of the Republic of India as follows:— **1. Short title, extent and duration.—(1) This Act may be called the Delhi Laws (Special Provisions)** Act, 2006. (2) It extends to Delhi. (3) It shall cease to have effect on the expiry of one year from the date of its commencement, except as respects things done or omitted to be done before such cesser, and upon such cesser section 6 of the General Clauses Act, 1897 (10 of 1897), shall apply as if this Act had then been repealed by a Central Act. **2. Definitions.—(1) In this Act, unless the context otherwise requires,—** (a) “building bye-laws” means bye-laws made under section 481 of the Delhi Municipal Corporation Act, 1957 (66 of 1957) or the bye-laws made under section 188, sub-section (3) of section 189 and sub-section (1) of section 190 of the Punjab Municipal Act, 1911 (Punjab Act 3 of 1911), as in force in New Delhi or the regulations made under sub-section (1) of section 57 of the Delhi Development Act, 1957 (61 of 1957), relating to buildings; (b) “Delhi” means the entire area of the National Capital Territory of Delhi except the Delhi Cantonment as defined in clause (11) of section 2 of the Delhi Municipal Corporation Act, 1957 (66 of 1957); 2 ----- (c) “encroachment” means unauthorised occupation of Government land or public land by way of putting temporary, semi-permanent or permanent structure for residential use or commercial use or any other use; (d) “local authority” means the Delhi Municipal Corporation established under the Delhi Municipal Corporation Act, 1957 (66 of 1957), or the New Delhi Municipal Council established under the New Delhi Municipal Council Act, 1994 (44 of 1994) or the Delhi Development Authority established under the Delhi Development Act, 1957 (61 of 1957), legally entitled to exercise control in respect of the areas under their respective jurisdiction; (e) “Master Plan” means the Master Plan for Delhi 2001 notified under the Delhi Development Act, 1957; (f) “notification” means a notification published in the Official Gazette; (g) “punitive action” means action taken by a local authority under the relevant law against unauthorised development and shall include demolition, sealing of premises and displacement of persons or their business establishment from their existing location, whether in pursuance of Court orders or otherwise; (h) “relevant law” means in case of— (i) the Delhi Development Authority, the Delhi Development Act, 1957 (61 of 1957); (ii) the Municipal Corporation of Delhi, the Delhi Municipal Corporation Act, 1957 (66 of 1957); and (iii) the New Delhi Municipal Council, the New Delhi Municipal Council Act, 1994 (44 of 1994); (i) “unauthorised development” means use of land or use of building or construction of building carried out in contravention of the sanctioned plans or without obtaining the sanction of plans, or in contravention of the land use as permitted under the Master Plan or Zonal Plan or layout plan, as the case may be, and includes encroachment. (2) The words and expressions used but not defined herein shall have the meanings respectively assigned to them in the Delhi Development Act, 1957 (61 of 1957), the Delhi Municipal Corporation Act, 1957 (66 of 1957) and the New Delhi Municipal Council Act, 1994 (44 of 1994). **3. Enforcement to be kept in abeyance.—(1) Notwithstanding anything contained in any relevant** law or any rules, regulations or bye-laws made thereunder, the Central Government shall within a period of one year of the coming into effect of this Act, take all possible measures to finalise norms, policy guidelines and feasible strategies to deal with the problem of unauthorised development with regard to the under-mentioned categories, namely:— (a) mixed land use not conforming to the Master Plan; (b) construction beyond sanctioned plans; and (c) encroachment by slum and Jhuggi-Jhompri dwellers and hawkers and street vendors, so that the development of Delhi takes place in a sustainable and planned manner. (2) Subject to the provisions contained in sub-section (1) and notwithstanding any judgment, decree or order of any court, status quo as on the 1st day of January, 2006 shall be maintained in respect of the categories of unauthorised development mentioned in sub-section (1). (3) All notices issued by any local authority for initiating action against the categories of unauthorised development referred to in sub-section(1), shall be deemed to have been suspended and no punitive action shall be taken during the said period of one year. (4) Notwithstanding any other provision contained in this Act, the Central Government may, at any time before the expiry of one year, withdraw the exemption by notification in the Official Gazette in respect of one or more of the categories of unauthorised development mentioned in sub-section (2) or sub-section (3), as the case may be. 3 ----- **4. The provisions of this Act not to apply in certain cases.—During the period of operation of this** Act, no relief shall be available under the provisions of section 3 in respect of the following categories of unauthorised development, namely:— (a) any construction unauthorised started or continued on or after the 1st day of January, 2006; (b) commencement of any commercial activity in residential areas in violation of the provisions of the Master Plan of Delhi 2001 on or after the 1st day of January, 2006; (c) encroachment on public land except in those cases which are covered under clause (c) of sub-section (1) of section 3; (d) removal of slums and Jhuggi-Jhompri dwellers and hawkers and street vendors, in accordance with the relevant policies approved by the Central Government for clearance of land required for specific public projects. **5. Power of Central Government to give directions.—The Central Government may, from time to** time, issue such directions to the local authorities as it may deem fit, for giving effect to the provisions of this Act and it shall be the duty of the local authorities, to comply with such directions. ________ 4 -----

16-Jun-2006

27

The Micro, Small and Medium Enterprises Development Act, 2006

https://www.indiacode.nic.in/bitstream/123456789/2013/3/A2006-27.pdf

central

# THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006 __________________ # ARRANGEMENT OF SECTIONS __________________ CHAPTER I PRELIMINARY SECTIONS 1. Short title and commencement. 2. Definitions. CHAPTER II NATIONALBOARD FOR MICRO, SMALL AND MEDIUM ENTERPRISES 3. Establishment of Board. 4. Removal of member from Board. 5. Functions of Board. 6. Powers and functions of Member-Secretary of Board. CHAPTER III CLASSIFICATION OF ENTERPRISES, ADVISORY COMMITTEE ANDMEMORANDUM OF MICRO, SMALL AND MEDIUM ENTERPRISES 7. Classification of enterprises. 8. Memorandum of micro, small and medium enterprises. CHAPTER IV MEASURES FOR PROMOTION, DEVELOPMENT AND ENHANCEMENT OFCOMPETITIVENESS OF MICRO, SMALL AND MEDIUM ENTERPRISES 9. Measures for promotion and development. 10. Credit facilities. 11. Procurement preference policy. 12. Funds. 13. Grants by Central Government. 14. Administration and utilisation of Fund or Funds. CHAPTER V DELAYED PAYMENTS TO MICRO AND SMALL ENTERPRISES 15. Liability of buyer to make payment. 16. Date from which and rate at which interest is payable. 1 ----- SECTIONS 17. Recovery of amount due. 18. Reference to Micro and small Enterprises Facilitation Council. 19. Application for setting aside decree, award or order. 20. Establishment of Micro and Small Enterprises Facilitation Council. 21. Composition of Micro and Small Enterprises Facilitation Council. 22. Requirement to specify unpaid amount with interest in the annual statement of accounts. 23. Interest not to be allowed as deduction from income. 24. Overriding effect. 25. Scheme for closure of business of micro, small and medium enterprises. CHAPTER VI MISCELLANEOUS 26. Appointment of Officers and other employees. 27. Penalty for contravention of section 8 or section 22 or section 26. 28. Jurisdiction of courts. 29. Power to make rules. 30. Power to make rules by State Government. 31. Power to remove difficulties. 32. Repeal of Act 32 of 1993. 2 ----- # THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006 ACT NO. 27 OF 2006 [16th June, 2006.] # An Act to provide for facilitating the promotion and development and enhancing the competitiveness of micro, small and medium enterprises and for matters connected therewith or incidental thereto. WHEREAS a declaration as to expediency of control of certain industries by the Union was made under section 2 of the Industries (Development and Regulation) Act, 1951; AND WHEREAS it is expedient to provide for facilitating the promotion and development and enhancing the competitiveness of micro, small and medium enterprises and for matters connected therewith or incidental thereto; BE it enacted by Parliament in the Fifty-seventh Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title and commencement.—(1) This Act may be called the Micro, Small and Medium** Enterprises Development Act, 2006. (2) It shall come into force on such date[1] as the Central Government may, by notification, appoint; and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “Advisory Committee” means the committee constituted by the Central Government under sub-section (2) of section 7; (b) “appointed day” means the day following immediately after the expiry of the period of fifteen days from the day of acceptance or the day of deemed acceptance of any goods or any services by a buyer from a supplier. _Explanation.—For the purposes of this clause,—_ (i) “the day of acceptance” means,— (a) the day of the actual delivery of goods or the rendering of services; or (b) where any objection is made in writing by the buyer regarding acceptance of goods or services within fifteen days from the day of the delivery of goods or the rendering of services, the day on which such objection is removed by the supplier; (ii) “the day of deemed acceptance” means, where no objection is made in writing by the buyer regarding acceptance of goods or services within fifteen days from the day of the delivery of goods or the rendering of services, the day of the actual delivery of goods or the rendering of services; (c) “Board” means the National Board for Micro, Small and Medium Enterprises established under section 3; (d) “buyer” means whoever buys any goods or receives any services from a supplier for consideration; 1. 2nd October, 2006, vide notification No. S.O. 1154(E) dated 18th July, 2006, see Gazette of India, Extraordinary Part II sec.3(ii). 3 ----- (e) “enterprise” means an industrial undertaking or a business concern or any other establishment, by whatever name called, engaged in the manufacture or production of goods, in any manner, pertaining to any industry specified in the First Schedule to the Industries (Development and Regulation) Act, 1951 (55 of 1951) or engaged in providing or rendering of any service or services; (f) “goods” means every kind of movable property other than actionable claims and money; (g) “medium enterprise” means an enterprise classified as such under sub-clause (iii) of clause (a) or sub-clause (iii) of clause (b) of sub-section (1) of section 7; (h) “micro enterprise” means an enterprise classified as such under sub-clause (i) of clause (a) or sub-clause (i) of clause (b) of sub-section (1) of section 7; (i) “National Bank” means the National Bank for Agriculture and Rural Development established under section 3 of the National Bank for Agriculture and Rural Development Act, 1981 (51 of 1981); (j) “notification” means a notification published in the Official Gazette; (k) “prescribed” means prescribed by rules made under this Act; (l) “Reserve Bank” means the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934); (m) “small enterprise” means an enterprise classified as such under sub-clause (ii) of clause (a) or sub-clause (ii) of clause (b) of sub-section (1) of section 7; (n) “supplier” means a micro or small enterprise, which has filed a memorandum with the authority referred to in sub-section (1) of section 8, and includes,— (i) the National Small Industries Corporation, being a company, registered under the Companies Act, 1956 (1 of 1956); (ii) the Small Industries Development Corporation of a State or a Union territory, by whatever name called, being a company registered under the Companies Act, 1956 (1 of 1956); (iii) any company, co-operative society, trust or a body, by whatever name called, registered or constituted under any law for the time being in force and engaged in selling goods produced by micro or small enterprises and rendering services which are provided by such enterprises; (o) “Small Industries Bank” means the Small Industries Development Bank of India established under sub-section (1) of section 3 of the Small Industries Development Bank of India Act, 1989 (39 of 1989); (p) “State Government”, in relation to a Union territory, means the Administrator thereof appointed under article 239 of the Constitution. CHAPTER II NATIONAL BOARDFOR MICRO, SMALLAND MEDIUM ENTERPRISES **3. Establishment of Board.—(1) With effect from such date as the Central Government may, by** notification, appoint, there shall be established, for the purposes of this Act, a Board to be known as the National Board for Micro, Small and Medium Enterprises. (2) The head office of the Board shall be at Delhi. (3) The Board shall consist of the following members, namely:— (a) the Minister in charge of the Ministry or Department of the Central Government having administrative control of the micro, small and medium enterprises who shall be the _ex officio_ Chairperson of the Board; (b) the Minister of State or a Deputy Minister, if any, in the Ministry or Department of the Central Government having administrative control of the micro, small and medium enterprises who shall be _ex officio Vice-Chairperson of the Board, and where there is no such Minister of State or Deputy_ 4 ----- Minister, such person as may be appointed by the Central Government to be the Vice-Chairperson of the Board; (c) six Ministers of the State Governments having administrative control of the departments of small scale industries or, as the case may be, micro, small and medium enterprises, to be appointed by the Central Government to represent such regions of the country as may be notified by the Central Government in this behalf, ex officio; (d) three Members of Parliament of whom two shall be elected by the House of the People and one by the Council of States; (e) the Administrator of a Union territory to be appointed by the Central Government, ex officio; (f) the Secretary to the Government of India in charge of the Ministry or Department of the Central Government having administrative control of the micro, small and medium enterprises, _ex_ _officio;_ (g) four Secretaries to the Government of India, to represent the Ministries of the Central Government dealing with commerce and industry, finance, food processing industries, labour and planning to be appointed by the Central Government, ex officio; (h) the Chairman of the Board of Directors of the National Bank, ex officio; (i) the chairman and managing director of the Board of Directors of the Small Industries Bank, ex _officio;_ (j) the chairman, Indian Banks Association, ex officio; (k) one officer of the Reserve Bank, not below the rank of an Executive Director,to be appointed by the Central Government to represent the Reserve Bank; (l) twenty persons to represent the associations of micro, small and midium enterprises, including not less than three persons representing associations of women's enterprises and not less than three persons representing associations of micro enterprises, to be appointed by the Central Government; (m) three persons of eminence, one each from the fileds of economics, industry and science and technology, not less than one of whom shall be a woman, to be appointed by the Central Government; (n) two representatives of Central Trade Union Organisations, to be appointed by the Central Government; and (o) one officer not below the rank of Joint Secretary to the Government of India in the Ministry or Department of the Central Government having administrative control of the micro, small and medium enterprises to be appointed by the Central Government, who shall be the Member-Secretary of the Board, ex officio. (4) The term of office of the members of the Board, other than ex officio members of the Board, the manner of filling vacancies, and the procedure to be followed in the discharge of their functions by the members of the Board, shall be such as may be prescribed: Provided that the term of office of an _ex officio member of the Board shall continue so long as he_ holds the office by virtue of which he is such a member. (5) No act or proceedings of the Board shall be invalid merely by reason of— (a) any vacancy in, or any defect in the constitution of, the Board; or (b) any defect in the appointment of a person acting as a member of the Board; or (c) any irregularity in the procedure of the Board not affecting the merits of the case. (6) The Board shall meet at least once in every three months in a year. (7) The Board may associate with itself, in such manner and for such purposes as it may deem necessary, any person or persons whose assistance or advice it may desire in complying with any of the 5 ----- provisions of this Act and a person so associated shall have the right to take part in the discussions of the Board relevant to the purposes for which he has been associated but shall not have the right to vote. (8) Without prejudice to sub-section (7)the Chairperson of the Board shall, for not less than two of the meetings of the Board in a year, invite such Ministers of the State Governments having administrative control of the departments of small scale industries or, as the case may be, the micro, small and medium enterprises, or the Administrators of Union territories and representatives of such other associations of micro, small and medium enterprises, as he may deem necessary for carrying out the purposes of this Act. (9) It is hereby delcared that the office of member of the Board shall not disqualify its holder for being chosen as, or for being, a member of either House of Parliament. **4. Removal of member from Board.—(1) The Central Government may remove a member of the** Board from it, if he— (a) is, or at any time has been, adjudged as insolvent; or (b) is, or becomes, of unsound mind and stands so declared by a competent court; or (c) refuses to act or becomes incapable of acting as a member of the Board; or (d) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or (e) has so abused, in the opinion of the Central Government, his position as a member of the Board as to render his continuance in the Board detrimental to the interests of the general public. (2) Notwithstanding anything contained in sub-section (1), no member shall be removed from his office on the grounds specified in clauses (c) to (e) of that sub-section unless he has been given a reasonable opportunity of being heard in the matter. **5. Functions of Board.—The Board shall, subject to the general directions of the Central** Government, perform all or any of the following functions, namely:— (a) examine the factors affecting the promotion and development of micro, small and medium enterprises and review the policies and programmes of the Central Government in regard to facilitating the promotion and development and enhancing the competitiveness of such enterprises and the impact thereof on such enterprises; (b) make recommendations on matters referred to in clause (a) or on any other matter referred to it by the Central Government which, in the opinion of that Government, is necessary or expedient for facilitating the promotion and development and enhancing the competitiveness of the micro, small and medium enterprises; and (c) advise the Central Government on the use of the Fund or Funds constituted under section 12. **6. Powers and functions of Member-Secretary of Board.—Subject to other provisions of this Act,** the Member-Secretary of the Board shall exercise such powers and perform such functions as may be prescribed. CHAPTER III CLASSIFICATION OF ENTERPRISES, ADVISORY COMMITTEE AND MEMORANDUM OF MICRO, SMALL AND MEDIUM ENTERPRISES **7. Classification of enterprises.—(1) Notwithstanding anything contained in section 11B of the** Industries (Development and Regulation) Act, 1951 (65 of 1951),the Central Government may, for the purposes of this Act, by notification and having regard to the provisions of sub-sections (4) and (5), classify any class or classes of enterprises, whether proprietorship, Hindu undivided family, association of persons, co-operative society, partnership firm, company or undertaking, by whatever name called,— (a) in the case of the enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the First Schedule to the Industries (Development and Regulation) Act, 1951 (65 of 1951),as— 6 ----- (i) a micro enterprise, where the investment in plant and machinery does not exceed twenty five lakh rupees; (ii) a small enterprise, where the investment in plant and machinery is more than twenty-five lakh rupees but does not exceed five crore rupees; or (iii) a medium enterprise, where the investment in plant and machinery is more than five crore rupees but does not exceed ten crore rupees; (b) in the case of the enterprises engaged in providing or rendering of services, as— (i) a micro enterprise, where the investment in equipment does not exceed ten lakh rupees; (ii) a small enterprise, where the investment in equipment is more than ten lakh rupees but does not exceed two crore rupees; or (iii) a medium enterprise, where the investment in equipment is more than two crore rupees but does not exceed five crore rupees. _Explanation 1.—For the removal of doubts, it is hereby clarified that in calculating the investment in_ plant and machinery, the cost of pollution control, research and development, industrial safety devices and such other items as may be specified, by notification, shall be excluded. _Explanation 2.—It is clarified that the provisions of section 29B of the Industries (Development and_ Regulation) Act, 1951 (65 of 1951), shall be applicable to the enterprises specified in sub-clauses (i) and (ii) of clause (a) of sub-section (1) of this section. (2) The Central Government shall, by notification, constitute an Advisory Committee consisting of the following members, namely:— (a) the Secretary to the Government of India in the Ministry or Department of the Central Government having administrative control of the small and medium enterprises who shall be the Chairperson, ex officio; (b) not more than five officers of the Central Government possessing necessary expertise in matters relating to micro, small and medium enterprises, members, ex officio; (c) not more than three representatives of the State Governments, members, ex officio; and (d) one representative each of the associations of micro, small and medium enterprises, members, _ex officio._ (3) The Member-Secretary of the Board shall also be the ex officio Member-Secretary of the Advisory Committee. (4) The Central Government shall, prior to classifying any class or classes of enterprises under sub-section (1), obtain the recommendations of the Advisory Committee. (5) The Advisory Committee shall examine the matters referred to it by the Board in connection with any subject referred to in section 5 and furnish its recommendations to the Board. (6) The Central Government may seek the advice of the Advisory Committee on any of the matters specified in section 9, 10, 11, 12 or 14 of Chapter IV. (7) The State Government may seek advice of the Advisory Committee on any of the matters specified in the rules made under section 30. (8) The Advisory Committee shall, after considering the following matters, communicate its recommendations or advice to the Central Government or, as the case may be, State Government or the Board, namely:— (a) the level of employment in a class or classes of enterprises; (b) the level of investments in plant and machinery or equipment in a class or classes of enterprises; 7 ----- (c) the need of higher investment in plant and machinery or equipment for technological upgradation, employment generation and enhanced competitiveness of the class or classes of enterprises; (d) the possibility of promoting and diffusing entrepreneurship inmicro, small or medium enterprises; and (e) the international standards for classification of small and medium enterprises. (9) Notwithstanding anything contained in section 11B of the Industries (Development and Regulation) Act, 1951 (65 of 1951) and clause (h) of section 2 of the Khadi and Village Industries Commission Act, 1956 (61 of 1956),the Central Government may, while classifying any class or classes of enterprises under sub-section (1), vary, from time to time, the criterion of investment and also consider criteria or standards in respect of employment or turnover of the enterprises and include in such classification the micro or tiny enterprises or the village enterprises, as part of small enterprises. **8. Memorandum of micro, small and medium enterprises.—(1) Any person who intends to** establish,— (a) a micro or small enterprise, may, at his discretion; or (b) a medium enterprise engaged in providing or rendering of services may, at his discretion; or (c) a medium enterprise engaged in the manufacture or production of goods pertaining to any industry specified in the First Schedule to the Industries (Development and Regulation) Act, 1951 (65 of 1951), shall file the memorandum of micro, small or, as the case may be, of medium enterprise with such authority as may be specified by the State Government under sub-section (4) or the Central Government under sub-section (3): Provided that any person who, before the commencement of this Act, established— (a) a small scale industry and obtained a registration certificate, may, at his discretion; and (b) an industry engaged in the manufacture or production of goods pertaining to any industry specified in the First Schedule to the Industries (Development and Regulation) Act, 1951 (65 of 1951),having investment in plant and machinery of more than one crore rupees but not exceeding ten crore rupees and, in pursuance of the notification of the Government of India in the erstwhile Ministry of Industry (Department of Industrial Development) number S.O. 477(E), dated the 25th July, 1991 filed an Industrial Entrepreneur's Memorandum, shall within one hundred and eighty days from the commencement of this Act, file the memorandum, in accordance with the provisions of this Act. (2) The form of the memorandum, the procedure of its filing and other matters incidental thereto shall be such as may be notified by the Central Government after obtaining the recommendations of the Advisory Committee in this behalf. (3) The authority with which the memorandum shall be filed by a medium enterprise shall be such as may be specified, by notification, by the Central Government. (4) The State Government shall, by notification, specify the authority with which a micro or small enterprise may file the memorandum. (5) The authorities specified under sub-sections (3) and (4) shall follow, for the purposes of this section, the procedure notified by the Central Government under sub-section (2). 8 ----- CHAPTER IV MEASURES FOR PROMOTION, DEVELOPMENT AND ENHANCEMENT OF COMPETITIVENESS OF MICRO, SMALL AND MEDIUM ENTERPRISES **9.Measures for promotion and development.—The Central Government may, from time to time,** for the purposes of facilitating the promotion and development and enhancing the competitiveness of micro, small and medium enterprises, particularly of the micro and small enterprises, by way of development of skill in the employees, management and entrepreneurs, provisioning for technological upgradation,marketing assistance or infrastructure facilities and cluster development of such enterprises with a view to strengthening backward and forward linkages, specify, by notification, such programmes, guidelines or instructions, as it may deem fit. **10. Credit facilities.—The policies and practices in respect of credit to the micro, small and medium** enterprises shall be progressive and such as may be specified in the guidelines or instructions issued by the Reserve Bank, from time to time, to ensure timely and smooth flow of credit tosuch enterprises, minimise the incidence of sickness among and enhance the competitiveness of such enterprises. **11. Procurement preference policy.—For facilitating promotion and development of micro and** small enterprises, the Central Government or the State Government may, by order notify from time to time, preference policies in respect of procurement of goods and services, produced and provided by micro and small enterprises, by its Ministries or departments, as the case may be, or its aided institutions and public sector enterprises. **12. Funds.—There shall be constituted, by notification, one or more Funds to be called by such name** as may be specified in the notification and there shall be credited thereto any grants made by the Central Government under section 13. **13. Grants by Central Government.—The Central Government may, after due appropriation made** by Parliament by law in this behalf, credit to the Fund or Funds by way of grants for the purposes of this Act, such sums of money as that Government may consider necessary to provide. **14.Administration and utilisation of Fund or Funds.—(1) The Central Government shall have the** power to administer the Fund or Funds in such manner as may be prescribed. (2) The Fund or Funds shall be utilised exclusively for the measures specified in sub-section (1) of section 9. (3) The Central Government shall be responsible for the coordination and ensuring timely utilisation and release of sums in accordance with such criteria as may be prescribed. CHAPTER V DELAYED PAYMENTS TO MICRO AND SMALL ENTERPRISES **15.Liability of buyer to make payment.—Where any supplier supplies any goods or renders any** services to any buyer, the buyer shall make payment therefor on or before the date agreed upon between him and the supplier in writing or, where there is no agreement in this behalf, before the appointed day: Provided that in no case the period agreed upon between the supplier and the buyer in writing shall exceed forty-five days from the day of acceptance or the day of deemed acceptance. **16.Date from which and rate at which interest is payable.—Where any buyer fails to make** payment of the amount to the supplier, as required under section 15, the buyer shall, notwithstanding anything contained in any agreement between the buyer and the supplier or in any law for the time being in force, be liable to pay compound interest with monthly rests to the supplier on that amount from the appointed day or, as the case may be, from the date immediately following the date agreed upon, at three times of the bank rate notified by the Reserve Bank. **17. Recovery of amount due.—For any goods supplied or services rendered by the supplier, the** buyer shall be liable to pay the amount with interest thereon as provided under section 16. 9 ----- **18.Reference to Micro and Small EnterprisesFacilitation Council.—(1) Notwithstanding anything** contained in any other law for the time being in force, any party to a dispute may, with regard to any amount due under section 17, make a reference to the Micro and Small Enterprises Facilitation Council. (2) On receipt of a reference under sub-section (1), the Council shall either itself conduct conciliation in the matter or seek the assistance of any institution or centre providing alternate dispute resolution services by making a reference to such an institution or centre, for conducting conciliation and the provisions of sections 65 to 81 of the Arbitration and Conciliation Act, 1996 (26 of 1996) shall apply to such a dispute as if the conciliation was initiated under Part III of that Act. (3) Where the conciliation initiated under sub-section (2) is not successful and stands terminated without any settlement between the parties, the Council shall either itself take up the dispute for arbitration or refer ittoany institution or centre providing alternate dispute resolution services for such arbitration and the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) shall then apply to the dispute as if the arbitration was in pursuance of an arbitration agreement referred to in sub-section(1) of section 7 of that Act. (4) Notwithstanding anything contained in any other law for the time being in force, the Micro and Small Enterprises Facilitation Council or the centre providing alternate dispute resolution services shall have jurisdiction to act as an Arbitrator or Conciliator under this section in a dispute between the supplier located within its jurisdiction and a buyer located anywhere in India. (5) Every reference made under this section shall be decided within a period of ninety days from the date of making such a reference. **19.Application for setting aside decree, award or order.—No application for setting aside any** decree, award or other order made either by the Council itself or by any institution or centre providing alternate dispute resolution services to which a reference is made by the Council, shall be entertained by any court unless the appellant (not being a supplier) has deposited with it seventy-five per cent. of the amount in terms of the decree, award or, as the case may be, the other order in the manner directed by such court: Provided that pending disposal of the application to set aside the decree, award or order, the court shall order that such percentage of the amount deposited shall be paid to the supplier, as it considers reasonable under the circumstances of the case, subject to such conditions as it deems necessary to impose. **20.Establishment of Micro and Small Enterprises Facilitation Council.—The State Government** shall, by notification, establish one or more Micro and Small Enterprises Facilitation Councils, at such places, exercising such jurisdiction and for such areas, as may be specified in the notification. **21. Composition of Micro and Small Enterprises Facilitation Council.—(1) The Micro and Small** Enterprise Facilitation Council shall consist of not less than three but not more than five members to be appointed from amongst the following categories, namely:— (i) Director of Industries, by whatever name called, or any other officer not below the rank of such Director, in the Department of the State Government having administrative control of the small scale industries or, as the case may be, micro, small and medium enterprises; and (ii) one or more office-bearers or representatives of associations of micro or small industry or enterprises in the State; and (iii) one or more representatives of banks and financial institutions lending to micro or small enterprises; or (iv) one or more persons having special knowledge in the field of industry, finance, law, trade or commerce. (2) The person appointed under clause (i) of sub-section (1) shall be the Chairperson of the Micro and Small Enterprises Facilitation Council. 10 ----- (3) The composition of the Micro and Small Enterprises Facilitation Council, the manner of filling vacancies of its members and the procedure to be followed in the discharge of their functions by the members shall be such as may be prescribed by the State Government. **22.Requirement to specify unpaid amount with interest in the annual statement of accounts.—** Where any buyer is required to get his annual accounts audited under any law for the time being in force, such buyer shall furnish the following additional information in his annual statement of accounts, namely:— (i)the principal amount and the interest due thereon (to be shown separately) remaining unpaid to any supplier as at the end of each accounting year; (ii) the amount of interest paid by the buyer in terms of section 16, along with the amount of the payment made to the supplier beyond the appointed day during each accounting year; (iii) the amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under this Act; (iv) the amount of interest accrued and remaining unpaid at the end of each accounting year; and (v) the amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprise, for the purpose of disallowance as a deductible expenditure under section 23. **23.Interest not to be allowed as deduction from income.—Notwithstanding anything contained in** the Income-tax Act, 1961 (43 of 1961), the amount of interest payable or paid by any buyer, under or in accordance with the provisions of this Act, shall not, for the purposes of computation of income under the Income-tax Act, 1961, be allowed as deduction. **24.Overriding effect.—The provisions of sections 15 to 23 shall have effect notwithstanding** anything inconsistent therewith contained in any other law for the time being in force. **25.Scheme for closure of business of micro, small and medium enterprises.—Notwithstanding** anything contained in any law for the time being in force, the Central Government may, with a view to facilitating closure of business by a micro, small or medium enterprise, not being a company registered under the Companies Act, 1956 (1 of 1956), notify a Scheme within one year from the date of commencement of this Act. CHAPTER VI MISCELLANEOUS **26.Appointment of officers and other employees.—(1) The Central Government or the State** Government may appoint such officers with such designations and such other employees as it thinks fit for the purposes of this Act and may entrust to them such of the powers and functions under this Act as it may deem fit. (2) The Officers appointed under sub-section (1) may, for the purposes of this Act, by order require any person to furnish such information, in such form, as may be prescribed. **27.Penalty for contravention of section 8 or section 22 or section 26.—(1) Whoever intentionally** contravenes or attempts to contravene or abets the contravention of any of the provisions contained in sub-section (1) of section 8 or sub-section (2) of section 26 shall be punishable— (a) in the case of the first conviction, with fine which may extend to rupees one thousand; and (b) in the case of second or subsequent conviction, with fine which shall not be less than rupees one thousand but may extend to rupees ten thousand. (2) Where a buyer contravenes the provisions of section 22, he shall be punishable with fine which shall not be less than rupees ten thousand. 11 ----- **28.Jurisdiction of courts.—No court inferior to that of a Metropolitan Magistrate or a Magistrate of** the first class shall try any offence punishable under this Act. **29. Power to make rules.—(1) The Central Government may, by notification, make rules to carry** out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the term of office of the members of the Board, the manner of filling vacancies, and the procedure to be followed in the discharge of functions by the members of the Board under sub-section (4) of section 3; (b) the powers and functions of the Member-Secretary under section 6; (c) the manner in which the Fund may be administered under sub-section (1) of section 14; (d) the criteria based on which sums may be released under sub-section (3) of section 14; (e) the information to be furnished and the form in which it is to be furnished under sub-section (2) of section 26; and (f) any other matter which is to be or may be prescribed under this Act. (3) Every notification issued under section 9 and every rule made by the Central Government under this section shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the notification or rule or both Houses agree that the notification or rule should not be made, the notification or rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that notification or rule. **30.Power to make rules by State Government.—(1) The State Government may, by notification,** make rules to carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the composition of the Micro and Small Enterprises Facilitation Council, the manner of filling vacancies of the members and the procedure to be followed in the discharge of their functions by the members of the Micro and Small Enterprises Facilitation Council under sub-section (3) of section 21; (b) any other matter which is to be, or may be, prescribed under this Act. (3) The rule made under this section shall, as soon as may be after it is made, be laid before each House of the State Legislature where there are two Houses, and where there is one House of the State Legislature, before that House. **31. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty: Provided that no order shall be made under this section after the expiry of two years from the commencement of this Act. (2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament. 12 ----- **32.Repeal of Act 32 of 1993.—(1) The Interest on Delayed Payments to Small Scale and Ancillary** Industrial Undertakings Act, 1993is hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken under the Act so repealed under sub-section (1), shall be deemed to have been done or taken under the corresponding provisions of this Act. 13 -----

13-Jul-2006

28

The National Institute of Fashion Technology Act, 2006

https://www.indiacode.nic.in/bitstream/123456789/2031/1/200628.pdf

central

# THE NATIONAL INSTITUTE OF FASHION TECHNOLOGY ACT, 2006 ___________ ARRANGEMENT OF SECTIONS ___________ CHAPTER I PRELIMINARY SECTIONS 1. Short title and commencement. 2. Definitions. CHAPTER II THE INSTITUTE 3. Establishment of the Institute. 4. Vesting of properties. 5. Effect of incorporation of Institute. 6. Functions of Institute. 7. Powers of Board. 8. Institute be open to all races, creeds and classes. 9. Teaching at Institute. 10. Visitor. 11. Authorities of Institute. 12. Senate. 13. Functions of Senate. 14. Functions, powers and duties of Chairperson. 15. Director-General. 16. Registrar. 17. Powers and duties of other authorities and officers. 18. Grants by Central Government. 19. Fund by Institute. 20. Setting up of endowment fund. 21. Accounts and audit. 22. Pension and provident fund. 23. Appointment. 24. Statutes. 25. Statutes how made. 26. Ordinances. 27. Ordinances how made. 28. Tribunal of Arbitration 1 ----- CHAPTER III MISCELLANEOUS SECTIONS 29. Acts and proceedings not to be invalidated by vacancies, etc. 30. Sponsored schemes. 31. Power of Institute to grant degrees, etc. 32. Powers to remove difficulties. 33. Transitional provisions. 34. Statutes and Ordinances to be published in the Official Gazette and to be laid before Parliament. 2 ----- # THE NATIONAL INSTITUTE OF FASHION TECHNOLOGY ACT, 2006 ACT NO. 28 OF 2006 [13th July, 2006.] # An Act to establish and incorporate the National Institute of Fashion Technology for the promotion and development of education and research in fashion technology and for matters connected therewith and incidental thereto. BE it enacted by Parliament in the Fifty-seventh Year of the Republic of India as follows:— CHAPTER I PREMILINARY **1. Short title and commencement.—(1) This Act may be called the National Institute of Fashion** Technology Act, 2006. (2) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “appointed day” means the date of establishment of the National Institute of Fashion Technology under sub-section (1) of section 3; (b) “Board" means the Board of Governors of the Institute constituted under sub-section (3) of section 3; (c) “Chairperson” means the Chairperson of the Institute nominated under clause (a) of sub-section (3) of section 3; (d) “Director-General” means the Director-General of the Institute appointed under section 15; (e) “fashion” includes a popular trend or a lifestyle, specially in styles of dress and ornament or manners of behaviour or the business of creating, promoting or studying styles in vogue or the designing, production and marketing of new styles of goods such as, clothing, accessories, craft and cosmetics; and the words “fashion technology” with their grammatical variations and cognate expressions, shall be construed accordingly; (f) “Fund” means the Fund of the Institute to be maintained under section 19; (g) “Institute” means the National Institute of Fashion Technology established under sub-section (1) of section 3; (h) “Institute Campus” means an Institute Campus located at New Delhi, Gandhinagar, Chennai, Mumbai, Hyderabad, Bangalore, Kolkata or any other place in India or abroad as may be decided by the Board of Governors; 1. 1st April, 2007, vide notification No. S.O. 2159(E), dated 27th December, 2006, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 3 ----- (i) “Senate” means the Senate of the Institute referred to in section 12; (j) “Society” means the National Institute of Fashion Technology, New Delhi registered as a society under the Societies Registration Act, 1860 (21 of 1860); (k) “Statutes and Ordinances” mean respectively the Statutes and the Ordinances of the Institute made under this Act. CHAPTER II THE INSTITUTE **3. Establishment of the Institute.—(1) With effect from such date as the Central Government may,** by notification in the Official Gazette appoint, the National Institute of Fashion Technology shall be established as a body corporate by the name aforesaid. (2) The Institute shall have perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property and to contract, and shall, by that name, sue or be sued. (3) The Institute shall consist of the Board of Governors having the following persons, namely:— (a) a Chairperson, who shall be an eminent academician, scientist or technologist or professional, to be nominated by the Visitor; (b) three Members of Parliament, two from Lok Sabha to be nominated by the Speaker of Lok Sabha and one from Rajya Sabha to be nominated by the Chairman of Rajya Sabha; (c) the Director-General of the Institute, ex officio; (d) the Financial Adviser of the Ministry or Department in the Government of India dealing with the National Institute of Fashion Technology, ex officio; (e) the Joint Secretary, in the Ministry or Department in the Government of India dealing with the National Institute of Fashion Technology, ex officio; (f) the representative of the Ministry or Department in the Government of India dealing with higher education to be nominated by the Secretary of that Ministry or Department, ex officio; (g) five persons to be nominated by the Central Government, representing the States in which the campus of the Institute is located, from amongst persons who are academicians or industrialists of repute engaged in area of fashion technology; and (h) two eminent experts in fashion technology, one of whom shall be an educationist, to be nominated by the Visitor on the recommendations of the Central Government. (4) The term of office of the Chairperson and other members of the Board other than _ex officio_ members thereof shall be three years and they shall be entitled for such allowances as may be determined by the Central Government. (5) The term of office of members of the Board nominated to fill a casual vacancy shall continue for the remainder of the term of the member in whose place he has been nominated. (6) The Board shall meet at least four times in a year at such place and time and observe such rules of procedure in regard to the transaction of business at its meetings as may be determined by the Board. 4 ----- (7) It is hereby declared that the office of member of the Board of Governors shall not disqualify its holder for being chosen as, or for being, a member of either House of Parliament. **4.Vesting of properties.—On and from the appointed day, subject to the other provisions of this Act,** all properties which had vested in the Society, immediately before the commencement of this Act, shall on and from such commencement, vest in the Institute. **5. Effect of incorporation of Institute.—On and from the appointed day—** (a) any reference to the Society in any contract or other instrument shall be deemed as a reference to the Institute; (b) all the rights and liabilities of the Society shall be transferred to, and be the rights and liabilities of, the Institute; and (c) every person employed by the Society, immediately before the appointed day, shall hold office or service in the Institute by the same tenure, at the same remuneration and upon the same terms and conditions and with the same rights and privileges as to pension, leave, gratuity, provident fund and other matters as he would have held the same, if this Act had not been passed, and shall continue to be so, unless and until his employment is terminated or until such tenure, remuneration, terms and conditions are duly altered by the Statutes: Provided that if the alteration so made is not acceptable to such employee, his employment may be terminated by the Institute in accordance with the terms of the contract with the employee or, if no provision is made therein in this behalf, on payment to him by the Institute of compensation equivalent to three months remuneration in the case of permanent employee and one month’s remuneration in the case of other employee. **6. Functions of Institute.—The functions of the Institute shall be—** (i) to nurture and promote quality and excellence in education and research in area of fashion technology; (ii) to lay down courses leading to graduate and post-graduate degrees, doctoral and post-doctoral courses and research in area of fashion technology; (iii) to hold examinations and grant degrees in area of fashion technology; (iv) to confer honorary degrees, awards or other distinctions in area of fashion technology; (v) to cooperate with educational or other institutions in any part of the world having objects wholly or partly similar to those of the Institute by exchange of faculty members and scholars and generally in such manner as may be conducive to their common objective; (vi) to conduct courses for teachers, fashion technologists and other professionals; (vii) to undertake research and studies in area of fashion technology and application thereof, particularly concerning the integration of locally produced materials, the requirements of mass production, improved quality and design and international marketing; (viii) to collect and maintain literature and materials available in area of fashion technology so as to develop a modern information centre within the country; 5 ----- (ix) to create a central faculty of fashion technology resource and analysis for use by the researchers; (x) to have a centre to experiment and innovate and to train persons in the area of fashion technology; (xi) to develop an international centre for creation and transmission of information in the area of fashion technology, with focus on educational, professional and industrial commitments; (xii) to develop a multi-disciplinary approach in carrying out research and training in area of fashion technology so that the larger interests of the profession, academia and fashion industry are better served; (xiii) to organise national or international symposia, seminars, conferences and exhibitions in selected area of fashion technology, from time to time; (xiv) to arrange courses catering to the special needs of the developing countries; (xv) to act as a nucleus for interaction between academia and industry by encouraging exchange of fashion technologists and other technical staff between the Institute and the industry and by undertaking sponsored and funded research as well as consultancy projects by the Institute; (xvi) to provide technical assistance to artisans, craftsmen, manufacturers, designers and exporters of fashion products; and (xvii) to carry out any other activity in the area of fashion technology not specifically listed above. **7. Powers of Board.—(1) Subject to the provisions of this Act, the Board, under overall control of** the Central Government, shall be responsible for the general superintendence, direction and control of the affairs of the Institute and shall exercise all the powers not otherwise provided for by this Act, the Statutes and the Ordinances, and shall have the power to review the acts of the Senate. (2) Without prejudice to the provisions of sub-section (1), the Board shall— (a) take decisions on questions of policy relating to the administration and working of the Institute; (b) take decisions on the establishment of new campuses of the Institute at any location in India or abroad; (c) fix, demand and receive fees and other charges; (d) establish, maintain and manage halls and hostels for the residence of the students; (e) supervise and control the residence and regulate the discipline of students of the Institute and to make arrangements for promoting their health, general welfare and cultural and corporate life; (f) institute academic and other posts and to make appointments thereto (except in the case of the Director-General); (g) frame Statutes and Ordinances and to alter, modify or rescind the same; (h) institute and award fellowships, scholarships, prizes and medals; 6 ----- (i) consider and pass resolutions on the annual report, the annual accounts and the budget estimates of the Institute for the next financial year as it thinks fit together with a statement of its development plans; (j) receive gifts, grants, donations or benefactions from the Government and to receive bequests, donations and transfers of movable or immovable properties from the testators, donors or transferors, as the case may be; and (k) do all such things as may be necessary, incidental or conducive to the attainment of all or any of the aforesaid powers. (3) The Board shall have the power to appoint such committees, as it considers necessary for the exercise of its powers and the performance of its duties under this Act. (4) Notwithstanding anything contained in sub-section (2) of section 3, the Board shall not dispose of in any manner any immovable property without the prior approval of the Central Government. (5) The Central Government may appoint one or more persons to review the work and progress of the Institute and to hold inquiries into the affairs thereof and to report thereon in such manner as the Central Government may direct. (6) Upon receipt of any such report, the Central Government may take such action and issue such directions as it considers necessary in respect of any of the matters dealt with in the report and the Institute shall be bound to comply with such directions. (7) The Visitor shall have the power to remove the Chairperson or other members of the Board nominated by him, on the recommendations of the Central Government. (8) The Central Government shall have the power to remove other members, if it considers it appropriate to do so. (9) No Chairperson or member shall be removed under sub-section (7) or sub-section (8) unless he has been given a reasonable opportunity of being heard in the matter. **8. Institute be open to all races, creeds and classes.—(1) The Institute shall be open to persons of** either sex and of whatever race, creed, caste or class, and no test or condition shall be imposed as to religious belief or profession in admitting or appointing members, students, teachers or workers or in any other connection whatsoever. (2) No bequest, donation or transfer of any property shall be accepted by the Institute, which in the opinion of the Board involves conditions or obligations opposed to the spirit and object of this section. **9. Teaching at Institute.—All teaching at the campuses of the Institute shall be conducted by or in** the name of the Institute in accordance with the Statutes and the Ordinances made in this behalf. **10. Visitor.—The President of India shall be the Visitor of the Institute.** **11. Authorities of Institute.—The following shall be the authorities of the Institute, namely:—** (a) a Board of Governors; (b) a Senate; and (c) such other authorities as may be declared by the Statutes to be the authorities of the Institute. 7 ----- **12. Senate.—The Senate of the Institute shall consist of the following persons, namely:—** (a) the Director-General, ex officio who shall be the Chairperson of the Senate; (b) all Institute Campus Directors and Senior Professors; (c) three persons, not being employees of the Institute, to be nominated by the Chairperson in consultation with the Director-General, from amongst educationists of repute, one each from the fields of science, engineering and humanities and one of them shall be either from the Scheduled Castes or the Scheduled Tribes; (d) one alumnus of the Institute to be nominated by the Chairperson in consultation with the Director-General by rotation; and (e) such other members of the staff as may be laid down in the Statutes. **13. Functions of Senate.—Subject to the provisions of this Act, the Statutes and the Ordinances, the** Senate of the Institute shall have the control and general regulation, and be responsible for the maintenance of standards of instruction, education and examination in the Institute and shall exercise such other powers and perform such other duties as may be conferred or imposed upon it by the Statutes. **14. Functions, powers and duties of Chairperson.—(1) The Chairperson shall ordinarily preside at** the meetings of the Board and at the Convocations of the Institute. (2) The Chairperson shall exercise such other powers and perform such other duties as may be assigned to him by this Act or the Statutes. **15. Director-General.—(1) The Director-General of the Institute shall be appointed by the Board** with the prior approval of the Central Government for a tenure of three years. (2) The Director-General shall be the principal executive officer of the Institute and shall be responsible for the proper administration of the Institute and for imparting of instruction and maintenance of discipline therein. (3) The Director-General shall submit annual reports and accounts to the Board. (4) The Director-General shall exercise such other powers and perform such other duties as may be assigned to him by this Act, Statutes and Ordinances. (5) The Central Government shall have the power to remove the Director-General before the tenure of three years, if it considers it appropriate to do so. **16. Registrar.—(1) The Registrar of the Institute shall be appointed on such terms and conditions as** may be laid down by the Statutes and shall be the custodian of records, the common seal, the funds of the Institute and such other property of the Institute as the Board shall commit to his charge. (2) The Registrar shall act as the Secretary of the Board, the Senate and such committees as may be prescribed by the Statutes. (3) The Registrar shall be responsible to the Director-General for the proper discharge of his functions. (4) The Registrar shall exercise such other powers and perform such other duties as may be assigned to him by this Act or the Statutes or by the Director-General. 8 ----- **17. Powers and duties of other authorities and officers.—The powers and duties of authorities and** officers, other than those hereinbefore mentioned, shall be determined by the Statutes. **18. Grants by Central Government.—For the purpose of enabling the Institute to discharge its** functions efficiently under this Act, the Central Government may, after due appropriation made by Parliament by law in this behalf, pay to the Institute in each financial year such sums of money and in such manner as it may think fit. **19. Fund of Institute.—(1) The Institute shall maintain a Fund to which shall be credited—** (a) all moneys provided by the Central Government; (b) all fees and other charges received by the Institute; (c) all moneys received by the Institute by way of grants, gifts, donations, benefactions, bequests or transfers; and (d) all moneys received by the Institute in any other manner or from any other source. (2) All moneys credited to the Fund shall be deposited in such banks or invested in such manner as the Institute may, with the approval of the Central Government, decide. (3) The fund shall be applied towards meeting the expenses of the Institute including expenses incurred in the exercise of its powers and discharge of its duties under this Act. **20. Setting up of endowment fund.—Notwithstanding anything contained in section 19, the Central** Government may direct the Institute to— (a) set up an endowment fund and any other fund for specified purpose; and (b) transfer money from its Fund to endowment fund or any other fund. **21. Accounts and audit.—(1) The Institute shall maintain proper accounts and other relevant records** and prepare an annual statement of accounts, including the balance-sheet, in such form as may be specified, in accordance with such general directions as may be issued by the Central Government in consultation with the Comptroller and Auditor-General of India. (2) The accounts of the Institute shall be audited by the Comptroller and Auditor-General of India and any expenditure incurred by him in connection with such audit shall be payable by the Institute to the Comptroller and Auditor-General of India. (3) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Institute shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General of India, generally has in connection with the audit of the Government accounts, and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Institute. (4) The accounts of the Institute as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf, together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament. 9 ----- **22. Pension and provident fund.—(1) The Institute shall constitute, for the benefit of its employees,** including the Director-General, in such manner and subject to such conditions as may be prescribed by the Statutes, such pension, insurance and provident funds as it may consider necessary. (2) Where any such provident fund has been so constituted, the Central Government may declare that the provisions of the Provident Funds Act, 1925 (19 of 1925) shall apply to such fund as if it were a Government Provident Fund. **23. Appointment.—All appointments of the staff of the Institute, except that of the Director-** General, shall be made in accordance with the procedure laid down in the Statutes by— (a) the Board, if the appointment is made on the academic staff in the post of Assistant Professor or above or if the appointment is made on the non-academic staff in any cadre, the maximum of the pay-scale for which is the same or higher than that of Assistant Professor; and (b) the Director-General, in any other case. **24. Statutes.—Subject to the provisions of this Act, the Statutes may provide for all or any of the** following matters, namely:— (a) the formation of departments of teaching; (b) the institution of fellowships, scholarships, exhibitions, medals and prizes; (c) the classification, the method of appointment and the determination of the terms and conditions of service of officers, teachers and other staff of the Institute; (d) the reservation of posts for the Scheduled Castes, the Scheduled Tribes and other backward categories of persons as may be determined by the Central Government; (e) the constitution of pension, insurance and provident funds for the benefit of the officers, teachers and other staff of the Institute; (f) the constitution, powers and duties of the authorities of the Institute; (g) the establishment and maintenance of halls and hostels; (h) the manner of filling up of vacancies among members of the Board; (i) the authentication of the orders and decisions of the Board; (j) the meetings of the Senate, the quorum at such meetings and the procedure to be followed in the conduct of their business; and (k) any other matter which by this Act is to be or may be prescribed by the Statutes. **25.Statutes how made.—(1) The first Statutes of the Institute shall be framed by the Board with the** previous approval of the Visitor and a copy of the same shall be laid as soon as may be before each House of Parliament. (2) The Board may, from time to time, make new or additional Statutes or may amend or repeal the Statutes in the manner hereafter in this section provided. 10 ----- (3) Every new Statute or addition to the Statute or any amendment or repeal of a Statute shall require the previous approval of the Visitor who may assent thereto or withhold assent or remit it to the Board for consideration. (4) A new Statute or a Statute amending or repealing an existing Statute shall have no validity unless it has been assented to by the Visitor. **26. Ordinances.—Subject to the provisions of this Act and the Statutes, the Ordinances of the** Institute may provide for all or any of the following matters, namely:— (a) the admission of the students to the Institute; (b) the reservation for the Scheduled Castes, the Scheduled Tribes and other backward categories of persons; (c) the courses of study to be laid down for all degrees, diplomas and certificates of the Institute; (d) the conditions under which students shall be admitted to the degree, diploma and certificate courses and to the examinations of the Institute and award of degrees, diplomas and certificates; (e) the conditions for award of fellowships, scholarships, exhibitions, medals and prizes; (f) the conditions and mode of appointment and duties of examining body, examiners and moderators; (g) the conduct of examinations; (h) the maintenance of discipline among the students of the Institute; (i) the fees to be charged for courses of study in the Institute and for admission to the examinations of degrees, diplomas and certificates of the Institute; (j) the conditions of residence of students of the Institute and the levying of the fees for residence in the halls and hostels and other charges; and (k) any other matter which by this Act or the Statutes is to be or may be provided for by the Ordinances. **27. Ordinances how made.—(1) Save as otherwise provided in this section, Ordinances shall be** made by the Senate. (2) All Ordinances made by the Senate shall have effect from such date as it may direct, but every Ordinance so made shall be submitted, as soon as may be, to the Board and shall be considered by the Board at its next succeeding meeting. (3) The Board shall have power by resolution to modify or cancel any such Ordinance and such Ordinance shall from the date of such resolution stand modified accordingly or cancelled, as the case may be. **28. Tribunal of Arbitration.—(1) Any dispute arising out of a contract between the Institute and any** of its employees shall, at the request of the employee concerned or at the instance of the Institute, be referred to a Tribunal of Arbitration consisting of one member appointed by the Institute, one member nominated by the employee and an umpire appointed by the Visitor. (2) The decision of the Tribunal of Arbitration shall be final and shall not be questioned in any court. 11 ----- (3) No suit or proceeding shall lie in any court in respect of any matter which is required by sub-section (1) to be referred to the Tribunal of Arbitration. (4) The Tribunal of Arbitration shall have power to regulate its own procedure. (5) Nothing in any law for the time being in force relating to arbitration shall apply to arbitration under this section. CHAPTER III MISCELLANEOUS **29. Acts and proceedings not to be invalidated by vacancies, etc.—No act of the Institute or Board** or Senate or any other body set up under this Act or the Statutes, shall be invalid merely by reason of— (a) any vacancy in, or defect in the constitution thereof; or (b) any defect in the election, nomination or appointment of a person acting as a member thereof; or (c) any irregularity in its procedure not affecting the merits of the case. **30. Sponsored schemes.—Notwithstanding anything contained in this Act, whenever the Institute** receives funds from any Government, the University Grants Commission or any other agency including industry sponsoring a research scheme or a consultancy assignment or a teaching programme or a chaired professorship or a scholarship, etc., to be executed or endowed at the Institute:— (a) the amount received shall be kept by the Institute separately from the Fund of the Institute and utilised only for the purpose of the scheme; and (b) the staff required to execute the same shall be recruited in accordance with the terms and conditions stipulated by the sponsoring organisations: Provided that any money remaining unutilised shall be transferred to the endowment fund created under section 20 of this Act. **31. Power of Institute to grant degrees, etc.—The Institute shall have the power to grant degrees,** diplomas, certificates and other academic distinctions under this Act, which shall be equivalent to such corresponding degrees, diplomas, certificates and other academic distinctions granted by any University or Institute established or incorporated under any other law for the time being in force. **32. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provision or give such direction not inconsistent with the purposes of this Act, as appears to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made after the expiry of two years from the appointed day. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. 12 ----- **33. Transitional provisions.—Notwithstanding anything contained in this Act—** (a) the Board of Governors of the Society functioning as such immediately before the commencement of this Act shall continue to so function until a new Board is constituted for the Institute under this Act, but on the constitution of a new Board under this Act the members of the Board holding office before such constitution shall cease to hold office; and (b) until the first Statutes and the Ordinances are made under this Act, the rules and regulations, instructions and guidelines of the Society as in force, immediately before the commencement of this Act, shall continue to apply to the Institute in so far as they are not inconsistent with the provisions of this Act. **34. Statutes and Ordinances to be published in the Official Gazette and to be laid before** **Parliament.—(1) Every Statute or Ordinance made under this Act shall be published in the Official** Gazette. (2) Every Statute or Ordinance made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the Statute or Ordinance or both Houses agree that the Statute or Ordinance should not be made, the Statute or Ordinance shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that Statute or Ordinance. (3) The power to make Statutes or Ordinances shall include the power to give retrospective effect from a date not earlier than the date of commencement of this Act to Statutes or Ordinances or any of them but no retrospective effect shall be given to any Statute or Ordinance so as to prejudicially affect the interests of any person to whom such Statutes or Ordinances may be applicable. 13 -----

23-Aug-2006

34

The Food Safety and Standards Act, 2006

https://www.indiacode.nic.in/bitstream/123456789/2027/1/AFOOD.pdf

central

# THE FOOD SAFETY AND STANDARDS ACT, 2006 ––––– ARRANGEMENT OF SECTIONS # ––––– CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Declaration as to expediency of control by the Union. 3. Definitions. CHAPTER II FOOD SAFETYAND STANDARDS AUTHORITY OF INDIA 4. Establishment of Food Safety and Standards Authority of India. 5. Composition of Food Authority and qualifications for appointment of its Chairperson and other Members. 6. Selection Committee for selection of Chairperson and Members of Food Authority. 7. Term of office, salary, allowances and other conditions of service of Chairperson and Members of Food Authority. 8. Removal of Chairperson and Members of Food Authority. 9. Officers and other employees of Food Authority. 10. Functions of the Chief Executive Officer. 11. Central Advisory Committee. 12. Functions of Central Advisory Committee. 13. Scientific Panels. 14. Scientific Committee. 15. Procedure for Scientific Committee and Scientific Panel. 16. Duties and functions of Food Authority. 17. Proceedings of Food Authority. CHAPTER III GENERAL PRINCIPLES OF FOOD SAFETY 18. General principles to be followed in administration of Act. CHAPTER IV GENERAL PROVISIONS AS TO ARTICLES OF FOOD 19. Use of food additive or processing aid. 20. Contaminants, naturally occurring toxic substances, heavy metals, etc. 21. Pesticides, veterinary drugs residues, antibiotic residues and microbiological counts. 22. Genetically modified foods, organic foods, functional foods, proprietary foods, etc. 23. Packaging and labelling of foods. 24. Restrictions of advertisement and prohibition as to unfair trade practices. ----- CHAPTER V PROVISIONS RELATING TO IMPORT SECTIONS 25. All imports of articles of food to be subject to this Act. CHAPTER VI SPECIAL RESPONSIBILITIES AS TO FOOD SAFETY 26. Responsibilities of the food business operator. 27. Liability of the manufacturers, packers, wholesalers, distributors and sellers. 28. Food recall procedures. CHAPTER VII ENFORCEMENT OF THE ACT 29. Authorities responsible for enforcement of Act. 30. Commissioner of Food Safety of the State. 31. Licensing and registration of food business. 32. Improvement notices. 33. Prohibition orders. 34. Emergency prohibition notices and orders. 35. Notification of food poisoning. 36. Designated Officer. 37. Food Safety Officer. 38. Powers of Food Safety Officer. 39. Liability of Food Safety Officer in certain cases. 40. Purchaser may have food analysed. 41. Power of search, seizure, investigation, prosecution and procedure thereof. 42. Procedure for launching prosecution. CHAPTER VIII ANALYSIS OF FOOD 43. Recognition and accreditation of laboratories, research institutions and referral food laboratory. 44. Recognition of organisation or agency for food safety audit. 45. Food Analysts. 46. Functions of Food Analyst. 47. Sampling and analysis. CHAPTER IX OFFENCES AND PENALTIES 48. General provisions relating to offences. 49. General provisions relating to penalty. 50. Penalty for selling food not of the nature or substance or quality demanded. 51. Penalty for sub-standard food. 52. Penalty for misbranded food. 53. Penalty for misleading advertisement. 54. Penalty for food containing extraneous matter. 55. Penalty for failure to comply with the directions of Food Safety Officer. 56. Penalty for unhygienic or unsanitary processing or manufacturing of food. ----- SECTIONS 57. Penalty for possessing adulterant. 58. Penalty for contraventions for which no specific penalty is provided. 59. Punishment for unsafe food. 60. Punishment for interfering with seized items. 61. Penalty for false information 62. Punishment for obstructing or impersonating a Food Safety Officer. 63. Penalty for carrying out a business without licence. 64. Punishment for subsequent offences. 65. Compensation in case of injury or death of consumer. 66. Offences by companies. 67. Penalty for contravention of provisions of this Act in case of import of articles of food to be in addition to penalties provided under any other Act. CHAPTER X ADJUDICATION AND FOOD SAFETY APPELLATE TRIBUNAL 68. Adjudication. 69. Power to compound offences. 70. Establishment of Food Safety Appellate Tribunal. 71. Procedure and powers of the Tribunal. 72. Civil court not to have jurisdiction. 73. Power of court to try cases summarily. 74. Special courts and Public Prosecutor. 75. Power to transfer cases to regular courts. 76. Appeal. 77. Time limit for prosecutions. 78. Power of court to implead manufacturer, etc. 79. Magistrate’s power to impose enhanced punishment. 80. Defences which may or may not be allowed in prosecution under this Act. CHAPTER XI FINANCE, ACCOUNTS, AUDIT AND REPORTS 81. Budget of Food Authority. 82. Finances of the Food Authority. 83. Accounts and audit of Food Authority. 84. Annual report of Food Authority. CHAPTER XII MISCELLANEOUS 85. Power of Central Government to issue directions to Food Authority and obtain reports and returns. 86. Power of Central Government to give directions to State Governments. 87. Members, officers of Food Authority and Commissioner of Food Safety to be public servants. 88. Protection of action taken in good faith. 89. Overriding effect of this Act over all other food related laws. 90. Transfer of existing employees of Central Government Agencies governing various foods related Acts or Orders to Food Authority. 91. Power of Central Government to make rules. 92. Power of Food Authority to make regulations. 93. Laying of rules and regulations before Parliament. 94. Power of State Government to make rules. ----- SECTIONS 95. Reward by State Government. 96. Recovery of penalty. 97. Repeal and savings. 98. Transitory provisions for food standards. 99. Milk and Milk Products Order, 1992 shall be deemed to be regulations made under this Act. 100. Amendments to the Infant Milk Substitutes, Feeding Bottles and Infant Foods (Regulation of Production, Supply and Distribution) Act, 1992. 101. Power to remove difficulties. THE FIRST SCHEDULE. THE SECOND SCHEDULE. ----- # THE FOOD SAFETY AND STANDARDS ACT, 2006 ACT NO. 34 OF 2006 [23rd August, 2006.] # An Act to consolidate the laws relating to food and to establish the Food Safety and Standards Authority of India for laying down science based standards for articles of food and to regulate their manufacture, storage, distribution, sale and import, to ensure availability of safe and wholesome food for human consumption and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-seventh Year of the Republic of India as follows:– CHAPTER I PRELIMINARY **1. Short title, extent and commencement.— (1) This Act may be called the Food Safety and** Standards Act, 2006. (2) It extends to the whole of India. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. **2. Declaration as to expediency of control by the Union.—It is hereby declared that it is expedient** in the public interest that the Union should take under its control the food industry. **3. Definitions.— (1) In this Act, unless the context otherwise requires,–** (a) “adulterant” means any material which is or could be employed for making the food unsafe or sub-standard or mis-branded or containing extraneous matter; (b) “advertisement” means any audio or visual publicity, representation or pronouncement made by means of any light, sound, smoke, gas, print, electronic media, internet or website and includes through any notice, circular, label, wrapper, invoice or other documents; (c) “Chairperson” means the Chairperson of the Food Authority; (d) “claim” means any representation which states, suggests, or implies that a food has particular qualities relating to its origin, nutritional properties, nature, processing, composition or otherwise; (e) “Commissioner of Food Safety” means the Commissioner of Food Safety appointed under section 30; (f) “consumer” means persons and families purchasing and receiving food in order to meet their personal needs; (g) “contaminant” means any substance, whether or not added to food, but which is present in 1. 15th October 2007 sections 4 to 10 (both inclusive), Sections 87, 88, 91 and 101 effective from 15th October 2007 _vide Notification No._ S.O.1758(E) see Gazette of India, extraordinary Part II, sec 3(ii). 28th May, 2008 (ss. 3 and 30), vide notification No. S.O. 1246(E), dated 28th May, 2008, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 28th August, 2008 (s. 90), vide notification No. S.O. 2127(E), dated 28th August, 2008, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 18th November, 2008 (ss. 16, 17, 18, 81, 82, 83, 84, 85, 86, 92 and 93), vide notification No. S.O. 2678(E), dated 18th November, 2008, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 9th March, 2009 (ss. 11, 12, 13, 14 and 15), vide notification No. S.O. 650(E), dated 9th March, 2009, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 31st July, 2009 Section 36 to 47 effective vide Notification No. S.O 1868(E) dated 31st July, 2009, see Gazette of India Extraordinary, Part II, sec 3(ii). 29th June, 2009 Section 99 to be effective vide Notification No. S.O. 1575(E) dated 29th June, 2009, see Gazette of India Extraordinary, Part II, sec 3(ii). 29th July, 2010 Sections 19 to 21, Sections 23 to 29, Sections 31 to 35, Sections 48 to 80, Section 89, Section 94 to 98 and Section 100 to be effective vide Notification No. S.O. 1855(E) dated 29th July, 2010, see Gazette of India Extraordinary, Part II, sec 3(ii) 18th August, 2010 Section 22 [except in respect of matters relating to the genetically engineered or modified food as explained in clause (2) of the Explanation] to be effective vide Notification No. S.O. 2038(E) dated 18th August, 2010, see Gazette of India Extraordinary, Part II, sec 3(ii). 2nd November 2021, Clause (2) of Explanation of section 22, to be effective vide Notification No. S.O. 4601(E) dated 2nd November, 2021, _see Gazette of India Extraordinary, Part II, sec 3(ii)_ ----- such food as a result of the production (including operations carried out in crop husbandry, animal husbandry or veterinary medicine), manufacture, processing, preparation, treatment, packing, packaging, transport or holding of such food or as a result of environmental contamination and does not include insect fragments, rodent hairs and other extraneous matter; (h) “Designated Officer” means the officer appointed under section 36; (i) “extraneous matter” means any matter contained in an article of food which may be carried from the raw materials, packaging materials or process systems used for its manufacture or which is added to it, but such matter does not render such article of food unsafe; (j) “Food” means any substance, whether processed, partially processed or unprocessed, which is intended for human consumption and includes primary food to the extent defined in clause (zk), genetically modified or engineered food or food containing such ingredients, infant food, packaged drinking water, alcoholic drink, chewing gum, and any substance, including water used into the food during its manufacture, preparation or treatment but does not include any animal feed, live animals unless they are prepared or processed for placing on the market for human consumption, plants, prior to harvesting, drugs and medicinal products, cosmetics, narcotic or psychotropic substances: Provided that the Central Government may declare, by notification in the Official Gazette, any other article as food for the purposes of this Act having regards to its use, nature, substance or quality; (k) “food additive” means any substance not normally consumed as a food by itself or used as a typical ingredient of the food, whether or not it has nutritive value, the intentional addition of which to food for a technological (including organoleptic) purpose in the manufacture, processing, preparation, treatment, packing, packaging, transport or holding of such food results, or may be reasonably expected to result (directly or indirectly), in it or its by-products becoming a component of or otherwise affecting the characteristics of such food but does not include “contaminants” or substances added to food for maintaining or improving nutritional qualities; (l) “Food Analyst” means an analyst appointed under section45; (m) “Food Authority” means the Food Safety and Standards Authority of India established under section 4; (n) “food business” means any undertaking, whether for profit or not and whether public or private, carrying out any of the activities related to any stage of manufacture, processing, packaging, storage, transportation, distribution of food, import and includes food services, catering services, sale of food or food ingredients; (o) “food business operator” in relation to food business means a person by whom the business is carried on or owned and is responsible for ensuring the compliance of this Act, rules and regulations made thereunder; (p) “food laboratory” means any food laboratory or institute established by the Central or a State Government or any other agency and accredited by National Accreditation Board for Testing and Calibration Laboratories or an equivalent accreditation agency and recognised by the Food Authority under section 43; (q) “food safety” means assurance that food is acceptable for human consumption according to its intended use; (r) “food safety audit” means a systematic and functionally independent examination of food safety measures adopted by manufacturing units to determine whether such measures and related results meet with objectives of food safety and the claims made in that behalf; (s) “Food Safety Management System” means the adoption Good Manufacturing Practices, Good Hygienic Practices, Hazard Analysis and Critical Control Point and such other practices as may be specified by regulation, for the food business; (t) “Food Safety Officer” means an officer appointed under section 37; (u) “hazard” means a biological, chemical or physical agent in, or condition of, food with the potential to cause an adverse health effect; (v) “import” means bringing into India any article of food by land, sea or air; ----- (w) “improvement notice” means a notice issued under section 32 of this Act; (x) “infant food” and “infant milk substitute” shall have the meanings assigned to them in clauses (f) and (g) of sub-section (1) of section 2 of the Infant Milk Substitutes, Feeding Bottles and Infant Foods (Regulation of Production, Supply and Distribution) Act, 1992 (41 of 1992), respectively; (y) “ingredient” means any substance, including a food additive used in the manufacture or preparation of food and present in the final product, possibly in a modified form; (z) “label” means any tag, brand, mark, pictorial or other descriptive matter, written, printed, stencilled, marked, embossed, graphic, perforated, stamped or impressed on or attached to container, cover, lid or crown of any food package and includes a product insert; (za) “licence” means a licence granted under section 31; (zb) “local area” means any area, whether urban or rural, notified by the Commissioner of Food Safety, to be a local area for the purposes of this Act; (zc) “manufacture” means a process or adoption or any treatment for conversion of ingredients into an article of food, which includes any sub-process, incidental or ancillary to the manufacture of an article of food; (zd) “manufacturer” means a person engaged in the business of manufacturing any article of food for sale and includes any person who obtains such article from another person and packs and labels it for sale or only labels it for such purposes; 1[(ze) “Member” includes a part-time Member and the Chairperson of the Food Authority;] (zf) “misbranded food” means an article of food– (A) if it is purported, or is represented to be, or is being– (i) offered or promoted for sale with false, misleading or deceptive claims either; (a) upon the label of the package, or (b) through advertisement, or (ii) sold by a name which belongs to another article of food; or (iii) offered or promoted for sale under the name of a fictitious individual or company as the manufacturer or producer of the article as borne on the package or containing the article or the label on such package; or (B) if the article is sold in packages which have been sealed or prepared by or at the instance of the manufacturer or producer bearing his name and address but– (i) the article is an imitation of, or is a substitute for, or resembles in a manner likely to deceive, another article of food under the name of which it is sold, and is not plainly and conspicuously labelled so as to indicate its true character; or (ii) the package containing the article or the label on the package bears any statement, design or device regarding the ingredients or the substances contained therein, which is false or misleading in any material particular, or if the package is otherwise deceptive with respect to its contents; or (iii) the article is offered for sale as the product of any place or country which is false; or (C) if the article contained in the package– (i) contains any artificial flavouring, colouring or chemical preservative and the package is without a declaratory label stating that fact or is not labelled in accordance with the requirements of this Act or regulations made thereunder or is in contravention thereof; or (ii) is offered for sale for special dietary uses, unless its label bears such information as may be specified by regulation, concerning its vitamins, minerals or other dietary properties in order sufficiently to inform its purchaser as to its value for such use; or (iii) is not conspicuously or correctly stated on the outside thereof within the limits of 1. Subs. by Act 13 of 2008, s. 2, for cl. (ze) (w.e.f. 7-2-2008). ----- variability laid down under this Act. (zg) “notification” means a notification published in the Official Gazette; (zh) “package” means a pre-packed box, bottle, casket, tin, barrel, case, pouch, receptacle, sack, bag, wrapper or such other things in which an article of food is packed; (zi) “premises” include any shop, stall, hotel, restaurant, airline services and food canteens, place or vehicle or vessel where any article of food is sold or manufactured or stored for sale; (zj) “prescribed” means prescribed by rules made by the Central Government or the State Government, as the case may be under this Act; (zk) “primary food” means an article of food, being a produce of agriculture or horticulture or animal husbandry and dairying or aquaculture in its natural form, resulting from the growing, raising, cultivation, picking, harvesting, collection or catching in the hands of a person other than a farmer or fisherman; (zl) “prohibition order” means an order issued under section 33 of this Act; (zm) “risk”, in relation to any article of food, means the probability of an adverse effect on the health of consumers of such food and the severity of that effect, consequential to a food hazard; (zn) “risk analysis”, in relation to any article of food, means a process consisting of three components, i.e. risk assessment, risk management and risk communication; (zo) “risk assessment” means a scientifically based process consisting of the following steps: (i) hazard identification, (ii) hazard characterisation; (iii) exposure assessment, and (iv) risk characterisation; (zp) “risk communication” means the interactive exchange of information and opinions throughout the risk analysis process concerning risks, risk-related factors and risk perceptions, among risk assessors, risk managers, consumers, industry, the academic community and other interested parties, including the explanation of risk assessment findings and the basis of risk management decisions; (zq) “risk management” means the process, distinct from risk assessment, of evaluating policy alternatives, in consultation with all interested parties considering risk assessment and other factors relevant for the protection of health of consumers and for the promotion of fair trade practices, and, if needed, selecting appropriate prevention and control options; (zr) “sale” with its grammatical variations and cognate expressions, means the sale of any article of food, whether for cash or on credit or by way of exchange and whether by wholesale or retail, for human consumption or use, or for analysis, and includes an agreement for sale, an offer for sale, the exposing for sale or having in possession for sale of any such article, and includes also an attempt to sell any such article; (zs) “sample” means a sample of any article of food taken under the provisions of this Act or any rules and regulations made thereunder; (zt) “specified by regulations” means specified by regulations made by the Food Authority; (zu) “standard”, in relation to any article of food, means the standards notified by the Food Authority; (zv) “State Government” in relation to a Union territory means the Administrator of that Union territory appointed by the President under article 239 of the Constitution; (zw) “substance” includes any natural or artificial substance or other matter, whether it is in a solid state or in liquid form or in the form of gas or vapour; (zx) “sub-standard” an article of food shall be deemed to be sub-standard if it does not meet the specified standards but not so as to render the article of food unsafe; (zy) “Tribunal” means the Food Safety Appellate Tribunal established under section 70; (zz) “unsafe food” means an article of food whose nature, substance or quality is so affected as to render it injurious to health:— (i) by the article itself, or its package thereof, which is composed, whether wholly or in part, of poisonous or deleterious substances; or ----- (ii) by the article consisting, wholly or in part, of any filthy, putrid, rotten, decomposed or diseased animal substance or vegetable substance; or (iii) by virtue of its unhygienic processing or the presence in that article of any harmful substance; or (iv) by the substitution of any inferior or cheaper substance whether wholly or in part; or (v) by addition of a substance directly or as an ingredient which is not permitted; or (vi) by the abstraction, wholly or in part, of any of its constituents; or (vii) by the article being so coloured, flavoured or coated, powdered or polished, as to damage or conceal the article or to make it appear better or of greater value than it really is; or (viii) by the presence of any colouring matter or preservatives other than that specified in respect thereof; or (ix) by the article having been infected or infested with worms, weevils, or insects; or (x) by virtue of its being prepared, packed or kept under insanitary conditions; or (xi) by virtue of its being mis-branded or sub-standard or food containing extraneous matter; or (xii) by virtue of containing pesticides and other contaminants in excess of quantities specified by regulations. (2) Any reference in this Act to a law which is not in force in the State of Jammu and Kashmir* shall, in relation to that State, be construed as a reference to the corresponding Law, if any, in force in that State. CHAPTER II FOOD SAFETYAND STANDARDS AUTHORITY OF INDIA **4. Establishment of Food Safety and Standards Authority of India.—(1) The Central** Government shall, by notification, establish a body to be known as the Food Safety and Standards Authority of India to exercise the powers conferred on, and to perform the functions assigned to, it under this Act. (2) The Food Authority shall be a body corporate by the name aforesaid, having perpetual succession and a common seal with power to acquire, hold and dispose of property, both movable and immovable, and to contract and shall, by the said name, sue or be sued. (3) The head office of the Food Authority shall be at Delhi. (4) The Food Authority may establish its offices at any other place in India. **5. Composition of Food Authority and qualifications for appointment of its Chairperson and** **other Members.— (1) The Food Authority shall consist of a Chairperson and the following twenty-two** members out of which one-third shall be women, namely:– (a) seven Members, not below the rank of a Joint Secretary to the Government of India, to be appointed by the Central Government, to respectively represent the Ministries or Departments of the Central Government dealing with– (i) Agriculture, (ii) Commerce, (iii) Consumer Affairs, (iv) Food Processing, *. Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and Kashmir and the Union territory of Ladakh. ----- (v) Health, (vi) Legislative Affairs, (vii) Small Scale Industries, (viii) who shall be Members ex officio; (b) two representatives from food industry of which one shall be from small scale industries; (c) two representatives from consumer organisations; (d) three eminent food technologists or scientists; (e) five members to be appointed by rotation every three years, one each in seriatim from the Zones as specified in the First Schedule to represent the States and the Union territories; (f) two persons to represent farmers’ organisations; (g) one person to represent retailers’ organisations. (2) The Chairperson and other Members of the Food Authority shall be appointed in such a manner so as to secure the highest standards of competence, broad range of relevant expertise, and shall represent, the broadest possible geographic distribution within the country. (3) The Chairperson shall be appointed by the Central Government from amongst the persons of eminence in the field of food science or from amongst the persons from the administration who have been associated with the subject and is either holding or has held the position of not below the rank of Secretary to the Government of India. 1[(4) The Chairperson and the Members including part-time Members other than the _ex officio_ Members of the Food Authority may be appointed by the Central Government on the recommendations of the Selection Committee. (5) The Chairperson of the Food Authority shall not hold any other office.] **6. Selection Committee for selection of Chairperson and Members of Food Authority.—(1) The** Central Government shall, for the purpose of selection of the Chairperson and the Members other than _ex officio Members of the Food Authority, constitute a Selection Committee consisting of–_ (a) Cabinet Secretary–Chairperson, (b) Secretary-in-charge of the Ministry or the Department responsible for administration of this Act as the convener–Member, (c) Secretary-in-charge of the Ministries or the Departments of the Central Government dealing with Health, Legislative and Personnel–Members, (d) Chairman of the Public Enterprises Selection Board–Member, (e) An eminent food technologist to be nominated by the Central Government–Member. _Explanation–For the purposes of clause (e), the Central Government shall nominate a person_ from amongst persons holding the post of Director or the Head, by whatever name called, of any national research or technical institution. (2) The Central Government shall, within two months from the date of occurrence of any vacancy by reason of death, resignation, or removal of the Chairperson or a Member of the Food Authority and three months before the superannuation or completion of the term of office of the Chairperson or any Member of that Authority, make a reference to the Selection Committee for filling up of the vacancy. (3) The Selection Committee shall finalise the selection of the Chairperson and Members of the Food Authority within two months from the date on which the reference is made to it. (4) The Selection Committee shall recommend a panel of two names for every vacancy referred to it. 1. Subs. by Act 13 of 2008, s. 3, for sub-sections (4) and (5) (w.e.f. 7-2-2008). ----- (5) Before recommending any person for appointment as a Chairperson or other Member of the Food Authority, the Selection Committee shall satisfy itself that such person does not have any financial or other interest, which is likely to affect prejudicially his functions as a Member. (6) No appointment of the Chairperson or other Member of the Food Authority shall be invalid merely by reason of any vacancy in the Selection Committee. **7. Term of office, salary, allowances and other conditions of service of Chairperson and** **Members of Food Authority.—(1) The Chairperson and the members other than** _ex officio Members_ shall hold office for a term of three years from the date on which they enter upon their offices, and shall be eligible for re-appointment for a further period of three years: 1[Provided that the Chairperson shall not hold office as such after he has attained the age of sixty-five years.] (2) The salary and allowances payable to, and the other terms and conditions of service of the Chairperson and Members other than _ex officio Members shall be such as may be prescribed by the_ Central Government. (3) The Chairperson and every Member shall, before entering upon his office, make and subscribe to an oath of office and of secrecy in such form and in such manner and before such authority as may be prescribed by the Central Government. (4) Notwithstanding anything contained in sub-section the Chairperson or any Member may– (a) relinquish his office by giving in writing to the Central Government a notice of not less than three months; or (b) be removed from his office in accordance with the provisions of section 8. (5) The Chairperson or any Member ceasing to hold office as such shall not represent any person before the Food Authority or any State Authority in any manner. **8. Removal of Chairperson and Members of Food Authority.—(1) Notwithstanding anything** contained in sub-section (1) of section 7, the Central Government may, by order, remove from office the Chairperson or any other Member, if the Chairperson or as the case may be, such other Member,— (a) has been adjudged an insolvent; or (b) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or (c) has become physically or mentally incapable of acting as a Member; or (d) has acquired such financial or other interests as is likely to affect prejudicially his functions as a Member; or (e) has so abused his position as to render his continuance in office prejudicial to the public interest. (2) No Member shall be removed under clauses (d) and (e) of sub-section (1) unless he has been given a reasonable opportunity of being heard in the matter. **9. Officers and other employees of Food Authority.—(1) There shall be a Chief Executive Officer** of the Food Authority, not below the rank of Additional Secretary to the Government of India, who shall be the Member-Secretary of the Authority, to be appointed by the Central Government. (2) The Food Authority may, with the approval of the Central Government, determine the number, nature and categories of other officers and employees required to the Food Authority in the discharge of its functions. (3) The salaries and allowances payable to and other conditions of service of, the Chief Executive Officer, officers, and other employees shall be such as may be specified by regulations by the Food Authority with the approval of the Central Government. 1. Subs. by Act 13 of 2008, s. 4, for the proviso (w.e.f. 7-2-2008). ----- **10. Functions of the Chief Executive Officer.—(1) The Chief Executive Officer shall be the legal** representative of the Food Authority and shall be responsible for– (a) the day-to-day administration of the Food Authority; (b) drawing up of proposal for the Food Authority’s work programmes in consultation with the Central Advisory Committee; (c) implementing the work programmes and the decisions adopted by the Food Authority; (d) ensuring the provision of appropriate scientific, technical and administrative support for the Scientific Committee and the Scientific Panel; (e) ensuring that the Food Authority carries out its tasks in accordance with the requirements of its users, in particular with regard to the adequacy of the services provided and the time taken; (f) the preparation of the statement of revenue and expenditure and the execution of the budget of the Food Authority; and (g) developing and maintaining contact with the Central Government, and for ensuring a regular dialogue with its relevant committees. (2) Every year, the Chief Executive Officer shall submit to the Food Authority for approval– (a) a general report covering all the activities of the Food Authority in the previous year; (b) programmes of work; (c) the annual accounts for the previous year; and (d) the budget for the coming year. (3) The Chief Executive Officer shall, following adoption by the Food Authority, forward, the general report and the programmes to the Central Government and the State Governments and shall have them published. (4) The Chief Executive Officer shall approve all financial expenditure of the Food Authority and report on the Authority’s activities to the Central Government. (5) The Chief Executive Officer shall exercise the powers of the Commissioner of Food Safety while dealing with matters relating to food safety of such articles. (6) The Chief Executive Officer shall have administrative control over the officers and other employees of the Food Authority. **11. Central Advisory Committee.—(1) The Food Authority shall, by notification, establish a** Committee to be known as the Central Advisory Committee. (2) The Central Advisory Committee shall consist of two members each to represent the interests of food industry, agriculture, consumers, relevant research bodies and food laboratories and all Commissioners of Food Safety, and the Chairperson of the Scientific Committee shall be _ex officio_ member. (3) The representatives of the concerned Ministries or Departments of the Central Government in Agriculture, Animal Husbandry and Dairying, Bio-technology, Commerce and Industry, Consumer Affairs, Environment and Forests, Food Processing Industries, Health, Panchayati Raj, Small Scale Industries and Food and Public Distribution or government institutes or organisations and government recognised farmers’ shall be invitees to the deliberations of the Central Advisory Committee. (4) The Chief Executive Officer shall be ex officio Chairperson of the Central Advisory Committee. (5) The Central Advisory Committee shall follow such rules of procedure including its transaction of business as may be specified by regulations. ----- **12. Functions of Central Advisory Committee.— (1) The Central Advisory Committee shall ensure** close cooperation between the Food Authority and the enforcement agencies and organisations operating in the field of food. (2) The Central Advisory Committee shall advise the Food Authority on– (a) the performance of its duties under this section and in particular in drawing up of a proposal for the Food Authority’s work programme, (b) on the prioritisation of work, (c) identifying potential risks, (d) pooling of knowledge, and (e) such other functions as may be specified by regulations. (3) The Central Advisory Committee shall meet regularly at the invitation of the Chairperson of Central Advisory Committee or at the request of at least one-third of its members, and not less than three times a year. **13. Scientific Panels.—(1) The Food Authority shall establish scientific panels, which shall consist** of independent scientific experts. (2) The Scientific Panel shall invite the relevant industry and consumer representatives in its deliberations. (3) Without prejudice to the provisions of sub-section (1), the Food Authority may establish as many Scientific Panels as it considers necessary in addition to the Panels on: (a) food additives, flavourings, processing aids and materials in contact with food; (b) pesticides and antibiotics residues; (c) genetically modified organisms and foods; (d) functional foods, nutraceuticals, dietetic products and other similar products; (e) biological hazards; (f) contaminants in the food chain; (g) labelling; and (h) method of sampling and analysis. (4) The Food Authority may from time to time re-constitute the Scientific Panels by adding new members or by omitting the existing members or by changing the name of the panel as the case may be. **14. Scientific Committee.—(1) The Food Authority shall constitute Scientific Committee which** shall consist of the Chairpersons of the Scientific Panels and six independent scientific experts not belonging or affiliated to any of the Scientific Panels. (2) The Scientific Committee shall be responsible for providing the scientific opinions to the Food Authority, and shall have the powers, where necessary, of organising public hearings. (3) The Scientific Committee shall be responsible for the general co-ordination necessary to ensure consistency of the scientific opinion procedure and in particular with regard to the adoption of working procedures and harmonisation of working methods of the Scientific Panels. (4) The Scientific Committee shall provide opinions on multi-sectoral issues falling within the competence of more than one Scientific Panel, and on issues which do not fall within the competence of any of the Scientific Panels. (5) Wherever necessary, and particularly, in the case of subjects which do not fall within the competence of any of the Scientific Panel, the Scientific Committee shall set up working groups and in such cases, it shall draw on the expertise of those working groups when establishing scientific opinions. ----- **15. Procedure for Scientific Committee and Scientific Panel.— (1) The members of the Scientific** Committee, who are not members of the Scientific Panel and the members of the Scientific Panel shall be appointed by the Food Authority, for a period of three years, which shall be renewable for such period, and the vacancy notice shall be published in the relevant leading scientific publications and on theFood Authority’s website for a call for expressions of interest. (2) The Scientific Committee and the Scientific Panel shall each choose a Chairperson from amongst their members. (3) The Scientific Committee and the Scientific Panel shall act by a majority of their members and the views of the members shall be recorded. (4) The procedure for the operation and co-operation of the Scientific Committee and the Scientific Panel shall be specified by regulations. (5) These procedures shall relate in particular to– (a) The number of times that a member can serve consecutively on a Scientific Committee or Scientific Panel; (b) the number of members in each Scientific Panel; (c) the procedure for re-imbursing the expenses of members of the Scientific Committee and the Scientific Panel; (d) the manner in which tasks and requests for scientific opinions are assigned to the Scientific Committee and the Scientific Panel; (e) The creation and organisation of the working groups of the Scientific Committee and the Scientific Panel, and the possibility of external experts being included in those working groups; (f) The possibility of observers being invited to meetings of the Scientific Committee and the Scientific Panel; (g) The possibility of organising public hearings; and (h) Quorum of the meeting, meeting notice, agenda of the meeting and such other matters. **16. Duties and functions of Food Authority.— (1) It shall be the duty of the Food Authority to** regulate and monitor the manufacture, processing, distribution, sale and import of food so as to ensure safe and wholesome food. (2) Without prejudice to the provisions of sub-section (1), the Food Authority may by regulations specify– (a) the standards and guidelines in relation to articles of food and specifying an appropriate system for enforcing various standards notified under this Act; (b) the limits for use of food additives, crop contaminants, pesticide residues, residues of veterinary drugs, heavy metals, processing aids, myco-toxins, antibiotics and pharmacological active substances and irradiation of food; (c) the mechanisms and guidelines for accreditation of certification bodies engaged in certification of food safety management systems for food businesses; (d) the procedure and the enforcement of quality control in relation to any article of food imported into India; (e) the procedure and guidelines for accreditation of laboratories and notification of the accredited laboratories; (f) the method of sampling, analysis and exchange of information among enforcement authorities; (g) conduct survey of enforcement and administration of this Act in the country; (h) food labelling standards including claims on health, nutrition, special dietary uses and food category systems for foods; and ----- (i) the manner in which and the procedure subject to which risk analysis, risk assessment, risk communication and risk management shall be undertaken. (3) The Food Authority shall also– (a) provide scientific advice and technical support to the Central Government and the State Governments in matters of framing the policy and rules in areas which have a direct or indirect bearing on food safety and nutrition; (b) search, collect, collate, analyse and summarise relevant scientific and technical data particularly relating to– (i) food consumption and the exposure of individuals to risks related to the consumption of food; (ii) incidence and prevalence of biological risk; (iii) contaminants in food; (iv) residues of various contaminants; (v) identification of emerging risks; and (vi) introduction of rapid alert system; (c) promote, co-ordinate and issue guidelines for the development of risk assessment methodologies and monitor and conduct and forward messages on the health and nutritional risks of food to the Central Government, State Governments and Commissioners of Food Safety; (d) provide scientific and technical advice and assistance to the Central Government and the State Governments in implementation of crisis management procedures with regard to food safety and to draw up a general plan for crisis management and work in close co-operation with the crisis unit set up by the Central Government in this regard; (e) establish a system of network of organisations with the aim to facilitate a scientific co operation framework by the co-ordination of activities, the exchange of information, the development and implementation of joint projects, the exchange of expertise and best practices in the fields within the Food Authority’s responsibility; (f) provide scientific and technical assistance to the Central Government and the State Governments for improving co-operation with international organisations; (g) take all such steps to ensure that the public, consumers, interested parties and all levels of panchayats receive rapid, reliable, objective and comprehensive information through appropriate methods and means; (h) provide, whether within or outside their area, training programmes in food safety and standards for persons who are or intend to become involved in food businesses, whether as food business operators or employees or otherwise; (i) undertake any other task assigned to it by the Central Government to carry out the objects of this Act; (j) contribute to the development of international technical standards for food, sanitary and phyto sanitary standards; (k) contribute, where relevant and appropriate to the development of agreement on recognition of the equivalence of specific food related measures; (l) promote co-ordination of work on food standards undertaken by international governmental and non-governmental organisations; (m) promote consistency between international technical standards and domestic food standards while ensuring that the level of protection adopted in the country is not reduced; and (n) promote general awareness as to food safety and food standards. ----- (4) The Food Authority shall make it public without undue delay– (a) the opinions of the Scientific Committee and the Scientific Panel immediately after adoption; (b) the annual declarations of interest made by members of the Food Authority, the Chief Executive Officer, members of the Advisory Committee and members of the Scientific Committee and Scientific Panel, as well as the declarations of interest if any, made in relation to items on the agendas of meetings; (c) the results of its scientific studies; and (d) the annual report of its activities. (5) The Food Authority may, from time to time give such directions, on matters relating to food safety and standards, to the Commissioner of Food Safety, who shall be bound by such directions while exercising his powers under this Act. (6) The Food Authority shall not disclose or cause to be disclosed to third parties confidential information that it receives for which confidential treatment has been requested and has been acceded, except for information which must be made public if circumstances so require, in order to protect public health. **17. Proceedings of Food Authority.— (1) The Food Authority shall meet at the head office or any of** its offices at such time as the Chairperson may direct, and shall observe such rules of procedure in regard to the transaction of business at its meetings (including the quorum at its meetings)as may be specified by regulations. (2) If the Chairperson is unable to attend a meeting of the Food Authority, any other Member nominated by the Chairperson in this behalf and, in the absence of such nomination or where there is no Chairperson, any Member chosen by the Members present from amongst themselves, shall preside at the meeting. (3) All questions which come up before any meeting of the Food Authority shall be decided by a majority of votes of the Members present and voting, and in the event of an equality of votes, the Chairperson or the person presiding over the meeting shall have the right to exercise a second or casting vote. (4) All orders and decisions of the Food Authority shall be authenticated by the Chief Executive Officer. (5) The Chief Executive Officer shall take part in the meetings of the Food Authority but without a right to vote. (6) The Food Authority may invite the Chairperson of the Scientific Committee to attend its meetings but without a right to vote. (7) No act or proceedings of the Food Authority shall be questioned or invalidated merely on the ground of existence of any vacancy or defect in the constitution of Food Authority. CHAPTER III GENERAL PRINCIPLES OF FOOD SAFETY **18. General principles to be followed in administration of Act.—The Central Government, the** State Governments, the Food Authority and other agencies, as the case may be, while implementing the provisions of this Act shall be guided by the following principles namely:– (1) (a) endeavour to achieve an appropriate level of protection of human life and health and the protection of consumer’s interests, including fair practices in all kinds of food trade with reference to food safety standards and practices; (b) carry out risk management which shall include taking into account the results of risk assessment and other factors which in the opinion of the Food Authority are relevant to the matter under consideration and where the conditions are relevant, in order to achieve the general objectives of regulations; ----- (c) where in any specific circumstances, on the basis of assessment of available information, the possibility of harmful effects on health is identified but scientific uncertainty persists, provisional risk management measures necessary to ensure appropriate level of health protection may be adopted, pending further scientific information for a more comprehensive risk assessment; (d) the measures adopted on the basis of clause (c) shall be proportionate and no more restrictive of trade than is required to achieve appropriate level of health protection, regard being had to technical and economic feasibility and other factors regarded as reasonable and proper in the matter under consideration; (e) the measures adopted shall be reviewed within a reasonable period of time, depending on the nature of the risk to life or health being identified and the type of scientific information needed to clarify the scientific uncertainty and to conduct a more comprehensive risk assessment; (f) in cases where there are reasonable grounds to suspect that a food may present a risk for human health, then, depending on the nature, seriousness and extent of that risk, the Food Authority and the Commissioner of Food Safety shall take appropriate steps to inform the general public of the nature of the risk to health, identifying to the fullest extent possible the food or type of food, the risk that it may present, and the measures which are taken or about to be taken to prevent, reduce or eliminate that risk; and (g) where any food which fails to comply with food safety requirements is part of a batch, lot or consignment of food of the same class or description, it shall be presumed until the contrary is proved, that all of the food in that batch, lot or consignment fails to comply with those requirements. (2) The Food Authority shall, while framing regulations or specifying standards under this Act– (a) take into account– (i) prevalent practices and conditions in the country including agricultural practices and handling, storage and transport conditions; and (ii) international standards and practices, where international standards or practices exist or are in the process of being formulated, unless it is of opinion that taking into account of such prevalent practices and conditions or international standards or practices or any particular part thereof would not be an effective or appropriate means for securing the objectives of such regulations or where there is a scientific justification or where they would result in a different level of protection from the one determined as appropriate in the country; (b) determine food standards on the basis of risk analysis except where it is of opinion that such analysis is not appropriate to the circumstances or the nature of the case; (c) undertake risk assessment based on the available scientific evidence and in an independent, objective and transparent manner; (d) ensure that there is open and transparent public consultation, directly or through representative bodies including all levels of panchayats, during the preparation, evaluation and revision of regulations, except where it is of opinion that there is an urgency concerning food safety or public health to make or amend the regulations in which case such consultation may be dispensed with: Provided that such regulations shall be in force for not more than six months; (e) ensure protection of the interests of consumers and shall provide a basis for consumers to make informed choices in relation to the foods they consume; (f) ensure prevention of– (i) fraudulent, deceptive or unfair trade practices which may mislead or harm the consumer; and (ii) unsafe or contaminated or sub-standard food. ----- (3) The provisions of this Act shall not apply to any farmer or fisherman or farming operations or crops or livestock or aquaculture, and supplies used or produced in farming or products of crops produced by a farmer at farm level or a fisherman in his operations. CHAPTER IV GENERAL POVISIONS AS TO ARTICLES OF FOOD **19. Use of food additive or processing aid.—No article of food shall contain any food additive or** processing aid unless it is in accordance with the provisions of this Act and regulations made thereunder. _Explanation.–For the purposes of this section, “processing aid” means any substance or material, not_ including apparatus or utensils, and not consumed as a food ingredient by itself, used in the processing of raw materials, foods or its ingredients to fulfil a certain technological purpose during treatment or processing and which may result in the non-intentional but unavoidable presence of residues or derivatives in the final product. **20. Contaminants, naturally occurring toxic substances, heavy metals, etc.—No article of food** shall contain any contaminant, naturally occurring toxic substances or toxins or hormone or heavy metals in excess of such quantities as may be specified by regulations. **21. Pesticides, veterinary drugs residues, antibiotic residues and microbiological counts.—(1)** No article of food shall contain insecticides or pesticides residues, veterinary drugs residues, antibiotic residues, solvent residues, pharmacological active substances and micro-biological counts in excess of such tolerance limit as may be specified by regulations. (2) No insecticide shall be used directly on article of food except fumigants registered and approved under the Insecticides Act, 1968 (46 of 1968). _Explanation.–For the purposes of this section,–_ (1) “pesticide residue” means any specified substance in food resulting from the use of a pesticide and includes any derivatives of a pesticide, such as conversion products, metabolites, reaction products and impurities considered to be of toxicological significance and also includes such residues coming into food from environment; (2) “residues of veterinary drugs” include the parent compounds or their metabolites or both in any edible portion of any animal product and include residues of associated impurities of the veterinary drugs concerned. **22. Genetically modified foods, organic foods, functional foods, proprietary foods, etc.—Save as** otherwise provided under this Act and regulations made thereunder, no person shall manufacture, distribute, sell or import any novel food, genetically modified articles of food, irradiated food, organic foods, foods for special dietary uses, functional foods, neutraceuticals, health supplements, proprietary foods and such other articles of food which the Central Government may notify in this behalf. _Explanation.–For the purposes of this section,–_ (1) “foods for special dietary uses or functional foods or nutraceuticals or health supplements” means: (a) foods which are specially processed or formulated to satisfy particular dietary requirements which exist because of a particular physical or physiological condition or specific diseases and disorders and which are presented as such, wherein the composition of these foodstuffs must differ significantly from the composition of ordinary foods of comparable nature, if such ordinary foods exist, and may contain one or more of the following ingredients, namely:– (i) plants or botanicals or their parts in the form of powder, concentrate or extract in water, ethyl alcohol or hydro alcoholic extract, single or in combination; (ii) minerals or vitamins or proteins or metals or their compounds or amino acids (in amounts not exceeding the Recommended Daily Allowance for Indians) or enzymes (within permissible limits); (iii) substances from animal origin; ----- (iv) a dietary substance for use by human beings to supplement the diet by increasing the total dietary intake; (b) (i) a product that is labelled as a “Food for special dietary uses or functional foods or nutraceuticals or health supplements or similar such foods” which is not represented for use as a conventional food and whereby such products may be formulated in the form of powders, granules, tablets, capsules, liquids, jelly and other dosage forms but not parenterals, and are meant for oral administration; (ii) such product does not include a drug as defined in clause (b) and ayurvedic, sidha and unani drugs as defined in clauses (a) and (h) of section 3 of the Drugs and Cosmetics Act, 1940 (23 of 1940) and rules made thereunder; (iii) does not claim to cure or mitigate any specific disease, disorder or condition (except for certain health benefit or such promotion claims) as may be permitted by the regulations made under this Act; (iv) does not include a narcotic drug or a psychotropic substance as defined in the Schedule of the Narcotic Drugs and Psychotropic Substances Act, 1985 (61 of 1985) and rules made thereunder and substances listed in Schedules E and EI of the Drugs and Cosmetics Rules, 1945; (2) “genetically engineered or modified food” means food and food ingredients composed of or containing genetically modified or engineered organisms obtained through modern biotechnology, or food and food ingredients produced from but not containing genetically modified or engineered organisms obtained through modern biotechnology; (3) “organic food” means food products that have been produced in accordance with specified organic production standards; (4) “proprietary and novel food” means an article of food for which standards have not been specified but is not unsafe: Provided that such food does not contain any of the foods and ingredients prohibited under this Act and the regulations made thereunder. **23. Packaging and labelling of foods.–(1) No person shall manufacture, distribute, sell or expose for** sale or despatch or deliver to any agent or broker for the purpose of sale, any packaged food products which are not marked and labelled in the manner as may be specified by regulations: Provided that the labels shall not contain any statement, claim, design or device which is false or misleading in any particular concerning the food products contained in the package or concerning the quantity or the nutritive value implying medicinal or therapeutic claims or in relation to the place of origin of the said food products. (2) Every food business operator shall ensure that the labelling and presentation of food, including their shape, appearance or packaging, the packaging materials used, the manner in which they are arranged and the setting in which they are displayed, and the information which is made available about them through whatever medium, does not mislead consumers. **24. Restrictions of advertisement and prohibition as to unfair trade practices.—No** advertisement shall be made of any food which is misleading or deceiving or contravenes the provisions of this Act, the rules and regulations made thereunder. (2) No person shall engage himself in any unfair trade practice for purpose of promoting the sale, supply, use and consumption of articles of food or adopt any unfair or deceptive practice including the practice of making any statement, whether orally or in writing or by visible representation which– (a) falsely represents that the foods are of a particular standard, quality, quantity or grade composition; (b) makes a false or misleading representation concerning the need for, or the usefulness; (c) gives to the public any guarantee of the efficacy that is not based on an adequate or scientific justification thereof: ----- Provided that where a defence is raised to the effect that such guarantee is based on adequate or scientific justification, the burden of proof of such defence shall lie on the person raising such defence. CHAPTER V PROVISIONS RELATING TO IMPORT **25. All imports of articles of food to be subject to this Act.—No person shall import into India–** (i) any unsafe or misbranded or sub-standard food or food containing extraneous matter; (ii) any article of food for the import of which a licence is required under any Act or rules or regulations, except in accordance with the conditions of the licence; and (iii) any article of food in contravention of any other provision of this Act or of any rule or regulation made thereunder or any other Act. (2) The Central Government shall, while prohibiting, restricting or otherwise regulating import of article of food under the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992), follow the standards laid down by the Food Authority under the provisions of this Act and the Rules and regulations made thereunder. CHAPTER VI SPECIAL RESPONSIBILITIES AS TO FOOD SAFETY **26. Responsibilities of the Food business operator.—(1) Every food business operator shall ensure** that the articles of food satisfy the requirements of this Act and the rules and regulations made thereunder at all stages of production, processing, import, distribution and sale within the businesses under his control. (2) No food business operator shall himself or by any person on his behalf manufacture, store, sell or distribute any article of food– (i) which is unsafe; or (ii) which is misbranded or sub-standard or contains extraneous matter; or (iii) for which a licence is required, except in accordance with the conditions of the licence; or (iv) which is for the time being prohibited by the Food Authority or the Central Government or the State Government in the interest of public health; or (v) in contravention of any other provision of this Act or of any rule or regulation made thereunder. (3) No food business operator shall employ any person who is suffering from infectious, contagious or loathsome disease. (4) No food business operator shall sell or offer for sale any article of food to any vendor unless he also gives a guarantee in writing in the form specified by regulations about the nature and quality of such article to the vendor: Provided that a bill, cash memo, or invoice in respect of the sale of any article of food given by a food business operator to the vendor shall be deemed to be a guarantee under this section, even if a guarantee in the specified form is not included in the bill, cash memo or invoice. (5) Where any food which is unsafe is part of a batch, lot or consignment of food of the same class or description, it shall be presumed that all the food in that batch, lot or consignment is also unsafe, unless following a detailed assessment within a specified time, it is found that there is no evidence that the rest of the batch, lot or consignment is unsafe: Provided that any conformity of a food with specific provisions applicable to that food shall be without prejudice to the competent authorities taking appropriate measures to impose restrictions on that food being placed on the market or to require its withdrawal from the market for the reasons to be recorded in writing where such authorities suspect that, despite the conformity, the food is unsafe. ----- **27. Liability of manufacturers, packers, wholesalers, distributors and sellers.—(1) The** manufacturer or packer of an article of food shall be liable for such article of food if it does not meet the requirements of this Act and the rules and regulations made thereunder. (2) The wholesaler or distributor shall be liable under this Act for any article of food which is– (a) supplied after the date of its expiry; or (b) stored or supplied in violation of the safety instructions of the manufacturer; or (c) unsafe or misbranded; or (d) unidentifiable of manufacturer from whom the article of food have been received; or (e) stored or handled or kept in violation of the provisions of this Act, the rules and regulations made thereunder; or (f) received by him with knowledge of being unsafe. (3) The seller shall be liable under this Act for any article of food which is– (a) sold after the date of its expiry; or (b) handled or kept in unhygienic conditions; or (c) misbranded; or (d) unidentifiable of the manufacturer or the distributors from whom such articles of food were received; or (e) received by him with knowledge of being unsafe. **28. Food recall procedures.— (1) If a food business operator considers or has reasons to believe that** a food which he has processed, manufactured or distributed is not in compliance with this Act, or the rules or regulations, made thereunder, he shall immediately initiate procedures to withdraw the food in question from the market and consumers indicating reasons for its withdrawal and inform the competent authorities thereof. (2) A food business operator shall immediately inform the competent authorities and co-operate with them, if he considers or has reasons to believe that a food which he has placed on the market may be unsafe for the consumers. (3) The food business operator shall inform the competent authorities of the action taken to prevent risks to the consumer and shall not prevent or discourage any person from co-operating, in accordance with this Act, with the competent authorities, where this may prevent, reduce or eliminate a risk arising from a food. (4) Every food business operator shall follow such conditions and guidelines relating to food recall procedures as the Food Authority may specify by regulations. CHAPTER VII ENFORCEMENT OF THE ACT **29. Authorities responsible for enforcement of Act.—(1) The Food Authority and the State Food** Safety Authorities shall be responsible for the enforcement of this Act. (2) The Food Authority and the State Food Safety Authorities shall monitor and verify that the relevant requirements of law are fulfilled by food business operators at all stages of food business. (3) The authorities shall maintain a system of control and other activities as appropriate to the circumstances, including public communication on food safety and risk, food safety surveillance and other monitoring activities covering all stages of food business. (4) The Food Safety Officers shall enforce and execute within their area the provisions of this Act with respect to which the duty is not imposed expressly or by necessary implication on some other authority. ----- (5) The regulations under this Act shall specify which of the Food Safety Officers are to enforce and execute them, either generally or in relation to cases of a particular description or a particular area, and any such regulations or orders may provide for the giving of assistance and information by any authority concerned in 11the administration of the regulations or orders, or of any provisions of this Act, to any other authority so concerned, for the purposes of their respective duties under them. (6) The Commissioner of Food Safety and Designated Officer shall exercise the same powers as are conferred on the Food Safety Officer and follow the same procedure specified in this Act. **30. Commissioner of Food Safety of the State.—(1) The State Government shall appoint the** Commissioner of Food Safety for the State for efficient implementation of food safety and standards and other requirements laid down under this Act and the rules and regulations made thereunder. (2) The Commissioner of Food Safety shall perform all or any of the following functions, namely:– (a) prohibit in the interest of public health, the manufacture, storage, distribution or sale of any article of food, either in the whole of the State or any area or part thereof for such period, not exceeding one year, as may be specified in the order notified in this behalf in the Official Gazette; (b) carry out survey of the industrial units engaged in the manufacture or processing of food in the State to find out compliance by such units of the standards notified by the Food Authority for various articles of food; (c) conduct or organise training programmes for the personnel of the office of the Commissioner of Food Safety and, on a wider scale, for different segments of food chain for generating awareness on food safety; (d) ensure an efficient and uniform implementation of the standards and other requirements as specified and also ensure a high standard of objectivity, accountability, practicability, transparency and credibility; (e) sanction prosecution for offences punishable with imprisonment under this Act; (f) such other functions as the State Government may, in consultation with the Food Authority, prescribe. (3) The Commissioner of Food Safety may, by Order, delegate, subject to such conditions and restrictions as may be specified in the Order, such of his powers and functions under this Act (except the power to appoint Designated Officer, Food Safety Officer and Food Analyst) as he may deem necessary or expedient to any officer subordinate to him. **31. Licensing and registration of food business.—(1) No person shall commence or carry on any** food business except under a licence. (2) Nothing contained in sub-section (1) shall apply to a petty manufacturer who himself manufactures or sells any article of food or a petty retailer, hawker, itinerant vendor or a temporary stall holder or small scale or cottage or such other industries relating to food business or tiny food business operator; but they shall register themselves with such authority and in such manner as may be specified by regulations, without prejudice to the availability of safe and wholesome food for human consumption or affecting the interests of the consumers. (3) Any person desirous to commence or carry on any food business shall make an application for grant of a licence to the Designated Officer in such manner containing such particulars and fees as may be specified by regulations. (4) The Designated Officer on receipt of an application under sub-section (3), may either grant the licence or after giving the applicant an opportunity of being heard and for reasons to be recorded in writing, refuse to grant a licence to any applicant, if he is satisfied that it is necessary so to do in the interest of public health and shall make available to the applicant a copy of the order: Provided that if a licence is not issued within two months from the date of making the application or his application is not rejected, the applicant may start his food business after expiry of the said period and in such a case, the Designated Officer shall not refuse to issue a licence but may, if he considers necessary, issue an improvement notice, under section 32 and follow procedures in that regard. ----- (5) Every licence shall be in such form and subject to such conditions as may be specified by regulations. (6) A single licence may be issued by the Designated Officer for one or more articles of food and also for different establishments or premises in the same area. (7) If the articles of food are manufactured, stored, sold or exhibited for sale at different premises situated in more than one area, separate applications shall be made and separate licence shall be issued in respect of such premises not falling within the same area. (8) An appeal against the order of rejection for the grant of licence shall lie to the Commissioner of Food Safety. (9) A licence unless suspended or cancelled earlier shall be in force for such period as may be specified by regulations: Provided that if an application for a renewal of licence is made before the expiry of the period of validity of the licence, the licence shall continue to be in force until orders are passed on the application. (10) The licence shall subsist for the benefit of the deceased’s personal representative or any other member of his family, until the expiry of— (a) the period of three months beginning with his death; or (b) such longer period as the Designated Officer may allow. **32. Improvement notices.—(1) If the Designated Officer has reasonable ground for believing that** any food business operator has failed to comply with any regulations to which this section applies, he may, by a notice served on that food business operator (in this Act referred to as an “improvement notice”)– (a) state the grounds for believing that the food business operator has failed to comply with the regulations; (b) specify the matters which constitute the food business operator’s failure so to comply; (c) specify the measures which, in the opinion of the said Authority, the food business operator must take, in order to secure compliance; and (d) require the food business operator to take those measures, or measures which are at least equivalent to them, within a reasonable period (not being less than fourteen days) as may be specified in the notice. (2) If the food business operator fails to comply with an improvement notice, his licence may be suspended. (3) If the food business operator still fails to comply with the improvement notice, the Designated Officer may, after giving the licensee an opportunity to show cause, cancel the licence granted to him: Provided that the Designated Officer may suspend any licence forthwith in the interest of public health for reasons to be recorded in writing. (4) Any person who is aggrieved by– (a) an improvement notice; or (b) refusal to issue a certificate as to improvement; or (c) cancellation or suspension or revocation of licence under this Act, may appeal to the Commissioner of Food Safety whose decision thereon, shall be final. (5) The period within which such an appeal may be brought shall be– (a) fifteen days from the date on which notice of the decision was served on the person desiring to appeal; or (b) in the case of an appeal under sub-section (1), the said period or the period specified in the improvement notice, whichever expires earlier. ----- _Explanation–For the purpose of this sub-section, the making of the complaint shall be deemed to_ be the bringing of the appeal. **33. Prohibition orders.—(1) If –** (a) any food business operator is convicted of an offence under this Act; and (b) the court by or before which he is so convicted is satisfied that the health risk exists with respect to that food business, the court, after giving the food business operator an opportunity of being heard, may by an order, impose the following prohibitions, namely:– (i) a prohibition on the use of the process or treatment for the purposes of the food business; (ii) a prohibition on the use of the premises or equipment for the purposes of the food business or any other food business of the same class or description; (iii) a prohibition on the use of the premises or equipment for the purposes of any food business. (2) The court may, on being satisfied that it is necessary so to do, by an order, impose a prohibition on the food business operator participating in the management of any food business, or any food business of a class or description specified in the order. (3) As soon as practicable after the making of an order under sub-section (1) or sub-section (2) (in this Act referred to as a “prohibition order”), the concerned Food Safety Officer shall– (a) serve a copy of the order on the food business operator; and (b) in the case of an order under sub-section (1), affix a copy of the order at a conspicuous place on such premises used for the purposes of the food business, and any person who knowingly contravenes such an order shall be guilty of an offence and be punishable with a fine which may extend to three lakh rupees. (4) The concerned Food Safety Officer shall with the approval of the Designated Officer issue a certificate to the effect that the food business operator has taken sufficient measures justifying lifting of the prohibition order, within seven days of his being satisfied on an application made by the food business operator for such a certificate or the said officer shall– (a) determine, as soon as is reasonably practicable and in any event within fourteen days, whether or not he is so satisfied; and (b) if he determines that he is not so satisfied, give notice to the food business operator of the reasons for that determination. (5) A prohibition order shall cease to have effect upon the court being satisfied, on an application made by the food business operator not less than six months after the prohibition order has been passed, that the food business operator has taken sufficient measures justifying the lifting of the prohibition order. (6) The court shall give a direction on an application by the food business operator, if the court thinks it proper so to do having regard to all the circumstances of the case, including in particular, the conduct of the food business operator since the making of the order; but no such application shall be entertained if it is not made– (a) within six months after the making of the prohibition order; or (b) within three months after the making by the food business operator of a previous application for such a direction. _Explanation.–For the purpose of this section,–_ (i) any reference above shall apply in relation to a manager of a food business as it applies in relation to the food business operator; and any reference to the food business operator of the business, or to the food business operator, shall be construed accordingly; (ii) “manager”, in relation to a food business, means any person who is entrusted by the food business operator with the day-to-day running of the business, or any part of the business. ----- **34. Emergency prohibition notices and orders.—(1) If the Designated Officer is satisfied that the** health risk condition exists with respect to any food business, he may, after a notice served on the food business operator (in this Act referred to as an “emergency prohibition notice”), apply to the Commissioner of Food Safety for imposing the prohibition. (2) If the Commissioner of Food Safety is satisfied, on the application of such an officer, that the health risk condition exists with respect to any food business, he shall, by an order, impose the prohibition. (3) The Designated Officer shall not apply for an emergency prohibition order unless, at least one day before the date of the application, he has served notice on the food business operator of the business of his intention to apply for the order. (4) As soon as practicable after the making of an emergency prohibition order, the Designated Officer shall require the Food Safety Officer to– (a) serve a copy of the order on the food business operator of the business; or (b) affix a copy of the order at a conspicuous place on such premises used for the purposes of that business; and any person who knowingly contravenes such an order shall be guilty of an offence and shall be punishable with imprisonment for a term which may extend to two years and with fine which may extend to two lakh rupees. (5) An emergency prohibition order shall cease to have effect on the issue by the Designated Officer of a certificate to the effect that he is satisfied that the food business operator has taken sufficient measures for justifying the lifting of such order. (6) The Designated Officer shall issue a certificate under sub-section (5) within seven days of an application by the food business operator for such a certificate and on his being not satisfied, the said officer shall give notice to the food business operator within a period of ten days indicating the reasons for such decision. **35. Notification of food poisoning.—The Food Authority may, by notification, require registered** medical practitioners carrying on their profession in any local area specified in the notification, to report all occurrences of food poisoning coming to their notice to such officer as may be specified. **36. Designated Officer.—The Commissioner of Food Safety shall, by order, appoint the Designated** Officer, who shall not be below the rank of a Sub-Divisional Officer, to be in-charge of food safety administration in such area as may be specified by regulations. (2) There shall be a Designated Officer for each district. (3) The functions to be performed by the Designated Officer shall be as follows, namely:— (a) to issue or cancel licence of food business operators; (b) to prohibit the sale of any article of food which is in contravention of the provisions of this Act and rules and regulations made thereunder; (c) to receive report and samples of article of foods from Food Safety Officer under his jurisdiction and get them analysed; (d) to make recommendations to the Commissioner of Food Safety for sanction to launch prosecutions in case of contraventions punishable with imprisonment; (e) to sanction or launch prosecutions in cases of contraventions punishable with fine; (f) to maintain record of all inspections made by Food Safety Officers and action taken by them in the performance of their duties; (g) to get investigated any complaint which may be made in writing in respect of any contravention of the provisions of this Act and the rules and regulations made thereunder; (h) to investigate any complaint which may be made in writing against the Food Safety Officer; and ----- (i) to perform such other duties as may be entrusted by the Commissioner of Food Safety. **37. Food Safety Officer.—(1) The Commissioner of Food Safety shall, by notification, appoint such** persons as he thinks fit, having the qualifications prescribed by the Central Government, as Food Safety Officers for such local areas as he may assign to them for the purpose of performing functions under this Act and the rules and regulations made thereunder. (2) The State Government may authorise any officer of the State Government having the qualifications prescribed under sub-section (1) to perform the functions of a Food Safety Officer within a specified jurisdiction. **38. Powers of Food Safety Officer.— (1) The Food Safety Officer may—** (a) take a sample— (i) of any food, or any substance, which appears to him to be intended for sale, or to have been sold for human consumption; or (ii) of any article of food or substance which is found by him on or in any such premises; which he has reason to believe that it may be required as evidence in proceedings under any of the provisions of this Act or of the regulations or orders made thereunder; or (b) seize any article of food which appears to the Food Safety Officer to be in contravention of this Act or the regulations made thereunder; and (c) keep it in the safe custody of the food business operator such article of food after taking a sample; and in both cases send the same for analysis to a Food Analyst for the local area within which such sample has been taken: Provided that where the Food Safety Officer keeps such article in the safe custody of the food business operator, he may require the food business operator to execute a bond for a sum of money equal to the value of such article with one or more sureties as the Food Safety Officer deems fit and the food business operator shall execute the bond accordingly. (2) The Food Safety Officer may enter and inspect any place where the article of food is manufactured, or stored for sale, or stored for the manufacture of any other article of food, or exposed or exhibited for sale and where any adulterant is manufactured or kept, and take samples of such articles of food or adulterant for analysis. (3) Where any sample is taken, its cost calculated at the rate at which the article is usually sold to the public shall be paid to the person from whom it is taken. (4) Where any article of food seized under clause (b) of sub-section (1) is of a perishable nature and the Food Safety Officer is satisfied that such article of food is so deteriorated that it is unfit for human consumption, the Food Safety Officer may, after giving notice in writing to the food business operator, cause the same to be destroyed. (5) The Food Safety Officer shall, in exercising the powers of entry upon, and inspection of any place under this section, follow, as far as may be, the provisions of the Code of Criminal Procedure, 1973 (2 of 1974) relating to the search or inspection of a place by a police officer executing a search warrant issued under that Code. (6) Any adulterant found in the possession of a manufacturer or distributor of, or dealer in, any article of food or in any of the premises occupied by him as such and for the possession of which he is unable to account to the satisfaction of the Food Safety Officer and any books of account or other documents found in his possession or control and which would be useful for, or relevant to, any investigation or proceeding under this Act, may be seized by the Food Safety Officer and a sample of such adulterant submitted for analysis to a Food Analyst: Provided that no such books of account or other documents shall be seized by the Food Safety Officer except with the previous approval of the authority to which he is subordinate. ----- (7) Where the Food Safety Officer takes any action under clause (a) of sub-section (1), or sub-section (2), or sub-section (4) or sub-section (6), he shall, call one or more persons to be present at the time when such action is taken and take his or their signatures. (8) Where any books of account or other documents are seized under sub-section (6), the Food Safety Officer shall, within a period not exceeding thirty days from the date of seizure, return the same to the person from whom they were seized after copies thereof or extracts there from as certified by that person in such manner as may be prescribed by the Central Government have been taken: Provided that where such person refuses to so certify and a prosecution has been instituted against him under this Act, such books of account or other documents shall be returned to him only after copies thereof and extracts there from as certified by the court have been taken. (9) When any adulterant is seized under sub-section (6), the burden of proving that such adulterant is not meant for purposes of adulteration shall be on the person from whose possession such adulterant was seized. (10) The Commissioner of Food Safety may from time to time issue guidelines with regard to exercise of powers of the Food Safety Officer, which shall be binding: Provided that the powers of such Food Safety Officer may also be revoked for a specified period by the Commissioner of Food Safety. **39. Liability of Food Safety Officer in certain cases.—Any Food Safety Officer exercising powers** under this Act or the rules and regulations made thereunder who— (a) vexatiously and without any reasonable ground seizes any article of food or adulterant; or (b) commits any other act to the injury of any person without having reason to believe that such act is necessary for the execution of his duty, shall be guilty of an offence under this Act and shall be liable to a penalty which may extend to one lakh rupees: Provided that in case any false complaint is made against a Food Safety Officer and it is proved so, the complainant shall be guilty of an offence under this Act and shall be punishable with fine which shall not be less than fifty thousand rupees but may extend to one lakh rupees. **40. Purchaser may have food analysed.—(1) Nothing contained in this Act shall be held to prevent** a purchaser of any article of food other than a Food Safety Officer from having such article analysed by the Food Analyst on payment of such fees and receiving from the Food Analyst a report of his analysis within such period as may be specified by regulations: Provided that such purchaser shall inform the food business operator at the time of purchase of his intention to have such article so analysed: Provided further that if the report of the Food Analyst shows that the article of food is not in compliance with the Act or the rules or regulations made thereunder, the purchaser shall be entitled to get refund of the fees paid by him under this section. (2) In case the Food Analyst finds the sample in contravention of the provisions of this Act and rules and regulations made thereunder, the Food Analysts shall forward the report to the Designated Officer to follow the procedure laid down in section 42 for prosecution. **41. Power of search, seizure, investigation, prosecution and procedure thereof.—(1)** Notwithstanding anything contained in sub-section (2) of section 31, the Food Safety Officer may search any place, seize any article of food or adulterant, if there is a reasonable doubt about them being involved in commission of any offence relating to food, and shall thereafter inform the Designated Officer of the actions taken by him in writing: Provided that no search shall be deemed to be irregular by reason only of the fact that witnesses for the search are not inhabitants of the locality in which the place searched is situated. ----- (2) Save as in this Act otherwise expressly provided, provisions of the Code of Criminal Procedure, 1973 (2 of 1974) relating to search, seizure, summon, investigation and prosecution, shall apply, as far as may be, to all action taken by the Food Safety Officer under this Act. **42. Procedure for launching prosecution.— (1) The Food Safety Officer shall be responsible for** inspection of food business, drawing samples and sending them to Food Analyst for analysis. (2) The Food Analyst after receiving the sample from the Food Safety Officer shall analyse the sample and send the analysis report mentioning method of sampling and analysis within fourteen days to Designated Officer with a copy to Commissioner of Food Safety. (3) The Designated Officer after scrutiny of the report of Food Analyst shall decide as to whether the contravention is punishable with imprisonment or fine only and in the case of contravention punishable with imprisonment, he shall send his recommendations within fourteen days to the Commissioner of Food Safety for sanctioning prosecution. (4) The Commissioner of Food Safety shall, if he so deems fit decide, within the period prescribed by the Central Government, as per the gravity of offence, whether the matter be referred to,– (a) a court of ordinary jurisdiction in case of offences punishable with imprisonment for a term up to three years; or (b) a Special Court in case of offences punishable with imprisonment for a term exceeding three years where such Special Court is established and in case no Special Court is established, such cases shall be tried by a Court of ordinary jurisdiction. (5) The Commissioner of Food Safety shall communicate his decision to the Designated Officer and the concerned Food Safety Officer who shall launch prosecution before courts of ordinary jurisdiction or Special Court, as the case may be; and such communication shall also be sent to the purchaser if the sample was taken under section 40. CHAPTER VIII ANALYSIS OF FOOD **43. Recognition and accreditation of laboratories, research institutions and referral food** **laboratory.— (1) The Food Authority may notify food laboratories and research institutions accredited** by National Accreditation Board for Testing and Calibration Laboratories or any other accreditation agency for the purposes of carrying out analysis of samples by the Food Analysts under this Act. (2) The Food Authority shall, establish or recognise by notification, one or more referral food laboratory or laboratories to carry out the functions entrusted to the referral food laboratory by this Act or any rules and regulations made thereunder. (3) The Food Authority may frame regulations specifying– (a) the functions of food laboratory and referral food laboratory and the local area or areas within which such functions may be carried out; (b) the procedure for submission to the said laboratory of samples of articles of food for analysis or tests, the forms of the laboratory’s reports thereon and the fees payable in respect of such reports; and (c) such other matters as may be necessary or expedient to enable the said laboratory to carry out its functions effectively. **44. Recognition of organisation or agency for food safety audit.—The Food Authority may** recognise any organisation or agency for the purposes of food safety audit and checking compliance with food safety management systems required under this Act or the rules and regulations made thereunder. **45. Food Analysts.—The Commissioner of Food Safety may, by notification, appoint such persons** as he thinks fit, having the qualifications prescribed by the Central Government, to be Food Analysts for such local areas as may be assigned to them by the Commissioner of Food Safety: ----- Provided that no person, who has any financial interest in the manufacture or sale of any article of food shall be appointed to be a Food Analyst under this section: Provided further that different Food Analysts may be appointed for different articles of food. **46. Functions of Food Analyst.— (1) On receipt of a package containing a sample for analysis from** a Food Safety Officer or any other person, the Food Analyst shall compare the seal on the container and the outer cover with specimen impression received separately and shall note the conditions of the seal thereon: Provided that in case a sample container received by the Food Analyst is found to be in broken condition or unfit for analysis, he shall within a period of seven days from the date of receipt of such sample inform the Designated Officer about the same and send requisition to him for sending second part of the sample. (2) The Food Analyst shall cause to be analysed such samples of article of food as may be sent to him by Food Safety Officer or by any other person authorised under this Act. (3) The Food Analyst shall, within a period of fourteen days from the date of receipt of any sample for analysis, send— (i) where such sample is received under section 38 or section 47, to the Designated Officer, four copies of the report indicating the method of sampling and analysis; and (ii) where such sample is received under section 40, a copy of the report indicating the method of sampling and analysis to the person who had purchased such article of food with a copy to the Designated Officer: Provided that in case the sample cannot be analysed within fourteen days of its receipt, the Food Analyst shall inform the Designated Officer and the Commissioner of Food Safety giving reasons and specifying the time to be taken for analysis. (4) An appeal against the report of Food Analyst shall lie before the Designated Officer who shall, if he so decides, refer the matter to the referral food laboratory as notified by the Food Authority for opinion. **47. Sampling and analysis.— (1) When a Food Safety Officer takes a sample of food for analysis,** he shall– (a) give notice in writing of his intention to have it so analysed to the person from whom he has taken the sample and to the person, if any, whose name, address and other particulars have been disclosed; (b) except in special cases as may be provided by rules made under this Act, divide the sample into four parts and mark and seal or fasten up each part in such a manner as its nature permits and take the signature or thumb impression of the person from whom the sample has been taken in such place and in such manner as may be prescribed by the Central Government: Provided that where such person refuses to sign or put his thumb impression, the Food Safety Officer shall call upon one or more witnesses and take his signature or thumb impression, in lieu of the signature or thumb impression of such person; (c) (i) send one of the parts for analysis to the Food Analyst under intimation to the Designated Officer; (ii) send two parts to the Designated Officer for keeping these in safe custody; and (iii) send the remaining part for analysis to an accredited laboratory, if so requested by the food business operator, under intimation to the Designated Officer: Provided that if the test reports received under sub-clauses (i) and (iii) are found to be at variance, then the Designated Officer shall send one part of the sample kept in his custody, to referral laboratory for analysis, whose decision thereon shall be final. ----- (2) When a sample of any article of food or adulterant is taken, the Food Safety Officer shall, by the immediate succeeding working day, send the sample to the Food Analyst for the area concerned for analysis and report. (3) Where the part of the sample sent to the Food Analyst is lost or damaged, the Designated Officer shall, on a requisition made to him, by the Food Analyst or the Food Safety Officer, despatch one of the parts of the sample sent to him, to the Food Analyst for analysis. (4) An article of food or adulterant seized, unless destroyed, shall be produced before the Designated Officer as soon as possible and in any case not later than seven days after the receipt of the report of the Food Analyst: Provided that if an application is made to the Designated Officer in this behalf by the person from whom any article of food has been seized, the Designated Officer shall by order in writing direct the Food Safety Officer to produce such article before him within such time as may be specified in the order. (5) In case of imported articles of food, the authorised officer of the Food Authority shall take its sample and send to the Food Analyst of notified laboratory for analysis who shall send the report within a period of five days to the authorised officer. (6) The Designated Officer, the Food Safety Officer, the authorised officer and the Food Analyst shall follow such procedure as may be specified by regulations. CHAPTER IX OFFENCES AND PENALTIES **48. General provisions relating to offences.— (1) A person may render any article of food injurious** to health by means of one or more of the following operations, namely:– (a) adding any article or substance to the food; (b) using any article or substance as an ingredient in the preparation of the food; (c) abstracting any constituents from the food; or (d) subjecting the food to any other process or treatment, with the knowledge that it may be sold or offered for sale or distributed for human consumption. (2) In determining whether any food is unsafe or injurious to health, regard shall be had to– (a) (i) the normal conditions of use of the food by the consumer and its handling at each stage of production, processing and distribution; (ii) the information provided to the consumer, including information on the label, or other information generally available to the consumer concerning the avoidance of specific adverse health effects from a particular food or category of foods not only to the probable, immediate or short-term or long-term effects of that food on the health of a person consuming it, but also on subsequent generations; (iii) to the probable cumulative toxic effects; (iv) to the particular health sensitivities of a specific category of consumers where the food is intended for that category of consumers; and (v) also to the probable cumulative effect of food of substantially the same composition on the health of a person consuming it in ordinary quantities; (b) the fact where the quality or purity of the article, being primary food, has fallen below the specified standard or its constituents are present in quantities not within the specified limits of variability, in either case, solely due to natural causes and beyond the control of human agency, then such article shall not be deemed to be unsafe or sub-standard or food containing extraneous matter. _Explanation.–For the purposes of this section, “injury”, includes any impairment, whether_ permanent or temporary, and “Injurious to health” shall be construed accordingly. ----- **49. General provisions relating to penalty.—While adjudging the quantum of penalty under this** Chapter, the Adjudicating Officer or the Tribunal, as the case may be, shall have due regard to the following:– (a) the amount of gain or unfair advantage, wherever quantifiable, made as a result of the contravention, (b) the Amount of loss caused or likely to cause to any person as a result of the contravention, (c) the repetitive nature of the contravention, (d) whether the contravention is without his knowledge, and (e) any other relevant factor. **50. Penalty for selling food not of the nature or substance or quality demanded.—Any person** who sells to the purchaser’s prejudice any food which is not in compliance with the provisions of this Act or the regulations made thereunder, or of the nature or substance or quality demanded by the purchaser, shall be liable to a penalty not exceeding five lakh rupees: Provided that the persons covered under sub-section (2) of section 31, shall for such non-compliance be liable to a penalty not exceeding twenty-five thousand rupees. **51. Penalty for sub-standard food.—Any person who whether by himself or by any other person on** his behalf manufactures for sale or stores or sells or distributes or imports any article of food for human consumption which is sub-standard, shall be liable to a penalty which may extend to five lakh rupees. **52. Penalty for misbranded food.— (1)Any person who whether by himself or by any other person** on his behalf manufactures for sale or stores or sells or distributes or imports any article of food for human consumption which is misbranded, shall be liable to a penalty which may extend to three lakh rupees. (2) The Adjudicating Officer may issue a direction to the person found guilty of an offence under this section, for taking corrective action to rectify the mistake or such article of food shall be destroyed. **53. Penalty for misleading advertisement.—Any person who publishes, or is a party to the** publication of an advertisement, which– (a) falsely describes any food; or (b) is likely to mislead as to the nature or substance or quality of any food or gives false guarantee, shall be liable to a penalty which may extend to ten lakh rupees. (2) In any proceeding the fact that a label or advertisement relating to any article of food in respect of which the contravention is alleged to have been committed contained an accurate statement of the composition of the food shall not preclude the court from finding that the contravention was committed. **54. Penalty for food containing extraneous matter.—Any person whether by himself or by any** other person on his behalf manufactures for sale or stores or sells or distributes or imports any article of food for human consumption containing extraneous matter, shall be liable to a penalty which may extend to one lakh rupees. **55. Penalty for failure to comply with the directions of Food Safety Officer.—If a food business** operator or importer without reasonable ground, fails to comply with the requirements of this Act or the rules or regulations or orders issued thereunder, as directed by the Food Safety Officer, he shall be liable to a penalty which may extend to two lakh rupees. **56. Penalty for unhygienic or unsanitary processing or manufacturing of food.—Any person** who, whether by himself or by any other person on his behalf, manufactures or processes any article of food for human consumption under unhygienic or unsanitary conditions, shall be liable to a penalty which may extend to one lakh rupees. ----- **57. Penalty for possessing adulterant.— (1) Subject to the provisions of this chapter, if any person** who whether by himself or by any other person on his behalf, imports or manufactures for sale, or stores, sells or distribute any adulterant shall be liable— (i) where such adulterant is not injurious to health, to a penalty not exceeding two lakh rupees; (ii) where such adulterant is injurious to health, to a penalty not exceeding ten lakh rupees. (2) In a proceeding under sub-section (1), it shall not be a defence that the accused was holding such adulterant on behalf of any other person. **58. Penalty for contraventions for which no specific penalty is provided.—Whoever contravenes** any provisions of this Act or the rules or regulations made thereunder, for the contravention of which no penalty has been separately provided in this Chapter, shall be liable to a penalty which may extend to two lakh rupees. **59. Punishment for unsafe food.—Any person who, whether by himself or by any other person on** his behalf, manufactures for sale or stores or sells or distributes or imports any article of food for human consumption which is unsafe, shall be punishable,– (i) where such failure or contravention does not result in injury, with [1][imprisonment for a term which may extend to three months and also with fine which may extend to three lakh rupees]; (ii) where such failure or contravention results in a non-grievous injury, with imprisonment for a term which may extend to one year and also with fine which may extend to three lakh rupees; (iii) where such failure or contravention results in a grievous injury, with imprisonment for a term which may extend to six years and also with fine which may extend to five lakh rupees; (iv) where such failure or contravention results in death, with imprisonment for a term which shall not be less than seven years but which may extend to imprisonment for life and also with fine which shall not be less than ten lakh rupees. **60. Punishment for interfering with seized items.—If a person without the permission of the Food** Safety Officer, retains, removes or tampers with any food, vehicle, equipment, package or labelling or advertising material or other thing that has been seized under this Act, he shall be punishable with imprisonment for a term which may extend to six months and also with fine which may extend to two lakh rupees. **61.** **[2][Penalty] for false information.—If a person, in connection with a requirement or direction** under this Act, provides any information or produces any document that the person knows is false or misleading, he shall be [3][liable to penalty which may extend to ten lakh rupees]. **62. Punishment for obstructing or impersonating a Food Safety Officer.—If a person without** reasonable excuse, resists, obstructs, or attempts to obstruct, impersonate, threaten, intimidate or assault a Food Safety Officer in exercising his functions under this Act, he shall be punishable with imprisonment for a term which may extend to three months and also with fine which may extend to one lakh rupees. **63. [2][Penalty] for carrying out a business without licence.—If any person or food business operator** (except the persons exempted from licensing under sub-section (2) of section 31 of this Act), himself or by any person on his behalf who is required to obtain licence, manufacturers, sells, stores or distributes or imports any article of food without licence, shall be [3][liable to penalty which may extend to ten lakh rupees]. **64. Punishment for subsequent offences.—If any person, after having been previously convicted of** an offence punishable under this Act subsequently commits and is convicted of the same offence, he shall be liable to— (i) twice the punishment, which might have been imposed on a first conviction, subject to the punishment being maximum provided for the same offence; 1. Subs. by Act 18 of 2023, s. 2 and Schedule, for certain words (w.e.f. 7-11-2023). 2. Subs. by s. 2 and Schedule, ibid., for “Punishment” (w.e.f. 7-11-2023). 3. Subs. by s. 2 and Schedule, ibid., for certain words (w.e.f. 7-11-2023). ----- (ii) a further fine on daily basis which may extend up to one lakh rupees, where the offence is a continuing one; and (iii) his licence shall be cancelled. (2) The Court may also cause the offender’s name and place of residence, the offence and the penalty imposed to be published at the offender’s expense in such newspapers or in such other manner as the court may direct and the expenses of such publication shall be deemed to be part of the cost attending the conviction and shall be recoverable in the same manner as a fine. **65. Compensation in case injury of death of consumer.— (1) Without prejudice to the other** provisions of this Chapter, if any person whether by himself or by any other person on his behalf, manufactures or distributes or sells or imports any article of food causing injury to the consumer or his death, it shall be lawful for the Adjudicating Officer or as the case may be, the court to direct him to pay compensation to the victim or the legal representative of the victim, a sum— (a) not less than five lakh rupees in case of death; (b) not exceeding three lakh rupees in case of grievous injury; and (c) not exceeding one lakh rupees, in all other cases of injury: Provided that the compensation shall be paid at the earliest and in no case later than six months from the date of occurrence of the incident: Provided further that in case of death, an interim relief shall be paid to the next of the kin within thirty days of the incident. (2) Where any person is held guilty of an offence leading to grievous injury or death, the Adjudicating Officer or the court may cause the name and place of residence of the person held guilty, the offence and the penalty imposed to be published at the offender’s expense in such newspapers or in such other manner as the Adjudicating Officer or the court may direct and the expenses of such publication shall be deemed to be part of the cost attending the conviction and shall be recoverable in the same manner as a fine. (3) The Adjudicating Officer or the court may also,— (a) order for cancellation of licence, re-call of food from market, forfeiture of establishment and property in case of grievous injury or death of consumer; (b) issue prohibition orders in other cases. **66. Offences by companies.–(1) Where an offence under this Act which has been committed by a** company, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that where a company has different establishments or branches or different units in any establishment or branch, the concerned Head or the person in-charge of such establishment, branch, unit nominated by the company as responsible for food safety shall be liable for contravention in respect of such establishment, branch or unit: Provided further that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purpose of this section,—_ (a) “company” means anybody corporate and includes a firm or other association of individuals; and ----- (b) “director”, in relation to a firm, means a partner in the firm. **67. Penalty for contravention of provisions of this Act in case of import of articles of food to be** **in addition to penalties provided under any other Act.—Any person who imports any article of food** which is in contravention of the provisions of this Act, rules and regulations made thereunder, shall, in addition to any penalty to which he may be liable under the provisions of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992) and the Customs Act, 1962 (52 of 1962) be also liable under this Act and shall be proceeded against accordingly. (2) Any such article of food shall be destroyed or returned to the importer, if permitted by the competent authority under the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992) or the Customs Act, 1962 (52 of 1962), or any other Act, as the case may be. CHAPTER X ADJUDICATION AND FOOD SAFETY APPELLATE TRIBUNAL **68. Adjudication.—For the purposes of adjudication under this Chapter, an officer not below the** rank of Additional District Magistrate of the district where the alleged offence is committed, shall be notified by the State Government as the Adjudicating Officer for adjudication in the manner as may be prescribed by the Central Government. (2) The Adjudicating Officer shall, after giving the person a reasonable opportunity for making representation in the matter, and if, on such inquiry, he is satisfied that the person has committed the contravention of provisions of this Act or the rules or the regulations made thereunder, impose such penalty as he thinks fit in accordance with the provisions relating to that offence. (3) The Adjudicating Officer shall have the powers of a civil court and— (a) all proceedings before him shall be deemed to be judicial proceedings within the meaning of sections 193 and 228 of the Indian Penal Code (45 of 1860); (b) shall be deemed to be a court for the purposes of sections 345 and 346 of the Code of Criminal Procedure, 1973 (2 of 1974). (4) While adjudicating the quantum of penalty under this Chapter, the Adjudicating Officer shall have due regard to the guidelines specified in section 49. **69. Power to compound offences.—The Commissioner of Food Safety may, by order, empower the** Designated Officer, to accept from petty manufacturers who himself manufacture and sell any article of food, retailers, hawkers, itinerant vendors, temporary stall holders against whom a reasonable belief exists that he has committed an offence or contravention against this Act, payment of a sum of money by way of composition of the offence which such person is suspected to have committed. (2) On the payment of such sum of money to such officer, the suspected person, if in custody, shall be discharged and no further proceedings in respect of the offence shall be taken against such person. (3) The sum of money accepted or agreed to be accepted as composition under sub section (1), shall not be more than one lakh rupees and due regard shall be made to the guidelines specified in section 49: Provided that no offence, for which punishment of imprisonment has been prescribed under this Act, shall be compounded. **70. Establishment of Food Safety Appellate Tribunal.—The Central Government or as the case** may be, the State Government may, by notification, establish one or more tribunals to be known as the Food Safety Appellate Tribunal to hear appeals from the decisions of the Adjudicating Officer under section 68. (2) The Central Government or the State Government, as the case may be, shall prescribe, the matters and areas in relation to which the Tribunal may exercise jurisdiction. (3) The Tribunal shall consist of one person only (hereinafter referred to as the Presiding Officer of the Tribunal) to be appointed, by notification, by the Central Government or the State Government, as the case may be: ----- Provided that no person shall be qualified for appointment as a Presiding Officer to the Tribunal unless he is or has been a District Judge. (4) The qualifications, appointment, term of office, salary and allowances, resignation and removal of the Presiding Officer shall be such as may be prescribed by the Central Government. (5) The procedure of appeal and powers of the Tribunal shall be such as may be prescribed by the Central Government. **71. Procedure and powers of Tribunal.— (1) The Tribunal shall not be bound by the procedure laid** down by the Code of Civil Procedure, 1908 (5 of 1908) but shall be guided by the principles of natural justice and, subject to the other provisions of this Act and the rules made thereunder, the Tribunal shall have powers to regulate its own procedure including the place at which it shall have its sittings. (2) The Tribunal shall have, for the purposes of discharging its functions under this Act, the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit, in respect of the following matters, namely:— (a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of documents or other electronic records; (c) receiving evidence on affidavits; (d) issuing commissions for the examination of witnesses or documents; (e) reviewing its decisions; (f) dismissing an application for default or deciding it ex parte; (g) any other matter which may be prescribed by the Central Government. (3) Every proceeding before the Tribunal shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purposes of section 196 of the Indian Penal Code (45 of 1860), it shall be deemed to be a civil court for all the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). (4) The appellant may either appear in person or authorise one or more legal practitioners or any of its officers to represent his case before the Tribunal. (5) The provisions of the Limitation Act, 1963 (36 of 1963), shall, except as otherwise provided in this Act, apply to an appeal made to the Tribunal. (6) Any person aggrieved by any decision or order of the Tribunal may file an appeal to the High Court within sixty days from the date of communication of the decision or order of the Tribunal to him on any question of fact or law arising out of such order: Provided that the High Court may, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within the said period, allow it to be filed within a further period not exceeding sixty days. **72. Civil court not to have jurisdiction.—No civil court shall have jurisdiction to entertain any suit** or proceeding in respect of any matter which an Adjudicating Officer or the Tribunal is empowered by or under this Act to determine and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act. **73. Power of court to try cases summarily.—Notwithstanding anything contained in the Code of** Criminal Procedure, 1973 (2 of 1974), all offences not triable by a Special Court, shall be tried in a summary way by a Judicial Magistrate of the first class or by a Metropolitan Magistrate and the provisions of sections 262 to 265 (both inclusive) of the said Code shall, as far as may be, apply to such a trial: Provided that in the case of any conviction in a summary trial under this section, it shall be lawful for the Magistrate to pass a sentence of imprisonment for a term not exceeding one year: ----- Provided further that when at the commencement of, or in the course of, a summary trial under this section, it appears to the Magistrate that the nature of the case is such that a sentence of imprisonment for a term exceeding one year may have to be passed or that it is, for any other reason, undesirable to try the case summarily, the Magistrate shall after hearing the parties, record an order to that effect and thereafter recall any witness who may have been examined and proceed to hear or rehear the case in the manner provided by the said Code. **74. Special courts and Public Prosecutor.— (1) Notwithstanding anything contained in this Act or** in the Code of Criminal Procedure, 1973 (2 of 1974), the Central Government or the State Government in their respective jurisdictions may, if consider expedient and necessary in the public interest, for the purposes of the trial of offences relating to grievous injury or death of the consumer for which punishment of imprisonment for more than three years has been prescribed under this Act, constitute, by notification in the Official Gazette, as many Special Courts with the concurrence of the Chief Justice of the High Court as may be necessary for such area or areas and for exercising such jurisdiction, as may be specified in the notification. (2) A Special Court may, on its own motion, or on an application made by the Public Prosecutor and if it considers it expedient or desirable so to do, sit for any of its proceedings at any place other than its ordinary place of sitting. (3) The trial under this Act of any offence by a Special Court shall have precedence over the trial of any other case against the accused in any other court (not being a Special Court) and shall be concluded in preference to the trial of such other case and accordingly the trial of such other case shall remain in abeyance. (4) For every Special Court, the Central Government or the State Government, as the case may be, shall appoint a person to be the Public Prosecutor and may appoint more than one person to be the Additional Public Prosecutors: Provided that the Central Government or the State Government, as the case may be, may also appoint for any case or class or group of cases, a Special Public Prosecutor. (5) A person shall not be qualified to be appointed as a Public Prosecutor or an Additional Public Prosecutor or a Special Public Prosecutor under this section unless he has been in practice as an Advocate for not less than seven years or has held any post, for a period of not less than seven years, under the Union or a State, requiring special knowledge of law. **75. Power to transfer cases to regular courts.—Where, after taking cognizance of any offence, a** Special Court is of the opinion that the offence is not triable by it, it shall, notwithstanding that it has no jurisdiction to try such offence, transfer the case for the trial of such offence to any court having jurisdiction under the Code of Criminal Procedure, 1973 (2 of 1974) and the court to which the case is transferred may proceed with the trial of the offence as if it had taken cognizance of the offence. **76. Appeal.— (1)Any person aggrieved by a decision or order of a Special Court may, on payment of** such fee as may be prescribed by the Central Government and after depositing the amount, if any, imposed by way of penalty, compensation or damage under this Act, within forty-five days from the date on which the order was served, prefer an appeal to the High Court: Provided that the High Court may entertain any appeal after the expiry of the said period of forty-five days, if it is satisfied that the appellant was prevented by sufficient cause for filing the appeal within the said period. (2) An appeal preferred under this section shall be disposed of by the High Court by a bench of not less than two judges. **77. Time limit for prosecutions.—Notwithstanding anything contained in this Act, no court shall** take cognizance of an offence under this Act after the expiry of the period of one year from the date of commission of an offence: Provided that the Commissioner of Food Safety may, for reasons to be recorded in writing, approve prosecution within an extended period of up to three years. ----- **78. Power of court to implead manufacturer, etc.—Where at any time during the trial of any** offence under this Act alleged to have been committed by any person, not being the importer, manufacturer, distributor or dealer of any article of food, the court, is satisfied, on the evidence adduced before it, that such importer, manufacturer, distributor or dealer is also concerned with that offence, then the court may, notwithstanding anything contained in sub-section (3) of section 319 of the Code of Criminal Procedure, 1973 (2 of 1974), or in section 71 of this Act, proceed against him as though a prosecution has been instituted under this Act. **79. Magistrate’s power to impose enhanced punishment.—Notwithstanding anything contained in** section 29 of the Code of Criminal Procedure, 1973 (2 of 1974), it shall be lawful for the court of ordinary jurisdiction to pass any sentence authorised by this Act, except a sentence of imprisonment for a term exceeding six years in excess of his powers under the said section. **80. Defences which may or may not be allowed in prosecution under this Act.— (A) Defence** relating to publication of advertisements– (1) In any proceeding for an offence under this Act in relation to the publication of an advertisement, it is a defence for a person to prove that the person carried on the business of publishing or arranging for the publication of advertisements and that the person published or arranged for the publication of the advertisement in question in the ordinary course of that business. (2) Clause (1) does not apply if the person— (a) should reasonably have known that the publication of the advertisement was an offence; or (b) had previously been informed in writing by the relevant authority that publication of such an advertisement would constitute an offence; or (c) is the food business operator or is otherwise engaged in the conduct of a food business for which the advertisements concerned were published. (B) Defence of due diligence— (1) In any proceedings for an offence, it is a defence if it is proved that the person took all reasonable precautions and exercised all due diligence to prevent the commission of the offence by such person or by another person under the person’s control. (2) Without limiting the ways in which a person may satisfy the requirements of clause (1), a person satisfies those requirements if it is proved— (a) that the commission of the offence was due to— (i) an act or default of another person; or (ii) reliance on information supplied by another person; and (b) (i) the person carried out all such checks of the food concerned as were reasonable in all the circumstances; or (ii) it was reasonable in all the circumstances to rely on checks carried out by the person who supplied such food to the person; and (c) that the person did not import the food into the jurisdiction from another country; and (d) in the case of an offence involving the sale of food, that— (i) the person sold the food in the same condition as and when the person purchased it; or (ii) the person sold the food in a different condition to that in which the person purchased it, but that the difference did not result in any contravention of this Act or the rules and regulations made thereunder; and ----- (e) that the person did not know and had no reason to suspect at the time of commission of the alleged offence that the person’s act or omission would constitute an offence under the relevant section. (3) In sub-clause (a) of clause (2), another person does not include a person who was— (a) an employee or agent of the defendant; or (b) in the case of a defendant which is a company, a director, employee or agent of that company. (4) Without limiting the ways in which a person may satisfy the requirements of clause (1) and item (i) of sub-clause (b) of clause (2), a person may satisfy those requirements by proving that— (a) in the case of an offence relating to a food business for which a food safety programme is required to be prepared in accordance with the regulations, the person complied with a food safety programme for the food business that complies with the requirements of the regulations, or (b) in any other case, the person complied with a scheme (for example, a quality assurance programme or an industry code of practice) that was— (i) designed to manage food safety hazards and based on national or international standards, codes or guidelines designed for that purpose, and (ii) documented in some manner. (C) Defence of mistaken and reasonable belief not available— In any proceedings for an offence under the provisions of this Act, it is no defence that the defendant had a mistaken but reasonable belief as to the facts that constituted the offence. (D) Defence in respect of handling food— In proceedings for an offence under section 56, it is a defence if it is proved that the person caused the food to which the offence relates to be destroyed or otherwise disposed of immediately after the food was handled in the manner that was likely to render it unsafe. (E) Defences of significance of the nature, substance or quality of food— It shall be no defence in a prosecution for an offence pertaining to the sale of any unsafe or misbranded article of food to allege merely that the food business operator was ignorant of the nature, substance or quality of the food sold by him or that the purchaser having purchased any article for analysis was not prejudiced by the sale. CHAPTER XI FINANCE, ACCOUNTS, AUDIT AND REPORTS **81. Budget of Food Authority.—(1) The Food Authority shall prepare, in such form and at such time** in each financial year as may be prescribed by the Central Government, its budget for the next financial year, showing the estimated receipts and expenditure of the Food Authority and forward the same to the Central Government. (2) The Food Authority with the prior approval of the Central Government, shall adopt financial regulation which specifies in particular, the procedure for drawing up and implementing the Authority’s budget. **82. Finances of the Food Authority.—(1) The Central Government may, after due appropriation,** make to the Food Authority grants of such sums of money as the Central Government may think fit. (2) The Food Authority on the recommendation of the Central Advisory Committee shall specify a graded fee from licensed food business operators, accredited laboratories or food safety auditors to be charged by the commissioner of Food Safety. ----- **83. Accounts and audit of Food Authority.—(1) The Food Authority shall maintain proper accounts** and relevant records and prepare an annual statement of accounts in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India. (2) The Comptroller and Auditor-General and any person appointed by him in connection with the audit of the accounts of the Food Authority under this Act shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General generally has in connection with the audit of Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Food Authority. (3) The accounts of the Food Authority, as certified by the Comptroller and Auditor- General or any other person appointed by him in this behalf, together with the audit report thereon shall be forwarded annually to the Central Government by the Food Authority and the Central Government shall cause the audit report to be laid, as soon as may be after it is received, before each House of Parliament. **84. Annual report of Food Authority.—(1) The Food Authority shall prepare once every year, in** such form and at such time as may be prescribed by the Central Government, an annual report giving a summary of its activities during the previous year and copies of the report shall be forwarded to the Central Government and State Governments. (2) A copy of the report received under sub-section (1) shall be laid, as soon as may be after it is received, before each House of Parliament. CHAPTER XII MISCELLANEOUS **85. Power of Central Government to issue directions to Food Authority and obtain reports and** **returns.—(1) Without prejudice to the foregoing provisions of this Act, the Food Authority shall, in** exercise of its powers and in performance of its functions under this Act, be bound by such directions on questions of policy, other than those relating to technical and administrative matters, as the Central Government may give in writing to it from time to time: Provided that the Food Authority shall, as far as practicable, be given an opportunity to express its views before any direction is given under this sub-section. (2) If any dispute arises between the Central Government and the Food Authority as to whether a question is or is not a question of policy, the decision of the Central Government thereon shall be final. (3) The Food Authority shall furnish to the Central Government such returns or other information with respect to its activities as the Central Government may, from time to time, require. **86. Power of Central Government to give directions to State Governments.—The Central** Government may give such directions, as it may deem necessary, to a State Government for carrying out all or any of the provisions of this Act and the State Government shall comply with such directions. **87. Members, officers of Food Authority and Commissioner of Food Safety to be public** **servants.—The Members, officers of the Food Authority and the Commissioners of Food Safety and** their officers shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this Act, to be public servants within the meaning section 21 of the Indian Penal Code (45 of 1860). **88. Protection of action taken in good faith.—No suit, prosecution or other legal proceedings shall** lie against the Central Government, the State Government, the Food Authority and other bodies constituted under this Act or any officer of the Central Government, the State Government or any member, officer or other employee of such Authority and bodies or any other officer acting under this Act for anything which is in good faith done or intended to be done under this Act or the rules or regulations made thereunder. **89. Overriding effect of this Act over all other food related laws.—The provisions of this Act shall** have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law other than this Act. ----- **90. Transfer of existing employees of Central Government Agencies governing various foods** **related Acts or Orders to Food Authority.—On and from the date of establishment of the Food** Authority, every employee holding office under the Central Government Agencies administering food laws immediately before that date shall hold his office in the Food Authority by the same tenure and upon the same terms and conditions of service including remuneration, leave, provident fund, retirement and other terminal benefits as he would have held such office if the Food Authority had not been established and shall continue to do so as an employee of the Food Authority or until the expiry of the period of six months from that date if such employee opts not to be the employee of the Food Authority. **91. Power of Central Government to make rules.—(1) The Central Government may, by** notification in the Official Gazette, make rules for carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) salary, terms and conditions of service of Chairperson and Members other than _ex officio_ Members under sub-section (2) and the manner of subscribing to an oath of office and secrecy under sub-section (3) of section 7; (b) qualifications of Food Safety Officer under sub-section (1) of section 37; (c) the manner of taking the extract of documents seized under sub-clause (8) of section 38; (d) determination of cases for referring to appropriate courts and time-frame for such determination under sub-section (4) of section 42; (e) qualifications of Food Analysts under section 45; (f) the manner of sending sample for analysis and details of the procedure to be followed in this regard under sub-section (1) of section 47; (g) the procedure to be followed in adjudication of cases under sub-section (1) of section 68; (h) qualifications, terms of office, resignation and removal of Presiding Officer under sub-section (4), the procedure of appeal and powers of Tribunal under sub-section (5) of section 70; (i) any other matter relating to procedure and powers of Tribunal under clause of sub-section (2) of section 71; (j) the fee to be paid for preferring an appeal to the High Court under sub-section (1) of section 76; (k) form and time of preparing budget under sub-section (1) of section 81; (l) form and statement of accounts under sub-section (1) of section 83; (m) the form and time for preparing annual report by Food Authority under sub-section (1) of section 84; and (n) any other matter which is required to be, or may be, prescribed or in respect of which provision is to be made by rules by the Central Government. **92. Power of Food Authority to make regulations.—(1) The Food Authority may, with the** previous approval of the Central Government and after previous publication, by notification, make regulations consistent with this Act and the rules made thereunder to carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:– (a) salaries and other conditions of service of officers and other employees of the Food Authority under sub-section (3) of section 9; (b) rules of procedure for transaction of business under sub-section (5) of section 11; (c) other functions of the Central Advisory Committee under sub-section (2) of section 12; (d) procedure of Scientific Committee and Panels under sub-section (4) of section 15; (e) notifying standards and guidelines in relation to articles of food meant for human consumption under sub-section (2) of section 16; ----- (f) procedure to be followed by Food Authority for transaction of business at its meetings under sub-section (1) of section 17; (g)making or amending regulations in view of urgency concerning food safety or public health under clause (d) of sub-section (2) of section 18; (h) limits of additives under section 19; (i) limits of quantities of contaminants, toxic substance and heavy metals, etc., under section 20; (j) tolerance limit of pesticides, veterinary drugs residues, etc, under section 21; (k) the manner of marking and labelling of foods under section 23; (l) form in which guarantee shall be given under sub-section (4) of section 26; (m) conditions and guidelines relating to food recall procedures under sub-section (4) of section 28; (n) regulations relating to functioning of Food Safety Officer under sub-section (5) of section 29; (o) notifying the registering authority and the manner of registration; the manner of making application for obtaining licence, the fees payable therefore and the circumstances under which such licence may be cancelled or forfeited under section 31; (p) the respective areas of which the Designated Officer shall be in-charge for food safety administration under sub-section (1) of section 36; (q) procedure in getting food analysed, details of fees, etc., under sub-section of section 40; (r) functions, procedure to be followed by food laboratories under sub-section (3) of section 43; (s) procedure to be followed by officials under sub-section (6) of section 47; (t) financial regulations to be adopted by the Food Authority in drawing up its budget under sub-section (2) of section 81; (u) issue guidelines or directions for participation in Codex Meetings and preparation of response to Codex matters; and (v) any other matter which is required to be, or may be, specified by regulations or in respect of which provision is to be made by regulations. **93. Laying of rules and regulations before Parliament.—Every rule and every regulation made** under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. **94. Power of State Government to make rules.—(1) Subject to the powers of the Central** Government and the Food Authority to make rules and regulations respectively, the State Government may, after previous publication and with the previous approval of the Food Authority, by notification in the Official Gazette, make rules to carry out the functions and duties assigned to the State Government and the State Commissioner of Food Safety under this Act and the rules and regulations made thereunder. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) other functions of the Commissioner of Food Safety under clause (f) of sub-section (2) of section 30; (b) earmarking a fund and the manner in which reward shall be paid to a person rendering assistance in detection of offence or apprehension of offender under section 95; and ----- (c) any other matter which is required to be, or may be prescribed or in respect of which provision is to be made by rules by the State Government. (3) Every rule made by the State Government under this Act shall be laid, as soon as may be after it is made, before each House of the State Legislature where it consists of two Houses or where such State Legislature consists of one House, before that House. **95. Reward by State Government.—The State Government may empower the Commissioner of** Food Safety to order payment of reward to be paid to a person who renders assistance in the detection of the offence or the apprehension of the offender, from such fund and in such manner as may be prescribed by the State Government. **96. Recovery of penalty.—A penalty imposed under this Act, if it is not paid, shall be recovered as** an arrear of land revenue and the defaulters licence shall be suspended till the penalty is paid. **97. Repeal and savings.— (1) With effect from such date as the Central Government may appoint in** this behalf, the enactment and Orders specified in the Second Schedule shall stand repealed: Provided that such repeal shall not affect:— (i) the previous operations of the enactment and Orders under repeal or anything duly done or suffered there under; or (ii) any right, privilege, obligation or liability acquired, accrued or incurred under any of the enactment or Orders under repeal; or (iii) any penalty, forfeiture or punishment incurred in respect of any offences committed against the enactment and Orders under repeal; or (iv) any investigation or remedy in respect of any such penalty, forfeiture or punishment, and any such investigation, legal proceedings or remedy may be instituted, continued or enforced and any such penalty, forfeiture or punishment may be imposed, as if this Act had not been passed. (2) If there is any other law for the time being in force in any State, corresponding to this Act, the same shall upon the commencement of this Act, stand repealed and in such case, the provisions of section 6 of the General Clauses Act, 1897(10 of 1897) shall apply as if such provisions of the State law had been repealed. (3) Notwithstanding the repeal of the aforesaid enactment and Orders, the licences issued under any such enactment or Order, which are in force on the date of commencement of this Act, shall continue to be in force till the date of their expiry for all purposes, as if they had been issued under the provisions of this Act or the rules or regulations made thereunder. (4) Notwithstanding anything contained in any other law for the time being in force, no court shall take cognizance of an offence under the repealed Act or Orders after the expiry of a period of three years from the date of the commencement of this Act. **98. Transitory provisions for food standards.—Notwithstanding the repeal of the enactment and** Orders specified in the Second Schedule, the standards, safety requirements and other provisions of the Act and the rules and regulations made thereunder and Orders listed in that Schedule shall continue to be in force and operate till new standards are specified under this Act or rules and regulations made thereunder: Provided that anything done or any action taken under the enactment and Orders under repeal shall be deemed to have been done or taken under the corresponding provisions of this Act and shall continue in force accordingly unless and until superseded by anything done or by any action taken under this Act. **99. Milk and Milk Products Order, 1992 shall be deemed to be regulations made under this** **Act.—On and from the date of commencement of this Act, the Milk and Milk Products Order, 1992** issued under the Essential commodities Act, 1955 (10 of 1955) shall be deemed to be the Milk and Milk Products Regulations, 1992 issued by the Food Authority under this Act. ----- (2) The Food Authority may, with the previous approval of the Central Government and after previous publication, by notification, amend the regulations specified in sub-section to carry out the purposes of this Act. **100. Amendments to the Infant Milk Substitutes, Feeding Bottles and Infant Foods (Regulation** **of Production, Supply and Distribution) Act, 1992.—As from the notified day, the provisions of the** Infant Milk Substitutes, Feeding Bottles and Infant Foods (Regulation of Production, Supply and Distribution) Act, 1992 (41 of 1992) (herein referred to as the principal Act) shall apply subject to the following amendments, namely:– (a) throughout the principal Act, any reference to “the Prevention of the Food Adulteration Act, 1954 (37 of 1954)” shall be substituted by reference to “the Food Safety and Standards Act, 2006”; (b) in section 12 of the principal Act, the reference to “any Food Inspector appointed under section 9 of the Prevention of the Food Adulteration Act, 1954 (37 of 1954)” shall be substituted by reference to “any Food Safety Officer appointed under the Food Safety and Standards Act, 2006”; (c) throughout the principal Act, any reference to “Food Inspector” shall be substituted by the expression “the Food Safety Officer”; and (d) in section 21 of the principal Act, in sub-section (1), the reference to clause (a) shall be substituted by the following, namely:– “(a) the Designated Officer or the Food Safety Officer directed under sub-section (5) of section 42 of the Food Safety and Standards Act, 2006; or”. **101. Power to remove difficulties.—If any difficulty arises in giving effect to the provisions of this** Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act, as may appear to be necessary, for removing the difficulty: Provided that no order shall be made under this section after of the expiry of the period of three years from the date of commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. ----- THE FIRST SCHEDULE [See section 5(1)(e)] Zone I 1. Andhra Pradesh 2. Goa 3. Karnataka 4. Kerala 5. Maharashtra 6. Orissa 7. Tamil Nadu Zone II 1. Haryana 2. Himachal Pradesh 3. Jammu and Kashmir 4. Punjab 5. Uttaranchal 6. Uttar Pradesh Zone III 1. Bihar 2. Chhattisgarh 3. Gujarat 4. Jharkhand 5. Madhya Pradesh 6. Rajasthan 7. West Bengal Zone IV 1. Arunachal Pradesh 2. Assam 3. Manipur 4. Meghalaya 5. Mizoram 6. Nagaland 7. Sikkim 8. Tripura Zone V 1. Andaman and Nicobar Islands 2. Chandigarh 3. Dadra and Nagar Haveli 4. Daman and Diu 5. Delhi 6. Lakshadweep 7. Pondicherry. ----- THE SECOND SCHEDULE (See section 97) 1. The Prevention of Food Adulteration Act, 1954 (37 of 1954). 2. The Fruit Products Order, 1955. 3. The Meat Food Products Order, 1973. 4. The Vegetable Oil Products (Control) Order, 1947. 5. The Edible Oils Packaging (Regulation) Order, 1998. 6. The Solvent Extracted Oil, De oiled Meal, and Edible Flour (Control) Order, 1967. 7. The Milk and Milk Products Order, 1992. 8. Any other order issued under the Essential Commodities Act, 1955 (10 of 1955) relating to food. -----

27-Aug-2006

35

The Actuaries Act, 2006

https://www.indiacode.nic.in/bitstream/123456789/2069/1/200635.pdf

central

# THE ACTUARIES ACT, 2006 __________________ # ARRANGEMENT OF SECTIONS __________________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II INSTITUTE OF ACTUARIES OF INDIA 3. Incorporation of Institute. 4. Transfer of assets, liabilities, etc., of Actuarial Society. 5. Objects of Institute. 6. Entry of names in register. 7. Associates and fellows. 8. Honorary, affiliate and student members. 9. Certificate of practice. 10. Members to be known as Actuaries. 11. Disqualifications. 12. Composition of Council of Institute. 13. Annual general meetings. 14. Re-election to Council. 15. Settlement of dispute regarding election. 16. Establishment of Tribunal. 17. President, Vice-President and Honorary Secretary. 18. Resignation from membership and filling up to casual vacancies. 19. Functions of Council. 20. Staff, remuneration and allowances. 21. Committees of Council. 22. Finances of Council. CHAPTER III REGISTER OF MEMBERS 23. Register. 24. Removal of name from register. 25. Re-entry in register. 1 ----- CHAPTER IV MISCONDUCT SECTIONS 26. Disciplinary Committee. 27. Appointment of Prosecution Director. 28. Authority, Council, Disciplinary Committee and Prosecution Director to have powers of civil court. 29. Action by Council on disciplinary Committee’s report. 30. Member to be afforded opportunity of being heard. 31. Professional or other misconduct defined. CHAPTER V APPEALS 32. Constitution of Appellate Authority. 33. Term of Office of Members of Authority. 34. Allowances, conditions of service of Members and procedure, etc., of Authority. 35. Officers and other staff of Authority. 36. Appeal to Authority. CHAPTER VI PENALTIES 37. Penalty for falsely claiming to be a member, etc. 38. Penalty for using name of Institution, awarding degrees of actuarial science, etc. 39. Companies not to engage in actuarial practice. 40. Unqualified person not to sign documents. 41. Offences by companies. 42. Sanction to prosecute. CHAPTER VII QUALITY REVIEW BOARD 43. Establishment of Quality Review Board. 44. Functions of Board. 45. Procedure of Board. 46. Terms and conditions of Chairperson and Members of Board. 47. Expenditure of Board. 2 ----- CHAPTER VIII DISSOLUTION OF THE ACTUARIAL SOCIETY OF INDIA REGISTERED UNDER THE SOCIETIES REGISTRATION ACT SECTIONS 48. Dissolution of Actuarial Society of India. 49. Provisions respecting employees of dissolved society. CHAPTER IX MISCELLANEOUS 50. Maintenance of more than one offices by Actuary. 51. Reciprocity. 52. Power of Central Government to issue directions. 53. Protection of action taken in good faith. 54. Members, etc., to be public servants. 55. Power of Central Government to make rules. 56. Power to make regulations. 57. Power of Central Government to issue directions for making or amending regulations. 58. Laying of rules and regulations. 59. Power to remove difficulties. THE SCHEDULE. 3 ----- # THE ACTUARIES ACT, 2006 ACT NO. 35 OF 2006 [27th August, 2006.] # An Act to provide for regulating and developing the profession of Actuaries and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-seventh Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Actuaries Act, 2006.** (2) It extends to the whole of India. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint: Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the commencement of that provision. **2. Definitions.—(1) In this Act, unless the context otherwise requires,—** (a) "Actuary" means a person skilled in determining the present effects of future contingent events or in finance modelling and risk analysis in different areas of insurance, or calculating the value of life interests and insurance risks, or designing and pricing of policies, working out the benefits, recommending rates relating to insurance business, annuities, insurance and pension rates on the basis of empirically based tables and includes a statistician engaged in such technology, taxation, employees' benefits and such other risk management and investments and who is a fellow member of the Institute; and the expression "actuarial science" shall be construed accordingly; (b) "Actuarial Society" means the Actuarial Society of India registered under the Societies Registration Act, 1860 (21 of 1860) and the Bombay Public Trusts Act, 1950 (Bombay Act No XXXIX of 1950); (c) "appointed day" means the date on which the Institute is constituted under sub-section (1) of section 3; (d) "Authority" means the Appellate Authority referred to in section 32; (e) "Board" means the Quality Review Board constituted under sub-section (1) of section 43; (f) "Council" means the Council of the Institute as referred to in section 12; (g) "fellow" means a fellow member of the Institute; (h) "Institute" means the Institute of Actuaries of India constituted under section 3; (i) "member" means an individual whose name appears in the register of members maintained by the Institute; (j) "prescribed" means prescribed by rules made under this Act; (k) "President" means the President of the Council; (l) "register" means the register of members maintained by the Institute under this Act; (m) "specified" means specified by regulations made under this Act; 1. 10th November, 2006, vide notification No. S.O. 1912(E) dated 28th November, 2006, see Gazette of India, Extraordinary, Part II, sec. 3(ii) 4 ----- (n) "Tribunal" means a Tribunal established under sub-section (1) of section 16; (o) ''Vice-President'' means the Vice-President of the Council; (p) "year" means the period commencing on the 1st day of April of any year and ending on the 31st day of March of the succeeding year. (2) Save as otherwise provided in this Act, a member of the Institute shall be deemed "to be in practice" when individually or in partnership with Actuaries in practice as a member or an employee of a company, he, whether or not in consideration of remuneration received or to be received,— (i) engages himself in actuarial profession; or (ii) offers to perform or performs services involving the application of actuarial techniques in the fields of insurance, pension, investment, finance and management; or (iii) renders such other services as, in the opinion of the Council, are or may be rendered by an actuary in practice; or (iv) is in employment of a person engaged in one or more of the activities mentioned in clauses (i), (ii) and (iii) above, and the words "to be in practice" with their grammatical variations and cognate expressions shall be construed accordingly. _Explanation.—For the purposes of this sub-section, the expression "company" includes a public_ financial institution as defined in section 4A of the Companies Act, 1956 (1 of 1956). CHAPTER II INSTITUTE OF ACTUARIES OF INDIA **3. Incorporation of Institute.—(1) With effect from such date as the Central Government may, by** notification in the Official Gazette, appoint, all persons whose names are entered in the register of the Actuarial Society at the commencement of this Act and all persons who may thereafter have their names entered in the register to be maintained under this Act, so long as they continue to have their names borne on the register, are hereby constituted a body corporate by the name of the Institute of Actuaries of India and all such persons shall be known as members of the Institute. (2) The Institute shall have perpetual succession and a common seal and shall have power to acquire, hold and dispose of property, both movable and immovable, and shall by its name sue or be sued. (3) The head office of the Institute shall be situated at such place as may be decided by the Central Government. **4. Transfer of assets, liabilities, etc., of Actuarial Society.—On the appointed day,—** (a) all the assets and liabilities of the Actuarial Society shall stand transferred to, and vested in, the Institute. _Explanation.—The assets of the Actuarial Society shall be deemed to include all rights and_ powers and all properties, whether movable or immovable, including, in particular, cash balances, deposits and all other interests and rights in, or arising out of, such properties as may be in the possession of the said Society and all books of account and other documents relating to the same; and liabilities shall be deemed to include all debts, liabilities and obligations of whatever kind; (b) without prejudice to the provisions of clause (a), all debts, obligations and liabilities incurred, all contracts entered into and all matters and things engaged to be done by, with or for the Actuarial Society immediately before that day, for or in connection with the purpose of the said Society, shall be deemed to have been incurred, entered into or engaged to be done by, with or for, the Institute; (c) all sums of money due to the Actuarial Society immediately before that day shall be deemed to be due to the Institute; and 5 ----- (d) all suits and other legal proceedings instituted or which could have been instituted by or against the Actuarial Society immediately before that day may be continued or may be instituted by or against the Institute. **5. Objects of Institute.—The objects of the Institute shall be—** (a) to promote, uphold and develop the standards of professional education, training, knowledge, practice and conduct amongst Actuaries; (b) to promote the status of the Actuarial profession; (c) to regulate the practice by the members of the profession of Actuary; (d) to promote, in the public interest, knowledge and research in all matters relevant to Actuarial science and its application; and (e) to do all such other things as may be incidental or conducive to the above objects or any of them. **6. Entry of names in register.—(1) Any of the following persons shall be entitled to have his name** entered in the register, namely:— (a) any person who immediately before the appointed day was an associate or a fellow (including an honorary fellow) of the Actuarial Society; (b) any person who has passed the examination conducted by the Actuarial Society and has completed training either as specified by the said Society or as specified by the Council, except any such person who is not a permanent resident of India; (c) any person who has passed such examination and completed such training, as may be specified for membership of the Institute; (d) any person who has passed such other examination and completed such other training outside India as is specified as being equivalent to the examination and training specified under this Act for membership of the Institute: Provided that in the case of any person belonging to any of the classes mentioned in this sub-section who is not permanently residing in India, the Central Government or the Council may impose such further conditions as it may deem necessary or expedient in the public interest. (2) Every person mentioned in clause (a) of sub-section (1) may have his name entered in the register without the payment of any entrance fee. (3) Every person belonging to any of the classes mentioned in clauses (b), (c) and (d) of sub-section (1) shall have his name entered in the register on an application being made and granted in the specified manner and on payment of such fees, as may be specified. (4) The Council shall take such steps as may be necessary for the purpose of having the names of all persons belonging to the class mentioned in clause (a) of sub-section (1) entered in the register before the appointed day. (5) Notwithstanding anything contained in this section, the Council may confer on any person honorary fellow membership, if the Council is of the opinion that such person has made a significant contribution to the profession of Actuary and thereupon the Council shall enter the name of such person in the register but such person shall not have any voting rights in any election or meetings of the Institute and shall not also be required to pay any fee to the Institute. **7. Associates and fellows.—(1) The members of the Institute shall be divided into two classes** designated respectively as associates and fellows. (2) Any person other than a person to whom the provisions of sub-section (3) apply, shall, on his name being entered in the register, be deemed to have become an associate and as long as his name remains so entered, shall be entitled to use the letters "AIAI" after his name to indicate that he is an associate. 6 ----- (3) Any person who was a fellow of the Actuarial Society and who is entitled to have his name entered in the register under clause (a) of sub-section (1) of section 6 shall be entered in the register as a fellow. (4) Any person whose name is entered in the register as fellow shall, so long as his name remains so entered, be entitled to use the letters "FIAI" after his name to indicate that he is a fellow. **8. Honorary, affiliate and student members.—(1) The Council may choose, in such manner as may** be specified, any person of eminence in matters relating to and of interest to the profession of Actuary as an honorary member of the Institute provided that he is not practicing as an Actuary. (2) Any person, who is a fellow member, or is a holder of membership considered equivalent to the fellow membership of the Institute, of any other institution similar to the Institute, whether within or outside India, may be admitted as an affiliate member for such period, and on such terms and conditions as may be specified. (3) Any person who enrolls himself for examination of the Institute, and possesses such academic qualifications as may be specified, may be admitted as a student member of the Institute on such terms and conditions as may be specified. (4) An honorary member or an affiliate member or a student member shall have no right to vote on any matter or resolution in any meeting of the Institute. **9. Certificate of practice.—(1) No member of the Institute shall be entitled to practice unless he** fulfils the qualifications as may be specified and obtains from the Council a certificate of practice. (2) A member who desires to be entitled to practice shall make an application in such form and pay such annual fee for certificate of practice as may be specified and such fee shall be payable on or before the first day of April in each year. (3) The certificate of practice obtained under sub-section (1) may be cancelled by the Council under such circumstances as may be specified. **10. Members to be known as Actuaries.—Every member of the Institute in practice shall, and any** other member may, use the designation of an Actuary and no member using such designation shall use any other description whether in addition thereto or in substitution therefor: Provided that nothing contained in this section shall be deemed to prohibit any such member from adding any other description or letters to his name, if entitled thereto, to indicate membership of such other Institute, whether in India or elsewhere, as may be recognised in this behalf by the Council, or any other qualification that he may possess, or to prohibit a firm, all the partners of which are members of the Institute and in practice, from being known by its firm name as Actuaries. **11. Disqualifications.—Notwithstanding anything contained in section 6, a person shall not be** entitled to have his name entered in, or borne on, the register if he— (a) has not attained the age of twenty-one years at the time of his application for the entry of his name in the register; or (b) is of unsound mind and stands so adjudged by a competent court; or (c) is an undischarged insolvent; or (d) being a discharged insolvent, has not obtained from the court a certificate stating that his insolvency was caused by misfortune and without any misconduct on his part; or (e) has been convicted by a competent court whether within or outside India, of an offence involving moral turpitude and punishable with imprisonment or of an offence, not of a technical nature, committed by him in his professional capacity unless in respect of the offence committed he has either been granted a pardon or, on an application made by him in this behalf, the Central Government has, by an order in writing, removed the disqualification; or (f) has been removed from the membership of the Institute on being found on inquiry to have been guilty of a professional or other misconduct: 7 ----- Provided that a person who has been removed from the membership for a specified period shall not be entitled to have his name entered in the Register until the expiry of such period. **12. Composition of Council of Institute.—(1)There shall be a Council of the Institute for the** management of the affairs of the Institute and for discharging the functions assigned to it by or under this Act. (2) The Council shall be composed of the following persons, namely:— (a) a minimum of nine and not more than twelve persons from amongst fellow members to be elected by the fellow and the associate members of the Institute in such manner as may be prescribed: Provided that a fellow of the Institute, who has been found guilty of any professional or other misconduct and whose name is removed from the Register or has been awarded penalty of fine, shall not be eligible to contest election,— (i) in case of misconduct falling under the Schedule of this Act [except Part IV(B)], for a period of three years; or (ii) in case of misconduct falling under Part IV(B) of the Schedule of this Act, for a period of six years, after the completion of the period of removal of name of the fellow from the Register or the payment of fine is made, as the case may be; and (b) (i) an officer not below the rank of Joint Secretary to the Government of India, to be nominated by the Central Government to represent the Ministry of Finance; (ii) one person from the Insurance Regulatory and Development Authority constituted under the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999) nominated by the Central Government; and (iii) not more than two persons having knowledge in the field of life insurance, general insurance, finance, economics, law, accountancy or any other discipline which in the opinion of the Central Government, would be useful to the Council, to be nominated in such manner as may be prescribed: Provided that till such time as the Council is constituted under this Act, the Executive Committee of the Actuarial Society shall discharge all the functions and shall have all the powers of the Council. (3) No person holding a post under the Central Government or a State Government, as the case may be, shall be eligible for election to the Council under clause (a) of sub-section (2). (4) One-third of the members of the Council referred to in clause (a) of sub-section (2) shall retire as soon as may be on the expiration of every second year by rotation but shall be eligible for re-election. (5) Any person nominated under clause (b) of sub-section (2) shall hold office for a period of six years from the date of his nomination unless he is removed earlier by the Central Government and shall be eligible for re-nomination: Provided that he shall be given an opportunity of being heard before such removal. **13. Annual general meetings.—The Council shall every year hold an annual general meeting of the** Institute to elect its members under clause (a) of sub-section (2) of section 12, or to discuss any matter which it deems fit, and not more than fifteen months shall elapse between the date of one annual general meeting of the Institute and that of the next: Provided that from the appointed day the Institute may hold its first annual general meeting within a period of not more than eighteen months and if such general meeting is held within that period, it shall not be necessary for the Institute to hold any general meeting in that year: Provided further that the Central Government may, for sufficient reasons, extend the time within which any general meeting shall be held. 8 ----- **14. Re-election to Council.—(1) Subject to the provisions of sub-section (2), a member of the** Council elected under clause (a) of sub- section (2) of section 12 shall be eligible for re-election but not for more than two consecutive terms. (2) A member of the Council, who is or has been elected, as the President under sub-section (1) of section 17, shall not be eligible for election or nomination as a member of the Council. **15. Settlement of disputes regarding election.—In case of any dispute regarding any election under** clause (a) of sub-section (2) of section 12, the aggrieved person may make an application within thirty days from the date of the declaration of the result of the election to the Council which shall forward the same forthwith to the Central Government. **16. Establishment of Tribunal.—(1) On receipt of any application under section 15, the Central** Government shall, by notification, establish a Tribunal consisting of a Presiding Officer and two other Members to decide such dispute and the decision of such Tribunal shall be final. (2) A person shall not be qualified for appointment,— (a) as a Presiding Officer of the Tribunal unless he has been a member of the Indian Legal Service and has held a post in Grade I of the service for at least three years; (b) as a Member unless he has been a member of the Council for at least one full term and who is not a sitting Member of the Council or who has not been a candidate in the election under dispute; and (c) as a Member unless he holds the post of a Joint Secretary to the Government of India or any other post under the Central Government carrying a scale of pay which is not less than that of a Joint Secretary to the Government of India. (3) The terms and conditions of service of the Presiding Officer and Members of the Tribunal, their place of meetings, remuneration and allowances shall be such as may be prescribed. (4) The expenses of the Tribunal shall be borne by the Council. **17. President, Vice-President and Honorary Secretary.—(1) The Council shall, at its first meeting,** elect three of its members from amongst persons referred to in clause (a) of sub-section (2) of section 12, to be respectively the President, Vice-President and Honorary Secretary thereof, and as often as the office of the President, Vice-President and Honorary Secretary falls vacant, the Council shall choose one of the member in the same manner: Provided that the Chairperson of the Council of the Actuarial Society shall continue to hold such office as President after the commencement of this Act, until such time as a President is elected under the provisions of this sub-section. (2) The President shall be the Chief Executive Officer of the Council. (3) The President, the Vice-President or the Honorary Secretary shall hold office for a period of two years from the date on which he is chosen provided that he continues to be a member of the Council. (4) The President and the Vice-President shall, notwithstanding the expiration of his term, continue to hold office until his successor enters upon his office. (5) In the event of occurrence of any vacancy in the office of the President, the Vice-President shall act as the President until a new President is elected in accordance with the provisions of this section to fill such vacancy and enters upon his office. (6) When the President is unable to discharge his functions owing to absence, illness or any other cause, the Vice-President shall discharge his functions until the President resumes his duties. **18. Resignation from membership and filling up of casual vacancies.—(1) Any member of the** Council may at any time resign his membership by writing under his hand addressed to the President, and the seat of such member shall become vacant when such resignation is accepted and notified by the Council. 9 ----- (2) A member of the Council, other than a member nominated under clause (b) of sub-section (2) of section 12 shall be deemed to have vacated his seat if he is declared by the Council to have been absent without sufficient reason from three consecutive meetings of the Council, or of any of the Committees constituted by the Council, and of which he is a member or he has been found guilty of any professional or other misconduct and awarded penalty of fine or if his name is, for any cause, removed from the register under the provisions of sections 24 and 30. (3) A casual vacancy in the office of a member of the Council shall be filled by fresh election or by nomination by the Central Government, as the case may be, and the person elected or nominated to fill the vacancy shall hold office only for the remainder of the term for which the member in whose place he was elected or nominated would have held that office: Provided that no election shall be held to fill a casual vacancy occurring within one year prior to the date of the expiration of the term of such member. (4) No act done by the Council shall be called in question on the ground merely of the existence of any vacancy in, or defect in the constitution of the Council. **19. Functions of Council.—(1) The duty of carrying out the functions under the provisions of this** Act shall be vested in the Council. (2) In particular and without prejudice to the generality of the foregoing power, the functions of the Council shall include— (a) the holding of examination of the candidates for enrolment and specifying fees therefor; (b) the specifying of qualifications for entry in the register; (c) the recognition of foreign qualifications and training for the purposes of enrolment; (d) the granting of or refusal to grant the certificate of practice under this Act; (e) the maintenance and publication of a register of persons qualified to practice as Actuaries; (f) the levy and collection of fees from members, students, examinees and other persons; (g) the removal of names from the register and the restoration to the register of names which have been removed; (h) the regulation and maintenance of the status and standard of professional qualifications of members of the Institute; (i) to issue guidelines for the observance of the members, including the student members; (j) to receive gifts, grants, donations or benefactions from the Central or State Governments and to receive bequests, donations and transfer of movable or immovable properties from testators, donors or transferors, as the case may be; (k) co-operating with educational or other institutions in any part of the world having objects wholly or partly similar to those of the Institute by exchange of members and generally in such manner as may be conducive to achievement of their common objects; (l) instituting and awarding fellowships, scholarships, prizes and medals; (m) giving gifts, grants, donations or benefactions to other institutions or bodies having objects similar to those of the Institute; (n) the carrying out, by granting financial assistance to persons other than members of the Council, or in any other manner, of research in the actuarial science; (o) the maintenance of a library and publication of books, journals and periodicals relating to actuarial science; (p) the exercise of disciplinary powers conferred by this Act; 10 ----- (q) establishing such regional council or councils as may be decided from time to time and fixing their headquarters; and (r) doing all such things as may be necessary, incidental or conducive to the attainment of all or any of the objects of the Institute. **20. Staff, remuneration and allowances.—(1) For the efficient performance of its functions, the** Council may— (a) appoint an Executive Director, a Treasurer and such other officers and employees as it deems necessary and fix their salaries, fees, allowances and other conditions of service; and (b) fix the allowances of the President, the Vice-President, the Honorary Secretary and other members of the Council and its Committees, in such manner as may be specified. (2) The Executive Director of the Council shall be entitled to participate in the meetings of the Council but shall not be entitled to vote thereat. **21. Committees of Council.—(1) The Council may constitute such committees from amongst its** members, and co-opt therein persons who are not members of the Institute, as it deems necessary for the purpose of carrying out the provisions of this Act: Provided that the number of co-opted members shall not exceed one-third of the total membership of the committee. (2) Every committee constituted under this section shall elect its own Chairman: Provided that— (i) where the President is a member of such committee, he shall be the Chairman of such committee, and in his absence, the Vice-President, if he is a member of such committee, shall be its Chairman; and (ii) where the President is not a member of such committee but the Vice-President is a member, he shall be its Chairman. (3) The committees shall exercise such functions and be subject to such conditions as may be specified. **22. Finances of Council.—(1) There shall be established a fund under the management and control** of the Council into which shall be paid all moneys (including donations and grants) received by the Council and out of which shall be met all expenses and liabilities incurred by the Council. (2) The Council may invest any money for the time being standing to the credit of the fund in any security as it may deem prudent consistent with the considerations of security of such investments and maximum returns thereon. _Explanation.—For the purposes of this sub-section, the expression "securities" shall have the_ meaning assigned to it in section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) as amended from time to time. (3) The Council shall keep proper accounts of the fund distinguishing capital account from revenue account. (4) The annual accounts of the Institute shall be subject to audit by a Chartered Accountant in practice within the meaning of the Chartered Accountants Act, 1949 (38 of 1949) to be appointed annually by the Council: Provided that no member of the Council who is a Chartered Accountant or a person who is in partnership with such member shall be eligible for appointment as an auditor under this sub-section. (5) As soon as may be practicable at the end of each year, but not later than the 30th day of September of the year next following, the Council shall cause to be published in the Gazette of India, a copy of the audited accounts and the report of the Council for that year and copies of the said accounts and report shall be forwarded to the Central Government and to all the members of the Institute. 11 ----- (6) The Council may borrow from a scheduled bank, as defined in the Reserve Bank of India Act, 1934 (2 of 1934) or from any public financial institution— (a) any money required for meeting its liabilities on capital account on the security of the fund or on the security of any other asset, for the time being belonging to it; or (b) for the purpose of meeting current liabilities, pending the receipt of income, by way of temporary loan or overdraft. _Explanation.—The expression "public financial institution" means a financial institution specified in_ section 4A of the Companies Act, 1956 (1 of 1956). CHAPTER III REGISTER OF MEMBERS **23. Register.—(1) The Council shall maintain in the specified manner a register of the members of** the Institute. (2) The register shall include the following particulars about every member of the Institute, namely:— (a) his full name, date of birth, domicile, residential and professional addresses; (b) the date on which his name is entered in the register; (c) his qualifications; (d) whether he holds a certificate of practice; and (e) any other particulars which may be specified. (3) The Council shall cause to be published in such manner as may be specified a list of members as on the 1st day of April each year, and shall, if requested to do so by any such member, send him a copy of such list, on payment of such amount as may be specified. (4) Every member of the Institute shall, on his name being entered in the register, pay such annual membership fee as may be specified by the Council. **24. Removal of name from Register.—The Council may, by order, remove from the register the** name of any member of the Institute— (a) who is dead; or (b) from whom a request has been received to that effect; or (c) who has not paid any specified fee required to be paid by him; or (d) who is found to have been subject to, at the time when his name was entered in the register, or who at any time thereafter has become subject to, any of the disqualifications mentioned in section 11; or (e) who for any other reason has ceased to be entitled to have his name borne on the register. **25. Re-entry in register.—The Council may re-enter the name of a member whose name has been** removed from the register for reasons mentioned in clauses (b), (c), (d) and (e) of section 24, by an order, and on paying such fees, and after satisfying such conditions and requirements as may be specified. 12 ----- CHAPTER IV MISCONDUCT **26. Disciplinary Committee.—(1) The Council shall constitute a Disciplinary Committee consisting** of the President or the Vice-President of the Council as the Presiding Officer and two members of the Council elected by the Council and two members to be nominated by the Central Government from amongst the persons of eminence having experience in the field of law, education, economics, business, finance, accountancy or public administration: Provided that the Council may constitute more regional Disciplinary Committees as and when it deems fit. (2) The Disciplinary Committee in making the inquiry under the provisions of this Act shall follow such procedure and submit the report to the Council within such time as may be prescribed. **27. Appointment of Prosecution Director.—(1) The Council may, by notification, appoint a** Prosecution Director and such other employees to assist the Disciplinary Committee in making inquiries in respect of any information or complaint received by the Council under the provisions of this Act. (2) In order to make inquiries under the provisions of this Act, the Prosecution Director shall follow such procedure as may be prescribed. **28. Authority, Council, Disciplinary Committee and Prosecution Director to have powers of** **civil court.—For the purposes of an inquiry under the provisions of this Act, the Authority, the** Disciplinary Committee and the Prosecution Director shall have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908), in respect of the following matters, namely:— (a) summoning and enforcing the attendance of any person and examining him on oath; (b) the discovery and production of any document; and (c) receiving evidence on affidavit. **29. Action by Council on Disciplinary Committee's report.—(1) On receipt of a report from the** Disciplinary Committee, if the Council is satisfied that the member of the Institute is guilty of any professional or other misconduct, it shall record its findings accordingly and shall proceed in accordance with the provisions of section 30. (2) In case the Council is not satisfied with the report of the Disciplinary Committee and is of the opinion that it requires further inquiry, it may refer the report again to the Disciplinary Committee for such further inquiry as may be directed through an order of the Council. (3) If the Council disagrees with the findings of the Disciplinary Committee, it may direct the Prosecution Director or itself make an appeal to the Authority. **30. Member to be afforded opportunity of being heard.—Where the Council is of the opinion that** a member is guilty of a professional or other misconduct mentioned in the Schedule, it shall afford to the member a reasonable opportunity of being heard before making any order against him and may thereafter take any one or more of the following actions, namely:— (a) reprimand the member; or (b) remove the name of the member from the register permanently or for such period, as it thinks fit. (c) impose such fine as it may think fit, which may extend to five lakh rupees. _Explanation.—For the purposes of this section, “member of the Institute” includes a person who was_ a member of the Institute on the date of the alleged misconduct although he has ceased to be a member of the Institute at the time of the inquiry. **31. Professional or other misconduct defined.—For the purposes of this Act, the expression** “professional or other misconduct” shall be deemed to include any act or omission provided in the Schedule, but nothing in this section shall be construed to limit or abridge in any way the power conferred 13 ----- or duty cast on the Disciplinary Committee or the Prosecution Director to inquire into the conduct of any member of the Institute under any other circumstances. CHAPTER V APPEALS **32. Constitution of Appellate Authority.—The Appellate Authority constituted under sub-section** (1) of section 22A of the Chartered Accountants Act, 1949 (38 of 1949), shall be deemed to be the Appellate Authority for the purposes of this Act subject to the modification that for clause (b) of said subsection (1), the following clause had been substituted, namely:— “(b) the Central Government shall, by notification, appoint two part-time Members from amongst the persons who have been members of the Council of the Institute of Actuaries for at least one full term and who are not sitting members of the Council;”. **33. Term of office of Members of Authority.—A person appointed as a Member shall hold office** for a term of three years from the date on which he enters upon his office or until he attains the age of sixty-seven years, whichever is earlier. **34. Allowances, conditions of service of Members and procedure, etc., of Authority.—The** provisions of section 22C, section 22D and section 22F of the Chartered Accountants Act, 1949 (38 of 1949) shall apply to the Authority in relation to allowances and terms and conditions of service of its Chairperson and members, and in discharge of its functions under this Act as they apply to it in the discharge of its functions under the Chartered Accountants Act, 1949. **35. Officers and other staff of Authority.—(1) The Council shall make available to the Authority** such officers and other staff members as may be necessary for the efficient performance of the functions of the Authority. (2) The salaries and allowances and conditions of service of the officers and other staff members of the Authority shall be such as may be specified. **36. Appeal to Authority.—(1) Any member of the Institute aggrieved by any order of the Council** imposing on him any of the penalties referred to in section 30, may, within ninety days of the date on which the order is communicated to him, prefer an appeal to the Authority: Provided that the Authority may entertain any such appeal after the expiry of the said period of ninety days, if it is satisfied that there was sufficient cause for not filing the appeal in time. (2) The Authority may, after calling for the records of any case, revise any order made by the Council under section 30 and may— (a) confirm, modify or set aside the order; (b) impose any penalty or set aside, reduce or enhance the penalty imposed by the order; (c) remit the case to the Disciplinary Committee for such further inquiry as the Authority considers proper in the circumstances of the case; or (d) pass such other order as the Authority thinks fit: Provided that the Authority shall give an opportunity of being heard to the parties concerned before passing any order. CHAPTER VI PENALTIES **37. Penalty for falsely claiming to be a member, etc.—Subject to the provisions of section 10, any** person who,— (a) not being a member of the Institute,— (i) represents that he is a member of the Institute in any of the manners mentioned in section 7; or 14 ----- (ii) uses the designation "Actuary"; or (iii) uses the letters "AIAI" or "FIAI" after his name; or (iv) practises the profession of an Actuary; or (b) being a member of the Institute, but not having a certificate of practice, represents that he is in practice, or practises as an Actuary, shall be punishable on first conviction with fine which may extend to one lakh rupees, and on any subsequent conviction with imprisonment which may extend to one year, or with fine which may extend to two lakh rupees, or with both. **38. Penalty for using name of Institution, awarding degrees of actuarial science, etc.—(1) Save** as otherwise provided in this Act, no person shall— (a) use a name or a common seal which is identical with the name or the common seal of the Institute or so nearly resembles it so as to deceive or as is likely to deceive the public; or (b) award any degree, diploma or certificate or bestow any designation which indicates or purports to indicate the position or attainment of any qualification or competence in actuaryship similar to that of a member of the Institute; or (c) seek to regulate in any manner whatsoever the profession of Actuaries. (2) Any person contravening the provisions of sub-section (1) shall, without prejudice to any other proceedings, which may be taken against him, be punishable with fine, which may extend on first conviction to fifty thousand rupees and on any subsequent conviction with imprisonment which may extend to one year, or, with fine which may extend to one lakh rupees, or with both. (3) Nothing contained in this section shall apply to any University or other institution established by law or to any body affiliated to the Institute. **39. Companies not to engage in actuarial practice.—(1) No company, whether incorporated in** India or elsewhere, shall practice as Actuaries. (2) Any company contravening the provisions of sub-section (1) shall be punishable on first conviction with fine which may extend to ten thousand rupees, and on any subsequent conviction with fine which may extend to twenty-five thousand rupees. **40. Unqualified person not to sign documents.—(1) No person other than a fellow member of the** Institute shall sign any document on behalf of an Actuary in practice or a firm of such Actuaries in his or its professional capacity. (2) Any person contravening the provisions of sub-section (1) shall, without prejudice to any other proceedings which may be taken against him, be punishable on first conviction with fine which may extend to fifty thousand rupees, and on any subsequent conviction with imprisonment which may extend to one year, or with fine which may extend to one lakh rupees, or with both. **41. Offences by companies.—(1) If the person committing an offence under this Act is a company,** the company as well as every person in charge of, and responsible to, the company for the conduct of its business at the time of the commission of the offence shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. 15 ----- (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or that the commission of the offence is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section—_ (a) "company" means any body corporate and includes a firm or other association of individuals; and (b) "director", in relation to a firm, means a partner in the firm. **42. Sanction to prosecute.—No person shall be prosecuted under this Act except on a complaint** made by or under the order of the Council or of the Central Government. CHAPTER VII QUALITY REVIEW BOARD **43. Establishment of Quality Review Board.—(1) The Central Government shall, by notification,** constitute a Quality Review Board consisting of a Chairperson and not more than four Members: Provided that in case the Board is constituted with two Members, one each shall be nominated by the Council and the Central Government, respectively. (2) The Chairperson and Members of the Board shall be appointed from amongst the persons of eminence having experience in the field of law, education, economics, business, finance, accountancy or public administration. (3) Two Members of the Board shall be nominated by the Council and other two Members shall be nominated by the Central Government. **44. Functions of Board.—The Board shall perform the following functions, namely:—** (a) to fix standards for the services provided by the members of the Institute; (b) to review the quality of services provided by the members of the Institute including actuarial audit services; and (c) to guide the members of the Institute to improve the quality of services and adherence to the various statutory and other regulatory requirements. **45. Procedure of Board.—The Board shall follow in its meeting and in discharging its functions** such procedure as may be prescribed. **46. Terms and conditions of Chairperson and Members of Board.—The terms and conditions of** service of the Chairperson and the Members of the Board, their place of meetings, remuneration and allowances shall be such as may be prescribed. **47. Expenditure of Board.—The expenditure of the Board shall be borne by the Council.** CHAPTER VIII DISSOLUTION OF THE ACTUARIAL SOCIETY OF INDIA REGISTERED UNDER THE SOCIETIES REGISTRATION ACT **48. Dissolution of Actuarial Society of India.—On the appointed day,—** (a) the Society known as the Actuarial Society of India registered under the Societies Registration Act, 1860 (21 of 1860) and the Bombay Public Trusts Act, 1950 (Bombay Act XXXIX of 1950) shall stand dissolved and thereafter no person shall make, assert or take any claims or demands or proceedings against the dissolved society or against any officer thereof in his capacity as such officer except in so far as may be necessary, for enforcing the provisions of this Act; 16 ----- (b) the right of every member to, or in respect of, the dissolved society shall be extinguished, and thereafter no member of the society shall make, assert or take any claims or demands or proceedings in respect of that society except as provided in this Act. **49. Provisions respecting employees of dissolved society.—(1) Every person employed in the** dissolved society and continuing in its employment immediately before the commencement of this Act shall, as from such commencement, become an employee of the Institute, shall hold his office or service therein by the same tenure and upon the same terms and conditions and with the same rights and privileges as to retirement benefits as he would have held the same under the dissolved society if this Act had not been passed, and shall, continue to do so unless and until his employment in the Institute is terminated or until his remuneration, terms and conditions of employment are duly altered by the Institute. (2) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1947) or in any other law for the time being in force, the transfer of the services of any employee of the dissolved society to the Institute shall not entitle any such employee to any compensation under that Act or other law, and no such claims shall be entertained by any court, tribunal or other authority. CHAPTER IX MISCELLANEOUS **50. Maintenance of more than one offices by Actuary.—(1) Where an Actuary in practice or a firm** of such Actuaries has more than one offices within or outside India, each one of such offices shall be in the separate charge of a fellow member of the Institute: Provided that the Council may in suitable cases exempt any Actuary in practice or firm of such Actuaries from the operation of this sub-section. (2) Every Actuary in practice or a firm of such Actuaries maintaining more than one office shall send to the Council a list of offices and the person in charge thereof and shall keep the Council informed of any changes in relation thereto. **51. Reciprocity.—(1) Where any country, notified by the Central Government in this behalf in the** Official Gazette, prevents persons of Indian domicile from becoming members of any institution similar to the Institute or from practicing the profession of Actuaries or subjects them to unfair discrimination in that country, no subject of any such country shall be entitled to become a member of the Institute or practice the profession of Actuaries in India. (2) Subject to the provisions of sub-section (1), the Council may specify the conditions, if any, subject to which foreign qualifications relating to actuarial science shall be recognised for the purposes of entry in the register. **52. Power of Central Government to issue directions.—(1) For the purposes of this Act, the** Central Government may, from time to time, give to the Council such general or special directions as it thinks fit, and the Council shall, in the discharge of its functions under this Act, comply with such directions. (2) If, in the opinion of the Central Government, the Council has persistently made default in giving effect to the directions issued under sub-section (1), it may, after giving an opportunity of being heard to the Council, by notification, dissolve the Council, whereafter a new Council shall be constituted in accordance with the provisions of this Act with effect from such date as may be decided by the Central Government. (3) Where the Central Government has issued a notification under sub-section (2) dissolving the Council, it may, pending the constitution of a new Council in accordance with the provisions of this Act, authorise any person or body of persons to take over the management of the affairs of the Council and to exercise such functions as may be mentioned in the notification. **53. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall** lie against the Central Government or the Council or the Disciplinary Committee or the Tribunal or the Authority or the Board or the Prosecution Director or any officer of that Government, Council, 17 ----- Committee, Tribunal, Authority or Board, for anything which is in good faith done or intended to be done under this Act or any rule, regulation, notification, direction or order made thereunder. **54. Members, etc., to be public servants.—The Chairperson, Presiding Officer, Members and other** officers and employees of the Authority, Tribunal and Board, and the Prosecution Director shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **55. Power of Central Government to make rules.—(1) The Central Government may, by** notification, make rules to carry out the provisions of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the manner of election and nomination in respect of members to the Council under sub-section (2) of section 12; (b) the terms and conditions of service of the Presiding Officers and Members of the Tribunal, place of meeting, remuneration and allowances to be paid to them under sub-section (3) of section 16; (c) the procedure of inquiry and submission of report by the Disciplinary Committee under sub section (2) of section 26; (d) the procedure of inquiry by the Prosecution Director under sub-section (2) of section 27; (e) any act or omission which may be determined as professional misconduct under section 31; (f) the procedure to be followed by the Board in its meetings and discharging its functions under section 45; and (g) terms and conditions of service of the Chairman and Members of the Board under section 46. **56. Power to make regulations.—(1) The Council may, with the previous approval of the Central** Government and subject to the previous publication, by notification in the Official Gazette, make regulations to carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:— (a) the examination and training for the purposes of clauses (b), (c) and (d) of sub-section (1) of section 6; (b) the manner of making an application under sub-section (3) of section 6; (c) the fees payable under sub-section (3) of section 6, sub-section (2) of section 9, clause (a) of sub-section (2) of section 19, sub-section (4) of section 23; (d) the manner in which the honorary member may be chosen under sub-section (1) of section 8; (e) the terms and conditions on which an affiliate member may be admitted under sub-section (2) of section 8; (f) the academic qualifications for admission of a student member under sub-section (3) of section 8; (g) qualifications required for a certificate of practice under sub-section (1) and the form in which an application may be made under sub-section (2) of section 9; (h) the transaction of business by the Council for the discharge of its functions mentioned in sub section (2) of section 19; (i) terms and conditions of the services under sub-section (1) of section 20; (j) the functions and conditions of the committees under sub-section (3) of section 21; (k) the manner in which the register of the members of the Institute and other particulars to be maintained under sub-sections (1) and (2) of section 23; 18 ----- (l) the manner in which the annual list of members of the Institute may be published under sub section (3) of section 23; (m) the conditions and requirements and payment of fee for re-entry in the register under section 25; (n) salaries and allowances and conditions of service of the officers and other staff members of the Authority under sub-section (2) of section 35; (o) the conditions subject to which foreign qualifications may be recognised under sub-section (2) of section 51; and (p) any other matter which is required to be, or may be, prescribed under this Act. **57. Power of Central Government to issue directions for making or amending regulations.—(1)** Where the Central Government considers it expedient so to do, it may, by order in writing, direct the Council to make any regulations or to amend or revoke any regulations already made within such period as it may specify in this behalf. (2) If the Council fails or neglects to comply with such order within the specified period, the Central Government may itself make the regulations or amend or revoke the regulations made by the Council. **58. Laying of rules and regulations.—Every rule and every regulation made under this Act shall be** laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall, thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. **59. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order, published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act, as may appear to be necessary for removing the difficulty: Provided that no such order shall be made under this section after the expiry of a period of two years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. 19 ----- THE SCHEDULE (See section 31) PART I _Professional misconduct in relation to members of the Institute in practice_ An Actuary in practice shall be deemed to be guilty of professional misconduct, if he— (1) allows any person to practice in his name as an actuary unless such person is also an actuary in practice and is in partnership with or employed by himself; or (2) pays by way of remuneration to an employee, pays or allows or agrees to pay or allow, directly or indirectly, any share, commission or brokerage in the fees or profits of his professional business, to any person other than a member of the Institute or a partner or a retired partner or the legal representative of a deceased partner; or (3) enters into partnership with any person other than an Actuary in practice or a person resident outside India who but for his residence abroad would be entitled to be admitted as a member under clause (c) of sub-section (1) of section 6 or whose qualifications are recognised by the Central Government or the Council for the purpose of permitting such partnership, provided the Actuary shares in the fees or profits of the business of the partnership both within and outside of India; or (4) secures either through the services of a person who is not an employee of such Actuary or who is not qualified to be his partner or by means which are not open to an Actuary, any professional business; or (5) accepts an assignment as Actuary previously held by another Actuary without first communicating with him in writing; or (6) charges or offers to charge, accepts or offers to accept in respect of any professional employment fees which are based on a percentage of profit or which are contingent upon the findings or results of such employment, except as permitted under any regulation made under this Act; or (7) engages in any business or occupation other than the profession of Actuaries unless permitted by the Council so to engage: Provided that nothing contained herein shall disentitle an Actuary from being a director of a company; or (8) accepts a position as an actuary previously held by some other Actuary in practice in such conditions as to constitute undercutting; or (9) allows a person not being a member of the Institute in practice, or a member not being his partner to sign on his behalf or on behalf of his firm, any valuation report or financial statement; or (10) discloses information acquired in the course of his professional engagement to any person other than his client so engaging him, without the consent of such client, or otherwise than as required by any law for the time being in force; or (11) certifies or submits in his name, or in the name of his firm, a valuation report or a financial statement unless the examination of such statement and the related records has been made by him or by a partner or an employee in his firm or by another Actuary in practice; or (12) expresses his opinion or valuation reports or financial statements of any business or any enterprise in which he, his firm, or a partner in his firm has a substantial interest, unless he has disclosed the interest also in his report; or (13) fails to disclose a material fact known to him in a valuation report or a financial statement, but disclosures of which is necessary to make the valuation report or the financial statement not misleading where he is concerned with such valuation report or the financial statement in a professional capacity; or 20 ----- (14) fails to report a material misstatement known to him to appear in a valuation report or financial statement with which he is concerned in a professional capacity; or (15) is grossly negligent in the conduct of his professional duties; or (16) fails to obtain sufficient information to warrant the formation of an opinion in regard to any matter contained in any valuation report or financial statement prepared by him or on his behalf; or (17) fails to invite attention to any material departure from the generally accepted procedure or professional work applicable to the circumstances, in any valuation report or financial statement prepared by him or on his behalf. PART II _Professional misconduct in relation to the members of the Institute in service_ A member of the Institute (other than a member in practice) shall be deemed to be guilty of professional misconduct, if he being an employee of any company, firm or person,— (1) pays or allows or agrees to pay directly or indirectly to any person any share in the emoluments of the employment undertaken by him; or (2) accepts or agrees to accept any part of fees, profits or gains by way of commission or gratification; or (3) discloses confidential information acquired in the course of his employment except as and when required by law or except as permitted by his employer. PART III _Professional misconduct in relation to members of the Institute generally_ A member of the Institute, whether in practice or not, shall be deemed to be guilty of professional misconduct, if he— (1) includes in any statement, return or form to be submitted to the Council any particulars knowing them to be false; or (2) not being a fellow member of the Institute acts himself as a fellow member of the Institute; or (3) does not supply the information called for or does not comply with the requirements asked for by the Council or any of its Committees; or (4) contravenes any of the provisions of this Act or the regulations made thereunder or any guidelines issued by the Council under clause (i) of sub-section (2) of section 19; or (5) is guilty of such other act or omission as may be specified by the Council. PART IV Other misconduct in relation to member of the Institute generally A member of the Institute, whether in practice or not, shall be deemed to be guilty of other misconduct, if— (A) (1) he is held guilty by any civil or criminal court for an offence which is punishable with imprisonment for a term not exceeding six months; (2) in the opinion of the Council, he brings disrepute to the profession or the Institute as result of his action whether or not related to his professional work; (B) he is held guilty by any civil or criminal court for an offence which is punishable with imprisonment for a term exceeding six months. 21 -----

30-Aug-2006

38

The Government Securities Act, 2006

https://www.indiacode.nic.in/bitstream/123456789/2059/4/a2006-38.pdf

central

# THE GOVERNMENT SECURITIES ACT, 2006 ____________ # ARRANGEMENT OF SECTIONS ____________ SECTIONS 1. Short title, application and commencement. 2. Definitions. 3. Forms of Government securities. 4. Subsidiary general ledger account. 5. Transfer of Government securities. 6. Holding of Government securities by holders of public offices. 7. Recognition of title to Government security of deceased sole holder or joint holders. 8. Right of survivors of joint holders or several payees. 9. Nomination by holders of Government securities. 10. Government securities belonging to minor or insane person. 11. Issue of duplicate securities and of new securities on conversion, consolidation, sub-division, renewal, stripping or reconstruction. 12. Summary determination by Bank of title to Government security in case of dispute. 13. Law applicable in regard to Government securities. 14. Postponement of payments and registration of transfers pending the making of vesting order. 15. Power of Bank to require bonds. 16. Publication of notices in Official Gazette. 17. Procedure and scope of vesting order. 18. Legal effect of orders made by Bank. 19. Stay of proceedings on order of Court. 20. Cancellation by Bank of vesting proceedings. 21. Discharge in respect of interest on Government securities. 22. Discharge in respect of bearer bonds. 23. Period of limitation of Governments’ liability in respect of interest. 24. Inspection of documents. 25. Micro films, facsimile copies of documents, magnetic tapes and computer print outs as documents of evidence. 26. Bank and its officers to be public officers. 27. Misuse of subsidiary general ledger account facility. 28. Pledge, hypothecation or lien. 29. Power to call for information, cause inspection and issue directions. 30. Contravention and penalties. 31. Certain laws not to apply to Government securities. 31A. Powers of Bank not to apply to International Financial Services Centre. 32. Power to make regulations. 33. [Omitted]. 34. Power to remove difficulties. 35. Repeal and saving. 1 ----- # THE GOVERNMENT SECURITIES ACT, 2006 ACT NO. 38 OF 2006 [30th August, 2006.] # An Act to consolidate and amend the law relating to Government securities and its management by the Reserve Bank of India and for matters connected therewith or incidental thereto. WHEREAS it is expedient to consolidate and amend the law relating to Government securities and its management by the Reserve Bank of India; AND WHEREAS Parliament has no power to make laws for the States with respect to any of the matters aforesaid except as provided in articles 249 and 250 of the Constitution; AND WHEREAS in pursuance of clause (1) of article 252 of the Constitution, resolutions have been passed by the Houses of the Legislatures of all the States, except the Legislature of the State of Jammu and Kashmir, to the effect that the matters aforesaid should be regulated in those States by Parliament by law; BE it enacted by Parliament in the Fifty-seventh Year of the Republic of India as follows:— **1. Short title, application and commencement.—(1) This Act may be called the Government** Securities Act, 2006. (2) This Act applies to Government securities created and issued whether before or after the commencement of this Act by the Central Government or a State Government. (3) It applies in the first instance to whole of the States, except the State of Jammu and Kashmir, and to all the Union territories and it shall also apply to the State of Jammu and Kashmir which adopts this Act by resolution passed in that behalf under clause (1) of article 252 of the Constitution. (4) It shall come into force in all the States, except the State of Jammu and Kashmir, and in the Union territories on such date[1] as the Central Government may, by notification in the Official Gazette, appoint and in the State of Jammu and Kashmir which adopts this Act under clause (1) of article 252 of the Constitution, on the date of such adoption; and any reference in this Act to the commencement of this Act shall, in relation to any State or Union territory, means the date on which this Act, comes into force in such State or Union territory. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “agent” means a scheduled bank within the meaning of clause (e) of section 2 of the Reserve Bank of India Act, 1934 (2 of 1934), or any other person specified as such; (b) “Bank” means the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934); (c) “bond ledger account” means an account with the Bank or an agent in which the Government securities are held in a dematerialised form at the credit of the holder; (d) “constituents’ subsidiary general ledger account” means a subsidiary general ledger account opened and maintained with the Bank by an agent on behalf of the constituents of such agent; (e) “Government”, in relation to any Government security, means the Central or State Government issuing the security; (f) “Government security” means a security created and issued by the Government for the purpose of raising a public loan or for any other purpose as may be notified by the Government in the Official Gazette and having one of the forms mentioned in section 3; 1. 1st December, 2007, vide notification no. S.O. 2020(E), dated 30th November, 2007 see Gazette of India, Extraordinary, Part II, sec. 3(ii). 2 ----- (g) “prescribed” means prescribed by regulations made under this Act; (h) “promissory note” includes a treasury bill; (i) “specified” means specified by the Bank in the Official Gazette. **3. Forms of Government securities.—A Government security may, subject to such terms and** conditions as may be specified, be in such forms as may be prescribed or in one of the following forms, namely:— (i) a Government promissory note payable to or to the order of a certain persons; or (ii) a bearer bond payable to bearer; or (iii) a stock; or (iv) a bond held in a bond ledger account. _Explanation.—For the purpose of this section, “stock” means a Government security,—_ (i) registered in the books of the Bank for which a stock certificate is issued; or (ii) held at the credit of the holder in the subsidiary general ledger account including the constituents subsidiary general ledger account maintained in the books of the Bank, and transferable by registration in the books of the Bank. **4. Subsidiary general ledger account.—(1) A subsidiary general ledger account including a** constituents’ subsidiary general ledger account and a bond ledger account may be opened and maintained by the Bank subject to such conditions and restrictions as may be specified and in such form and on payment of such fee as may be prescribed. (2) Notwithstanding anything contained in the _Benami Transactions (Prohibition) Act, 1988 (45 of_ 1988), or any other law for the time being in force, the Government securities may be held on behalf of a constituent in a constituents’ subsidiary general ledger account under sub-section (1) and the holder of such account shall be deemed to be the holder of the securities held in that account: Provided that the constituent as a beneficial owner of the Government security shall be entitled to claim from the holder all the benefits and be subjected to all the liabilities in respect of the Government securities held in the constituents’ subsidiary general ledger account. (3) The holder of a constituents’ subsidiary general ledger account shall maintain such records and adopt such procedure for safeguarding the interests of the constituents as may be specified. **5. Transfer of Government securities.—(1) No transfer of a Government security shall be valid if it** does not purport to convey the full title to the security. (2) The transfer of the Government securities shall be made in such form and in such manner as may be prescribed. (3) Any document relating to a Government security or any endorsement on a promissory note issued by the Government may, on the demand of a person who for any reason is unable to write, shall be executed on his behalf in such manner as may be prescribed. (4) Nothing in this section shall affect any order made by the Bank under this Act, or any order made by a Court upon the Bank. **6. Holding of Government securities by holders of public offices.—(1) In the case of any public** office to which the Government may, by notification in the Official Gazette, declare this sub-section to apply, a Government security may be held in the name of the office. (2) When a Government security is so held, it shall be deemed to be transferred without any or further endorsement or transfer deed from each holder of the office to the succeeding holder of the office on and from the date on which the latter takes charge of the office. 3 ----- (3) When the holder of the office transfers to a party not being his successor in office where a Government security so held, the transfer shall be made by the signature of the holder of the office and the name of the office in the manner laid down in section 5. (4) Where the holder of the office is temporarily absent for more than a fortnight from his office for any reason, he may authorise in writing such other person, who would be incharge of this office during the period of such absence, to effect transfer of the Government securities. (5) This section applies as well to an office of which there are two or more joint holders as to an office of which there is a single holder. **7. Recognition of title to Government security of deceased sole holder or joint holders.—** (1) Subject to the provisions of sub-sections (2) and (3), if on the death of a sole holder or death of all the joint holders of a Government security there is no nomination in force, the executors or administrators of the deceased sole holder or all the deceased joint holders, as the case may be, or the holder of a succession certificate issued under Part X of the Indian Succession Act, 1925 (39 of 1925) shall be the only person who may be recognised by the Bank as having any title to the Government security. (2) Nothing contained in this section shall bar the recognition by the Bank of any person as having a title to a Government security on the basis of a decree, order or direction passed by a competent court declaring the person as having title to the Government security or appointing a receiver to take possession of a security or on the basis of a certificate issued or order passed by any other authority who might have been empowered under any statute to confer on any such person a title to the Government security or on the basis of such other documents as may be prescribed. (3) Notwithstanding anything contained in this section or in any other law for the time being in force, where the outstanding value of Government security held by a deceased sole holder or deceased joint holders, as the case may be, does not exceed an amount of rupees one lakh or such higher amount not exceeding rupees one crore as may be fixed by the Central Government by notification in the Official Gazette from time to time, the Bank may recognise a person as having title to such Government security of the deceased sole holder or deceased joint holders in such manner and subject to such conditions as may be prescribed. **8. Right of survivors of joint holders or several payees.—Notwithstanding anything contained in** section 45 of the Indian Contract Act, 1872 (9 of 1872) and subject to the provisions of sections 7 and 10,— (a) when a Government security is held by two or more persons jointly, and either or any of them dies, the title to the Government security shall vest in the survivor or survivors of those persons; and (b) when a Government security is payable to two or more persons severally and either or any of them dies, the Government security shall be payable to the survivor or survivors of those persons or to the representative of the deceased or to any one of them: Provided that nothing contained in this section shall affect any claim which any representative of a deceased joint holder or deceased holders of a Government security or a surviving joint holder or holders of a Government security, as the case may be, may have against the survivor or survivors or representatives under or in respect of any Government security to which this section applies. _Explanation.—For the purposes of this section, a body incorporated or deemed to be incorporated_ under the Companies Act, 1956 (1 of 1956), or the Co-operative Societies Act, 1912 (2 of 1912), or any other enactment for the time being in force relating to the incorporation of associations of individuals, shall be deemed to die when it is dissolved. **9. Nomination by holders of Government securities.—(1) Notwithstanding anything contained in** sections 7 and 8 or any other law for the time being in force, except the provisions of sub-section (2),— (a) where a Government security other than in the form of promissory note or bearer bond is held by a person in his name or jointly with any other name or names, as the case may be, the sole holder 4 ----- or all the joint holders of the Government security together may nominate one or more persons in such form and in such manner as may be prescribed, who in the event of the death of the sole holder or the death of all the joint holders, as the case may be, would become entitled to the Government security and to payment thereon to the exclusion of all other persons, unless the nomination is varied or cancelled in the prescribed manner; (b) where a nomination in respect of a Government security has been made in favour of two or more nominees and either or any of them is dead, the surviving nominee or nominees, as the case may be, shall be entitled to the Government security and payment thereon; (c) where the nominee is a minor, it shall be lawful for the sole holder or all the joint holders of a Government security, as the case may be, to appoint in the prescribed manner any person in whom the Government security would be deemed to have vested in the event of death of such holder or joint holders of the Government security during the minority of the nominee; (d) the recognition of right and claim of the nominee or nominees to the Government security held by a sole holder or joint holders, as the case may be, and any payment made by the Government or the Bank to the nominee or nominees shall constitute a full discharge and shall absolve the Government or the Bank of its liability in respect of the said Government security. (2) Any nomination or appointment made under sub-section (1) shall become void if the nominee predeceases, or where there are two or more nominees, if all the nominees predecease the holder or joint holders of the Government security making the nomination. (3) Where the amount due for the time being on a Government security is payable to two or more nominees and either or any of them dies, the title to the Government security shall vest in the survivor or survivors of those nominees and the amount for the time being due thereon shall be paid accordingly. (4) A transfer of a Government security made in accordance with sub-section (2) of section 5 shall automatically cancel the nomination previously made: Provided that where a Government security is in the possession of a person either as a pledge or by way of security for any purpose, such possession shall not have the effect of cancelling the nomination, but the right of the nominee shall be subject to the right of the person so possessing it. (5) The Government may, on the recommendation of the Bank, by notification in the Official Gazette, extend the facility of nomination to any Government security as may be specified therein. (6) Nothing contained in sub-section (1) shall affect the right or claim which any person may have against the person whose right and title to a Government security is recognised by the Government or the Bank or to whom the payment of the amount due on the Government security is made by the Government or the Bank under sub-section (1). (7) No notice of any claim of any person, other than the person or persons in whose name a Government security is held or the nominees thereof, shall be receivable by the Bank or the Government, nor shall the Bank or the Government be bound by any such notice even though expressly given to it: Provided that where any decree, order, certificate or other authority from a court of competent jurisdiction relating to such Government security is produced before the Bank or the Government, the Bank or the Government shall take due note of such decree, order, certificate or other authority. **10. Government securities belonging to minor or insane person.—(1) Where any Government** security is held on behalf of a minor, the payment of the same for the time being due on a Government security either by way of outstanding principal or interest thereon may be made to the father or mother of such minor and where neither parent is alive or where the living parents are or only living parent is incapable of action, to a person entitled under the law for the time being in force to have care of the property of the minor. (2) When a Government security belongs to a minor or a person who is insane and incapable of managing his affairs and the outstanding principal value of the Government security does not in the 5 ----- aggregate exceed rupees one lakh or such higher amount not exceeding rupees one crore as the Central Government may, by a notification in the Official Gazette from time to time, fix, the Bank may make such order as it thinks fit for the vesting of such Government security in such person as it considers represents the minor or insane person. **11. Issue of duplicate securities and of new securities on conversion, consolidation, sub-division,** **renewal, stripping or reconstitution.—(1) If the person entitled to a Government security applies to the** Bank alleging that the Government security has been lost, stolen or destroyed, or has been defaced or mutilated, the Bank may, on proof to its satisfaction of the loss, theft, destruction, defacement or mutilation of the Government security, and subject to such conditions and on payment of such fees as may be prescribed, order the issue of a duplicate Government security to the applicant. (2) If the person entitled to a Government security applies to the Bank to have the Government security converted into a Government security of another form, or into a Government security issued in connection with another loan or to have it consolidated with other like Government securities, or to have it sub-divided, or to have it renewed, stripped or reconstituted, the Bank may, subject to such conditions and on payment of such fees as may be prescribed, cancel the Government security and order the issue of a new Government security or Government securities. _Explanation.—A Government security may be stripped separately for interest and principal or_ reconstituted on the application of the holder subject to such terms and conditions as may be specified. (3) The person to whom a duplicate Government security or a new Government security is issued under this section shall be deemed for the purposes of section 18 to have been recognised by the Bank as the holder of the Government security; and a duplicate Government security or new Government security so issued to any person shall be deemed to constitute a new contract between the Government and such person and all persons deriving title thereafter through him: Provided that the issue of new security under this section shall not affect the interest of third parties in whose favour a charge or other interest was lawfully created and was subsisting at the time of issue of the new security. **12. Summary determination by Bank of title to Government security in case of dispute.—(1) If** the Bank is of opinion that a doubt exists as to the title to a Government security, it may proceed to determine, in accordance with such regulations as may be made, the person who shall for the purposes of the Bank be deemed to be the person entitled thereto. (2) For the purpose of making any order which it is empowered to make under this Act, the Bank may request a District Magistrate to record or to have recorded the whole or any part of such evidence as any person whose evidence the Bank requires may produce and the District Magistrate so requested may either himself record, or may direct any Executive Magistrate empowered in this behalf by general or special order of the State Government to record the evidence, and shall forward a copy thereof to the Bank. (3) For the purpose of making a vesting order under this Act, the Bank may direct one of its officers to record the evidence of any person whose evidence the Bank requires or may receive evidence upon affidavit. (4) A Magistrate or an officer of the Bank acting in pursuance of this section may administer an oath to any witness examined by him. **13. Law applicable in regard to Government securities.—Notwithstanding that as a matter of** convenience, the Government may have arranged for payments on a Government security to be made elsewhere than in India, the rights of all persons in relation to Government securities shall be determined in connection with all such questions as are dealt with by this Act by the law and in the Courts of India. **14. Postponement of payments and registration of transfers pending the making of vesting** **order.—Where the Bank contemplates making an order under this Act to vest a Government security in** any person, the Bank may suspend payment of interest on or the maturity value of the Government 6 ----- security or postpone the making of any order under section 7, section 10, section 11 or section 12 or the registration of any transfer of the Government security, as the case may be, until the vesting order has been made. **15. Power of Bank to require bonds.—(1) Before making any order which it is empowered to make** under this Act, the Bank may require the person in whose favour the order is to be made to execute an indemnity bond with one or more sureties in such form as may be prescribed or to furnish security not exceeding twice the value of the subject-matter of the order, to be held at the disposal of the Bank, to pay to the Bank or any person to whom the Bank may assign the indemnity bond or security in furtherance of sub-section (2) the amount thereof. (2) A Court before which a claim in respect of the subject-matter of any such order is established may order the indemnity bond or security to be assigned to the successful claimant who shall thereupon be entitled to enforce the indemnity bond or realise the security to the extent of such claim. **16. Publication of notices in Official Gazette.—Any notice required to be given by the Bank under** this Act may be served by post, but every such notice shall also be published by the Bank in the Official Gazette or the Official Gazette of a State, according as the notice relates to a Government security, issued by the Central Government or a State Government, and on such publication shall be deemed to have been delivered to all persons for whom it is intended. **17. Procedure and scope of vesting order.—(1) The Bank shall, while making a vesting order under** section 7, section 10, section 11 or section 12, follow such procedure as may be prescribed. (2) An order made by the Bank under this Act may either confer full title to a Government security or a title only to the accrued and accruing interest on the Government security pending a further order vesting full title. **18. Legal effect of orders made by Bank.—No recognition by the Bank of a person as the holder of** a Government security, and no order made by the Bank under this Act shall be called in question by any Court so far as such recognition or order affects the relations of the Government or the Bank with the person recognised by the Bank as the holder of a Government security or with any person claiming an interest in such security; and any such recognition by the Bank of any person or any order by the Bank vesting a Government security in any person shall operate to confer on that person a title to the security subject only to his personal liability to the rightful owner of the security for money had and received on his account. **19. Stay of proceedings on order of Court.—Where the Bank contemplates making with reference** to any Government security any order which it is empowered to make under this Act, and before the order is made the Bank receives from a Court in India an order to stay the making of such order, the Bank shall either— (a) hold the security together with any interest unpaid or accruing thereon until further orders of the Court are received; or (b) apply to the Court to have the security transferred to the Official Trustees appointed for the State in which such Court is situated, pending the disposal of the proceedings before the Court. **20. Cancellation by Bank of vesting proceedings.—Where the Bank contemplates making an order** under this Act vesting a Government security in any person, the Bank may, at any time before the order is made, cancel any proceedings already taken for that purpose and may, on such cancellation, proceed anew to the making of such order. **21. Discharge in respect of interest on Government securities.—Save as otherwise expressly** provided in the terms of a Government security, no person shall be entitled to claim interest on such security in respect of any period which has elapsed after the earliest date on which demand could have been made for the payment of the amount due on such security. 7 ----- **22. Discharge in respect of bearer bonds.—The Government shall be discharged from all liability** on a bearer bond or on any interest coupon of such a bond on payment to the holder of such bond or coupon on presentation on or after the date when it becomes due of the amount expressed therein, unless before such payment, an order of a Court in India has been served on the Government restraining it from making payment. **23. Period of limitation of Government’s liability in respect of interest.—(1) Where no shorter** period of limitation is fixed by any law for the time being in force, the liability of the Government in respect of any interest payment due on a Government security shall terminate on the expiry of six years from the date on which the amount due by way of interest became payable: Provided that the Government may allow a bona fide claim for payment of interest after the expiry of the period of six years in those cases where the holders of securities could not prefer their claims within the said period of six years. (2) Notwithstanding anything contained in sub-section (1), the Bank may specify the securities in respect of which, the circumstances under which, and the terms and conditions subject to which, interest may be paid even after the expiry of the period specified in the said sub-section. **24. Inspection of documents.—No person shall be entitled to inspect or to receive information** derived from any Government security in the possession or custody of the Government or from any book, register or other document kept or maintained by or on behalf of the Government in relation to Government securities or any Government security, save in such circumstances and manner and subject to such conditions as may be prescribed. **25. Micro films, facsimile copies of documents, magnetic tapes and computer print outs as** **documents of evidence.—(1) Notwithstanding anything contained in any other law for the time being in** force,— (a) a micro film of a document or the reproduction of the image or images embodied in such micro film (whether enlarged or not); or (b) a facsimile copy of a document; or (c) a statement contained in a document and included in a printed material produced by a computer, magnetic tape or any other form of mechanical or electronic data retrieval mechanism (hereinafter referred to as computer print out), if the conditions mentioned in sub-section (2) and the other provisions contained in this section are satisfied in relation to the statement and the computer in question, shall be deemed to be also a document for the purposes of this Act and the regulations made thereunder and shall be admissible in any proceedings thereunder, without further proof or production of the original, as evidence of any contents of the original or of any fact stated therein of which direct evidence would be admissible. (2) The conditions referred to in sub-section (1) in respect of a computer print out shall be the following, namely:— (a) the computer print out containing the statement was produced by the computer during the period over which the computer was used regularly to store or process information for the purposes of any activities regularly carried on over that period by the person having lawful control over the use of the computer; (b) during the said period, there was regularly supplied to the computer in the ordinary course of the said activities, information of the kind contained in the statement or of the kind from which the information so contained is derived; (c) throughout the material part of the said period, the computer was operating properly or, if not, then any respect in which it was not operating properly or was out of operation during that part of that period was not such as to affect the production of the document or the accuracy of the contents; and 8 ----- (d) the information contained in the statement reproduced or is derived from information supplied to the computer in the ordinary course of the said activities. (3) Where over any period, the function of storing or processing information for the purposes of any activities regularly carried on over that period as mentioned in clause (a) of sub-section (2) was regularly performed by computers, whether— (a) by a combination of computers operating over that period; or (b) by different computers operating in succession over that period; or (c) by different combinations of computers operating in succession over that period; or (d) in any other manner involving the successive operation over that period, in whatever order, of one or more computers and one or more combinations of computers, all the computers used for that purpose during that period shall be treated for the purposes of this section as constituting a single computer; and references in this section to a computer shall be construed accordingly. (4) In any proceeding under this Act and the regulations made thereunder where it is desired to give a statement in evidence by virtue of this section, a certificate doing any of the following things, that is to say,— (a) identifying the document containing the statement and describing the manner in which it was produced; (b) giving such particulars of any device involved in the production of that document as may be appropriate for the purpose of showing that the document was produced by a computer; (c) dealing with any of the matters to which the conditions mentioned in sub-section (2) relate, and purporting to be signed by a person occupying a responsible official position in the Bank in relation to the operation of the relevant device or the management of the relevant activities (whichever is appropriate), shall be evidence of any matter stated in the certificate; and for the purposes of this sub-section it shall be sufficient for a matter to be stated to the best of the knowledge and belief of the person stating it. (5) For the purposes of this section,— (a) information shall be taken to be supplied to a computer if it is supplied thereto in any appropriate form and whether it is so supplied directly or (with or without human intervention) by means of any appropriate equipment; (b) whether in the course of activities carried on by any official, information is supplied with a view to its being stored or processed for the purposes of those activities by a computer operated otherwise than in the course of those activities, that information, if duly supplied to that computer, shall be taken to be supplied to it in the course of those activities; (c) a document shall be taken to have been produced by a computer whether it was produced by it directly or (with or without human intervention) by means of any appropriate equipment. _Explanation.—For the purposes of this section,—_ (a) “computer” means any electronic, magnetic, optical or other high-speed data processing service device or system which performs logical, arithmetical and memory functions by manipulation of electronic, magnetic or optical impulses and includes all input, output, processing, storage, computer software or communication facilities which are connected or related to the computer in a computer system or computer network; 9 ----- (b) “computer print out” shall include ledgers, day-books, account books and other records, maintained in the ordinary course of business of the Bank or of the agent, printed on paper from the information stored in the computer or derived from such information; and (c) any reference to information being derived from other information shall be a reference to its being derived therefrom by calculation, comparison or any other process. **26. Bank and its officers to be public officers.—For the purposes of section 124 of the Indian** Evidence Act, 1872 (1 of 1872), the provisions of Part IV of the Code of Civil Procedure, 1908 (5 of 1908) relating to suits by or against public officers in their official capacity, and the provisions of rule 27 of Order V, and rule 52 of Order XXI of the said Code, the Bank and any officer of the Bank acting in his capacity as such shall be deemed to be a public officer. **27. Misuse of subsidiary general ledger account facility.—Where a subsidiary general ledger** account is opened by the Bank in favour of any holder of a Government security in terms of section 4 and,— (a) it comes to the notice of the Bank that the said account is being operated contrary to the terms and conditions subject to which the account was opened; or (b) the subsidiary general ledger account transfer form has bounced due to insufficiency of Government security or funds; or (c) the Bank is of opinion that the account is being operated contrary to the banking practice or in a manner prejudicial to the interests of the holders of Government securities in general; or (d) the subsidiary general ledger account is being misused in any manner, the Bank may, by order in writing, after giving an opportunity of being heard, debar the holder of such account from trading with the subsidiary general ledger account facility temporarily or permanently as it deems fit. **28. Pledge, hypothecation or lien.—(1) Subject to such terms and conditions as may be prescribed,** the holder of a Government security may create a pledge or hypothecation or lien in respect of such security. (2) On receipt of notice of pledge or hypothecation or lien from the holder of the Government security, the Bank or any agent maintaining the account in respect of such security shall make necessary entry in its record and such entry shall be evidence of the pledge, hypothecation or lien thereof, as the case may be. **29. Power to call for information, cause inspection and issue directions.—(1) The Bank may at** any time, for the purposes of this Act, call for such information as it deems necessary in relation to a Government security from any agent, or holder of subsidiary general ledger account including constituents’ subsidiary general ledger account and cause an inspection or scrutiny to be made by one or more of its officers or other persons, of any agent or holder of a subsidiary general ledger account including constituents’ subsidiary general ledger account. (2) The Bank may, if it considers necessary so to do, issue such directions as it thinks fit, in relation to a Government security,— (i) to the holders of the subsidiary general ledger accounts including constituents’ subsidiary general ledger account; (ii) to the agents maintaining bond ledger account; and (iii) to any other person dealing with the Government securities, for carrying out the purposes of this Act. **30. Contravention and penalties.—(1) If any person, for the purpose of obtaining for himself or for** any other person any title to a Government security, makes to any authority in any application made under 10 ----- this Act or in the course of any inquiry undertaken in pursuance of this Act any statement which is false and which he either knows to be false or does not believe to be true, [1][the Bank may impose a penalty not exceeding five lakh rupees or twice the amount involved in such contravention, where the amount is quantifiable, whichever is higher, and where such contravention is a continuing one, with a further penalty, which may extend to five thousand rupees for every day after first day during which the contravention continues]. 2* - - - (3) Without prejudice to any other action which the Bank may deem fit to take, the Bank, after giving a reasonable opportunity of being heard, may impose on any person who contravenes any provision of this Act, or contravenes any regulation, notification or direction issued under this Act, or violates the terms and conditions for opening and maintenance of a subsidiary general ledger account, including constituents’ subsidiary general ledger account, a penalty, not exceeding five lakh rupees and where such contravention is a continuing one, further penalty which may extend to five thousand rupees for every day after first day during which the contravention continues. **31. Certain laws not to apply to Government securities.—(1) The Public Debt Act, 1944** (18 of 1944) shall cease to apply to the Government securities to which this Act applies and to all matters for which provisions have been made by this Act. (2) Notwithstanding such cessation anything done or any action taken in the exercise of any power conferred by or under that Act shall be deemed to have been done or taken in the exercise of the powers conferred by or under this Act as if this Act was in force at all material times. (3) Nothing contained in the Depositories Act, 1996 (22 of 1996) or the regulations made thereunder shall apply to Government securities covered by this Act unless an agreement is executed to the contrary by any depository under the Depositories Act, 1996 with the Government or the Bank, as the case may be. 3[31A. Powers of Bank not to apply to International Financial Services Centre.— Notwithstanding anything contained in any other law for the time being in force, the powers exercisable by the Bank under this Act,— (a) shall not extend to an International Financial Services Centre set up under sub-section (1) of section 18 of the Special Economic Zones Act, 2005 (28 of 2005); (b) shall be exercisable by the International Financial Services Centre Authority established under sub-section (1) of section 4 of the International Financial Services Centres Authority Act, 2019, in so far as regulation of financial products, financial services and financial institutions that are permitted in the International Financial Services Centres are concerned.] **32. Power to make regulations.—(1) The Bank may, with the previous approval of the Central** Government, by notification in the Official Gazette, make regulations to carry out the purposes of this Act. (2) In particular and without prejudice to the generality of the foregoing power such regulations may provide for all or any of the following matters, namely:— (a) the form in which and the terms and conditions subject to which the Government securities may be issued under section 3; (b) the form in which and the fee to be charged for opening and maintenance of subsidiary general ledger account including constituents’ subsidiary general ledger account and bond ledger account by the Bank under sub-section (1) of section 4; 1. Subs. by Act 18 of 2023, s. 2 and Schedule, for certain words (w.e.f. 1-12-2023). 2. Sub-section (2) omitted by s. 2 and Schedule, ibid. (w.e.f. 1-12-2023). 3. Ins. by Act 50 of 2019, s. 33 and the second Schedule (w.e.f. 1-10-2020). 11 ----- (c) the form and manner in which Government securities shall be transferred under sub-section (2) of section 5 and the manner in which any document relating to any Government security or any endorsement on a promissory note may be executed on behalf of a person who is unable to write under sub-section (3) of that section; (d) the documents to be produced for recognition of title to the Government security of a deceased sole holder or all deceased joint holders under sub-section (2) of section 7 and the manner in which and the conditions subject to which the Bank may recognise title to a Government security under sub-section (3) of that section; (e) the form and the manner in which a nomination may be made, varied or cancelled and the manner in which any person may be appointed in whom the Government security would be deemed to have vested in the event of death of holder or joint holders of Government security during the minority of a nominee under section 9; (f) the conditions governing the issue of duplicate Government securities and the fees to be paid therefor under section 11; (g) the manner in which the Bank may determine title to a Government security under section 12; (h) the form of bond under sub-section (1) of section 15; (i) the procedure for making vesting order referred to in sub-section (1) of section 17; (j) the circumstances and the manner in which and the conditions subject to which inspection of Government securities, books, registers and other documents may be allowed or information therefrom may be given under section 24; (k) the terms and conditions subject to which pledge or hypothecation or lien be created under sub-section (1) of section 28. (3) Every regulation made by the Bank under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the regulation or both Houses agree that the regulation should not be made, the regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that regulation. **33. [Construction of references to laws not in force in Jammu and Kashmir.]—Omitted by the Jammu** _and Kashmir Reorganization (Adaptation of Central Laws) Order, 2020, vide Notification No. S.O._ 1123(E), dated (18-3-2020) and Vide _Union Territory of Ladakh Reorganisation (Adaptation of Central_ _Laws) Order, 2020, notification No. S.O. 3774(E), dated (23-10-2020).]_ **34. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order, not inconsistent with the provisions of this Act, remove the difficulty: Provided that no such order shall be made after the expiry of a period of two years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **35. Repeal and saving.—(1) The Indian Securities Act, 1920 (10 of 1920) is hereby repealed.** (2) Notwithstanding such repeal anything done or any action taken in the exercise of any power conferred by or under the Act shall be deemed to have been done or taken in the exercise of the powers conferred by or under this Act as if this Act was in force on the day on which such thing was done or action was taken. 12 -----

13-Sep-2006

44

The Pondicherry (Alteration of Name) Act, 2006

https://www.indiacode.nic.in/bitstream/123456789/2075/1/A2006-44.pdf

central

# THE PONDICHERRY (ALTERATION OF NAME) ACT, 2006 ________ ARRANGEMENT OF SECTIONS _______ SECTIONS 1. Short title and commencement. 2. Definitions. 3. Alteration of name of the Union territory of Pondicherry. 4. Amendment of Part VIII of the Constitution. 5. Amendment of First Schedule to the Constitution. 6. Amendment of Fourth Schedule to the Constitution. 7. Amendment of section 2 of Act 20 of 1963. 8. Power to adapt laws. 9. Power to construe laws. 10. Legal proceedings. 1 ----- # THE PONDICHERRY (ALTERATION OF NAME) ACT, 2006 ACT NO. 44 OF 2006 [13th September, 2006.] # An Act to alter the name of the Union territory of Pondicherry. BE it enacted by Parliament in the Fifty-seventh Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the Pondicherry (Alteration of** Name) Act, 2006. (2) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “appointed day” means the date appointed under sub-section (2) of section 1 for the coming into force of this Act; (b) “appropriate Government” means the Central Government, and as respects a law relating to a matter enumerated in the State List or the Concurrent List in the Seventh Schedule to the Constitution in so far as any such matter is applicable in relation to the Union territory of Puducherry, also the administrator of the Union territory of Puducherry; (c) “law” includes any enactment, Ordinance, regulation, order, bye-law, rule, scheme, notification or other instrument having the force of law in the whole or any part of the Union territory of Pondicherry. **3. Alteration of name of the Union territory of Pondicherry.—As from the appointed day, the** Union territory of Pondicherry shall be known as the Union territory of Puducherry. **4. Amendment of Part VIII of the Constitution.—In Part VIII of the Constitution, for the word** “Pondicherry”, wherever it occurs, the word “Puducherry” shall be substituted. **5. Amendment of First Schedule to the Constitution.—In the First Schedule to the Constitution,** under the heading “II. THE UNION TERRITORIES”, in entry 6, under the column “Name”, for the word “Pondicherry”, the word “Puducherry” shall be substituted. **6. Amendment of Fourth Schedule to the Constitution.—In the Fourth Schedule to the** Constitution, under the heading “TABLE”, in entry 30, in the second column, for the word “Pondicherry” the word “Puducherry” shall be substituted. **7. Amendment of section 2 of Act 20 of 1963.—In the Government of Union Territories Act, 1963,** in section 2, in sub-section (1), in clause (h), for the word “Pondicherry”, the word “Puducherry” shall be substituted. **8. Power to adapt laws.—(1) For the purpose of giving effect to the alteration of the name of the** Union territory of Pondicherry by section 3, the appropriate Government may, before the expiration of one year from the appointed day, by order, make such adaptations and modifications of any law made before the appointed day, whether by way of repeal or amendment, as may be necessary or expedient, and thereupon every such law shall have effect subject to the adaptations and modifications so made. (2) Nothing in sub-section (1) shall be deemed to prevent Parliament or Legislative Assembly of the Union territory of Puducherry or other competent authority from repealing or amending any law adapted or modified by the appropriate Government under the said sub-section. **9. Power to construe laws.—Notwithstanding that no provision or insufficient provision has been** made under section 8 for the adaptation of a law made before the appointed day, any court, tribunal or authority, required or empowered to enforce such law, may construe the law in such manner, without 1. 1st October, 2006, vide notification No. S.O. 1627(E), dated, 28th September, 2006, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 2 ----- affecting the substance, as may be necessary or proper in regard to the matter before the court, tribunal or authority. **10. Legal proceedings.—Where immediately before the appointed day any legal proceedings are** pending to which the administrator of the Union territory of Pondicherry is a party, or the Union of India represented by the said administrator is a party, then, for the purposes of those proceedings, any reference to the administrator of the Union territory of Pondicherry shall be construed as a reference to the administrator of the Union territory of Puducherry. _____ 3 -----

13-Sep-2006

41

The Cantonments Act, 2006

https://www.indiacode.nic.in/bitstream/123456789/2066/4/A2006-41.pdf

central

# THE CANTONMENTS ACT, 2006 __________ # ARRANGEMENT OF SECTIONS __________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II DEFINITION AND DELIMITAITON OF CONTONMENT 3. Definition of cantonments. 4. Alteration of limits of cantonments. 5. The effect of including area in cantonment. 6. Disposal of cantonment fund and cantonment development fund when area ceases to be a cantonment. 7. Disposal of cantonment fund and cantonment development fund when area ceases to be included in a cantonment. 8. Application of funds and property transferred under sections 6 and 7. 9. Limitation of operation of Act. CHAPTER III CANTONMENT BOARDS _Boards_ 10. Cantonment Board. 11. Incorporation of Cantonment Board. 12. Constitution of Cantonment of Boards. 13. Power to vary constitution of Boards in special circumstances. 14. Term of office of members. 15. Filling of vacancies. 16. Vacancies in special cases. 17. Oath or affirmation. 18. Resignation. 19. President and Vice-President. 20. Term of office of Vice-President. 21. Duties of President. 22. Duties of Vice-President. 23. Allowances to Vice-President and members. 24. Appointment of Chief Executive Officer. 25. Duties of Chief Executive Officer. 26. Special power of Chief Executive Officer. 1 ----- SECTIONS _Elections_ 27. Electoral rolls. 28. Qualification of electors. 29. Qualification for being a member of the Board. 30. Interpretation. 31. Power to make rules regulating elections. _Members_ 32. Member not to vote on matter in which he is interested. 33. Liability of members. 34. Removal of members. 35. Consequences of removal. 36. Member of the Board to be deemed a public servant. _Employees_ 37. Disqualification of person as an employee of Board. 38. Cantonment employee to be deemed a public servant. _Procedure_ 39. Meetings. 40. Business to be transcted. 41. Quorum. 42. Presiding Officer. 43. Minutes. 44. Meetings to be public. 45. Method of deciding questions. 46. Civil area. 47. Committees for civil areas. 48. Power to make regulations. 49. Joint action with other local authority. 50. Report on administration. _Control_ 51. Power of Central Government to require production of documents. 52. Inspection. 53. Power to call for documents. 54. Power to require execution of work, etc. 55. Power to provide for enforcement of direction under section 54. 56. Power to override decision of Board. 57. Power of Central Government to review. 58. Power of General Officer Commanding-in-Chief, the Command, on reference under section 56 or otherwise. 59. Power of Central Government on a reference made under section 56. 60. Supersession of Board. 2 ----- SECTIONS 61. Validity of proceedings, etc. _Validity of proceedings_ CHAPTER IV DUTIES AND DISCRETIONARY FUNCTIONS OF BOARDS 62. Duties of Board. 63. Power to manage property. 64. Discretionary functions of Board. 65. Power of expenditure of educational, health and other purposes outside the cantonment. CHAPTER V TAXES AND FEES _Imposition of taxation_ 66. General power of taxation. 67. Charging of fees. 68. Norms of property tax. 69. Framing of preliminary proposals. 70. Objections and disposal thereof. 71. Imposition of tax. 72. Power of Central Government to issue directions to the Board. 73. Definition of “annual rateable value”. 74. Incidence of taxation. _Assessment list_ 75. Assessment list. 76. Revision of assessment list. 77. Authentication of assessment list. 78. Evidential value of assessment list. 79. Amendment of assessment list. 80. Preparation of new assessment list. 81. Notice of transfers. 82. Notice of erection of buildings. _Remission and refund_ 83. Demolition, etc., of buildings. 84. Remission of tax. 85. Power to require entry in assessment list of details of buildings. 86. Notice to be given of the circumstances in which remission or refund is claimed. 87. What buildings, etc., are to be deemed vacant. 88. Notice to be given of every occupation of vacant building or house. _Charge on immovable property_ 89. Tax on buildings and land to be a charge thereon. 3 ----- SECTIONS _Octroi, terminal tax and toll_ 90. Inspection of imported goods, octroi, terminal tax and toll, etc. 91. Power to seize, etc. 92. Lease of octroi, terminal tax or toll. _Appeals_ 93. Appeals against assessment. 94. Costs of appeal. 95. Recovery of costs from Board. 96. Conditions of right to appeal. 97. Finality of appellate orders. _Payment and recovery of taxes_ 98. Time and manner of payment of taxes. 99. Public notice for taxes due. 100. Notice of demand. 101. Recovery of tax. 102. Interest payable on taxes due. 103. Distress. 104. Disposal of distrained property. 105. Attachment and sale of immovable property. 106. Recovery from a person about to leave cantonment and refund of surplus sale proceeds, if any. 107. Power to institute suit for recovery. _Special provisions relating to taxation, etc._ 108. Board to be a Municipality for taxation purposes. 109. Payment to be made to a Board as service charges by Central Government or State Government. 110. Power to be make special provision for conservancy in certain cases. 111. Exemption in case of buildings. 112. General power of exemption. 113. Exemption of poor persons. 114. Composition. 115. Irrecoverable debts. 116. Obligation to disclose liability. 117. Immaterial error not to affect liability. 118. Distraint not to be invalid by reason of immaterial defect. CHAPTER VI CANTONMENT FUND AND PROPERTY _Cantonment fund and cantonment development fund_ 119. Cantonment fund and cantonment development fund. 120. Custody of cantonment fund and cantonment development fund. 121. Power of Board to borrow money. _Property_ 122. Property. 4 ----- SECTIONS 123. Application of cantonment fund, cantonment development fund and property. 124. Acquisition of immovable property. 125. Power to make rules regarding cantonment fund, cantonment development fund and property. CHAPTER VII CONTRACTS 126. Contracts by whom to be executed. 127. Sanction. 128. Execution of contract. 129. Contracts improperly executed not to be binding on a Board. CHAPTER VIII SANITATION AND THE PREVENTION AND TREATMENT OF DISEASE _Sanitary authorities_ 130. Responsibility for sanitation. 131. General duties of Health Officer. _Conservancy and sanitation_ 132. Public latrines, urinals and conservancy establishments. 133. Duty of occupier to collect and desposit rubbish, etc. 134. Power of Board to undertake private conservancy arrangement. 135. Deposits and disposal of rubbish, etc. 136. Cesspools, receptacles, for filth, etc. 137. Filling up of tank, etc. 138. Provision of latrines, etc. 139. Sanitation in factories, etc. 140. Private latrines. 141. Special provisions for collection of rubbish and solid waste management. 142. Removal of congested buildings. 143. Overcrowding of dwelling houses. 144. Power to require repair or alternation of building. 145. Power to require land or building to be cleansed. 146. Prohibition in respect of air pollutant. 147. Power to order disuse of house. 148. Removal of noxious vegetation. 149. Agriculture and irrigation. _Burial and burning grounds_ 150. Power to call for information regarding burial and burning grounds. 151. Permission for use of new burial or burning ground. 152. Power to require closing of burial or burning ground. 153. Exemption from operation of sections 150 to 152. 154. Removal of corpses. _Prevention of infectious, contagious or communicable diseases_ 155. Obligation concerning infectious, contagious o communicable diseases. 156. [Omitted.]. 5 ----- SECTIONS 157. Special measures in case of outbreak of infectious or epidemic diseases. 158. Power to require names of a dairyman’s customers. 159. Power to require names of a washerman’s customers. 160. Power to require names of patients or customers of a medical practitioner or paramedical workers. 161. Report after inspection of dairy or washerman or medical practitioner’s place of business. 162. Action on report submitted by Health Officer. 163. Examination of milk, washed clothes or needles, syringes, etc. 164. Contamination of public conveyance. 165. Disinfection of public conveyance. 166. Penalty for failure to report. 167. Driver of conveyance not bound to carry person suffering from infectious or contagious disease. 168. Disinfection of building or articles therein. 169. Destruction of infectious hut or shed. 170. Temporary shelter for inmates of disinfected or destroyed buildings or shed. 171. Disinfection of building before letting the same. 172. Disposal of infected article without disinfection. 173. Means of disinfection. 174. Marking or selling of food, etc., or washing clothes by infected person. 175. Power to restrict or prohibit sale of food or drink. 176. Control over wells, tanks, etc. 177. Disposal of infectious corpse. _Hospitals and dispensaries_ 178. Maintenance or aiding of hospitals or dispensaries. 179. Medical supplies, appliances, etc. 180. Free patients. 181. Paying patients. 182. Power to order person to attend hospital or dispensary. 183. Power to exclude from cantonment persons refusing to attend hospital or dispensary. _Control of traffic for hygienic purposes_ 184. Routes for pilgrims and others. _Special conditious regarding essential services_ 185. Conditions of service of Safai Karamcharis and others. CHAPTER IX WATER-SUPPLY, DRAINAGE AND SEWAGE COLLECTION _Water-supply_ 186. Maintenance of water-supply. 187. Terms of water-supply. 188. Board to carry out survey and formulate proposals. 189. Control over sources of public water-supply. 190. Power to require maintenance or closing of private source of public drinking water-supply. 191. Supply of water. 192. Power to require water-supply to be taken. 193. Supply of water under agreement. 6 ----- SECTIONS 194. Board not liable for failure of supply. 195. Conditions of universal application. 196. Supply to persons outside cantonment. 197. Penalty. _Water, drainage and other connections_ 198. Power of Board to lay wires, connections, etc. 199. Wires, etc., laid above surface of ground. 200. Connection with main not be made without permission. 201. Power to prescribe ferrules and establish meters, etc. 202. Power of inspection. 203. Power to fix rates and charges. _Application of this Chapter to Government water-supplies_ 204. Government water-supply. 205. Water supply for domestic consumption. 206. Recovery of charges. 207. Supply of water from Government water-supply to the Board. 208. Functions of the Board in relation to distribution of bulk supply. 209. Special provisions concerning drainage and sewage. 210. Construction of and control of drains and sewage collection and disposal works. 211. Certain matters not to be passed into cantonments drains. 212. Application by owners and occupiers to drain into cantonment drains. 213. Drainage of undrained premises. 214. New premises not be erected without drains. 215. Power to drain group or block of premises by combined operations. 216. Power to close or limit the use of private drains in certain cases. 217. Use of drain by a person other than the owner. 218. Sewage and rain water drains to be distinct. 219. Power to require owner to carry out certain works for satisfactory drainage. 220. Appointment of places for the emptying of drains and collection of sewage. _Miscellaneous_ 221. Connection with water works and drains not to be made without permission. 222. Buildings, railways and private streets not to be erected or constructed over drains or water works without permission. 223. Rights or user of property for aqueducts, lines, etc. 224. Power of owner of premises to place pipes and drains through land belonging to other persons. 225. Power to require railway level, etc., to be raised or lowered. 226. Power to execute work after giving notice to the person liable. 227. Power to affix shafts, etc., for ventilation of drain or cesspool. 228. Power to examine and test drains, etc., believed to be defective. 229. Bulk delivery of sewage by the Board. 230. Employment of Government agencies for repair, etc. 231. Works to be done by licensed plumber. 232. Prohibition of certain acts. 7 ----- CHAPTER X TOWN PLANNING AND CONTROL OVER BUILDING, ETC. SECTIONS 233. Preparation of land use plan. 234. Sanction for building. 235. Notice of new buildings. 236. Conditions of valid notice. 237. Powers of Board under certain sections exercisable by Chief Executive Officer. 238. Power of Board to sanction or refuse. 239. Order of stoppage of building or works in certain cases and disposal of things removed. 240. Power to sanction general scheme for prevention of overcrowding, etc. 241. Compensation. 242. Completion notice. 243. Lapse of sanction. 244. Restrictions on use of buildings. 245. Period for completion of building. 246. Completion certificate. 247. Illegal erection and re-erection. 248. Power to stop erection or re-erection or to demolish. 249. Power to seal unauthorised constructions. 250. Courts not to entertain proceedings in certain cases. 251. Power to make bye-laws. 252. Prohibition of structures or fixtures which cause obstruction in streets. 253. Unauthorised buildings over drains, etc. 254. Drainage and sewer connections. 255. Power to attach brackets for lamps and other accessories. 256. Maintenance of Roads. _Streets_ 257. Temporary occupation of street, land, etc. 258. Closing and opening of streets. 259. Names of streets and numbers of buildings. 260. Group Housing Schemes. 261. Boundary walls, hedges and fences. 262. Felling, lopping and trimming or trees. 263. Digging of public land. 264. Improper use of land. CHAPTER XI MARKET, SLAUGHTER-HOUSES, TRADES AND OCCUPATIONS 265. Public markers and slaughter-houses. 266. Use of public market. 267. Power to transfer by public auction, etc. 268. Stallages, rents, etc., to be published. 269. Private markets and slaughter-houses. 270. Conditions of grant of licence for private market or slaughter-house. 271. Penalty for keeping market or slaughter-house open without licence, etc. 272. Penalty for using unlicensed market or slaughter-house. 273. Prohibition and restriction of use of slaughter-house. 274. Power to inspect slaughter-houses. 275. Power to regulate certain activities. 8 ----- SECTIONS _Trades and occupations_ 276. Provision of washing places. 277. Licences required for carrying on of certain occupations. 278. Power to stop use of premises used in contravention of licences. 279. Conditions which may be attached to licences. _General provisions_ 280. Power to vary licence. 281. Carrying on trade, etc., without licence or in contravention of section 280. 282. Feeding animals on dirt, etc. _Entry, inspection and seizure_ 283. Powers of entry and seizure. _Import of cattle and flesh_ 284. Import of cattle and flesh. CHAPTER XII SPIRITUOUS LIQUORS AND INTROXICATING DRUGS 285. Unauthorised sale of spirituous liquor or intoxicating drug. 286. [Omitted.]. 287. Arrest of persons, seizure and confiscation of things for offences under section 285. 288. Saving of articles sold or supplied for medicinal purposes. CHAPTER XII PUBLIC SAFETY AND SUPRESSION OF NUISANCES _General Nuisances_ 289. Penalty for causing nuisances. _Dogs_ 290. Registration and control of dogs. _Traffic_ 291. Traffic rule of the road. _Prevention of fire, etc._ 292. Use of inflammable materials for buildings purposes. 293. Stacking or collecting inflammable materials. 294. Care of naked lights. 9 ----- SECTIONS 295. Regulation of cinematographic and dramatic performances. 296. Discharging fire-works, fire-arms, etc. 297. Power to require buildings, wells, etc., to be rendered safe. 298. Enclosure of wasteland used for improper purposes. CHAPTER XIV REMOVAL AND EXCLUSION FROM CANTONMNETS AND SUPPRESSION OF SEXUAL IMMORALITY 299. Power to remove brothels and prostitutes. 300. Penalty for loitering and importuning for purposes of prostitution. 301. Removal of persons from cantonment. 302. Removal and exclusion from cantonment of disorderly persons. 303. Removal and exclusion from cantonment of seditious persons. 304. Penalty. CHAPTER XV POWERS, PROCEDURES, PENALTIES AND APPEALS _Entry and inspection_ 305. Powers of entry. 306. Power of inspection by member of a Board. 307. Power of inspection, etc. 308. Power to enter land, adjoining land where work is in progress. 309. Breaking into premises. 310. Entry to be made in the day time. 311. Owner’s consent ordinarily to be obtained. 312. Regard to be had to social and religious usages. 313. Penalty for obstruction. _Powers and duties of police officers_ 314. Arrest without warrant. 315. Duties of police officers. _Notices_ 316. Notices to fix reasonable time. 317. Authentication and validity of notices issued by Board. 318. Service of notice, etc. 319. Method of giving notice. 320. Powers of Board in case of non-compliance with notice, etc. 321. Occupier not to obstruct owner when complying with notice. _Recovery of Money_ 322. Liability of occupier to play in default of owner. 323. Relief to Agents and Trustees. 324. Method of recovery. 10 ----- SECTIONS _Committees of Arbitration_ 325. Application for a Committee of Arbitration. 326. Procedure for convening Committee of Arbitration. 327. Constitution of the Committee of Arbitration. 328. No person to be nominated who has direct interest or whose services are not immediately available. 329. Meetings and powers of Committee or Arbitration. 330. Decisions of Committee of Arbitration. _Prosecutions_ 331. Prosecutions. 332. Composition of offence. _General Penalty Provisions_ 333. General penalty. 334. Offences by companies. 335. Cancellation or suspension of licences, etc. 336. Recovery of amount payable in respect of damage to cantonment property. _Limitation_ 337. Limitation for prosecution. _Suits_ 338. Protection of action of Board, etc. 339. Notice to be given of suits. _Appeals and Revision_ 340. Appeals from executive orders. 341. Petition of Appeal. 342. Suspension of Action Pending Appeal. 343. Revision. 344. Finality of the Appellate Orders. 345. Right of appellant to be heard. CHAPTER XVI RULES AND BYE-LAWS 346. Power to make rules. 347. Supplemental provisions respecting rules. 348. Power to make bye-laws. 349. Penalty for breach of bye-laws. 350. Supplemental provisions regarding bye-laws and regulations. 351. Rules and bye-laws to be available for inspection and purchase. 11 ----- CHAPTER XVII SUPPLEMENTAL PROVISIONS SECTIONS 352. Extension of certain provisions of the Act and rules to place beyond cantonments. 353. Power to delegate functions to the President, etc. 354. Registration. 355. Validity of notices and other documents. 356. Admissibility of document or entry as evidence. 357. Evidence by officer or employee of the Board. 358. Application of Act 4 of 1899. 359. Power to remove difficulties. 360. Repeals and savings. SCHEDULE I. SCHEDULE II. SCHEDULE III. SCHEDULE IV. SCHEDULE V. 12 ----- # THE CANTONMENTS ACT, 2006 ACT NO. 41 OF 2006 [13th September, 2006.] # An Act to consolidate and amend the law relating to the administration of cantonments with a view to impart greater democratisation, improvement of their financial base to make provisions for developmental activities and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-seventh Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Cantonments Act, 2006.** (2) It extends to the whole of India. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act and any reference in any provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. **2. Definitions.—In this Act, unless there is anything repugnant in the subject or context,—** (a) “Assistant Health Officer” means the medical officer appointed by the General Officer Commanding-in-Chief, the Command, to be the Assistant Health Officer for a cantonment; (b) “Board” means a Cantonment Board constituted under this Act; (c) “boundary wall” means a wall which abuts on a street and which does not exceed two and a half metres in height; (d) “building” means a house, outhouse, stable, latrine, shed, hut or other roofed structure whether of masonry, brick, wood, mud, metal or other material, and any part thereof, and includes a well and a wall other than a boundary wall but does not include a tent or other portable and temporary shelter; (e) “casual election” means an election held to fill a casual vacancy; (f) “casual vacancy” means a vacancy occurring otherwise than by efflux of time in the office of an elected member of a Board and includes a vacancy in such office, arising under sub-section (2) of section 16; (g) “Chief Executive Officer” means the person appointed under this Act to be the Chief Executive Officer of a cantonment; (h) “civil area” means an area declared to be a civil area by the Central Government under sub-section (1) of section 46; (i) “civil area committee” means a committee appointed under section 47; (j) “Command” means one of the Commands into which India is for military purposes for the time being divided, and includes any area which the Central Government may, by notification in the Official Gazette, declare to be a Command for all or any of the purposes of this Act; (k) “dairy” includes any farm, cattle-shed, milk-store, milk-shop or other place from which milk is supplied or in which milk is kept for purposes of sale or is manufactured for the sale into butter, ghee, cheese or curds, and, in relation to a dairyman who does not occupy any premises for the sale of milk, includes any place in which he keeps the vessels used by him for the storage or sale of milk; 1. 18th December, 2006, _vide notification No. S.R.O. 15(E), dated 18th December, 2006,_ _see Gazette of India,_ Extraordinary, Part II, sec. 3(i). 13 ----- (l) “dairyman” includes the keeper of a cow, buffalo, goat, ass or other animal, the milk of which is offered or is intended to be offered for sale for human consumption, and any supplier of milk and any occupier of a dairy; (m) “dangerous disease” means cholera, leprosy, enteric fever, smallpox, tuberculosis, diphtheria, plague, influenza, venereal disease, hepatitis, Acquired Immune Deficiency Syndrome and any other epidemic, endemic, infectious or communicable disease which the Board may by public notice, declare to be, an infectious, contagious or communicable disease for the purposes of this Act; (n) “Defence Estates Circle” means one of the circles into which India is, for the purposes of defence estates management, for the time being divided, and includes any area which the Central Government may, by notification in the Official Gazette, declare to be a Defence Estates Circle for all or any of the purposes of this Act; (o) “Defence Estates Officer” means the officer appointed by the Central Government to perform the duties of the Defence Estates Officer for the purpose of this Act and the rules made thereunder; (p) “Director General” means an officer of the Indian Defence Estates Service (IDES) appointed by the Central Government to perform the duties of the Director General, Defence Estates for the purpose of this Act and includes Senior Additional Director General and Additional Director General; _(q) “Director” means the officer appointed by the Central Government to perform the duties of_ the Director, Defence Estates, the Command, for the purposes of this Act and the rules made thereunder; (r) “entitled consumer” means a person in a cantonment who is paid from the Defence Service Estimates and is authorised by general or special order of the Central Government to receive a supply of water for domestic purposes from the Military Engineer Services or the Public Works Department on such terms and conditions as may be specified in the order; (s) “Executive Engineer” means the officer of the Military Engineer Services of that grade, having charge of the military works in a cantonment or where more than one such officer has charge of the military works in a cantonment such one of those officers as the Officer Commanding the station may designate in this behalf, and includes the officer of whatever grade in immediate executive engineering charge of a cantonment; (t) “factory” means a factory as defined in clause (m) of section 2 of the Factories Act, 1948 (63 of 1948); (u) “Forces” means the regular Army, Navy and Air Force or any part of any one or more of them; (v) “General Officer Commanding-in-Chief, the Command (GOC-in-C, Command)” means the Officer Commanding any of the Commands; (w) “General Officer Commanding the Area” means the Officer Commanding any one of the areas into which India is for military purposes for the time being divided, or any sub-area which does not form part of any such area, or any area which the Central Government may, by notification in the Official Gazette, declare to be an area for all or any of the purposes of this Act; (x) “Group Housing” means a group of houses for dwelling purposes and may comprise all or any of the following: namely, (a) a dwelling unit, (b) open spaces intended for recreation and ventilation, (c) roads, paths, sewers, drains, water supply and ancillary installations, street lighting and other amenities, (d) convenient shopping place, schools, community hall or other amenities for common use; (y) “Government” in relation to this Act means the Central Government; (z) “Health Officer” means the senior executive medical officer in military employ on duty in a cantonment; (za) “hospital” includes family welfare centre, child welfare centre, maternity centre and health centre; 14 ----- (zb) “hut” means any building, no material portion of which above the plinth level is constructed of masonry or of squared timber framing or of iron framing; (zc) “inhabitant”, in relation to a cantonment, or local area means any person ordinarily residing or carrying on business or owning or occupying immovable property therein, or declared as such by the Chief Executive Officer and in case of a dispute, as decided by the District Magistrate; (zd) “intoxicating drug” includes a narcotic drug and psychotropic substance as defined in the Narcotic Drugs and Psychotropic Substances Act, 1985 (61 of 1985) as modified from time to time; (ze) “market” includes any place where persons assemble for the sale of, or for the purpose of exposing for sales, meat, fish, fruits, vegetables, animals intended for human food or any other articles of human food whatsoever, with or without the consent of the owner of such place notwithstanding that there may be no common regulation for the concourse of buyers and sellers and whether or not any control is exercised over the business of, or the persons frequenting, the market by the owner of the place or by any other person, but shall not include a single shop or group of shops not being more than six in number and shops within unit lines; (zf) “military” includes Air Force, Navy and other defence related establishments; (zg) “military officer” means a person who, being an officer within the meaning of the Army Act, 1950 (46 of 1950), the Navy Act, 1957 (62 of 1957) or the Air Force Act, 1950 (45 of 1950), is commissioned, gazetted or in pay as an officer doing army, naval or air force duty with the army, navy or air force, or is an officer doing such duty in any arm, branch or part of any of those forces; (zh) “nuisance” includes any act, omission, place, animal or thing which causes or is likely to cause injury, danger, annoyance or offence to the sense of sight, smell or hearing or disturbance to rest or sleep, or which is or may be dangerous to life or injurious to health or property; (zi) “occupier” includes an owner in occupation of, or otherwise using his own land or building; (zj) “Officer Commanding the station or Station Commander” means the military officer for the time being in command of the forces in a cantonment and if such officer is likely to be absent for more than thirty days, the General Officer Commanding-in-Chief, the Command may nominate, by an order, another military officer as “Officer Commanding the station or Station Commander”; (zk) “ordinary election” means an election held to fill a vacancy in the office of an elected member of a Board arising by efflux of time; (zl) “owner” includes any person who is receiving or is entitled to receive the rent of any building or land whether on his own account or on behalf of himself and others or an agent or trustee, or who would so receive the rent or be entitled to receive it if the building or land were let to a tenant; (zm) “party wall” means a wall forming part of a building and used or constructed to be used for the support or separation of adjoining buildings belonging to different owners, or constructed or adapted to be occupied by different persons; (zn) “Principal Director” means the Officer appointed by the Central Government to perform the duties of the Principal Director, Defence Estates, the Command for the purpose of this Act and the rules made thereunder; (zo) “private market” means a market which is not maintained by a Board and which is licensed by a Board under the provisions of this Act; (zp) “private slaughter-house” means a slaughter-house which is not maintained by a Board and which is licensed by a Board under the provisions of this Act; (zq) “public market” means a market maintained by a Board; (zr) “public place” means any place which is open to the use and enjoyment of the public, whether it is actually used or enjoyed by the public or not; (zs) “public slaughter-house” means a slaughter-house maintained by a Board; 15 ----- (zt) “resident”, in relation to a cantonment, means a person who maintains therein a house or a portion of a house which is at all times available for occupation by himself or his family even though he may himself reside elsewhere, provided that he has not abandoned all intention of again occupying such house either by himself or his family; (zu) “regulation” means a regulation made by a Cantonment Board under this Act by notification in the Official Gazette; (zv) “rule” means a rule made by the Central Government under this Act by notification in the Official Gazette; (zw) “shed” means a slight or temporary structure for shade or shelter; (zx) “slaughter-house” means any place ordinarily used for the slaughter of animals for the purpose of selling the flesh thereof for human consumption; (zy) “soldier” means any person who is a soldier or sailor or an airman subject to the Army Act, 1950 (46 of 1950), the Navy Act, 1957 (62 of 1957) or the Air Force Act, 1950 (45 of 1950), as the case may be, and who is not a military officer; (zz) “spirituous liquor” means any fermented liquor, any wine, or any alcoholic liquid obtained by distillation or the sap of any kind of palm tree, and includes any other liquid containing alcohol which the Central Government may, by notification in the Official Gazette, declare to be a spirituous liquor for the purposes of this Act; (zza) “street” includes any way, road, lane, square, court, alley or passage in a cantonment, whether a thoroughfare or not and whether built upon or not, over which the public have a right of way and also the road-way or foot-way over any bridge or cause way; (zzb) “sub-area” means one of the sub-areas into which India is for military purposes for the time being divided and includes, for all or any of the purposes of this Act, any territory which the Central Government may, by notification in the Official Gazette, declare to be a sub-area for such purposes; (zzc) “trade or commercial premises” means any premises used or intended to be used for carrying on any trade, commerce or industry; (zzd) “vehicle” means a wheeled conveyance of any description which is capable of being used on a street, and includes a motor-car, motor lorry, motor omnibus, cart, locomotive, tram-car, handcart, truck, motor-cycle, bicycle, tricycle and rickshaw; (zze) “water-works” includes all lakes, tanks, streams, cisterns, springs, pumps, wells, reservoirs, aqueducts, water-trucks, sluices mains, pipes, culverts, hydrants, stand-pipes, and conduits and all machinery, lands, buildings, bridges and things used for, or intended for the purpose of supplying water to a cantonment; and (zzf) “year” means the year commencing on the first day of April. CHAPTER II DEFINITION AND DELIMITATION OF CANTONMENT **3. Definition of cantonments.—(1) The Central Government may, by notification in the Official** Gazette, declare any place or places along with boundaries in which any part of the Forces is quartered or which, being in the vicinity of any such place or places, is or are required for the service of such forces to be a cantonment for the purposes of this Act and of all other enactments for the time being in force, and may, by a like notification, declare that any cantonment shall cease to be a cantonment. (2) The Central Government may, by a like notification, define the limits of any cantonment for the aforesaid purposes. (3) When any place is declared a cantonment under sub-section (1), the Central Government shall constitute a Board within a period of one year in accordance with the provisions of this Act: Provided that the Central Government may, for the reasons to be recorded in writing, extend the said period of one year for a further period of six months at a time: 16 ----- Provided further that the Central Government may, until a Board is constituted, by order make necessary provisions for the efficient administration of the cantonment. (4) The Central Government may, by notification in the Official Gazette, direct that in any place declared a cantonment under sub-section (1) the provisions of any enactment relating to local self-government other than this Act shall have effect only to such extent or subject to such modifications, or that any authority constituted under any such enactment shall exercise authority only to such extent, as may be specified in the notification. **4. Alteration of limits of cantonments.—(1) The Central Government may after consulting the State** Government and the Board concerned, by notification in the Official Gazette, declare its intention to include within the cantonment any local area situated in the vicinity thereof or to exclude from the cantonment any local area comprised therein. (2) Any inhabitant of a cantonment or local area in respect of which notification has been published under sub-section (1) may, within eight weeks from the date of notification, submit in writing to the Central Government through the General Officer Commanding-in-Chief, the Command, an objection to the notification, and the Central Government shall take such objection into consideration. (3) On the expiry of eight weeks from the date of the notification, the Central Government may after considering the objections, if any, which have been submitted under sub-section (2), by notification in the Official Gazette, include the local area in respect of which the notification was published under sub-section (1), or any part thereof, in the cantonment or, as the case may be, exclude such area or any part thereof from the cantonment. **5. The effect of including area in cantonment.—When, by a notification under section 4, any local** area is included in a cantonment, such area shall there upon become subject to this Act and to all other enactments for the time being in force throughout the cantonment and to all notifications, rules, regulations, bye-laws, orders and directions issued or made thereunder. **6. Disposal of cantonment fund and cantonment development fund when area ceases to be a** **cantonment.—(1) When, by a notification under section 3, any cantonment ceases to be a cantonment** and the local area comprised therein is immediately placed under the control of a local authority, the balance of the cantonment fund or the cantonment development fund and other property vesting in the Board shall vest in such local authority, and the liabilities of the Board shall be transferred to such local authority. (2) When, in like manner, any cantonment ceases to be a cantonment and the local area comprised therein is not immediately placed under the control of a local authority, the balance of the cantonment fund or the cantonment development fund and other property vesting in the Board shall vest in the Central Government, and the liabilities of the Board shall be transferred to that Government. **7. Disposal of cantonment fund and cantonment development fund when area ceases to be** **included in a cantonment.—(1) When, by a notification under section 4, any local area forming part of a** cantonment ceases to be under the control of a particular Board and is immediately placed under the control of some other local authority, such portion of the cantonment fund or the cantonment development fund and other property vesting in the Board and such portion of the liabilities of the Board, as the Central Government may, by general or special order, direct, shall be transferred to that other local authority. (2)When, in like manner, any local area forming part of a cantonment ceases to be under the control of a particular Board and is not immediately placed under the control of some other local authority; such portion of the cantonment fund or the cantonment development fund and other property vesting in the Board shall vest in the Central Government, and such portion of the liabilities of the Board shall be transferred to that Government, as the Central Government may, by general or special order, direct. **8. Application of funds and property transferred under sections 6 and 7.—Any cantonment fund** or a cantonment development fund or a portion thereof or other property of a Board vesting in the Central Government under the provisions of section 6 or section 7 shall be applied in the first place to satisfy any liabilities of the Board transferred under such provisions to that Government, and in the second place for 17 ----- the benefit of the inhabitants of the local area which has ceased to be a cantonment or, as the case may be, part of a cantonment. **9. Limitation of operation of Act.—The Central Government may, by notification in the Official** Gazette, exclude from the operation of any part of this Act the whole or any part of a cantonment, or direct that any provision of this Act shall, in the case of any cantonment— (a) situated within the limits of a metropolitan area; or (b) in which the Board is superseded under section 60, apply with such modification as may be so specified. CHAPTER III CANTONMENT BOARDS _Boards_ **10. Cantonment Board.—(1) For every cantonment there shall be a Cantonment Board.** (2) Every Board shall be deemed to be a municipality under clause (e) of article 243P of the Constitution for the purposes of— (a) receiving grants and allocations; or (b) implementing the Central Government schemes of social welfare, public health, hygiene, safety, water supply, sanitation, urban renewal and education. **11. Incorporation of Cantonment Board.—Every Board shall, by the name of the place by** reference to which the cantonment is known, be a body corporate having perpetual succession and a common seal with power to acquire and hold property both movable and immovable and to contract and shall by the said name, sue and be sued. **12. Constitution of Cantonment Boards.—Cantonments shall be divided into four categories,** namely:— (i) Category I Cantonments, in which the population exceeds fifty thousand; (ii) Category II Cantonments, in which the population exceeds ten thousand, but does not exceed fifty thousand; (iii) Category III Cantonments, in which the population exceeds two thousand five hundred, but does not exceed ten thousand; and (iv) Category IV Cantonments, in which the population does not exceed two thousand five hundred. (2) For the purposes of sub-section (1), the population shall be calculated in accordance with the latest official census, or, if the Central Government, by general or special order, so directs, in accordance with a special census taken for the purpose. (3) In Category I Cantonments, the Board shall consist of the following members, namely:— (a) the Officer Commanding the station as ex officio or, if the Central Government so directs in respect of any cantonment, such other military officer as may be nominated in his place by the General Officer Commanding-in-Chief, the Command; (b) the District Magistrate or an Executive Magistrate not below the rank of Additional District Magistrate nominated by him; (c) the Chief Executive Officer; (d) the Health Officer ex officio; (e) the Executive Engineer ex officio; (f) three military officers nominated by name by the Officer Commanding the station by order in writing; 18 ----- (g) eight members elected under this Act. (4) In Category II Cantonments, the Board shall consist of the following members, namely:— (a) the Officer Commanding the station as ex officio or, if the Central Government so directs in respect of any cantonment, such other military officer as may be nominated in his place by the General Officer Commanding-in-Chief, the Command; (b) the District Magistrate or an Executive Magistrate not below the rank of Additional District Magistrate nominated by him; (c) the Chief Executive Officer; (d) the Health Officer ex officio; (e) the Executive Engineer ex officio; (f) two military officers nominated by name by the Officer Commanding the station by order in writing; (g) seven members elected under this Act. (5) In Category III Cantonments, the Board shall consist of the following members, namely:— (a) the Officer Commanding the station as ex officio or, if the Central Government so directs in respect of any cantonment, such other military officer, as may be nominated in his place by the General Officer Commanding-in-Chief, the Command; (b) the District Magistrate or an Executive Magistrate nominated by him; (c) the Chief Executive Officer; (d) the Health Officer ex officio; (e) the Executive Engineer ex officio; (f) one military officer nominated by name by the Officer Commanding the station by order in writing; (g) six members elected under this Act. (6) In Category IV Cantonments, the Board shall consist of the following members, namely:— (a) the Officer Commanding the station _ex officio or, if the Central Government so directs in_ respect of any cantonment, such other military officer as may be nominated in his place by the General Officer Commanding-in-Chief, the Command; (b) the Chief Executive Officer; (c) two members elected under this Act. (7) The Officer Commanding the station may, if he thinks fit, with the sanction of the General Officer Commanding-in-Chief, the Command, nominate in place of any military officer whom he is empowered to nominate under clause (f) of sub-section (3), clause (f) of sub-section (4) or clause (f) of sub-section (5), any person, whether in the service of the Government or not, who is ordinarily resident in the cantonment or in the vicinity thereof. (8) Every election or nomination of a member of a Board and every vacancy in the elected membership thereof shall be notified by the Central Government in the Official Gazette; (9) The Member of Parliament and Member of Legislative Assembly representing constituencies which comprises wholly or partly the cantonment area, shall be special invitees for the meetings of the Board but without a right to vote. **13. Power to vary constitution of Boards in special circumstances.—(1) Notwithstanding anything** contained in section 12, if the Central Government is satisfied,— (a) that by reason of military operations, it is necessary, or 19 ----- (b) that, for the administration of the cantonment, it is desirable, to vary the constitution of the Board in any cantonment under this section, the Central Government may, by notification in the Official Gazette, make a declaration to that effect. (2) Upon the making of a declaration under sub-section (1), the Board in the cantonment shall consist of the following members, namely:— (a) the Officer Commanding the station, (b) the Chief Executive Officer, and (c) one member, not being a person in the service of the Government, nominated by the Central Government in consultation with the General Officer Commanding-in-Chief, the Command. (3) The nomination of a member of a Board constituted under this section, and the vacancy in the membership thereof shall be notified by the Central Government in the Official Gazette. (4) The term of office of a Board constituted by a declaration under sub-section (1) shall not ordinarily extend beyond one year: Provided that the Central Government may from time to time, by a like declaration, extend the term of office of such a Board by any period not exceeding one year at a time: Provided also that the Central Government shall forthwith direct that the term of office of such a Board shall cease if, in the opinion of the Central Government, the reasons stated in the declaration whereby such Board was constituted or its term of office was extended, have ceased to exist. (5) When the term of office of a Board constituted under this section has expired or ceased, the Board shall be replaced by the former Board which, but for the declaration under sub-section (1) or sub-section (4), would have continued to hold office, or, if the term of office of such former Board has expired, by a Board constituted under section 12. **14. Term of office of members.—(1) Save as otherwise provided in this section, the term of office of** a member of a Board shall be five years and shall commence— (a) in case of an elected member, from the date of notification of his election under sub-section (8) of section 12, or from the date on which the vacancy has occurred to which he is elected, whichever is later; and (b) in case of a nominated member, from the date of nomination under clauses (b) and (f) of sub-section (3), clauses (b) and (f) of sub-section (4) and clauses (b) and (f) of sub-section (5) of section 12, or the date of vacancy under clause (b) of sub-section (1) of section 18, whichever is later, and the member so nominated shall be able to take part in the proceedings of the Board: Provided that the Central Government may, when satisfied that it is necessary in order to avoid administrative difficulty, extend the term of office of all the elected members of a Board by such period not exceeding one year, as it thinks fit: Provided further that a member whose term of office has been so extended, shall cease to hold office on the date of the notification of the election of his successor under sub-section (8) of section 12. (2) The term of office of an ex officio member of a Board shall continue so long as he holds the office by virtue of which he is such a member. (3) The term of office of a member elected to fill a casual vacancy shall commence from the date of the notification of his election, and shall continue so long only as the member in whose place he is elected would have been entitled to hold office if the vacancy had not occurred. (4) An outgoing member shall, unless the Central Government otherwise directs, continue in office until the election of his successor is notified under sub-section (8) of section 12 or the nomination of his successor, as the case may be. (5) Any outgoing member may, if qualified, be re-elected or re-nominated. 20 ----- **15. Filling of vacancies.—(1) Vacancies arising by efflux of time in the office of an elected member** of a Board shall be filled by an ordinary election to be held on such date as the Central Government may, by notification in the Official Gazette, direct. (2) A casual vacancy shall be filled by a casual election the date of which shall be fixed by the Central Government by notification in the Official Gazette, and shall be, as soon as may be, after the occurrence of the vacancy: Provided that no casual election shall be held to fill a vacancy occurring within six months of any date on which the vacancy will occur by efflux of time, but such vacancy shall be filled at the next ordinary election. **16. Vacancies in special cases.—(1) If for any cause at an election no member is elected, or if the** elected member is unwelling to serve on the Board, fresh election shall be held to fill up such vacancy. (2) If a person is elected to more than one seat in a Board, then, unless he resigns all but one of the seats within fourteen days from the date on which he is declared elected, or where the dates on which he is declared elected are different in respect of different seats, from the last of such dates, all the seats shall become vacant. (3) Vacancies arising in any of the following cases shall be filled by nomination by the Central Government after consultation with the General Officer Commanding-in-Chief, the Command, namely:— (a) where at a casual election no member is elected; (b) where at an election held when a Board is constituted for the first time no member or an insufficient number of members is elected or an elected member is unwilling to serve on the Board. (4) For the purposes of sub-section (2) of section 15, a member nominated in pursuance of sub-section (3) of this section shall where there has been a division of the cantonment into wards, be deemed to have been elected by such ward as the Central Government may at the time of making the nomination or at any time thereafter declare. (5) The term of office of a member nominated under this section shall expire at the time at which it would have expired if he had been elected at the casual election. **17. Oath or affirmation.—Every person who is by virtue of his office, or who is nominated or** elected to be, a member of the Board shall, before taking his seat, make and subscribe at a meeting of the Board an oath or affirmation of his allegiance to the Constitution of India in the following form, namely:— become “I, A.B., having been elected a member of this Board, do been nominated swear in the name of God that I will bear true faith and allegiance to the Constitution of solemnly affirm India as by law established and that I will faithfully discharge the duty upon which I am about to enter. **18. Resignation.—(1) (a) Any elected member of a Board who wishes to resign his office may give** his resignation in writing to the President of the Board who shall forward it for acceptance and notification to the Central Government under intimation to the General Officer Commanding-in-Chief, the Command. (b) Any nominated member of a Board who wishes to resign his office may forward his resignation in writing through the President of the Board to the General Officer Commanding-in-Chief, the Command for orders. (2) If the Central Government or the General Officer Commanding-in-Chief, the Command, as the case may be, accepts the resignation, such acceptance shall be communicated to the Board, and thereupon the seat of the member resigning shall become vacant. 21 ----- (3) Notwithstanding anything contained in sub-section (2), the resignation of any person elected to more than one seat in a Board from all but one of the seats in pursuance of sub-section (2) of section 16 shall take effect when such resignation is received by the President of the Board. **19. President and Vice-President.—(1) The Officer commanding the station if a member of the** Board shall be the President of the Board: Provided that when a military officer holding the office of the President ceases to be the Officer commanding the station merely by reason of a temporary absence from the station for a period not exceeding thirty consecutive days, he shall not vacate the office of President. (2) Where the Officer commanding the station is not a member of the Board, the military officer nominated in his place under clause (a) of sub-section (3), sub-section (4), sub-section (5) or sub-section (6) of section 12 shall be the President of the Board. (3) In every Board except in case of a Board falling under Category IV Cantonment there shall be a Vice-President elected by the elected members only from amongst them in accordance with such procedure as the Central Government may by rule prescribe. (4) In case of a Board falling under Category IV Cantonment, the Vice-President shall be elected by draw of lot under the supervision of the President of the Board in such manner as he may decide. **20. Term of office of Vice-President.—(1) The term of office of a Vice-President shall be five years** or his residual term of office as a member, whichever is less. (2) A Vice-President may resign his office by notice in writing to the President and, on the resignation being accepted by the Board, the office shall become vacant. (3) A Vice-President may be removed from his office, at a special meeting convened for the purpose on a requisition for the same by not less than one-half of the elected members of the Board holding office, by a resolution passed by a majority of not less than two-thirds of the total number of elected members then holding office and attending and no member, other than an elected member, shall have the right to vote on the resolution: Provided that in case of Category IV Cantonments, the Vice-President may be removed if a resolution to this effect is passed by the Board and the other elected member shall become the Vice-President. **21. Duties of President.—(1) It shall be the duty of the President of every Board—** (a) unless prevented by reasonable cause, to convene and preside at all meetings of the Board and to regulate the conduct of business thereat; (b) to control, direct and supervise the financial and executive administration of the Board; (c) to perform all the duties and exercise all the powers specifically imposed or conferred on the President by or under this Act; and (d) subject to any restrictions, limitations and conditions imposed by this Act, to exercise executive power for the purpose of carrying out the provisions of this Act and to be directly responsible for the fulfilment of the purposes of this Act; (e) in case of gross misconduct during the course of meeting, to suspend a member other than a Chief Executive Officer from attending the unconcluded part of the meeting of the Board. (2) The President may, by order in writing, empower the Vice-President to exercise all or any of the powers and duties referred to in clause (b) of sub-section (1) other than any power, duty or function which he is by resolution of the Board expressly forbidden to delegate. (3) The exercise or discharge of any powers, duties or functions delegated by the President under this section shall be subject to such restrictions, limitations and conditions, if any, as may be laid down by the President and to the control of, and to revision by, the President. (4) Every order made under sub-section (2) shall forthwith be communicated to the Board and to the General Officer Commanding-in-Chief, the Command. 22 ----- **22. Duties of Vice-President.—(1) It shall be the duty of the Vice-President of every Board,—** (a) in the absence of the President and unless prevented by reasonable cause, to preside at meetings of the Board and when so presiding to exercise the authority of the President under sub-section (1) of section 21; (b) during the incapacity or temporary absence of the President or pending his appointment or succession to perform any other duty and exercise any other power of the President; and (c) to exercise any power and perform any duty of the President which may be delegated to him under sub-section (2) of section 21. **23. Allowances to Vice-President and members.—The Vice-President and each elected member of** the Board shall be entitled to receive such allowances, as the Central Government may, by rule, prescribe. **24. Appointment of Chief Executive Officer.—(1) For every cantonment there shall be a Chief** Executive Officer appointed by the Central Government or by such person as the Central Government may authorise in this behalf: Provided that, in the event of temporary absence of the Chief Executive Officer, not exceeding ninety days, the Principal Director shall designate an officer under his jurisdiction to perform the duties of the Chief Executive Officer during such period. (2) Not less than one-half of the salary of the Chief Executive Officer shall be paid by the Central Government and the balance from the cantonment fund. (3) The Chief Executive Officer shall be the Member-Secretary of the Board and of every Committee of the Board. **25. Duties of Chief Executive Officer.—(1) Subject to the provisions of clause (c) and clause (d) of** sub-section (1) of section 21, the Chief Executive Officer shall— (a) exercise all the powers and perform all the duties conferred or imposed upon him by or under this Act or any other law for the time being in force; (b) subject to any restrictions, limitations and conditions imposed by this Act, to exercise executive power to ensure that the administration of the Board is carried out in accordance with provisions of this Act; (c) prescribe the duties of, and exercise supervision and control over the acts and proceedings of all, officers and employees of the Board; (d) be responsible for the custody of all records of the Board; (e) arrange for the performance of such duties relative to the proceedings of the Board or of any Committee of the Board or of any Committee of Arbitration constituted under this Act, as those bodies may respectively impose on him; and (f) comply with every requisition of the Board on any matter pertaining to the administration of the cantonment. **26. Special power of Chief Executive Officer.—(1) The Chief Executive Officer may direct the** execution of any work or the doing of any act, in public interest and in accordance with the provisions of this Act and the rules made thereunder, and incur such expenditure as may be necessary in executing such work or doing such act, as the case may be, subject to the financial limits which the Board may by resolution determine subject to general guidelines issued by the Director General, Defence Estates with the approval of the Central Government. (2) The Chief Executive Officer may, in case of emergency, direct the execution of any work or the doing of any act which would ordinarily require the sanction of the Board and immediate execution or doing of which is in his opinion, necessary for the service or safety of the public, and may direct that the expense of executing such work or doing such act shall be paid from the cantonment fund: 23 ----- Provided that— (a) he shall not act under this section without the previous sanction of the President or, in his absence, of the Vice-President; (b) he shall not act under this section in contravention of any order of the Board prohibiting the execution of any particular work or the doing of any particular act; and (c) he shall report forthwith the action taken under this section and the reasons there for to the Board. _Elections_ **27. Electoral rolls.—(1) The Board or, where a Board is not constituted in any place declared by** notification under sub-section (1) of section 3 to be a cantonment, the Officer Commanding the station, shall prepare and publish an electoral roll showing the names of persons qualified to vote at elections to the Board and such roll shall be prepared, revised and finally published in such manner and on such date in each year as the Central Government may by rule prescribe. (2) Every person whose name appears in the final electoral roll shall, so long as the roll remains in force, be entitled to vote at an election to the Board, and no other person shall be so entitled. (3) When a cantonment has been divided into wards, the electoral roll shall be divided into separate lists for each ward. (4) If a new electoral roll is not published in any year on the date prescribed, the Central Government may direct that the old electoral roll shall continue in operation until the new roll is published. **28. Qualification of electors.—(1) Every person who, on such date as may be fixed by the Central** Government in this behalf by notification in the Official Gazette here in after in this section referred to as “the qualifying date”, is not less than eighteen years of age and who has resided in the cantonment for a period of not less than six months immediately preceding the qualifying date shall, if not otherwise disqualified, be entitled to be enrolled as an elector. _Explanation.—When any place is declared a cantonment for the first time, or when any local area is_ first included in a cantonment, residence in the place or area comprising the cantonment on the aforesaid date shall be deemed to be residence in the cantonment for the purposes of this sub-section. (2) A person notwithstanding that he is otherwise qualified, shall not be entitled to be enrolled as an elector if he on the qualifying date— (i) is not a citizen of India, or (ii) has been adjudged by a competent court to be of unsound mind, or (iii) is an undischarged insolvent, or (iv) has been sentenced by a Criminal Court to imprisonment for a term exceeding two years for an offence which is declared by the Central Government to be such as to unfit him to become an elector or has been sentenced by a Criminal Court for any offence under Chapter IXA of the Indian Penal Code (45 of 1860): Provided that any disqualification incurred by a person under clause (iv) shall terminate on the lapse of three years from the expiry of the sentence or order. (3) If any person having been enrolled as an elector in any electoral roll subsequently becomes subject to any of the disqualifications referred to in sub-section (2), his name shall be removed from the electoral roll unless, in the case referred to in clause (iv), the disqualification is removed by the Central Government. **29. Qualification for being a member of the Board.—(1) Save as hereinafter provided, every** person, not being a person holding any office of profit under the Government, whose name is entered on the electoral roll of a cantonment shall be qualified for election as a member of the Board in that cantonment. 24 ----- (2) No person shall be qualified for nomination as a member of a Board if he is subject to any of the disqualifications specified in sub-section (2) of section 28. (3) No person shall be qualified for being chosen whether by election or nomination as, and for being a member of a Board, if he— (a) has been dismissed from the service of the Government and is debarred from re-employment therein, or is a dismissed employee of a Board; (b) is debarred from practising his profession or calling by order of any competent authority; (c) holds any place of profit in the gift or at the disposal of the Board, or is a police officer, or is the servant or employer of a member of the Board; or (d) is interested in a subsisting contract made with, or in work being done for, the Board except as a shareholder other than a director in an incorporated company; or (e) is an officer or employee, permanent or temporary, of a Board or of any other local authority; or (f) is a member of any other local authority; or (g) has, by the authority referred to in clause (f) of section 31, been found to have been guilty of any of the corrupt practices specified in sub-section (2) of section 30 unless a period of five years has elapsed since the date of the decision of the authority; or (h) fails to pay any arrears of any kind due by him otherwise than as an agent, receiver, trustee or an executor, to the Board within thirty days after the notice in this behalf has been served upon him; or (i) is disqualified under any other provision of this Act: Provided that a person shall not be deemed to have any interest in such a contract or work as is referred to in clause (d) by reason only of his having a share or interest in— (a) any lease or sale or purchase of immovable property or any agreement for the same; or (b) any agreement for the loan of money or any security for the payment of money only; or (c) any newspaper in which any advertisement relating to the affairs of the Board is inserted; or (d) the sale to the Board of any articles in which he regularly trades or the purchase from the Board of any articles, to a value in either case not exceeding twenty-five thousand rupees in the aggregate in any year during the period of the contract or work. **30. Interpretation.—(1) For the purposes of sections 27, 28 and 29, ‘person’ means an individual** human being. (2) The following shall be deemed to be corrupt practices within the meaning of clause (g) of sub-section (3) of section 29, namely:— (1) “bribery” that is to say— (A) any gift, offer or promise by a candidate or his agent or by any other person with the consent of a candidate or his agent of any gratification to any person whomsoever, with the object, directly or indirectly of inducing— (a) a person to stand or not to stand as, or to withdraw or not to withdraw from being, a candidate at an election; or (b) an elector to vote or refrain from voting at an election, or as a reward to— (i) a person for having so stood or not stood, or for having withdrawn or not having withdrawn his candidature; or (ii) an elector for having voted or refrained from voting; 25 ----- (B) the receipt of, or agreement to receive, any gratification, whether as a motive or are ward— (a) by a person for standing or not standing as, or for withdrawing or not withdrawing, from being a candidate; or (b) by any person whomsoever for himself or any other person for voting or refraining from voting, or inducing or attempting to induce any elector to vote or refrain from voting, or any candidate to withdraw or not to withdraw his candidature. _Explanation.—For the purpose of this clause, the term “gratification” is not restricted to_ pecuniary gratification or gratifications estimable in money and it includes all forms of entertainment and all forms of employment for reward but it does not include the payment of any expenses _bona_ _fide incurred at, or for the purpose of, any election._ (2) Undue influence, that is to say, any direct or indirect interference or attempt to interfere on the part of the candidate or his agent, or of any other person with the consent of the candidate or his agent with the free exercise of any electoral right: Provided that — (a) without prejudice to the generality of the provisions of this clause any such person as is referred to therein who— (i) threatens any candidate or any elector, or any person in whom a candidate or an elector is interested, with injury of any kind including social ostracism and ex-communication or expulsion from any caste or community; or (ii) induces or attempts to induce a candidate or an elector to believe that he, or any person in whom he is interested, will become or will be rendered an object of divine displeasure or spiritual censure, shall be deemed to interfere with the free exercise of the electoral right of such candidate or elector within the meaning of this clause; (b) a declaration of public policy, or a promise of public action, or the mere exercise of a legal right without intent to interfere with an electoral right shall not be deemed to interfere within the meaning of this clause. (3) The appeal by a candidate or his agent or by any other person with the consent of a candidate or his agent to vote or refrain from voting for any person on the ground of his religion, race, caste, community or language or the use of, or appeal to religious symbols or the use of, or appeal to, national symbols, such as national flag or the national emblem for the furtherance of the prospects of the election of that candidate or for prejudicially affecting the election of any candidate. (4) The promotion of, or attempt to promote, feelings of enmity or hatred between different classes of the citizens of India on grounds of religion, race, caste, community or language, by a candidate or his agent or any other person with the consent of a candidate or his agent for the furtherance of the prospects of the election of that candidate or for prejudicially affecting the election of any candidate. (5) The publication by a candidate or his agent or by any other person, with the consent of a candidate or his agent, of any statement of fact which is false, and which he either believes to be false or does not believe to be true, in relation to the personal character or conduct of any candidate, or in relation to the candidature, or withdrawal of any candidate, being a statement reasonably calculated to prejudice the prospects of that candidate's election. (6) The hiring or procuring, whether on payment or otherwise, of any vehicle or vessel by a candidate or his agent or by any other person with the consent of a candidate or his agent or the use of such vehicle or vessel for the free conveyance of any elector other than the candidate himself, the members of his family or his agent to or from any polling station or place fixed for the poll: Provided that the hiring of a vehicle or vessel by any elector or by several electors at their joint costs for the purpose of conveying him or them to and from any such polling station or place fixed for the poll shall not be deemed to be a corrupt practice under this clause if the vehicle or vessel so hired is a vehicle or vessel not propelled by mechanical power: 26 ----- Provided further that the use of any public transport vehicle or vessel or any tramcar or railway carriage by any elector at his own cost for the purpose of going to or coming from any such polling station or place fixed for the poll shall not be deemed to be a corrupt practice under this clause. _Explanation.—In this clause, the expression “vehicle” means any vehicle used or capable of being_ used for the purpose of road transport, whether propelled by mechanical power or otherwise and whether used for drawing other vehicles or otherwise. (7) The obtaining or procuring or abetting or attempting to obtain or procure by a candidate or his agent or, by any other person with the consent of a candidate or his agent, any assistance other than the giving of vote for the furtherance of the prospects of that candidate's election, from any person in the service of the Government or the Board: Provided that where any person, in the service of the Government or the Board in the discharge or purported discharge of his official duty, makes any arrangements or provides any facilities or does any other act or thing, for, to, or in relation to, any candidate or his agent or any other person acting with the consent of the candidate or his agent whether by reason of the office held by the candidate or for any other reason, such arrangements, facilities or act or thing shall not be deemed to be assistance for the furtherance of the prospects of that candidate’s election. _Explanation.—In this section, the expression “agent” includes any person who is held to have acted_ as an agent in connection with the election with the consent of the candidate. **31. Power to make rules regulating elections.—The Central Government may, either generally or** specially for any cantonment or group of cantonments, after previous publication, make rules consistent with this Act to regulate all or any of the following matters for the purpose of the holding of elections under this Act, namely:— (a) the division of a cantonment into wards; (b) the determination of the number of members to be elected by each ward; (c) the preparation, revision and final publication of electoral rolls; (d) the reservation of wards for election of the Scheduled Castes, the Scheduled Tribes and women; (e) the registration of electors, the nomination of candidates, the time and manner of holding elections and the method by which votes shall be recorded; (f) the authority which may be an officer of the State Government by which and the manner in which disputes relating to electoral rolls or arising out of elections shall be decided, and the powers and duties of such authority and the circumstances in which such authority may declare a casual vacancy to have been created or any candidate to have been elected; (g) the fee to be paid for admission and consideration of any application relating to election or election disputes; (h) any other matter relating to elections or election disputes in respect of which the Central Government is empowered to make rules under this Chapter or in respect of which this Act makes no provision or makes insufficient provision and provision is, in the opinion of the Central Government, necessary. _Members_ **32. Member not to vote on matter in which he is interested.—(1) No member of a Board shall vote** at a meeting of the Board or of any Committee of the Board on any question relating to his own conduct or vote or take part in any discussion on any matter, other than a matter affecting generally the inhabitants of the cantonment, which affects his own pecuniary interest or the valuation of any property in respect of which he is directly or indirectly interested, or of any property of or for which he is a manager or agent. 27 ----- (2) Where any member of the Board present at the meeting of the Board or any committee of the Board believes that the person presiding over such meeting has pecuniary or other interest in any matter under discussion and moves a motion to that effect, the person so presiding— (a) shall not be entitled to vote on such motion, and (b) shall, if such motion is carried, absent himself from the meeting during such discussion. **33. Liability of members.—Every member of a Board shall be liable for the loss, waste or** misapplication of any money or other property belonging to, vested in, or entrusted to the management of, the Board if such loss, waste or misapplication is a direct consequence of his neglect or misconduct while such member; and a suit for compensation for the same may be instituted against him either by the Board or by the Central Government. **34. Removal of members.—(1) The Central Government may remove from a Board any member** thereof, who— (a) becomes or is found to have been at the time of his election or nomination subject to any of the disqualifications specified in sub-section (2) of section 28 or in section 29; or (b) has absented himself for more than three consecutive meetings or three months (whichever is later) of the Board and is unable to explain such absence to the satisfaction of the Board. _Explanation.—In computing the aforesaid period of three consecutive months, no account shall_ be taken of any period of absence with the leave of the Board; or (c) has knowingly contravened the provisions of section 32; or (d) being a legal practitioner, acts or appears on behalf of any other person against the Board in any legal proceeding or against the Government in any such proceeding relating to any matter in which the Board is or has been concerned or acts or appears on behalf of any person in any criminal proceeding instituted by or on behalf of the Board against such person; or (e) has himself done or aided or abetted encroachments and illegal constructions on defence land in contravention of the provisions of this Act and the rules and bye-laws made thereunder. (2) The Central Government may remove from a Board any member who, in the opinion of the Central Government, has so abused in any manner his position as a member of the Board as to render his continuance as a member detrimental to the public interests. (3) The General Officer Commanding-in-Chief, the Command may, on receipt of a report from the Officer Commanding the station remove from a Board any military officer nominated as a member of the Board who is, in the opinion of the Officer Commanding the station, unable to discharge his duties as a member of the Board and has failed to resign his office. (4) No member shall be removed from a Board under sub-section (1) or sub-section (2) of this section unless he has been given a reasonable opportunity of showing cause against his removal. **35. Consequences of removal.—(1) A member removed under clause (b) of sub-section (1) or under** sub-section (3) of section 34 shall, if otherwise qualified, be eligible for re-election or re-nomination. (2) A member removed under clause (c) or clause (d) of sub-section (1) of section 34 shall not be eligible for re-election or nomination for the period during which, but for such removal, he would have continued in office. (3) A member removed under sub-section (2) of section 34 shall not be eligible for re-election or nomination until the expiry of three years from the date of his removal. **36. Member of the Board to be deemed a public servant.—Every member of the Board shall be** deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860) and clause (c) of section 2 of the Prevention of Corruption Act, 1988 (49 of 1988). _Employees_ **37. Disqualification of person as an employee of Board.—(1) No person who has directly or** indirectly by himself or his partner any share or interest in a contract with, by or on behalf of a Board, or in any employment under, by or on behalf of a Board, otherwise than as an employee of the Board, shall become or remain an employee of such Board. 28 ----- (2) An employee of a Board who knowingly acquires or continues to have directly or indirectly by himself or his partner any share or interest in a contract with, by or on behalf of the Board or, in any employment under, by or on behalf of, the Board, otherwise than as an employee of the Board, shall be deemed to have committed an offence under section 168 of the Indian Penal Code (45 of 1860). (3) Nothing in this section shall apply to any share or interest in any contract with, by or on behalf of, or employment under, by or on behalf of a Board if the same is a share in a company contracting with, or employed by, or on behalf of, the Board or is a share or interest acquired or retained with the permission of the General Officer Commanding-in-Chief, the Command in any lease or sale to, or purchase by the Board of land or building or in any agreement for the same. (4) Every person applying for employment as an employee of a Board shall, if he is related by blood or marriage to any member of the Board or to any person not being a lower grade employee, in receipt of remuneration from the Board, notify the fact and the nature of such relationship to the appointing authority before the appointment is made, and if he has failed to do so, his appointment shall be invalid but without prejudice to the validity of anything previously done by him. **38. Cantonment employee to be deemed a public servant.—Every officer or employee, permanent** or temporary of a Board shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860) and clause (c) of section 2 of the Prevention of Corruption Act, 1988 (49 of 1988). _Procedure_ **39. Meetings.—(1) Every Board shall meet at least once in a month to transact its business on such** day as may be fixed by the President and in his absence by the Vice-President, and its notice shall be given in such manner as may be provided in the regulations made by the Board under this Chapter. (2) The President may, whenever he thinks fit, and shall, upon a requisition in writing by not less than one-fourth of the members of the Board, convene a special meeting. (3) Any meeting may be adjourned until the next or any subsequent day, and an adjourned meeting may be further adjourned in like manner but not more than twice except in case of a public emergency. **40. Business to be transacted.—Subject to any regulation made by the Board under this Chapter,** any business may be transacted at any meeting: Provided that no business relating to the imposition, abolition or modification of any tax shall be transacted at a meeting unless notice of the same and of the date fixed there for has been sent to each member not less than seven days before that date. **41. Quorum.—(1) The quorum necessary for the transaction of business at a meeting of the Board** shall be one-half of the number of members of the Board holding the office: Provided that if the number of members of the Board holding office at a particular time is an odd number, the quorum shall be one-half of the number obtained by adding one to the number of such members. (2) If a quorum is not present, the President or in his absence, the Vice-President or in the absence of both, the Member-Secretary shall adjourn the meeting and the business which would have been brought before the original meeting if there had been a quorum present thereat shall be brought before, and may be transacted at, an adjourned meeting, whether there is a quorum present or not. **42. Presiding Officer.—In the absence of—** (a) both the President and the Vice-President from any meeting of a Board in which there is more than one elected member, (b) the President from a meeting of a Board constituted under sub-section (6) of section 12 or sub-section (2) of section 13, the members present shall elect one from among their own members to preside. 29 ----- **43. Minutes.—(1) The minutes of the proceedings of each meeting shall be recorded in a book and** shall be signed by the person presiding over the meeting and the Chief Executive Officer, before the close of the meeting and shall, at such times and in such place as may be fixed by the Board, be open to inspection free of charge by any inhabitant of the cantonment and its authenticated copies may be made available to him on request, at a nominal cost to be decided by the Board. (2) Copies of the minutes shall, as soon as possible after each meeting, be forwarded for information to every Member of the Board, the General Officer Commanding-in-Chief, the Command, the District Magistrate and the Defence Estate Officer and in cantonments where Navy or Air Force stations are located copies of the minutes shall be forwarded for information to the Command Headquarters of the Navy or, as the case may be, the Air Force. **44. Meetings to be public.—Every meeting of a Board shall be open to the public unless in any case** the person presiding over the meeting, for reasons to be recorded in the minutes, otherwise directs. **45. Method of deciding questions.—(1) All questions coming before a meeting shall be decided by** the majority of the votes of the members present and voting. (2) In the case of an quality of votes, the person presiding over the meeting, shall have a second or casting vote. (3) The dissent of any member from any decision of the Board shall, if the member so requests, be entered in the minutes, together with a short statement of the ground for such dissent. **46. Civil area.—(1) The Central Government may, by notification in Official Gazette, declare the** civil area, in a cantonment, which is inhabited largely by civil population to be the civil area for the purposes of this Act. (2) The Central Government may in consultation with the Board undertake, as and when required and shall undertake after every census, a review of the boundaries of the civil area in each cantonment. **47. Committees for civil areas.—(1) Every Board constituted under section 12 in a cantonment shall** appoint a committee consisting of the elected members of the Board, the Health Officer and the Executive Engineer for the administration of the civil area in the cantonment as notified under section 46 of this Act and may delegate its powers and duties to such committee in the manner provided in clause (e) of sub-section (1) of section 48. (2) The Vice-President of the Board shall be the Chairman of the committee appointed under sub-section (1). (3) The powers, duties and functions of the Board under sub-section (1) of section 137, section143, section 147, section 149 and section 262 shall be exercised or discharged in respect of a civil area by the civil area committee: Provided that if the Health Officer dissents from any decision arrived at by the committee under sub-section (1) of section 137, section 143, section 147 and section 149 on health grounds, the matter may be referred to the Board by the President for decision. **48. Power to make regulations.—(1) A Board may make regulations consistent with this Act and** with the rules made thereunder to provide for all or any of the following matters, namely:— (a) the time and place of its meetings; (b) the manner in which notice of the meeting shall be given; (c) the conduct of proceedings at meetings and the adjournments of meetings; (d) the custody of the common seal of the Board and the purposes for which it shall be used; and (e) the appointment of committees for any purpose and the determination of all matters relating to the constitution and procedure of such committees, and the delegation to such committees, subject to any conditions which the Board thinks fit to impose, of any of the powers or duties of the Board under this Act other than a power to make regulations or bye-laws. 30 ----- (2) No regulation made under clause (e) of sub-section (1) shall take effect until it has been approved by the Central Government. (3) No regulation made under this section shall take effect until it has been published in such manner as the Central Government may direct. **49. Joint action with other local authority.—(1) A Board may—** (a) join with any other local authority— (i) in appointing a joint committee for any purpose in which they are jointly interested and in appointing a chairman of such committee; (ii) in delegation to such committee power to frame terms binding on the Board and such other local authority as to the construction and future maintenance of any joint work or to exercise any power which might be exercised by the Board or by such other local authority; and (iii) in making regulations for regulating the proceedings of any such committeer relating to the purposes for which it has been appointed; or (b) with the previous sanction of the General Officer Commanding-in-Chief, the Command, and the State Government concerned, enter into an agreement with any other local authority regarding the levy of any tax or toll whereby the said tax or toll respectively leviable by the Board and by such other local authority may be levied together instead of separately within the limits of the area hereafter in this section referred to as the aggregate area subject to the control of the Board and such other local authority. (2) If any difference of opinion arises between any Board and other local authority acting together under this section, the decision thereon of the Central Government or of an officer appointed by the Central Government in this behalf shall be final. (3) When any agreement such as is referred to in clause (b) of sub-section (1) has been entered into, then— (a) where the agreement relates to octroi or terminal tax or toll, the party to the agreement (the Board, or as the case may be, such other local authority) which is specified in this behalf in the agreement,— (i) shall have the same powers to establish octroi limits and octroi stations and places for the collection of octroi, terminal tax and toll within the aggregate area as it has within the area ordinarily subject to its control; (ii) shall have the same powers of collecting such octroi, terminal tax or toll in the aggregate area and the provisions of any enactment in force relating to the levy of such octroi, terminal tax or toll by it shall apply in the same manner as if the aggregate area were comprised within the area ordinarily subject to its control; (b) the total of the collection of such octroi, tax or toll made in the aggregate area and the costs thereby incurred shall be divided between the cantonment fund and the fund subject to the control of such other local authority, in such proportion, as may have been determined by the agreement. **50. Report on administration.—(1) Every Board shall, as soon as may be after the close of the** financial year and not later than the date fixed in this behalf by the Central Government, submit to the Central Government through the General Officer Commanding-in-Chief, the Command, a report on the administration of the cantonment during the preceding financial year, in such form and containing such details as the Central Government may direct. (2) The comments, if any, of the General Officer Commanding-in-Chief, the Command, on such report shall be communicated by him to the Board which shall be allowed a reasonable time to furnish a reply thereto, and the comments together with the reply, if any, shall be forwarded to the Central Government along with the report. 31 ----- _Control_ **51. Power of Central Government to require production of documents.—The Central** Government or such officer or authority as may be authorised by the Central Government in this behalf may at any time require a Board— (a) to produce any record, correspondence, plan or other document in its possession or under its control; (b) to furnish any return, plan, estimate, statement, account or statistics relating to its proceedings, duties or works; (c) to furnish or obtain and furnish any report. **52. Inspection.—The Central Government or the General Officer Commanding-in-Chief, the** Command or the Director General or the Principal Director, may depute any person in the service of the Government to inspect or examine any department of the office of, or any service or work undertaken by, or thing belonging to, a Board, and to report thereon, and the Board and its officers and employees shall be bound to afford the person so deputed access at all reasonable times to the premises and property of the Board and to all records, accounts and other documents the inspection of which he may consider necessary to enable him to discharge his duties. **53. Power to call for documents.—The General Officer Commanding-in-Chief, the Command or the** Principal Director, may, by order in writing,— (a) call for any book or document in the possession or under the control of the Board; (b) require the Board to furnish such statements, accounts, reports and copies of documents relating to its proceedings, duties or works as he thinks fit. **54. Power to require execution of work, etc.—If, on receipt of any information or report obtained** under section 51 or section 52 or section 53, the Central Government or the General Officer Commanding-in-Chief, the Command or the Director General or the Principal Director is of opinion— (a) that any duty imposed on a Board by or under this Act has not been performed or has been performed in an imperfect, inefficient or unsuitable manner; or (b) that adequate financial provision has not been made for the performance of any such duty, it or he may direct the Board, within such period as it or he thinks fit, to make arrangements to its or his satisfaction for the proper performance of the duty, or as the case may be, to make financial provision to its or his satisfaction for the performance of the duty: Provided that unless in the opinion of the Central Government or the General Officer Commanding-in-Chief, the Command or the Director General or the Principal Director, as the case may be, the immediate execution of such order is necessary, it or he shall, before making any direction under this section, give the Board an opportunity of showing cause why such direction should not be made. **55. Power to provide for enforcement of direction under section 54.—If, within the period fixed** by a direction made under section 54, any action the taking of which has been directed under that section has not been duly taken, the Central Government or the General Officer Commanding-in-Chief, the Command or the Director General, or the Principal Director, as the case may be, may make arrangements for the taking of such action, and may direct that all expenses connected therewith shall be defrayed out of the cantonment fund. **56. Power to override decision of Board.—(1) If the President dissents from any decision of the** Board which he considers prejudicial to the health, welfare, discipline or security of the Forces in the cantonment, he may, for reasons to be recorded in the minutes, by order in writing, direct the suspension of action thereon for any period not exceeding one month and, if he does so, shall forthwith refer the matter to the General Officer Commanding-in-Chief, the Command. (2) If the District Magistrate considers any decision of a Board to be prejudicial to the public health, safety or convenience, he may, after giving notice in writing of his intention to the Board, refer the matter 32 ----- to the Central Government, and pending the disposal of the reference to the Central Government no action shall be taken on the decision. (3) If any Magistrate who is a member of a Board, being present at a meeting, dissents from any decision which he considers prejudicial to the public health, safety or convenience, he may, for reasons to be recorded in the minutes and after giving notice in writing of his intention to the President, report the matter to the District Magistrate; and the President shall, on receipt of such notice, direct the suspension of action on the decision for a period sufficient to allow of a communication being made to the District Magistrate and of his taking proceedings as provided in sub-section (2). (4) If the Chief Executive Officer considers any decision of the Board taken at a meeting, to be in contravention of the provisions of this Act, rules, regulations or bye-laws made there under and the general guidelines issued by the Central Government from time to time in this regard, he may, for reasons to be recorded in writing and after informing the President in this behalf, forthwith refer the matter to the Principal Director who shall if considered appropriate direct the suspension of action on the said decision for a period not exceeding one month. (5) The Principal Director shall, for reasons to be recorded in writing on the reference made under sub-section (4), refer the matter to the General Officer Commanding-in-Chief, the Command along with recommendation on whether or not the said decision of the Board should be revoked and inform the matter to Director General Defence Estates. **57. Power of Central Government to review.—The Central Government may, at any time, review** any decision or order of the Board or the General Officer Commanding-in-Chief, the Command, and pass such orders thereon as it may deem fit: Provided that where it is proposed to modify a decision or order of the Board reasonable opportunity shall be given to the Board to show cause why the decision or order in question should not be modified. **58. Power of General Officer Commanding-in-Chief, the Command, on reference under section** **56 or otherwise.—(1) The General Officer Commanding-in-Chief, the Command, may at any time—** (a) direct that any matter or any specific proposal other than one which has been referred to the Central Government under sub-section (2) of section 56 be considered or reconsidered by the Board; or (b) direct the suspension, for such period as may be stated in the order, of action on any decision of a Board, other than a decision which has been referred to him under sub-section (1) of section 56, and thereafter cancel the suspension or after giving the Board a reasonable opportunity of show in cause why such direction should not be made, direct that the decision shall not be carried into effect or that it shall be carried into effect with such modifications as he may specify. (2) When any decision of a Board has been referred to him under sub-sections (1) and (4) of section 56, the General Officer Commanding-in-Chief, the Command, may, by order in writing,— (a) cancel the order given by the President directing the suspension of action; or (b) extend the duration of the order for such period as he thinks fit; or (c) after giving the Board a reasonable opportunity of showing cause why such direction should not be made, direct that the decision shall not be carried into effect or that it shall be carried into effect by the Board with such modifications as he may specify. **59. Power of Central Government on a reference made under section 56.—(1) When any** decision of a Board has been referred to the Central Government under sub-section (2) of section 56, the Central Government may, after consulting the General Officer Commanding-in-Chief, the Command, by order in writing,— (a) direct that no action be taken on the decision; or (b) direct that the decision be carried into effect either without modification or with such modifications as it may specify. 33 ----- **60. Supersession of Board.—(1) If, in the opinion of the Central Government, any Board is not** competent to perform or persistently makes default in the performance of the duties imposed on it by or under this Act or otherwise by law, or exceeds or abuses its powers, the Central Government may by an order published, together with the statement of the reasons there for, in the Official Gazette, declare the Board to be incompetent or in default or to have exceeded or abused its powers, as the case may be, and supersede it for such period as may be specified in the order: Provided that no Board shall be superseded unless a reasonable opportunity has been given to it to show cause against the supersession. (2) When a Board is superseded by an order under sub-section (1)— (a) all members of the Board shall, on such date as may be specified in the order, vacate their offices as such members but without prejudice to their eligibility for election or nomination under clause (c); (b) during the supersession of the Board, all powers and duties conferred and imposed upon the Board by or under this Act shall be exercised and performed by the Officer Commanding the station, or by such officer as may be authorised by the Central Government, subject to such reservation if any, as the Central Government may prescribe in this behalf; and (c) before the expiry of the period of supersession elections shall be held and nominations made for the purpose of reconstituting the Board. _Validity of proceedings_ **61. Validity of proceedings, etc.—(1) No act or proceeding of a Board or of any committee of a** Board shall be invalid by reason only of the existence of a vacancy in the Board or committee. (2) No disqualification or defect in the election, nomination or appointment of a person acting as the President or a member of a Board or of any such committee shall vitiate any act or proceeding of the Board or committee if the majority of the persons present at the time of the act being done or the proceeding being taken were duly qualified members thereof. (3) Any document or minutes which purport to be the record of the proceedings of a Board or any committee of a Board shall, if made and signed substantially in the manner prescribed for the making and signing of the record of such proceedings, be presumed to be a correct record of the proceedings of a duly convened meeting, held by a duly constituted Board or committee, as the case may be, whereof all the members were duly qualified. CHAPTER IV DUTIES AND DISCRETIONARY FUNCTIONS OF BOARDS **62. Duties of Board.—It shall be the duty of every Board, so far as the funds at its disposal permit, to** make reasonable provision within the cantonment for— (i) lighting streets and other public places; (ii) watering streets and other public places; (iii) cleansing streets, public places and drains, abating nuisances and removing noxious vegetation; (iv) regulating offensive, dangerous or obnoxious trades, callings and practices; (v) removing, on the ground of public safety, health or convenience, undesirable obstructions and projections in streets and other public places; (vi) securing or removing dangerous buildings and places; (vii) acquiring, maintaining, changing and regulating places for the disposal of the dead; _(viii) constructing, altering and maintaining streets, culverts, bridges, causeways, markets,_ slaughter-houses, latrines, privies, urinals, drains, drainage works and sewerage works and regulating their use; 34 ----- (ix) planting and maintaining trees on roadsides and other public places; (x) providing or arranging for a sufficient supply of potable water, where such supply does not exist, guarding from pollution water used for human consumption, and preventing polluted water from being so used; (xi) registering births and deaths; (xii) preventing and checking spread of dangerous diseases; establishing and maintaining a system of public vaccination and inoculation for the said objective; (xiii) establishing and maintaining or supporting public hospitals, maternity and child welfare centres and dispensaries, and providing public medical relief; (xiv) establishing and maintaining or assisting primary schools; (xv) rendering assistance in extinguishing fires, and protecting light and property when fire occurs; (xvi) maintaining and developing the value of property vested in, or entrusted to, the management of the Board; (xvii) establishing and maintaining civil defence services; (xviii) preparing and implementing town planning schemes; (xix) preparing and implementing plans for economic development and social justice; (xx) naming and numbering of streets and premises; (xxi) according or refusing permission to erect or re-erect building; (xxii) organising, promoting or supporting cultural and sports activities; (xxiii) celebrating Independence Day and Republic Day and incurring expenditure thereon; (xxiv) fulfilling any other obligation imposed upon it by or under this Act or any other law for the time being in force. **63. Power to manage property.—A Board may, subject to any conditions imposed by the Central** Government, manage any property entrusted to its management by the Central Government on such terms as to the sharing of rents and profits accruing from such property as may be determined by rule made under section 346. **64. Discretionary functions of Board.—(1) A Board may, within the cantonment, make provision** for— (i) laying out in areas, whether previously built upon or not, new streets, and acquiring land for that purpose and for the construction of buildings, and compounds of buildings, to about on such streets; (ii) constructing, establishing or maintaining public parks, gardens, offices, dairies, bathing or washing places, drinking fountains, tanks, wells and other works of public utility; (iii) reclaiming unhealthy localities; (iv) furthering educational objects by measures other than the establishment and maintenance of primary schools; (v) setting up or supporting higher schools, colleges and vocational, professional and special education; (vi) constructing, and maintaining works and structures, including rainwater harvesting, for providing supply of water for public and private purposes; (vii) constituting, maintaining and managing supply and distribution of electricity, including by exploiting non-conventional energy sources, to public and private premises; 35 ----- (viii) taking a census and granting rewards for information which may tend to secure the correct registration of vital statistics; (ix) making a survey; (x) giving relief on the occurrence of local epidemics, floods, famines or other natural calamities by the establishment or maintenance of relief work or otherwise; (xi) securing or assisting to secure suitable places for the carrying on of any offensive dangerous or obnoxious trade, calling or occupation; (xii) establishing and maintaining a farm or other place for the disposal of sewage; (xiii) constructing, subsidising or guaranteeing tramways or other means of locomotion, and electric lighting or electric power work; (xiv) establishing and maintaining cattle pounds; (xv) arranging for civic reception with prior approval of the Officer Commanding the Station; (xvi) providing housing accommodation for any class of inhabitants; (xvii) conservation and maintenance of ancient and historical monuments, archaeological sites and remains or place of public importance in the cantonment; (xviii) developing land resources under the management of the Board; (xix) preparing and implementing group housing schemes; (xx) establishing and undertaking remunerative projects; (xxi) developing small-scale and cottage industries; (xxii) developing expertise in different areas of urban governance and local self-government to and able to provide consultancy to other Municipal and Development Authorities; (xxiii) adopting any measure, other than a measure specified in section 62 or in the foregoing provisions of this section likely to promote the safety, health or convenience of the inhabitants of the cantonment; (xxiv) establishing and maintaining or supporting libraries, museums, art galleries, botanical or zoological collections; (xxv) establishing and maintaining or supporting stadia, gymnasia, akharas and places for sports and games; (xxvi) establishing theatres and cinemas; (xxvii) organising and managing fairs and exhibitions; (xxviii) constructing and maintaining:— (a) rest-houses; (b) poor-houses; (c) infirmaries; (d) children's home; (e) houses for deaf and dumb and for disabled and handicapped children; (f ) shelters for destitute and disabled persons; (g) asylums for persons of unsound mind; (h) old age homes; (i) working women's hostels; 36 ----- (xxix) establishing and managing chemical or bacteriological laboratories for the examination or analysis of water, food and drugs for the detection of diseases or research connected with the public health or medical relief; (xxx) providing relief to destitute and disabled persons; (xxxi) establishing and maintaining veterinary hospitals; (xxxii) constructing and maintaining warehouses and godowns; (xxxiii) constructing and managing garages, sheds and stands for vehicles and cattle sheds; (xxxiv) constructing and managing community halls and convention halls; (xxxv) holding seminars, workshops, public debates, and similar activities particularly on issues and rules and regulations of civic importance. _Explanation.—For the purposes of clause (xvii)—_ (a) “conservation” means the supervision, management and maintenance of a place to retain its historical, architectural, aesthetic or cultural significance or of environment and includes the protection, improvement, preservation, restoration, reconstruction and adoption or a combination of more than one of these activities, and the use of such place in a way that ensures the social as well as economic benefits; (b) “ancient and historical monuments, archaeological sites and remains or place of public importance” include buildings, arte facts, structures, areas, or precincts of historical or aesthetical or educational or scientific or cultural or environmental significance, and those natural features of environmental signifcance or scenic beauty, as may be declared by the Board. (2) A Board may, either within or outside the cantonment, make provision for the doing of anything on which expenditure is declared by the Central Government, or by the Board with the sanction of the Central Government, to be an appropriate charge on the cantonment fund or the cantonment development fund. **65. Power of expenditure of educational, health and other purposes outside the cantonment.—A** Board may make provision subject to availability of funds for— (i) educational objects in a cantonment; (ii) the objectives of public health and medical care; (iii) works relating to water-supply, drainage and lighting; (iv) the preservation, improvement and upgradation of environment, outside the cantonment, if it is satisfied that the interests of the residents of the cantonment will be served thereby. CHPTER V TAXES AND FEES _Imposition of taxation_ **66. General power of taxation.—(1) The Board shall, with the previous sanction of the Central** Government, impose the following taxes for the purposes of this Act:— (a) property tax; and (b) tax on trades, professions callings and employments. (2) In addition to the taxes specified in sub-section (1) the Board may, for the purposes of this Act, impose any tax which under any enactment for the time being in force may be imposed in any municipality in the State in which the cantonment is situated: 37 ----- Provided that the Board shall revise every five years, the rates of taxes imposed under sub-sections (1) and (2): Provided further that the Board shall not abolish any tax imposed under this section or vary it to the Board's financial disadvantage without the prior sanction of the Central Government and the tax mentioned in sub-section (2) shall not exceed the ceiling prescribed in this behalf by clause (2) of article 276 of the Constitution. (3) The taxes specified in sub-sections (1) and (2) shall be imposed, assessed and collected in accordance with the provisions of this Act, rules and the bye-laws made thereunder. (4) Any tax imposed under this section shall take effect from the date of its notification in the Official Gazette or where any later date is specified in this behalf in the notification, from such later date. **67. Charging of fees.—The Board shall, for the purposes of this Act, charge the following fees,** namely:— (a) licence fee on vehicles and animals; (b) licence fee on advertisements other than advertisements in newspapers; (c) fee relating to maintenance of property records; (d) processing fee on buildings payable along with application for sanction of the building plan; (e) licence fee on entry of vehicles; (f) betterment fee on the increase in land value caused by the execution of any development work; and (g) such other fee which the Board may by regulation specify: Provided that the fee charged under clause (g) of this section shall not be less than the cost incurred by the Board for or in connection with the specific service to which the fee relates. **68. Norms of property tax.—Save as otherwise provided in this Act, the property tax shall be levied** on lands and buildings in the cantonment and shall consist of not less than ten and not more than thirty per cent. of the annual rateable value of lands and buildings: Provided that the Board may, when fixing the rate at which the property tax shall be levied during any year, determine that the rate leviable in respect of lands and buildings or portions of lands and buildings in which any particular class of trade or business is carried on shall be higher than the rate determined in respect of other lands and buildings or portions of other lands and buildings by an amount not exceeding one half of the rate so fixed: Provided further that the tax may be levied on graduated scale, if the Board so determines. _Explanation.—Where any portion of a land or building is liable to a higher rate of the tax such_ portion shall be deemed to be a separate property for the purpose of municipal taxation alone. **69. Framing of preliminary proposals.—When a resolution has been passed by the Board** proposing to impose a tax under section 66, the Board shall in the manner prescribed in section 319 publish a notice specifying— (a) the tax which it is proposed to impose; (b) the persons or classes of persons to be made liable and the description of the property or other taxable thing or circumstance in respect of which they are to be made liable; and (c) the rate at which the tax is to be levied. **70. Objections and disposal thereof.—(1) Any inhabitant of the cantonment may, within thirty days** from the publication of the notice under section 69, submit to the Board an objection in writing to all or any of the proposals contained therein and the Board shall take such objection into consideration and pass orders there on by special resolution. 38 ----- (2) Unless the Board decides to abandon its proposals contained in the notice published under section 69, it shall submit to the Central Government through the General Officer Commanding-in-Chief, the Command, all such proposals along with the objections, if any, received in connection there with together with its opinion thereon and any modifications proposed in accordance with such opinion and the notice published under the said section. **71. Imposition of tax.—The Central Government may authorise the Board to impose the tax either in** the original form or, if any objection has been submitted, in that form or any such modified form as it thinks fit. **72. Power of Central Government to issue directions to the Board.—(1) Where the Central** Government is of opinion that for securing adequate financial provision for the efficient discharge of the duties and functions of a Board it is necessary so to do, it may issue directions to the Board requiring it to impose within the cantonment area any tax which it is empowered under this Act to impose and which is not already imposed within the said area or to enhance any existing tax in such a manner or to such an extent as the Central Government considers fit and the Board shall, in accordance with the direction, forthwith impose or enhance such tax in accordance with the provisions of this Chapter: Provided that— (a) no such directions shall be issued without giving the Board and the inhabitants of the cantonment area, an opportunity of showing cause why such directions should not be issued; (b) the Central Government shall take into consideration any objection which the Board or any inhabitant of the cantonment area may make against the imposition or enhancement of such tax; (c) it shall not be lawful for the Board to modify or abolish such tax when imposed or enhanced without the sanction of the Central Government. (2) The Central Government may, at any time, cancel or modify any direction issued by it under sub-section (1) with effect from such date as may be specified in the direction and on and from the date so specified the imposition or enhancement of such tax, shall cease or be modified accordingly. **73. Definition of “annual rateable value”.—For the purposes of this Chapter, “annual rateable** value” means— (a) in the case of hotels, colleges, schools, hospitals, factories and any other buildings which the Chief Executive Officer decides to assess under this clause, one-twentieth of the sum obtained by adding the estimated present cost of erecting the building to the estimated value of the land appertaining thereto; and (b) in the case of building or land not assessed under clause (a), the gross annual rent for which such building exclusive of furniture or machinery therein or such land is actually let or, where the building or land is not let or in the opinion of the Chief Executive Officer is let for a sum less than its fair letting value, might reasonably be expected to let from year to year: Provided that, where the annual rateable value of any building is, by reason of exceptional circumstances, in the opinion of the President Cantonment Board, excessive if calculated in the aforesaid manner, the President Cantonment Board may fix the annual rateable value at any less amount which appears to him to be just. **74. Incidence of taxation.—(1) Save as otherwise expressly provided in the notification imposing** the tax, every tax assessed on the annual rateable value of buildings or lands or of both shall be leviable primarily upon the actual occupier of the property upon which the said tax is assessed, if he is the owner of the buildings or land or holds them on a building or other lease granted by or on behalf of the Government or the Board or on a building lease from any person. (2) In any other case, the tax shall be primarily leviable as follows, namely :— (a) if the property is let, upon the lessor; (b) if the property is sub-let, upon the superior lessor; (c) if the property is unlet, upon the person in whom the right to let the same vests. 39 ----- (3) The liability of the several owners of any building which is, or purports to be, severally owned in parts or flats or rooms or separate tenements for the payment of such tax or any installment thereof payable during the period of such ownership shall be joint and several. (4) On failure to recover any sum due on account of such tax from the person primarily liable, these may be recovered from the occupier of any part of the buildings or lands in respect of which the tax is due such portion of the sum due as bears to the whole amount due the same ratio which the rent annually payable by such occupier bears to the aggregate amount of rent so payable in respect of the whole of the said buildings or lands, or to the aggregate amount of the letting value thereof, if any, stated in the authenticated assessment list. (5) An occupier who makes any payment for which he is not primarily liable under this section shall, in the absence of any contract to the contrary, be entitled to be reimbursed by the person primarily liable for the payment, and, if so entitled, may deduct the amount so paid from the amount of any rent from time to time becoming due from him to such person. _Assessment list_ **75. Assessment list.—When a tax assessed on the annual rateable value of buildings or lands or both** is imposed, the Chief Executive Officer shall cause an assessment list of all buildings or lands in the cantonment, or of both, as the case may be, to be prepared in such form and in such manner as the Central Government may by rule prescribe. **76. Revision of assessment list.—(1) The Chief Executive Officer shall, at the same time, give public** notice of a date, not less than one month thereafter, when he shall proceed to consider the valuation and assessments entered in the assessment list, and, in all cases in which any property is for the first time assessed or the assessment is increased shall also give written notice thereof to the owner and to any lessee or occupier of the property. (2) Any objection to a valuation or assessment shall be made in writing to the Chief Executive Officer before the date fixed in the notice, and shall state in what respect the valuation or assessment is disputed, and all objections so made shall be recorded in a register to be kept for the purpose by the Chief Executive Officer. (3) The objections shall be inquired into and investigated, and the persons making them shall be allowed an opportunity of being heard either in person or by authorised agent by the Chief Executive Officer. **77. Authentication of assessment list.—(1) When all objections made under section 76 have been** disposed of, and the revision of the valuation and assessment has been completed, the assessment list shall be authenticated by the signatures of the Chief Executive Officer and the President Cantonment Board, who shall, certify that except in the cases if any, in which amendments have been made as shown therein no valid objection has been made to the annual rateable value or any other matters entered in the said list: Provided that whenever the General Officer Commanding-in-Chief, the Command or the Principal Director comes to the conclusion that the assessment lists or any entries therein have not been correctly prepared and are prejudicial to the interests of the Board or of the Central Government, they may _suo moto re-open the said assessment and issue such directions as deemed fit._ (2) The assessment list so authenticated shall be deposited in the office of the Board, and shall there be open, free of charge, during office hours to all owners lessees and occupiers of property comprised therein or the authorised agents of such persons, and a public notice that it is so open shall forthwith be published. **78. Evidential value of assessment list.—Subject to such alterations as may thereafter be made in** the assessment list under the provisions of this Chapter and to the result of any appeal made thereunder, the entries in the assessment list authenticated and deposited as provided in section 77 shall be accepted as conclusive evidence— (a) for the purposes of assessing any tax imposed under this Act, of the annual rateable value or other valuation of all buildings and lands to which such entries respectively refer; and 40 ----- (b) for the purposes of any tax imposed on buildings or lands, of the amount of each such tax leviable thereon during the year to which such list relates. **79. Amendment of assessment list.—(1) The Chief Executive Officer may after obtaining the** approval of President Cantonment Board amend the assessment list at any time— (a) by inserting or omitting the name of any person whose name ought to have been or ought to be inserted or omitted; or (b) by inserting or omitting any property which ought to have been or ought to be inserted or omitted; or (c) by altering the assessment on any property which has been erroneously valued or assessed through fraud, accident or mistake whether on the part of administration or assessees; or (d) by revaluing or re-assessing any property the value of which has been increased; or (e) in the case of a tax payable by an occupier, by changing the name of the occupier: Provided that no person shall by reason of any such amendment become liable to pay any tax or increase of tax in respect of any period prior to the commencement of the year in which the assessment is made. (2) Before making any amendment under sub-section (1) the Chief Executive Officer shall give to any person affected by the amendment, notice of not less than one month that he proposes to make the amendment. (3) Any person interested in any such amendment may tender an objection to the Chief Executive Officer in writing before the time fixed in the notice, and shall be allowed an opportunity of being heard in support of the same in person or by authorised agent. **80. Preparation of new assessment list.—The Chief Executive Officer shall prepare a new** assessment list at least once in every three years, and for this purpose the provisions of sections 75 to 79 shall apply in like manner as they apply for the purpose of the preparation of an assessment list for the first time. **81. Notice of transfers.—(1) Whenever the title of any person primarily liable for the payment of a** tax on the annual rateable value of any building or land to or over such building or land is transferred, the person whose title is transferred and the person to whom the same is transferred shall, within three months after the execution of the instrument of transfer or after its registration, if it is registered, or after the transfer is effected, if no instrument is executed, give notice of such transfer to the Chief Executive Officer. (2) In the event of the death of any person primarily liable as aforesaid, the person on whom the title of the deceased devolves shall give notice of such devolution to the Chief Executive Officer within six months from the death of the deceased. (3) The notice to be given under this section shall be in such form as may be determined by rules made under section 346, and the transferee or other person on whom the title devolves shall, if so required, be bound to produce before the Chief Executive Officer any documents evidencing the transfer or devolution. (4) Every person who makes a transfer as aforesaid without giving such notice to the Chief Executive Officer shall continue liable for the payment of all taxes assessed on the property transferred until he gives notice or until the transfer has been recorded in the registers of the Board, but nothing in this section shall be held to affect the liability of the transferee for the payment of the said tax. (5) The Chief Executive Officer shall record every transfer or devolution of title notified to him under sub-section (1) or sub-section (2) in the assessment list and other tax registers of the Board. (6) Any failure to comply with the provisions contained in sub-sections (1) to (3) shall be punishable with fine which may extend to ten thousand rupees. 41 ----- **82. Notice of erection of buildings.—(1) If any building is erected or re-erected within the meaning** of section 235, the owner shall give notice thereof to the Chief Executive Officer within thirty days from the date of its completion or occupation, whichever is earlier. (2) Any person failing to give the notice required by sub-section (1) shall be punishable with fine which may extend to five thousand or ten times the amount of the tax payable on the said building, as erected or re-erected, as the case may be, in respect of a period of three months, whichever is greater. _Remission and refund_ **83. Demolition, etc., of buildings.—If any building is wholly or partly demolished or destroyed or** otherwise deprived of value, the Board may, on the application in writing of the owner or occupier, remit or refund such portion of any tax assessed on the annual rateable value thereof as it thinks fit but no remission or refund shall take effect in respect of any period commencing more than two months before the delivery of such application. **84. Remission of tax.—In a cantonment when any building or land has remained vacant and** unproductive of rent for sixty or more consecutive days the Chief Executive Officer shall remit or refund, as the case may be, one-half of such portion of any tax assessed on the annual rateable value thereof as may be proportionate to the number of days during which the said building or land has remained vacant and unproductive of rent: Provided that in any cantonment which the Central Government, by notification in the Official Gazette, has declared to be a hill cantonment and in respect of which the Central Government by the same or a like notification has declared a portion of the year to be the season for the cantonment— (a) when any building or land is leased for occupation through the season only, but the rent charged is the full annual rent, no remission or refund shall be admissible under this section in respect of anytime outside the season during which the building or land remains vacant; (b) when such building or land has remained vacant and unproductive of rent, in respect of any time, not being less than sixty consecutive days during which within the season, the Chief Executive Officer shall remit or refund one-half of such portion of any tax assessed on the annual rateable value thereof as bears to the whole of the tax so assessed the same proportion as the number of days during which the building or land has remained vacant and unproductive of rent bears to the total length of the season. **85. Power to require entry in assessment list of details of buildings.—(1) For the purpose of** obtaining a partial remission or refund of tax, the owner of a building composed of separate tenements may request the Chief Executive Officer at the time of the assessment of the building, to enter in the assessment list, in addition to the annual rateable value of the whole building, a note recording in detail the annual rateable value of each separate tenement. (2) When any tenement, the annual value of which has been thus separately recorded, has remained vacant and unproductive of rent for sixty or more consecutive days one-half of such portion of any tax assessed on the annual rateable value of the whole building shall be remitted or refunded as would have been remitted or refunded if the tenement had been separately assessed. **86. Notice to be given of the circumstances in which remission or refund is claimed.—No** remission or refund under section 84 or section 85 shall be made unless notice in writing of the fact that the building, land or tenement has become vacant and unproductive of rent, has been given to the Chief Executive Officer and no remission or refund shall take effect in respect of any period commencing more than fifteen days before the delivery of such notice. **87. What buildings, etc., are to be deemed vacant.—(1) For the purposes of sections 84 and 85 no** building, tenement or land shall be deemed vacant if maintained as a resort or town or country house or be deemed unproductive of rent if let to a tenant who has a continuing right of occupation thereof, whether he is in actual occupation or not. 42 ----- (2) The burden of proving all facts entitling any person to claim relief under section 83 or section 84 or section 85 shall be upon him. **88. Notice to be given of every occupation of vacant building or house.—(1) The owner of any** building, tenement or land in respect of which a remission or refund of tax has been given under section 84 or section 85 shall give notice of the re-occupation of such building, tenement or land within fifteen days of such re-occupation. (2) Any owner failing to give the notice required by sub-section (1) shall be punishable with fine which shall not be less than twice the amount of the tax payable on such building, tenement or land in respect of the period during which it has been re-occupied and which may extend to two thousand five hundred rupees, or to ten times the amount of the said tax, whichever sum is greater. _Charge on immovable property_ **89. Tax on buildings and land to be a charge thereon.—A tax assessed on the annual rateable** value of any building or land shall, subject to the prior payment of the land-revenue, if any, due to the Government thereon, be a first charge upon the building or land. _Octroi, terminal tax and toll_ **90. Inspection of imported goods, octroi, terminal tax and toll, etc.—Every person bringing or** receiving any goods, vehicles or animals within the limits of any cantonment in which octroi or terminal tax or toll is leviable shall, when so required by an officer duly authorised by the Chief Executive Officer in this behalf, so far as may be necessary for ascertaining the amount of tax chargeable— (a) permit that officer to inspect, examine or weigh such goods, vehicles or animals; and (b) communicate to that officer any information, and exhibit to him any bill, in voice or document of a like nature, which such person may possess relating to such goods, vehicles or animals. **91. Power to seize, etc.—(1) Any person who takes or attempts to take past any octroi station or any** other place appointed within a cantonment for the collection of octroi, terminal tax or toll any goods, vehicles or animals, on account of which octroi, terminal tax or toll is leviable and thereby evades, or attempts to evade, the payment of such octroi, terminal tax or toll and any person who abets any such evasion or attempt at evasion, shall be punishable with fine which may extend either to ten times the value of such octroi, terminal tax or toll, or to two thousand five hundred rupees, whichever is greater, and which shall not be less than twice the value of such octroi, terminal tax or toll, as the case may be. (2) In case of non-payment of any octroi or terminal tax or toll on demand, the officer empowered to collect the same may seize any goods, vehicles or animals on which the octroi, terminal tax or toll is chargeable or any part or number thereof which is of sufficient value to satisfy the demand and shall give a receipt specifying the items seized. (3) The Chief Executive Officer, or an officer of the Board authorised by him, after the lapse of five days from the seizure, and after the issue of a notice in writing to the person in whose possession the goods, vehicles or animals were at the time of seizure, fixing the time and place of sale, may cause the property so seized, or so much thereof as may be necessary, to be sold by auction to satisfy the demand and meet expenses occasioned by the seizure, custody and safe thereof, unless the demand and expenses are in the meantime paid: Provided that the Chief Executive Officer may, in any case, order that any article of a perishable nature which cannot be kept for five days without serious risk of damage, or which cannot be kept safe at a cost which, together with the amount of octroi, terminal tax or toll, is likely to exceed its value, shall be sold after the lapse of such shorter times as he may, having regard to the nature of the article, think proper. 43 ----- (4) If, at any time before the sale has begun, the person whose property has been seized tenders to the Chief Executive Officer the amount of all expenses incurred and of the octroi, terminal tax or toll, the Chief Executive Officer shall release the property seized. (5) The surplus, if any, of the sale proceeds shall be credited to the cantonment fund, and shall, on application made to the Chief Executive Officer within six months after the sale, be paid to the person in whose possession the property was at the time of seizure, and, if no such application is made, shall become the property of the Board. **92. Lease of octroi, terminal tax or toll.—It shall be lawful for the Chief Executive Officer, with the** previous sanction of the Board to lease the collection of any octroi, terminal tax or toll for any period not exceeding one year; and the lessee and all persons employed by him in the management and collection of the octroi, terminal tax or toll shall, in respect thereof,— (a) be bound by any orders made by the Chief Executive Officer for their guidance; (b) have such powers exercisable by officers or employees of the Board under this Act as the Board may confer upon them; and (c) be entitled to the same remedies and be subject to the same responsibilities as if they were employed by the Board for the management and collection of the octroi, terminal tax or toll, as the case may be: Provided that no article distrained may be sold except under the orders of the Chief Executive Officer. _Appeals_ **93. Appeals against assessment.—(1) An appeal against the assessment or levy of, or against the** refusal to refund, any tax under this Act shall lie to the District Court. (2) If the District Court, on the hearing of an appeal under this section, entertains reasonable doubt on any question as to the liability to, or the principle of assessment of, a tax, the Court may, either on its own motion or on the application of the appellant, draw up statement of the facts of the case and the point on which doubt is entertained, and refer the statement with its opinion on the point for the decision of the High Court. (3) On a reference being made under sub-section (2), the subsequent proceedings in the case shall be, as nearly as may be, in conformity with the rules relating to references to the High Court contained in order XLVI of the First Schedule to the Code of Civil Procedure, 1908 (5 of 1908). _Explanation.—For the purposes of this section and sections 94, 95, 96, 97 and 102, “District Court”,_ in relation to a cantonment, means the Principal Civil Court of original jurisdiction having jurisdiction over the area in which that cantonment is situated, and includes such other Civil Court having jurisdiction over that area as the Central Government may, by notification in the Official Gazette, specify in this behalf, in consultation with the High Court having jurisdiction over that area. **94. Costs of appeal.—In every appeal the costs shall be in the discretion of the District Court hearing** the appeal. **95. Recovery of costs from Board.—(1) If the Board fails to pay any cost awarded to an appellant** within ten days after the date of the order for payment thereof, the District Court awarding the costs may order the person having the custody of the balance of the cantonment fund to pay the amount. (2) Where the appellant fails to pay any costs awarded to the Board within ten days after the date of the order for payment thereof, the same shall be recoverable by the Board in the same manner as moneys recoverable by the Board under section 324. **96. Conditions of right to appeal.—No appeal shall be heard or determined under this Chapter** unless— (a) the appeal is, in the case of a tax assessed on the annual rateable value of buildings or lands or both, brought within thirty days next after the date of the authentication of the assessment list under section 77 (exclusive of the time required for obtaining a copy of the relevant entries therein), or, as 44 ----- the case may be, within thirty days of the date on which an amendment is finally made under section 79 and in the case of any other tax, within thirty days next after the date of the receipt of the notice of assessment or of alteration of assessment or, if no notice has been given, within thirty days next after the date of the presentation of the first bill in respect thereof: Provided that an appeal may be admitted after the expiration of the period prescribed there for by this section if the appellant satisfies the District Court before whom the appeal is preferred that he had sufficient cause for not preferring it within that period; (b) the amount including the assessed tax or duty, if any, in dispute in the appeal shall be deposited by the appellant every year on or before the due date in the office of the Board till the appeal is decided by the District Court. **97. Finality of appellate orders.—The order of a District Court confirming, setting aside or** modifying an order in respect of any valuation or assessment or liability to assessment or taxation shall be final: Provided that it shall be lawful for the District Court, upon application or on its own motion, to review any order passed by it in appeal if application in this behalf is made within three months from the date of the original order. _Payment and recovery of taxes_ **98. Time and manner of payment of taxes.—Save as otherwise expressly provided under this Act,** any tax imposed under the provisions of this Act shall be payable on such dates and in such manner, as the Chief Executive Officer may, by public notice, direct. **99. Public notice for taxes due.—(1) When any tax has become due the Chief Executive Officer** shall cause a separate bill and public notice to be issued as well as published in a local newspaper specifying the tax and the period for which it is due for payment. (2) The tax shall become due for payment from the date of issue of public notice under sub-section (1) above. (3) Any non-receipt of a Bill by a person shall not be a cause for non-payment of the tax notified under sub-section (1). **100. Notice of demand.—(1) If the amount of tax for which public notice has been issued or a bill** has been presented is not paid within thirty days from the issue of public notice or presentation of the bill, as the case may be, the Chief Executive Officer may cause to be served upon the person liable for the payment of the same a notice of demand in the form set forth in Schedule I. (2) For every notice of demand which the Chief Executive Officer causes to be served on any person under this section, a fee of such amount, not exceeding two hundred rupees as shall in each case be fixed by the Chief Executive Officer, shall be payable by the said person and shall be included in the costs of recovery. **101. Recovery of tax.—(1) If the person liable for the payment of any tax does not, within thirty** days from the service of the notice of demand, pay the amount due, or show sufficient cause for non-payment of the same to the satisfaction of the Chief Executive Officer, such sum, with all costs of recovery, may be recovered under a warrant, issued in the form set forth in Schedule II, by distress and sale of the movable property or attachment and sale of the immovable property of the defaulter: Provided that the Chief Executive Officer shall not recover any sum the liability for which has been remitted on appeal under this Chapter: Provided further that the sale of any immovable property attached under this sub-section shall not be made save under the orders of the Board. (2) Every warrant issued under this section shall be signed by the Chief Executive Officer. **102. Interest payable on taxes due.—(1) If a person on whom a notice of demand has been served** under section 100, does not, within thirty days from the service of such notice, pay the sum demanded in 45 ----- the notice, he shall be liable to pay by way of interest, in addition to the sum and other charges due one per cent., of the sum due for each complete month from the date of expiry of the period of thirty days as aforesaid. (2) The amount of interest shall be recoverable in the same manner as moneys recoverable by the Board under section 324. Provided that— (a) where no appeal has been preferred, the Chief Executive officer with the previous sanction of the Board; and (b) in any other case, the District Court hearing the appeal under section 93, may remit the whole or any part of the interest payable in respect of any period. **103. Distress.—(1) It shall be lawful for any official of the Board to whom a warrant issued under** section 101 is addressed to distrain, wherever it may be found in the cantonment, any movable property of or standing timber, growing crops or grass belonging to the person therein named as defaulter, subject to the following conditions, exceptions and exemption, namely:— (a) the following property shall not be distrained— (i) the necessary wearing apparel and bedding of the defaulter or of his wife or of his children; (ii) tools of artisans; (iii) books of account; or (iv) when the defaulter is an agriculturist, his implements of husbandry, seed-grain, and such cattle as may be necessary to enable the defaulter to earn his livelihood; (b) the distress shall not be excessive, that is to say, the property distrained shall be as nearly as possible equal in value to the amount recoverable under the warrant, and if any property has been distrained which, in the opinion of the Chief Executive Officer, should not have been distrained, it shall forthwith be returned. (2) The person charged with the execution of a warrant of distress shall forthwith make an inventory of the property which he seizes under such warrant, and shall, at the same time, give a written notice in the form in Schedule III to the person in possession thereof at the time of seizure that the said property will be sold as therein mentioned. **104. Disposal of distrained property.—(1) When the property seized is subject to speedy and** natural decay, or when the expense of keeping it in custody is, when added to the amount to be recovered, likely to exceed its value, the Chief Executive Officer shall give notice to the person in whose possession the property was at the time of seizure that it will be sold at once, and shall sell it accordingly by public auction unless the amount mentioned in the warrant is forthwith paid. (2) If the warrant is not in the meantime suspended by the Chief Executive Officer, or discharged, the property seized shall, after the expiry of the period named in the notice served under sub-section (2) of section 103, be sold by public auction by order of the Chief Executive Officer. (3) For every distraint made under this Chapter a fee of such amount, not exceeding two hundred rupees, as shall in each case be fixed by the Chief Executive Officer shall be charged, and the said fee shall be included in the costs of recovery. **105. Attachment and sale of immovable property.—(1) When a warrant is issued for the** attachment and sale of immovable property, the attachment shall be made by an order prohibiting the defaulter from transferring or charging the property in any way, and all persons from taking any benefit from such transfer or charge, and declaring that such property would be sold unless the amount of tax due with all costs of recovery is paid in the office of the Board within fifteen days from the date of attachment. (2) An order under sub-section (1) shall be displayed at some place on or adjacent to such property by pasting the same conspicuously and by publishing the same in a newspaper having circulation in the area 46 ----- in which the property is situated or by any other means or mode as may be considered appropriate by the Chief Executive Officer. (3) Any transfer of or charge on the property attached or any interest thereon made without the written permission of the Chief Executive Officer shall be void as against all claims of the Board enforceable under the attachment. (4) Where the sum due to the Board with the cost incurred by the Board in the sale of the property, including publication of notice in newspaper and a sum equal to five per cent. of the purchase money for payment to the purchaser is paid by the defaulter, before the confirmation of the sale under sub-section (5), the attachment, if any, of the immovable property shall be deemed to have been removed. (5) After the sale of the property by auction as aforesaid, it shall be confirmed in writing by the Chief Executive Officer who shall put the person declared to be the purchaser in possession of the same and shall grant him a certificate to the effect that he has purchased the property to which the certificate refers. (6) The Central Government may make rules for— (a) regulating the manner of execution of warrants for the attachment and sale of immovable property; (b) charging of fees for the attachment and sale of immovable property, to be included in the cost of recovery of the tax due; (c) summary determination of any claim made by any person other than the person liable for the payment of any tax, in respect of any property attached in execution of warrant under this section. **106. Recovery from a person about to leave cantonment and refund of surplus sale proceeds, if** **any.—(1) If the Chief Executive Officer has reason to believe that any person from whom any sum is due** or is about to become due on account of any tax is about to move from the cantonment, he may direct the immediate payment by such person of the sum so due or about to become due, and cause a notice of demand for the same to be served on such person. (2) If, on the service of such notice, such person does not forthwith pay the sum so due or about to become due, the amount shall be leviable by distress and sale of movable property or attachment and sale of immovable property in the manner hereinbefore provided in this Chapter, and the warrant of such distress and sale or attachment and sale may be issued and executed without any delay. (3) The surplus of the sale proceeds arising out of section 104, section 105 and this section, if any, shall immediately after the sale of the property, be credited to the cantonment fund, and the notice of such credit shall immediately be given to the person whose property has been sold, or to his legal representative and, if such money is claimed, within a period of one year from the date of notice, a refund thereof shall be made to the said person or his representative. (4) Any surplus of the sale proceeds not claimed within one year as aforesaid shall be the property of the Board. **107. Power to institute suit for recovery.—Instead of proceeding against a defaulter by distress and** sale of movable property or attachment and sale of immovable property as hereinbefore provided in this Chapter, or after a defaulter has been so proceeded against unsuccessfully or with only partial success, any sum due or the balance of any sum due, as the case may be, from such defaulter on account of a tax may be recovered from him by a suit in any court of competent jurisdiction. _Special provisions relating to taxation, etc_ **108. Board to be a Municipality for taxation purposes.—A Board shall be deemed to be a** municipal committee for the purposes of taxation as per the Municipal Taxation Act, 1881 (11 of 1881). **109. Payment to be made to a Board as service charges by Central Government or State** **Government.—The Central or the State Government, as the case may be, shall pay to a Board annually** service charges for providing collective municipal services or development work in a cantonment where 47 ----- the Central or the State Government properties are situated as worked out by the Board based on the guidelines issued in this behalf by the Central Government or the State Government. **110. Power to make special provision for conservancy in certain cases.—A Board may make** special provisions for the cleansing of any factory, hotel, club or group of buildings or lands used for any one purpose and under one management, and may fix a special rate and the dates and other conditions for periodical payment thereof, which shall be determined by a written agreement with the person liable for payment of the conservancy or scavenging tax in respect of such factory, hotel, club or group of buildings or lands: Provided that, in fixing the amount, proper regard shall be had to the probable cost to the Board of the services to be rendered. **111. Exemption in case of buildings.—(1) When in pursuance of section 110, a Board has fixed a** special rate for the cleansing of any factory, hotel, club or group of buildings or lands, such premises shall be exempted from the payment of conservancy or scavenging tax imposed in the cantonment. (2) The following buildings and lands shall be exempt from any property tax other than tax imposed to cover the cost of specific services rendered by the Board, namely:— (a) places set apart for public worship and either actually so used or used for no other purpose and rendering services free of cost without deriving any income whatsoever; (b) buildings used for educational purposes, public libraries, playgrounds and dharamshalas which are open to the public and from which no income is derived; (c) hospitals and dispensaries maintained wholly by charitable contributions; (d) burning and burial grounds, not being the property of the Government or a Board, which are controlled under the provisions of this Act; (e) buildings or lands vested in a Board; and (f) any buildings or lands, or portion of such buildings or lands, which are the property of the Government. **112. General Power of exemption.—The Central Government may, by notification in the Official** Gazette, exempt, either wholly or in part from the payment of any tax imposed under this Act, any person, or class of persons or any property or goods or class of property or goods. **113. Exemption of poor persons.—A Board may exempt, for a period not exceeding one year at a** time from the payment of any tax, or any portion of a tax imposed under this Act, any person who in its opinion is by reason of poverty unable to pay the same. **114. Composition.—(1) The Board may, with the previous sanction of the General Commanding** Officer-in-Chief, the Command, allow any person to compound for any tax. (2) Every sum due by reason of the composition of a tax under sub-section (1) shall be recoverable as if it were a tax. **115. Irrecoverable debts.—The Board may write off any sum due on account of any tax or rate or of** the costs of recovering any tax or rate if such sum is, in its opinion, irrecoverable: Provided that, where the sum written off in favour of any one person exceeds two thousand and five hundred rupees, the sanction of the General Officer Commanding-in-Chief, the Command shall be first obtained. **116. Obligation to disclose liability.—(1) The Chief Executive Officer, may, by written notice, call** upon any inhabitant of the cantonment to furnish such information as may be necessary for the purpose of ascertaining— (a) whether such inhabitant is liable to pay, or has correctly paid, any tax imposed under this Act; (b) at what amount he should be assessed; or 48 ----- (c) the annual value of the building or land which he occupies and the name and address of the owner or lessee thereof. (2) If any person, when called upon under sub-section (1) to furnish information, neglects to furnish it within the period specified in this behalf by the Chief Executive Officer or furnishes information which is not true to the best of his knowledge or belief, he shall be punishable with fine which may extend to five thousand rupees and shall also be liable to be assessed at such amount on account of tax as the Chief Executive Officer may deem proper, and the assessment so made shall, subject to the provisions of this Act, be final. **117. Immaterial error not to affect liability.—No assessment and no charge or demand on account** of any tax or fee shall be impeached or affected by reason only of any mistake in the name of any person liable to pay such tax or fee, or in the description of any property or thing, or any mistake in the amount of the assessment, charge or demand, if the directions contained in this Act and the rules and bye-laws made thereunder have in substance and effect been complied with; but any person who sustains any special damage by reason of any such mistake shall be entitled to recover such compensation for the same, as the Board may decide. **118. Distraint not to be invalid by reason of immaterial defect.—No distress levied or attachment** made under this Chapter shall be deemed unlawful, nor shall any person making the same be deemed a trespasser, on account only of any defect of form in the notice of demand, warrant of distress or attachment and sale or other proceeding relating thereto; nor shall any such person be deemed a trespasser _ab initio on account of any irregularity afterwards committed by him; but any person who sustains any_ special damage by reason of any such irregularity shall be entitled to recover such compensation for the same, as the Board may decide. CHAPTER VI CANTONMENT FUND AND PROPERTY _Cantonment fund and cantonment development fund_ **119. Cantonment fund and cantonment development fund.—(1) There shall be formed for every** cantonment a cantonment fund and there shall be placed to the credit thereof the following sums, namely:— (a) the balance if any, of the cantonment fund formed for the cantonment under the Cantonments Act, 1924 (2 of 1924); (b) all sums received by or on behalf of the Board. (2) There shall also be formed for every cantonment, a cantonment development fund and there shall be placed to the credit, thereof the following sums, namely:— (i) any sum received from the Central Government or the Government of any State by way of contributions, grants, subsidies or by any other way for the implementation of any specific scheme or for the execution of any specific project; (ii) any sum received from any individual or association of individuals by way of gift or deposit; and (iii) any sum raised or borrowed under section 121 for the execution of specific development projects. **120. Custody of cantonment fund and cantonment development fund.—(1) The cantonment fund** and the cantonment development fund shall be kept in separate accounts which shall be maintained in State Bank of India or any of its subsidiary banks or any nationalised bank or any scheduled commercial bank having its branch either in the cantonment or in the municipal area adjoining the cantonment. _Explanation.—In this section,—_ (i) “nationalised bank” means corresponding new bank specified in the First Schedule to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) or the Banking Companies (Acquisition and Transfer of Undertakings) Act,1980 (40 of 1980); 49 ----- (ii) “State Bank of India” means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955); (iii) “subsidiary bank” means a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959). (2) The Chief Executive Officer may with the previous sanction of the President Cantonment Board may invest any portion of cantonment fund or cantonment development fund in securities of Central Government or in such securities, including fixed deposits in banks in the best interest of the Board and may dispose of such investments or vary them for others of a like nature. (3) The income resulting from any fixed deposit or from any such securities as is referred to in sub-section (2) or from the proceeds of the sale of any such security shall be credited to the cantonment fund or, as the case may be, the cantonment development fund. (4) Every action taken under sub-sections (2) and (3) may be subsequently brought to the next meeting of the Board. **121. Power of Board to borrow money.—A Board may from time to time by a resolution passed in** this behalf borrow money from another Board, on mutually agreeable terms any sum of money which may be required for the schemes or projects covered under this Act. _property_ **122. Property.—Subject to any special reservation made by the Central Government all property of** the nature hereinafter in this section specified which has been acquired or provided or is maintained by a Board shall vest in and belong to that Board, and shall be under its direction, management and control, that is to say,— (a) all markets, slaughter-houses, manure and night-soil depots, and buildings of every description; (b) all water-works for the supply, storage or distribution of water for public purposes and all bridges, buildings, engines, materials, and things connected there with or appertaining thereto; (c) all sewers, drains, culverts and water-courses, and all works, materials and things appertaining thereto; (d) all dust, dirt, dung, ashes, refuse, animal matter, filth and rubbish of every kind, and dead bodies of animals collected by the Board from the streets, houses, privies, sewers, cesspools or elsewhere, or deposited in places appointed by the Board for such purposes; (e) all lamps and lamp-posts and apparatus connected therewith or appertaining thereto; (f) all lands or other property transferred to the Board by the Central or a State Government, or by gift, purchase or otherwise for local public purposes; and (g) all streets and the pavements, stones and other materials thereof, and also all trees, erections, materials, implements, and things existing on or appertaining to streets. **123. Application of cantonment fund, cantonment development fund and property.—The** cantonment fund, cantonment development fund and all property vested in a Board shall be applied for the purposes, whether express or implied, for which, by or under this Act or any other law for the time being in force, powers are conferred or duties or obligations are imposed upon the Board: Provided that the Board shall not incur any expenditure for acquiring or renting land beyond the limits of the cantonment or for constructing any work beyond such limits except— (a) with the sanction of the Central Government, and (b) on such terms and conditions as the Central Government may impose: Provided further that priority shall be given in the order hereinafter set forth to the following liabilities and obligations of a Board, that is to say,— (a) to the liabilities and obligations arising from a trust legally imposed upon or accepted by the Board; 50 ----- (b) to the repayment of, and the payment of interest on, any loan incurred under the provisions of the Local Authorities Loan Act, 1914 (9 of 1914) or under the provisions of this Act. (c) to the payment of establishment charges; (d) to the payment of any sum the payment of which is expressly required by the provisions of this Act or any rule or bye-law made thereunder. **124. Acquisition of immovable property.—When there is any hindrance to the permanent or** temporary acquisition upon payment of any land required by a Board for the purposes of this Act, the Central Government may, on the recommendation of the Board, procure the acquisition there of under the provisions of the Land Acquisition Act, 1894 (1 of 1894), and on payment by the Board of the compensation awarded under that Act and of the charges incurred by the Government in connection with the proceedings, the land shall vest in the Board. **125. Power to make rules regarding cantonment fund, cantonment develpment fund and** **property.—The Central Government may make rules consistent with this Act to provide for all or any of** the following matters, namely:— (a) the conditions on which property may be acquired by Boards or on which property vested in a Board may be transferred by sale, mortgage, lease, exchange or otherwise; and (b) any other matter relating to the cantonment fund or cantonment development fund or cantonment property, in respect of which no provision or insufficient provision is made by or under this Act and provision is, in the opinion of the Central Government necessary. CHAPTER VII CONTRACTS **126. Contracts by whom to be executed.—Subject to the provisions of this Chapter, every Board** shall be competent to enter into and perform any contract necessary for the purposes of this Act. **127. Sanction.—(1) Every contract—** (a) for which budget provision does not exist, or (b) which involves a value or amount exceeding rupees fifty thousand shall require the sanction of the Board. (2) Every contract other than a contract such as is referred to in sub-section (1) shall be sanctioned by the Chief Executive Officer on behalf of the Board. **128. Execution of contract.—(1) Every contract made by or on behalf of a Board, the value or** amount of which exceeds fifty thousand rupees, shall be in writing, and every such contract shall, be signed by two members, of whom the President or the Vice-President shall be one, and be countersigned by the Chief Executive Officer and be sealed with the common seal of the Board. (2) Where the Chief Executive Officer executes a contract on behalf of the Board sanctioned under sub-section (2) of section 127, he shall submit a report, on the execution of the contract, to the Board at its next meeting. **129. Contracts improperly executed not to be binding on a Board.—If any contract is executed by** or on behalf of a Board, otherwise than in conformity with the provisions of this Chapter, it shall not be binding on the Board. CHAPTER VIII SANITATION AND THE PREVENTION AND TREATMENT OF DISEASE _Sanitary authorities_ **130. Responsibility for sanitation.—The following officers shall, for the purposes of sanitation,** have control over, and be responsible for maintaining in a sanitary condition, those parts of a cantonment, respectively, which are specified in the case of each, that is to say:— (a) the Officer Commanding the army in the cantonment—all buildings and lands which are occupied or used for army purposes; 51 ----- (b) the Officer Commanding the navy in the cantonment—all buildings and lands which are occupied or used for naval purposes; (c) the Officer Commanding the air force in the cantonment—all buildings and lands which are occupied or used for air force purposes; (d) the Officer Commanding the station in the cantonment—all buildings and lands, occupied or used for any defence purpose, other than those referred to in clauses (a), (b) and (c); (e) the head of any civil department or railway administration occupying as such any part of the cantonment—all buildings and lands in his charge as head of that department or administration; (f) the head of any establishment or installation of the Defence Research and Development Organisation in the cantonment—buildings and lands which are occupied or used for the purposes of the Defence Research and Development Organisation in the cantonment; (g) the head of a Public Sector Undertaking—the buildings and lands belonging to such undertaking in the cantonment; (h) the Chief Executive Officer—the buildings and lands in the civil area of the cantonment and all other buildings and lands not covered in clauses (a) to (g) above. **131. General duties of Health Officer.—(1) The Health Officer shall be the Advisor to the Board in** all matters relating to sanitation and exercise a general sanitary supervision over the cantonment and shall periodically submit a report along with his recommendations at least once in every month to the Board. (2) The Assistant Health Officer shall perform such duties in connection with the sanitation of the cantonment as are, subject to the control of the Board, allotted to him by the Health Officer. _Conservancy and sanitation_ **132. Public latrines, urinals and conservancy establishments.—All public latrines and urinals** provided or maintained by a Board shall be so constructed as to provide separate compartments for each sex and the compartments so constructed shall be made accessible to and barrier free for the persons with disabilities and shall be provided with all necessary conservancy establishments, and shall regularly be cleansed and kept in proper order. **133. Duty of occupier to collect and deposit rubbish, etc.—(1) It shall be the duty of an occupier of** a building or land— (a) to make adequate arrangements for the house scavenging of the building or land; (b) to provide receptacles of the type and in the manner prescribed by the Chief Executive Officer for the collection therein of all filth, rubbish and other offensive matter from such building or land and to keep such receptacle in good condition and repair; (c) to cause all filth, rubbish and other offensive matter collected in receptacles and to be removed and deposited in the public receptacles, depots or places provided or appointed under sub-section (1) of section 135. (2) For the purpose of this section and section 134, “house scavenging” means the removal of filth, rubbish or other offensive matter from a privy, latrine, urinal, drain, cesspool or other common receptacle for such matter. **134. Power of Board to undertake private conservancy arrangement.—(1) On the application or** with the consent of the occupier of any building or land, or, where the occupier of any building or land fails to make arrangements to the satisfaction of the Chief Executive Officer for the matters referred to in this section, without such consent, and after giving notice in writing to the occupier, the Chief Executive Officer may undertake the house scavenging of any building or land in the cantonment for such period as he thinks fit on such terms as he may specify in this behalf. (2) Where the Chief Executive Officer has undertaken the duties referred to in this section, all matter removed in the performance of such duties shall be the property of the Board. 52 ----- **135. Deposits and disposal of rubbish, etc.—(1) Every Board shall provide or appoint, in proper** and convenient situations, public receptacles, depots or places for the temporary deposit or disposal of household rubbish, offensive matter, car cases of dead animals and sewage. (2) The Chief Executive Officer may, by public notice, issue directions as to the time at which, the manner in which, and the conditions subject to which, any matter referred to in sub-section (1) may be removed along a street or may be deposited or otherwise disposed of. (3) All matter deposited in receptacles, depots or places provided or appointed under this section shall be the property of the Board. **136. Cesspools, receptacles, for filth, etc.—The Chief Executive Officer of any cantonment may, by** notice in writing— (a) require any person having the control whether as owner, lessee or occupier of any land or building in the cantonment— (i) to close any cesspool appertaining to the land or building which, in the opinion of the Chief Executive Officer, is a nuisance, or (ii) to keep in a clean condition, in such manner as may be prescribed by notice, any receptacle for filth or sewage accumulating on the land or in a building, or (iii) to prevent the water of any private latrine, urinal, sink or bathroom or any other offensive matter, from soaking, draining or flowing, or being put, from the land or building upon any street or other public place, or into any water-course or into any drain not intended for the purpose, or (iv) to collect and deposit for removal by the conservancy establishment of the Board, within such time and in such receptacle or place, as may be specified in the notice, any offensive matter or rubbish which such person has allowed to accumulate or remain under, in or on such building or land; or (b) require any person to desist from making or altering any drain leading into a public drain; or (c) require any person having the control of a drain in the cantonment to cleanse, purify, repair or alter the same, or otherwise put it in good order, within such time as may be specified in the notice. **137. Filling up of tank, etc.—(1) Where any well, tank, cistern, reservoir container, desert cooler or** any other, receptacle or place in the cantonment where water is stored or accumulated, whether within any private enclosure or not, is in such a condition as to create a nuisance or, in the opinion of the Health Officer, is or is likely to be a breeding place for mosquitoes, the Board may, by notice in writing, require the owner, lessee or occupier thereof within such period as may be specified in the notice, to fill up or cover the well, cistern, reservoir or receptacle, or to fill up the tank, or to drain off or remove the water, as the case may be. (2) The Board may from time to time take such measures as are necessary in its opinion for prevention of breeding of mosquitoes, insects or any bacterial or viral carriers of disease in public places under the control or management of the Board. (3) The Board may, if it thinks fit, meet the whole or any portion of the expenses incurred in execution of work mentioned in sub-sections (1) and (2) of this section. **138. Provision of latrines, etc.—The Chief Executive Officer may, by notice in writing, require the** owner or lessee of any building or land in the cantonment to provide, in such manner as may be specified in the notice, any latrine, urinal, cesspool, dust-bin or other receptacle for filth, sewage, or rubbish, or any additional latrine, urinal, cesspool or other receptacle as aforesaid, which should, in his opinion, be provided for the building or land. **139. Sanitation in factories, etc.—Every person employing, whether on behalf of the Government or** otherwise, more than ten workmen or labourers, and every person managing or having control of a market, school, theatre or other place of public resort, in a cantonment shall give notice of the fact to the Chief Executive Officer, and shall provide such latrines and urinals, and shall employ such number of 53 ----- sweepers, as the Chief Executive Officer thinks fit, and shall cause the latrines and urinals to be kept clean and in proper order: Provided that nothing in this section shall apply in the case of a factory to which the Factories Act, 1948 (63 of 1948) applies. **140. Private latrines.—Subject to the provisions of the Employment of Manual Scavenger and** Construction of Dry Latrine (Prohibition) Act, 1993 (46 of 1993), the Chief Executive Officer or any official of the Board authorised by him may, by notice in writing,— (a) require the owner or other person having the control of any private latrine, or, urinal in the cantonment not to put the same to public use; or (b) where any plan for the construction of private latrines or urinals has been approved, and copies thereof may be obtained free of charge on application— (i) require any person repairing or constructing any private latrine or urinal not to allow the same to be used until it has been inspected by an official of the Board authorised by the Chief Executive Officer, or under the direction of the Health Officer and approved by him as conforming with such plan; or (ii) require any person having control of any private latrine or urinal to re-build or alter the same in accordance with such plan; or (c) require the owner or other person having the control of any such private latrine or urinal which, in the opinion of the Chief Executive Officer, constitutes a nuisance, to remove the latrine or urinal; or (d) require any person having the control whether as owner, lessee or occupier of any land or building in the cantonment— (i) to have any latrines provided for the same shut out by a sufficient roof and wall or fence from the view of persons passing by or dwelling in the neighborhood, or (ii) to cleanse in such manner as the Chief Executive Officer may specify in the notice any latrine or urinal belonging to the land or building; (e) require any person being the owner and having the control of any drain in the cantonment to provide, within ten days from the service of the notice, such covering as may be specified in the notice. **141. Special provisions for collection of rubbish and solid waste management.—(1) All solid** waste material generated in a cantonment shall be removed by the Board and be brought to the compost sites or sanitary land sites or trenching sites earmarked by it for the purpose. (2) The Board shall also devise schemes for collecting rubbish and garbage from each house in the cantonment and may, if considers necessary, associate residents' welfare associations or such other non governmental organisation for this purpose. (3) As far as possible the Board shall devise appropriate system to ensure that all compostable or bio-degradable waste in the cantonment is recycled and used for generating manure, bio-gas or any other form of energy. **142. Removal of congested buildings.—(1) Where it appears to a Board that any block of buildings** in the cantonment is in an unhealthy condition by reason of the manner in which the buildings are crowded together, or of the narrowness or closeness of the street, or of the want of proper drainage or ventilation, or of the impracticability of cleansing the buildings or other similar cause, it may cause the block to be inspected by a committee consisting of— (a) the Health Officer, (b) the Civil Surgeon of the district or, if his services are not available, some other medical officer in the service of the Government, (c) the Executive Engineer or a person deputed by the Executive Engineer in this behalf, and 54 ----- (d) two non-official members of the Board. (2) The committee shall make a report in writing to the Board regarding the sanitary condition of the block, and, if it considers that the condition thereof is likely to cause risk of disease to the inhabitants of the building or of the neighbourhood or otherwise to endanger the public health, it shall clearly indicate on a plan verified by the Executive Engineer or the person deputed by him to serve on the committee, the buildings which should in its opinion wholly or in part be removed in order to abate the unhealthy condition of the block. (3) If, upon receipt of such report, the Board is of opinion that all or any buildings indicated should be removed, it may, by notice in writing, require the owners thereof to remove them: Provided that the Board shall make compensation as it thinks fit to the owners for any buildings so removed which have been erected under proper authority: Provided further that the Board may if it considers it equitable in the circumstances so to do pay to the owners such sum as it thinks fit as compensation for any buildings so removed which have not been erected under proper authority. (4) For the purposes of this section “buildings” includes enclosure, walls and fences appertaining to buildings. **143. Overcrowding of dwelling houses.—(1) Where it appears to a Board that any building or part** of a building in the cantonment which is used as a dwelling house is so overcrowded as to endanger the health of the inmates thereof, it may, after such inquiry as it thinks fit, by notice in writing require the owner or occupier of the building or part thereof, as the case may be, within such time not being less than one month as may be specified in the notice, to abate the overcrowding of the same by reducing the number of lodgers, tenants, or other inmates to such number as may be specified in the notice. (2) Any person who fails, without reasonable cause, to comply with a requisition made upon him under sub-section (1) shall be punishable with fine which may extend to two thousand five hundred rupees, and, in the case of a continuing offence, to an additional fine which may extend to two hundred fifty rupees for everyday after the first during which the failure has continued. **144. Power to require repair or alteration of building.—(1) Where any building in a cantonment is** so ill-constructed or dilapidated as to be, in the opinion of the Board, in an insanitary state, the Board may, by notice in writing, require the owner, within such time as may be specified in the notice, to execute such repairs or to make such alterations as it thinks necessary for the purpose of removing such defects. (2) A copy of every notice issued under sub-section (1) shall be conspicuously pasted on the building to which it relates. (3) A notice issued under sub-section (1) shall be deemed to have been complied with, if the owner of the building to which it relates has, instead of executing the repairs or making the alterations directed by the notice, removed the building. **145. Power to require land or building to be cleansed.—(1) If any building or land, whether** tenantable or otherwise, is— (i) in an insanitary, filthy or unwholesome state; or (ii) in the opinion of the Chief Executive Officer, a nuisance to persons residing in the neighbourhood; or (iii) overgrown with prickly-pear or rank and noisome vegetation the Chief Executive Officer may, by notice in writing, require the owner, lessee or occupier of such building or land to clean, lime-wash internally or externally, clear, or otherwise put such building or land in a proper state within such period as may be specified in the notice. (2) Any person who fails to comply with the notice issued under sub-section (1) shall be punishable with fine which may extend to five thousand rupees, and, in the case of a continuing offence, with an additional fine which may extend to two hundred fifty rupees for each day after the first during which the offence continues. 55 ----- **146. Prohibition in respect of air pollutant.—No owner, occupier, lessee or any other occupant of** the premises shall allow or cause to be allowed any air pollutant above the standards, laid down under clause (g) of sub-section (1) of section 17 of the Air (Prevention and Control of Pollution) Act, 1981 (14 of 1981). **147. Power to order disuse of house.—If a Board is satisfied that any building or part of a building** in the cantonment which is intended for or used as a dwelling place is unfit for human habitation, it may cause a notice to be pasted on some conspicuous part of the building prohibiting the owner or occupier thereof from using the building or room for human habitation, or allowing it to be so used, until it has been rendered fit for such use to the satisfaction of the Board. **148. Removal of noxious vegetation.—The Chief Executive Officer may, by notice in writing,** require the owner, lessee, or occupier of any land in the cantonment to clear away and remove any thick or noxious vegetation or undergrowth which appears to him to be injurious to health or offensive to persons residing in the neighbourhood. **149. Agriculture and irrigation.—Where, in the opinion of a Board, the cultivation in the** cantonment of any description of crop or the use therein of any kind of manure or the irrigation of any land therein in any specified manner is likely to be injurious to the health of persons dwelling in the neighbourhood, the Board may, by public notice, prohibit such cultivation, use or irrigation after such date as may be specified in the notice, or may, by a like notice, direct that it shall be carried out subject to such conditions as the Board thinks fit: Provided that if, when a notice is issued under this section, any land to which it relates has been lawfully prepared for cultivation or any crop is sown therein or is standing there on, the Board shall, if it directs that the notice is to take effect on a date earlier than that by which the crop would ordinarily be sown or reaped, as the case may be, make compensation to all persons interested in the land or crop for the loss, if any, incurred by them respectively by reason of compliance with the notice. _Burial and burning grounds_ **150. Power to call for information regarding burial and burning grounds.—The Chief Executive** Officer may, by notice in writing, require the owner or person in-charge of any burial or burning ground in the cantonment to supply such information as may be specified in the notice concerning the condition, management or position of such ground. **151. Permission for use of new burial or burning ground.—(1) No place in a cantonment which** has not been used as a burial or burning ground before the commencement of this Act shall be so used without the permission in writing of the Board. (2) Such permission may be granted subject to any conditions which the Board thinks fit to impose for the purpose of preventing annoyance to, or danger to the health of, persons residing in the neighbourhood. **152. Power to require closing of burial or burning ground.—(1) Where a Board, after making or** causing to be made local inquiry, is of opinion that any burial or burning ground in the cantonment has become offensive to, or dangerous to the health of, persons living in the neighbourhood, it may, with the previous sanction of the Central Government by notice in writing, require the owner or person in charge of such ground to close the same from such date as may be specified in the notice. (2) Where the Central Government sanctions the issue of any notice under sub-section (1) it shall declare the conditions on which the burial or burning ground may be re-opened, and a copy of such declaration shall be annexed to the notice. (3) Where the Central Government sanctions the issues of any such notice, it shall require a new burial or burning ground to be provided at the expense of the cantonment fund, or, if the community concerned is willing to provide a new burial or burning ground, the Central Government shall require a grant to be made from the cantonment fund towards the cost of the same. 56 ----- (4) No corpse shall be buried or burnt in any burial or burning ground in respect of which a notice issued under this section is for the time being in force. **153. Exemption from operation of sections 150 to 152.—The provisions of sections 150, 151 and** 152 shall not apply in the case of any burial ground which is for the time being managed by or on behalf of the Government. **154. Removal of corpses.—The Board may, by public notice, prescribe routes in the cantonment by** which alone corpses may be removed to burial or burning grounds. _Prevention of infectious, contagious or communicable diseases_ **155. Obligation concerning infectious, contagious or communicable diseases.—(1) Any person** being in charge of, or in attendance, whether as a medical practitioner or otherwise, upon any person in a cantonment whom he knows or has reason to believe to be suffering from a contagious, communicable or infectious disease, or being the owner, lessee or occupier of any building in a cantonment in which he knows that any person is so suffering, shall forthwith give information to the Board respecting the existence of such disease. (2) No person shall— (a) knowing that he is suffering from a contagious, communicable or an infectious disease, expose other persons to the risk of infection by his presence or conduct in any public street or public place; (b) having the care of a person whom he knows to be suffering from a contagious, communicable or an infectious disease cause or permit that person to expose other persons to the risk of infection by his presence or conduct in any such street or place as aforesaid; (c) place or cause to be placed in a dustbin or other receptacle for the deposit of rubbish any matter which he knows or has reason to believe to have been exposed to infection from a contagious, communicable or an infectious disease and which has not been disinfected properly; (d) throw or cause to be thrown into any latrine or urinal any matter which he knows or has reason to believe to have been exposed to infection from a contagious, communicable or an infectious disease and which has not been disinfected properly. (3) Nothing contained in sub-section (1) or sub-section (2) shall apply in the case of venereal disease where the person suffering there from is under specific and adequate medical treatment and is by reason of his habits and conditions of life and residence unlikely to spread the disease. (4) Whoever— (a) fails to give information or gives false information to the Board respecting the existence of such disease as is referred to in sub-section (1), or (b) contravenes the provisions of sub-section (2), shall be punishable with fine which may extend to one thousand rupees: Provided that no person shall be punishable for failure to give information if he had reasonable cause to believe that the information had already been duly given. **156. [Blood Bank.]—Omitted by the Jan Vishwas (Amendment of Provisions) Act, 2023 (18 of 2023),** _s. 2 and Schedule (w.e.f. 2-11-2023)._ **157. Special measures incase of outbreak of infectious or epidemic diseases.—(1) In the event of** a cantonment being visited or threatened by an outbreak of any infectious or contagious disease among the inhabitants thereof or of any epidemic disease among any animals therein, the Officer Commanding the Station, if he thinks that the provisions of this Act or of any law for the time being in force in the cantonment are insufficient for the purpose, may, with the previous sanction of the Central Government— (a) take such special measures, and 57 ----- (b) by public notice, make such temporary regulations to be observed by the public or by any class or section of the public, as he thinks necessary to prevent the outbreak or the spread of the disease: Provided that where in the opinion of the Officer Commanding the Station, immediate measures are necessary, he may take action without such sanction as aforesaid and, if he does so, shall forthwith report such action to the Central Government. (2) Whoever commits a breach of any temporary regulation made under sub-section (1) shall be deemed to have committed an offence under section 188 of the Indian Penal Code (45 of 1860). **158. Power to require names of dairyman's customers.—Where it is certified to the Chief** Executive Officer by a medical practitioner that the outbreak or spread of any infectious or contagious disease in the cantonment is, in the opinion of such medical practitioner, attributable to the milk supplied by any dairyman, the Chief Executive Officer may, by notice in writing, require the dairyman, with in such time as may be specified in the notice, to furnish him with a full and complete list of the names and addresses of all his customers within the cantonment, or to give him such information as will enable him to trace the persons to whom the dairyman has sold milk. **159. Power to require names of a washerman's customers.—Where it is certified to the Chief** Executive Officer by the Health Officer that it is desirable, with a view to prevent the spread of any infectious or contagious disease in the cantonment, that the Health Officer should be furnished with a list of the customers of any washerman, the Chief Executive Officer may, by notice in writing, require the washerman, within a time to be specified in the notice, to furnish the Health Officer with a full and complete list of the names and addresses of all owners within the cantonment of clothes and other articles which the washerman washes or has washed during the six weeks immediately preceding the date of the notice. _Explanation.—For the purposes of this section, the expression “washerman” shall mean an individual,_ body corporate, association of persons engaged in washing clothes in a cantonment. **160. Power to require names of patients or customers of a medical practitioner or paramedical** **workers.—Where it is certified to the Chief Executive Officer by the Health Officer or a doctor in the** employment of the Board that there is apprehension of the outbreak or spreading of any infectious or contagious or communicable disease in the cantonment because of use of contaminated needles, syringes or any other such equipment by a medical practitioner or by any paramedical worker, the Chief Executive Officer may, by notice in writing, require the medical practitioner or the paramedical worker, within such time as may be specified in the notice, to furnish him with a full and complete list of the names and addresses of all his customers or patients within the cantonment, or to give him such information as will enable him to trace the persons whom the medical practitioner or the paramedical worker has attended to or treated in the six weeks preceding the date of issuing the notice. **161. Report after inspection of dairy or washerman or medical practitioner's place of** **business.—Where, after inspection the Health Officer is of opinion that any infectious, contagious or** communicable disease is caused or is likely to arise in the cantonment from the consumption of the milk supplied from a dairy or from the washing of clothes or other articles in any place, or from any process employed by a washerman, or from use of contaminated needles, syringes or other such equipment by a medical practitioner or any paramedical staff, he shall report the matter to the Chief Executive Officer. **162. Action on report submitted by Health Officer.—Upon receipt of a report submitted by the** Health Officer under section 161, the Chief Executive Officer may, by notice in writing,— (a) prohibit the supply of milk from the dairy until the notice has been withdrawn; or (b) prohibit the washerman from washing clothes or other articles in any such place or by any such process as aforesaid until the notice has been withdrawn or unless he uses such place in such manner, or washes by process, as the Chief Executive Officer may direct in the notice; or (c) prohibit the medical practitioner or the paramedical worker from using any such needles, syringes or other such equipment unless the notice is withdrawn or rectification as may be required in the notice is carried out. 58 ----- **163. Examination of milk, washed clothes or needles, syringes, etc.—The Health Officer or a** doctor in the employment of the Board may take possession of any milk, clothes or other articles which are or have recently been in the possession of any dairyman on whom a notice has been served under section 158, or of any clothes or other articles which are or have recently been in the possession of any washerman, on whom a notice has been served under section 159, or any needles, syringes or such other equipment which are or have recently been in the possession of the medical practitioner or paramedical worker to whom a notice under section 160 has been issued and may subject the same or cause the same to be subjected to such chemical or other process as he may think necessary; and the Board shall pay from the cantonment fund all the costs of the process and shall also pay to the owner of the milk, clothes or other articles such sum as compensation for any loss occasioned by such process as may appear to it to be reasonable. **164. Contamination of public conveyance.—Whoever in a cantonment—** (a) uses a public conveyance while suffering from an infectious or contagious disease, or (b) uses a public conveyance for the carriage of a person who is suffering from any such disease, or (c) uses a public conveyance for the carriage of the corpse of a person who has died from any such disease, shall be bound to take proper precautions against the communication of the disease to other persons using or who may there after use the conveyance and to notify such use to the owner, driver or person in charge of the conveyance, and further to report without delay to the Chief Executive Officer the number of the conveyance and the name of the person so notified. **165. Disinfection of public conveyance.—(1) Where any person suffering from, or the corpse of any** person who has died from, an infectious, communicable or contagious disease has been carried in a public conveyance which ordinarily plies in a cantonment, the driver thereof shall forthwith report the fact to the Chief Executive Officer who shall forth with cause the conveyance to be disinfected if that has not already been done. (2) No such conveyance shall be brought again into use until the Chief Executive Officer has granted a certificate stating that it can be used without causing risk of infection. **166. Penalty for failure to report.—Whoever fails to make to the Chief Executive Officer any report** which he is required to make by section 164 or section 165 shall be punishable with fine which may extend to one thousand rupees. **167. Driver of conveyance not bound to carry person suffering from infectious or contagious** **disease.—Notwithstanding anything contained in any law for the time being in force, no owner, driver or** person in charge of a public conveyance shall be bound to convey or to allow to be conveyed in such conveyance in or in the vicinity of a cantonment any person suffering from an infectious or contagious disease or the corpse of any person who has died from such disease unless and until such person pays or tenders a sum fixed by the Chief Executive Officer from time to time, to cover any loss and expense which would ordinarily be incurred in disinfecting the conveyance. **168. Disinfection of building or articles therein.—Where a Board is, upon the advice of the Health** Officer, of opinion that the cleansing and disinfection of any building or part of a building in the cantonment or of any articles in any such building or part which are likely to retain infection, or the renewal of the flooring of any such building or part of such building, would tend to prevent or check the spread of any infectious or contagious disease, the Board may by notice in writing, require the owner or occupier to cleanse and disinfect, the said building, part or articles, as the case may be, or to renew the said flooring, within such time as may be specified in the notice: Provided that where, in the opinion of the Board the owner or occupier is from poverty or any other cause unable effectually to carry out any such requisition, the Board may, at the expense of the cantonment fund, cleanse and disinfect the building, part or articles, or as the case may be, renew the flooring. 59 ----- **169. Destruction of infectious hut or shed.—(1) Where the destruction of any hut or shed in a** cantonment is, in the opinion of the Board, necessary to prevent the spread of any infectious or contagious disease, the Board may, by notice in writing, require the owner to destroy the hut or shed and the materials thereof within such time as may be specified in the notice. (2) Where the President of a Board is satisfied that the destruction of any hut or shed in the cantonment is immediately necessary for the purpose of preventing the spread of any infectious or contagious disease, he may order the owner or occupier of the hut or shed to destroy the same forthwith, or may himself cause it to be destroyed after giving not less than two hours' notice to the owner or occupier thereof. (3) The Board shall pay compensation to the owner of any hut or shed destroyed under this section. **170. Temporary shelter for inmates of disinfected or destroyed building or shed.—The Board** shall provide free of charge temporary shelter or house accommodation for the members of any family in which an infectious or contagious disease has appeared who have been compelled to leave their dwelling by reason of any proceedings taken under section 168 or section 169, and who desire such shelter or accommodation as aforesaid to be provided for them. **171. Disinfection of building before letting the same.—(1) Where in a cantonment any building or** part of a building is intended to be let, in which any person has, within six weeks immediately preceding, been suffering from an infectious or contagious disease, the person letting the building or part shall before doing so disinfect the same in such manner as the Chief Executive Officer may, by public or special notice, direct, together with all articles therein liable to retain infection. (2) For the purposes of this section, the keeper of a hotel, lodging house or sarai shall be deemed to let to any person who is admitted as a guest therein that part of the building in which such person is permitted to reside. **172. Disposal of infected article without disinfection.—No person shall, without previous** disinfection of the same, give, lend, sell, transmit or otherwise dispose of to another person any article or thing which he knows or has reason to believe has been exposed to contamination by any infectious or contagious disease and is likely to be used in, or taken into, a cantonment. **173. Means of disinfection.—(1) Every Board shall—** (a) provide proper places with necessary attendants and apparatus for the disinfection of conveyances, clothing, bedding or other articles which have been exposed to infection; (b) cause conveyances, clothing or other articles brought for disinfection to be disinfected either free of charge or on payment of such charges as the Chief Executive Officer may fix. (2) The Chief Executive Officer may notify places at which articles of clothing, bedding, conveyances or other articles which have been exposed to infection shall be washed, and, if it does so, no person shall wash any such thing at any place not so notified without having previously disinfected such thing. (3) The Chief Executive Officer may direct the destruction of any clothing, bedding or other article in the cantonment likely to retain infection, and may give such compensation as he thinks fit for any article so destroyed. **174. Making or selling of food, etc., or washing clothes by infected person.—Whoever, while** suffering from, or in circumstances in which he is likely to spread, any infectious or contagious disease,— (a) makes, carries or offers for sale in a cantonment or takes any part in the business of making, carrying or offering for sale therein any article of food or drink or any medicine or drug for human consumption, or any article of clothing or bedding for personal use or wear, or (b) takes any part in the business of the washing or carrying of clothes, shall be punishable with fine which may extend to five thousand rupees. **175. Power to restrict or prohibit sale of food or drink.—When a cantonment is visited or** threatened by an outbreak of any infectious or contagious disease, the Chief Executive Officer on behalf of the Board may, by public notice, restrict in such manner or prohibit for such period, as may be specified in the notice, the sale or preparation of any article of food or drink for human consumption specified in the notice or the sale of any flesh of any description of animals so specified. 60 ----- **176. Control over wells, tanks, etc.—(1) If the Chief Executive Officer on the advice given by the** Health Officer is of opinion that the water in any well, tank or other place is likely, if used for drinking, to endanger, or cause the spread of, any disease, it may,— (a) by public notice, prohibit the removal or use of such water for drinking; (b) by notice in writing, require the owner or person having control of such well, tank or place to take such steps as may be directed by the notice to prevent the public from having access to or using such water; or (c) take such other steps as it may consider expedient to prevent the outbreak or spread of any such disease. (2) In the event of a cantonment or any part of a cantonment being visited or threatened by an outbreak of any infectious or contagious disease, the Health Officer or any person authorised by him in this behalf may, without notice and at any time, inspect and disinfect any well, tank or other place from which water is, or is likely to be, taken for the purposes of drinking, and may further take such steps as he thinks fit to ensure the purity of the water or to prevent the use of the same for drinking purposes. **177. Disposal of infectious corpse.—Where any person has died in a cantonment from any infectious** or contagious disease, the Chief Executive Officer, may, by notice in writing,— (a) require any person having charge of the corpse to convey the same to a mortuary, thereafter to be disposed of in accordance with law; or (b) prohibit the removal of the corpse from the place where death occurred except for the purpose of being buried or burned or of being conveyed to a mortuary. _Hospitals and dispensaries_ **178. Maintenance or aiding of hospitals or dispensaries.—(1) A Board may—** (a) provide and maintain either within or without the cantonment as many hospitals and dispensaries as it thinks fit; or (b) make, upon such terms as it thinks fit to impose, a grant-in-aid to any hospital or dispensary or veterinary hospital, whether within or without the cantonment, not maintained by it. (2) Every hospital or dispensary maintained or aided under sub-section (1) shall have attached to it a ward or wards for the treatment of persons suffering from infectious or contagious diseases. (3) The Medical Officer appointed by the Board shall be in charge of every Hospital and dispensary maintained or aided under this section and be responsible to the Health Officer for medical activities and to the Chief Executive Officer for over all administrative activities of the hospital. **179. Medical supplies, appliances, etc.—(1) Every hospital or dispensary maintained or aided under** section 178 shall be maintained in accordance with any general or special orders of the Central Government for the conduct of hospitals and dispensaries or in accordance with the said orders modified in such manner as the Central Government may think fit. (2) The Board shall cause every such hospital or dispensary to be provided with all requisite drugs, instruments, apparatus, furniture and appliances and with sufficient cots, bedding and clothing for in-patients. **180. Free patients.—At every hospital or dispensary maintained or aided under section 178, the sick** poor of the cantonment, and other inhabitants of the cantonment suffering from infectious, communicable or contagious disease, and, with the sanction of the Board, any other sick persons, may receive medical or surgical treatment free of cost, and, if treated as in-patients, shall be either dieted gratuitously or, if the medical officer in charge so directs, shall be granted subsistence allowance on such scale as the Board may fix. 61 ----- **181. Paying patients.—Any sick person who is ineligible to receive medical or surgical treatment** free of cost in any hospital or dispensary under section 180 may be admitted for treatment therein upon such terms as the Board thinks fit. **182. Power to order person to attend hospital or dispensary.—(1) If the Health Officer or the** Medical Officer in charge of a hospital or dispensary maintained or aided under section 178 has reason to believe that any person living in the cantonment is suffering from an infectious, communicable or contagious disease, he may, by notice in writing, call upon such person to attend for examination at any such hospital or dispensary at such time as may be specified in the notice and not to quit it without the permission of the Medical Officer in charge; and, on the arrival of such person at the hospital or dispensary, the Medical Officer in charge thereof may examine him for the purpose of satisfying himself whether or not such person is suffering from an infectious, communicable or contagious disease: Provided that, if, having regard to the nature of the disease or the condition of the person suffering there from, or the general environment and circumstances of such person, the Health Officer or Medical Officer, as the case may be, considers that the attendance of such person at a hospital or dispensary is likely to prove unnecessary or inexpedient, he shall examine such person at such person's own residence. (2) If any person on examination under sub-section (1), is found to be suffering from an infectious or contagious disease, the Health Officer or Medical Officer, as the case may be, may cause him to be detained in hospital until he is free from the infection or contagion: Provided that, if having regard to the nature of the disease or the condition of the person suffering there from, or the general environment and circumstances of such person, he considers that the detention of such person at a hospital or dispensary is unnecessary or inexpedient, he shall discharge such person and take such measures or give such directions in the matter as he thinks necessary. **183. Power to exclude from cantonment persons refusing to attend hospital or dispensary.—(1)** If the Health Officer or the Medical Officer in charge of a hospital or dispensary maintained or aided under section 178 reports in writing to the Officer Commanding the station that any person having received a notice under section 182 has refused or omitted to attend at the hospital or dispensary, specified in the notice, or that such person, having attended the hospital or dispensary, has quitted it without the permission of such Medical Officer, or that any person has failed to comply with any direction given to him under section 182, the Officer Commanding the station may, by order in writing, direct such person to be removed from the cantonment within twenty-four hours and not to re-enter it without his permission in writing. (2) No person who has under sub-section (1) been ordered to be removed from and not to re-enter a cantonment shall enter any other cantonment without the written permission of the Officer Commanding the station. _Control of traffic for hygienic purposes_ **184. Routes for pilgrims and others.—(1) A Board may provide or prescribe suitable routes for the** use of persons assing through the cantonment— (a) on their way to or from fairs or places of pilgrimage or other places of public resort; or (b) during times when an infectious or contagious disease is prevalent, and may, by public notice, require such persons as aforesaid to use such routes and no others. (2) All routes provided or prescribed under sub-section (1) shall be clearly and sufficiently indicated by the Board. 62 ----- _Special conditions regarding essential services_ **185. Conditions of service of safai karamcharis and others.—[1][ (1) No person employed in any** essential service under a Board in a cantonment shall, in the absence of any contract, resign without reasonable cause or absent himself from duty without proper authority and in case of such resignation or absence from duty, disciplinary proceedings shall be initiated against him in accordance with such procedure as may be prescribed.] (2) The Central Government may, by notification in the Official Gazette, direct that on and from such date as may be specified in the notification, the provisions of this section shall apply in the case of any specified class of employees employed by a Board whose functions intimately concern the public health or safety. CHAPTER IX WATER-SUPPLY, DRAINAGE AND SEWAGE COLLECTION _Water-supply_ **186. Maintenance of water-supply.—(1) In every cantonment where a sufficient supply of potable** water for domestic use does not exist, the Board shall provide or arrange for the provision of such a supply. (2) The Board shall, as far as possible, make adequate provision that such supply shall be continuous throughout the year, and that the water shall be at all times fit for human consumption. (3) It shall be the duty of every Board to practise and propagate the scientific methods of water harvesting including harvesting of rain water for use and make arrangement for recharging the sources of ground water including underground aquifers and to preserve rivers, streams, springs and other natural sources of water within and in the vicinity of the cantonment. **187. Terms of water-supply.—In this Chapter, unless the context otherwise requires, the following** words and expression in relation to water supply shall have the respective meanings given below, namely:— (1) “communication pipe” means:— (a) where the premises supplied with water abut on the part of the street in which the main is laid, and the service pipe enters those premises otherwise than through the outer wall of a building abutting on the street and has a stopcock placed in those premises and as near to the boundary of that street as is reasonably practicable, so much of the service pipe as lies between the main and that stopcock; (b) in any other case, so much of the service pipe as lies between the main and the boundary of the street in which the main is laid, and includes the ferrule at the junction of the service pipe with the main, and also,— (i) where the communication pipe ends at in a stopcock, that stopcock, and (ii) any stopcock fitted on the communication pipe between the end thereof and the main. (2) “main” means a pipe laid by the Board for the purpose of giving a general supply of water as distinct from a supply to individual consumers and includes any apparatus used in connection with such a pipe. (3) “service pipe” means so much of any pipe for supplying water from a main to any premises as is subject to water pressure from that main, or would be so subject but for the closing of some tap. (4) “supply pipe” means so much of any service pipe as is not a communication pipe. 1. Subs. by Act 18 of 2023, s. 2 and Schedule for sub-section (1) (w.e.f. 2-11-2023). 63 ----- (5) “trunk main” means a main constructed for the purpose of conveying water from a source of supply to a filter or reservoir or from one filter or reservoir to another filter or reservoir, or for the purpose of conveying water in bulk from one part of the limits of supply to another part of those limits, or for the purpose of giving or taking a supply of water in bulk. (6) “water fittings” includes pipes (other than mains), taps, cocks, valves, ferrules, meters, cisterns, baths and other similar apparatus used in connection with the supply and use of water. **188. Board to carry out survey and formulate proposals.—(1) The Board may, when so** required,— (a) carry out a survey of the existing consumption of and demand for water supplies in cantonment and of the water resources in or likely to be made available in the cantonment; (b) prepare an estimate of the future water supply requirements of the cantonment; (c) carry out a survey of the existing quantity of sewage collection; (d) formulate proposals as to— (i) the existing or future water supply requirements of the cantonment; (ii) the existing or future sewage collection requirement in cantonment including proposals for the manner in which and the place or places at which sewage should be carried, collected and treated. (2) If the Board is of the opinion that the works and other properties for the time being vested in the Board, are inadequate for the purpose of sufficient supply of water or for the purpose of efficient collection of sewage under this Act it may take steps in accordance with the provisions of this Act for the construction of additional works, whether within cantonment or outside the cantonment with the approval of the Principal Director and for the acquisition of additional properties for such works. **189. Control over sources of public water-supply.—(1) The Board may, with the previous sanction** of the Central Government, by public notice, declare any lake, stream, spring, well, tank, reservoir or other source, whether within or without the limits of the cantonment other than a source of water-supply under the control and in use of the Military Engineer Services or the Public Works Department from which water is or may be made available for the use of the public in the cantonment to be source of public water-supply. (2) Every such source shall be under the control of the Board and it shall be the duty of the Board to preserve and maintain such source. **190. Power to require maintenance or closing of private source of public drinking** **water-supply.—The Chief Executive Officer may, by notice in writing, require the owner or any person** having the control of any source of public water-supply which is used for drinking purposes— (a) to keep the same in good order and to clear it from time to time of silt, refuse and decaying vegetation; or (b) to protect the same from contamination in such manner as the Chief Executive Officer may direct; or (c) if the water therein is proved to the satisfaction of the Chief Executive Officer to be unfit for drinking purposes, to take such measures as may be specified in the notice to prevent the public from having access to or using such water: Provided that, in the case of a well, such person as aforesaid may, instead of complying with the notice, signify in writing his desire to be relieved of all responsibility for the proper maintenance of the well and his readiness to place it under the control and supervision of the Board for the use of the public, and, if he does so, he shall not be bound to carry out the requisition, and the Board shall undertake the control and supervision of the well. 64 ----- **191. Supply of water.—(1) Subject to the guidelines made by the Board in this regard, the Chief** Executive Officer may permit the owner, lessee or occupier of any building or land to connect the building or land with a source of public water-supply by means of communication pipes of such size and description as may be specified for the purpose of obtaining water for domestic use. (2) The occupier of every building so connected with the water-supply shall be entitled to have for domestic use, in return for the water tax, if any, such quantity of water as the Chief Executive Officer may determine. (3) All water supplied in excess of the quantity to which such supply is limited under sub-section (2) and, in a cantonment in which a water tax is not imposed, all water supplied under this section, shall be paid for at such rate as the Board may fix keeping in view its financial viability. (4) The supply of water for domestic use shall not be deemed to include any supply for— (a) animals or for washing vehicles where such animals or vehicle are kept for sale or hire; (b) any trade, manufacture or business; (c) fountains, swimming baths or any ornamental or mechanical purpose; (d) gardens or for purposes of irrigation; (e) making or watering roads or paths; or (f) building purposes. **192. Power to require water-supply to be taken.—If it appears to the Chief Executive Officer that** any building or land in the cantonment is without a proper supply of potable water, the Chief Executive Officer may, by notice in writing, require the owner, lessee or occupier of the building or land to obtain from a source of public water-supply such quantity of water, as is, adequate to the requirements of the persons usually occupying or employed upon the building or land, and to provide communication pipes of the prescribed size and description, and to take all necessary steps for the above purposes. **193. Supply of water under agreement.—(1) Subject to the guidelines made by the Board in this** regard, the Chief Executive Officer may, by agreement, supply, from any source of public water supply, the owner, lessee or occupier of any building or land in the cantonment with any water for any purpose, other than a domestic purpose, on such terms and conditions, consistent with this Act and the rules and bye laws made thereunder, as may be agreed upon between the Chief Executive Officer and such owner, lessee or occupier. (2) The Chief Executive Officer may withdraw such supply or curtail the quantity thereof at any time if it should appear necessary to do so for the purpose of maintaining sufficient supply of water for domestic use by inhabitants of the cantonment. **194. Board not liable for failure of supply.—Notwithstanding any obligation imposed on Boards** under this Act, a Board shall not be liable to any forfeiture, penalty or damages for failure to supply water or for curtailing the quantity thereof if the failure or curtailment, as the case may be, arises from accident or from drought or other unavoidable cause unless, in the case of an agreement for the supply of water under section 193, the Board has made express provision for forfeiture, penalty or damages in the event of such failure or curtailment. **195. Conditions of universal application.—Notwithstanding anything herein before contained or** contained in any agreement under section 193, the supply of water by a Board to any building or land shall be, and shall be deemed to have been granted subject to the following conditions, namely:— (a) the owner, lessee or occupier of any building or land in or on which water supplied by the Board is wasted by reason of the pipes, drains or other works being out of repair shall, if he has knowledge thereof, give notice of the same to such officer as the Chief Executive Officer may appoint in this behalf; (b) the Chief Executive Officer or any other officer or employee of the Board authorised by him in writing in this behalf may enter into or on any premises supplied with water by the Board, for the 65 ----- purpose of examining all pipes, taps, works and fittings connected with the supply of water and of ascertaining whether there is any waste or misuse of such water; (c) the Chief Executive Officer may, after giving notice in writing, cut off the connection between any source of public water-supply and any building or land to which water is supplied for any purpose there from, or turn off such supply if— (i) the owner or occupier of the building or land neglects to pay the water tax or water rate or other charges connected with the water supply within one month from the date on which such tax or rate or charge falls due for payment; (ii) the occupier refuses to admit the Chief Executive Officer or other authorised officer or employee of the Board into the building or land for the purpose of making any examination or inquiry authorised by clause (b) or prevents the making of such examination or inquiry; (iii) the occupier wilfully or negligently misuses or causes waste of water; (iv) the occupier wilfully or negligently injures or damages his meter or any pipe or tap conveying water from the water works; (v) any pipes, taps, works or fittings connected with the supply of water to the building or land are found, on examination by any other officer or employee of the Board authorised by the Chief Executive Officer in writing in this behalf, to be out of repair to such an extent as to cause waste of water; (d) the expense of cutting off the connection or of turning off the water in any case referred to in clause (c) shall be paid by the owner or occupier of the building or land; (e) no action taken under or in pursuance of clause (c) shall relieve any person from any penalty or liability which he may otherwise have incurred. **196. Supply to persons outside cantonment.—A Board may allow any person not residing within** the limits of the cantonment to take or be supplied with water for any purpose from any source of public water supply on such terms as it may prescribe, and may at any time withdraw or curtail such supply. **197. Penalty.—Whoever—** (a) uses for other than domestic purposes any water supplied by a Board for domestic use; or (b) where water is supplied by agreement with a Board for a specified purpose, uses that water for any other purposes shall be punishable with fine which may extend to two thousand five hundred rupees, and in addition, the Board shall be entitled to recover from him the cost of the water misused. _Water, Drainage and other connections_ **198. Power of Board to lay wires, connections, etc.—A Board may carry any cable, wire, pipe,** drain, sewer or channel of any kind,— (a) for the purpose of carrying out, establishing or maintaining any system of water-supply, lighting, drainage, or sewerage, through, across, under or over any road or street or any place laid out or intended as a road or street, or, after giving reasonable notice in writing to the owner or occupier, into, through, across, under or over any land or building, or up side of any building, situated within the cantonment; or (b) for the purpose of supplying water or of the introduction or distribution of outflow of water or for the removal or outflow of sewage, after giving reasonable notice in writing to the owner or occupier, into, through, across, under or over any land or building, or up side of any building, situated outside the cantonment and may at all times do all acts and things which may be necessary or expedient for repairing or maintaining any such cable, wire, pipe, drain, sewer or channel in an effective state for the purpose for which the same may be used or is intended to be used: Provided that no nuisance shall be caused in excess of what is reasonably necessary for the proper execution of the work: 66 ----- Provided further that compensation shall be payable to the owner or occupier for any damage sustained by him which is directly occasioned by the carrying out of any such operation. **199. Wires, etc., laid above surface of ground.—In the event of any cable, wire, pipe, drain, sewer** or channel being laid or carried above the surface of any land or through, over or up side of any building, such cable, wire, pipe, drain sewer or channel shall be so laid or carried as to interfere as little as possible with the rights of the owner or occupier to the due enjoyment of such land or building, and compensation shall be payable by the Board in respect of any substantial interference with the right to any such enjoyment. **200. Connection with main not to be made without permission.—No person shall, for any** purpose whatsoever, without the permission of the Board at any time make or cause to be made any connection or communication with any cable, wire, pipe, drain, sewer or channel constructed or maintained by, or vested in, a Board. **201. Power to prescribe ferrules and to establish meters, etc.—The Chief Executive Officer may** prescribe the size of the ferrules to be used for the supply of gas, if any, and may establish meters or other appliances for the purpose of measuring the quantity of any water or gas or testing the quality thereof supplied to any premises by the Board. **202. Power of inspection.—The ferrules, communication pipes, connections, meters, stand pipes and** all fittings thereon or connected therewith leading from water mains or from pipes, drains, sewers or channels into any house or land, to which water or gas is supplied by a Board, and the pipes, fittings, and works inside any such house or within the limits of any such land, shall in all cases be installed or executed subject to the inspection and to the satisfaction of the Chief Executive Officer. **203. Power to fix rates and charges.—A Board may fix the charges to be made for the** establishment by them or through their agency or communications from, and connections with, mains, or pipes for the supply of water, or gas, or for meters or other appliances for measuring the quantity, or testing the quantity thereof supplied, and may levy such charges accordingly. _Application of this Chapter to Government water-supplies_ **204. Government water-supply.—(1) Where in any cantonment there is a water-supply (other than a** public water-supply under the control of the Board) under the control of the Military Engineer Services or the Public Works Department, the Officer of the Military Engineer Services or of the Public Works Department, as the case maybe, in charge of such water-supply (hereafter in this Chapter referred to as the Officer) may publish in the cantonment in such manner as he thinks fit a notice declaring any lake, stream, spring, well, tank, reservoir or other source, whether within or without the limits of the cantonment other than a source of public water-supply and the officer may, for the purpose of keeping any such source in good order or of protecting it from contamination or from use, require the Board to exercise any power conferred upon it by section 190. (2) In the case of any water-supply such as is referred to in sub-section (1), the following provisions of this Chapter, namely, the provisions of sections 191, 193, 194, 195, 197, 198, 199, 200, 201, 202 and 203 shall, as far as may be, be applicable in respect of the supply of water to the cantonment, and for the purpose of such application references to the Board shall be construed as references to the Officer, and references to the Chief Executive Officer or other officer or employee of the Board shall be construed as references to such person as may be authorised in this behalf by the Officer. (3) The provisions of section 193 shall be applicable in respect of the supply of water by agreement to the Board by the Officer for use for any purpose other than a domestic purpose in like manner as they are applicable to such supply to the owner, lessee or occupier of any building or land in the cantonment. (4) In order to preserve the underground water level, the Board may make regulations for the digging or use of bore wells in the cantonment. **205. Water-supply for domestic consumption.—(1) Where it appears to the Chief Executive** Officer that any dwelling house in the cantonment is without supply of water for domestic consumption and that such a supply can be given from mains which is not more than one hundred feet distance from 67 ----- any part of such dwelling house, the Chief Executive Officer may by notice require the owner to obtain supply and to execute all such works as may be necessary for this purpose. (2) It shall not be lawful for the owner of any premises which may be constructed or reconstructed, to occupy it or cause or permit it to be occupied until he has obtained a certificate from the Chief Executive Officer that there is provided within, or within a reasonable distance of, the house supply of wholesome water as appears to the Chief Executive Officer to be sufficient for domestic consumption and use of the inmates of the house. **206. Recovery of charges.—In any case in which the provisions of section 204 apply and in which** the Board is not receiving a bulk supply of water under section 207, the water-tax, if any, imposed in the cantonment and all other rates arising out of the supply of water which may be imposed under the provisions of this Chapter as applied by section 204 shall be recovered by the Board, and all monies so recovered, or such proportion thereof as the Central Government may in each case determine, shall be paid by the Board to the Officer. **207. Supply of water from Government water-supply to the Board.—(1) Where in any** cantonment there is a water-supply such as is referred to in sub-section (1) of section 204, the Board may, and so long as the Board is unable to provide a water-supply of its own, it shall receive from the Military Engineer Services or the Public Works Department, as the case may be, at such point or points as may be agreed upon between the Board and the Military Engineer Services or Public Works Department, a supply of water adequate to the requirements for domestic use of all persons in the cantonment other than entitled consumers. (2) Any supply of water received under sub-section (1) shall be a bulk supply, and the Board shall make such payments to the Military Engineer Services or Public Works Department for all water so received as may be agreed upon between the Board and the Military Engineer Services or Public Works Department, or, in default of such agreement, as may be determined by the Central Government to be reasonable having regard to the actual cost of supplying the water in the cantonment and the rate charge for water in any adjacent municipality: Provided that, notwithstanding anything contained in this Act, the Board shall not charge for the supply to persons in the cantonment of water received by the Board under this section a rate calculated to produce more than the sum of the payments made to the Military Engineer Services or Public Works Department for water received and the actual cost of the supply thereof by the Board to consumers. (3) If any dispute arises between the Board and the Military Engineer Services or Public Works Department regarding the rate and amount of water adequate to the requirements of persons in the cantonment other than entitled consumers, the disputes shall be referred to the Central Government whose decision shall be final. **208. Functions of the Board in relation to distribution of bulk supply.—Where under the** provisions of sub-section (1) of section 207 a bulk supply of water is received by the Board, the Board shall be solely responsible for the supply of water to all persons in the cantonment other than entitled consumers; and the provisions of this Act shall apply as if such bulk supply were a source of public water-supply under the control of the Board and as if the communications from and connections with such bulk supply for the purpose of supplying water to such persons were a system of water supply established and maintained by the Board. **209. Special provisions concerning drainage and sewage.—(1) All public drains, all drains in,** alongside or under any public street, except those vesting in the Military Engineer Services or any Department of the Central Government or a State Government or any autonomous body under the Central Government or a State Government and all sewage collection works, whether constructed out of the cantonment fund or otherwise and all works, material and things appertaining thereto, which are situated in the cantonment shall vest in the Board. (2) All public and other drains, which are vested in the Board are hereafter in this Act referred to as cantonment drains. 68 ----- (3) For the purposes of enlarging, deepening or otherwise repairing or maintaining any such drain or sewage collection work so much of the sub-soil appertaining thereto as may be necessary for the said purpose shall be deemed also to vest in the Board. (4) All drains and ventilation shafts, pipes and all appliances and fittings connected with drainage works constructed, erected or set up out of the cantonment fund in or upon premises not belonging to the Board whether— (a) before or after the commencement of this Act; and (b) for the use of the owner or occupier of such premises or not, shall unless the Board has otherwise determined, or does at any time otherwise determine, vest and be deemed always to have vested in the Board. **210. Construction of and control of drains and sewage collection and disposal works.—(1) All** cantonment drains, all sewage collection and all works, materials and things appertaining thereto shall be under the control of the Board. (2) The Chief Executive Officer shall maintain and keep in repair all cantonment drains and sewage collection and sewage disposal works when authorised by the Board. (3) The Board shall construct as many new drains and sewage collection and sewage disposal works as may from time to time be necessary for effectual drainage and sewage collection. (4) The Board shall ensure that the sewage effluents are treated in accordance with the norms laid down under the relevant laws relating to pollution before it is dispersed into a river, stream, lake or open land. **211. Certain matters not to be passed into cantonments drains.—No person shall throw, empty or** turn into any cantonment drain or into any drain communicating with a cantonment drain— (a) any matter likely to injure the drain or to interfere with the free flow of its contents, or to affect prejudicially the treatment and disposal of its contents; or (b) any chemical, refuse or waste stream, or any liquid of a temperature higher than forty-five degrees centigrade, being refuse or stream which, or liquid which when so heated is, either alone or in combination with the contents of the drain be dangerous, or the cause of a nuisance, or prejudicial to health; or (c) any dangerous petroleum. _Explanation.—In this section, the expression “dangerous petroleum” has the same meaning as in the_ Petroleum Act, 1934 (3 of 1934). **212. Application by owners and occupiers to drain into cantonment drains.—(1) Subject to such** conditions as may be prescribed by bye-laws made in this behalf, the owner or occupier of any premises having a private drain, or the owner of any private drain within cantonment may apply to the Chief Executive Officer to have his drain made to communicate with the cantonment drains and thereby to discharge foul water and surface water from those premises or that private drain: Provided that nothing in this sub-section shall entitle any person— (a) to discharge directly or indirectly into any cantonment drain— (i) any trade effluent from any trade premises except in accordance with bye-laws made in this behalf; or (ii) any liquid or other matter the discharge of which into cantonment drains is prohibited by or under this Act or any other law; or (b) where separate cantonment drains are provided for foul water and for surface water to discharge directly or indirectly— (i) foul water into a drain provided for the surface water; or 69 ----- (ii) except with the permission of the Chief Executive Officer, surface water into a drain provided for foul water; or (c) to have his drains made to communicate directly with a storm-water overflow drain. (2) Any person desirous of availing himself of the provisions of sub-section (1) shall give to the Chief Executive Officer notice of his proposals, and at any time within one month after receipt thereof, the Chief Executive Officer may by notice to him refuse to permit the communication to be made, if it appears to him that the mode of construction or condition of the drain is such that the making of the communication would be prejudicial to the drainage system, and for the purpose of examining the mode of construction and condition of the drain he may, if necessary, require it to be laid open for inspection. (3) The Chief Executive Officer may, if he thinks fit, construct such parts of the work necessary for having a private drain made to communicate with a cantonment drain, as is in or under a public street and in such a case, the expenses incurred by the Chief Executive Officer shall be paid by the owner or occupier of the premises, or as the case may be, the owner of the private drain and shall be recoverable from the owner or occupier as an arrears of tax under this Act. **213. Drainage of undrained premises.—(1) Where any premises are in the opinion of the Chief** Executive Officer, without sufficient means of effectual drainage and a cantonment drain or some place approved by the Chief Executive Officer for the discharge of filth and other polluted and obnoxious matter is situated at a distance of not exceeding thirty metres from any part of the said premises, he may, by written notice, require the owner of the said premises— (a) to make a drain emptying into such cantonment drain or place; (b) to provide and set up all such appliances and fittings as may appear to the Chief Executive Officer necessary for the purposes of gathering and receiving the filth and other polluted and obnoxious matter from, and conveying the same off, the said premises and of effectually flushing such drain and every fixture connected therewith; (c) to remove any existing drain or other appliance or thing used or intended to be used for drainage which is injurious to health; (d) to provide a closed drain in substitution of an open drain or to provide such other appliance or thing either newly or in substitution of any existing appliance or thing or to provide both a close drain and such other appliance or thing in substitution of the existing open drain and other appliance or thing, which is or is likely to be injurious to health; (e) to provide and set up all such appliances and fitting as may appear to the Chief Executive Officer to be necessary for the purpose of gathering and receiving the waste water from floors and galleries of buildings when they are washed, and conveying the same through spouts, by down-take pipes so as to prevent such waste water from discharging directly on streets or inside any lower portion of the premises; (f) to carry out any work to improve or re-model an existing drain which is inadequate, insufficient or faulty. (2) Where in any case not provided for in sub-section (1) any premises are, in the opinion of the Chief Executive Officer, without sufficient means of effectual drainage, he may, by written notice, require the owner of the premises— (a) to construct a drain up to a point to be prescribed in such notice but not at a distance or more than thirty meters from any part of the premises; or (b) to construct a closed cesspool or soakage pit and drain or drains emptying into such cesspool or soakage pit. (3) Any requisition for the construction of any drain under sub-section (2) may contain any of the details specified in sub-section (1). 70 ----- **214. New premises not to be erected without drains.—(1) It shall not be lawful to erector to** re-erect any premises in a cantonment or to occupy any such premises unless— (a) a drain be constructed of such size, materials and description, at such level and with such fall as shall appear to the Chief Executive Officer to be necessary for the effectual drainage of such premises; (b) there have been provided and set up on such premises such appliances and fittings as may appear to the Chief Executive Officer to be necessary for the purposes of gathering or receiving the filth and other polluted and obnoxious matter from, and conveying the same off, the said premises and of effectually flushing the drain of the said premises and every fixture connected therewith. (2) The drain so constructed shall empty into a cantonment drain situated at a distance of not exceeding thirty meters from the premises; but if no cantonment drain is situated within that distance then such drain shall empty into a cesspool situated within that distance to be specified by the Chief Executive Officer for the purpose. **215. Power to drain group or block of premises by combined operations.—(1) If it appears to the** Chief Executive Officer that any group or block of premises may be drained more economically or advantageously in combination than separately, and a cantonment drain of sufficient size already exists or is about to be constructed within thirty metres of any part of that group or block of premises, the Chief Executive Officer may cause that group or block of premises to be drained by a combined operation. (2) The expenses incurred in carrying out any work under sub-section (1) in respect of any group or block of premises shall be paid by the owners of such premises in such proportions as the Chief Executive Officer may determine and shall be recoverable from them as an arrears of tax under this Act. (3) Not less than fifteen days before any such work is commenced, the Chief Executive Officer shall give to each such owner— (a) written notice of the nature of the proposed work; and (b) an estimate of the expenses to be incurred in respect thereof and of the proportion of such expenses payable by him. (4) The Chief Executive Officer may require the owners of such groups or block or premises to maintain the work executed under this section. **216. Power to close or limit the use of private drains in certain cases.—Where a drain connecting** any premises with a cantonment drain is sufficient for the effectual drainage of such premises and is otherwise unobjectionable but is not in the opinion of the Chief Executive Officer, adapted to the general system of drainage in the cantonment, he may, by written notice addressed to the owner of the premises, direct— (a) that such drain be closed, discontinued or destroyed and that any work necessary for that purpose be done; or (b) that such drain shall, from such date as may be specified in the notice in this behalf, be used for filth and polluted water only or for rain water and unpolluted sub-soil water only: Provided that— (i) no drain may be closed, discontinued or destroyed by the Chief Executive Officer under clause (a) except on condition of his providing another drain equally effectual for the drainage of the premises and communicating with any cantonment drain which he thinks fit; and (ii) the expenses of the construction of any drain so provided by the Board and of any work done under clause (a) may be paid out of the cantonment fund. **217. Use of drain by a person other than the owner.—(1)Where the Chief Executive Officer either** on receipt of an application from the owner of any premises or otherwise is of the opinion that the only, or the most convenient means of effectual drainage of the premises into a cantonment drain is through a drain belonging to another person, the Chief Executive Officer may by notice in writing require the owner of such a drain to show cause within a period specified in the notice as to why an order under this section should not be made. 71 ----- (2) Where no cause is shown within the specified period or the cause shown appears to the Chief Executive Officer invalid or insufficient, the Chief Executive Officer may by order in writing either authorise the owner of the premises to use the drain or declare him to be a joint owner thereof. (3) An order made under sub-section (2) may contain directions as to— (a) the payment of rent or compensation by the owner of the premises; (b) the construction of a drain for the premises for the purpose of connecting it with the aforesaid drain; (c) the entry upon the land in which the aforesaid drain is situate with assistants and workmen at all reasonable hours; (d) the respective responsibilities of the parties for maintaining, repairing, flushing, cleaning and emptying the aforesaid drain. **218. Sewage and rain water drains to be distinct.—Wherever it is provided in this Chapter that** steps shall or may be taken for the effectual drainage of any premises, it shall be competent to the Chief Executive Officer to require that there shall be one drain for filth and polluted water and an entirely distinct drain for rain water and unpolluted sub-soil water or both rain water and unpolluted sub-soil water, each emptying into separate cantonment drains or other suitable places. **219. Power to require owner to carry out certain works for satisfactory drainage.—For the** purpose of efficient drainage of any premises, the Chief Executive Officer may, by notice in writing,— (a) require any courtyard, alley or passage between two or more buildings to be paved by the owner or owners of such buildings with such materials and in such manner as may be approved by the Chief Executive Officer; and (b) require such paving to be kept in proper repair. **220. Appointment of places for the emptying of drains and collection of sewage.—The Chief** Executive Officer may cause any or all of the cantonment drains to empty into, and all sewage to be collected of at, such place or places as he considers suitable: Provided that no place which has not been before the commencement of this Act used for any of the purposes specified in this section shall, after such commencement be used there for without the approval of the Board: Provided further that on and after such date as may be appointed by the Central Government in this behalf no sewage shall be discharged into any water course until it has been so treated as not to affect prejudicially the purity and quality of the water into which it is discharged. _Miscellaneous_ **221. Connection with water works and drains not to be made without permission.—Without the** written permission of the Chief Executive Officer, no person shall, for any purpose whatsoever, at any time make or cause to be made any connection or communicate with any drain referred to in section 210 or any water works, constructed or maintained by, or vested in, the Board. **222. Buildings, railways and private streets not to be erected or constructed over drains or** **water works without permission.—(1)(a) No railway works shall be constructed on any cantonment** drain or any water works constructed or maintained by, or vested in the Board, without the approval of the Central Government. (b) If any railway works are constructed on any drains or water works as aforesaid without the written permission of the Central Government, the Chief Executive Officer may remove or otherwise deal with the same as he thinks fit. (2)(a) No private street shall be constructed and no building, wall, fence or other structure shall be erected on any cantonment drain or on any water works constructed or maintained by, or vested in, the Board without the approval of the Board. 72 ----- (b) If any private street is constructed or any building, wall, fence or structure erected on any drain or water works as aforesaid without the written permission of the Board, the Chief Executive Officer may remove or otherwise deal with the same as he may think fit. (3) The expenses incurred by the Chief Executive Officer in doing so shall be paid by the owner of the private street or of the building, fence wall or other structure or, as the case may be, by the railway administration or the person offending and shall be recoverable as an arrears of tax under this Act. **223. Rights of user of property for aqueducts, lines, etc.—(1) The Chief Executive Officer may** place and maintain aqueducts, conduits and lines of mains or pipes or drains over, under, along or across any immovable property whether within or without the local limits of the cantonment without acquiring the same, and may at any time for the purpose of examining, repairing, altering or removing any aqueducts, conduits or lines of mains or pipes or drains, enter on any property over, under, along or across which the aqueducts, conduits or lines of mains or pipes, or drains have been placed: Provided that the Board shall not acquire any right other than a right of user in the property over, under, along or across which any aqueduct, conduit or line of mains or pipes, or drain is placed. (2) The power conferred under sub-section (1) shall not be exercisable in respect of any property vested in the Union or under the control or management of the Central Government or railway administration or vested in any local authority save with the permission of the Central Government or railway administration or the local authority, as the case may be, and in accordance with any bye-laws made in this behalf: Provided that the Chief Executive Officer may, without such permission, repair; renew, or amend any existing works of which the character or position is not to be altered if such repair, renewal or amendment is urgently necessary in order to maintain without interruption the supply of water, drainage or collection of sewage or is such that delay would be dangerous to health, human life or property. (3) In exercise of the powers conferred upon him by this section, the Chief Executive Officer shall cause as little damage and inconvenience as may be possible, and shall make full compensation for any damage or inconvenience caused by him. **224. Power of owner of premises to place pipes and drains through land belonging to other** **persons.—(1) If it appears to the Chief Executive Officer that the only or most convenient means of** water supply to, and drainage of, any premises is by placing or carrying any pipe or drains over, under, along or across the immovable property of another person, the Chief Executive Officer may, by order in writing, authorise the owner of the premises to place or carry such pipe or drain over, under, along or across such immovable property: Provided that before making any such order the Chief Executive Officer shall give to the owner of the immovable property a reasonable opportunity of showing cause within such time as may be prescribed by bye-laws made in this behalf as to why the order should not be made: Provided further that the owner of the premises shall not acquire any right other than a right of user in the property over, under, along or across which any such pipe or drain is placed or carried. (2) Upon the making of an order, under sub-section (1), the owner of the premises may, after giving reasonable notice of his intention so to do, enter upon the immovable property with assistants and workmen at any time between sunrise and sunset for the purpose of placing a pipe or drain over, under, along or across such immovable property or for the purpose of repairing the same. (3) In placing or carrying a pipe or drain under this section, as little damage as possible shall be done to the immovable property and the owner of the premises shall— (a) cause the pipe or drain to be placed or carried with the least practicable delay; (b) fill in, re-instate and make good at his own cost and with the least practicable delay, any land opened, broken up or removed for the purpose of placing or carrying such pipe or drain; and (c) pay compensation to the owner of the immovable property and to any other person who sustains damage by reason of the placing or carrying of such pipe or drain. 73 ----- (4) If the owner of the immovable property, over, under, along or across which a pipe or drain has been placed or carried under this section whilst such immovable property was not built upon, desires to erect any building on such property, the Chief Executive Officer, shall, by notice in writing, require the owner of the premises to close, remove or divert the pipe or drain in such manner as shall be approved by him and to fill in, re-instate and make good the immovable property as if the pipe or drain had not been placed or carried over, under, along or across the same: Provided that no such requisition shall be made unless in the opinion of the Chief Executive Officer it is necessary or expedient for the construction of proposed building or the safe enjoyment thereof that the pipe or drain should be closed, removed or diverted. **225. Power to require railway level, etc., to be raised or lowered.—If the Board places or carries** any pipe or drain or does any other work connected with the water supply or drainage across any railway line, it may, with the sanction of the Central Government and at the cost of the cantonment fund, require the railway administration to raise or lower the level thereof. **226. Power to execute work after giving notice to the person liable.—(1) When under the** provisions of this Chapter, any person may be required or is liable to execute any work, the Chief Executive Officer may, in accordance with the provisions of this Act and of any bye-laws made in this behalf, cause such work to be executed after giving such person an opportunity of executing the same within such time as may be specified by him for this purpose. (2) The expenses incurred or likely to be incurred by the Chief Executive Officer in the execution of any such work shall be payable by the said person and the expenses incurred by the Chief Executive Officer in connection with the maintenance of such work or the enjoyment of amenities and conveniences rendered possible by such work shall be payable by the person or persons enjoying such amenities and conveniences. (3) The expenses referred to in sub-section (2) shall be recoverable from the person or persons liable there for as an arrears of tax under this Act. **227. Power to affix shafts, etc., for ventilation of drain or cesspool.—For the purpose of** ventilating any drain or cesspool, whether vested in the Board or not, the Chief Executive Officer may, in accordance with bye-laws made in this behalf, erect upon any premises or affix to the outside of any building or to any tree any such shaft or pipe as may appear to him to be necessary. **228. Power to examine and test drains, etc., believed to be defective.—(1) Where it appears to the** Chief Executive Officer that there are reasonable grounds for believing that a private drain or cesspool is in such condition as to be prejudicial to health or a nuisance or that a private drain communicating directly or indirectly with a cantonment drain is so defective as to admit sub soil water, he may examine its condition, and for that purpose may apply any test, other than a test by water under pressure, and if he deems it necessary, open the ground. (2) If on examination the drain or cesspool is found to be in proper condition, the Chief Executive Officer shall, as soon as possible, re-instate any ground which has been opened by him and make good any damage done by him. **229. Bulk delivery of sewage by the Board.—(1) The Board shall deliver in bulk all the sewage to,** the authority prescribed by the Central Government or the State Government, subject to such charges for the delivery of sewage of the area of cantonment as may be determined by means of an agreement entered into between that other authority and the Board. (2) The agreement mentioned in sub-section (1) shall provide also for a stipulation therein that in case of any dispute about the payments to be made to that other authority by the Board, the matter shall be referred to the Central Government whose decision thereon shall be final and binding on both parties. **230. Employment of Government agencies for repair, etc.—The Central Government may, for** reason to be recorded, direct that any specified work, repair, renewal or replacement which is to be undertaken by or for the Board under this Chapter, shall be carried out on behalf of the Board by the Central Government and the Board shall pay the charges there for at the rates and subject to the terms for 74 ----- the time being applicable in the case of works constructed by that Government on behalf of a local authority. **231. Works to be done by licensed plumber.—(1) No person other than a licensed plumber shall** execute any work described in this Chapter and no person shall permit any such work to be executed except by a licensed plumber: Provided that if, in the opinion of the Chief Executive Officer, the work is of a trivial nature, he may grant permission in writing for the execution of such work by a person other than a licensed lumber. (2) Every person who employs a licensed plumber to execute any work shall, when so required, furnish to the Chief Executive Officer the name of such plumber. (3) When any work is executed except in accordance with the provisions of sub-section (1), such work shall be liable to be dismantled at the discretion of the Chief Executive Officer without prejudice to the right of the Board to prosecute under this Act the person at whose instance such work has been executed. (4) The Board may make bye-laws for the guidance of licensed plumbers and a copy of all such bye-laws shall be attached to every licence granted to a plumber by the Board. (5) The Board may, from time to time, prescribe the charges to be paid to licensed plumber for any work done by them under or for any of the purposes of this Chapter. (6) No licensed plumber shall, for any work referred to in sub-section (5), demand or receive more than the charges prescribed there for, under that sub-section. (7) The Board shall make bye-laws providing for— (a) the exercise of adequate control on all licensed plumbers; (b) the inspection of all works carried out by them; and (c) the hearing and disposal of complaints made by the owners or occupiers of premises with regard to the quality of work done, material used, delay in execution of work, and the charges made, by a licensed plumber. (8) No licensed plumber shall contravene any of the bye-laws made under this section or execute carelessly or negligently any work under this Act or make use of bad materials, appliances or fittings. (9) If any licensed plumber contravenes sub-section (8), his licence may be suspended or cancelled whether he is prosecuted under this Act or not. **232. Prohibition of certain acts.—(1) No person shall—** (a) wilfully obstruct any person acting under the authority of the Board, or the Chief Executive Officer, in setting out the lines of any works or pull up or remove any pillar, post or stake fixed in the ground for the purpose of setting out lines of such work, or deface or destroy any works made for the same purpose; or (b) wilfully or negligently break, injure, turn on, open, close, shut off or otherwise interfere with any lock, cock, valve, pipe, meter or other work or apparatus belonging to the Board; or (c) unlawfully obstruct the flow of or flush, draw off, or divert, or take water from any water work belonging to the Board; or (d) unlawfully obstruct the flow of or flush, draw off, or divert, or take sewage from any sewage work belonging to the Board or break or damage any electrical transmission line maintained by the Board; or (e) obstruct any officer or other employee of the Board in the discharge of his duties under this Chapter or refuse or wilfully neglect to furnish him with the means necessary for the making of any entry, inspection, examination or inquiry thereunder in relation to any water or sewage work; or (f) bathe in, at or upon any water work or wash or throw or cause to enter therein any animal, or throw any rubbish, dirt or filth into any water work or wash or clean therein any cloth, wool or leather 75 ----- or the skin of any animal, or cause the water of any sink, or drain or any steam-engine or boiler or any polluted water to turn or be brought into any water work, or do any other act whereby the water in any water work is fouled or likely to be fouled. (2) Nothing in clause (b) of sub-section (1) shall apply to a consumer closing the stopcock fixed on the service pipe supplying water to his premises so long as he has obtained the consent of any other consumer whose supply will be affected thereby. CHAPTER X TOWN PLANNING AND CONTROL OVER BUILDINGS, ETC. **233. Preparation of land use plan.—(1) On the commencement of this Act, the Chief Executive** Officer shall with the approval of the Board, cause to be prepared a spatial plan for land use to be followed in the cantonment which shall include— (a) earmarking of zones for residential, institutional, commercial and other activities; and (b) improvement schemes for areas considered sub-standard on account of narrowness of streets, poor lighting, poor ventilation or irregular line of buildings in a street. (2) The Board shall give publicity to the land use plan prepared under sub-section (1), by publishing a gist of the plan in a local newspaper. **234. Sanction for building.—No person shall erect or re-erect a building on any land in a** cantonment— (a) in an area, other than the civil area, except with the previous sanction of the Board; (b) in a civil area, except with the previous sanction of the Chief Executive Officer, nor otherwise than in accordance with the provisions of this Chapter and of the rules and bye-laws made under this Act relating to the erection and re-erection of buildings: Provided that if an erected or re-erected building is meant for public purposes, then it shall be made accessible to and barrier free for the persons with disabilities. **235. Notice of new buildings.—(1) Whoever intends to erect or re-erect any building in a** cantonment shall apply for sanction by giving notice in writing of his intention— (a) where such erection or re erection is in an area, other than the civil area, to the Board; (b) where such erection or re-erection is in a civil area, to the Chief Executive Officer. (2) For the purposes of this Act, a person shall be deemed to erect or re-erect a building who— (a) makes any material alteration or enlargement of any building; or (b) converts into a place for human habitation any building not originally constructed for human habitation; (c) converts into more than one place for human habitation a building originally constructed as one such place; or (d) converts two or more places of human habitation into a greater number of such places; or (e) converts into a stable, cattle-shed or cow-house any building originally constructed for human habitation; or (f) converts into a dispensary, stall, shops, warehouse, godown, factory or garage any building originally constructed for human habitation; or (g) makes any alteration which there is reason to believe is likely to affect prejudicially the stability or safety of any building or the condition of any building in respect of drainage, sanitation or hygiene; or 76 ----- (h) makes any alteration to any building which increases or diminishes the height of, or area covered by, or the cubic capacity of, the building, or which reduces the cubic capacity of any room in the building below the minimum prescribed by any bye-law made under this Act. **236. Conditions of valid notice.—(1) A person giving the notice required by section 235 shall** specify the purpose for which it is intended to use the building to which such notice relates. (2) No notice shall be valid until the information required under the sub-section (1) and any further information and plans and undertakings which may be required under bye-laws made under this Act have been furnished to the satisfaction of the Chief Executive Officer, along with the notice. **237. Powers of Board under certain sections exercisable by Chief Executive Officer.—The** powers, duties and functions of the Board under section 238, sub-section (1) of section 241 section 243, section 245 and section 248 excluding the provisions to sub-section (1) and the proviso to sub-section (2) of the said section 248 shall be exercised or discharged in a civil area by the Chief Executive Officer. **238. Power of Board to sanction or refuse.—(1) The Board may either refuse to sanction the** erection or re-erection, as the case may be, of the building, or may sanction it either absolutely or subject to such directions as it thinks fit to make in writing in respect of all or any of the following matters, namely:— (a) the free passage or way to be left in front of the building; (b) the space to be left about the building to secure free circulation of air and facilitate scavenging and the prevention of fire; (c) the ventilation of the building, the minimum cubic area of the rooms and the number of height of the storeys of which the building may consist; (d) the provision and position of drains, latrines, urinals, cesspools or other receptacles for filth; (e) the level and width of the foundation, the level of the lowest floor and the stability of the structure; (f) the line of frontage with neighbouring buildings if the building abuts on a street; (g) the means to be provided for egress from the building in case of fire; (h) the materials and method of construction to be used for external and party walls for rooms, floors, fire-places and chimneys; (i) the height and slope of the roof above the uppermost floor upon which human beings are to live or cooking operations are to be carried on; and (j) any other matter affecting the ventilation and sanitation of the buildings, and the person erecting or re-erecting the building shall obey all such written directions in every particular. (2) The Board may refuse to sanction the erection or re-erection of any building on any grounds sufficient in the opinion of the Board affecting the particular building: Provided that the Board shall refuse to accord sanction the erection or re-erection of any building if such erection or re-erection is not in conformity with any general scheme sanctioned under section 240. (3) The Board, before sanctioning the erection or re-erection of a building on land which is under the management of the Defence Estates Officer, shall refer the application to the Defence Estates Officer for ascertaining whether there is any objection on the part of the Government to such erection or re-erection; and the Defence Estates Officer shall return the application together with his report thereon to the Board within thirty days after it has been received by him. (4) The Board may refuse to sanction the erection or re-erection of any building— (a) when the land on which it is proposed to erect or re-erect the building is held on a lease from the Government, if the erection or re-erection constitutes a breach of the terms of the lease; or 77 ----- (b) when the land on which it is proposed to erect or re-erect the building is entrusted to the management of the Board by the Government if the erection or re-erection constitutes a breach of the terms of the entrustment of management or contravenes any of the instructions issued by the Government regarding the management of the land by the Board; or (c) when the land on which it is proposed to erect or re-erect the building is not held on a lease from the Government, if the right to build on such land is in dispute between the person applying for sanction and the Government. (5) If the Board decides to refuse to sanction the erection or re-erection of the building, it shall communicate in writing the reasons for such refusal to the person by whom notice was given. (6) Where the Board neglects or omits, for one month after the receipt of a valid notice, to make and to deliver to the person who has given the notice any order of any nature specified in this section, and such person thereafter by a written communication sent by registered post to the Board calls the attention of the Board to the neglect or omission, then, if such neglect or omission continues for a further period of fifteen days from the date of such communication the Board shall be deemed to have given sanction to the erection or re-erection, as the case may be: Provided that, in any case to which the provisions of sub-section (3) apply, the period of one month herein specified shall be reckoned from the date on which the Board has received the report referred to in that sub-section. **239. Order of stoppage of building or works in certain cases and disposal of things removed.—** (1) Where the erection of any building or execution of any work has been commenced or is being carried on without or contrary to the sanction, but has not been completed, referred to in section 238 or in contravention of any condition subject to which such sanction has been accorded or in contravention of any provision of this Act or bye-laws made thereunder, the Chief Executive Officer may in addition to any other action that may be taken under this Act, by order require the person at whose instance the building or the work has been commenced or is being carried on to stop the same forthwith. (2) If an order made by the Chief Executive Officer under sub-section (1) directing any person to stop the erection of any building or execution of any work is not complied with, the Chief Executive Officer may require any police officer to remove such person and all his assistants and workmen from the premises or to seize any construction material, tool, machinery, scaffolding or other things used in the erection of any building or execution of any work within such time as may be specified in the requisition and such police officer shall comply with the requisition accordingly. (3) Any of the things caused or to be seized by the Chief Executive Officer under sub-section (2) shall be disposed of by him in a manner specified in sub-sections (6) and (7). (4) After the requisition under sub-section (2) has been complied with the Chief Executive Officer may, if he thinks fit, depute by a written order a police officer or an officer or an employee of the Board to watch the premises in order to ensure that the erection of the building or the execution of work is not continued. (5) Where a police officer or an officer or an employee of the Board has been deputed under sub-section (4) to watch the premises, the cost of such deputation shall be paid by the person at whose instance such erection or execution is being continued or to whom notice under sub-section (1) was given and shall be recoverable from such person as an arrear of tax under this Act. (6) Any of the things caused to be removed by the Chief Executive Officer under this section shall unless the owner thereof turns up to take back such things and pays to the Chief Executive Officer charges for removal and storage of such things be disposed of by the Chief Executive Officer by a public auction or in such other manner as he thinks fit: Provided that such things shall only be disposed of by the Chief Executive Officer on the expiry of fifteen days in case of non perishable things and twenty-four hours in case of perishable things from the date and time of seizure. (7) The charges for removal and storage and sale of things sold under sub-section (6) shall be paid out of the proceeds of the sale thereof and the balance, if any, shall be paid to the owner of the things sold on 78 ----- a claim being made therefor within a period of one year from the date of sale and if no such claim is made within the said period, shall be credited to the cantonment fund. **240. Power to sanction general scheme for prevention of overcrowding, etc.—The General** Officer Commanding-in-Chief the Command in Consultation with the Principal Director may sanction a general scheme of erection or re-erection of buildings within such limits as may be specified in the sanction for the prevention of overcrowding or for purpose of sanitation, or in the interest of persons residing within those limits or for any other purpose, and may, in pursuance of such scheme, impose restrictions on the erection or re-erection of buildings within those limits: Provided that no such scheme shall be sanctioned by the General Officer Commanding-in-Chief, the Command unless an opportunity has been given by a public notice to be published locally by the Chief Executive Officer requiring persons affected or likely to be affected by the proposed scheme, to file their objections or suggestions in the manner specified in the notice, within a period of thirty days of the publication of such notice, and the Chief Executive Officer shall after considering such objections and suggestions, if any, forward the same along with his recommendations to the Principal Director. **241. Compensation.—(1) No compensation shall be claimable by any person for any damage or loss** which he may sustain in consequence of the refusal of the Board of sanction to the erection of any building or in respect of any direction issued by it under sub-section (1) of section 238. (2) The Board shall make compensation to the owner of any building for any actual damage or loss sustained by him inconsequence of the prohibition of the re-erection of any building or of its requiring any land belonging to him to be added to the street: Provided that the Board shall not be liable to make any compensation in respect of the prohibition of the re-erection of any building which for a period of three years or more immediately preceding such refusal has not been in existence or has been unfit for human habitation. **242. Completion notice.—Every person to whom sanction for the erection or re-erection of any** building in any area in a cantonment has been given under section 237 or section 238 by the Chief Executive Officer or, as the case may be, by the Board shall, within thirty days after completion of the erection or re-erection of the building give a notice of completion in writing to the Chief Executive Officer or the Board, as the case may be, and the Chief Executive Officer or the Board shall on receipt of such notice cause the building to be inspected in order to ensure that the building has been completed in accordance with the sanction given by the Chief Executive Officer or the Board, as the case may be. **243. Lapse of sanction.—Every sanction for the erection or re-erection of a building given or** deemed to have been given as herein before provided shall be available for two years from the date on which it is given, and, if the building so sanctioned is not begun by the person who has obtained the sanction or someone lawfully claiming under him within that period, it shall not thereafter be begun unless the Chief Executive Officer, on application made there for has allowed an extension of that period. **244. Restrictions on use of buildings.—(1) No person shall, without the written permission of the** Board or otherwise than in conformity with the conditions, if any, of such permission,— (a) use or permit to be used for human habitation any part of a building not originally erected or authorised to be used for that purpose or not used for that purpose before any alteration has been made therein by any work executed in accordance with the provisions of this Act and the bye-laws made thereunder; (b) change or allow the change of the use of any land or building; (c) convert or allow the conversion of one kind of tenement into another kind. (2) Any person who contravenes the provisions of sub-section (1) shall on conviction be punishable with a fine which may extend to one lakh rupees and in the case of continuing contravention with an additional fine of rupees ten thousand for every day during which the contravention continues after the date it comes to the notice. **245. Period for completion of building.—A Board, when sanctioning the erection or re-erection of a** building as hereinbefore provided, shall specify a reasonable period after the work has commenced within 79 ----- which the erection or re-erection is to be completed, and, if the erection or re-erection is not completed within the period so fixed, it shall not be continued thereafter without fresh sanction obtained in the manner hereinbefore provided, unless the Board on application made therefor has allowed an extension of that period: Provided that not more than two such extensions, each for not more than one year, shall be allowed in any case. **246. Completion certificate.—The Chief Executive Officer shall on receipt of the notice under** section 242 of this Act cause the building to be inspected either by himself or by the officer authorised by him in his behalf in order to ensure that the building has been completed in accordance with the sanction given and issue completion certificate provided that the person seeking the completion certificate shall assist the Chief Executive Officer in inspection of such building: Provided that the building shall not be occupied for habitation unless a certificate is issued by the Chief Executive Officer or an officer authorised by him in this behalf: Provided further that if the Chief Executive Officer fails within a period of thirty days after the receipt of the notice of completion, to communicate his refusal to issue such certificate, such certificate shall be deemed to have been granted. **247. Illegal erection and re-erection.—Whoever begins, continues or completes the erection or** re-erection of a building— (a) without having given a valid notice as required by sections 235 and 236, or before the building has been sanctioned or is deemed to have been sanctioned; or (b) without complying with any direction made under sub-section (1) of section 238; or (c) when sanction has been refused, or has ceased to be available or has been suspended by the General Officer Commanding-in-Chief, the Command, under clause (b) of sub-section (1) of section 58, shall be punishable with fine which may extend to fifty thousand rupees and the cost of sealing the illegal construction and its demolition. 248. Power to stop erection or re-erection or to demolish.—(1) A Board may, at any time, by notice in writing, direct the owner, lessee or occupier of any land in the cantonment to stop the erection or re-erection of a building in any case in which the Board considers that such erection or re-erection is an offence under section 247 and may, in any such case or in any other case in which the Board considers that the erection or re-erection of a building is an offence under section 247, within twelve months of the completion of such erection or re-erection in like manner, direct the alteration or demolition, as it thinks necessary, of the building, or any part thereof, so erected or re-erected: Provided that the Board may, instead of requiring the alteration or demolition of any such building or part thereof, accept by way of composition such sum as it thinks reasonable: Provided further that the Board shall not, without the previous concurrence of the General Officer Commanding-in-Chief, the Command, accept any sum by way of composition under the foregoing proviso in respect of any building on land which is not under the management of the Board. (2) A Board shall by notice in writing direct the owner, lessee or occupier of any land in the cantonment to stop the erection or re-erection of a building in any case in which the order under section 238 sanctioning the erection or re-erection has been suspended by the General Officer Commanding-in-Chief, the Command, under clause (b) of sub-section (1) of section 58, and shall in any such case in like manner direct the demolition or alteration, as the case may be, of the building or any part thereof so erected or re-erected where the General Officer Commanding-in-Chief, the Command, thereafter directs that the order of the Board sanctioning the erection or re-erection of the building shall not be carried into effect or shall be carried into effect with modifications specified by him: Provided that the Board shall pay to the owner of the building compensation for any loss actually incurred by him in consequence of the demolition or alteration of any building which has been erected or 80 ----- re-erected prior to the date on which the order of the General Officer Commanding-in-Chief, the Command, has been communicated to him. **249. Power to seal unauthorised constructions.—(1) It shall be lawful for the Chief Executive** Officer, at any time, before or after making an order of demolition under section 248 or of the stoppage of erection of any building, or execution of any work, to make an order directing the sealing of such erection or work or of the premises in which such erection or work is being carried on or has been completed at the cost of the offender in such manner as may be prescribed by rules for the purpose of carrying out the provisions of this Act or for preventing any dispute as to the nature and extent of such erection or work. (2) Where any erection or work or any premises in which any erection or work is being carried on, has or, has been sealed, the Chief Executive Officer may, for the purpose of demolishing such erection or work in accordance with the provisions of this Act, order such seal to be removed. (3) No person shall remove such seal except— (a) under an order made by the Chief Executive Officer under sub-section (2); or (b) under an order of an appellate authority in an appeal made under this Act. (4) Any person who contravenes the provisions contained in sub-section (3) shall be punishable with imprisonment which may extend to six months or with fine which may extend to twenty thousand rupees, or with both. **250. Courts not to entertain proceedings in certain cases.—(1) After the commencement of this** Act, no court shall entertain any suit, application or other proceedings in respect of any order or notice unless an appeal under section 340 is preferred and the same is disposed of by the appellate authority under sub-section (3) of section 343 of this Act. (2) Notwithstanding anything contained in sub-section (1), every suit, application or other proceedings pending in any court immediately before the commencement of this Act shall continue to be dealt with and disposed of by that court as if the said section has not been brought into force. **251. Power to make bye-laws.—A Board may make bye-laws prescribing—** (a) the manner in which notice of the intention to erect or re-erect a building in the cantonment shall be given to the Board or, as the case may be, the Chief Executive Officer and the information and plans to be furnished with the notice; (b) the manner in which and the form in which a notice of completion of erection or re-erection of any building in the cantonment shall be given to the Board or, as the case may be, the Chief Executive Officer and the information and plans to be furnished with the notice; (c) the type or description of buildings which may or may not, and the purpose for which a building may or may not, be erected or re-erected in the cantonment or any part thereof; (d) the minimum cubic capacity of any room or rooms in a building which is to be erected or re-erected; (e) the fees payable on provision by the Board of plans or specifications of the type of buildings which may be erected in the cantonment or any part thereof; (f) the circumstances in which mosque, temple or church or other sacred building may be erected or re-erected; and (g) with reference to the erection or re-erection of buildings, or of any class of buildings, or any of the following matters, namely:— (i) the line of frontage where the building abuts on a street; (ii) the space to be left about the building to secure free circulation of air and facilities for scavenging and for the prevention of fire; (iii) the materials and method of construction to be used for external and party walls, roofs and floors; 81 ----- (iv) the position, the materials and the method of construction of stair-cases, fire places, chimneys, drains, latrines, privies, urinals and cess-pools; (v) height and slope of the roof above the uppermost floor upon which human beings are to live or cooking operations are to be carried on; (vi) the level and width of the foundation, the level of the lowest floor, the stability of the structure and the protection of building from dampness arising from sub-soil; (vii) the number and height of the storeys of which the building may consist; (viii) the means to be provided for egress from the building in case of fire; (ix) the safeguarding of wells from pollution; or (x) the materials and method of construction to be used for godowns intended for the storage of food grains in excess of eighteen quintals in order to render them rat proof. **252. Prohibition of structures or fixtures which cause obstruction in streets.—(1) No person** shall, except with the permission of the Chief Executive Officer, erect or set up any wall, fence, nail, post, step, booth or other structure whether fixed or movable or whether of a permanent or temporary nature, or any fixture in or upon any street so as to form an obstruction to, or an encroachment upon, or a projection over, or to occupy any portion of such street, channel, drain, well or tank. (2) The Chief Executive Officer may, by notice in writing, require the owner or occupier of any such building to alter or remove any such projection or encroachment as aforesaid: Provided that, in the case of any projection or encroachment lawfully in existence at the commencement of this Act, the Chief Executive Officer shall make compensation for any damage caused by the removal or alteration. (3) The Chief Executive Officer may, by order in writing, give permission to the owners or occupiers of buildings in any particular street to put up open verandahs, balconies or rooms projecting from any upper storey thereof to an extent beyond the line of the plinth or basement wall at such height from the level ground or street as may be specified in the order. **253. Unauthorised buildings over drains, etc.—The Chief Executive Officer may, by notice in** writing require any person who has, without his permission in writing, newly erected or re-erected any structure over any public sewer, drain, culvert, water-course or water-pipe in the cantonment to pull down or otherwise deal with the same as he thinks fit. **254. Drainage and sewer connections.—(1) The Chief Executive Officer may, by notice in writing,** require the owner or lessee of any building or land in any street, at his own expense and in such manner as he thinks fit, to put up and keep in good condition, proper troughs and pipes for receiving and carrying rain water from the building or land and for discharging the same or to establish and maintain any other connection or communication between such buildings or land and a drain or sewer or a water harvesting structure or facility. (2) For the purpose of efficiently draining any building or land in the cantonment, the Chief Executive Officer may, by notice in writing, require the owner or lessee of the building or land— (a) to pave, with such materials and in such manner as he thinks fit, any courtyard, alley or passage between two or more buildings; or (b) to keep any such paving in proper repair; or (c) to make such arrangements as may be specified by the Board under bye-laws to deliver rain water from roof top to the water harvesting facility created or arranged by the Board. **255. Power to attach brackets for lamps and other accessories.—The Chief Executive Officer may** attach to the outside of any building, or to any tree in the cantonment, brackets for lamps or any accessories for non-conventional sources of energy in such manner as not to occasion injury thereto or inconvenience. 82 ----- **256. Maintenance of roads.—(1) All roads in the civil area of a cantonment shall be maintained by** the Board. (2) All roads outside the civil area as have been vested in the Board shall also be maintained by the Board. _Streets_ **257. Temporary occupation of street, land, etc.—(1) The Chief Executive Officer may, by order in** writing, permit the temporary occupation of any street, or of any land vested in the Board, for the purpose of depositing any building materials or making any temporary excavation therein or erection thereon, subject to such conditions as the Board may prescribe for the safety or convenience of the public, and may charge a fee for such permission and may in his discretion withdraw such permission. (2) Where any article or thing is placed on any street or land under the management of the Board or the Defence Estates Officer so as to form an obstruction thereto or any encroachment thereon, the Chief Executive Officer or, as the case may be, the Defence Estates Officer, may cause such article or thing to be removed and recover from the person who placed such article or thing the expenses incurred in that behalf in the same manner as moneys recoverable by the Board under section 324 and may also, if such person fails to offer satisfactory explanation, order the confiscation of such article or thing. **258. Closing and opening of streets.—(1) A Board may open any street for public use.** (2) A Board shall not permanently close any street without the prior permission of the General Officer Commanding in Chief, or the Principal Director: Provided that no such street shall be closed for reasons other than the security reasons and without giving a public notice inviting objections and suggestions from the general public. (3) The Chief Executive Officer may, by public notice, temporarily close any street or any part of a street for repair or for the purpose of carrying out any work connected with drainage, water-supply or lighting or any other work which he is by or under this Act required or permitted to carry out: Provided that where, owing to any works or repairs or from any other cause, the condition of any street or of any water-works, drain, culvert or premise vested in the Board, is such as to be likely to cause danger to the public, the Board shall— (a) take all reasonable means for the protection of the adjacent buildings and land and provide reasonable means of access thereto; (b) cause sufficient barriers or fences to be erected for the security of life and property, and cause such barriers or fences to be sufficiently lighted from sunset to sunrise. **259. Names of streets and numbers of buildings.—(1) A Board may determine the name or number** by which any area, street or public place in the cantonment shall be known and may cause name or number to be affixed on any building in the cantonment in such place as it thinks fit and may also cause a number to be affixed to any such building. (2) Whoever destroys, pulls down, defaces or alters any such name or number or puts up any name or number differing from that put up by the order of the Board shall be punishable with fine which may extend to one thousand rupees. (3) When a name or number has been affixed to any building under sub-section (1), the owner of the building shall maintain the name or number in order, and shall replace it if removed or defaced, and if he fails to do so the Chief Executive Officer may by notice in writing require him to replace it. **260. Group Housing Schemes.—A Board, may in accordance with the bye-laws framed for the** purpose, allow the Group Housing Schemes for construction of houses. **261. Boundary walls, hedges and fences.—(1) No boundary wall, hedge or fence of any material or** description shall be erected in a cantonment without the permission in writing of the Chief Executive Officer. 83 ----- (2) The Chief Executive Officer may, by notice in writing, require the owner or lessee of any land in the cantonment— (a) to remove from the land any boundary wall, hedge or fence which is in his opinion unsuitable, unsightly or otherwise objectionable; or (b) to construct on the land sufficient boundary walls, hedges or fences of such material, description or dimensions as may be specified in the notice; or (c) to maintain the boundary walls, hedges or fences of such lands in good order: Provided that in the case of any such boundary wall, hedge or fence which was erected with the consent or under the orders of the Chief Executive Officer or which was in existence at the commencement of this Act, the Board shall make compensation for any damage caused by the removal thereof. (3) The Chief Executive Officer may, by notice in writing, require the owner, lessee or occupier of any such land to cut or trim any hedge on the land in such manner and within such time as may be specified in the notice. **262. Felling, lopping and trimming of trees.—(1) Where, in the opinion of a Board, the felling of** any tree of mature growth standing in a private enclosure in the cantonment is necessary for any reason, the Board may, by notice in writing, require the owner, lessee or occupier of the land to fell the tree within such time as may be specified in the notice. (2) A Board may— (a) cause to be lopped or trimmed any tree standing on land in the cantonment which belongs to the Government; or (b) by public notice require all owners, lessees or occupiers of land in the cantonment, or by notice in writing require the owner, lessee or occupier of any such land, to lop or trim, in such manner as may be specified in the notice, all or any trees standing on such land or to remove any dead trees from such land. **263. Digging of public land.—Whoever, without the permission in writing of the Chief Executive** Officer, digs up the surface of any open space in the cantonment, which is not private property, shall be punishable with fine which may extend to two thousand five hundred rupees and in the case of a continuing offence, with an additional fine which may extend to five hundred rupees for every day after the first during which the offence continues. **264. Improper use of land.—(1) If, in the opinion of the Chief Executive Officer, the working of a** quarry in the cantonment, or the removal of stone, earth or other material from the soil in any place in the cantonment, is dangerous to persons residing in or frequenting the neighbourhood or such quarry or place, or creates, or is likely to create, a nuisance, the Chief Executive Officer may, by notice in writing, prohibit the owner, lessee or occupier of such quarry or place or the person responsible for such working or removal, from continuing or permitting the working of such quarry or the moving of such material, or require him to take such steps in the matter as he may direct for the purpose of preventing danger or abating the nuisance arising or likely to arise therefrom. (2) If, in any case referred to in sub-section (1), the Chief Executive Officer is of opinion that such a course is necessary in order to prevent imminent danger, he may, by order in writing, require a proper hoarding or fence to be put up for the protection of passers-by. CHAPTER XI MARKETS, SLAUGHTER-HOUSES, TRADES AND OCCUPATIONS **265. Public markets and slaughter-houses.—(1) A Board may provide and maintain, on the land** under its control, public markets and public slaughter-houses, to such number as it thinks fit, together with stalls, shops, sheds, pens and other buildings or conveniences for the use of persons carrying on trade or business in or frequenting such markets or slaughter-houses, and may provide and maintain in 84 ----- any such market buildings, places, machines, weights, scales and measures for the weighment or measurement of goods sold therein. (2) When such market or slaughter-house is situated beyond cantonment limits, the Board shall have the same power for the inspection and proper regulation of the same as if it were situated within those limits. (3) The Board may at any time, by public notice, close any public market or public slaughter-house or any part thereof. (4) Nothing in this section shall be deemed to authorise the establishment of a public market or public slaughter-house within the limits of any area administered by any local authority other than the Board, without the permission of such local authority or otherwise than on such conditions as such local authority may approve. **266. Use of public market.—(1) No person shall, without the general or special permission in** writing of the Chief Executive Officer, sell or expose for sale any animal or article in any public market. (2) Any person contravening the provisions of this section, and any animal or article exposed for sale by such person, may be summarily removed from the market by or under the orders of the Chief Executive Officer or any official of the Board authorised by him in this behalf. **267. Power to transfer by public auction, etc.—(1) The Board may transfer by public auction, for** any period not exceeding five years at a time, the right to occupy or use any stall, shop, standing, shed or pen in a public market, or public slaughter-house or the right to expose goods for sale in a public market or the right to weigh or measure goods sold therein, or the right to slaughter animals in any public slaughter-house: Provided that where the Board is of opinion that such transfer of the aforesaid rights by public auction is not considered desirable or expedient, it may, with the previous sanction of the General Officer Commanding-in-Chief, the Command or in his absence, the Principal Director,— (a) either levy such stallages, rents or fees as it thinks fit; or (b) farm the stallages, rents and fees leviable under clause (a) for any period not exceeding one year at a time: Provided further that the enjoyment of any such aforesaid right by any person for any length of time shall never be deemed to create or confer any tenancy right in such stall, shop, standing, shed, pen, public market or public slaughter-house. (2) The Board may transfer by public auction or otherwise any immovable property other than in a public market or a public slaughter house if such property is capable of being put to remunerative use for such period and on such terms and conditions as may be approved by the General Officer Commanding-in-Chief, the Command or in his absence, the Principal Director. **268. Stallages, rents, etc., to be published.—A copy of the table of stallages, rents and fees, if any,** leviable in any public market or public slaughter-house, and of the bye-laws made under this Act for the purpose of regulating the use of such market or slaughter-house, printed in English language or in such other language or languages as the Board may direct, shall be affixed in some conspicuous place in the market or slaughter-house. **269. Private markets and slaughter-houses.—(1) No place in a cantonment other than a public** market shall be used as a market, and no place in a cantonment other than a public slaughter-house shall be used as a slaughter-house, unless such place has been licensed as a market or slaughter-house, as the case may be, by the Board: Provided that nothing in this sub-sections shall apply in the case of a slaughter-house established and maintained by the Central Government or the State Government, as the case may be. 85 ----- (2) Nothing in sub-section (1) shall be deemed— (a) to restrict these slaughter of any animal in any place on the occasion of any festival or ceremony, subject to such conditions as to prior or subsequent notice as the Chief Executive Officer with the previous sanction of the District Magistrate may, by public or special notice, impose in this behalf; or (b) to prevent the Chief Executive Officer, with the sanction of the Board, from setting apart places for the slaughter of animals in accordance with religious custom. (3) Whoever omits to comply with any condition imposed by the Chief Executive Officer under clause (a) of sub-section (2) shall be punishable with fine which may extend to five thousand rupees and, in the case of continuing offence, with an additional fine which may extend to one thousand rupees for every day after the first during which the offence is continued. **270. Conditions of grant of licence for private market or slaughter-house.—(1) A Board may** charge such fees as it thinks fit to impose for the grant of a licence to any person to open a private market or private slaughter-house in the cantonment, and may grant such licence subject to such conditions, consistent with this Act and any bye-laws made thereunder, as it thinks fit to impose. (2) The Board may refuse to grant any such licence without giving reasons for such refusal. **271. Penalty for keeping market or slaughter-house open without licence, etc.—(1) Any person** who keeps open for public use any market or slaughter-house in respect of which a licence is required by or under this Act, without obtaining licence therefor, or while the licence therefor is suspended, or after the same has been cancelled, shall be punishable with fine which may extend to five thousand rupees and, in the case of a continuing offence, with an additional fine which may extend to five hundred rupees for every day after the first during which the offence is continued. (2) When a licence to open a private market or private slaughter-house is granted or refused or is suspended or cancelled, the Board shall cause a notice of the grant, refusal, suspension or cancellation to be pasted in English or such language or languages as it thinks necessary in some conspicuous place by or near the entrance to the place to which the notice relates. **272. Penalty for using unlicensed market or slaughter-house.—Whoever, knowing that any** market or slaughter-house has been opened to the public without a licence having been obtained therefor when such licence is required by or under this Act, or that the licence granted therefor is for the time being suspended or that it has been cancelled, sells or exposes for sale any article in such market, or slaughters any animal in such slaughter-house, shall be punishable with fine which may extend to five thousand rupees and, in the case of a continuing offence, with an additional fine which may extend to five hundred rupees for every day after the first during which the offence is continued. **273. Prohibition and restriction of use of slaughter-house.—(1) Where, in the opinion of the Chief** Executive Officer, it is necessary on sanitary grounds so to do, he may, by public notice, prohibit for such period not exceeding one month, as may be specified in the notice, or for such further period not exceeding one month, as he may specify by a like notice, the use of any private slaughter-house specified in the notice, or the slaughter therein of any animal of any description so specified. (2) A copy of every notice issued under sub-section (1) shall be conspicuously pasted in the slaughter-house to which it relates. **274. Power to inspect slaughter-houses.—(1) Any official of a Board, authorised by order in** writing in this behalf by the Chief Executive Officer or the Health Officer, may, if he has reason to believe that any animal has been, is being, or is about to be slaughtered in any place in contravention of the provisions of this Chapter, enter into and inspect any such place at any time, whether by day or by night. (2) Every such order shall specify the place to be entered and the locality in which the same is situated and the period, which shall not exceed seven days for which the order is to remain in force. 86 ----- **275. Power to regulate certain activities.—A Board may, by order, regulate all or any of the** following matters, namely:— (a) the days on, and the hours during, which any private market or private slaughter-house may be kept open for use; (b) the regulation of the design, ventilation and drainage of such market or slaughter-houses, and the material to be used in the construction thereof; (c) the keeping of such markets and slaughter-houses and lands and buildings appertaining thereto in a clean and sanitary condition, the removal of filth and refuse therefrom, and the supply therein of pure water and of a sufficient number of latrines and urinals for the use of persons using or frequenting the same; (d) the manner in which animals shall be stalled at a slaughter-house; (e) the manner in which animals may be slaughtered; (f) the disposal or destruction of animals offered for slaughter which are, from disease or any other cause, unfit for human consumption; (g) the destruction of carcasses which from disease or any other cause are found after slaughter to be unfit for human consumption; and (h) any other matter with respect to the regulation of such markets and slaughter-houses. _Trade and occupations_ **276. Provision of washing places.—(1) A Board may provide suitable places for the exercise by** washermen of their calling, and may require payment of such fees for the use thereof as it thinks fit. (2) Where the Board has provided such places as aforesaid it may, by public notice, prohibit the washing of clothes by washermen at any other place in the cantonment: Provided that such prohibition shall not be deemed to apply to the washing by a washerman of his own clothes or of the clothes of any other person who is an occupier of the place at which they are washed. (3) Whoever contravenes any prohibition contained in a notice is sued under sub-section (2) shall be punishable with fine which may extend to five hundred rupees. **277. Licences required for carrying on of certain occupations.—(1) No person of any of the** following classes, namely:— (a) butchers and vendors of poultry, game or fish; (b) persons keeping pigs for profit, and dealers in the flesh of pigs which have been slaughtered within or without cantonment; (c) persons keeping milch cattle or milch goats for profit; (d) persons keeping for profit any animals other than pigs, milch cattle or milch goats; (e) dairymen, buttermen and makers and vendors of ghee; (f) makers of bread, biscuits or cake and vendors of bread, biscuits or cake made within or without cantonment; (g) vendors of fruits or vegetables; (h) manufacturers of aerated or other potable waters or of ice or ice-cream, and vendors of the same; (i) vendors of any medicines, drugs or articles of food or drink for human consumption (other than the flesh of pigs, milk, butter, bread, biscuits, cake, fruit, vegetables, aerated or other potable waters or ice or ice-cream) which are of a perishable nature; (j) vendors of spirituous liquor; (k) vendors of water to be used for drinking purposes; 87 ----- (l) washermen; (m) dealers in hay, straw, wood, charcoal or other inflammable material; (n) dealers in fire-works, kerosene oil, petroleum or any other inflammable oil or spirit; (o) tanners and dyers; (p) persons carrying on any trade or occupation from which offensive or unwholesome smells arise; (q) vendors of wheat, rice and other grain or of flour; (r) makers and vendors of sugar or sweetmeats; (s) barbers and keepers of shaving saloons; (t) any other person carrying on such other trade, calling or occupation as the Central Government may, by notification in the Official Gazette, specify in this behalf, shall carry on his trade, calling or occupation in any part of a cantonment unless he has applied for and obtained a licence in this behalf from the Board. (2) A licence granted under sub-section (1) shall be valid until the end of the year in which it is issued and the grant of such licence shall not be withheld by the Board unless it has reason to believe that the business which it is intended to establish or maintain would be offensive or dangerous to the public or that the premises in which the business is intended to be established or maintained are unfit or unsuitable for the purpose. (3) Notwithstanding anything contained in sub-section (1),— (a) no person who was, at the commencement of this Act, carrying on his trade, calling or occupation in any part of a cantonment shall be bound to apply for a licence for carrying on such trade or occupation in that part until he has received from the Board not less than three month’s notice in writing of his obligation to do so, and if the Board refuses to grant him a licence, it shall pay compensation for any loss incurred by reason of such refusal; (b) no person shall be required to take out a licence for the sale or storage of petroleum or for the sale or possession for sale of poisons or white arsenic in any case in which he is required to take out a licence for such sale, storage, or possession for sale by or under the Petroleum Act, 1934 (30 of 1934) or the Poisons Act, 1919 (12 of 1919). (4) The Board may charge for the grant of licences, under this section such reasonable fees, as it may fix keeping in view the fees levied in this regard in a municipality in the State wherein such cantonment is situated. **278. Power to stop use of premises used in contravention of licences.—If the Chief Executive** Officer is of opinion that any eating house, lodging house, hotel, boarding house, tea shop, coffee house, café, restaurant, refreshment room or other place where public is admitted for repose or for consumption of any food or drink or where food is sold or prepared for sale or any theatre, cinema hall, circus, dancing hall or similar other place of public resort, recreation or amusement is kept open without a license or otherwise than in conformity with the terms of a license granted in respect thereof, he may stop the use of any such premises for any such purpose for a specified period by such means as he may consider necessary. **279. Conditions which may be attached to licences.—A licence granted to any person under** section 277 shall specify the part of the cantonment in which the licensee may carry on his trade, calling or occupation, and may regulate the hours and manner of transport within the cantonment of any specified articles intended for human consumption, and may contain any other conditions which the Board thinks fit to impose in accordance with bye-laws made under this Act. 88 ----- _General provisions_ **280. Power to vary licence.—If the Board is satisfied that any place used under a licence granted** under this Chapter is a nuisance or is likely to be dangerous to life, health or property, the Board may, by notice in writing, require the owner, lessee or occupier thereof to discontinue the use of such place or to effect such alternations, additions, or improvements as will, in the opinion of the Board, render it no longer a nuisance or dangerous. **281. Carrying on trade, etc., without licence or in contravention of section 280.—Whoever** carries any trade, calling or occupation for which a licence is required without obtaining a licence therefor or while the licence therefor is suspended or after the same has been cancelled, and whoever, after receiving a notice under section 280, uses or allows to be used any building or place in contravention thereof, shall be punishable with fine which may extend to five thousand rupees and, in the case of a continuing offence, with an additional fine which may extend to five hundred rupees for every day after the first during which the offence is continued. **282. Feeding animals on dirt, etc.—Whoever feeds or allows to be fed on filthy or deleterious** substances any animal, which is kept for the purpose of supplying milk to, or which is intended to be used as food for, the inhabitants of a cantonment or allows it to graze in any place in which grazing has, for sanitary reasons, been prohibited by public notice by the Board shall be punishable with fine which may extend to one thousand rupees. _Entry, inspection and seizure_ **283. Powers of entry and seizure.—(1) The President or the Vice-President, the Chief Executive** Officer, the Health Officer, the Assistant Health Officer, or any other official of a Board authorised by it in writing in this behalf— (a) may at any time enter into any market, building, shop, stall or other place in the cantonment for the purpose of inspecting, and may inspect, any animal, article or thing intended for human food or drink or for medicine, whether exposed or hawked about for sale or deposited in or brought to any place for the purpose of sale, or of preparation for sale, or any utensil or vessel for preparing, manufacturing or containing any such article, or thing, and may enter into and inspect any place used as a slaughter-house and may examine any animal or article therein; (b) may seize any such animal, article or thing which appears to him to be diseased, or unwholesome or unfit for human food or drink or medicine, as the case may be, or to be adulterated or to be not what it is represented to be, or any such utensil or vessel which is of such a kind or in such a state as to render any article prepared, manufactured or contained therein unwholesome or unfit for human food, drink or medicine, as the case may be. (2) Any article seized under sub-section (1) which is of a perishable nature may, under the orders of the Health Officer or the Assistant Health Officer, forthwith be destroyed if, in his opinion, it is diseased, unwholesome or unfit for human food, drink or medicine, as the case may be. (3) Every animal, article, utensil, vessel or other thing seized under sub-section (1) shall, if it is not destroyed under sub-section (2), be taken before a Magistrate who shall give orders as to its disposal. (4) The owner or person in possession, at the time of seizure under sub-section (1), of any animal or carcass which is diseased or of any article or thing which is unwholesome or unfit for human food, drink or medicine, as the case may be, or is adulterated or is not what it is represented to be, or of any utensil or vessel which is of such kind or in such state as is described in clause (b) of sub-section (1), shall be punishable with fine which may extend to five thousand rupees, and the animal, article, utensil, vessel or other thing shall be liable to be forfeited to the Board or to be destroyed or to be so disposed of as to prevent it being exposed for sale or used for the preparation of food, drink or medicine, as the case may be. 89 ----- _Explanation I.—If any such article, having been exposed or stored in, or brought to, any place_ mentioned in sub-section (1) for sale as ghee, contains any substance not exclusively derived from milk, it shall be deemed, for the purposes of this section, to be an article which is not what it is represented to be. _Explanation II.—Meat subjected to the process of blowing shall be deemed to be unfit for human_ food. _Explanation III.—The article of food or drink shall not be deemed to be other than what it is_ represented to be merely by reason of the fact that there has been added to it some substance not injurious to health: Provided that— (a) such substance has been added to the article because the same is required for the preparation or production thereof as an article of commerce in a state fit for carriage or consumption and not fraudulently to increase the bulk, weight or measure of the food or drink or conceal the inferior quality thereof; or (b) in the process of production, preparation or conveyance of such article of food or drink, the extraneous substance has unavoidably become intermixed therewith; or (c) the owner or person in possession of the article has given sufficient notice by means of a label distinctly and legibly written or printed thereon or therewith, or by other means of a public description, that such substance has been added; or (d) such owner or person has purchased the article with a written warranty that it was of a certain nature, substance and quality and had no reason to believe that it was not of such nature, substance and quality, and has exposed it or hawked it about or brought it for sale in the same state and by the same description as that in and by which he purchased it. _Import of cattle and flesh_ **284. Import of cattle and flesh.—(1) No person shall, without the permission in writing of the Chief** Executive Officer, bring into a cantonment any animal intended for human consumption, or the flesh of any animal slaughtered outside the cantonment otherwise than in a slaughter-house maintained by the Central Government or the State Government or the Board: Provided that the Chief Executive Officer shall not grant such permission unless he has considered the recommendation of the Health Officer made this behalf. (2) Any animal or flesh brought into a cantonment in contravention of sub-section (1) may be seized by the Chief Executive Officer or by any official of the Board and sold or otherwise disposed of as the President of the Board may direct, and, if it is sold, the sale proceeds may be credited to the cantonment fund. (3) Whoever contravenes the provisions of sub-section (1) shall be punishable with fine which may extend to two thousand five hundred rupees. (4) Nothing in this section shall be deemed to apply to cured or preserved meat or to animals driven or meat carried through a cantonment for consumption outside thereof, or to meat brought into a cantonment by any person for his immediate domestic consumption: Provided that the Board may, by public notice, direct that the provisions of this section shall apply to cured or preserved meat of any specified description or brought from any specified place. CHAPTER XII SPIRITUOUS LIQUORS AND INTOXICATING DRUGS **285. Unauthorised sale of spirituous liquor or intoxicating drug.—If within a cantonment, or** within such limit sad joining a cantonment as the Central Government may, by notification in the Official Gazette, define, any person not subject to Army, Navy or Air Force law, or any person subject to Army, Navy or Air Force law, otherwise than as a military officer or a soldier knowingly barters, sells or 90 ----- supplies, or offers or attempts to barter, sell or supply, any spirituous liquor or intoxicating drug to or for the use of any soldier or soldier's wife or minor child without the written permission of the Officer Commanding the station, or of some person authorised by the Officer Commanding the station, to grant such permission, he shall be punishable with fine which may extend to five thousand rupees, or with imprisonment for a term which may extend to six months, or with both. **286. [Unauthorised possession of spirituous liquor.]—Omitted by the Jan Vishwas (Amendment of** _Provisions) Act, 2023 (18 of 2023), s. 2 and Schedule (w.e.f. 2-11-2023)._ **1[287. Arrest of persons, seizure and confiscation of things for offences under section 285.— (1)** Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), any police officer or excise officer may, without an order from a Judicial Magistrate, and without a warrant, arrest any person who commits an offence under section 285 and may seize and detain any spirituous liquor or intoxicating drug in respect of which an offence under section 285 has been committed and any vessels or coverings in which the liquor or drug is contained. (2) Where a person accused of an offence under section 285 has been previously convicted of an offence under that section, an officer in charge of a police station may, with the written permission of a Judicial Magistrate, seize and detain any spirituous liquor or intoxicating drug within the cantonment or within any limits defined under that section which, at the time of the alleged commission of the subsequent offence, belonged to, or was in the possession of, such person. (3) The court convicting a person of an offence under section 285 may order the confiscation of the whole or any part of anything seized under sub-section (1) or sub-section (2). (4) Subject to the provisions of Chapter XXXIV of the Code of Criminal Procedure, 1973 (2 of 1974) anything, seized under sub-section (1) or sub-section (2) and not confiscated under sub-section (3) shall be restored to the person from whom it was taken.] **288. Saving of articles sold or supplied for medicinal purposes.—The foregoing provisions of this** Chapter shall not apply to the sale or supply of any article in good faith for medicinal purposes by a medical practitioner, chemist or druggist authorised in this behalf by a general or special order of the Officer Commanding the station. CHAPTER XIII PUBLIC SAFETY AND SUPPRESSION OF NUISANCES _General Nuisances_ **289. Penalty for causing nuisances.—(1) Whoever—** (a) in any street or other public place within a cantonment,— (i) is drunk and disorderly or drunk and incapable of taking care of himself; or (ii) uses any threatening, abusive or insulting words, or behaves in a threatening or insulting manner with intent to provoke a breach of the peace, or whereby a breach of the peace is likely to be occasioned; or (iii) eases himself, or wilfully or indecently exposes his person; or (iv) loiters, or begs importunately, for alms; or (v) exposes or exhibits, with the object of exciting charity, any deformity or disease or any offensive sore or wound; or (vi) carries meat exposed to public view; or (vii) is found gaming; or (viii) pickets animals, or collects vehicles; or 1. Subs. by Act 18 of 2023, s. 2 and Schedule for section 287 (w.e.f. 2-11-2023). 91 ----- (ix) being engaged in the removal of night-soil or other offensive matter or rubbish, willfully or negligently permits any portion thereof to spill or fall, or neglects to sweep away or otherwise effectually to remove any portion thereof which may spill or fall in such street or place; or (x) without proper authority affixes upon any building, monument, post, wall, fence, tree or other thing, any bill, notice or other document; or (xi) without proper authority defaces or writes upon or otherwise marks any building, monument, post, wall, fence, tree or other thing; or (xii) without proper authority removes, destroys, defaces or otherwise obliterates any notice or other document put up or exhibited under this Act; or (xiii) without proper authority displaces, damages, or makes any alteration in, or otherwise interferes with the pavement, gutter, storm water-drain, flags or other materials of any such street, or any lamp, bracket, direction-post, hydrant or water-pipe maintained by the Board in any such street or public place, or extinguishes a public light; or (xiv) carries any corpse not decently covered or without taking due precautions to prevent risk of infection or injury to the public health or annoyance to passers-by or to persons dwelling in the neighbourhood; or (xv) carries night-soil or other offensive matter or rubbish at any hour prohibited by the Chief Executive Officer by public notice, or in any pattern of vehicle or receptacle which has not been approved for the purpose by the Chief Executive Officer, or fails to close such vehicle or receptacle when in use; or (b) carries night-soil or other offensive matter or rubbish along any route in contravention of any prohibition made in this behalf by the Chief Executive Officer by public notice; or (c) deposits, or causes or permits to be deposited, earth or materials of any description, or any offensive matter or rubbish, in any place not intended for the purpose in any street or other public place or waste or unoccupied land under the management of the Board; or (d) having charge of a corpse fails to bury, burn or otherwise lawfully dispose of the same within twenty-four hours after death; or (e) makes any grave or buries or burns any corpse in any place not set apart for such purpose; or (f) keeps or uses, or knowingly permits to be kept or used, any place as a common gaming house, or assists in conducting the business of any common gaming house; or (g) at any time or place at which the same has been prohibited by the Chief Executive Officer public or special notice, beats a drum or tom-tom, or blows a horn or trumpet, or beats any utensil, or sounds any brass or other instrument, or plays any music; or (h) disturbs the public peace or order by singing, screaming or shouting or by using megaphone or loud-speaker; or (i) lets loose any animal so as to cause, or negligently allows any animal to cause, injury, danger, alarm or annoyance to any person; or (j) being the occupier of any building or land in or upon which an animal dies, neglects within three hours of the death of the animal, or, if the death occurs at night, within three hours after sunrise, either— 92 ----- (i) to report the occurrence to the Chief Executive Officer or to an officer, if any, appointed by him in this behalf with a view to securing the removal and disposal of the carcass by the public conservancy establishment; or (ii) to remove and dispose of the carcass in accordance with any general directions given by the Board by public notice or any special direction given by the Chief Executive Officer on receipt of such report as aforesaid; or (k) save with the written permission of the Chief Executive Officer and in such manner as he may authorise, stores or uses night-soil, manure, rubbish or any other substance emitting an offensive smell; or (l) uses or permits to be used as a latrine any place not intended for the purpose; or (m) uses or permits to be used without previous permission of the Chief Executive Officer any premises for any trade involving offensive smell or smoke, shall be punishable with fine which may extend to two thousand five hundred rupees. (2) Whoever does not take reasonable means to prevent any child under the age of twelve years being in his charge from easing himself in any street or other public place within the cantonment shall be punishable with fine which may extend to two hundred-fifty rupees. (3) The owner or keeper of any animal found picketed or staying without a keeper in a street or other public place in a cantonment shall be punishable with fine which may extend to one thousand rupees. (4) Any animal found picketed or straying as aforesaid may be removed by any officer or employee of the Board to a pound. 1* - - - _Dogs_ **290. Registration and control of dogs.—(1) A Board may make bye-laws to provide for the** registration of all dogs kept within the cantonment. (2) Such bye-laws shall— (a) require the registration, by any officer authorised in this behalf of all dogs kept in the cantonment; (b) require that every registered dog shall wear a collar to which shall be attached a metal token to be issued by the registration authority, and fix the fee payable for the issue thereof; (c) require that any dog which has not been registered or which is not wearing such token shall, if found in any public place, be detained at a place set apart for the purpose; and (d) fix the fee which shall be charged for such detention and provide that any such dog shall be liable to be destroyed or otherwise disposed of unless it is claimed and the fee in respect thereof is paid within one week; and may provide for such other matters as the Board thinks fit. (3) The Chief Executive Officer may— (a) cause to be destroyed, or to be confined for such period as he may direct, any dog or other animal which is, or is reasonably suspected to be, suffering from rabies, or which has been bitten by any dog or other animal suffering or suspected to be suffering from rabies; (b) by public notice direct that, after such date as may be specified in the notice, dogs which are without collars or without marks distinguishing them as private property and are found straying on the streets or beyond the enclosures of the houses of their owners, if any, may be destroyed, and cause them to be destroyed accordingly. 1. Sub-section (5) omitted by Act 18 of 2023, s. 2 and Schedule (w.e.f. 2-11-2023). 93 ----- (4) No damages shall be payable in respect of any dog or other animal destroyed or otherwise disposed of under this section. (5) Whoever, being the owner or person in charge of any dog, neglects to restrain it so that it shall not be at large in any street without being muzzled and without being secured by a chain lead in any case in which— (a) he knows that the dog is likely to annoy or intimidate any person; or (b) the Board has, by public notice during the prevalence of rabies, directed that dogs shall not be at large without muzzles and chain leads, shall be punishable with fine which may extend to one thousand rupees. (6) Whoever in a cantonment— (a) allows any ferocious dog which belongs to him or is in his charge to be at large without being muzzled; or (b) sets on or urges any dog or other animal to attack, worry or intimidate any person; or (c) knowing or having reason to believe that any dog or animal belonging to him or in his charge has been bitten by an animal suffering or reasonably suspected to be suffering from rabies, neglects to give immediate information of the fact to the Chief Executive Officer or gives information which is false, shall be punishable with fine which may extend to two thousand rupees. _Traffic_ **291. Traffic rule of the road.—Whoever in driving, leading or propelling a vehicle along a street** fails, except in a case of actual necessity,— (a) to keep to the left when passing a vehicle coming from the opposite direction; or (b) to keep to the right when passing a vehicle going in the same direction as himself, shall be punishable with fine which may extend to five hundred rupees. _Prevention of fire, etc._ **292. Use of inflammable materials for building purposes.—(1) The Chief Executive Officer may,** by public notice, direct that within such limits in the cantonment as may be specified in the notice, the roofs and external walls of huts or other buildings shall not, without the permission in writing of the Chief Executive Officer be made or renewed of grass, mats, leaves or other inflammable materials, and may, by notice in writing, require any person who has disobeyed any such direction as aforesaid to remove or alter the roofs or walls so made or renewed. (2) The Chief Executive Officer may, by notice in writing, require the owner of any building in the cantonment which has an external roof or wall made of any such material as aforesaid to remove such roof or wall within such time as may be specified in the notice, notwithstanding that a public notice under sub-section (1) has not been issued or that such roof or wall was made with the consent of the Chief Executive Officer or before the issue of such public notice: Provided that, in the case of any such roof or wall in existence before the issue of such a public notice or made with the consent of the Chief Executive Officer, it shall make compensation, not exceeding the original cost of constructing the roof or wall, for any damage caused by the removal. **293. Stacking or collecting inflammable materials.—A Board may, by a public notice, prohibit in** any case where such prohibition appears to it to be necessary for the prevention of danger to life or property, the stacking or collecting of wood, dry grass, straw or other inflammable materials, or the placing of mats or thatched huts or the lighting of fires in any place in the cantonment, or within any limits therein, which may be specified in the notice: 94 ----- Provided that Chief Executive Officer may, in case of imminent danger to public life or property, enforce such prohibition in consultation with the President or the Vice-President in the absence of the President. **294. Care of naked lights.—No person shall set a naked light on or near any building in any street or** other public place in a cantonment in such manner as to cause danger of fire: Provided that nothing in this section shall be deemed to prohibit the use of lights for purpose of illumination on the occasion of a festival or public or private entertainment. **295. Regulation of cinematographic and dramatic performances.—(1) Notwithstanding anything** contained in any other law relating to sanctioning of cinematograph films for exhibition, no exhibition of pictures or other optical effects by means of a cinematograph or other like apparatus for the purpose of which inflammable films are used, and no public dramatic performance, pantomime, circus, carnival, exhibition, dance or other similar show for public recreation or amusement, shall be given in any cantonment elsewhere than in premises for which a licence has been granted by the Chief Executive Officer under this section. (2) If the owner of a cinematograph or other apparatus uses the apparatus or allows it to be used, or if any person takes any part in any public dramatic performance, pantomime, circus, carnival, exhibition, dance or other similar show for public recreation or amusement, in contravention of the provisions of this section, or if the occupier of any premises allows them to be used in contravention of the provisions of this section or of any condition of any licence granted under this section, he shall be punishable with fine which may extend to five thousand rupees, and, in the case of continuing offence, with an additional fine which may extend to two thousand rupees for each day after the first during which the offence continues. (3) Nothing in this section shall be deemed to prohibit the giving of any exhibition or any dramatic performance, pantomime, circus, carnival, exhibition, dance or other similar show for public recreation or amusement, in any theatre or institute which is the property of Government where the exhibition, performance, pantomime, circus, carnival, exhibition, dance or other similar show for public recreation or amusement, is held with the permission and under the control of the military authorities. **296. Discharging fire-works, fire-arms, etc.—Whoever in a cantonment discharges any fire-arm or** lets off fire-works or fire-balloons, or detonates or engages in any game or carries on works such as quarries, blasts, timber cutting or building operation in such manner as to cause or to be likely to cause danger to persons passing by or dwelling or working in the neighbourhood or risk of injury to property shall be liable to fine which may extend to two thousand five hundred rupees. **297. Power to require buildings, wells, etc., to be rendered safe.—Where in a cantonment any** building, or wall, or anything affixed thereto, or any well, tank, reservoir, pool, depression, or excavation, or any bank or tree, is in the opinion of the Chief Executive Officer, in a ruinous state or, for want of sufficient repairs, protection or enclosure, a nuisance or dangerous to persons passing by or dwelling or working in the neighbourhood, the Chief Executive Officer, by notice in writing may, require the owner, or part-owner or person claiming to be the owner or part-owner thereof, or, failing any of them, the occupier, thereof, to remove the same or may require him to repair, or to protect or to enclose, the same in such manner as the thinks necessary; and, if the danger is, in the opinion of the Chief Executive Officer, imminent, he shall forthwith take such steps as he thinks necessary to avert the same. **298. Enclosure of wasteland used for improper purposes.—The Chief Executive Officer may, by** notice in writing, require the owner or part-owner, or person claiming to be the owner or part-owner, of any building or land in the cantonment, or the lessee or the person claiming to be the lessee of any such land, which, by reason of disuse or disputed ownership or other cause, has remained unoccupied and has become the resort of idle and disorderly persons or of persons who have no ostensible means of subsistence or cannot give a satisfactory account of themselves, or is used for gaming or immoral purposes, or otherwise occasions or is likely to occasion a nuisance, to secure and enclose the same within such time as may be specified in the notice. 95 ----- CHAPTER XIV REMOVAL AND EXCLUSION FROM CANTONMENTS AND SUPPRESSION OF SEXUAL IMMORALITY **299. Power to remove brothels and prostitutes—The Officer Commanding the Station or the Board** may, on receiving information that any building in the cantonment is used as a brothel or for purposes of prostitution, by order in writing setting forth the substance of information received, summon the owner, lessee, tenant or occupier of the building to appear before him or the Board as the case may be either in person or by an authorised agent, and, if the Officer Commanding the Station or the Board, is then satisfied as to the truth of the information, may, by order in writing, direct the owner, lessee, tenant or occupier, as the case may be, to discontinue such use of the building within such period as may be specified in the order. **300. Penalty for loitering and importuning for purposes of prostitution.—(1) Whoever in a** cantonment loiters for the purpose of prostitution or importunes any person to the commission of sexual immorality, shall be punishable with imprisonment which may extend to three months, or with fine which may extend to five thousand rupees and in case of subsequent offence shall be punishable with imprisonment which may extend to one year. (2) No prosecution for an offence under this section shall be instituted except on the complaint of the person importuned, or of a military officer in whose presence the offence was committed, or of a member of the Military, Naval or Air Force Police, being employed in the cantonment and authorised in this behalf by the Officer Commanding the Station, in whose presence the offence was committed, or of a police officer not below the rank of Assistant Sub-Inspector, who is deployed in the cantonment and authorised in this behalf by the Officer Commanding the Station with the concurrence of District Magistrate. **301. Removal of persons from cantonment.—If the Officer Commanding the Station or the Board** is, after such inquiry as he or it thinks necessary, satisfied that any person residing in or frequenting the cantonment is a prostitute or has been convicted of an offence, under section 300, or of the abetment of such an offence he or, as the case may be, the Board may cause to be served on such person an order in writing requiring such person to remove from the cantonment within such time as may be specified in the order, and prohibiting such person from re-entering it without the permission in writing of the Officer Commanding the Station or the Board. **302. Removal and exclusion from cantonment of disorderly persons.—(1) A Judicial Magistrate** of the First Class, having jurisdiction in a cantonment, on receiving information that any person residing in or frequenting the cantonment— (a) is a disorderly person who has been convicted more than once of gaming or who keeps or frequents, a common gaming house, a disorderly drinking shop or a disorderly house of any other description; or (b) has been convicted more than once either within the cantonment or elsewhere, of an offence punishable under Chapter XVII of the Indian Penal Code (45 of 1860); or (c) has been ordered under Chapter VIII of the Code of Criminal Procedure,1973 (2 of 1974) either within the cantonment or elsewhere to execute a bond for his good behaviour, may record in writing the substance of the information received, and may issue a summon to such person requiring him to appear and show cause why he should not be required to remove from the cantonment and be prohibited from re-entering it. (2) Every summons issued under sub-section (1) shall be accompanied by a copy of the record aforesaid and the copy shall be served along with the summons on the person against whom the summon is issued. (3) The Magistrate shall, when the person so summoned appears before him, proceed to inquire into the truth of the information received and take such further evidence as he thinks fit, and if upon such inquiry it appears to him that such person is a person of any kind described in sub-section (1) and that it is necessary for the maintenance of good order in the cantonment that such person is required to be removed therefrom and be prohibited from re-entering the cantonment, the Magistrate shall inform the matter to the 96 ----- Officer Commanding the Station and, the Officer Commanding the Station shall cause to be served on such person an order in writing requiring him to remove from the cantonment within such time as may be specified in the order and prohibiting him from re-entering it without the permission in writing of the Officer Commanding the Station. **303. Removal and exclusion from cantonment of seditious persons.—(1) If any person in a** cantonment causes or attempts to cause or does any act which he knows is likely to cause disloyalty; disaffection or breach of discipline amongst any portion of the forces or is a person who, the Officer Commanding the Station has reason to believe, is likely to do any such act, the Officer Commanding the Station may make an order in writing setting forth the reasons for making of the same and requiring such person to remove from the cantonment within such time as may be specified in the order and prohibiting him from re-entering it without the permission in writing of the Officer Commanding the Station: Provided that no order shall be made under this section against any person unless he has had a reasonable opportunity of being informed of the grounds on which it is proposed to make the order and of showing cause why the order should not be made. (2) Every order made under sub-section (1) shall be sent to the Superintendent of Police of the District, who shall cause a copy thereof to be served on the person concerned. (3) Upon the making of any order under sub-section (1), the Officer Commanding the Station shall forthwith send a copy of the same to the Central Government. (4) The Central Government may of its own motion and shall on application made to it in this behalf within one month of the date of the order by the person against whom the order has been made, call upon the District Magistrate to make after such inquiry as the Central Government may prescribe a report regarding the justice of the order and the necessity therefor: Provided that at every such inquiry the person against whom the order has been made shall be given an opportunity of being heard in his own defence. (5) The Central Government may, at any time after the receipt of the copy of an order sent under sub-section (3) or where a report has been called for under sub-section (4), on receipt of that report, if it is of opinion that the order should be varied or rescinded, make such orders thereon as it thinks fit. (6) Any person who has been excluded from a cantonment by an order made under this section may, at any time after the expiry of one month from the date thereof, apply to the General Officer Commanding-in-Chief, the Command for the rescission of the same and, on such application being made, the said Officer may, after making such inquiry, if any, as he thinks necessary, either reject the application or rescind the order. **304. Penalty.—Whoever—** (a) fails to comply with an order issued under this Chapter within the period specified therein or whilst an order prohibiting him from re-entering a cantonment without permission is in force, re-enters the cantonment without such permission; or (b) knowing that any person has, under this Chapter been required to remove from the cantonment and has not obtained the requisite permission to re-enter it, harbours or conceals such person in the cantonment, shall be punishable with fine which may extend to five thousand rupees and in case of continuing offence with an additional fine which may extend to five hundred rupees for every day after the first during which he has persisted in the offence. CHAPTER XV POWERS, PROCEDURES, PENALTIES AND APPEALS _Entry and inspection_ **305. Powers of entry.—It shall be lawful for the President or the Vice-President of a Board, or the** Chief Executive Officer, or the Health Officer or any person specially authorised by the Chief Executive 97 ----- Officer, or the Health Officer or for any other person authorised by general or special order of a Board in this behalf, to enter into or upon any building or land with or without assistants or workmen in order to make any inquiry, inspection, measurement, valuation or survey, or to execute any work, which is authorised by or under this Act or which it is necessary to make or execute for any of the purposes or in pursuance of any of the provisions of this Act or of any rule, bye-law or order made thereunder: Provided that nothing in this section shall be deemed to confer upon any person any power such as is referred to in section 274 or section 283 or to authorise the conferment upon any person of any such power. **306. Power of inspection by member of a Board.—A Board may by special order authorise or order** any member to inspect any work or institution constructed or maintained, in whole or part, at the expense of the Board, and any register, book accounts or other documents belonging to, or in the possession of, the Board. **307. Power of inspection, etc.—(1) A Board or the Chief Executive Officer may, by general or** special order, authorise any person— (a) to inspect any drain, privy, latrine, urinal, cesspool, pipe, sewer or channel in or on any building or land in the cantonment, and, in his discretion, to cause, the ground to be opened for the purpose of preventing or removing any nuisance arising from the drain, privy, latrine, urinal, cesspool, pipe, sewer or channel, as the case may be; (b) to examine works under construction in the cantonment, to take levels or to remove, test, examine, replace or read any meter. (2) If, on such inspection, the opening of the ground is found to be necessary for the prevention or removal of a nuisance, the expenses thereby incurred shall be paid by the owner or occupier of the land or building, but if it is found that no nuisance exists or but for such opening would have arisen, the ground or portion of any building, drain or other work opened, injured or removed for the purpose of such inspection shall be filled in, reinstated, or made good, as the case may be by the Board or the Chief Executive Officer. **308. Power to enter land, adjoining land where work is in progress.—(1) The Chief Executive** Officer of a cantonment may, with or without assistants or workmen, enter on any land within fifty yards of any work authorised by or under this Act for the purpose of depositing thereon any soil, gravel, stone or other materials, or of obtaining access to such work, or for any other purpose connected with the carrying on of the same. (2) The Chief Executive Officer shall, before entering on any land under sub-section (1), give the occupier, or, if there is no occupier, the owner not less than three day's previous notice in writing of his intention to make such entry, and shall state the purpose thereof, and shall, if so required by the occupier or owner, fence off so much of the land as may be required for such purpose. (3) The Chief Executive Officer shall, in exercising any power conferred by this section, do as little damage as may be, and compensation shall be payable by the Board to the owner or occupier of such land, or to both, for any such damage whether permanent or temporary. **309. Breaking into premises.—It shall be lawful for any person, authorised by or under this Act to** make any entry into any place, to open or cause to be opened any door, gate or other barrier— (a) if he considers the opening thereof necessary for the purpose of such entry; and (b) if the owner or occupier is absent, or being present refuses to open such door, gate or barrier. **310. Entry to be made in the day time.—Save as otherwise expressly provided in this Act, no entry** authorised by or under this Act shall be made except between the hours of sunrise and sunset. **311. Owner's consent ordinarily to be obtained.—Save as otherwise expressly provided in this Act,** no building or land shall be entered without the consent of the occupier, or if there is no occupier of the owner thereof, and no such entry shall be made without giving the said occupier or owner, as the case may be, not less than four hours, written notice of the intention to make such entry: 98 ----- Provided that no such notice shall be necessary if the place to be inspected is a factory or workshop or trade premises or a place used for carrying on any trade, calling or occupation specified in section 277 or a stable for horses or a shed for cattle or a latrine, privy or urinal or a work under construction, or for the purpose of ascertaining whether any animal intended for human food is slaughtered in that place in contravention of this Act or any bye-law made thereunder. **312. Regard to be had to social and religious usages.—When any place used as a human dwelling** is entered under this Act, due regard shall be paid to the social and religious customs and usages of the occupants of the place entered, and no apartment in the actual occupancy of a female shall be entered or broken open until she has been informed that she is at liberty to withdraw and every reasonable facility has been afforded to her for withdrawing. **313. Penalty for obstruction.—Whoever obstructs or molests any person acting on behalf of the** Board, who is not a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860) or any person with whom the Board has lawfully contracted, in the execution of his duty or of anything which he is empowered or required to do by virtue or in consequence of any of the provisions of this Act or any rule, bye-law or order made thereunder, or in fulfilment of his contract, as the case may be, shall be punishable with fine which may extend to five thousand rupees. _Powers and duties of police officers_ **314. Arrest without warrant.—Any member of the police force employed in a cantonment may,** without a warrant, arrest any person committing in his view a breach of any of the provisions of this Act which are specified in Schedule IV: Provided that— (a) [1]*** no person shall be so arrested who consents to give his name and address, unless there is reasonable ground for doubting the accuracy of the name or address so given, the burden of proof of which shall lie on the arresting officer, and no person so arrested shall be detained after his name and address have been ascertained; and (b) no person shall be so arrested for an offence under section 300 except— (i) at the request of the person importuned, or of a military officer in whose presence the offence was committed; or (ii) by or at the request of a member of the Military, Naval or Air Force Police, who is employed in the cantonment and authorised in this behalf by the Officer Commanding the Station, and in whose presence the offence was committed or by or at the request of any police officer not below the rank of assistant sub-inspector who is deployed in the cantonment and authorised in this behalf by the Officer Commanding the station. **315. Duties of police officers.—It shall be the duty of all police officers to give immediate** information to the Board of the commission of, or attempt to commit any offence against the provisions of this Act or of any rule or bye-law made thereunder, and to assist all cantonment officers and employees in the exercise of their lawful authority. _Notices_ **316. Notices to fix reasonable time.—Where any notice, order or requisition made under this Act or** any other rule or bye-law made thereunder requires anything to be done for the doing of which no time is fixed in this Act or in the rule or bye-law, the notice, order or requisition shall specify a reasonable time for doing the same. **317. Authentication and validity of notices issued by Board.—(1) Every notice, order or** requisition issued by a Board under this Act or any rule or bye law made thereunder shall be signed— 1. Certain words omitted by Act 18 of 2023, s. 2 and Schedule (w.e.f. 2-11-2023). 99 ----- (a) either by the President of the Board or by the Chief Executive Officer; or (b) by the members of any committee especially authorised by the Board in this behalf. (2) Whenever under this Act or any rule or bye-law made thereunder the doing of, or the omission to do, anything or the validity of anything depends upon the approval, sanction, consent, concurrence, declaration, opinion or satisfaction of the Board, a written document signed by any officer or member specified in sub-section (1) purporting to convey or set-forth such approval, sanction, consent, concurrence, declaration, opinion or satisfaction shall be sufficient evidence thereof. (3) Every license, written permission, notice, bill summons or other document which is required by this Act or any rule or bye-law made thereunder to bear the signature of the President, Vice-President or the Chief Executive Officer, or of any such member of any committee as has been specially authorised by the Board in this behalf shall be deemed to be properly signed if it bears facsimile of the signature of any such officer or member, as the case may be, stamped thereon. **318. Service of notice, etc.—(1) Every notice, order or requisition issued under this Act or any rule** or bye-law made thereunder shall, save as otherwise expressely provided, be served or presented— (a) by giving or tendering the notice, order or requisition, or sending it by post, to the person for whom it is intended; or (b) if such person cannot be found, by affixing the notice order or requisition on some conspicuous part of his last known place of abode or business, if within the cantonment, or by giving or tendering the notice, order or requisition to some adult member or servant or his family, or by causing it to be affixed on some conspicuous part of the buildings or land, if any, to which it relates. (2) When any such notice, order or requisition is required or permitted to be served upon an owner, lessee or occupier of any building or land, it shall not be necessary to name the owner, lessee or occupier therein, and the service thereof shall, save as otherwise expressly provided, be effected either— (a) by giving or tendering the notice, order or requisition, or sending it by post, to the owner, lessee or occupier, or, if there are more owners, lessees, or occupiers than one to any one of them; or (b) if no such owner, lessee or occupier can be found, by giving or tendering the notice, order or requisition to the authorised agent, if any, of any such owner, lessee or occupier, or to an adult member or servant of the family of any such owner, lessee, occupier, or by causing it to be affixed on some conspicuous part of the building or land to which it relates. (3) When the person on whom a notice, order or requisition is to be served is a minor, service upon his guardian or upon an adult member or servant of his family shall be deemed to be service upon the minor. **319. Method of giving notice.—Every notice which, by or under this Act, is to be given or served as** a public notice or as a notice which is not required to be given to any individual therein specified shall, save as otherwise expressly provided, be deemed to have been sufficiently given or served if a copy thereof is affixed in such conspicuous part of the office of the Board or in such other public place during such period, or is published in such local newspaper or in such other manner, as the Board may direct. **320. Powers of Board in case of non-compliance with notice, etc.—In the event of non-compliance** with the terms of any notice, order or requisition issued to any person under this Act or any rule or bye-law made thereunder, requiring such person to execute any work or to do any act, it shall be lawful for the Board, or the civil area committee or the Chief Executive Officer at whose instance the notice, order or requisition has been issued whether or not the person in default is liable to punishment for such default or has been prosecuted or sentenced to any punishment therefor, after giving notice in writing to such person, to take such action or such steps as may be necessary for the completion of the act or work required to be done or executed by him, and all the expenses incurred on such account shall be recoverable by the Chief Executive Officer on demand, and if not paid within ten days after such demand, shall be recoverable in the same manner as moneys recoverable by the Board under section 324: Provided that where the action or step relates to the demolition of any erection or re-erection under section 248 or the removal of any projection or encroachment under section 252, the Board or the civil 100 ----- area committee or the Chief Executive Officer may request any police officer to render such assistance as considered necessary for the lawful exercise of any power in this regard and it shall be the duty of such police officer to render forthwith such assistance on such requisition. **321. Occupier not to obstruct owner when complying with notice.—If the owner of any property** in respect of which a notice as is referred to in section 320 has been given is prevented by the occupier from complying with such notice, the Board or civil area committee or the Chief Executive Officer at whose instance such notice has been given, may, by order, require the said occupier to permit the owner within eight days from the date of service of such notice to take all such actions as may be necessary to comply with the said notice and such owner shall, for the period during which he is prevented as aforesaid, be exempt from any fine or penalty to which he might otherwise have become liable by reason of non-compliance with such notice. _Recovery of Money_ **322. Liability of occupier to pay in default of owner.—(1) If any such notice as is referred to in** section 320 has been given to any person in respect of property of which he is the owner, and he fails to comply with the notice so given, the Board or the civil area committee or the Chief Executive Officer at whose instance such notice has been issued may require any occupier of such property or of any part thereof to pay to it or him instead of to the owner any rent payable by him in respect of such property, as it falls due, up to the amount recoverable from the owner under section 320: Provided that if the occupier, on application made to him by the Board or the civil area committee or the Chief Executive Officer at whose instance such notice has been issued, refuses to truly disclose the amount of his rent or the name or address of the person to whom it is payable, the Chief Executive Officer may recover from the occupier the whole amount recoverable under section 320 in the same manner as money is recoverable by the Board under section 324. (2) Any amount recovered from an occupier instead of from an owner under sub-section (1) shall, in the absence of any contract between the owner and the occupier to the contrary, be deemed to have been paid to the owner. **323. Relief to Agents and Trustees.—(1) Where any person, by reason of his receiving the rent of** immovable property as an agent or trustee, or of his being as an agent or trustee the person who would receive the rent if the property were let to a tenant, would under this Act be bound to discharge any obligation imposed on the owner of the property for the discharge of which money is required, he shall not be bound to discharge the obligation unless he has or but for his own improper act or default might have had funds in his hands belonging to the owner sufficient for the purpose. (2) The burden of proving any fact entitling an agent or trustee to relief under sub-section (1) shall lie upon him. (3) Where any agent or trustee has claimed and established his right to relief under this section, the Board may, by notice in writing, require him to apply to the discharge of such obligation as aforesaid the first monies which may come to his hands on behalf, or for the use, of the owner and on failure to comply with the notice, he shall be deemed to be personally liable to discharge the obligation. **324. Method of recovery.—(1) Notwithstanding anything elsewhere contained in this Act arrears of** any tax, and any other money recoverable, including rent on land and buildings due or damages and fine due under leases or licences executed by or in favour of a Board or the Defence Estates Officer under this Act or the rules made thereunder may be recovered together with the cost of recovery either by suit or on application to a Judicial Magistrate having jurisdiction in the cantonment or in any place where the person from whom such tax, rent or money is recoverable may for the time being be residing, either by the distress and sale of movable property of such person, or by the attachment and sale of immovable property of that person, which is within the limits of the jurisdiction of such Judicial Magistrate, or by both these methods, and shall, if payable by the owner of any property as such, be a charge on the property until paid : 101 ----- Provided that the tools of artisans, growing crops up to the value of five thousand rupees and implements and cattle used for the purposes of agriculture shall be exempt from such distress or sale. (2) An application to a Judicial Magistrate under sub-section (1) shall be in writing and shall be signed by the President or Vice-President of the Board or by the Chief Executive Officer or the Defence Estates Officer or the Officer Commanding the Station or any other officer authorised by any of these officers, but shall not require to be personally presented. (3) Upon receiving the application, the Judicial Magistrate referred to in sub-section (1) may take action for the recovery of the amount of tax, rent or money from the person specified in the application as if such amount were a fine recoverable under a sentence passed by him and the provisions of sections 421 and 422 of the Code of Criminal Procedure, 1973 (2 of 1974), shall, so far as may be, apply to the recovery of such amount: Provided that the recovery of no such amount shall be made by the arrest or detention in prison of the said person. _Committees of Arbitration_ **325. Application for a Committee of Arbitration.—In the event of any disagreement as to the** liability of a Board to pay any compensation under this Act, or as to the amount of any compensation so payable, the person claiming such compensation may apply to the Board shall for the reference of the matter to a Committee of Arbitration, and the Board shall forthwith proceed to convene a Committee of Arbitration to determine the matter in dispute. **326. Procedure for convening Committee of Arbitration.—When a Committee of Arbitration is to** be convened, the Board shall cause a public notice to be published stating the matter to be determined, and shall forthwith send copies of the order to the District Magistrate, and to the other party concerned, and shall, as soon as may be, nominate such members of the Committee as it is entitled to nominate under section 327, and by notice in writing call upon the other persons who are entitled to nominate a member or members of the Committee to nominate such member or members in accordance with provisions of that section. **327. Constitution of the Committee of Arbitration.—(1) Every Committee of Arbitration shall** consist of five members, namely:— (a) a Chairman who shall be a person not in the service of the Government or the Board, and who shall be nominated by the Officer Commanding the Station; (b) two persons nominated by the Board; (c) two persons nominated by the other party concerned. (2) If the Board or the other party concerned or the Officer Commanding the Station fails within seven days of the date of issue of the notice referred to in section 326 to make any nomination which it or he is entitled to make or if any member who has been so nominated neglects or refuses to act and the Board or other person by whom such member was nominated fails to nominate another member in his place within seven days from the date on which it or he may be called upon to do so by the District Magistrate, the District Magistrate shall forthwith appoint a member or members, as the case may be, to fill the vacancy or vacancies. **328. No person to be nominated who has direct interest or whose services are not immediately** **available.—(1) No person who has a direct interest in the matter under reference, or whose services are** not immediately available for the purposes of the Committee shall be nominated a member of the Committee of Arbitration. (2) If, in the opinion of the District Magistrate any person who has been nominated has a direct interest in the matter under reference or is otherwise disqualified for nomination or if the services of any such person are not immediately available as aforesaid and if the Board or the other person by whom any such person was nominated fails to nominate another member within seven days from the date on which it 102 ----- or he may be called upon to do so by the District Magistrate, such failure shall be deemed to constitute a failure to make a nomination within the meaning of section 327. **329. Meetings and powers of Committee of Arbitration.—(1) When a Committee of Arbitration** has been duly constituted, the Board shall, by notice in writing inform each of the members of the fact, and the Committee shall meet as soon as may be thereafter. (2) The Chairman of the Committee shall fix the time and place of the meetings and shall have power to adjourn any meeting from time to time as may be necessary. (3) The Committee shall receive and record evidence, and shall have power to administer oaths to witnesses, and on requisition in writing signed by the Chairman of the Committee, the District Magistrate shall issue the necessary processes for the attendance of witnesses and the production of documents required by the Committee and may, enforce the said processes as if they were processes for attendance or production before himself. **330. Decisions of Committee of Arbitration.—(1) The decisions of every Committee of Arbitration** shall be in accordance with the majority of votes taken at a meeting at which the Chairman and at least three of the other members are present. (2) If there is not a majority of votes in favour of any proposed decision, the opinion of the Chairman shall prevail. (3) The decision of a Committee of Arbitration shall be final and shall not be questioned in any court. _Prosecutions_ **331. Prosecutions.—Save as otherwise expressly provided in this Act, no court shall proceed to the** trial of any offence made punishable by or under this Act, other than an offence specified in Schedule IV, except on the complaint of or upon information received from the Board concerned or a person authorised by the Board by a general or special order in this behalf. **332. Composition of offence.—(1)The Chief Executive Officer or any person authorised by him, by** general or special order in this behalf, may, before or after the institution of the proceedings, compound an offence, made punishable by or under this Act other than an offence under Chapter XIV: Provided that no offence shall be compoundable which is committed by failure to comply with a notice, order or requisition issued by or on behalf of the Chief Executive Officer, unless and until the same has been complied with in so far as compliance is possible. (2)Where an offence has been compounded, the offender, if in custody, shall be discharged and no further proceedings shall be taken against him in respect of the offence so compounded. _General Penalty Provisions_ **333. General penalty.—Whoever, in any case in which a penalty is not expressly provided by this** Act, fails to comply with any notice, order or requisition issued under any provision thereof, or otherwise contravenes any of the provisions of this Act, shall be punishable with fine which may extend to five thousand rupees, and, in the case of a continuing failure or contravention, with an additional fine which may extend to five hundred rupees for everyday after the first during which he has persisted in the failure or contravention. **334. Offences by companies.—(1) Where an offence under this Act has been committed by a** company, every person who, at the time the offence was committed, was in charge of, and was responsible to the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or 103 ----- connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against punished accordingly. _Explanation.—For the purposes of this section,—_ (a) “company” means any body corporate and includes a firm or other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm. **335. Cancellation or suspension of licences, etc.—Where any person to whom a licence or written** permission has been granted under this Act or any agent or servant of such person commits a breach of any of the conditions thereof, or of any bye-law made under this Act for the purpose of regulating the manner or circumstances in, or the conditions subject to, which anything permitted by such licence or written permission is to be or may be done, or where the Board or the civil area committee, as the case may be, is satisfied that such licence or written permission has been secured by the holder through misrepresentation or fraud, the Board or the civil area committee, as the case may be, may, without prejudice to any other penalty which may have been incurred under this Act, by order in writing, cancel the licence or written permission or suspend it for such period as it thinks fit: Provided that no such order shall be made unless an opportunity has been given to the holder of the licence or written permission to show cause why it should not be made. **336. Recovery of amount payable in respect of damage to cantonment property.—Where any** person has incurred a penalty by reason of having caused any damage to the property of a Board, he shall be liable to make good such damage, and the amount payable in respect of the damage shall, in case of dispute, be determined by the Judicial Magistrate by whom the person incurring such penalty is convicted, and, on non-payment of such amount on demand, the same shall be recovered either by the distress and sale of the movable property of such person, or by the attachment and sale of the immovable property of that person, or by both these methods and the Judicial Magistrate shall recover the amount in accordance with the provisions of sections 421 and 422 of the Code of Criminal Procedure, 1973 (2 of 1974) as if it were a fine recoverable under a sentence passed by him. _Limitation_ **337. Limitation for prosecution.—No court shall try any person for an offence made punishable by** or under this Act, after the expiry of six months from the date of the commission of the offence, unless complaint in respect of the offence has been made to a Judicial Magistrate within the six months aforesaid. _Suits_ **338. Protection of action of Board, etc.—No suit or prosecution shall be entertained in any court** against a Board or against the Chief Executive Officer, the Officer Commanding a station, Defence Estates Officer, Principal Director, General Officer Commanding in Chief, the Command, Director General Defence Estates, or against any member of a Board, or against any officer or employee of a Board, for anything which is in good faith done or intended to be done, under this Act or any rule or bye-law made thereunder. **339. Notice to be given of suits.—(1) No suit shall be instituted against any Board or against any** member of a Board, or against any officer or employee of a Board, in respect of any act done, or purporting to have been done, in pursuance of this Act or of any rule or bye-law made thereunder, until the expiration of two months after notice in writing has been left at the office of the Board, and, in the case of such member, officer or employee, unless notice in writing has also been delivered to him or left at his office or place of abode, and unless such notice states explicitly the cause of action, the nature of the relief sought, the amount of compensation claimed, and the name and place of abode of the intending plaintiff, and unless the plaint contains a statement that such notice has been so delivered or left. 104 ----- (2) If the Board or member, officer or employee has, before the suit is instituted, tendered sufficient amounts to the plaintiff, the plaintiff shall not recover any sum in excess of the amount so tendered, and shall also pay all costs incurred by the defendant after such tender. (3) No suit, such as is described in sub-section (1), shall, unless it is an action for the recovery of immovable property or for a declaration of title thereto, be instituted after the expiry of six months from the date on which the cause of action arises. (4) Nothing in sub-section (1) shall be deemed to apply to a suit in which the only relief claimed is an injunction of which the object would be defeated by the giving of the notice or the postponement of the institution of the suit or proceeding. _Appeals and Revision_ **340. Appeals from executive orders.—(1) Any person aggrieved by any order described in the third** column of Schedule V may appeal to the appellate authority specified in that behalf in the fourth column of the said Schedule. (2) The Central Government may, for the purposes of expeditious disposal of the pending appeals, by notification in the Official Gazette, amend Schedule V so as to designate additional appellate authority in the fourth column of the said Schedule. (3) No such appeal shall be admitted if it is made after the expiry of the period specified in that behalf in the fifth column of the said Schedule. (4) The period specified as aforesaid shall be computed in accordance with the provisions of the Limitation Act, 1963 (36 of 1963), with respect to the computation of periods of limitation thereunder. **341. Petition of Appeal.—(1) Every appeal under section 340 shall be made by petition in writing** accompanied by a copy of the order appealed against. (2) Any such petition may be presented to the authority which made the order against which the appeal is made, and that authority shall be bound to forward it to the appellate authority, and may attach thereto any report which it may desire to make by way of explanation. **342. Suspension of Action Pending Appeal.—On the admission of an appeal from an order, other** than an order contained in a notice issued under section 144, section 183, section 238, section 273 or section 302, where the appellate authority so directs, all proceedings to enforce the order and all prosecutions for any contravention thereof shall be held in abeyance pending the decision of the appeal, and, if the order is set aside on appeal, disobedience thereto shall not be deemed to be an offence. **343. Revision.—(1) Where an appeal from an order made by the Board has been disposed of by the** District Magistrate, either party to the proceedings may, within thirty days from the date thereof, apply through the General Officer Commanding-in-Chief, the Command to the Central Government, or to such authority as the Central Government may appoint in this behalf, for revision of the decision. (2) The provisions of this Chapter with respect to appeals shall apply, as far as may be, to the applications for revision made under this section. (3) The appellate authority shall make endeavours to dispose of the appeal made under section 340 of this Act within a period of ninety days. **344. Finality of the Appellate Orders.—Save as otherwise provided in section 343, every order of** appellate authority shall be final. **345. Right of appellant to be heard.—No appeal shall be decided under this Chapter unless the** appellant has been heard, or has had a reasonable opportunity of being heard in person or through a legal practitioner. 105 ----- CHAPTER XVI RULES AND BYE-LAWS **346. Power to make rules.—(1) The Central Government may, after previous publication, make** rules to carry out the purposes and objects of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the manner in which, and the authority to which, application for permission to occupy and belonging to the Government in a cantonment is to be made; (b) the authority by which such permission may be granted and the conditions to be annexed to the grant of any such permission; (c) the allotment to a Board of a share of the rents and profits accruing from property entrusted to its management under the provisions of section 63; (d) the appointment, promotion, transfer, tenure of office, salaries and allowances, provident funds, pensions, gratuities, leave of absence, discipline and other condition of service of employees of Boards; (e) the circumstances in which security shall be demanded from employees of Boards and the amount and nature of such security; (f) the keeping of accounts by Boards and the manner in which such accounts shall be audited and published; (g) the definition of the persons by whom, and the manner in which, money may be paid out of a cantonment fund or cantonment development fund; (h) the preparation of estimates of income and expenditure by Boards and the definition of the persons by whom, and the conditions subject to which, such estimates may be sanctioned; (i) the regulation of the procedure of Committees of Arbitration; (j) the prescribing of registers, statements and forms to be used and maintained by any authority for the purposes of this Act; (k) the grant of leave to the members of the Board; (l) the form of notices, required to be sent under this Act and the manner of their service; and (m) any other matter which is required to be, or may be prescribed. **347. Supplemental provisions respecting rules.—(1) A rule under section 346 may be made either** generally for all cantonments or for the whole or any part of any one or more cantonments. (2) The power to make rules under clause (c) of sub-section (2) of section 346 shall include power to give retrospective effect from a date not earlier than the date of commencement of the Cantonments Act, 2006, to the rules or any of them but no retrospective effect shall be given to any rule so as to prejudicially affect the interests of any person to whom such rule may be applicable: Provided that where any rule has to be given retrospective operation, the reasons therefor and the effect of giving such retrospective operation shall be published along with the draft of the rules when such draft is published for eliciting public opinion under sub-section (1) of section 346. (3) All rules made under this Act shall be published in the Official Gazette and in such other manner, if any, as the Central Government may direct and, on such publication, shall have effect as if enacted in this Act. (4) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in 106 ----- making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **348. Power to make bye-laws.—Subject to the provisions of this Act and of the rules made** thereunder, a Board may, in addition to any bye-laws which it is empowered to make by any other provision of this Act, make bye-laws to provide for all or any of the following matters in the cantonment, namely :— (1) the registration of births, deaths and marriages, and the taking of a census; (2) the enforcement of compulsory vaccination and inoculation and levy of fees where such vaccination or inoculation is carried out at the houses of residents; (3) the regulation of the collection and recovery of taxes, tolls and fees under this Act and the refund of taxes; (4) the regulation of any description of traffic in the streets and the enforcement of measures for the reduction of noise caused thereby or the prohibition of any description of such traffic; (5) the manner in which vehicles standing, driven, led or propelled in the streets between sunset and sunrise shall be lighted; (6) the seizure and confiscation of ownerless animals straying within the limits of the cantonments and regulation and control of cattle pounds; (7) the prevention and extinction of fire; (8) the construction of scaffolding for building operations to secure the safety of the general public and of persons working thereon; (9) the regulation in any manner not specifically provided for in this Act of the construction, alteration, maintenance, preservation, cleaning and repairs of drains, ventilation-shafts, pipes, water-closets, privies, latrines, urinals, cesspools and other drainage works; (10) the regulation or prohibition of the discharge into, or deposit in, drains of sewage, polluted water and other offensive or obstructive matter; (11) the regulation or prohibition of the stabling or herding of animals, or of any class of animals, so as to prevent danger to public health; (12) the proper disposal of corpses, the regulation and management of burial and burning places and other places for the disposal of corpses, and the fees chargeable for the use of such places where the same are provided or maintained by Government or at the expense of the cantonment fund; (13) the permission, regulation or prohibition of the use or occupation of any street or place by itinerant vendors or by any person for the sale of articles or the exercise of any calling or the setting up of any booth or stall, and the fees chargeable for such use or occupation; (14) the regulation and control of encamping grounds, sarais, hotels, dak-bangalows, lodging houses, boarding-houses, buildings let intenements, residential clubs, restaurants, eating-houses, cafes, refreshment-rooms, guest houses, holiday resorts, cinemas and places of public recreation, entertainment or resort; (15) the regulation of the ventilation, lighting, cleansing, drainage and water-supply of the buildings used for the manufacture or sale of aerated or other potable waters and of butter, milk, sweetmeats and other articles of food or drink for human consumption; (16) the matters regarding which conditions may be imposed by licences granted under section 295 or section 277; (17) the control and supervision of places where dangerous or offensive trades are carried on so as to secure cleanliness therein or to minimise any injurious, offensive or dangerous effects arising or likely to arise there from; 107 ----- (18) the regulation of the erection of any enclosure, fence, tent, awning or other temporary structure of whatsoever material or nature on any land situated within the cantonment and the fees chargeable in respect thereof; (19) the laying out of streets, and the regulation and prohibition of the erection of buildings without adequate provision being made for the laying out and location of streets; (20) the form of and the particulars which shall be contained in a development scheme or an improvement scheme and the manner in which such scheme shall be framed or altered and levy of development charges; (21) the regulation of the use of public parks and gardens and other public places, and the protection of avenues, trees, grass and other appurtenances of streets and other public places; (22) the regulation of the grazing of animals and the fees chargeable in respect thereof; (23) the fixing and regulation of the use of public bathing and washing places; (24) the regulation of the posting of bills and advertisment, and of the position, size, shape or style or name boards, sign-boards and sign-posts; (25) the fixation of a method for the sale of articles whether by measure, weight, piece or any other method; (26) the rendering necessary of licences within the cantonment for— (a) persons working as job porters for the conveyance of goods; (b) animals or vehicles let out on hire or used for hawking articles; (c) the proprietors or drivers of vehicles, boats or other conveyances, or of animals kept or plying for hire or used for hawking articles; (d) persons impelling or carrying such vehicles or other conveyances; or (e) persons practising as nurses, midwives or dais; (27) the prescribing of the fee payable for any licence required under clause (26), and of the conditions subject to which such licences may be granted, revised, suspended or withdrawn; (28) the regulation of the charges to be made for the services of such job porters and of the hire of such animals, vehicles or other conveyances, and for the remuneration of persons impelling or carrying such vehicles or conveyances as are referred to in clause (26); (29) the prescribing of fee payable for any licence except as otherwise specifically provided in the Act, sanction or for any written permission granted by the Chief Executive Officer; (30) the regulation or prohibition, for purposes of sanitation or the prevention of disease or the promotion of public safety or convenience, of any act which occasions or is likely to occasion a nuisance, and for the regulation or prohibition of which no provision is made elsewhere by or under this Act; (31) the circumstances and the manner in which owners of buildings or land in the cantonment, who are temporarily absent from, or are not resident in, the cantonment, may be required to appoint as their agents, for all or any of the purposes of this Act of any rule or bye-law made thereunder, persons residing within or near the cantonment; (32) the prevention of the spread of infectious or contagious diseases within the cantonment; (33) the segregation in, or the removal and exclusion from, the cantonment, or the destruction, of animals suffering from or reasonably suspected to be suffering from any infectious or contagious disease; (34) the supervision, regulation, conservation and protection from injury, contamination or trespass of sources and means of public water-supply and of appliances for the distribution of water whether within or without the limits of the cantonment; 108 ----- (35) the manner in which connections with water-works may be constructed or maintained, and the agency which shall or may be employed for such construction and maintenance; (36) the regulation of all matters and things relating to the supply and use of water including the collection and recovery of charges there for and the prevention of evasion of the same; (37) the maintenance of schools, and the furtherance of education generally; (38) the regulation or prohibition of the cutting or destruction of trees or shrubs, or of the making of excavations, or of the removal of soil or quarrying, where such regulation or prohibition appears to the Board to be not prejudicial to the maintenance of ecological balance and to be necessary for the maintenance of a water-supply, the preservation of the soil, the prevention of landscape or of the formation of ravines or torrents, or the protection of land against erosion, or against the deposit thereon of sand, gravel or stones; (39) the rendering necessary of licences for the use of premises within the cantonment as stables, kennels, sites or cow houses or as accommodation for sheep, goats or fowls; (40) the control of the use in the cantonment of mechanical whistles, sirens or trumpets; (41) the regulation of supply of copies of official document and prescribing the fee payable in respect thereof; (42) the regulation of permission for granting licence for use of loud-speakers and prescribing the fee payable in respect thereof; (43) the conservation and maintenance of ancient and historical monuments, archaeological sites and remains or place of public importance in the cantonment; and (44) generally for the regulation of the administration of the cantonment under this Act. **349. Penalty for breach of bye-laws.—(1) Any bye-law made by a Board under this Act may** provide that a contravention thereof shall be punishable— (a) with fine which may extend to five thousand rupees; or (b) with fine which may extend to five thousand rupees and, in the case of a continuing contravention, with an additional fine which may extend to five hundred rupees for every day during which such contravention continues after conviction for the first such contravention; or (c) with fine which may extend to one hundred fifty rupees for every day during which the contravention continues after the receipt of a notice from the Board or Chief Executive Officer by the person contravening the bye-law requiring such person to discontinue such contravention. (2) Any such bye-law may also provide that a person contravening the same shall be required to remedy, so far as lies in his power, the damage or mischief, if any, caused by such contravention. **350. Supplemental provisions regarding bye-laws and regulations.—(1) Any power to make** bye-laws conferred by this Act is conferred subject to the conditions of bye-laws being made after previous publication and of their not taking effect until they have been approved and confirmed by the Central Government and published in the Official Gazette. (2) The Central Government in confirming a bye-law may make any change therein which appears to it to be necessary. (3) The Central Government may, after previous publication of its intention, cancel any bye-law which it has confirmed, and thereupon the bye-law shall cease to have effect. (4) Every bye-law and Regulation made under this Act and every order made under sub-section (3) shall be laid as soon as may be after it is made, before each House of Parliament while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the bye-law and Regulation, or order or both Houses agree that the bye-law and Regulation, or order should not be made, the bye-law and Regulation, or order shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, 109 ----- however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that bye-law and Regulation or order. **351. Rules and bye-laws to be available for inspection and purchase.—(1) A copy of all rules and** bye-laws made under this Act shall be kept at the office of the Board and shall, during office hours, be open free of charge to inspection by any inhabitant of the cantonment. (2) Copies of all such rules and bye-laws shall be kept at the office of the Board and shall be sold to the public at cost price singly, or in collection at the option of the purchaser. CHAPTER XVII SUPPLEMENTAL PROVISIONS **352. Extension of certain provisions of the Act and rules to place beyond cantonments.—The** Central Government may, by notification in the Official Gazette, and subject to any conditions as to compensation or otherwise which thinks fit to impose, extend to any area beyond a cantonment and in the vicinity thereof, with or without restriction or modification, any of the provisions of Chapters VIII to XV or of any rule or bye-law made under this Act for the cantonment which relates to the subject-matter of any of those Chapters, and every enactment, rule or bye-law so extended shall thereupon apply to that area as if the area were included in the cantonment. **353. Power to delegate functions to the President, etc.—(1) The Board may, by a resolution passed** in this behalf, delegate to the President, Vice-President, Chief Executive Officer or Health Officer, subject to such conditions, if any, as may be specified in the resolution, all or any of its functions under clause (b) of sub-section (5) of section 290, section 168, section170, section 175, section 167, section 263 and section 264. (2) The civil area committee may, by passing a similar resolution, delegate subject to such conditions, if any, as may be specified in such resolution, all or any of its functions to the Vice-President, Chief Executive Officer or Health Officer. **354. Registration.—(1) Paragraphs 2 and 3 of section 54, and section 59, 107 and 123 of the Transfer** of Property Act, 1882 (4 of 1882), with respect to the transfer of property by registered instrument, shall, on and from the commencement of this Act, extend to every cantonment. (2) The Registrar or Sub-Registrar of the district or sub-district formed for the purposes of the Registration Act, 1908 (16 of 1908) in which any cantonment is situated, shall, when any document relating to immovable property within the cantonment is registered, send information of the registration forthwith to the Chief Executive Officer and the Defence Estates Officer and such other authority as the Central Government may prescribe in this behalf. **355. Validity of notices and other documents.—No notice, order, requisition, licence, permission in** writing or other such document issued under this Act shall be invalid merely by reason of any defect of form. **356. Admissibility of document or entry as evidence.—A copy of any receipt, application, plan,** notice, order or other document or of any entry in a register, in the possession of a Board shall, if duly certified by the legal keeper thereof or other person authorised by the Chief Executive Officer in this behalf, be admissible in evidence of the existence of the document or entry, and shall be admitted as evidence of the matters and transactions there in recorded in every case where, and to the same extent to which, the original documents or entry would, if produced, have been admissible to prove such matters. **357. Evidence by officer or employee of the Board.—No officer or employee of a Board shall, in** any legal proceeding to which the Board is not party, be required to produce any register or document the contents of which can be proved under section 356 by a certified copy, or to appear as a witness to prove any matter or transaction recorded therein save by order of the court made for special cause. **358. Application of Act 4 of 1899.—For the purposes of the Government Buildings Act, 1899,** cantonments and Boards shall be deemed to be municipalities and municipal authorities respectively and the references to the State Government in section 4 of that Act shall be construed as references to the Central Government. 110 ----- **359. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act, as appear to it to be necessary for removing the difficulty: Provided that no such order shall be made after the expiry of a period of two years from the date of commencement of this Act. (2) Every order made under sub-section (1) shall be laid, as soon as may be after it is made, before each House of Parliament. **360. Repeals and savings.—(1) The Cantonments Act, 1924 (2 of 1924) is hereby repealed.** (2) Notwithstanding the repeal of the Cantonments Act, 1924 (2 of 1924)— (a) any appointment, notification, order, scheme, rule, form, notice or bye-law made or issued, and any licence or permission granted under the Act shall, in so far as it is not in consistent with the provisions of this Act continue in force and be deemed to have been made, issued or granted, under the provisions of this Act, unless and until it is superseded by any appointment, notification, order, scheme, rule, form, notice or bye-law made or issued or any licence or permission granted under the said provisions; (b) all debts, obligations and liabilities incurred, all contracts entered into and all matters and things engaged to be done by, with or for the Board shall be deemed to have been incurred, entered into or engaged to be done by, with or for the Board constituted under this Act; (c) all budget estimates, assessments, valuations, measurements or divisions made by the Board shall in so far as they are not inconsistent with the provisions of this Act, continue in force and be deemed to have been made under the provisions of this Act unless and until they are superseded by any budget estimate, assessment, valuation, measurement or division made by the Board constituted under the said provisions; (d) all properties, movable and immovable and all interests of whatsoever nature and kind therein, vested in the Board shall with all rights of whatsoever description, use, enjoyed or possessed by the said Board vest in the Board constituted under this Act; (e) all rates, taxes, fees, rents and other sums of money due to the Board shall be deemed to be due to the Board constituted under this Act; (f) all rates, taxes, fees, rents, fares and other charges shall, until and unless they are varied by the Board constituted under this Act, continue to be levied at the same rate at which they were being levied by the Board immediately before the commencement of this Act; (g) all suits, prosecutions and other legal proceedings instituted or which might have been instituted by or against the Board may be continued or instituted by or against the Board constituted under this Act. 111 ----- SCHEDULE I (See section 100) NOTICE OF DEMAND To residing at Taking notice that the Board demands from....................................the sum of ....................due from ...................................on account of......................................(here describe the property, occupation, circumstance or thing in respect of which the sum is payable) leviable under ......................................... for the period of ........................................................ Commencing on the ...........................................day of ...............................20............, and ending on the .........................day of ........................20......................, and that if, within thirty days from the service of this notice, the said sum is not paid to the Board at.................................. or sufficient cause for non-payment is not shown to the satisfaction of the Chief Executive Officer, warrant of distress/attachment* will be issued for the recovery of the same with costs. Dated this.......................................day of ......................20......................... (Signed) Chief Executive Officer, Cantonment. [*Strike out whichever is not applicable.] 112 ----- SCHEDULE II. (See section 101) FORM OF WARRANT (Here insert the name of the officer charged with the execution of warrant) Whereas A.B. of ................... has not paid, and has not shown satisfactory cause for the non-payment of, the sum of ................... due on account of.................*............... for the period of............................commencing on the day of....................20.............. and ending with the .......................... day of................20........ which sum is leviable under....................... And whereas thirty days have elapsed since the service on him of notice of demand for the same. This is to command you to [distraint/attach#] subject to the provisions of the Cantonments Act, 2006, the [movable/immovable#] property of the said A.B. to the amount of the said sum of Rs. ..................; and forthwith to certify to me, together with this warrant, all particulars of the property [seized/attached #] by you thereunder. Dated this .......................day of ...........................20....................... (Signed) Chief Executive Officer, Cantonment. *Here describe the liability. # Strike out whichever is not applicable. 113 ----- SCHEDULE III (See section 103) FORM OF INVENTORY OF PROPERTY DISTRAINED AND NOTICE OF SALE To, residing at .......................................................................... Take notice that I have this day seized the property specified in the inventory annexed hereto, for the value of.................due for the liability* mentioned in the margin for the period commencing with......................day of ..................20................ and ending with the ............................day of....................20................, together with Rs............. due for service of notice of demand, and that, unless within seven days from the date of the service of this notice you pay to the Board the said amount, together with the costs of recovery, the said property will be sold by public auction. Dated this ............................................day of ..................................20............... (Signature of officer executing the warrant.) INVENTORY (Here state particulars of property seized). *Here describe the liability. 114 ----- 1[SCHEDULE IV (See section 314) CASES IN WHICH POLICE MAY ARREST WITHOUT WARRANT PART A Section Subject 183(1) Remaining in, or re-entering, cantonment after notice of expulsion for failure to attend hospital or dispensary 296 Discharging fire-arms, etc., so as to cause danger. 300 Loitering or importuning for sexual immorality. 304(a) Remaining in, or returning to, a cantonment after notice of expulsion.] 1. Subs. by Act 18 of 2023, s. 2 and Schedule for SCHEDULE IV (w.e.f. 2-11-2023). 115 ----- SCHEDULE V APPEALS FROM EXECUTIVE ORDERS (See section 340) Sl. No. Section Executive Order Appellate Authority Time allowed for appeal 1 2 3 4 5 1. 2 (zc) Declaring 'inhabitant' District Magistrate Fifteen days. 2. 137 Notice to fill up well, tank, etc., or to drain off or remove water. 3. 138 Notice requiring the owner to provide latrine, urinal, cesspool dust-bin or other receptacle. Notice requiring provision of 4. 139 sanitary facilities in market, school, theatre or other place of public resort. 5. 142 Notice for removal of congested building. 6. 144 Notice requiring a building to be repaired or altered so as to remove sanitary defects. 7. 147 Notice prohibiting owner or occupier to use a building or part of a building for human habitation. 8. 183 Order directing a person to remove from the Cantonment and prohibiting him from re-entering it without permission. Notice requiring 9. 190 maintenance or closing of private source of public drinking water supply. 10. 192 Notice requiring the owner, lessee or occupier of a building or land to obtain water from a source of public water supply. Principal Director Thirty days from service of notice. Board Fifteen days from service of notice. Board Fifteen days from service of notice. General Officer Commanding-in-Chief, the Command Thirty days from service of notice. Principal Director Thirty days from service of notice. Principal Director Twenty-one from days service of notice. General Officer Commanding-in-Chief, the Command Thirty days from service of notice. Board Fifteen days from service of notice. Board Fifteen days from service of notice. 116 ----- 1 2 3 4 5 11. 195 Notice for cutting off the connection between any source of public water supply and any building or land to which water is supplied. 12. 238 (a) Refusal to sanction the erection or re-erection of a building in a civil area. Board Fifteen days from service of notice. 1[(a) Principal Director (b) Director (c) Joint Director, Defence Estates, the Command] Thirty days from service of communication. Thirty days from service of communication. (b) Refusal to sanction 2[(a) General Officer Thirty days from service of the erection or Commanding-in-Chief, the communication. re-erection of a Command; building in a (b) Military Officer holding Cantonment (Other than a civil area). the appointment of Major General Operational Logistics, Headquarters Command as additional Appellate Authority to hear the pending appeals as on date of promulgation of the Act. If Major General Operational Logistics is not authorised in Headquarter Command, in that condition Major GeneralIncharge-Administration act as additional Appellate Authority to hear the pending appeals as on date of promulgation of the Act.] 13. 239 Order of stoppage of Board Thirty days from service of building or works in certain communication. cases. 1[(a) Principal Director 14. 248 (a) Notice to stop erection or Thirty days from service of (b) Director re-erection of, or to alter or communication. (c) Joint Director, Defence demolish, a building in a Estates, the Command] civil area. (b) Notice to stop erection or 2[(a) General Officer Thirty days from service of re-erection of, or to alter or Commanding-in-Chief, the communication. 1. Subs. vide Notification No. S.R.O. 11(E) for entry in column 4, Dated 9-12-2011. 2. Subs. vide Notification No. S.R.O. 12(E) for entry in column 4, Dated 31-12-2015. 117 ----- demolish, a building in a Cantonment (Other than a civil area 15. 252 Notice requiring the owner or the occupier to alter or remove any projection or encroachment. 16. 253 Notice to pull down or otherwise deal with a building newly erected or rebuilt without permission over a sewer, drain, culvert, water course or water- pipe. Command; (b) Military Officer holding the appointment of Major General Operational Logistics, Headquarters Command as additional Appellate Authority to hear the pending appeals as on date of promulgation of the Act. If Major General Operational Logistics is not authorised in Headquarter Command, in that condition Major General-Incharge Administration act as additional Appellate Authority to hear the pending appeals as on date of promulgation of the Act.] Board Thirty days from service of notice. Board Thirty days from service of notice. 118 ----- 1 2 3 4 5 17. 273 Notice prohibiting or restricting the use of a slaughter-house. 18. 297 Notice to remove, repair, protect, or enclose a building, wall or anything affixed thereto, or well, tank, reservoir, pool, depression or excavation. 19. 302 Notice directing disorderly person to remove from cantonment and prohibiting him from reentering it without permission. Board Twenty-one days from service of notice. Board Thirty days from service of notice. District Magistrate Thirty days from service of notice. 119 -----

3-Nov-2006

47

The Assam Rifles Act, 2006

https://www.indiacode.nic.in/bitstream/123456789/2037/1/2006___47.pdf

central

# THE ASSAM RIFLES ACT, 2006 __________________ # ARRANGEMENT OF SECTIONS __________________ CHAPTER I PRELIMINARY SECTIONS 1. Short title and commencement. 2. Definitions. 3. Persons subject to this Act. CHAPTER II CONSTITUTION OF THE FORCE AND CONDITIONS OF SERVICE OF THE MEMBERS OF THE FORCE 4. Constitution of Force. 5. Control, direction, etc. 6. Enrolment. 7. Liability for service outside India. 8. Resignation and withdrawal from the post. 9. Tenure of service under the Act. 10. Termination of service by Central Government. 11. Dismissal, removal or reduction by Director-General and by other officers. 12. Certificate of termination of service. 13. Restrictions on right to form association, freedom of speech, etc. CHAPTER III SERVICE PRIVILEGES 14. Authorised deduction only to be made from pay. 15. Remedy of aggrieved persons other than officers. 16. Remedy of aggrieved officers. 17. Immunity from attachment. 18. Immunity from arrest for debt. 19. Immunity of persons attending Assam Rifles Court from arrest. 20. Saving of rights and privileges under other laws. CHAPTER IV OFFENCES 21. Offences in relation to the enemy and punishable with death. 22. Offences in relation to the enemy and not punishable with death. 23. Offences punishable more severely on active duty than at other times. 1 ----- SECTIONS 24. Mutiny. 25. Desertion and aiding desertion. 26. Absence without leave. 27. Striking or threatening superior officers. 28. Disobedience to superior officer. 29. Insubordination and obstruction. 30. Fraudulent enrolment. 31. False answers on enrolment. 32. Unbecoming conduct. 33. Certain forms of disgraceful conduct. 34. Ill-treating a subordinate. 35. Intoxication. 36. Permitting escape of person in custody. 37. Irregularity in connection with arrest or confinement. 38. Escape from custody. 39. Offences in respect of property. 40. Extortion and corruption. 41. Making away with equipment. 42. Injury to property. 43. False accusations. 44. Falsifying official document and false declarations. 45. Signing in blank and failure to report. 46. Offences relating to Assam Rifles Court. 47. False evidence. 48. Unlawful detention of pay. 49. Violation of good order and discipline. 50. Miscellaneous offences. 51. Attempt. 52. Abetment of offences that have been committed. 53. Abetment of offences punishable with death and not committed. 54. Abetment of offences punishable with imprisonment and not committed. 55. Civil offences. 56. Civil offences not triable by an Assam Rifles Court. CHAPTER V PUNISHMENTS 57. Punishment awardable by Assam Rifles Courts. 58. Alternative punishments awardable by Assam Rifles Courts. 59. Combination of punishments. 60. Retention in the Force of a person convicted on active duty. 61. Punishments otherwise than by Assam Rifles Courts. 62. Minor punishments. 63. Limit of punishments under section 62. 64. Punishment of officers below the rank of Deputy Commandant, subordinate officers and Warrant Officer by Deputy Inspectors-General and others. 2 ----- SECTIONS 65. Punishment of officers below the rank of a Commandant, subordinate officers and Warrant Officer by the Inspectors-General and others. 66. Punishment or subordinate officers and Warrant Officer by Commandant, etc. 67. Collective fines. CHAPTER VI PENAL DEDUCTIONS 68. Deductions from pay and allowances of officers. 69. Deductions from pay and allowances of persons other than officers. 70. Computation of time of absence or custody. 71. Pay and allowances during trial. 72. Limit of certain deductions. 73. Deduction from public money due to a person. 74. Pay and allowances of prisoner of war during inquiry into his conduct. 75. Remission of deductions. 76. Provision for dependants of prisoner of war from remitted deductions. 77. Provision for dependants of prisoner of war from his pay and allowances. 78. Period during which a person is deemed to be a prisoner of war. CHAPTER VII ARREST AND PROCEEDINGS BEFORE TRIAL 79. Custody of offenders. 80. Duty of Commandant in regard to detention. 81. Interval between committal and trial. 82. Arrest by civil authorities. 83. Capture of deserters. 84. Inquiry into absence without leave. 85. Force Police Officers. CHAPTER VIII ASSAM RIFLES COURTS 86. Kinds of Assam Rifles Courts. 87. Power to convene a General Assam Rifles Court. 88. Power to convene a Petty Assam Rifles Court. 89. Contents of warrants issued under sections 87 and 88. 90. Composition of General Assam Rifles Court. 91. Composition of a Petty Assam Rifles Court. 92. Summary Assam Rifles Court. 93. Dissolution of an Assam Rifles Court. 94. Power of General Assam Rifles Court. 95. Power of a Petty Assam Rifles Court. 3 ----- SECTIONS 96. Power of a Summary Assam Rifles Court. 97. Prohibition of second trial. 98. Period of limitation for trial. 99. Trial, etc., of offender who ceases to be subject to this Act. 100. Application of this Act during term of sentence. 101. Place of trial. 102. Choice between criminal court and Assam Rifles Court. 103. Power of criminal court to require delivery of offender. CHAPTER IX PROCEDURE OF ASSAM RIFLES COURTS 104. Presiding officer. 105. Law Officer. 106. Challenges. 107. Oath of member, Law Officer and witness. 108. Voting by members. 109. General rule as to evidence. 110. Judicial notice. 111. Summoning of witness. 112. Documents exempted from production. 113. Commission for examination of witness. 114. Examination of witness on commission. 115. Conviction of offences not charged. 116. Presumption as to signatures. 117. Enrolment paper. 118. Presumption as to certain documents. 119. Reference by accused to Government officer. 120. Evidence of previous convictions and general character. 121. Lunacy of accused. 122. Subsequent fitness of lunatic accused for trial. 123. Transmission to Central Government of orders under section 122. 124. Release of lunatic accused. 125. Delivery of lunatic accused to relatives. 126. Order for custody and disposal of property pending trial. 127. Order of disposal of property regarding which offences is committed. 128. Powers of Assam Rifles Court in relation to proceedings under this Act. CHAPTER X CONFIRMATION AND REVISION 129. Finding and sentence not valid unless confirmed. 130. Power to confirm finding and sentence of General Assam Rifles Court. 131. Power to confirm finding and sentence of Petty Assam Rifles Court. 132. Limitation of powers of confirming authority. 4 ----- SECTIONS 133. Power of confirming authority to mitigate, remit or commute sentences. 134. Confirming of findings and sentences on board a ship. 135. Revision of finding or sentence. 136. Finding and sentence of a Summary Assam Rifles Court. 137. Transmission of proceedings of Summary Assam Rifles Court. 138. Alteration of finding or sentence in certain cases. 139. Remedy against order, finding or sentence of Assam Rifles Court. 140. Annulment of proceedings. CHAPTER XI EXECUTION OF SENTENCE, PARDON, REMISSION, ETC. 141. Form of sentence of death. 142. Commencement of sentence of imprisonment. 143. Execution of sentence of imprisonment. 144. Temporary custody of offender. 145. Execution of sentence of imprisonment in special cases. 146. Conveyance of prisoner form place to place. 147. Communication of certain orders to prison officers. 148. Execution of sentence of fine. 149. Informality or error in order or warrant. 150. Pardon and remission. 151. Cancellation of conditional pardon, release on parole or remission. 152. Suspension of sentence of imprisonment. 153. Orders pending suspension. 154. Release on suspension. 155. Computation of period of suspension. 156. Order after suspension. 157. Reconsideration of case after suspension. 158. Fresh sentence after suspension. 159. Scope of power of suspension. 160. Effect of suspension and remission on dismissal. CHAPTER XII MISCELLANEOUS 161. Disposal of property of the members of the Force. 162. Powers and duties conferrable and imposable on members of the Force. 163. Protection for acts of members of the Force. 164. Power of Central Government to remove difficulties. 165. Power to make rules. 166. Power to make regulations. 167. Rules and regulations to be laid before Parliament. 168. Repeal and savings. 5 ----- # THE ASSAM RIFLES ACT, 2006 ACT NO. 47 OF 2006 [3rd November, 2006.] # An Act to consolidate and amend the law relating to the governance of the Assam Rifles, an Armed Force of the Union for ensuring the security of the borders of India, to carry out Counter Insurgency Operations in the specified areas and to act in aid of civil authorities for the maintenance of the law and order and for matters connected therewith. BE it enacted by Parliament in the Fifty-seventh Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title and commencement.—(1) This Act may be called the Assam Rifles Act, 2006.** (2) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.—(1) In this Act, unless the context otherwise requires,—** (a) “active duty”, in relation to a person subject to this Act, means any duty as a member of the Force during the period in which such person is attached to, or forms part of, a unit of the Force— (i) which is engaged in operations against an enemy or an insurgent or a terrorist or any person in arms against the Union, or (ii) which is operating at a picket or engaged on patrol or other guard duty along the borders of India, and includes duty by such person during any period declared by the Central Government, by notification in the Official Gazette, as a period of active duty with reference to any area in which or under any provision of this Act or for the purposes of any other law for the time being in force, any person or class of persons subject to this Act may be serving; (b) “Assam Rifles Court” means a Court referred to in section 86; (c) “battalion” means a unit of the Force constituted as battalion by the Central Government; (d) “Chief Law Officer” and “Law Officer” mean, respectively, the Chief Law Officer and a Law Officer of the Force appointed by the Central Government; (e) “civil offence” means as offence which is triable by a criminal court; (f) “civil prison” means any jail or place used for the detention of any criminal prisoner under the Prisons Act, 1894 (9 of 1894) or under any other law for the time being in force; (g) “Commandant”, when used in any provision of this Act with reference to any unit of the Force, means the officer whose duty it is under the rules or regulations or in the absence of such rules or regulations, by custom of the service, to discharge with respect to that unit, the functions of a Commandant in regard to matters of the description referred to in that provision; (h) “criminal court” means a court of ordinary criminal justice in any part of India; (i) “deputation” means a period for which the services of a person belonging to any department of the Central Government are placed at the disposal of the Director-General; 1. 20th February, 2009, vide notification No. S.O. 517(E), dated 20th February, 2009, see Gazette of India, Extraordinary, Part II sec.3(ii) 6 ----- (j) “Director-General” and “Additional Director-General” mean, the Director-General and Additional Director-General of the Force appointed under sub-sections (1) and (2) of section 5, respectively; (k) “enemy” includes all armed mutineers, armed rebels, armed rioters, pirates, terrorists and any person in arms against whom it is the duty of any person subject to this Act to take action; (l) “enrolled person” means an under-officer or other person enrolled under this Act; (m) “Force” means the Assam Rifles; (n) “Force custody” means the arrest or confinement of a member of the Force according to rules and includes any military custody of such member under the Army Act, 1950 (46 of 1950); (o) “Inspector-General” and “Deputy Inspector-General” mean, respectively the Inspector General and the Deputy Inspector-General of the Force appointed under sub-section (2) of section 5; (p) “member of the Force” means an officer, a subordinate officer, an under-officer or other enrolled person and includes the persons on deputation; (q) “notification” means a notification published in the Official Gazette; (r) “offence” means any act or omission punishable under this Act and includes a civil offence; (s) “officer” means a person appointed or in pay as an officer of the Force; but does not include a subordinate officer or an under-officer; (t) “prescribed” means prescribed by rules made under this Act; (u) “regulations” means the regulations made by the Central Government under this Act; (v) “rule” means a rule made under this Act; (w) “subordinate officer” means a person appointed or in pay as a Subedar Major, a Subedar or a Naib Subedar of the Force; (x) “superior officer”, when used in relation to a person subject to this Act, means— (i) any member of the Force or a person on deputation to whose command such person is for the time being subject in accordance with the rules; (ii) any officer of higher rank or class or of a higher grade in the same class, and includes when such person is not an officer, a subordinate officer or an under-officer of higher rank, class or grade; (y) “terrorist” means any person who, with intent to overawe the Government as by law established or to strike terror in the people or any section of the people or to alienate any section of the people or to adversely affect the harmony amongst different sections of the people, does any act or thing by using bombs, dynamite or other explosive substances or inflammable substances or firearms or other lethal weapons or poisons or noxious gases or other chemicals or any other substances (whether biological or otherwise) of a hazardous nature in such a manner, as to cause or is likely to cause death of, or injury to, any person or persons, or damage to, or destruction of, property or disruption of any supplies or services essential to the life of the community; (z) “under-officer” means a Warrant Officer, Havildar, Naik and Lance Naik of the Force; (za) “unit” means any— (i) battalion; or (ii) regiment; or (iii) training institution; or (iv) Head Quarters of Deputy Inspector-General; or (v) Head Quarters of Inspector-General; or 7 ----- (vi) Head Quarters of Director-General, of the Force and includes any other formation of the Force specified, by notification by the Central Government. (2) Words and expressions used and not defined in this Act but defined in the Indian Penal Code (45 of 1860) shall have the meanings assigned to them in that Code. (3) In this Act, reference to any law not in force in the State of Jammu and Kashmir shall be construed as references to the corresponding law in force in that State. **3. Persons subject to this Act.—(1) The following persons (whether on deputation or otherwise** employed) shall be subject to this Act, wherever they may be, namely:— (a) officers and subordinate officers; and (b) under-officers and other persons enrolled under this Act. (2) Members of the Force in existence at the commencement of this Act shall be deemed to have been appointed or, as the case may be, enrolled as such under this Act. (3) Notwithstanding anything contained in sub-section (1), any person who is employed in the Force on deputation from the regular Army as defined under clause (xxi) of section 3 of the Army Act, 1950 (46 of 1950) shall not be subject to this Act and shall, during the period of such deputation, be deemed to be subject to the Army Act, 1950: Provided that such person in regard to his duties and discipline shall be deemed to be under the command of the member of the Force under whose command such person for the time being is placed: Provided further that, in case of such person, for the purposes of his duties and discipline, the expression “active duty” defined in clause (a) of sub-section (1) of section 2 shall be deemed to be the “active service” as defined in clause (i) of section 3 of the Army Act, 1950 (46 of 1950) for taking any action against him under the provisions of the said Army Act, (4) Any person who is not subject to this Act is posted for any service with the members of the Force or engaged to accompany with or to provide any service in any manner to the members of the Force in such— (i) camp; (ii) line of march; (iii) frontier post; (iv) active duty ;or (v) counter insurgency operations, as may be specified, by notification, by the Central Government in this behalf shall be deemed to be a member of the Force, till he is so posted or engaged in such corresponding rank as may be determined, by notification, by the Central Government for the purposes of this Act. (5) Every person subject to this Act shall remain so subject until retired, discharged, released, removed or dismissed from the Force in accordance with the provisions of this Act and the rules. CHAPTER II CONSTITUTION OF THE FORCE AND CONDITIONS OF SERVICE OF THE MEMBERS OF THE FORCE **4. Constitution of Force.—(1) There shall be an armed force of the Union called the Assam Rifles** for ensuring the security of the borders of India, to carry out counter insurgency operations in the specified areas and to act in aid of civil authorities for the maintenance of law and order and the matters connected therewith. (2) Subject to the provisions of this Act, the Force shall be reconstituted in such manner as may be prescribed and the conditions of service of the members of the Force shall be such as may be prescribed. 8 ----- **5. Control, direction, etc.—(1) The general superintendence, direction and control of the Force shall** vest in, and be exercised by, the Central Government and subject thereto and to the provisions of this Act and the rules and regulations, the command and supervision of the Force shall vest in an officer to be appointed by the Central Government as the Director-General of the Force. (2) The Director-General shall, in the discharge of his duties under this Act, be assisted by such number of Additional Director-General, Inspectors-General, Deputy Inspectors-General, Commandants and other officers as may be appointed by the Central Government. **6. Enrolment.—(1) The persons to be enrolled to the Force, the mode of enrolment and the procedure** for enrolment shall be such as may be prescribed by the Central Government. (2) Notwithstanding anything contained in this Act and the rules and regulations, every person who has, for a continuous period of three months, been in receipt of pay as a person enrolled under this Act and borne on the rolls of the Force shall be deemed to have been duly enrolled. (3) No person who is not a citizen of India shall, except by the consent of the Central Government signified in writing, be enrolled in the Force. **7. Liability for service outside India.—Every member of the Force shall be liable to serve in any** part of India as well as outside India. **8. Resignation and withdrawal from the post.—No member of the Force shall be at liberty—** (a) to resign his appointment during the term of his engagement ;or (b) to withdraw himself from all or any of the duties of his appointment, except with the previous permission in writing of the prescribed authority. **9. Tenure of service under the Act.—Every person subject to this Act shall hold office during the** pleasure of the President. **10. Termination of service by Central Government.—Subject to the provisions of this Act and the** rules and regulations, the Central Government may dismiss or remove from the service any person subject to this Act. **11. Dismissal, removal or reduction by Director-General and by other officers.—(1) The** Director-General, Additional Director-General or any Inspector-General may dismiss or remove from service or reduce to a lower grade or rank or the ranks any person subject to this Act other than an officer. (2) An officer not below the rank of Deputy Inspector-General may dismiss or remove from the service any person under his command other than an officer or a subordinate officer of such rank or the ranks as may be prescribed. (3) Any such officer as is mentioned in sub-section (2) may reduce to a lower grade or rank or the ranks any person under his command except an officer or a subordinate officer. (4) The exercise of any power under this section shall be subject to the provisions of this Act and the rules and regulations. **12. Certificate of termination of service.—A subordinate officer or an under-officer or other** enrolled person who is retired, discharged, released, removed or dismissed from service shall be furnished by the officer, to whose command he is subject, with a certificate in the language which is the mothertongue of such person and also in Hindi and English language setting forth— (a) the authority terminating his service; (b) the cause for such termination; and (c) the full period of his service in the Force. 9 ----- **13. Restrictions on right to form association, freedom of speech, etc.—(1) No person subject to** this Act shall, without the previous sanction in writing of the Central Government or of the prescribed authority,— (a) be a member of, or be associated in any way with, any trade union, labour union, political association or with any class of trade unions, labour unions or political associations; or (b) be a member of, or be associated in any way with, any society, institution, association or organisation that is not recognised as part of the Force or is not of a purely social, recreational or religious nature ; or (c) communicate with the press or publish or cause to be published any book, letter or other document except where such communication or publication is in the bona fide discharge of his duties or is of a purely literary, artistic or scientific character or is of a prescribed nature. _Explanation.—If any question arises as to whether any society, institution, association or organisation_ is of a purely social, recreational or religious nature under clause (b) of this sub-section, the decision of the Central Government thereon shall be final. (2) No person subject to this Act shall participate in, or address, any meeting or take part in any demonstration organised by any body or persons for any political purposes or for such other purposes as may be prescribed. CHAPTER III SERVICE PRIVILEGES **14. Authorised deduction only to be made from pay.—The pay of every person subject to this Act** due to him as such under any rules or regulations for the time being in force shall be paid without any deduction other than the deductions authorised by or under this Act or any other Act. **15. Remady of aggrieved persons other than officers.—(1) Any person subject to this Act other** than an officer who deems himself wronged by any officer or subordinate officer may complain to the officer under whose command or orders he is serving. (2) when the officer complained against is the officer to whom any complaint should, under sub-section (1), be preferred, the aggrieved person may complain to such officer's next superior officer. (3) Every officer receiving any such complaint shall make as complete an investigation into it as may be possible for giving full redress to the complainant; or when necessary, refer the complaint to superior authority. (4) Every such complaint shall be preferred in such manner as may, from time to time, be specified by the Director-General. (5) The Central Government may revise any decision by the Director-General under sub-section (2), but, subject thereto, the decision of the Director-General shall be final. **16. Remedy of aggrieved officers.—Any officer who deems himself wronged by his Commandant** or any superior officer and who on due application made to his Commandant or such superior officer does not receive the redress to which he considers himself entitled, may complain to the Central Government in such manner as may, from time to time, be specified by the Director-General. **17. Immunity from attachment.—Neither the arms, clothes, equipment, accoutrements or** necessaries of any person subject to this Act, nor any animal used by him for the discharge of his duty shall be seized, nor shall, the pay and allowances of any such person or any part thereof, be attached by direction of any civil or revenue court or any revenue officer in satisfaction of any decree or order enforceable against him. **18. Immunity from arrest for debt.— (1) No person subject to this Act shall, so long as he belongs** to the Force, be liable to be arrested for debt under any process issued by, or by the authority of, any civil or revenue court or revenue officer, except with the prior consent of the Central Government. 10 ----- (2) The Judge of any such court or the said officer may examine into any complaint made by such person or his superior officer of the arrest of such person contrary to the provisions of this section and may, by warrant under his hand, discharge the person, and award reasonable costs to the complainant, who may recover those costs in like manner as he might have recovered costs awarded to him by a decree against the person obtaining the process. (3) For the recovery of such costs no court-fee shall be payable by the complainant. **19. Immunity of persons attending Assam Rifles Court from arrest.—(1) No Presiding Officer or** member of an Assam Rifles Court, no Law Officer, no party to any proceeding before an Assam Rifles Court, or his legal practitioner or agent and no witness acting in obedience to a summons to attend an Assam Rifles Court shall, while proceeding to, attending or returning from, an Assam Rifles Court, be liable to arrest under civil or revenue process. (2) If any such person is arrested under any such process, he may be discharged by order of the Assam Rifles Court. **20. Savings of rights and privileges under other laws.—The rights and privileges specified in the** preceding section of this Chapter shall be in addition to, and not in derogation of, any other rights and privileges conferred on persons subject to this Act generally by any other law for the time being in force. CHAPTER IV OFFENCES **21. Offences in relation to the enemy and punishable with death.—Any person subject to this Act** who commits any of the following offences, that is to say,— (a) shamefully abandons or delivers up any post, place or guard, committed to his charge or which it is his duty to defend; or (b) intentionally uses any means to compel or induce any person subject to this Act or to army, naval, air force law or any member of other armed forces to abstain from acting against the enemy or to discourage such person from acting against the enemy; or (c) in the presence of enemy, shamefully casts away his arms, ammunition, tools or equipment or misbehaves in such manner as to show cowardice; or (d) treacherously holds correspondence with, or communicates intelligence to, the enemy or any person in arms against the Union; or (e) directly or indirectly assists the enemy with money, arms, ammunition, stores or supplies or in any other manner whatsoever; or (f) in time of active operation against the enemy intentionally occasions a false alarm in action, camp, quarters or spreads or causes to be spread reports calculated to create alarm or despondency; or (g) in time of action leaves his Commandant or other superior officer or his post, guard, picket, patrol or party wihout being regularly relieved or without leave; or (h) having been captured by the enemy or made a prisoner of war, voluntarily serves with or aids the enemy; or (i) knowingly harbours or protects an enemy not being a prisoner; or (j) being a sentry in time of active operation against the enemy or alarm, sleeps upon his post or is intoxicated; or (k) knowingly does any act calculated to imperil the success of the Force or the army, naval, air forces of India or any other armed forces of the Central Government co-operating therewith or any part of such forces, shall, on conviction by an Assam Rifles Court, be liable to suffer death or such less punishment as is in this Act mentioned. 11 ----- **22. Offences in relation to the enemy and not punishable with death.—Any person subject to this** Act who commits any of the following offences, that is to say,— (a) is taken prisoner or captured by the enemy, by want of due precaution or through disobedience of orders, or wilful neglect of duty, or having been taken prisoner or so captured fails to rejoin his service when able to do so; or (b) without due authority holds correspondence with, or communicates intelligence to, the enemy or any person in league with the enemy or having come by the knowledge of any such correspondence or communication, wilfully omits to discover it immediately to his Commandant or other superior officer, shall, on conviction by an Assam Rifles Court, be liable to suffer imprisonment for a term which may extend to fourteen years or such less punishment as is in this Act mentioned. **23. Offences punishable more severely on active duty than at other times.—Any person subject to** this Act who commits any of the following offences, that is to say,— (a) forces a safeguard or forces or uses criminal force to a sentry; or (b) breaks into any house or other place in search of plunder; or (c) being a sentry, sleeps upon his post or is intoxicated; or (d) without orders from his superior officer, leaves his guard, picket, patrol or posts; or (e) intentionally or through neglect occasions a false alarm in camp or quarters, or spreads or causes to be spread reports calculated to create unnecessary alarm or despondency; or (f) makes known the parole, watchword or countersign to any person not entitled to receive it ;or (g) knowingly gives a parole, watchword or countersign different from what he received, shall, on conviction by an Assam Rifles Court,— (A) if he commits any such offence when on active duty, be liable to suffer imprisonment for a term which may extend to fourteen years or such less punishment as is in this Act mentioned; and (B) if he commits any such offence when not on active duty, be liable to suffer imprisonment for a term which may extend to seven years or such less punishment as is in this Act mentioned. **24. Mutiny.—Any person subject to this Act who commits any of the following offences, that is to** say,— (a) begins, incites, causes or conspires with any other person to cause any mutiny in the Force or in the army, naval or air forces of India or any forces co-operating therewith; or (b) joins in any such mutiny; or (c) being present at any such mutiny, does not use his utmost endeavours to suppress the same; or (d) knowing or having reason to believe in the existence of any such mutiny, or of any intention to mutiny or of any such conspiracy, does not, without delay, give information thereof to his Commandant or other superior officer; or (e) endeavours to seduce any person in the Force or in the army, naval or air forces of India or any forces cooperating therewith from his duty or allegiance to the Union, shall, on conviction by an Assam Rifles Court, be liable to suffer death or such less punishment as is in this Act mentioned. **25. Desertion and aiding desertion.—(1) Any person subject to this Act who deserts or attempts to** desert the service shall, on conviction by an Assam Rifles Court,— (a) if he commits the offence when on active duty or when under orders for active duty, be liable to suffer death or such less punishment as is in this Act mentioned; and 12 ----- (b) if he commits the offence under any other circumstances, be liable to suffer imprisonment for a term which may extend to seven years or such less punishment as is in this Act mentioned. (2) Any person subject to this Act who knowingly harbours any such deserter shall, on conviction by an Assam Rifles Court, be liable to suffer imprisonment for a term which may extend to seven years or such less punishment as is in this Act mentioned. (3) Any person subject to this Act who, being cognizant of any desertion or attempt at desertion of a person subject to this Act, does not forthwith give notice to his own or some other superior officer, or take any steps in his power to cause such person to be apprehended, shall, on conviction by an Assam Rifles Court, be liable to suffer imprisonment for a term which may extend to two years or such less punishment as is in this Act mentioned. **26. Absence without leave.—Any person subject to this Act who commits any of the following** offences, that is to say,— (a) absents himself without leave; or (b) without sufficient cause, overstays leave granted to him; or (c) being on leave of absence and having received information from the appropriate authority that any battalion or part thereof or any other unit of the Force, to which he belongs, has been ordered on active duty, fails, without sufficient cause, to rejoin without delay; or (d) without sufficient cause, fails to appear at the time fixed at the parade or place appointed for exercise or duty; or (e) when on parade, or on the line of march, without sufficient cause or without leave from his superior officer, quits the parade or line of march ; or (f) when in camp or elsewhere, is found beyond any limits fixed, or in any place prohibited, by any general, local or other order, without a pass or written leave from his superior officer; or (g) without leave from his superior officer or without due cause, absents himself from any school when duly ordered to attend there, shall, on conviction by an Assam Rifles Court, be liable to suffer imprisonment for a term which may extend to three years or such less punishment as is in this Act mentioned. **27. Striking or threatening superior officers.—Any person subject to this Act who commits any of** the following offences, that is to say,— (a) uses criminal force to or assaults his superior officer; or (b) uses threatening language to such officer; or (c) uses insubordinate language to such officer, shall, on conviction by an Assam Rifles Court,— (A) if such officer is at the time in the execution of his office or, if the offence is committed on active duty, be liable to suffer imprisonment for a term which may extend to fourteen years or such less punishment as is in this Act mentioned; and (B) in other cases, be liable to suffer imprisonment for a term which may extend to ten years or such less punishment as is in this Act mentioned: Provided that in the case of an offence specified in clause (c), the imprisonment shall not exceed five years. **28. Disobedience to superior officer.—(1) Any person subject to this Act who disobeys, in such** manner as to show a wilful defiance of authority, any lawful command given personally by his superior officer in the execution of his office whether the same is given orally, or in writing or by signal or otherwise, shall, on conviction by an Assam Rifles Court, be liable to suffer imprisonment for a term which may extend to fourteen years or such less punishment as is in this Act mentioned. 13 ----- (2) Any person subject to this Act who disobeys any lawful command given by his superior officer shall, on conviction by an Assam Rifles Court,— (a) if he commits such offence when on active duty, be liable to suffer imprisonment for a term which may extend to fourteen years or such less punishment as is in this Act mentioned; and (b) if he commits such offence when not on active duty, be liable to suffer imprisonment for a term which may extend to five years or such less punishment as is in this Act mentioned. **29. Insubordination and obstruction.—Any person subject to this Act who commits any of the** following offences, that is to say,— (a) being concerned in any quarrel, affray or disorder, refuses to obey any officer, though of inferior rank, who orders him into arrest, or uses criminal force to or assaults any such officer; or (b) uses criminal force to, or assaults any person, whether subject to this Act or not, in whose custody he is lawfully placed, and whether he is or is not his superior officer; or (c) resists an escort whose duty it is to apprehend him or to have him in charge; or (d) breaks out of barracks, camp or quarters; or (e) neglects to obey any general, local or other order ;or (f) impedes the Force Police referred to in section 85 or any person lawfully acting on its behalf, or when called upon, refuses to assist in the execution of his duty a Force Police or any person lawfully acting on his behalf, shall, on conviction by an Assam Rifles Court, be liable to suffer imprisonment for a term which may extend, in the case of the offences specified in clauses (d) and (e), to two years, and in the case of the offences specified in the other clauses, to ten years, or in either case such less punishment as is in this Act mentioned. **30. Fraudulent enrolment.—Any person subject to this Act who knowingly attempts to get enrolled** or enrolls any other person who does not fulfil the conditions enabling him to be enrolled, shall, on conviction by the Assam Rifles Court, be liable to suffer imprisonment for a term which may extend to five years or such less punishment as is in this Act mentioned. **31. False answers on enrolment.—Any person having become subject to this Act who is discovered** to have made at the time of enrolment a wilfully false answer to any question set-forth in the prescribed form of enrolment which has been put to him by the enrolling officer before whom he appears for the purpose of being enrolled, shall, on conviction by an Assam Rifles Court, be liable to suffer imprisonment for a term which may extend to five years or such less punishment as is in this Act mentioned. **32. Unbecoming conduct.—Any officer, subordinate officer or an under-officer who behaves in a** manner unbecoming his position and the character expected of him shall, on conviction by an Assam Rifles Court, be liable to be dismissed or to suffer such less punishment as is in this Act mentioned. **33. Certain forms of disgraceful conduct.—Any person subject to this Act who commits any of the** following offences, that is to say,— (a) is guilty of any disgraceful conduct of a cruel, indecent or unnatural kind; or (b) malingers, or feigns or produces disease or infirmity in himself or intentionally delays his cure or aggravates his disease or infirmity; or (c) with intent to render himself or any other person unfit for service, voluntarily causes hurt to himself or that person, shall, on conviction by an Assam Rifles Court, be liable to suffer imprisonment for a term which may extend to seven years or such less punishment as is in this Act mentioned. **34. Ill-treating a subordinate.—Any officer, subordinate officer or an under-officer who uses** criminal force to or otherwise ill-treats any person subject to this Act, being his subordinate in rank or 14 ----- position, shall, on conviction by an Assam Rifles Court, be liable to suffer imprisonment for a term which may extend to seven years or such less punishment as is in this Act mentioned. **35. Intoxication.—Any person subject to this Act who is found in a state of intoxication whether on** duty or not, shall, on conviction by an Assam Rifles Court, be liable to suffer imprisonment for a term which may extend to six months or such less punishment as is in this Act mentioned. **36. Permitting escape of person in custody.—Any person subject to this Act who commits any of** the following offences, that is to say,— (a) when in command of guard, picket, patrol or post, releases without proper authority, whether wilfully or without reasonable excuse, any person committed to his charge, or refuses to receive any prisoner or person so committed; or (b) wilfully or without reasonable excuse allows to escape any person who is committed to his charge, or whom it is his duty to keep or guard, shall, on conviction by an Assam Rifles Court, be liable, if he has acted wilfully, to suffer imprisonment for a term which may extend to ten years or such less punishment as is in this Act mentioned; and if he has not acted wilfully, to suffer imprisonment for a term which may extend to two years or such less punishment as is in this Act mentioned. **37. Irregularity in connection with arrest or confinement.—Any person subject to this Act who** commits any of the following offences, that is to say,— (a) unnecessarily detains a person in arrest or confinement without bringing him to trial, or fails to bring his case before the proper authority for investigation; or (b) having committed a person to Force custody fails without reasonable cause to deliver at the time of such committal, or as soon as practicable, and in any case within forty-eight hours thereafter, to the officer or other person into whose custody the person arrested is committed, an account in writing signed by himself of the offence with which the person so committed is charged, shall, on conviction by an Assam Rifles Court, be liable to suffer imprisonment for a term which may extend to one year or such less punishment as is in this Act mentioned. **38. Escape from custody.—Any person subject to this Act who, being in lawful custody, escapes or** attempts to escape, shall on conviction by an Assam Rifles Court, be liable to suffer imprisonment for a term which may extend to three years or such less punishment as is in this Act mentioned. **39. Offences in respect of property.—Any person subject to this Act who commits any of the** following offences, that is to say,— (a) commits theft of any property belonging to the Government, or to any Force mess, band, or institution, or to any person subject to this Act; or (b) dishonestly misappropriates or converts to his own use any such property; or (c) commits criminal breach of trust in respect of any such property; or (d) dishonestly receives or retains any such property in respect of which any of the offences under clauses (a), (b) and (c) has been committed, knowing or having reason to believe the commission of such offence; or (e) wilfully destroys or injures any property of the Government entrusted to him; or (f) does any other thing with intent to defraud, or to cause wrongful gain to one person or wrongful loss to another person, shall, on conviction by an Assam Rifles Court, be liable to suffer imprisonment for a term which may extend to ten years or such less punishment as is in this Act mentioned. 15 ----- **40. Extortion and corruption.—Any person subject to this Act who commits any of the following** offences, that is to say,— (a) commits extortion; or (b) without proper authority extracts from any person money, provisions or service, shall, on conviction by an Assam Rifles Court, be liable to suffer imprisonment for a term which may extend to ten years or such less punishment as is in this Act mentioned. **41. Making away with equipment.—Any person subject to this Act who commits any of the** following offences, that is to say,— (a) makes away with, or is concerned in making away with any arms, ammunition, equipment, instruments, tools, clothing or any other thing being the property of the Government issued to him for his use or entrusted to him; or (b) loses by neglect anything mentioned in clause (a); or (c) sells, pawns, destroys or defaces any medal or decoration granted to him, shall, on conviction by an Assam Rifles Court, be liable to suffer imprisonment for a term which may extend, in the case of the offences specified in clause (a), to ten years, and in the case of the offences specified in the other clauses, to five years, or in either case such less punishment as is in this Act mentioned. **42. Injury to property.—Any person subject to this Act who commits any of the following offences,** that is to say,— (a) destroys or injures any property mentioned in clause (a) of section 41 or any property belonging to any Force mess, band or institution, or to any person subject to this Act; or (b) commits any act which causes damage to, or destruction of, any property of the Government by fire; or (c) kills, injures, makes away with, ill-treats or loses any animal entrusted to him, shall, on conviction by an Assam Rifles Court, be liable, if he has acted wilfully, to suffer imprisonment for a term which may extend to ten years or such less punishment as is in this Act mentioned; and if he has acted without reasonable excuse, to suffer imprisonment for a term which may extend to five years or such less punishment as is in this Act mentioned. **43. False accusations.—Any person subject to this Act who commits any of the following offences,** that is to say,— (a) makes a false accusation against any person subject to this Act, knowing or having reason to believe such accusation to be false; or (b) in making complaint against any person subject to this Act, makes any statement affecting the character of such person, knowing or having reason to believe such statement to be false, or knowingly and wilfully suppresses any material facts, shall, on conviction by an Assam Rifles Court, be liable to suffer imprisonment for a term which may extend to three years or such less punishment as is in this Act mentioned. **44. Falsifying official document and false declarations.—Any person subject to this Act who** commits any of the following offences, that is to say,— (a) in any report, return, list, certificate, book or other document made or signed by him, or of the contents of which it is his duty to ascertain the accuracy, knowingly makes, or is privy to the making of, any false or fraudulent statement; or (b) in any document of the description mentioned in clause (a), knowingly makes, or is privy to the making of, any omission, with intent to defraud; or 16 ----- (c) knowingly and with intent to injure any person or knowingly and with intent to defraud, suppresses, defaces, alters or makes away with any document which it is his duty to preserve or produce; or (d) where it is his official duty to make a declaration respecting any matter, knowingly makes a false declaration; or (e) obtains for himself, or for any other person, any pension, allowance or other advantage or privilege by a statement which is false, and which he either knows or believes to be false or does not believe to be true, or by making or using false entry in any book or record, or by making any document containing a false statement, or by omitting to make a true entry or document containing a true statement, shall, on conviction by an Assam Rifles Court, be liable to suffer imprisonment for a term which may extend to ten years or such less punishment as is in this Act mentioned. **45. Signing in blank and failure to report.—Any person subject to this Act who commits any of the** following offences, that is to say,— (a) when signing any document relating to pay, arms, ammunition, equipment, clothing, supplies or stores, or any property of the Government fraudulently leaves in blank any material part for which his signature is a voucher; or (b) refuses or by culpable neglect omits to make or send a report or return which it is his duty to make or send, shall, on conviction by an Assam Rifles Court, be liable to suffer imprisonment for a term which may extend to three years or such less punishment as is in this Act mentioned. **46. Offences relating to Assam Rifles Court.—Any person subject to this Act who commits any of** the following offences, that is to say,— (a) being duly summoned or ordered to attend as a witness before an Assam Rifles Court, wilfully or without reasonable excuse, makes default in attending; or (b) refuses to take an oath or make an affirmation legally required by an Assam Rifles Court to be taken or made; or (c) refuses to produce or deliver any document in his power or control legally required by an Assam Rifles Court to be produced or delivered by him; or (d) refuses, when a witness, to answer any question which he is by law bound to answer; or (e) is guilty of contempt of the Assam Rifles Court by using insulting or threatening language, or by causing any interruption or disturbance in the proceedings of such Court, shall, on conviction by an Assam Rifles Court, be liable to suffer imprisonment for a term which may extend to three years or such less punishment as is in this Act mentioned. **47. False evidence.—Any person subject to this Act who, having been duly sworn or affirmed before** any Assam Rifles Court or other court competent under this Act to administer an oath or affirmation, makes any statement which is false, and which he either knows or believes to be false or does not believe to be true, shall, on conviction by an Assam Rifles Court, be liable to suffer imprisonment for a term which may extend to seven years or such less punishment as is in this Act mentioned. **48. Unlawful detention of pay.—Any officer, subordinate officer or an under-officer who, having** received the pay of a person subject to this Act, unlawfully detains or refuses to pay the same when due, shall, on conviction by an Assam Rifles Court, be liable to suffer imprisonment for a term which may extend to five years or such less punishment as is in this Act mentioned. **49. Violation of good order and discipline.—Any person subject to this Act who is guilty of any act** or omission which, though not specified in this Act, is prejudicial to good order and discipline of the Force shall, on conviction by an Assam Rifles Court, be liable to suffer imprisonment for a term which may extend to seven years or such less punishment as is in this Act mentioned. 17 ----- **50. Miscellaneous offences.—Any person subject to this Act who commits any of the following** offences, that is to say,— (a) being in command at any post or on the march, and receiving a complaint that anyone under his command has beaten or otherwise mal-treated or oppressed any person, or has disturbed any fair or market, or committed any riot or trespass, fails to have due reparation made to the injured person or to report the case to the proper authority; or (b) by defiling any place of worship, or otherwise, intentionally insults the religion, or wounds the religious feelings of any person; or (c) attempts to commit suicide, and in such attempt does any act towards the commission of such offence; or (d) being below the rank of subordinate officer, when off duty, appears without proper authority, in or about camp, or when going, to, or returning from, any town or bazaar, carrying a rifle, sword or other offensive weapons; or (e) directly or indirectly accepts or obtains, or agrees to accept or attempts to obtain, for himself or for any other person, any gratification as a motive or reward for procuring the enrolment of any person or leave of absence, promotion or any other advantage or indulgence for any person in the service; or (f) commits any offence against the property or person of any inhabitant of, or resident in, the country in which he is serving, shall, on conviction by an Assam, Rifles Court, be liable to suffer imprisonment for a term which may extend to seven years or such less punishment as is in this Act mentioned. **51. Attempt.—Any person subject to this Act who attempts to commit any of the offences specified** in sections 21 to 50 (both inclusive) and in such attempt does any act towards the commission of the offence shall, on conviction by an Assam Rifles Court, where no express provision is made by this Act for the punishment of such attempt, be liable,— (a) if the offence attempted to be committed is punishable with death, to suffer imprisonment for a term which may extend to fourteen years or such less punishment as is in this Act mentioned; and (b) if the offence attempted to be committed is punishable with imprisonment to suffer imprisonment for a term which may extend to one-half of the longest term provided for that offence or such less punishment as is in this Act mentioned. **52. Abetment of offences that have been committed.—Any person subject to this Act who abets the** commission of any of the offences specified in sections 21 to 50 (both inclusive) shall, on conviction by an Assam Rifles Court, if the Act abetted is committed in consequence of the abetment and no express provision is made by this Act for the punishment of such abetment, be liable to suffer the punishment provided for that offence or such less punishment as is in this Act mentioned. **53. Abetment of offences punishable with death and not committed.—Any person subject to this** Act who abets the commission of any of the offences punishable with death under sections 21, 24 and clause (a) of sub-section (1) of section 25 shall, on conviction by an Assam Rifles Court, if that offence, be not committed in consequence of the abetment, and no express provision is made by this Act for the punishment of such abetment, be liable to suffer imprisonment for a term which may extend to fourteen years of such less punishment as is in this Act mentioned. **54. Abetment of offences punishable with imprisonment and not committed.—Any person** subject to this Act who abets the commission of any of the offences specified in sections 21 to 50 (both inclusive) and punishable with imprisonment shall, on conviction by an Assam Rifles Court, if that offence, be not committed in consequence of the abetment, and no express provision is made by this Act for the punishment of such abetment, be liable to suffer imprisonment for a term which may extend to one-half of the longest term provided for that offence or such less punishment as is in this Act mentioned. 18 ----- **55. Civil offences.—Subject to the provisions of section 56, any person subject to this Act who at any** place in, or beyond, India commits any civil offence shall be deemed to be guilty of an offence against this Act and, if charged therewith under this section, shall be liable to be tried by an Assam Rifles Court and, on conviction, be punishable as follows, that is to say,— (a) if the offence is one which would be punishable under any law in force in India with death, he shall be liable to suffer any punishment assigned for the offence, by the aforesaid law and such less punishment as is in this Act mentioned; and (b) in any other case, he shall be liable to suffer any punishment assigned for the offence by the law in force in India, or imprisonment for a term which may extend to seven years, or such less punishment as in this Act mentioned. **56. Civil offences not triable by an Assam Rifles Court.—A person subject to this Act who** commits an offence of murder or of culpable homicide not amounting to murder against, or of rape in relation to, a person not subject to this Act shall not be deemed to be guilty of an offence against this Act and shall not be tried by an Assam Rifles Court, unless he commits any of the said offences,— (a) while on active duty; or (b) at any place outside India; or (c) at any place specified by the Central Government, by notification in this behalf. CHAPTER V PUNISHMENTS **57. Punishment awardable by Assam Rifles Courts.—(1) Punishments may be inflicted in respect** of offences committed by persons subject to this Act and convicted by the Assam Riles Courts, according to the scale following, that is to say,— (a) death; (b) imprisonment which may be for the term of life or any other lesser term but excluding imprisonment for a term not exceeding three months in Force custody; (c) dismissal from the service; (d) compulsory retirement from service; (e) imprisonment for a term not exceeding three months in Force custody except in case of officers and subordinate officers; (f) reduction to the ranks or to a lower rank or grade or place in the list of their rank in the case of an under-officer; (g) forfeiture of seniority of rank and forfeiture of all or any part of the service for the purpose of promotion; (h) forfeiture of service for the purpose of increased pay, pension or any other prescribed purpose; (i) fine; (j) severe reprimand or reprimand except in the case of persons below the rank of an under officer; (k) forfeiture of pay and allowances for a period not exceeding three months for an offence committed on active duty; (l) forfeiture in the case of person sentenced to dismissal from the service of all arrears of pay and allowances and other public money due to him at the time of such dismissal; (m) stoppage of pay and allowances until any proved loss or damage occasioned by the offence for which he is convicted is made good. 19 ----- (2) Each of the punishments specified in sub-section (1) shall be deemed to be inferior in degree to every punishment preceding it in the above scale. **58. Alternative punishments awardable by Assam Rifles Courts.—Subject to the provisions of** this Act, an Assam Rifles Court may, on convicting a person subject to this Act of any of the offences specified in sections 21 to 54 (both inclusive) award either the particular punishment with which the offence is stated in the said sections to be punishable or, in lieu thereof, any of the punishments lower in the scale set out in section 57 regard being had to the nature and degree of the offence. **59. Combination of punishments.—A sentence of an Assam Rifles Court may award in addition to,** or without any one other punishment, the punishment specified in clause (c) of sub-section (1) of section 57, and any one more of the punishments specified in clauses (f) to (m) (both inclusive) of that sub-section. **60. Retention in the Force of a person convicted on active duty.—When on active duty, any** enrolled person has been sentenced by an Assam Rifles Court to dismissal or to imprisonment whether combined with dismissal or not, the prescribed officer may direct that such person may be retained to serve in the ranks, and such service shall be reckoned as part of his term of imprisonment, if any. **61. Punishments otherwise than by Assam Rifles Courts.—Punishments may also be inflicted in** respect of offences committed by persons subject to this Act without the intervention of an Assam Rifles Court in the manner stated in sections 62, 64, 65 and 66. **62. Minor punishments.—Subject to the provisions of section 63, a Commandant or such other** officer as is, with the consent of the Central Government, specified by the Director-General may, in the prescribed manner, proceed against a person subject to this Act, otherwise than as an officer or a subordinate officer or a Warrant Officer who is charged with an offence under this Act and award such person to the extent prescribed, one or more of the following punishments, that is to say,— (a) imprisonment in Force custody up to twenty-eight days; (b) detention up to twenty-eight days; (c) confinement to the lines up to twenty-eight days; (d) extra guards or duties; (e) deprivation of any special position or special emoluments or any acting rank or reduction to a lower grade of pay; (f) forfeiture of good service and good conduct pay; (g) severe reprimand or reprimand; (h) fine up to fourteen day's pay in any one month; (i) deduction from his pay and allowances of any sum required to make good such compensation for any expense, loss, damage or destruction caused by him to the Central Government, or any building or property as may be awarded by his Commandant. **63. Limit of punishments under section 62.—(1) In the case of an award of two or more of the** punishments specified in clauses (a), (b), (c) and (d) of section 62, the punishments specified in clause (c) or clause (d) shall take effect only at the end of the punishment specified in clause (a) or clause (b). (2) When two or more of the punishments specified in the said clauses (a), (b) and (c) are awarded to a person conjointly, or when already undergoing one or more of the said punishments, the whole extent of the punishments shall not exceed in the aggregate forty-two days. (3) The punishments specified in the said clauses (a), (b) and (c) shall not be awarded to any person who is of the rank of an under-officer or was at the time of committing the offence for which he is punished of such rank. (4) The punishments specified in clause (g) of section 62 shall not be awarded to any person below the rank of an under-officer. 20 ----- **64. Punishment of officers below the rank of Deputy Commandant, subordinate officers and** **Warrant Officer by Deputy Inspectors-General and others.—(1) An officer not below the rank of the** Deputy Inspector-General or such other officer as is, with the consent of the Central Government, specified by the Director-General may, in the prescribed manner, proceed against an officer below the rank of a Deputy Commandant and of any rank of subordinate officer and of the rank of Warrant Officer who is charged with an offence under this Act and award one or more of the following punishments, that is to say,— (a) forfeiture of seniority, or in the case of any of them whose promotion depends upon the length of service, forfeiture of service for the purpose of promotion for a period not exceeding twelve months, but subject to the right of the accused previous to the award to elect to be tried by an Assam Rifles Court; (b) severe reprimand or reprimand; (c) stoppage of pay and allowances until any proved loss or damage occasioned by the offence of which he is convicted is made good. (2) In every case in which punishment has been awarded under sub-section (1), certified true copies of the proceedings shall be forwarded, in the prescribed manner, by the officer awarding the punishment to the prescribed superior authority who may, if the punishment awarded, appears to him to be illegal, unjust or excessive, cancel, vary or remit the punishment and make such other direction as may be appropriate in the circumstances of the case. **65. Punishment of officers below the rank of a Commandant, subordinate officers and Warrant** **Officer by the Inspectors-General and others.—(1) An officer not below the rank of the Inspector-** General or such other officer as is, with the consent of the Central Government, specified by the DirectorGeneral may, in the prescribed manner, proceed against an officer below the rank of a Commandant and any subordinate officer and a Warrant Officer who is charged with an offence under this Act and award one or more of the following punishment, that is to say,— (a) forfeiture of seniority, or in the case of any of them whose promotion depends upon the length of service, forfeiture of service for the purpose of promotion for a period not exceeding twelve months, but subject to the right of the accused previous to the award to elect to be tried by an Assam Rifles Court; (b) severe reprimand or reprimand; (c) stoppage of pay and allowances until any proved loss or damage occasioned by the offence of which he is convicted is made good. (2) In every case in which punishment has been awarded under sub-section (1), certified true copies of the proceedings shall be forwarded, in the prescribed manner, by the officer awarding the punishment to the prescribed superior authority who may, if the punishment awarded appears to him to be illegal, unjust or excessive, cancel, vary or remit the punishment and make such other direction as may be appropriate in the circumstances of the case. **66. Punishment of subordinate officers and Warrant Officer by Commandant, etc.—A** Commandant or such other officer as is, with the consent of the Central Government, specified by the Director-General may, in the prescribed manner, proceed against any subordinate officer or a Warrant Officer who is charged with an offence under this Act and award one or more of the following punishments, that is to say,— (a) severe reprimand or reprimand; (b) stoppage of pay and allowances until any proved loss or damage occasioned by the offence of which he is convicted is made good: Provided that the punishment mentioned under clause (a) shall only be awarded by an officer not below the rank of Commandant authorised by the Director-General to award such punishment. 21 ----- **67. Collective fines.—(1) Whenever any weapon or part of a weapon, or ammunition, forming part of** the equipment of a unit of the Force, is lost or stolen, an officer not below rank of the Commandant of a battalion may, after making such inquiry as he thinks fit and subject to the rules and regulations, impose a collective fine upon the subordinate officer, under-officer and men of such unit, or upon so many of them as, in his judgment, should be held responsible for such loss or theft. (2) Such fine shall be assessed as a percentage on the pay of the individuals on whom it falls. CHAPTER VI PENAL DEDUCTIONS **68. Deductions from pay and allowances of officers.—The following penal deductions may be** made from the pay and allowances of an officer, that is to say,— (a) all pay and allowances due to an officer for every day he absent himself without leave, unless a satisfactory explanation has been given to his commanding officer and has been approved by the Central Government; (b) all pay and allowances for every day while he is in custody or under suspension from duty on a charge for an offence for which he is afterwards convicted by a criminal court or an Assam Rifles Court or by an officer exercising authority under section 64 or section 65; (c) any sum required to make good the pay of any person subject to this Act which he has unlawfully retained or unlawfully refused to pay; (d) any sum required to make good such compensation for any expenses, loss, damage or destruction occasioned by the commission of an offence as may be determined by an Assam Rifles Court by whom he is convicted of such offence or by an officer exercising authority under section 64 or section 65; (e) all pay and allowances ordered by an Assam Rifles Court to be forfeited or stopped; (f) any sum required to pay a fine awarded by a criminal court or an Assam Rifles Court; (g) any sum required to make good any loss, damage or destruction of public or regimental property which, after due investigation, appears to the Central Government to have been occasioned by the wrongful act or negligence on the part of the officer; (h) all pay and allowances forfeited by order of the Central Government if the officer is found by a Court of inquiry constituted by the Director-General in this behalf, to have deserted to the enemy, or while in enemy hands, to have served with, or under the orders of, the enemy, or in any manner to have aided the enemy, or to have allowed himself to be taken prisoner by the enemy through want of due precaution or through disobedience of orders or wilful neglect of duty, or having been taken prisoner by the enemy, to have failed to rejoin his service when it was possible to do so; (i) any sum required by order of the Central Government to be paid for the maintenance of his wife or his legitimate or illegitimate child or towards the cost of any relief given by the said Government to the said wife or child. **69. Deductions from pay and allowances of persons other than officers.—Subject to the** provisions of section 72, the following penal deductions may be made from the pay and allowances of a person subject to this Act other than an officer, that is to say,— (a) all pay and allowances for every day of absence either on desertion or without leave, or as a prisoner of war unless a satisfactory explanation has been given and accepted by his Commandant, and for every day of imprisonment awarded by a criminal court, an Assam Rifles Court or an officer exercising authority under section 62; (b) all pay and allowances for every day while he is in custody on charge for an offence of which he is afterwards convicted by a criminal court or an Assam Rifles Court or on a charge of absence without leave for which he is afterwards awarded imprisonment by an officer exercising authority under section 62; 22 ----- (c) all pay and allowances for every day on which he is in hospital on account of sickness certified by the medical officer attending on him to have been caused by an offence under this Act committed by him; (d) for every day on which he is in hospital on account of sickness certified by the medical officer attending on him to have been caused by his own misconduct or imprudence, such sum as may be specified by the order of the Central Government or such officer as may be specified by that Government; (e) all pay and allowances ordered by an Assam Rifles Court or by an officer exercising authority under any of the sections 62, 64, 65 and 66 to be forfeited or stopped; (f) all pay and allowances for every day between his being recovered from the enemy and his dismissal from the service in consequence of his conduct when being taken prisoner by, or while in the hands of the enemy; (g) any sum required to make good such compensation for any expenses, loss, damage or destruction caused by him to the Central Government or to any building or property as may be awarded by his Commandant; (h) any sum required to pay a fine awarded by a criminal court, an Assam Rifles Court or an officer exercising authority under any of the sections 62 and 67; (i) any sum required by order of the Central Government or any prescribed officer to be paid for the maintenance of his wife or his legitimate or illegitimate child or towards the cost of any relief given by the said Government to the said wife or child. **70. Computation of time of absence of custody.—For the purpose of clauses (a) and (b) of section** 69, (a) no person shall be treated as absent or in custody for a day unless the absence or custody has lasted, whether wholly in one day, or partly in one day and partly in another, for six consecutive hours or upwards; (b) any absence or custody for less than a day may be reckoned as absence or custody for a day if such absence or custody prevented the absentee from fulfilling any duty which was thereby thrown upon some other person; (c) absence or custody for twelve consecutive hours or upward may be reckoned as absence or custody for the whole of each day during any portion of which the person was absent or in custody; (d) a period of absence or imprisonment, which commences before, and ends after, midnight may be reckoned as a day. **71. Pay and allowances during trial.—In case of any person subject to this Act who is in custody or** under suspension from duty on a charge for an offence, the prescribed officer may direct that the whole or any part of the pay and allowances of such person shall be withheld, pending the result of his trial on the charge against him, in order to give effect to the provisions of clause (b) of section 68 and section 69. **72. Limit of certain deductions.—The total deductions from the pay and allowances of a person** made under clauses (e), (g) to (i) of section 69 shall not, except where he is sentenced to dismissal or removal, exceed in any one month one-half of his pay and allowances of that month. **73. Deduction from public money due to a person.—Any sum authorised by this Act to be** deducted from the pay and allowances of any person may, without prejudice to any other mode of recovering the same, be deducted from any public money due to him other than a pension. **74. Pay and allowances of prisoner of war during inquiry into his conduct.—Where the conduct** of any person subject to this Act when being taken prisoner by, or while in the hands of the enemy, is to be inquired into this Act or any other law, the Director-General or any officer authorised by him may order that the whole or any part of the pay and allowances of such person shall be withheld pending the result of such inquiry. 23 ----- **75. Remission of deductions.—Any deduction from pay and allowances authorised by this Act may** be remitted in such manner and to such extent and by such authority, as may, from time to time be prescribed. **76. Provision for dependents of prisoner of war from remitted deductions.—In the case of all** persons subject to this Act, being prisoners of war, whose pay and allowances have been forfeited under clause (a) of section 69, but in respect of whom a remission has been made under section 75, it shall be lawful for proper provision to be made by the prescribed authorities out of such pay and allowances for any dependants of such persons, and any such remission shall in that case be deemed to apply only to the balance thereafter remaining of such pay and allowances. **77. Provision for dependents of prisoner of war from his pay and allowances.—It shall be lawful** for proper provision to be made by the prescribed authorities for any dependants of any person subject to this Act who is prisoner of war or is missing, out of his pay and allowances. **78. Period during which a person is deemed to be a prisoner of war.—For the purposes of** sections 76 and 77, a person shall be deemed to continue to be prisoner of war until the conclusion of any inquiry into his conduct such as is referred to in section 74 and if he is dismissed or removed from the service in consequence of such conduct, until the date of such dismissal or removal. CHAPTER VII ARREST AND PROCEEDINGS BEFORE TRIAL **79. Custody of offenders.—(1) Any person subject to this Act who is charged with an offence may** be taken into Force custody, under the order of any superior officer. (2) Notwithstanding anything contained in sub-section (1), an officer may order into Force custody any other officer, though such other officer may be of a higher rank, engaged in a quarrel, affray or disorder. **80. Duty of Commandant in regard to detention.—(1) It shall be the duty of every Commandant to** take care that a person under his command when charged with an offence is not detained in custody for more than forty-eight hours after the committal of such person into custody is reported to him without the charge being investigated, unless investigation within that period seems to him to be impracticable having regard to the public service. (2) The case of every person, being detained in custody beyond a period of forty-eight hours, and reason thereof, shall be reported by the Commandant to the Deputy Inspector-General under whom he is serving or such other officer to whom an application may be made to convene as Assam Rifles Court for the trial of the person charged. (3) In reckoning the period of forty-eight hours specified in sub-section (1), sundays and other public holidays shall be excluded. (4) Subject to the provisions of this Act, the Central Government may make rules providing for the manner in which and the period for which any person subject to this Act may be taken into and detained in Force custody, pending the trial by any competent authority for any offence committed by him. **81. Interval between committal and trial.—In every case where any such person as is mentioned in** section 79 and as not on active duty, remains in such custody for a longer period than eight days, without his trial by an Assam Rifles Court being ordered to be convened, a special report giving reasons for the delay shall be made by his Commandant in the manner prescribed, and a similar report shall be forwarded at intervals of every eight days until an Assam Rifles Court is convened or such person is released from custody. **82. Arrest by civil authorities.—Whenever any person subject to this Act who is accused of an** offence under this Act, is within the jurisdiction of any magistrate or police officer, such magistrate or police officer shall aid in the apprehension and delivery to Force custody of such person upon receipt of a written application to that effect signed by his Commandant or an officer authorised by the Commandant in that behalf. 24 ----- **83. Capture of deserters.—(1) Whenever any person subject to this Act deserts, the Commandant of** the unit to which he belongs, shall give information of the desertion to such civil authorities as, in his opinion, may be able to afford assistance towards the capture of the deserter; and such authorities shall thereupon take steps for the apprehension of the said deserter in like manner as if he were a person for whose apprehension a warrant had been issued by a magistrate and shall deliver the deserter, when apprehended, into Force custody. (2) Any police officer may arrest without warrant any person reasonably believed to be subject to this Act, and to be a deserter or to be travelling without authority, and shall bring him without delay before the nearest magistrate, to be dealt with according to law. **84. Inquiry into absence without leave.—(1) When any person subject to this Act has been absent** from his duty without due authority for a period of thirty days, a court of inquiry shall, as soon as practicable, be assembled and such court shall, on oath or affirmation administered in the prescribed manner, inquire respecting the absence of the person, and the deficiency, if any, in the property of the Government entrusted to his care, or in any arms, ammunition, equipment, instruments, clothing or necessaries; and if satisfied of the fact of such absence without due authority or other sufficient cause, the court shall declare such absence and the period thereof and the said deficiency, if any, and the Commandant of the unit to which the person belongs shall make a record thereof in the prescribed manner. (2) If the person declared absent does not afterwards surrender or is not apprehended, he shall, for the purposes of this Act, be deemed to be deserter. **85. Force Police Officers.—(1) The Director-General or any prescribed officer may appoint persons** (in this Act referred to as Force Police) for discharging the functions specified in sub-sections (2) and (3). (2) The duties of a person appointed under sub-section (1), are to take charge of persons confined for any offence, to preserve good order and discipline and to prevent breaches of the same by persons serving in, or attached to, the Force. (3) Notwithstanding anything contained in section 79, a person appointed under sub-section (1) may, at any time, arrest and detain for trial, any person subject to this Act who commits, or is charged with, an offence, and may also carry into effect any punishment to be inflicted in pursuance of a sentence awarded by an Assam Rifles Court or by an officer exercising authority under section 62 but shall not inflict any punishment on his own authority: Provided that no officer shall be arrested or detained otherwise than on the order of another officer. CHAPTER VIII ASSAM RIFLES COURTS **86. Kinds of Assam Rifles Courts.—For the purposes of this Act there shall be three kinds of Assam** Rifles Courts, that is to say,— (a) General Assam Rifles Courts; (b) Petty Assam Rifles Courts; and (c) Summary Assam Rifles Courts. **87. Power to convene a General Assam Rifles Court.—A General Assam Rifles Court may be** convened by the Central Government or the Director-General or by any officer empowered in this behalf by warrant of the Director-General. **88. Power to convene a Petty Assam Rifles Court.—A Petty Assam Rifles Court may be convened** by an officer having power to convene a General Assam Rifles Court or by an officer empowered in this behalf by warrant of any such officer. **89. Contents of warrants issued under sections 87 and 88.—A warrant issued under section 87 or** section 88 may contain such restrictions, reservations or conditions as the officer issuing it may think fit. **90. Composition of General Assam Rifles Court.—A General Assam Rifles Court shall consist of** not less than five officers, each of whom has held the post of Assistant Commandant for not less than 25 ----- three whole years and of whom not less than four are of a rank not below that of confirmed Assistant Commandant. _Explanation.—For the purpose of this section and section 91, “Assistant Commandant” includes any_ post of a higher rank and any post declared by the Central Government, by notification, to be an equivalent post as also any post higher in rank than the post so declared. **91. Composition of a Petty Assam Rifles Court.—A Petty Assam Rifles Court shall consist of not** less than three officers each of whom has held the post of Assistant Commandant for not less than two whole years. **92. Summary Assam Rifles Court.—(1) A Summary Assam Rifles Court may be held by the** Commandant of any unit of the Force and he alone shall constitute the Court. (2) The proceeding shall be attended throughout by two other persons who shall be officers or subordinate officers or one of either, and who shall not as such, be sworn or affirmed. **93. Dissolution of an Assam Rifles Court.—(1) If an Assam Rifles Court after the commencement** of a trial is reduced below the minimum number of officers required by this Act, it shall be dissolved. (2) If, on account of the illness of the Law Officer or of the accused before the finding, it is impossible to continue the trial, an Assam Rifles Court shall be dissolved. (3) The officer who convened an Assam Rifles Court may dissolve the same if it appears to him that the exigencies of the service or necessities of discipline render it imposible or inexpedient to continue the said Assam Rifles Court. (4) Where an Assam Rifles Court is dissolved under this section, the accused may be tried again. **94. Power of General Assam Rifles Court.—A General Assam Rifles Court shall have the power to** try any person subject to this Act for any offence punishable thereunder and to pass any sentence authorised thereby. **95. Power of a Petty Assam Rifles Court.—A Petty Assam Rifles Court shall have power to try any** person subject to this Act other than an officer or a subordinate officer for any offence made punishable thereunder and to pass any sentence authorised by this Act other than a sentence of death or imprisonment for a term exceeding two years. **96. Power of a Summary Assam Rifles Court.—(1) Subject to the provisions of sub-section (2), a** Summary Assam Rifles Court may try any offence punishable under this Act. (2) When there is no grave reason for immediate action and reference can, without detriment to discipline, be made to the officer empowered to convene a Petty Assam Rifles Court for the trial of the alleged offender, an officer holding a Summary Assam Rifles Court shall not try without such reference any offence punishable under any of the sections 21, 24 and 55, or any offence against the officer holding the Court. (3) A Summary Assam Rifles Court may try any person subject to this Act and under the command of the officer holding the Court, except an officer or a subordinate officer. (4) A Summary Assam Rifles Court may pass any sentence which may be passed under this Act except the sentence of death or if imprisonment for a term exceeding the limit specified in sub-section (5). (5) The limit referred to in sub-section (4) shall be— (a) one year, if the officer holding the Assam Rifles Court has held either the post of Commandant or a post declared by the Central Government, by notification, to be equivalent thereto for a period of not less than three years or holds a post of higher rank than either of the said posts; and (b) three months, in any other case. **97. Prohibition of second trial.—(1) When any person subject to this Act has been acquitted or** convicted of an offence by an Assam Rifles Court or by a criminal court or has been dealt with under 26 ----- section 62 or section 64 or section 65 or section 66, he shall not be liable to be tried again for the same offence by an Assam Rifles Court or dealt with under the said sections. (2) When any person, subject to this Act has been acquitted or convicted of an offence by an Assam Rifles Court or has been dealt with under section 62 or section 64 or section 65 or section 66, he shall not be liable to be tried again by a criminal court for the same offence or on the same facts. **98. Period of limitation for trial.—(1) Except as provided by sub-section (2), no trial by an Assam** Rifles Court of any person subject to this Act for any offence shall be commenced after the expiration of a period of three years and such period shall commence— (a) on the date of the offence; or (b) where the commission of the offence was not known to the person aggrieved by the offence or to the authority competent to initiate action, from the first day on which such offence comes to the knowledge of such person or authority, whichever is earlier; or (c) where it is not known by whom the offence was committed, from the first day on which the identity of the offender is known to the person aggrieved by the offence or to the authority competent to initiate action, whichever is earlier: Provided that in computing any period under this section, the period during which the proceedings of investigation has been stayed by any court in such offence by injunction or order, the period of the continuance of the injunction or order, the day on which it was issued or made; and the day on which it was withdrawn, shall be excluded. (2) The provisions of sub-section (1) shall not apply to a trial for an offence of desertion or for any of the offences mentioned in section 24 or an offence under section 30. (3) In computation of the period of three years under sub-section (1), any time spent by such person in evading arrest after the commission of the offence, shall be excluded. **99. Trial, etc., of offender who ceases to be subject to this Act.—(1) Where an offence under this** Act had been committed by any person while subject to this Act and he had ceased to be so subject, he may be taken into and kept in Force custody and tried and punished for such offence as if he continued to be so subject. (2) No such person shall be tried for an offence, unless his trial commences within a period of three years after he had ceased to be subject to this Act; and in computing such period, the time during which such person has avoided arrest by absconding or concealing himself or where the institution of the proceeding in respect of the offence has been stayed by an injunction or order, the period of the continuance of the injunction or order, the day on which it was issued or made, and the day on which it was withdrawn, shall be excluded: Provided that nothing contained in this sub-section shall apply to the trial of any such person for an offence of desertion or for any of the offences mentioned in section 24 or shall affect the jurisdiction of a criminal court to try an offence triable by such court as well as by an Assam Rifles Court. **100. Application of this Act during term of sentence.—(1) When a person subject to this Act is** sentenced by an Assam Rifles Court to imprisonment, this Act shall apply to him during the term of his sentence, though he is dismissed from the Force or has otherwise ceased to be subject to this Act, and he may be kept, removed, imprisoned and punished as if he continued to be subject to this Act. (2) When a person subject to this Act is sentenced by an Assam Rifles Court to death, this Act shall apply to him till the sentence is carried out. **101. Place of trial.—Any person subject to this Act who commits any offence against it may be tried** and punished for such offence in any place whatever. **102. Choice between criminal court and Assam Rifles Court.—When a criminal court and an** Assam Rifles Court each have jurisdiction in respect of an offence, it shall be in the discretion of the Director-General, or the Inspector General or the Deputy Inspector-General within whose command the accused person is serving or such other officer as may be prescribed, to decide before which court 27 ----- proceedings shall be instituted, and, if that officer, decides that they shall be instituted before an Assam Rifles Court, to direct that the accused person shall be detained in Force custody. **103. Power of criminal court to require delivery of offender.—(1) When a criminal court having** jurisdiction is of opinion that proceedings shall be instituted before itself in respect of any alleged offence, it may, by written notice, require the officer referred to in section 102 at his option, either to deliver over the offender to the nearest Magistrate to be proceeded against according to law, or to postpone proceedings, pending a reference to the Central Government. (2) In every such case the said officer shall either deliver over the offender in compliance with the requisition, or shall forthwith refer the question as to the court before which the proceedings are to be instituted, for the determination of the Central Government whose order upon such reference shall be final. CHAPTER IX PROCEDURE OF ASSAM RIFLES COURTS **104. Presiding Officer.—At every General Assam Rifles Court or Petty Assam Rifles Court, the** senior member shall be the presiding officer. **105. Law Officer.—Every General Assam Rifles Court shall, and every Petty Assam Rifles Court** may, be attended by a Law Officer, or if no such officer is available, an officer approved by the Chief Law Officer or a Law Officer. **106. Challenges.—(1) At all trials by a General Assam Rifles Court or by a Petty Assam Rifles** Court, as soon as the Court is assembled, the names of the presiding officer and members shall be read over to the accused, who shall thereupon be asked whether he objects to being tried by any officer sitting on the court. (2) If the accused objects to such officer, his objection and also the reply thereto of the officer objected to, shall be heard and recorded, and the remaining officers of the court shall, in the absence of the challenged officer, decide on the objection. (3) If the objection is allowed by one-half or more of the votes of the officers entitled to vote, the objection shall be allowed, and the member objected to shall retire, and his vacancy may be filled in the prescribed manner, by another officer subject to the same right of the accused to object. (4) When no challenge is made, or when a challenge has been made and disallowed, or the place of every officer successfully challenged has been filled by another officer to whom no objection is made or allowed, the court shall proceed with the trial. **107. Oath of member, Law Officer and witness.—(1) An oath or affirmation in the prescribed** manner shall be administered to every member of an Assam Rifles Court and to the Law Officer or, as the case may be, the officer approved under section 105 before the commencement of the trial. (2) Every person giving evidence before an Assam Rifles Court shall be examined after being duly sworn or affirmed in the prescribed form. (3) The provisions of sub-section (2) shall not apply where the witness is a child under twelve years of age and the Assam Rifles Court is of opinion that though the witness understands the duty of speaking the truth, he does not understand the nature of an oath or affirmation. **108. Voting by members.—(1) Subject to the provisions of sub-sections (2) and (3), every decision** of an Assam Rifles Court shall be passed by a majority of votes; and where there is an equality of votes on either the finding or the sentence, the decision shall be in favour of the accused. (2) No sentence of death shall be passed by a General Assam Rifles Court without the concurrence of at least two-thirds of the members of the Court. (3) In matters, other than a challenge or the finding or sentence, the presiding officer shall have a casting vote. 28 ----- **109. General rule as to evidence.—The Indian Evidence Act, 1872 (1 of 1872), shall, subject to the** provisions of this Act, apply to all proceedings before an Assam Rifles Court. **110. Judicial notice.—An Assam Rifles Court may take judicial notice of any matter within the** general knowledge of the members as officers of the Force. **111. Summoning of witness.—(1) The convening officer, the presiding officer of an Assam Rifles** Court or court of inquiry or the Law Officer or, as the case may be, the officer approved under section 105 or the Commandant of the accused person may, by summons under his hand, require the attendance, at a time and place to be mentioned in the summons, of any person either to give evidence or to produce any document or other thing. (2) In the case of a witness, who is subject to this Act, the summons shall be sent to his Commandant and such officer shall serve it upon him accordingly. (3) In the case of any other witness, the summons shall be sent to the Magistrate within whose jurisdiction he may be, or resides, and such Magistrate shall give effect to the summons as if the witness were required in the court of such Magistrate. **112. Documents exempted from production.—(1) Nothing in section 111 shall be deemed to affect** the operation of sections 123 and 124 of the Indian Evidence Act, 1872 (1 of 1872) or to apply to any letter, postcard, telegram or other document in the custody of the postal or telegraph authorities. (2) If any document in such custody is, in the opinion of any Chief Judicial Magistrate, Chief Metropolitan Magistrate, Court of Session or High Court, wanted for the purpose of any Assam Rifles Court, such Magistrate or Court may require the postal or telegraph authorities, as the case may be, to deliver such document to such person as such Magistrate, or Court may direct. (3) If any such documents is, in the opinion of any other Magistrate of any Commissioner of Police or District Superintendent of Police, wanted for any such purpose, he may require the postal or telegraph authorities, as the case may be, to cause such search to be made for, and to detain such document pending the orders of any such Chief Judicial Magistrate, Chief Metropolitan Magistrate or Court of Session or High Court. **113. Commission for examination of witness.—(1) Whenever, in the course of a trial by an Assam** Rifles Court, it appears to the Court that the examination of a witness is necessary for the ends of justice, and that the attendance of such witness cannot be procured without an amount of delay, expense or inconvenience which, in the circumstances of the case, would be unreasonable, such court may address the Chief Law Officer in order that a commission to take the evidence of such witness may be issued. (2) The Chief Law Officer may then, if he thinks necessary, issue a commission to any Chief Judicial Magistrate or Judicial Magistrate of the first class, within the local limits of whose jurisdiction such witness resides to take the evidence of such witness. (3) The Chief Judicial Magistrate or Judicial Magistrate of the first class to whom the commission is issued, or if he is the Chief Judicial Magistrate, he or such Judicial Magistrate of the first class as he appoints in this behalf, shall summon the witness before him and shall take down his evidence in the same manner, and may for this purpose exercise the same powers, as in the trials of warrant-cases under the Code of criminal Procedure, 1973 (2 of 1974). (4) When the witness resides in tribal area or in any place outside India, the commission may be issued in the manner specified in sub-heading “B.—Commissions _for the examination of witnesses” of_ Chapter XXIII of the Code of Criminal Procedure, 1973 (2 of 1974). **114. Examination of witness on commission.—(1) The prosecutor and the accused person in any** case in which a commission is issued under section 113 may respectively forward any interrogatories in writing which the court may think relevant to the issue, and the Chief Judicial Magistrate or the Judicial Magistrate of the first class executing the commission shall examine the witness upon such interrogatories. 29 ----- (2) The prosecutor and the accused person may appear before such Chief Judicial Magistrate or the Judicial Magistrate of the first class by counsel or, except in the case of an accused person in custody, in person, and may examine, cross-examine and re-examine, as the case may be, the said witness. (3) After a commission issued under section 113 has been duly executed, it shall be returned, together with the deposition of the witness examined thereunder to the Chief Law Officer. (4) On receipt of a commission, and deposition returned under sub-section (3), the Chief Law Officer shall forward the same to the court at whose instance the commission was issued or, if such court has been dissolved, to any other court convened for the trial of the accused person and the commission, the return thereto and the deposition shall be open to inspection by the prosecutor or the accused, person and may, subject to all just exceptions, be read in evidence in the case by either the prosecutor or the accused, and shall form part of the proceedings of the court. (5) In every case in which a commission is issued under section 113, the trial may be adjourned for specified time reasonably sufficient for the execution and return of the commission. **115. Conviction of offences not charged.—A person charged before an Assam Rifles Court—** (a) with desertion may be found guilty of attempting to desert or of being absent without leave; (b) with attempting to desert may be found guilty of being absent without leave; (c) with using criminal force may be found guilty of assault; (d) with using threatening language may be found guilty of using insubordinate language; (e) with any one of the offences specified in clauses (a), (b), (c) and (d) of section 39 may be found guilty of any other of these offences with which he might have been charged; (f) with an offence punishable under section 55 may be found guilty of any other offence of which he might have been found guilty, if the provisions of the Code of Criminal Procedure, 1973 (2 of 1974), were applicable; (g) with any offence under this Act may, on failure of proof of an offence having been committed in circumstances involving a more severe punishment, be found guilty of the same offence as having been committed in circumstances involving a less severe punishment; (h) with any offence under this Act may be found guilty of having attempted or abetted the commission of that offence, although the attempt or abetment is not separately charged. **116. Presumption as to signatures.—In any proceeding under this Act, any application, certificate,** warrant, reply or other document purporting to be signed by an officer in the service of the Government shall, on production, be presumed to have been duly signed by the person by whom and in the character in which it purports to have been signed, until the contrary is shown. **117. Enrolment paper.—(1) Any enrolment paper purporting to be signed by an enrolling officer** shall, in proceedings under this Act, be evidence of the person enrolled having given the answers to questions which he is therein represented as having given. (2) The enrolment of such person may be proved by the production of the original or a copy of this enrolment paper purporting to be certified to be a true copy by the officer having custody of enrolment paper. **118. Presumption as to certain documents.—(1) A letter, return or other document respecting the** service of any person in, or the dismissal, removal or discharge of any person from, any unit of the Force, or respecting the circumstances of any person not having served in, or belonged to any unit of the Force, if purporting to be signed by or on behalf of the Central Government or the Director-General, or by any prescribed officer, shall be the evidence of facts stated in such letter, return or other document. (2) An Assam Rifles list or Gazette purporting to be published by authority shall be evidence of the status and rank of the officers, subordinate officers therein mentioned, and of any appointment held by them and of the battalion, unit or branch of the Force to which they belong. 30 ----- (3) Where a record is made in any battalion book in pursuance of this Act or of any rules or otherwise in the discharge of official duties, and purporting to be signed by the Commandant or by the officer whose duty it is to make such record, such record shall be evidence of the facts therein stated. (4) A copy of any record in any battalion book purporting to be certified to be a true copy by the officer having custody of such book shall be evidence of such record. (5) Where any person subject to this Act is being tried on a charge of desertion or of absence without leave, and such person has surrendered himself into the custody of any officer or other person subject to this Act, or any unit of the Force, or has been apprehended by such officer or person, a certificate purporting to be signed by such officer or by the Commandant of the unit to which such person belongs, as the case may be, and stating the fact, date and place of such surrender or apprehension, and the manner in which he was dressed, shall be the evidence of the matters so stated. (6) Where any person subject to this Act is being tried on a charge of desertion or of absence without leave and such person has surrendered himself into the custody of, or has been apprehended by, a police officer not below the rank of an officer in charge of a police station, a certificate purporting to be signed by such police officer and stating facts, the date and place of such surrender or apprehension, and the manner in which he was dressed shall be evidence of the matters so stated. (7) Any document purporting to be the report under the hand of a Government scientific expert, upon any matter or thing duly submitted to him for examination or analysis and report in the course of any proceeding under this Act, may be used as evidence in any inquiry, trial or other proceeding under this Act. (8) The Assam Rifles Court may, if it thinks fit, summon and examine the expert referred to in sub section (7) as to the subject matter of his report. (9) Where any such expert is summoned by an Assam Rifles Court and he is unable to attend personally, he may, unless the Court has expressly directed him to appear personally, depute any responsible officer working with him to attend the Court, if such deputed officer is conversant with the facts of the case and satisfactorily depose in the Court on his behalf. (10) The provisions of sub-sections (7), (8) and (9) shall apply to such Government scientific experts as specified in sub-section (4) of section 293 of the Code of Criminal Procedure, 1973 (2 of 1974). **119. Reference by accused to Government officer.—(1)** If at any trial for desertion or absence without leave, overstaying leave or not rejoining when warned for service, the accused person states in his defence any sufficient or reasonable excuse for his unauthorised absence, and refers in support thereof to any officer in the service of the Government, or if it appears that any such officer is likely to prove or disprove the said statement in the defence, the Court shall address such officer and adjourn the proceedings until his reply is received. (2) The written reply of any officer so referred to shall, if signed by him, be received in evidence and have the same effect as if made on oath before the Court. (3) If the Court is dissolved before the receipt of such reply or if the Court omits to comply with the provisions of this section, the convening officer may, at his discretion, annul the proceedings and order a fresh trial. **120. Evidence of previous convictions and general character.—(1) When any person subject to** this Act has been convicted by an Assam Rifles Court of any offence, such Assam Rifles Court may inquire into, and receive, and record evidence of any previous convictions of such person, either by an Assam Rifles Court or by a criminal court, or any previous award of punishment under section 62 or section 64 or section 65 or section 66, and may further inquire into and record the general character of such person and such other matters as may be prescribed. (2) Evidence received under this section may be either oral, or in the shape of entries in, or certified extracts from, books of an Assam Rifles Court, or other official records; and it shall not be necessary to give notice before trial to the person tried that evidence as to his previous convictions or character will be received. 31 ----- (3) At a Summary Assam Rifles Court, the officer holding the trial may, if he thinks fit, record any previous convictions against the offender, his general character, and such other matters as may be prescribed, as of his own knowledge, instead of requiring them to be proved under the foregoing provisions of this section. **121. Lunacy of accused.—(1) Whenever, in the course of a trial by an Assam Rifles Court, it appears** to the Court that the person charged is by reason of unsoundness of mind incapable of making his defence, or that he committed the act alleged but was by reason of unsoundness of mind incapable of knowing the nature of the act or knowing that it was wrong or contrary to law, the Court shall record a finding accordingly. (2) The presiding officer of the Court, or in the case of a Summary Assam Rifles Court, the officer holding the trial, shall forthwith report the case to the confirming officer, or to the authority empowered to deal with its findings under section 137, as the case may be. (3) The confirming officer to whom the case is reported under sub-section (2) may, if he does not confirm the finding, take steps to have the accused person tried by the same or another Assam Rifles Court for the offence with which he was charged. (4) The authority to whom the finding of a Summary Assam Rifles Court is reported under sub section (2), and a confirming officer confirming the finding in any case so reported to him shall order the accused person to be kept in custody in the prescribed manner and shall report the case for the orders of the Central Government. (5) On receipt of a report under sub-section (4), the Central Government may order the accused person to be detained in a lunatic asylum or other suitable place of safe custody. **122. Subsequent fitness of lunatic accused for trial.—Where any accused person, having been** found by reason of unsoundness of mind to be incapable of making his defence, is in custody or under detention under section 121, any officer prescribed in this behalf, may,— (a) if such person is in custody under sub-section (4) of section 121, on the report of a medical officer that he is capable of making his defence, or (b) if such person is detained in a jail under sub-section (5) of section 121 on a certificate of the Inspector-General of Prisons, and if such person is detained in a lunatic asylum under the said subsection, on a certificate of any two or more of the visitors of such asylum and if he is detained in any other place under that sub-section, on a certificate of the prescribed authority, that he is capable of making his defence, take steps to have such person tried by the same or another Assam Rifles Court for the offence with which he was originally charged or, if the offence is a civil offence, by a criminal court. **123. Transmission to Central Government of orders under section 122.—A copy of every order** made by an officer under section 122 for the trial of the accused shall forthwith be sent to the Central Government. **124. Release of lunatic accused.—Where any person is in custody under sub-section (4) of section** 121 or under detention under sub-section (5) of that section,— (a) if such person is in custody under the said sub-section (4), on the report of a medical officer, or (b) if such person is detained under the said sub-section (5), on a certificate from any of the authorities mentioned in clause (b) of section 122 that in the judgment of such officer or authority such person may be released without danger of his doing injury to himself or to any other person, the Central Government may order that such person be released or detained in custody, or transferred to a public lunatic asylum if he has not already been to such an asylum. **125. Delivery of lunatic accused to relatives.—Where any relative or friend of any person who is in** custody under sub-section (4) of section 121 or under detention under sub-section (5) of that section desires that he should be delivered to his care and custody, the Central Government, may, upon 32 ----- application by such relative or friend and, on his giving security to the satisfaction of that Government that the person delivered shall be properly taken care of and, prevented from doing injury to himself or to any other person, and be produced for the inspection of such officer, and at such times and places, as the Central Government may direct, order such person to be delivered to such relative or friend. **126. Order for custody and disposal of property pending trial.—When any property regarding** which any offence appears to have been committed, or which appears to have been used for the commission any offence, is produced before an Assam Rifles Court during a trial, the Court may make such order as it thinks fit for the proper custody of such property pending the conclusion of the trial, and if the property is subject to speedy or natural decay may, after recording such evidence as it thinks necessary, order it to be sold otherwise disposed of. **127. Order of disposal of property regarding which offence is committed.—(1) After the** conclusion of a trial before any Assam Rifles Court, the Court or the officer confirming the finding or sentence of such Assam Rifles Court, or any authority superior to such officer, or, in the case of Summary Assam Rifles Court whose finding or sentence does not require confirmation, an officer not below the rank of Deputy Inspector-General within whose command the trial was held, may make such order as it or he thinks fit for the disposal by destruction, confiscation, delivery to any person claiming to be entitled to possession thereof, or otherwise, of any property or document produced before the Court or in its custody, or regarding which any offence appears to have been committed or which has been committed or which has been used for the commission of any offence. (2) Where any order has been made under sub-section (1) in respect of property regarding which an offence appears to have been committed, a copy of such order signed and certified by the authority making the same may, whether the trial was held within India or not, be sent to a Magistrate within whose jurisdiction such property for the time being is situated, and such Magistrate shall thereupon cause the order to be carried into effect as if it were an order passed by him under the provisions of the Code of Criminal Procedure, 1973 (2 of 1974). (3) In this section, the term “property” includes, in the case of property regarding which an offence appears to have been committed, not only such property as has been originally in the possession or under the control of any person, but also any property into or for which the same may have been converted or exchanged, and anything acquired by such conversion or exchange whether immediately or otherwise. **128. Powers of Assam Rifles Court in relation to proceedings under this Act.—Any trial by an** Assam Rifles Court under the provisions of the Act shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 of the Indian Penal Code (45 of 1860) and the Assam Rifles Court shall be deemed to be the Court within the meaning of sections 345 and 346 of the Code of Criminal Procedure, 1973 (2 of 1974). CHAPTER X CONFIRMATION AND REVISION **129. Finding and sentence not valid unless confirmed.—No finding or sentence of a General** Assam Rifles Court or a Petty Assam Rifles Court shall be valid except so far as it may be confirmed as provided by this Act. **130. Power to confirm finding and sentence of General Assam Rifles Court.—The findings and** sentences of General Assam Rifles Courts may be confirmed by the Central Government or by any officer empowered in this behalf by warrant of the Central Government. **131. Power to confirm finding and sentence of Petty Assam Rifles Court.—The findings and** sentences of Petty Assam Rifles Court may be confirmed by an officer having powers to convene a General Assam Rifles Court or by any officer empowered in this behalf by warrant of such officer. **132. Limitation of powers of confirming authority.—A warrant issued under section 130 or section** 131 may contain such restrictions, reservations or conditions as the authority issuing it may think fit. **133. Power for confirming authority to mitigate, remit or commute sentences.—Subject to such** restrictions, reservations or conditions, as may be contained in any warrant issued under section 130 or 33 ----- section 131, a confirming authority may, when confirming the sentence of an Assam Rifles Court, mitigate or remit the punishment thereby awarded, or commute that punishment for any punishment or punishment lower in the scale laid down in section 57. **134. Confirming of findings and sentences on board a ship.—When any person subject to this Act** is tried and sentenced by an Assam Rifles Court while on board a ship, the finding and sentence so far as not confirmed and executed on board the ship, may be confirmed and executed in like manner as if such person had been tried at the port of disembarkation. **135. Revision of finding or sentence.—(1) Any finding or sentence of an Assam Rifles Court which** requires confirmation may be once revised by order of the confirming authority and on such revision, the Court, if so directed by the confirming authority, may take additional evidence. (2) The Court, on revision, shall consist of the same officers as were present when the original decision was passed unless any of those officers are unavoidably absent. (3) In case of such unavoidable absence the cause thereof shall be duly certified in the proceedings, and the Court shall proceed with the revision: Provided that, if a General Assam Rifles Court, still consists of five officers, or, if a Petty Assam Rifles Court, of three officers. **136. Finding and sentence of a Summary Assam Rifles Court.—(1) Save as otherwise provided in** sub-section (2), the finding and sentence of a Summary Assam Rifles Court shall not require to be confirmed, but may be carried out forthwith. (2) If the officer holding the trial is of the rank of Deputy Commandant or of a rank declared under clause (a) of sub-section (5) of section 96 as equivalent thereto or of a lower rank and has held such rank for less than five years, he shall not, except on active duty, carry into effect any sentence, until it has received the approval of an officer not below the rank of a Deputy Inspector-General. **137. Transmission of proceedings of Summary Assam Rifles court.—The proceedings of every** Summary Assam Rifles Court shall, without delay, be forwarded to the officer not below the rank of Deputy Inspector-General within whose command the trial was held, or to the prescribed officer, and such officer or the Director General or any officer empowered by him in this behalf may, for reasons based on the merits of the case, but not on merely technical grounds, set aside the proceedings, or reduce the sentence to any other sentence which the court might have passed. **138. Alteration of finding or sentence in certain cases.—(1) Where a finding of guilty by an Assam** Rifles Court, which has been confirmed or which does not require confirmation, is found for any reason to be invalid or cannot be supported by the evidence, the authority which would have had power under section 150 to commute the punishment awarded by the sentence, if the finding had been valid may substitute a new finding and pass a sentence for the offence specified or involved in such finding: Provided that no such substitution shall be made unless such finding could have been validly made by the Assam Rifles Court on the charge and unless it appears that the Assam Rifles Court must have been satisfied of the facts establishing the said offence. (2) Where a sentence passed by an Assam Rifles Court which has been confirmed, or which does not require confirmation, not being a sentence passed in pursuance of new finding substituted under subsection (1) is found for any reason to be invalid, the authority referred to sub-section (1) may pass a valid sentence. (3) The punishment awarded by a sentence passed under sub-section (1) or sub-section (2) shall not be higher in the scale of punishment than, or in excess of, the punishment awarded by, the sentence for which a new sentence is substituted under this section. (4) Any finding substituted, or any sentence passed, under this section shall, for the purpose of this Act and the rules, have effect as if it were a finding or sentence, as the case may be, of an Assam Rifles Court. 34 ----- **139. Remedy against order, finding or sentence of Assam Rifles Court.—(1) Any person subject** to this Act who considers himself aggrieved by any order passed by any Assam Rifles Court may present a petition to the officer or authority empowered to confirm any finding or sentence of the Assam Rifles Court and the confirming authority may take such steps as may be considered necessary to satisfy itself as to the correctness, legality or propriety of the order passed or as to regularity of any proceeding to which the order relates. (2) Any person subject to this Act who considers himself aggrieved by a finding or sentence of any Assam Rifles Court which has been confirmed may present a petition to the Central Government, the Director-General or any prescribed officer superior in command to the one who confirmed such finding or sentence, and the Central Government, the Director-General or the prescribed officer, as the case may be, may pass such order thereon as it or he thinks fit. **140. Annulment of proceedings.—The Central Government, the Director-General or any prescribed** officer may annul the proceeding of any Assam Rifles Court on the ground that they are illegal or unjust. CHAPTER XI EXECUTION OF SENTENCE, PARDON, REMISSION, ETC. **141. Form of sentence of death.—In awarding a sentence of death, an Assam Rifles Court shall in** its discretion direct that the offender shall suffer death by being hanged by the neck until he be dead, or shall suffer death by being shot to death. **142. Commencement of sentence of imprisonment.—Whenever any person is sentenced by an** Assam Rifles Court under this Act to imprisonment, the term of his sentence shall, whether it has been revised or not, be reckoned to commence on the day in which the original proceedings were signed by the presiding officer, or in the case of a Summary Assam Rifles Court, by the Court: Provided that when a person subject to this Act is sentenced by an Assam Rifles Court to a term of imprisonment, not being an imprisonment in default of payment of fine, the period spent by him in civil or Force custody during investigation, inquiry or trial of the same case, and before the date of order, such sentence shall be set off against the term of imprisonment imposed upon him and the liability of such person or officer to undergo imprisonment on such order of sentence shall be restricted to the remainder, if any, of the term of imprisonment imposed upon him. **143. Execution of sentence of imprisonment.—(1) Whenever any sentence of imprisonment is** passed under this Act by an Assam Rifles Court or whenever any sentence of death is commuted to imprisonment, the confirming officer or in case of a Summary Assam Rifles Court, the officer holding the Court or such other officer as may be prescribed, shall, save as otherwise provided in sub-sections (3) and (4) direct that the sentence shall be carried out by confinement in a civil prison. (2) When a direction has been made under sub-section (1), the Commandant of the person under sentence or such other officer as may be prescribed shall forward a warrant in the prescribed form to the officer in charge of the prison in which such person is to be confined and shall arrange for his despatch to such prison with the warrant. (3) In the case of a sentence of imprisonment for a period not exceeding three months and passed under this Act by an Assam Rifles Court the appropriate officer under sub-section (1) may direct that the sentence shall be carried out by confinement in force custody instead of in a civil prison. (4) On active duty, a sentence of imprisonment may be carried out by confinement in such place as the Deputy Inspector-General within whose command the person sentenced is serving or any prescribed officer may from time to time appoint. **144. Temporary custody of offender.—Where a sentence of imprisonment is directed to be** undergone in a civil prison, the offender may be kept in Force custody or in any other fit place till such time as it is possible to send him to a civil prison. **145. Execution of sentence of imprisonment in special cases.—Whenever, in the opinion of an** officer not below the rank of Deputy Inspector-General within whose command the trial is held, any sentence or portion of a sentence of imprisonment cannot for special reasons, conveniently be carried out 35 ----- in Force custody in accordance with the provisions of section 143, such officer may direct that such sentence or portion of sentence shall be carried out by confinement in any civil prison or other fit place. **146. Conveyance of prisoner from place to place.—A person under sentence of imprisonment may,** during his conveyance from place to place, or when on board ship, aircraft or otherwise, be subjected to such restraint as is necessary for his safe conduct and removal. **147. Communication of certain orders to prison officers.—When an order is duly made under this** Act setting aside or varying any sentence, order or warrant under which any person is confined in a civil prison, a warrant in accordance with such order shall be forwarded by the officer making the order or his staff officer or such other person as may be prescribed, to the officer in charge of the prison in which such person is confined. **148. Execution of sentence of fine.—When a sentence of fine is imposed by an Assam Rifles Court** under section 55, a copy of such sentence signed and certified by the confirming officer, or where no confirmation is required by the officer holding the trial may be sent to any Magistrate in India and such Magistrate shall thereupon cause the fine to be recovered in accordance with the provisions of the Code of Criminal Procedure, 1973 (2 of 1974) as if it were a sentence of fine imposed by such Magistrate. **149. Informality or error in order or warrant.—Whenever any person is sentenced to** imprisonment under this Act and is undergoing the sentence in any place or manner in which he might be confined under a lawful order or warrant in pursuance of this Act, the confinement of such person shall not be deemed to be illegal only by reason of informality or error in, or as respects the order, warrant or other document, or the authority by which, or in pursuance where of such person was brought into, or is confined in any such place, and any such order, warrant or document may be amended accordingly. **150. Pardon and remission.—When any person subject to this Act has been convicted by an Assam** Rifles Court of any offence, the Central Government or the Director-General, or in the case of a sentence which he could have confirmed or which did not require confirmation, an officer not below the rank of Deputy Inspector-General within whose command such person at the time of conviction was serving or the prescribed officer may,— (a) either with or without conditions which the person sentenced accepts, pardon the person or remit the whole or any part of the punishment awarded; or (b) mitigate the punishment awarded; or (c) commute such punishment for any less punishment or punishments mentioned in this Act; or (d) either with or without conditions which the person sentenced accepts, release the person on parole. **151. Cancellation of conditional pardon, release on parole or remission.—(1) If any condition on** which a person has been pardoned or released on parole or a punishment has been remitted is, in the opinion of the authority which granted the pardon, release or remission, not fulfilled, such authority may cancel the pardon, release or remission, and thereupon the sentence of the Court shall be carried into effect as if such pardon, release or remission had not been granted. (2) A person whose sentence of imprisonment is carried into effect under the provisions of sub section (1) shall undergo only the unexpired portion of his sentence. **152. Suspension of sentence of imprisonment.—(1) Where a person subject to this Act is sentenced** by an Assam Rifles Court to imprisonment, the Central Government, the Director-General or any officer empowered to convene a General Assam Rifles Court may suspend the sentence whether or not the offender has already been committed to prison or to Force custody. (2) The authority or officer specified in sub-section (1) may, in the case of an offender so sentenced direct that until the order of such authority or officer have been obtained, the offender shall not be committed to prison or to Force custody. (3) The powers conferred by sub-sections (1) and (2) may be exercised in the case of any such sentence with has been confirmed, reduced or commuted. 36 ----- **153. Orders pending suspension.—(1) Where sentence referred to in section 152 is imposed by an** Assam Rifles Court other than Summary Assam Rifles Court, the confirming officer may, when confirming the sentence, direct that the offender be not committed to prison or to Force custody until the orders of the authority or officer specified in section 152 have been obtained. (2) Where a sentence of imprisonment is imposed by a Summary Assam Rifles Court, the officer holding the trial or the officer authorised to approve the sentence under sub-section (2) of section 136 may make the direction referred to in sub-section (1). **154. Release on suspension.—Where a sentence is suspended under section 152 the offender shall** forthwith be released from custody. **155. Computation of period of suspension.—Any period during which the sentence is under** suspension shall be reckoned as part of the term of such sentence. **156. Order after suspension.—The authority or officer specified in section 152 may, at any time** while a sentence is suspended, order— (a) that the offender be committed to undergo the unexpired portion of the sentence; or (b) that the sentence be remitted. **157. Reconsideration of case after suspension.—(1) Where a sentence has been suspended, the case** may at any time, and shall at intervals of not more than four months, be reconsidered by the authority or officer specified in section 152 or by any officer not below the rank of a Deputy Inspector-General duly authorised by the authority or officer specified in section 152. (2) Where on such reconsideration by the officer so authorised it appears to him that the conduct of offender since his conviction has been such as to justify a remission of the sentence, he shall refer the matter to the authority or officer specified in section 150. **158. Fresh sentence after suspension.—Where an offender, while a sentence on him is suspended** under this Act, is sentenced for any other offence, then,— (a) if the further sentence is also suspended under this Act, the two sentence shall run concurrently; (b) if the further sentence is for a period of three months or more and is not suspended under this Act, the offender shall be so committed to prison or to Force custody for the unexpired portion of the previous sentence, but both sentences shall run concurrently; and (c) if the further sentence is for a period of less than three months and is not suspended under this Act, the offender shall be so committed on that sentence only, and the previous sentence shall, subject to any order which may be passed under section 156 or section 157, continue to be suspended. **159. Scope of power of suspension.—The powers conferred by sections 152 and 156 shall be in** addition to, and not in derogation of the power of mitigation, remission and commutation. **160. Effect of suspension and remission on dismissal.—(1) Where in addition to any other sentence** the punishment of dismissal or removal has been awarded by an Assam Rifles Court, and such sentence is suspended under section 152, then, such dismissal or removal shall not take effect until so ordered by the authority or officer specified in section 152. (2) If such other sentence is remitted under section 156, the punishment of dismissal or removal shall also be remitted. CHAPTER XII MISCELLANEOUS **161. Disposal of property of the members of the Force.—The Central Government or any other** authority empowered in this behalf by that Government may, by a general or special order, make provisions for the disposal of the private or regimental property of any person subject to this Act or any 37 ----- other dues including provident fund of that person, who dies or deserts, or is ascertained to be of unsound mind or while on active duty is officially reported as missing. **162. Powers and duties conferrable and imposable on members of the Force.—(1) The Central** Government may, by general or special order published in the Official Gazette, direct that, subject to such conditions and limitations, and within the local limits of such area adjoining the border of India, as may be specified in the order, any member of the Force may,— (a) for the purpose of prevention of any offence punishable under the Passport (Entry into India) Act, 1920 (34 of 1920), the Registration of Foreigners Act 1939 (16 of 1939), the Central Excise Act, 1944 (1 of 1944), the Foreigners Act, 1946 (31 of 1946), the Customs Act, 1962 (52 of 1962), the Passports Act, 1967 (15 of 1967) or the Foreign Exchange Management Act, 1999 (42 of 1999) or of any cognizable offence punishable under any other Central Act; or (b) for the purpose of apprehending any person who has committed any offence referred to in clause (a), exercise or discharge such of the powers or duties under that Act or any other Central Act as may be specified in the said order, being the powers and duties which, in the opinion of the Central Government, an officer of the corresponding or lower rank is by that or such other Act empowered to exercise or discharge for the said purposes. (2) The Central Government may, by general or special order published in the Official Gazette, confer or impose, with the concurrence of the State Government concerned, any of the powers or duties which may be exercised or discharged under a State Act by a police officer upon a members of the Force who, in the opinion of the Central Government, holds a corresponding or higher rank. (3) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the order or both Houses agree that the order should not be made, the order shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that order. **163. Protection for acts of members of the Force.—(1) The provision of section 125 of the Indian** Evidence Act, 1872 (1 of 1872) shall apply to such members of the Force who exercise or discharge any power or duty under sub-section (1) of section 162 or on whom any power is conferred or duty is imposed under sub-section (2) of that section in the same manner as it apply to a police officer. (2) In any suit or proceeding against any member of the Force for any act done by him in pursuance of a warrant or order of a competent authority, it shall be lawful for him to plead, that such act was done by him under the authority of such warrant or order. (3) Any such plea may be proved by the production of the warrant or order directing the act, and if it is so proved the members of the Force shall thereupon be discharged from liability in respect of the act so done by him, notwithstanding any defect in jurisdiction of the authority which issued such warrant or order. (4) Notwithstanding anything contained in any other law for the time being in force, any legal proceeding (whether civil or criminal) which may lawfully be brought against any member of the Force for anything done or intended to be done under the powers conferred by, or in pursuance of, any provision of this Act or the rules, shall be commenced within three months after the act complained of was committed and not otherwise, and notice in writing of such proceedings and of the cause thereof shall be given to the defendant or his superior officer at least one month before the commencement of such proceedings. **164. Power of Central Government to remove difficulties.—(1) If any difficulty arises in giving** effect to the provisions of this Act, the Central Government may, by order published in the Official 38 ----- Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty: Provided that no order shall be made under this section after the expiry of two years from the commencement of this Act. (2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament. **165. Power to make rules.—(1) The Central Government may, by notification, make rules for the** purposes of carrying out the provisions of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for— (a) the manner of re-constitution of the Force and the conditions of service of the members of the Force under sub-section (2) of section 4; (b) the mode of enrolment and the procedure for enrolment under sub-section (1) of section 6; (c) the authority whose previous permission in writing is required for resigning from appointment or withdrawing from all or any of the duties under section 8; (d) rank or ranks of an officer or a subordinate officer referred to under sub-section (2) of section 11; (e) the authority who shall give previous sanction in writing under sub-section (1) of section 13; (f) nature of communication or publication under clause (c) of sub-section (1) of section 13; (g) other purposes of meeting or demonstration under sub-section (2) of section 13; (h) form of enrolment under section 31; (i) any other purpose under clause (h) of sub-section (1) of section 57; (j) the officer who may direct that an enrolled person who has been sentenced to dismissal or imprisonment whether combined with dismissal or not may be retained to serve in the ranks under section 60; (k) the manner of proceedings against a person and the extent of awarding punishment under section 62; (l) the manner of proceeding against an officer below the rank of a Deputy Commandant and of the rank of subordinate officer and of the rank of Warrant Officer under sub-section (1) of section 64; (m) the manner of forwarding certified true copies of the proceedings and the superior authority to whom such copies shall be forwarded under sub-section (2) of section 64; (n) the manner of proceeding against an officer below the rank of Commandant and of any rank of subordinate officer and of the rank of Warrant Officer under sub-section (1) of section 65; (o) the manner of proceeding against any subordinate officer or a Warrant Officer under section 66; (p) the officer by whose order any sum is required to be paid, for the maintenance of wife or legitimate or illegitimate child of a person subject to this Act other than an officer, under clause (i) of section 69; (q) the officer who may direct that the whole or any part of the pay and allowances of person subject to this Act shall be withheld under section 71; (r) the manner and the extent of remission of deductions from pay and allowances authorised by this Act and the authority by which such remission shall be made under section 75; 39 ----- (s) the authorities by whom proper provision to be made out of the pay and allowances of all persons subject to this Act, being prisoners of war, for the dependents of such persons under section 76; (t) the authorities who shall make proper provision out of the pay and allowances of any person subject to this Act, who is prisoner of war or is missing under section 77; (u) the manner in which and the period for which any person subject to this Act may be taken into and detained in force custody under sub-section (4) of section 80; (v) the manner of making special report giving reasons for delay under section 81; (w) the authority to appoint, and the manner of appointment of, a court of inquiry; the manner of administering oath or affirmation by such court of inquiry and the manner of making record under sub-section (1) of section 84; (x) the officer who may appoint Force police under sub-section (1) of section 85; (y) the other officer having the discretion to decide before which court the proceeding shall be instituted under section 102; (z) the manner of filling up the vacancy of member by another officer under sub-section (3) of section 106; (za) the manner of administering oath or affirmation to every member of an Assam Rifles Court and to the Law Officer, or, as the case may be, the officer approved under section 105 before the commencement of the trial, under sub-section (1) of section 107; (zb) the form for being duly sworn or affirmed under sub-section (2) of section 107; (zc) the officer by whom the letter, return or other documents purported to be signed shall be the evidence of the facts stated in such letter, return or other document under sub-section (1) of section 118; (zd) the other matters to be further inquired and recoded under sub-section (1) of section 120; (ze) the other matters to be recorded under sub-section (3) of section 120; (zf) the manner of keeping in custody of the accused person under sub-section (4) of section 121; (zg) the officer who may take steps to have certain persons tried under section 122; (zh) the authority for issuing certificate in case of detention in any other place under clause (b) of section 122; (zi) the officer to whom the proceedings of every summary Assam Rifles Courts shall be forwarded under section 137; (zj) the officer superior in command, to the one who confirmed the findings or sentence referred to in sub-section (2) of section 139, to whom petition may be presented under that sub-section; (zk) the officer who may annul the proceeding of any Assam Rifles Court under section 140; (zl) the other officer who shall direct that sentence shall be carried out by the confinement in a civil prison under sub-section (1) of section 143; (zm) the officer who shall forward a warrant and the form of such warrant under sub-section (2) of section 143; (zn) the officer who may from time to time appoint the place of confinement under sub-section (4) of section 143; (zo) the other person by whom the warrant shall be forwarded to the officer in charge of the prison under section 147; (zp) the officer who may pardon or exercise other powers as specified under clauses (a) to (c) of section 150; 40 ----- (zq) any other matter which is to be, may be, prescribed, or in respect of which provision is to be, or may be, made by rules. **166. Power to make regulations.—The Director-General may make regulations for all or any of the** purposes of this Act other than those specified in section 165, subject to approval of the Central Government. **167. Rules and regulations to be laid before Parliament.—Every rule or regulation made under** this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session, or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be, so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. **168. Repeal and savings.—(1) The Assam Rifles Act, 1941 (5 of 1941) is hereby repealed.** (2) Notwithstanding such repeal,— (a) the Assam Rifles in existence at the commencement of this Act and constituted under the Act so repealed shall be deemed to be reconstituted under this Act; (b) members of the Assam Rifles in existence at the commencement of this Act and appointed under the Act so repealed shall be deemed to have been appointed or, as the case may be, enrolled as such under this Act; (c) any appeal, application, trial, inquiry or investigation pending immediately before the commencement of this Act shall be disposed of, continued, held or made, as the case may be, in accordance with the provisions of the Assam Rifles Act, 1941 (5 of 1941), as if this Act had not come into force; (d) any thing done or any action taken before the commencement of this Act, in relation to any person appointed or enrolled, shall be valid and as effective in law as if such thing or action was done or taken under the corresponding provisions of this Act. 41 -----

21-Dec-2006

52

The Uttaranchal (Alteration of Name) Act, 2006

https://www.indiacode.nic.in/bitstream/123456789/2047/1/A2006-52.pdf

central

# THE UTTARANCHAL (ALTERATION OF NAME) ACT, 2006 _________ ARRANGEMENT OF SECTIONS _________ SECTIONS 1. Short title and commencement. 2. Definitions. 3. Alteration of name of the State of Uttaranchal. 4. Amendment of First Schedule to the Constitution. 5. Amendment of Fourth Schedule to the Constitution. 6. Power to adapt laws. 7. Power to construe laws. 8. Legal proceedings. 1 ----- # THE UTTARANCHAL (ALTERATION OF NAME) ACT, 2006 ACT NO. 52 OF 2006 [21st December, 2006.] # An Act to alter the name of the State of Uttaranchal. BE it enacted by Parliament in the Fifty-seventh Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the Uttaranchal (Alteration of** Name) Act, 2006. (2) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “appointed day” means the date appointed under sub-section (2) of section 1 for the coming into force of this Act; (b) “appropriate Government” means, as respects a law relating to a matter enumerated in List I in the Seventh Schedule to the Constitution, the Central Government, and as respects any other law, the State Government; (c) “law” includes any enactment, Ordinance, regulation, order, bye-law, rule, scheme, notification or other instrument having the force of law in the whole or any part of the State of Uttaranchal. **3. Alteration of name of the State of Uttaranchal.—As from the appointed day, the State of** Uttaranchal shall be known as the State of Uttarakhand. **4. Amendment of First Schedule to the Constitution.—In the First Schedule to the Constitution,** under the heading “I. THE STATES”, in entry 27, under the column “Name”, for the word “Uttaranchal”, the word “Uttarakhand” shall be substituted. **5. Amendment of Fourth Schedule to the Constitution.—In the Fourth Schedule to the** Constitution, under the heading “TABLE”, in entry 18, in the second column, for the word “Uttarachal” the word “Uttarakhand” shall be substituted. **6. Power to adapt laws.—(1) For the purpose of giving effect to the alteration of the name of the** State of Uttaranchal by section 3, the appropriate Government may, before the expiration of one year from the appointed day, by order, make such adaptations and modifications of any law made before the appointed day, whether by way of repeal or amendment, as may be necessary or expedient, and thereupon every such law shall have effect subject to the adaptations and modifications so made. (2) Nothing in sub-section (1) shall be deemed to prevent a competent Legislature or other competent authority from repealing or amending any law adapted or modified by the appropriate Government under the said sub-section. **7. Power to construe laws.—Notwithstanding that no provision or insufficient provision has been** made under section 6 for the adaptation of a law made before the appointed day, any court, tribunal or authority, required or empowered to enforce such law, may construe the law in such manner, without affecting the substance, as may be necessary or proper in regard to the matter before the court, tribunal or authority. **8. Legal proceedings.—Where immediately before the appointed day any legal proceedings are** pending to which the State of Uttaranchal is a party, the State of Uttarakhand shall be deemed to be substituted for the State of Uttaranchal in those proceedings. ______________ 1. 1st January, 2007, vide notification No. GSR 779(E), dated 29th December, 2006, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 2 -----

29-Dec-2006

02

The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006

https://www.indiacode.nic.in/bitstream/123456789/2070/1/200702.pdf

central

# THE SCHEDULED TRIBES AND OTHER TRADITIONAL FOREST DWELLERS (RECOGNITION OF FOREST RIGHTS) ACT, 2006 __________ ARRANGEMENT OF SECTIONS ________ CHAPTER 1 PRELIMINARY SECTIONS # 1. Short title, extent and commencement. 2. Definitions. CHAPTER II FOREST RIGHTS # 3. Forest rights of Forest dwelling Scheduled Tribes and other tradional forest dwellers. CHAPTER III RECOGNITION, RESTORATION AND VESTING OF FOREST RIGHTS AND RELATED MATTERS # 4. Recognition of, and vesting of, forest rights in forest dwelling Scheduled Tribes and other traditional forest dwellers. # 5. Duties of holders of forest rights. CHAPTER IV AUTHORITIES AND PROCEDURE FOR VESTING OF FOREST RIGHTS # 6. Authorities to vest forest rights in forest dwelling Scheduled Tribes and other traditional forest dwellers and procedure thereof. CHAPTER V OFFENCES AND PENALTIES # 7. Offences by members or officers of authorities and Committees under this Act. 8. Cognizance of offences. CHAPTER VI MISCELLANEOUS # 9. Members of authorities, etc., to be public servants. 10. Protection of action taken in good faith. 11. Nodal agency. 12. Power of Central Government to issue directions. 13. Act not in derogation of any other law. 14. Power to make rules. ----- # THE SCHEDULED TRIBES AND OTHER TRADITIONAL FOREST DWELLERS (RECOGNITION OF FOREST RIGHTS) ACT, 2006 ACT NO. 2 OF 2007 [29th December, 2006.] # An Act to recognise and vest the forest rights and occupation in forest land in forest dwelling Scheduled Tribes and other traditional forest dwellers who have been residing in such forests for generations but whose rights could not be recorded; to provide for a framework for recording the forest rights so vested and the nature of evidence required for such recognition and vesting in respect of forest land. WHEREAS the recognised rights of the forest dwelling Scheduled Tribes and other traditional forest dwellers include the responsibilities and authority for sustainable use, conservation of biodiversity and maintenance of ecological balance and thereby strengthening the conservation regime of the forests while ensuring livelihood and food security of the forest dwelling Scheduled Tribes and other traditional forest dwellers; AND WHEREAS the forest rights on ancestral lands and their habitat were not adequately recognised in the consolidation of State forests during the colonial period as well as in independent India resulting in historical injustice to the forest dwelling Scheduled Tribes and other traditional forest dwellers who are integral to the very survival and sustainability of the forest ecosystem; AND WHEREAS it has become necessary to address the long standing insecurity of tenurial and access rights of forest dwelling Scheduled Tribes and other traditional forest dwellers including those who were forced to relocate their dwelling due to State development interventions. BE it enacted by Parliament in the Fifty-seventh Year of the Republic of India as follows:– CHAPTER 1 PRELIMINARY **1. Short title, extent and commencement.–(1) This Act may be called the Scheduled Tribes and** Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006. (2) It extends to the whole of India [1]***. (3) It shall come into force on such date[2] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.–In this Act, unless the context otherwise requires,–** (a) “community forest resource” means customary common forest land within the traditional or customary boundaries of the village or seasonal use of landscape in the case of pastoral communities, including reserved forests, protected forests and protected areas such as Sanctuaries and National Parks to which the community had traditional access; (b) “critical wildlife habitat” means such areas of National Parks and Sanctuaries where it has been specifically and clearly established, case by case, on the basis of scientific and objective criteria, that such areas are required to be kept as inviolate for the purposes of wildlife conservation as may be determined and notified by the Central Government in the Ministry of Environment and Forests after open process of consultation by an Expert Committee, which includes experts from the locality appointed by that Government wherein a representative of the Ministry of Tribal Affairs shall also be included, in determining such areas according to the procedural requirements arising from subsections (1) and (2) of section 4; (c) “forest dwelling Scheduled Tribes” means the members or community of the Scheduled Tribes who primarily reside in and who depend on the forests or forest lands for bona fide livelihood needs and includes the Scheduled Tribe pastoralist communities; 1. The words “except the State of Jammu and Kashmir” omitted by Act 34 of 2019, s. 95 and the Fifth Schedule (w.e.f. 31-10-2019). 2. 31st December, 2007, _vide notification No. S. O. 2224(E), dated 31st December, 2007,_ _see Gazette of India Extraordinary,_ Part II, sec 3(ii). ----- (d) “forest land” means land of any description falling within any forest area and includes unclassified forests, undemarcated forests, existing or deemed forests, protected forests, reserved forests, Sanctuaries and National Parks; (e) “forest rights” means the forest rights referred to in section 3; (f) “forest villages” means the settlements which have been established inside the forests by the forest department of any State Government for forestry operations or which were converted into forest villages through the forest reservation process and includes forest settlement villages, fixed demand holdings, all types of _taungya settlements, by whatever name called, for such villages and_ includes lands for cultivation and other uses permitted by the Government; (g) “Gram Sabha” means a village assembly which shall consist of all adult members of a village and in case of States having no Panchayats, Padas, Tolas and other traditional village institutions and elected village committees, with full and unrestricted participation of women; (h) “habitat” includes the area comprising the customary habitat and such other habitats in reserved forests and protected forests of primitive tribal groups and pre-agricultural communities and other forest dwelling Scheduled Tribes; (i) “minor forest produce” includes all non-timber forest produce of plant origin including bamboo, brush wood, stumps, cane, tussar, cocoons, honey, wax, lac, tendu or kendu leaves, medicinal plants and herbs, roots, tubers and the like; (j) “nodal agency” means the nodal agency specified in section 11; (k) “notification” means a notification published in the Official Gazette; (l) “prescribed” means prescribed by rules made under this Act; (m) “Scheduled Areas” means the Scheduled Areas referred to in clause (1) of article 244 of the Constitution; (n) “sustainable use” shall have the same meaning as assigned to it in clause (o) of section 2 of the Biological Diversity Act, 2002 (18 of 2003); (o) “other traditional forest dweller” means any member or community who has for at least three generations prior to the 13th day of December, 2005 primarily resided in and who depend on the forest or forests land for bona fide livelihood needs. _Explanation.–For the purpose of this clause, ““generation”“ means a period comprising of_ twenty-five years; (p) “village” means– (i) a village referred to in clause (b) of section 4 of the Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996 (40 of 1996); or (ii) any area referred to as a village in any State law relating to Panchayats other than the Scheduled Areas; or (iii) forest villages, old habitation or settlements and unsurveyed villages, whether notified as village or not; or (iv) in the case of States where there are no Panchayats, the traditional village, by whatever name called; (q) “wild animal” means any species of animal specified in Schedules I to IV of the Wild Life (Protection) Act, 1972 (53 of 1972) and found wild in nature. ----- CHAPTER II FOREST RIGHTS **3. Forest rights of Forest dwelling Scheduled Tribes and other tradional forest dwellers.–(1) For** the purposes of this Act, the following rights, which secure individual or community tenure or both, shall be the forest rights of forest dwelling Scheduled Tribes and other traditional forest dwellers on all forest lands, namely:– (a) right to hold and live in the forest land under the individual or common occupation for habitation or for self-cultivation for livelihood by a member or members of a forest dwelling Scheduled Tribe or other traditional forest dwellers; (b) community rights such as nistar, by whatever name called, including those used in erstwhile Princely States, Zamindari or such intermediary regimes; (c) right of ownership, access to collect, use, and dispose of minor forest produce which has been traditionally collected within or outside village boundaries; (d) other community rights of uses or entitlements such as fish and other products of water bodies, grazing (both settled or transhumant) and traditional seasonal resource access of nomadic or pastoralist communities; (e) rights including community tenures of habitat and habitation for primitive tribal groups and pre-agricultural communities; (f) rights in or over disputed lands under any nomenclature in any State where claims are disputed; (g) rights for conversion of Pattas or leases or grants issued by any local authority or any State Government on forest lands to titles; (h) rights of settlement and conversion of all forest villages, old habitation, unsurveyed villages and other villages in forests, whether recorded, notified or not into revenue villages; (i) right to protect, regenerate or conserve or manage any community forest resource which they have been traditionally protecting and conserving for sustainable use; (j) rights which are recognised under any State law or laws of any Autonomous District Council or Autonomous Regional Council or which are accepted as rights of tribals under any traditional or customary law of the concerned tribes of any State; (k) right of access to biodiversity and community right to intellectual property and traditional knowledge related to biodiversity and cultural diversity; (l) any other traditional right customarily enjoyed by the forest dwelling Scheduled Tribes or other traditional forest dwellers, as the case may be, which are not mentioned in clauses (a) to (k) but excluding the traditional right of hunting or trapping or extracting a part of the body of any species of wild animal; (m) right to in situ rehabilitation including alternative land in cases where the Scheduled Tribes and other traditional forest dwellers have been illegally evicted or displaced from forest land of any description without receiving their legal entitlement to rehabilitation prior to the 13th day of December, 2005. (2) Notwithstanding anything contained in the Forest (Conservation) Act, 1980 (69 of 1980), the Central Government shall provide for diversion of forest land for the following facilities managed by the Government which involve felling of trees not exceeding seventy-five trees per hectare, nemely:– (a) schools; (b) dispensary or hospital; (c) anganwadis; ----- (d) fair price shops; (e) electric and telecommunication lines; (f) tanks and other minor water bodies; (g) drinking water supply and water pipelines; (h) water or rain water harvesting structures; (i) minor irrigation canals; (j) non-conventional source of energy; (k) skill upgradation or vocational training centres; (l) roads; and (m) community centres: Provided that such diversion of forest land shall be allowed only if,– (i) the forest land to be diverted for the purposes mentioned in this sub-section is less than one hectare in each case; and (ii) the clearance of such developmental projects shall be subject to the condition that the same is recommended by the Gram Sabha. CHAPTER III RECOGNITION, RESTORATION AND VESTING OF FOREST RIGHTS AND RELATED MATTERS **4. Recognition of, and vesting of, forest rights in forest dwelling Scheduled Tribes and other** **traditional forest dwellers.–(1) Notwithstanding anything contained in any other law for the time being** in force, and subject to the provisions of this Act, the Central Government hereby recognises and vests forest rights in– (a) the forest dwelling Scheduled Tribes in States or areas in States where they are declared as Scheduled Tribes in respect of all forest rights mentioned in section 3; (b) the other traditional forest dwellers in respect of all forest rights mentioned in section 3. (2) The forest rights recognised under this Act in critical wildlife habitats of National Parks and Sanctuaries may subsequently be modified or resettled, provided that no forest rights holders shall be resettled or have their rights in any manner affected for the purposes of creating inviolate areas for wildlife conservation except in case all the following conditions are satisfied, namely:– (a) the process of recognition and vesting of rights as specified in section 6 is complete in all the areas under consideration; (b) it has been established by the concerned agencies of the State Government, in exercise of their powers under the Wild Life (Protection) Act, 1972 (53 of 1972) that the activities or impact of the presence of holders of rights upon wild animals is sufficient to cause irreversible damage and threaten the existence of said species and their habitat; (c) the State Government has concluded that other reasonable options, such as, co-existence are not available; (d) a resettlement or alternatives package has been prepared and communicated that provides a secure livelihood for the affected individuals and communities and fulfils the requirements of such affected individuals and communities given in the relevant laws and the policy of the Central Government; (e) the free informed consent of the Gram Sabhas in the areas concerned to the proposed resettlement and to the package has been obtained in writing; ----- (f) no resettlement shall take place until facilities and land allocation at the resettlement location are complete as per the promised package: Provided that the critical wildlife habitats from which rights holders are thus relocated for purposes of wildlife conservation shall not be subsequently diverted by the State Government or the Central Government or any other entity for other uses. (3) The recognition and vesting of forest rights under this Act to the forest dwelling Scheduled Tribes and to other traditional forest dwellers in relation to any State or Union territory in respect of forest land and their habitat shall be subject to the condition that such Scheduled Tribes or tribal communities or other traditional forest dwellers had occupied forest land before the 13th day of December, 2005. (4) A right conferred by sub-section (1) shall be heritable but not alienable or transferable and shall be registered jointly in the name of both the spouses in case of married persons and in the name of the single head in the case of a household headed by a single person and in the absence of a direct heir, the heritable right shall pass on to the next-of-kin. (5) Save as otherwise provided, no member of a forest dwelling Scheduled Tribe or other traditional forest dweller shall be evicted or removed from forest land under his occupation till the recognition and verification procedure is complete. (6) Where the forest rights recognised and vested by sub-section (1) are in respect of land mentioned in clause (a) of sub-section (1) of section 3 such land shall be under the occupation of an individual or family or community on the date of commencement of this Act and shall be restricted to the area under actual occupation and shall in no case exceed an area of four hectares. (7) The forest rights shall be conferred free of all encumbrances and procedural requirements, including clearance under the Forest (Conservation) Act, 1980 (69 of 1980), requirement of paying the 'net present value' and 'compensatory afforestation' for diversion of forest land, except those specified in this Act. (8) The forest rights recognised and vested under this Act shall include the right of land to forest dwelling Scheduled Tribes and other traditional forest dwellers who can establish that they were displaced from their dwelling and cultivation without land compensation due to State development interventions, and where the land has not been used for the purpose for which it was acquired within five years of the said acquisition. **5. Duties of holders of forest rights.–The holders of any forest right, Gram Sabha and village level** institutions in areas where there are holders of any forest right under this Act are empowered to– (a) protect the wild life, forest and biodiversity; (b) ensure that adjoining catchments area, water sources and other ecological sensitive areas are adequately protected; (c) ensure that the habitat of forest dwelling Scheduled Tribes and other traditional forest dwellers is preserved from any form of destructive practices affecting their cultural and natural heritage; (d) ensure that the decisions taken in the Gram Sabha to regulate access to community forest resources and stop any activity which adversely affects the wild animals, forest and the biodiversity are complied with. CHAPTER IV AUTHORITIES AND PROCEDURE FOR VESTING OF FOREST RIGHTS **6. Authorities to vest forest rights in forest dwelling Scheduled Tribes and other traditional** **forest dwellers and procedure thereof.–(1) The Gram Sabha shall be the authority to initiate the process** for determining the nature and extent of individual or community forest rights or both that may be given to the forest dwelling Scheduled Tribes and other traditional forest dwellers within the local limits of its jurisdiction under this Act by receiving claims, consolidating and verifying them and preparing a map delineating the area of each recommended claim in such manner as may be prescribed for exercise of such ----- rights and the Gram Sabha shall, then, pass a resolution to that effect and thereafter forward a copy of the same to the Sub-Divisional Level Committee. (2) Any person aggrieved by the resolution of the Gram Sabha may prefer a petition to the Sub-Divisional Level Committee constituted under sub-section (3) and the Sub-Divisional Level Committee shall consider and dispose of such petition: Provided that every such petition shall be preferred within sixty days from the date of passing of the resolution by the Gram Sabha: Provided further that no such petition shall be disposed of against the aggrieved person, unless he has been given a reasonable opportunity to present his case. (3) The State Government shall constitute a Sub-Divisional Level Committee to examine the resolution passed by the Gram Sabha and prepare the record of forest rights and forward it through the Sub-Divisional Officer to the District Level Committee for a final decision. (4) Any person aggrieved by the decision of the Sub-Divisional Level Committee may prefer a petition to the District Level Committee within sixty days from the date of decision of the Sub-Divisional Level Committee and the District Level Committee shall consider and dispose of such petition: Provided that no petition shall be preferred directly before the District Level Committee against the resolution of the Gram Sabha unless the same has been preferred before and considered by the SubDivisional Level Committee: Provided further that no such petition shall be disposed of against the aggrieved person, unless he has been given a reasonable opportunity to present his case. (5) The State Government shall constitute a District Level Committee to consider and finally approve the record of forest rights prepared by the Sub-Divisional Level Committee. (6) The decision of the District Level Committee on the record of forest rights shall be final and binding. (7) The State Government shall constitute a State Level Monitoring Committee to monitor the process of recognition and vesting of forest rights and to submit to the nodal agency such returns and reports as may be called for by that agency. (8) The Sub-Divisional Level Committee, the District Level Committee and the State Level Monitoring Committee shall consist of officers of the departments of Revenue, Forest and Tribal Affairs of the State Government and three members of the Panchayati Raj Institutions at the appropriate level, appointed by the respective Panchayati Raj Institutions, of whom two shall be the Scheduled Tribe members and at least one shall be a woman, as may be prescribed. (9) The composition and functions of the Sub-Divisional Level Committee, the District Level Committee and the State Level Monitoring Committee and the procedure to be followed by them in the discharge of their functions shall be such as may be prescribed. CHAPTER V OFFENCES AND PENALTIES **7. Offences by members or officers of authorities and Committees under this Act.–Where any** authority or Committee or officer or member of such authority or Committee contravenes any provision of this Act or any rule made thereunder concerning recognition of forest rights, it, or they, shall be deemed to be guilty of an offence under this Act and shall be liable to be proceeded against and punished with fine which may extend to one thousand rupees: Provided that nothing contained in this sub-section shall render any member of the authority or Committee or head of the department or any person referred to in this section liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. ----- **8. Cognizance of offences.–No court shall take cognizance of any offence under section 7 unless any** forest dwelling Scheduled Tribe in case of a dispute relating to a resolution of a Gram Sabha or the Gram Sabha through a resolution against any higher authority gives a notice of not less than sixty days to the State Level Monitoring Committee and the State Level Monitoring Committee has not proceeded against such authority. CHAPTER VI MISCELLANEOUS **9. Members of authorities, etc., to be public servants.–Every member of the authorities referred to** in Chapter IV and every other officer exercising any of the powers conferred by or under this Act shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860). **10. Protection of action taken in good faith.–(1) No suit, prosecution or other legal proceeding shall** lie against any officer or other employee of the Central Government or the State Government for anything which is in good faith done or intended to be done by or under this Act. (2) No suit or other legal proceeding shall lie against the Central Government or the State Government or any of its officers or other employees for any damage caused or likely to be caused by anything which is in good faith done or intended to be done under this Act. (3) No suit or other legal proceeding shall lie against any authority as referred to in Chapter IV including its Chairperson, members, member-secretary, officers and other employees for anything which is in good faith done or intended to be done under this Act. **11. Nodal agency.–The Ministry of the Central Government dealing with Tribal Affairs or any** officer or authority authorised by the Central Government in this behalf shall be the nodal agency for the implementation of the provisions of this Act. **12. Power of Central Government to issue directions.–In the performance of its duties and exercise** of its powers by or under this Act, every authority referred to in Chapter IV shall be subject to such general or special directions, as the Central Government may, from time to time, give in writing. **13. Act not in derogation of any other law.–Save as otherwise provided in this Act and the** Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996 (40 of 1996), the provisions of this Act shall be in addition to and not in derogation of the provisions of any other law for the time being in force. **14. Power to make rules.–(1) The Central Government may, by notification, and subject to the** condition of previous publication, make rules for carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing powers, such rules may provide for all or any of the following matters, namely:– (a) procedural details for implementation of the procedure specified in section 6; (b) the procedure for receiving claims, consolidating and verifying them and preparing a map delineating the area of each recommended claim for exercise of forest rights under sub-section (1) of section 6 and the manner of preferring a petition to the Sub-Divisional Committee under sub-section (2) of that section; (c) the level of officers of the departments of Revenue, Forest and Tribal Affairs of the State Government to be appointed as members of the Sub-Divisional Level Committee, the District Level Committee and the State Level Monitoring Committee under sub-section (8) of section 6; (d) the composition and functions of the Sub-Divisional Level Committee, the District Level Committee and the State Level Monitoring Committee and the procedure to be followed by them in the discharge of their functions under sub-section (9) of section 6; (e) any other matter which is required to be, or may be, prescribed. ----- (3) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. _____ -----

3-Jan-2007

05

The Central Educational Institutions (Reservation in Admission) Act, 2006

https://www.indiacode.nic.in/bitstream/123456789/2091/1/A2007-05.pdf

central

# THE CENTRAL EDUCATIONAL INSTITUTIONS (RESERVATION IN ADMISSION) ACT, 2006 ________ ARRANGEMENT OF SECTIONS ______ SECTIONS 1. Short title. 2. Definitions. 3. Reservation of seats in Central Educational Institutions. 4. Act not to apply in certain cases. 5. Mandatory increase of seats. 6. Reservation of seats in admissions to begin in calendar year, 2008. 7. Laying of notifications before Parliament. THE SCHEDULE. 1 ----- # THE CENTRAL EDUCATIONAL INSTITUTIONS (RESERVATION IN ADMISSION) ACT, 2006 ACT NO. 5 OF 2007 [3rd January, 2007.] # An Act to provide for the reservation in admission of the students belonging to the Scheduled Castes, the Scheduled Tribes and the Other Backward Classes of citizens, to certain Central Educational Institutions established, maintained or aided by the Central Government, and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-seventh Year of the Republic of India as follows:— **1. Short title.—This Act may be called the Central Educational Institutions (Reservation in** Admission) Act, 2006. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “academic session” means the period in a calendar year, or a part thereof, during which a Central Educational Institution is open for teaching or instruction in any branch of study or faculty; (b) “annual permitted strength” means the number of seats, in a course or programme for teaching or instruction in each branch of study or faculty authorised by an appropriate authority for admission of students to a Central Educational Institution; (c) “appropriate authority” means the University Grants Commission, the Bar Council of India, the Medical Council of India, the All India Council for Technical Education or any other authority or body established by or under a Central Act for the determination, coordination or maintenance of the standards of higher education in any Central Educational Institution; (d) “Central Educational Institution” means— (i) a university established or incorporated by or under a Central Act; (ii) an institution of national importance set up by an Act of Parliament; (iii) an institution, declared as a deemed University under section 3 of the University Grants Commission Act, 1956 (3 of 1956), and maintained by or receiving aid from the Central Government; (iv) an institution maintained by or receiving aid from the Central Government, whether directly or indirectly, and affiliated to an institution referred to in clause (i) or clause (ii), or a constituent unit of an institution referred to in clause (iii); (v) an educational institution set up by the Central Government under the Societies Registration Act, 1860(21 of 1860); (e) “faculty” means the faculty of a Central Educational Institution; (f) “Minority Educational Institution” means an institution established and administered by the minorities under clause (1) of article 30 of the Constitution and so declared by an Act of Parliament or by the Central Government or declared as a Minority Educational Institution under the National Commission for Minority Educational Institutions Act, 2004 (2 of 2005); (g)“Other Backward Classes” means the class or classes of citizens who are socially and educationally backward, and are so determined by the Central Government; (h) “Scheduled Castes” means the Scheduled Castes notified under article 341 of the Constitution; (i) “Scheduled Tribes” means the Scheduled Tribes notified under article 342 of the Constitution; 2 ----- 1[(ia) “specified north-eastern region” means the area comprising of the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and the tribal areas of Assam referred to in the Sixth Schedule to the Constitution; (ib) “State seats”, in relation to a Central Educational Institution, means such seats, if any, out of the annual permitted strength in each branch of study or faculty as are earmarked to be filled from amongst the eligible students of the State in which such institution is situated;] (j) “teaching or instruction in any branch of study” means teaching or instruction in a branch of study leading to three principal levels of qualifications at bachelor (undergraduate) masters (postgraduate) and doctoral levels . **3. Reservation of seats in Central Educational Institutions.—The reservation of seats in admission** and its extent in a Central Educational Institution shall be provided in the following manner, namely:— (i) out of the annual permitted strength in each branch of study or faculty, fifteen per cent. seats shall be reserved for the Scheduled Castes; (ii) out of the annual permitted strength in each branch of study or faculty, seven and one-half per cent. seats shall be reserved for the Scheduled Tribes; (iii) out of the annual permitted strength in each branch of study or faculty, twenty-seven per cent. seats shall be reserved for the Other Backward Classes: 2[Provided that the State seats, if any, in a Central Educational Institution situated in the tribal areas referred to in the Sixth Schedule to the Constitution shall be governed by such reservation policy for the Scheduled Castes, the Scheduled Tribes and the Other Backward Classes, as may be specified, by notification in the Official Gazette, by the Government of the State where such institution is situated: Provided further that if there are no State seats in a Central Educational Institution and the seats reserved for the Scheduled Castes exceed the percentage specified under clause (i) or the seats reserved for the Scheduled Tribes exceed the percentage specified under clause (ii) or the seats reserved for the Scheduled Castes and the Scheduled Tribes taken together exceed the sum of percentages specified under clauses (i) and (ii), but such seats are— (a)less than fifty per cent. of the annual permitted strength on the date immediately preceding the date of commencement of this Act, the total percentage of the seats required to be reserved for the Other Backward Classes under clause (iii) shall be restricted to the extent such sum of percentages specified under clauses (i) and (ii) falls short of fifty percent.of the annual permitted strength; (b) more than fifty per cent. of the annual permitted strength on the date of immediately preceding the date of commencement of this Act, in that case no seats shall be reserved for the Other Backward Classes under clause (iii) but the extent of the reservation of seats for the Scheduled Castes and the Scheduled Tribes shall not be reduced in respect of Central Educational Institutions in the specified north-eastern region.]. **4. Act not to apply in certain cases.—The provisions of section 3 of this Act shall not apply to—** 3* - - - (b) the institutions of excellence, research institutions, institutions of national and strategic importance specified in the Schedule to this Act: Provided that the Central Government may, as and when considered necessary, by notification in the Official Gazette, amend the Schedule; (c) a Minority Educational Institution as defined in this Act; 1. Ins. by Act 31 of 2012, s.2 (w.e.f. 19-6-2012). 2. Ins. by s.3, ibid. (w.e.f. 19-6-2012). 3. Cl. (a) omitted by s. 4, ibid. (w.e.f. 19-6-2012). 3 ----- (d) a course or programme at high levels of specialisation, including at the post-doctoral level, within any branch of study or faculty, which the Central Government may, in consultation with the appropriate authority, specify. **5. Mandatory increase of seats.—(1) Notwithstanding anything contained in clause (iii) of section 3** and in any other law for the time being in force, every Central Educational Institution shall, with the prior approval of the appropriate authority, increase the number of seats in a branch of study or faculty over and above its annual permitted strength so that the number of seats, excluding those reserved for the persons belonging to the Scheduled Castes, the Scheduled Tribes and the Other Backward Classes, is not less than the [1][number of such seats available or actually filled, whichever be less,] for the academic session immediately preceding the date of the coming into force of this Act. (2) Where, on a representation by any Central Educational Institution, the Central Government, in consultation with the appropriate authority, is satisfied that for reasons of financial, physical or academic limitations or in order to maintain the standards of education, the annual permitted strength in any branch of study or faculty of such institution cannot be increased for the academic session following the commencement of this Act, it may permit by notification in the Official Gazette, such institution to increase the annual permitted strength over a maximum period of [2][six years] beginning with the academic session following the commencement of this Act; and then, the extent of reservation for the Other Backward Classes as provided in clause (iii) of section 3 shall be limited for that academic session in such manner that the number of seats available to the Other Backward Classes for each academic session are commensurate with the increase in the permitted strength for each year. **6. Reservation of seats in admissions to begin in calendar year, [3][2008].—The Central Educational** Institutions shall take all necessary steps, which are required in giving effect to the provisions of sections 3, 4 and 5 of this Act, for the purposes of reservation of seats in admissions to its academic sessions commencing on and from the calendar year, [3][2008]. **7. Laying of notifications before Parliament.—Every notification made under this Act shall be laid,** as soon as may be after it is made, before each House of Parliament while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the notification or both Houses agree that the notification should not be made, the notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that notification. 1. Subs. by Act 31 of 2012, s. 5, for “number of such seats available” (w.e.f. 19-6-2012). 2. Subs. by s. 5, ibid., for “three years” (w.e.f. 19-6-2012). 3. Subs. by s. 6, ibid., for “2007” (w.e.f. 19-6-2012). 4 ----- THE SCHEDULE [See section 4(b)] S. No. Names of the Institutions of Excellence, etc. 1. Homi Bhabha National Institute, Mumbai and its constituent units, namely:— (i) Bhabha Atomic Research Centre, Trombay; (ii) Indira Gandhi Centre for Atomic Research, Kalpakkam; (iii) Raja Ramanna Centre for Advanced Technology, Indore; (iv) Institute for Plasma Research, Gandhinagar; (v) Variable Energy Cyclotron Centre, Kolkata; (vi) Saha Institute of Nuclear Physics, Kolkata; (vii) Institute of Physics, Bhubaneshwar; (viii) Institute of Mathematical Sciences, Chennai; (ix) Harish-Chandra Research Institute, Allahabad; (x) Tata Memorial Centre, Mumbai. 2. Tata Institute of Fundamental Research, Mumbai. 3. North-Eastern Indira Gandhi Regional Institute of Health and Medical Science, Shillong. 4. National Brain Research Centre, Manesar, Gurgaon. 5. Jawaharlal Nehru Centre for Advanced Scientific Research, Bangalore. 6. Physical Research Laboratory, Ahmedabad. 7. Space Physics Laboratory, Thiruvananthapuram. 8. Indian Institute of Remote Sensing, Dehradun. _______ 5 -----

10-Jan-2007

07

The English and Foreign Languages University Act, 2006

https://www.indiacode.nic.in/bitstream/123456789/2078/3/A2007-07.pdf

central

# THE ENGLISH AND FOREIGN LANGUAGES UNIVERSITY ACT, 2006 __________________ # ARRANGEMENT OF SECTIONS __________________ SECTIONS 1. Short title and commencement. 2. Definitions. 3. Establishment of the University. 4. Dissolution of the Central Institute of English and Foreign Languages, Hyderabad Society and transfer of all the properties and effect of establishment of the University. 5. Objects of the University. 6. Powers of the University. 7. Jurisdiction. 8. University open to all classes, castes and creeds. 9. Visitor. 10. The Chief Rector. 11. Officers of the University. 12. The Chancellor. 13. The Vice-Chancellor. 14. The Pro-Vice-Chancellor. 15. The Deans of Schools. 16. The Registrar. 17. The Finance Officer. 18. The Controller of Examinations. 19. The Librarian. 20. Other officers. 21. Authorities of the University. 22. The Court. 23. The Executive Council. 24. The Academic Council. 25. The Schools of Studies. 26. The Finance Committee. 27. Other authorities. 28. Powers to make Statutes. 29. Statutes how to be made. 30. Power to make Ordinances. 31. Regulations. 32. Annual report. 33. Annual accounts. 34. Returns and information. 35. Conditions of service of employees. 36. Procedure of appeal and arbitration in disciplinary cases against students. 37. Right to appeal. 38. Provident and pension funds. 39. Disputes as to constitution of University authorities and bodies. 40. Filling of casual vacancies. 1 ----- SECTIONS 41. Proceedings of University authorities or bodies not invalidated by vacancies. 42. Protection of action taken in good faith. 43. Mode of proof of University record. 44. Power to remove difficulties. 45. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid before Parliament. 46. Transitional provisions. THE SCHEDULE. 2 ----- # THE ENGLISH AND FOREIGN LANGUAGES UNIVERSITY ACT, 2006 ACT NO. 7 OF 2007 [10th January, 2007.] # An Act to establish and incorporate a teaching University for promotion and development of English and other Foreign Languages and their Literature, and to provide for matters connected therewith or incidental thereto. WHEREAS it is expedient to establish and incorporate a teaching University at Hyderabad, to dissolve the "Central Institute of English and Foreign Languages, Hyderabad", a Society registered under the Hyderabad Societies Registration Act, 1350(Act 1 of 1350 Fasli) and to transfer to and vest in the said University all properties and rights of the said Society; BE it enacted by Parliament in the Fifty-seventh Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the English and Foreign Languages** UniversityAct, 2006. (2) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.—In this Act, and in all Statutes made hereunder, unless the context otherwise** requires,— (a) "Academic Council" means the Academic Council of the University; (b) "academic staff" means such categories of staff as are designated as academic staff by the Ordinances; (c) "Board of Studies" means the Board of Studies of the University; (d) "Chancellor", "Vice-Chancellor" and "Pro-Vice-Chancellor" mean, respectively, the Chancellor, Vice-Chancellor and Pro-Vice-Chancellor of the University; (e) "College" means a College maintained by the University; (f) "Court" means the Court of the University; (g) "Department" means a Department of Studies and includes a Centre of Studies; (h) "distance education system" means the system of imparting education through any means of communication, such as broadcasting, telecasting, correspondence courses, seminars, contact programmes or the combination of any two or more such means; (i) "employee" means any person appointed by the University and includes teachers and other staff of the University; (j) "Executive Council" means the Executive Council of the University; (k) "Hall" means a unit of residence or of corporate life for the students of the University, or of a College or an Institution, maintained by the University; (l) "Institution" means an academic institution, not being a College, maintained by the University; (m) "Principal" means the head of a College or an Institution and includes where there is no Principal, the person for the time being duly appointed to act as Principal, and, in the absence of the Principal or the acting Principal, a Vice-Principal duly appointed as such; (n) "recognised institution" means an institution of higher learning recognised by the University; 1. 3rd August 2007, vide notification No. S.O. 1350(E), dated 1st August, 2007, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 3 ----- (o) "recognised teachers" means persons working in any recognised institution and recognised by the University for the purpose of imparting instruction or conducting research or both; (p) "School" means a School of Studies of the University; (q) "Statutes", "Ordinances" and "Regulations" mean, respectively, the Statutes, Ordinances and Regulations of the University for the time being in force; (r) "teachers of the University" means Professors, Readers, Lecturers and such other persons as may be appointed for imparting instruction or conducting research in the University or in any College or Institution maintained by the University and are designated as teachers by the Ordinances; (s) "University" means the Central Institute of English, Hyderabad Society founded by the Central Government at Hyderabad in 1958 as a Society registered under the Hyderabad Society Registration Act, 1350 (Act 1 of 1350 Fasli) which was renamed as Central Institute of English and Foreign Languages, Hyderabad Society in 1972 and declared in 1973 as an Institution deemed to be a University under section 3 of the University Grants Commission Act, 1956 (3 of 1956);and which is incorporated as a university under this Act. **3. Establishment of the University.—(1) There shall be established, in the State of Andhra Pradesh,** a University by the name of "The English and Foreign Languages University". (2) The headquarters of the University shall be at Hyderabad, campuses at Lucknow and Shillong; and it may establish campuses at such other places as it may deem fit. (3) The first Chancellor, the first Vice-Chancellor and the first members of the Court, the Executive Council and the Academic Council, and all persons who may hereafter become such officers or members, so long as they continue to hold such office or membership, shall constitute the University. (4) The University shall have perpetual succession and a common seal and shall sue and be sued by the said name. **4. Dissolution of the Central Institute of English and Foreign Languages, Hyderabad Society** **and transfer of all the properties and effect of establishment of the University.—On and from the** commencement of this Act,— (i) the Society known as the Central Institute of English and Foreign Languages, Hyderabad Society, shall be dissolved, and all properties, movable or immovable, and all rights, powers and privileges of the said Society shall be transferred to and vest in the University and shall be applied to the objects and purposes for which the University is established; (ii) all debts, liabilities and obligations of the said Society shall be transferred to the University and shall thereafter be discharged and satisfied by it; (iii) all references in any enactment to the said Society shall be construed as references to the University; (iv) any will, deed or other document, whether made or executed before or after the commencement of this Act, which contains any bequest, gift or trust in favour of the said Society shall be construed as if the University was therein named instead of the Society; (v) subject to the provisions of this Act, every person employed immediately before the commencement of this Act in the Central Institute of English and Foreign Languages, Hyderabad, shall hold such employment in the University by the same tenure and on the same terms and conditions and with the same rights and privileges as to pension and gratuity as he would have held under the Central Institute of English and Foreign Languages, Hyderabad, if this Act had not been passed. **5. Objects of the University.—The objects of the University shall be to disseminate and advance** knowledge by providing instructional, research and extension facilities in the teaching of English and Foreign Languages and Literature in India; to train language teachers in methods and approaches appropriate to the Indian context; to provide expertise in language and teacher education to foreign professionals; to evolve indigenous ways of testing of languages proficiency; to make provisions for 4 ----- innovative teaching-learning materials in both print and electronic media; to take appropriate measures for inter-disciplinary studies and research in Literary and Cultural Studies; and to develop critical intercultural understanding of the civilizations. **6. Powers of the University.—The University shall have the following powers, namely:—** (i) to provide for instructions in the relevant branches of learning and to make provision for the advancement and dissemination of knowledge for furtherance of its objects; (ii) to grant, subject to such conditions as the University may determine, diplomas or certificates to, and confer degrees or other academic distinctions on the basis of examinations, evaluation or any other method of testing, on persons, and to withdraw any such diplomas, certificates, degrees or other academic distinctions for good and sufficient cause; (iii) to organise and to undertake extramural studies, training and extension services; (iv) to confer honorary degrees or other distinctions in the manner prescribed by the Statutes; (v) to provide facilities through the distance education system to such persons as it may determine; (vi) to institute Principalships, Professorships, Readerships, Lecturerships and other teaching or academic positions, required by the University and to appoint persons to such Principalships, Professorships, Readerships, Lecturerships or other teaching or academic positions; (vii) to recognise an institution of higher learning for such purposes as the University may determine and to withdraw such recognition; (viii) to appoint persons working in any other University or educational institution as teachers of the University for a specified period; (ix) to create administrative, ministerial and other posts and to make appointments thereto; (x) to co-operate or collaborate or associate with any other University or authority or institution of higher learning in such manner and for such purposes as the University may determine; (xi) to establish, with the prior approval of the Central Government, such Campuses, Centres and specialised laboratories or other units for research and instruction, within or outside India, as are, in the opinion of the University necessary for the furtherance of its objects; (xii) to institute and award fellowships, scholarships, studentships, medals and prizes; (xiii) to establish and maintain Colleges, Institutions and Halls; (xiv) to make provision for research and advisory services and for that purpose to enter into such arrangements with other institutions, industrial or other organisations, as the University may deem necessary; (xv) to organise and conduct refresher courses, workshops, seminars and other programmes for teachers, evaluators and other academic staff; (xvi) to recognise, guide, supervise and control Halls not maintained by the University and other accommodation for students, and to withdraw any such recognition; (xvii) to appoint on contract or otherwise visiting Professors, Emeritus Professors, Consultants, Scholars and such other persons who may contribute to the advancement of the objects of the University; (xviii) to confer autonomous status on a College or an Institution or a Department, as the case may be, in accordance with the Statutes; (xix) to determine standards of admission to the University, which may include examination, evaluation or any other method of testing; (xx) to demand and receive payment of fees and other charges; 5 ----- (xxi) to supervise the residences of the students of the University and to make arrangements for promoting their health and general welfare; (xxii) to lay down conditions of service of all categories of employees, including their code of conduct; (xxiii) to regulate and enforce discipline among the students and the employees, and to take such disciplinary measures in this regard as may be deemed by the University to be necessary; (xxiv) to make arrangements for promoting the health and general welfare of the employees; (xxv) to receive benefactions, donations and gifts and to acquire, hold and manage, and to dispose of, with the previous approval of the Central Government, any property, movable or immovable, including trust and endowment properties for the purposes of the University; (xxvi) to borrow, with the approval of the Central Government, on the security of the property of the University, money for the purposes of the University; (xxvii) to do all such other acts and things as may be necessary, incidental or conducive to the attainment of all or any of its objects. **7. Jurisdiction.—The jurisdiction of the University shall extend to the whole of India.** **8. University open to all classes, castes and creeds.—The University shall be open to persons of** either sex and of whatever caste, creed, race or class, and it shall not be lawful for the University to adopt or impose on any person, any test whatsoever of religious belief or profession in order to entitle him to be appointed as a teacher of the University or to hold any other office therein or be admitted as a student in the University or to graduate thereat or to enjoy or exercise any privilege thereof: Provided that nothing in this section shall be deemed to prevent the University from making special provisions for the employment or admission of women, persons with disabilities or of persons belonging to the weaker sections of the society and, in particular, of the Scheduled Castes and the Scheduled Tribes. **9. Visitor.—(1) The President of India shall be the Visitor of the University.** (2) The Visitor may, from time to time, appoint one or more persons to review the work and progress of the University, including Colleges and Institutions maintained by it, and to submit a report thereon; and upon receipt of that report, the Visitor may, after obtaining the views of the Executive Council thereon through the Vice-Chancellor, take such action and issue such directions as he considers necessary in respect of any of the matters dealt with in the report and the University shall be bound to comply with such directions. (3) The Visitor shall have the right to cause an inspection, to be made by such person or persons as he may direct, of the University, its buildings, libraries, laboratories and equipment and of any College or Institution maintained by the University; and also of the examinations, teaching and other work conducted or done by the University and to cause an inquiry to be made in like manner in respect of any matter connected with theadministration or finances of the University, Colleges or Institutions. (4) The Visitor shall, in every matter referred to in sub-section (3), give notice to the University of his intention to cause an inspection or inquiry to be made, and the University shall have the right to make such representations to the Visitor, as it may considernecessary. (5) After considering the representations, if any, made by the University, the Visitor may cause to be made such inspection or inquiry as is referred to in sub-section (3). (6) Where any inspection or inquiry has been caused to be made by the Visitor, the University shall be entitled to appoint a representative, who shall have the right to be present and be heard at such inspection or inquiry. (7) The Visitor may address the Vice-Chancellor with reference to the result of such inspection or inquiry together with such views and advice with regard to the action to be taken thereon, as the Visitor may be pleased to offer, and on receipt of address made by the Visitor, the Vice-Chancellor shall 6 ----- communicate, to the Executive Council, the views of the Visitor with such advice as the Visitor may offer upon the action to be taken thereon. (8) The Executive Council shall communicate through the Vice-Chancellor to the Visitor such action, if any, as it proposes to take or has been taken upon the result of such inspection or inquiry. (9) Where the Executive Council does not, within a reasonable time, take action to the satisfaction of the Visitor, the Visitor may, after considering any explanation furnished or representation made by the Executive Council, issue such directions as he may think fit and the Executive Council shall comply with such directions. (10) Without prejudice to the foregoing provisions of this section, the Visitor may, by order in writing, annual any proceeding of the University which is not in conformity with the Act, the Statutes or the Ordinances: Provided that before making any such order, he shall call upon the Registrar to show cause why such an order should not be made, and, if any cause is shown within a reasonable time, he shall consider the same. (11) The Visitor shall have such other powers as may be prescribed by the Statutes. **10. The Chief Rector.—The Governor of the State of Andhra Pradesh shall be the Chief Rector of** the University. **11. Officers of the University.—The following shall be the officers of the University,—** (1) the Chancellor; (2) the Vice-Chancellor; (3) the Pro-Vice-Chancellor; (4) the Deans of Schools; (5) the Registrar; (6) the Finance Officer; (7) the Controller of Examinations; (8) the Librarian; and (9) such other officers as may be declared by the Statutes to be officers of the University. **12. The Chancellor.—(1) The Chancellor shall be appointed by the Visitor in such manner as may be** prescribed by the Statutes. (2) The Chancellor shall, by virtue of his office, be the head of the University and shall, if present, preside at the Convocations of the University held for conferring degrees and meetings of the Court. **13. The Vice-Chancellor.—(1) The Vice-Chancellor shall be appointed by the Visitor in such** manner and on such terms and conditions of service as may be prescribed by the Statutes. (2) The Vice-Chancellor shall be the principal executive and academic officer of the University and shall exercise general supervision and control over the affairs of the University and give effect to the decisions of all the authorities of the University. (3) The Vice-Chancellor may, if he is of opinion that immediate action is necessary on any matter, exercise any power conferred on any authority of the University by or under this Act and shall report to such authority at its next meeting the action taken by him on such matter: Provided that if the authority concerned is of opinion that such action ought not to have been taken, it may refer the matter to the Visitor whose decision thereon shall be final: Provided further that any person in the service of the University who is aggrieved by the action taken by the Vice-Chancellor under this sub-section shall have the right to represent against such action to the Executive Council within three months from the date on which decision on such action is communicated 7 ----- to him and thereupon the ExecutiveCouncil may confirm, modify or reverse the action taken by the ViceChancellor. (4) The Vice-Chancellor, if he is of the opinion that any decision of any authority of the University is beyond the powers of the authority conferred by the provisions of this Act, the Statutes or the Ordinances or that any decision taken is not in the interest of the University, may ask the authority concerned to review its decision within sixty days of such decision and if the authority refuses to review the decision either in whole or in part or no decision is taken by it within the said period of sixty days, the matter shall be referred to the Visitor whose decision thereon shall be final. (5) The Vice-Chancellor shall exercise such other powers and perform such other duties as may be prescribed by the Statutes or the Ordinances. **14. The Pro-Vice-Chancellor.—The Pro-Vice-Chancellor shall be appointed in such manner and on** such terms and conditions of service, and shall exercise such powers and perform such duties, as may be prescribed by the Statutes. **15. The Deans of Schools.—Every Dean of School shall be appointed in such manner and shall** exercise such powers and perform such duties as may be prescribed by the Statutes. **16. The Registrar.—(1) The Registrar shall be appointed in such manner and on such terms and** conditions of service as may be prescribed by the Statutes. (2) The Registrar shall have the power to enter into agreements, sign documents and authenticate records on behalf of the University and shall exercise such powers and perform such duties as may be prescribed by the Statutes. **17. The Finance Officer.—The Finance Officer shall be appointed in such manner and on such terms** and conditions of service, and shall exercise such powers and perform such duties, as may be prescribed by the Statutes. **18. The Controller of Examinations.—The Controller of Examinations shall be appointed in such** manner and shall exercise such powers and perform such duties, as may be prescribed by the Statutes. **19. The Librarian.—The Librarian shall be appointed in such manner and on such terms and** conditions of service, and shall exercise such powers and perform such duties, as may be prescribed by the Statutes. **20. Other officers.—The manner of appointment and powers and duties of other officers of the** University shall be prescribed by the Statutes. **21. Authorities of the University.—The following shall be the authorities of the University:—** (1) the Court; (2) the Executive Council; (3) the Academic Council; (4) the Schools of Studies; (5) the Finance Committee; and (6) such other authorities as may be declared by the Statutes to be the authorities of the University. **22. The Court.—(1) The constitution of the Court and the term of office of its members shall be** prescribed by the Statutes: Provided that such number of members as may be prescribed by the Statutes shall be elected from among the teachers, employees and students of the University. 8 ----- (2) Subject to the provisions of this Act, the Court shall have the following powers and functions, namely:— (a) to review, from time to time, the broad policies and programmes of the University and to suggest measures for the improvement and development of the University; (b) to consider and pass resolutions on the annual report and the annual accounts of the University and the audit report on such accounts; (c) to advise the Visitor in respect of any matter which may be referred to it for advice; and (d) to perform such other functions as may be prescribed by the Statutes. **23. The Executive Council.—(1) The Executive Council shall be the principal executive body of the** University. (2) The constitution of the Executive Council, the term of office of its members and its powers and functions shall be prescribed by the Statutes: Provided that such number of members as may be prescribed by the Statutes shall be from among the elected members of the Court. **24. The Academic Council.—(1) The Academic Council shall be the principal academic body of the** University and shall, subject to the provisions of this Act, the Statutes and the Ordinances,coordinate and exercise general supervision over the academic policies of the University. (2) The constitution of the Academic Council, the term of office of its members and its powers and functions shall be prescribed by the Statutes: Provided that such number of members as may be prescribed by the Statutes shall be from among the elected members of the Court who are teachers of the University. **25. The Schools of Studies.—The constitution, powers and functions of the Schools of Studies shall** be prescribed by the Statutes. **26. The Finance Committee.—The constitution, powers and functions of the Finance Committee** shall be prescribed by the Statutes. **27. Other authorities.—The constitution, powers and functions of other authorities, as may be** declared by the Statutes to be the authorities of the University, shall be prescribed by the Statutes. **28. Powers to make Statutes.—Subject to the provisions of this Act, the Statutes may provide for all** or any of the following matters, namely:— (a) the constitution, powers and functions of authorities and other bodies of the University, as may be constituted from time to time; (b) the appointment and continuance in office of the members of the said authorities and bodies, the filling up of vacancies of members, and all other matters relating to those authorities and other bodies for which it may be necessary or desirable to provide; (c) the appointment, powers and duties of the officers of the University and their emoluments; (d) the appointment of teachers, academic staff and other employees of the University, their emoluments and conditions of service; (e) the recognition of persons as recognized teachers; (f) the appointment of teachers, academic staff working in any other University or organisation for a specific period for undertaking a joint project; (g) the conditions of service of employees including provision for pension, insurance and provident fund, the manner of termination of service and disciplinary action relating to employees of the University; (h) the principles governing the seniority of service of the employees of the University; 9 ----- (i) the procedure for arbitration in cases of dispute between employees or students and the University; (j) the procedure for appeal to the Executive Council by any employee or student against the action of any officer or authority of the University; (k) the conferment of autonomous status on a College or an Institution or a Department; (l) the establishment and abolition of Schools, Departments, Centres, Halls, Colleges and Institutions; (m) the grant and withdrawal of recognition to Institutions; (n) the conferment of honorary degrees; (o) the withdrawal of degrees, diplomas, certificates and other academic distinctions; (p) the management of Colleges and Institutions established by the University; (q) the delegation of powers vested in the authorities or officers of the University; (r) the maintenance of discipline among the employees and students; (s) all other matters which by this Act are to be or may be provided for by the Statutes. **29. Statutes how to be made.—(1) The first Statutes are those set out in the Schedule.** (2) The Executive Council may, from time to time, make new or additional Statutes or may amend or repeal the Statutes referred to in sub-section (1): Provided that the Executive Council shall not make, amend or repeal any Statutes affecting the status, powers or constitution of any authority of the University until such authority has been given an opportunity of expressing an opinion in writing on the proposed changes, and any opinion so expressed shall be considered by the Executive Council. (3) Every new Statute or addition to the Statutes or any amendment or repeal of a Statute shall require the assent of the Visitor who may assent thereto or withhold assent or remit to the Executive Council for re-consideration. (4) A new Statute or a Statute amending or repealing an existing Statute shall have no validity unless it has been assented to by the Visitor. (5) Notwithstanding anything contained in the foregoing sub-sections, the Visitor may make new or additional Statutes or amend or repeal the Statutes referred to in sub-section (1), during the period of three years immediately after the commencement of this Act: Provided that the Visitor may, on the expiry of the said period of three years, make, within one year from the date of such expiry, such detailed Statutes as he may consider necessary and such detailed Statutes shall be laid before both Houses of Parliament. (6) Notwithstanding anything contained in the foregoing sub-sections, the Visitor may direct the University to make provisions in the Statutes in respect of any matter specified by him and if the Executive Council is unable to implement such direction within sixty days of its receipt, the Visitor may, after considering the reasons, if any, communicated by the Executive Council for its inability to comply with such direction, make or amend the Statutes suitably. **30. Power to make Ordinances.—(1) Subject to the provisions of this Act and the Statutes, the** Ordinances may provide for all or any of the following matters, namely:— (a) the admission of students to the University and their enrolment as such; (b) the courses of study to be laid down for all degrees, diplomas and certificates of the University; (c) the medium of instruction and examination; 10 ----- (d) the award of degrees, diplomas, certificates and other academic distinctions, qualifications for the same and the means to be taken relating to the granting and obtaining of the same; (e) the fees to be charged for courses of study in the University and for admission to the examinations, degrees and diplomas of the University; (f) the conditions for award of fellowships, scholarships, studentships, medals and prizes; (g) the conduct of examinations, including the term of office and manner of appointment and the duties of examining bodies, examiners and moderators; (h) the conditions of residence of the students of the University; (i) the special arrangements, if any, which may be made for the residence and teaching of women students and the prescribing of special courses of studies for them; (j) the manner of co-operation and collaboration with other Universities, institutions and other agencies not involving the carrying on of any activity for profit including learned bodies or associations; (k) the creation, composition and functions of any other body which is considered necessary for improving the academic life of the University; (l) the institution of fellowships, scholarships, studentships, medals and prizes; (m) the setting up of a machinery for redressal of grievances of employees; and (n) all other matters which by this Act or the Statutes, are to be or may be, provided for by the Ordinances. (2) The first Ordinances shall be made by the Vice-Chancellor with the previous approval of the Central Government and the Ordinances so made may be amended, repealed or added to at any time by the Executive Council in the manner prescribed by the Statutes: Provided that till such time as the first Ordinances are not so made by the Vice-Chancellor, in respect of the matters that are to be provided for by the Ordinances under this Act and Statutes, the relevant provisions of the rules and the bye-laws of the Central Institute of English and Foreign Languages, Hyderabad in force immediately before the commencement of this Act shall be applicable in so far as they are not inconsistent with the provisions of this Act and the Statutes. **31. Regulations.—The authorities of the University may make Regulations, consistent with this Act,** the Statutes and the Ordinances for the conduct of their own business and that of the Committees, if any, appointed by them and not provided for by this Act, the Statutes or the Ordinances, in the manner prescribed by the Statutes. **32. Annual report.—(1) The annual report of the University shall be prepared under the directions of** the Executive Council, which shall include, among other matters, the steps taken by the University towards the fulfilment of its objects and shall be submitted to the Court on or after such date as may be prescribed by the Statutes and the Court shall consider the report in its annual meeting. (2) The Court shall submit the annual report to the Visitor along with its comments, if any. (3) A copy of the annual report, as prepared under sub-section (1), shall also be submitted to the Central Government, which shall, as soon as may be, cause the same to be laid before both Houses of Parliament. **33. Annual accounts.—(1) The annual accounts and balance-sheet of the University shall be** prepared under the directions of the Executive Council and shall, once at least every year and atintervals of not more than fifteen months, be audited by the Comptroller and Auditor-General of India or by such persons as he may authorise in this behalf. (2) A copy of the annual accounts together with the audit report thereon shall be submitted to the Court and the Visitor along with the observations of the Executive Council. 11 ----- (3) Any observations made by the Visitor on the annual accounts shall be brought to the notice of the Court and the observations of the Court, if any, shall, after being considered by the Executive Council, be submitted to the Visitor. (4) A copy of the annual accounts together with the audit report as submitted to the Visitor, shall also be submitted to the Central Government, which shall, as soon as may be, cause the same to be laid before both Houses of Parliament. (5) The audited annual accounts after having been laid before both Houses of Parliament shall be published in the Gazette of India. **34. Returns and information.—The University shall furnish to the Central Government such returns** or other information with respect to its property or activities as the Central Government may, from time to time, require. **35. Conditions of service of employees.—(1) Every employee of the University shall be appointed** under a written contract, which shall be lodged with the University and a copy of which shall be furnished to the employee concerned. (2) Any dispute arising out of the contract between the University and any employee shall, at the request of the employee, be referred to a Tribunal of Arbitration consisting of one member appointed by the Executive Council, one member nominated by the employee concerned and an umpire appointed by the Visitor. (3) The decision of the Tribunal shall be final, and no suit shall lie in any civil court in respect of the matters decided by the Tribunal: Provided that nothing in this sub-section shall preclude the employee from availing of the judicial remedies available under articles 32 and 226 of the Constitution. (4) Every request made by the employee under sub-section (2), shall be deemed to be a submission to arbitration upon the terms of this section within the meaning of the Arbitration and Conciliation Act, 1996 (26 of 1996). (5) The procedure for regulating the work of the Tribunal shall be prescribed by the Statutes. **36. Procedure of appeal and arbitration in disciplinary cases against students.—(1) Any student** or candidate for an examination whose name has been removed from the rolls of the University by the orders or resolution of the Vice-Chancellor, Discipline Committee or Examination Committee, as the case may be, and who has been debarred from appearing at the examinations of the University for more than one year, may, within ten days of the date of receipt of such orders or copy of such resolution by him, appeal to the Executive Council and the Executive Council may confirm, modify or reverse the decision of the Vice-Chancellor or the Committee, as the case may be. (2) Any dispute arising out of any disciplinary action taken by the University against a student shall, at the request of such student, be referred to a Tribunal of Arbitration and the provisions of sub-sections (2), (3), (4) and (5) of section 35 shall, as far as may be, apply to a reference made under this sub-section. **37. Right to appeal.—Every employee or student of the University or a College or an Institution** maintained by the University shall, notwithstanding anything contained in this Act, have a right to appeal within such time as may be prescribed by the Statutes, to the Executive Council against the decision of any officer or authority of the University or of the Principal of any College or an Institution, as the case may be, and thereupon the Executive Council may confirm, modify or reverse the decision appealed against. **38. Provident and pension funds.—(1) The University shall constitute for the benefit of its** employees such provident or pension fund or provide such insurance schemes as it may deem fit in such manner and subject to such conditions as may be prescribed by the Statutes. (2) Where such provident fund or pension fund has been so constituted, the Central Government may declare that the provisions of the Provident Funds Act, 1925 (19 of 1925) shall apply to such fund, as if it were a Government provident fund. 12 ----- **39. Disputes as to constitution of University authorities and bodies.—If any question arises as to** whether any person has been duly elected or appointed as, or is entitled to be, a member of any authority or other body of the University, the matter shall be referred to the Visitor whose decision thereon shall be final. **40. Filling of casual vacancies.—All casual vacancies among the members (other than** _ex officio_ members) of any authority or other body of the University shall be filled, as soon as may be, by the person or body who appoints, elects or co-opts the member whose place has become vacant and person appointed, elected or co-opted to a casual vacancy shall be a member of such authority or body for the residue of the term for which the person whose place he fills would have been a member. **41. Proceedings of University authorities or bodies not invalidated by vacancies.—No act or** proceedings of any authority or other body of the University shall be invalid merely by reason of the existence of a vacancy or vacancies among its members. **42. Protection of action taken in good faith.—No suit or other legal proceeding shall lie against any** officer or other employee of the University for anything which is in good faith done or intended to be done in pursuance of any of the provisions of this Act, the Statutes or the Ordinances. **43. Mode of proof of University record.—Notwithstanding anything contained in the Indian** Evidence Act, 1872 (1 of 1872) or in any other law for the time being in force, a copy of any receipt, application, notice, order, proceeding or resolution of any authority or other body of the University, or any other document in possession of the University, or any entry in any register duly maintained by the University, if certified by the Registrar, shall be received as _prima facie evidence of such receipt,_ application, notice, order, proceeding, resolution or document or the existence of entry in the register and shall be admitted as evidence of the matters and transactions therein where the original thereof would, if produced, have been admissible in evidence. **44. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made under this section after the expiry of three years from the commencement of this Act. (2) Every order made under sub-section (1) shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the order or both Houses agree that the order should not be made, the order shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that order. **45. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid** **before Parliament.—(1) Every Statute, Ordinance or Regulation made under this Act shall be published** in the Official Gazette. (2) Every Statute, Ordinance or Regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successivesessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the Statute, Ordinance or Regulation or both Houses agree that the Statute, Ordinance or Regulation should not be made, the Statute, Ordinance or Regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that Statute, Ordinance or Regulation. (3) The power to make Statutes, Ordinances or Regulations shall include the power to give retrospective effect, from a date not earlier than the date of commencement of this Act, to the Statutes, 13 ----- Ordinances or Regulations or any of them but no retrospective effect shall be given to any Statute, Ordinance or Regulation so as to prejudicially affect the interests of any person to whom such Statute, Ordinance or Regulation may be applicable. **46. Transitional provisions.—Notwithstanding anything contained in this Act and the Statutes,—** (a) the first Chancellor and the first Vice-Chancellor shall be appointed by the Central Government in such manner and on such conditions as may be deemed fit and each of the said officers shall hold office for such term, not exceeding five years, as may be specified by the Central Government; (b) the first Registrar and the first Finance Officer shall be appointed by the Central Government and each of the said officers shall hold office for a term of three years; (c) the first Court and the first Executive Council shall consist of not more than thirty members and eleven members, respectively, who shall be nominated by the Central Government and shall hold office for a term of three years; (d) the first Academic Council shall consist of not more than twenty-one members, who shall be nominated by the Central Government and they shall hold office for a term of three years: Provided that if any vacancy occurs in the above offices or authorities, the same shall be filled by appointment or nomination, as the case may be, by the Central Government, and the person so appointed or nominated shall hold office for so long as the officer or member in whose place he is appointed or nominated would have held office, if such vacancy had not occurred. 14 ----- THE SCHEDULE (See section 29) THE STATUTESOF THE UNIVERSITY **1. The Chancellor.—(1) The Chancellor shall be appointed by the Visitor from a panel of not less** than three persons recommended by the Executive Council from amongst persons of eminence in the academic or public life of the country: Provided that if the Visitor does not approve of any of the persons so recommended, he may call for fresh recommendations from the Executive Council. (2) The Chancellor shall hold office for a term of five years and shall not be eligible for re-appointment: Provided that notwithstanding the expiry of his term of office, the Chancellor shall continue to hold office until his successor enters upon his office. **2. The Vice-Chancellor.—(1) The Vice-Chancellor shall be appointed by the Visitor from a panel of** not less than three persons who shall be recommended by a Committee as constituted under clause (2): Provided that if the Visitor does not approve of any of the persons included in the panel, he may call for an extended or a fresh panel. (2) The Committee referred to in clause (1) shall consist of three persons, out of whom two shall be nominated by the Executive Council and one by the Visitor and the nominee of the Visitor shall be the convener of the Committee: Provided that none of the members of the Committee shall be an employee of the University or a College or an Institution maintained by the University or a member of any authority of the University. (3) The Vice-Chancellor shall be a whole-time salaried officer of the University. (4) The Vice-Chancellor shall hold office for a term of five years from the date on which he enters upon his office, or until he attains the age of sixty-five years, whichever is earlier, and he shall not be eligible for re-appointment: Provided that notwithstanding the expiry of the said period of five years, he shall continue in office until his successor is appointed and enters upon his office: Provided further that the Visitor may direct any Vice-Chancellor after his term has expired, to continue in office for such period, not exceeding a total period of one year, as may be specified by him or till his successor is appointed and enters upon his office, whichever is earlier. (5) The emoluments and other conditions of service of the Vice-Chancellor shall be as follows:— (i) the Vice-Chancellor shall be paid a monthly salary and allowances, other than house rent allowance, at the rates fixed by the Central Government from time to time and he shall be entitled, without payment of rent, to use a furnished residence throughout his term of office and no charge shall fall on the Vice-Chancellor in respect of the maintenance of such residence; (ii) the Vice-Chancellor shall be entitled to such terminal benefits and allowances as may be fixed by the Central Government from time to time: Provided that where an employee of the University, or a college or an institution maintained by, or admitted to the privileges of the University, or of any other University or any college or institution maintained by or admitted to the privileges of such other University, is appointed as the ViceChancellor, he may be allowed to continue to contribute to any provident fund of which he is a member and the University shall contribute to the account of such person in that provident fund at the same rate at which the person had been contributing immediately before his appointment as the ViceChancellor: Provided further that where such employee had been member of any pension scheme, the University shall make the necessary contribution to such scheme; 15 ----- (iii) the Vice-Chancellor shall be entitled to travelling allowance at such rates as may be fixed by the Executive Council; (iv) the Vice-Chancellor shall be entitled to leave on full pay at the rate of thirty days in a calendar year and the leave shall be credited to his account in advance in two half-yearly instalments of fifteen days each on the first day of January and July every year: Provided that if the Vice-Chancellor assumes or relinquishes charge of the office of the Vice Chancellor during the currency of a half year, the leave shall be credited proportionately at the rate of two and-a-half days for each completed month of service; (v) in addition to the leave referred to in sub-clause (iv), the Vice-Chancellor shall also be entitled to half-pay leave at the rate of twenty days for each completed year of service, and half-pay leave may also be availed of as commuted leave on full pay on medical certificate: Provided that when such commuted leave is availed of, twice the amount of half-pay leave shall be debited against half-pay leave due. (6) If the office of the Vice-Chancellor becomes vacant due to death, resignation or otherwise, or if he is unable to perform his duties due to ill-health or any other cause, the Pro-Vice-Chancellor shall perform the duties of the Vice-Chancellor: Provided that if the Pro-Vice-Chancellor is not available, the senior most Professor shall perform the duties of the Vice-Chancellor until a new Vice-Chancellor assumes office or until the existing ViceChancellor resumes the duties of his office, as the case may be. **3. Powers and duties of the Vice-Chancellor.—(1) The Vice-Chancellor shall be the** _ex officio_ Chairman of the Executive Council, the Academic Council and the Finance Committee and shall, in the absence of the Chancellor, preside at the Convocations held for conferring degrees and at meetings of the Court. (2) The Vice-Chancellor shall be entitled to be present at, and address, any meeting of any authority or other body of the University, but shall not be entitled to vote thereat unless he is a member of such authority or body. (3) It shall be the duty of the Vice-Chancellor to see that this Act, the Statutes, the Ordinances and the Regulations are duly observed and he shall have all the powers necessary to ensure such observance. (4) The Vice-Chancellor shall have all the powers necessary for the proper maintenance of discipline in the University and he may delegate any such powers to such person or persons as he deems fit. (5) The Vice-Chancellor shall have the power to convene or cause to be convened the meetings of the Executive Council, the Academic Council and the Finance Committee. **4.The Pro-Vice-Chancellor.—(1) The Pro-Vice-Chancellor shall be appointed by the Executive** Council on the recommendation of the Vice-Chancellor: Provided that where the recommendation of the Vice-Chancellor is not accepted by the Executive Council, the matter shall be referred to the Visitor who may either appoint the person recommended by the Vice-Chancellor or ask the Vice-Chancellor to recommend another person to the Executive Council: Provided further that the Executive Council may, on the recommendation of the Vice-Chancellor, appoint a Professor to discharge the duties of a Pro-Vice-Chancellor in addition to his own duties as a Professor. (2) The term of office of a Pro-Vice-Chancellor shall be such as may be decided by the Executive Council but it shall not in any case exceed five years or until the expiration of the term of office of the Vice-Chancellor, whichever is earlier: Provided that a Pro-Vice-Chancellor whose term of office has expired shall be eligible for re-appointment: Provided further that, in any case, a Pro-Vice-Chancellor shall retire on attaining the age of sixty-five years: 16 ----- Provided also that a Pro-Vice-Chancellor shall, while discharging the duties of the Vice-Chancellor under clause (6) of Statute 2, continue in office notwithstanding the expiration of his term of office as Pro-Vice-Chancellor, until the Vice-Chancellor resumes office or a new Vice-Chancellor assumes office, as the case may be. (3) The emoluments and other terms and conditions of service of a Pro-Vice-Chancellor shall be such as may be prescribed by the Ordinances. (4) The Pro-Vice-Chancellor shall assist the Vice-Chancellor in respect of such matters as may be specified by the Vice-Chancellor in this behalf, from time to time, and shall also exercise such powers and perform such duties as may be assigned or delegated to him by the Vice-Chancellor. **5. Deans of Schools.—(1) Every Dean of School shall be appointed by the Vice-Chancellor from** amongst the Professors in the School by rotation in the order of seniority for a period of three years: Provided that in case there is only one Professor or no Professor in a School, the Dean shall be appointed, for the time being, from amongst the Professor, if any, and the Readers in the School by rotation in the order of seniority: Provided further that a Dean on attaining the age of sixty-two years shall cease to hold office as such. (2) When the office of the Dean is vacant or when the Dean is, by reason of illness, absence or any other cause, unable to perform duties of his office, the duties of the office shall be performed by the senior-most Professor or Reader, as the case may be, in the School. (3) The Dean shall be the Head of the School and shall be responsible for the conduct and maintenance of the standards of teaching and research in the School and shall have such other functions as may be prescribed by the Ordinances. (4) The Dean shall have the right to be present and to speak at any meeting of the Boards of Studies or Committees of the School, as the case may be, but shall not have the right to vote thereat unless he is a member thereof. **6. The Registrar.—(1) The Registrar shall be appointed by the Executive Council on the** recommendation of a Selection Committee constituted for the purpose and shall be a whole-time salaried officer of the University. (2) He shall be appointed for a term of five years and shall be eligible for re-appointment. (3) The emoluments and other terms and conditions of service of the Registrar shall be such as may be prescribed by the Executive Council from time to time: Provided that the Registrar shall retire on attaining the age of sixty-two years: Provided further that a Registrar shall, notwithstanding his attaining the age of sixty-two years, continue in office until his successor is appointed and enters upon his office or until the expiry of a period of one year, whichever is earlier. (4) When the office of the Registrar is vacant or when the Registrar is, by reason of illness, absence or any other cause, unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) (a) The Registrar shall have power to take disciplinary action against such of the employees, excluding teachers and other academic staff, as may be specified in the order of the Executive Council and to suspend them pending inquiry, to administer warnings to them or to impose on them the penalty of censure or the withholding of increment: Provided that no such penalty shall be imposed unless the person has been given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. (b) An appeal shall lie to the Vice-Chancellor against any order of the Registrar imposing any of the penalties specified in sub-clause (a). 17 ----- (c) In a case where the inquiry discloses that a punishment beyond the power of the Registrar is called for, the Registrar shall, upon the concluding of the inquiry, make a report to the Vice-Chancellor along with his recommendations: Provided that an appeal shall lie to the Executive Council against an order of the Vice-Chancellor imposing any penalty. (6) The Registrar shall be the _ex officio Secretary of the Executive Council and the Academic_ Council, but shall not be deemed to be a member of any of these authorities and he shall be the ex officio Member-Secretary of the Court. (7) It shall be the duty of the Registrar— (a) to be the custodian of the records, the common seal and such other property of the University as the Executive Council shall commit to his charge; (b) to issue all notices convening meetings of the Court, the Executive Council, the Academic Council and of any Committees appointed by those authorities; (c) to keep the minutes of all the meetings of the Court, the Executive Council, the Academic Council and of any Committees appointed by those authorities; (d) to conduct the official correspondence of the Court, the Executive Council and the Academic Council; (e) to supply to the Visitor copies of the agenda of the meetings of the authorities of the University as soon as they are issued and the minutes of such meetings; (f) to represent the University in suits or proceedings by or against the University, sign powers of attorney and verify pleadings or depute his representative for the purpose; and (g) to perform such other duties as may be specified in the Statutes, the Ordinances or the Regulations or as may be required from time to time by the Executive Council or the ViceChancellor. **7. The Finance Officer.—(1) The Finance Officer shall be appointed by the Executive Council on** the recommendations of a Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. (2) The Finance Officer shall be appointed for a term of five years and shall be eligible for re-appointment. (3) The emoluments and other terms and conditions of service of the Finance Officer shall be such as may be prescribed by the Executive Council from time to time: Provided that the Finance Officer shall retire on attaining the age of sixty-two years: Provided further that the Finance Officer shall, notwithstanding his attaining the age of sixty-two years, continue in office until his successor is appointed and enters upon his office or until the expiry of a period of one year, whichever is earlier. (4) When the office of the Finance Officer is vacant or when the Finance Officer is, by reason of illness, absence or any other cause, unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) The Finance Officer shall be the ex officio Secretary of the Finance Committee, but shall not be deemed to be a member of such Committee. (6) The Finance Officer shall— (a) exercise general supervision over the funds of the University and shall advise it as regards its financial policy; and (b) perform such other financial functions as may be assigned to him by the Executive Council or as may be prescribed by the Statutes or the Ordinances. 18 ----- (7) Subject to the control of the Executive Council, the Finance Officer shall— (a) hold and manage the property and investments of the University including trust and endowed property; (b) ensure that the limits fixed by the Executive Council for recurring and non-recurring expenditure for a year are not exceeded and that all moneys are expended on the purpose for which they are granted or allotted; (c) be responsible for the preparation of annual accounts and the budget of the University and for their presentation to the Executive Council; (d) keep a constant watch on the state of the cash and bank balances and on the state of investments; (e) watch the progress of the collection of revenue and advise on the methods of collection employed; (f) ensure that the registers of buildings, land, furniture and equipment are maintained up-to-date and that stock-checking is conducted, of equipment and other consumable materials in all offices, Departments, University, Institutes, Centres and Specialised Laboratories; (g) bring to the notice of the Vice-Chancellor unauthorised expenditure and other financial irregularities and suggest disciplinary action against persons at fault; and (h) call for from any office, Department, Centre, Laboratory, College or Institution maintained by the University any information or returns that he may consider necessary for the performance of his duties. (8) Any receipt given by the Finance Officer or the person or persons duly authorised in this behalf by the Executive Council for any money payable to the University shall be sufficient discharge for payment of such money. **8. The Controller of Examinations.—(1) The Controller of Examinations shall be appointed by the** Executive Council on the recommendations of a Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. (2) The Controller of Examinations shall be appointed for a term of five years and shall be eligible for re-appointment. (3) The emoluments and other terms and conditions of service of the Controller of Examinations shall be such as may be prescribed by the Executive Council from time to time: Provided that the Controller of Examinations shall retire on attaining the age of sixty-two years: Provided further that the Controller of Examinations shall, notwithstanding his attaining the age of sixty-two years, continue in office until his successor is appointed and enters upon his office or until the expiry of a period of one year, whichever is earlier. (4) When the office of the Controller of Examinations is vacant or when the Controller of Examinations is, by reason of illness, absence or any other cause, unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) The Controller of Examinations shall arrange for and superintend the examinations of the University in the manner prescribed by the Ordinances. **9. The Librarian.—(1) The Librarian shall be appointed by the Executive Council on the** recommendations of the Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. (2) The Librarian shall exercise such powers and perform such duties as may be assigned to him by the Executive Council. 19 ----- **10. The Court.—(1) An annual meeting of the Court shall be held on a date to be fixed by the** Executive Council unless some other date has been fixed by the Court in respect of any year. (2) At the annual meeting of the Court, a report on the working of the University during the previous year, together with a statement of the receipts and expenditure, the balance sheet as audited, and the financial estimates for the next year shall be presented. (3) A copy of the statement of receipts and expenditure, the balance sheet and the financial estimates referred to in clause (4) shall be sent to every member of the Court at least seven days before the date of the annual meeting. (4) Special meetings of the Court may be convened by the Executive Council or the Vice-Chancellor or if there is no Vice-Chancellor, the Pro-Vice-Chancellor or if there is no Pro-Vice-Chancellor, by the Registrar. (5) Eleven members of the Court shall form a quorum for a meeting of the Court. **11. The Executive Council.—Seven members of the Executive Council shall form a quorum for a** meeting of the Executive Council. **12. Powers and functions of the Executive Council.—(1) The Executive Council shall have the** power of management and administration of the revenues and property of the University and the conduct of all administrative affairs of the University not otherwise provided for. (2) Subject to the provisions of the Act, the Statutes and the Ordinances, the Executive Council shall, in addition to all other powers vested in it, have the following powers, namely:— (i) to create teaching and other academic posts, to determine the number and emoluments of such posts and to define the duties and conditions of service of Professors, Readers, Lecturers and other academic staff: Provided that no action shall be taken by the Executive Council in respect of the number and qualifications of teachers and other academic staff otherwise than after consideration of the recommendations of the Academic Council; (ii) to appoint such Professors, Readers, Lecturers and other academic staff, as may be necessary, and the Directors of University, Institutes and Heads of independent Centres on the recommendation of the Selection Committee constituted for the purpose and to fill up temporary vacancies therein; (iii) to recognise persons as University recognised teachers in the manner prescribed by the Ordinances; (iv) to create administrative, ministerial and other necessary posts (including Chairs) and to make appointments thereto in the manner prescribed by the Ordinances; (v) to grant leave of absence to any salaried officer of the University other than the Vice Chancellor, and to make necessary arrangements for the discharge of the functions of such officer during his absence; (vi) to regulate and enforce discipline among employees in accordance with the Statutes and the Ordinances; (vii) to manage and regulate the finances, accounts, investments, property, business and all other administrative affairs of the University and for that purpose to appoint such agents as it may think fit; (viii) to fix limits on the total recurring and the total non-recurring expenditure for a year on the recommendation of the Finance Committee; (ix) to invest any money belonging to the University, including any unapplied income, in such stocks, funds, share or securities, from time to time as it may think fit or in the purchase of immovable property in India, with the like powers of varying such investment from time to time; (x) to transfer or accept transfers of any movable or immovable property on behalf of the University; 20 ----- (xi) to provide buildings, premises, furniture and apparatus and other means needed for carrying on the work of the University; (xii) to enter into, vary, carry out and cancel contracts on behalf of the University; (xiii) to entertain, adjudicate upon, and if thought fit, to redress any grievances of the employees and students of the University who may, for any reason, feel aggrieved; (xiv) to appoint examiners and moderators and, if necessary, to remove them, and to fix their fees, emoluments and travelling and other allowances, after consulting the Academic Council; (xv) to select a common seal for the University and provide for the custody and use of such seal; (xvi) to make such special arrangements as may be necessary for the residence of women students; (xvii) to institute fellowships, scholarships, studentships, medals and prizes; (xviii) to provide for the appointment of Visiting Professors, Emeritus Professors, Consultants and Scholars and determine the terms and conditions of such appointments; and (xix) to exercise such other powers and perform such other duties as may be conferred or imposed on it by the Act or the Statutes. **13. The Academic Council.—Nine members of the Academic Council shall form a quorum for a** meeting of the Academic Council. **14. Powers and functions of the Academic Council.—Subject to the provisions of the Act, the** Statutes and the Ordinances, the Academic Council shall, in addition to all other powers vested in it, have the following powers, namely:— (a) to exercise general supervision over the academic policies of the University and to give directions regarding methods of instruction, co-ordination of teaching among the Colleges and the Institutions, evaluation of research and improvement of academic standards; (b) to bring about and promote inter-School co-ordination and to establish or appoint such committees or boards as may be deemed necessary for the purpose; (c) to consider matters of general academic interest either on its own initiative, or on a reference by a School or the Executive Council, and to take appropriate action thereon; and (d) to frame such regulations and rules consistent with the Statutes and the Ordinances regarding the academic functioning of the University, discipline, residence, admissions, award of fellowships and studentships, fees, concessions, corporate life and attendance. **15. Schools of Studies and Departments.—(1) The University shall have such Schools of Studies as** may be specified in the Statutes. (2) Every School shall have a School Board and the members of the first School Board shall be nominated by the Executive Council for a period of three years. (3) The composition, powers and functions of a School Board shall be prescribed by the Ordinances. (4) The conduct of the meetings of a School Board and the quorum required for such meetings shall be prescribed by the Ordinances. (5) (a) Every School shall consist of such Departments as may be assigned to it by the Ordinances: Provided that the Executive Council may, on the recommendation of the Academic Council, establish Centres of Studies to which may be assigned such teachers of the University as the Executive Council may consider necessary. 21 ----- (b) Each Department shall consist of the following members, namely:— (i) Teachers of the Department; (ii) Persons conducting research in the Department; (iii) Dean of the School; (iv) Honorary Professors, if any, attached to the Department; and (v) Such other persons as may be members of the Department in accordance with the provisions of the Ordinances. **16. Boards of Studies.—(1) Each Department shall have a Board of Studies.** (2) The constitution of the Board of Studies and the term of office of its members shall be prescribed by the Ordinances. (3) Subject to the overall control and supervision of the Academic Council, the functions of a Board of Studies shall be to approve subjects for research for various degrees and other requirements of research degrees and to recommend to the concerned School Board in the manner prescribed by the Ordinances— (a) courses of studies and appointment of examiners for courses, but excluding research degrees; (b) appointment of supervisors for research; and (c) measures for the improvement of the standard of teaching and research: Provided that the above functions of a Board of Studies shall, during the period of three years immediately after the commencement of the Act, be performed by the Department. **17. The Finance Committee.—(1) The Finance Committee shall consist of the following members,** namely:— (i) the Vice-Chancellor; (ii) the Pro-Vice-Chancellor; (iii) one person to be nominated by the Court; (iv) three persons to be nominated by the Executive Council, out of whom at least one shall be a member of the Executive Council; and (v) three persons to be nominated by the Visitor. (2) Five members of the Finance Committee shall form a quorum for a meeting of the Finance Committee. (3) All the members of the Finance Committee, other than the _ex officio members, shall hold office_ for a term of three years. (4) A member of the Finance Committee shall have the right to record a minute of dissent if he does not agree with any decision of the Finance Committee. (5) The Finance Committee shall meet at least thrice every year to examine the accounts and to scrutinise proposals for expenditure. (6) All proposals relating to creation of posts, and those items which have not been included in the Budget, shall be examined by the Finance Committee before they are considered by the Executive Council. (7) The annual accounts and the financial estimates of the University prepared by the Finance Officer shall be laid before the Finance Committee for consideration and comments and thereafter submitted to the Executive Council for approval. (8) The Finance Committee shall recommend limits for the total recurring expenditure and the total non-recurring expenditure for the year, based on the income and resources of the University (which, in the case of productive works, may include the proceeds of loans). 22 ----- **18. Selection Committees.—(1) There shall be Selection Committees for making recommendations** to the Executive Council for appointment to the posts of Professor, Reader, Lecturer, Registrar, Finance Officer, Librarian and Principals of Colleges and Institutions maintained by the University. (2) The Selection Committee for appointment to the posts specified in Column 1 of the Table below shall consist of the Vice-Chancellor, a nominee of the Visitor and the persons specified in the corresponding entry in column 2 of the said Table: TABLE 1 2 Professor (i) The Dean of the School. (ii) The Head of the Department. (iii) Three persons not in the service of the University, nominated by the Executive Council, out of a panel of names recommended by the Academic Council for their special knowledge of, or interest in, the subject with which the Professor will be concerned. Reader/Lecturer (i) The Head of the Department. (ii) One Professor nominated by the ViceChancellor. (iii) Two persons not in the service of the University, nominated by the Executive Council, out of a panel of names recommended by the Academic Council for their special knowledge of, or interest in, the subject with which the Reader/Lecturer will be concerned. Registrar/ Finance Officer/ Controller of Examinations (i) Two members of the Executive Councilnominated by it. (ii) One person not in the service of the University nominated by the Executive Council. Librarian (i) Two persons not in the service of the University who have special knowledge of the subject of the Library Science/Library Administration nominated by the Executive Council. (ii) One person not in the service of the University nominated by the Executive Council. Principal of College or Institution maintained by the University. Three persons not in the service of the University. University of whom two shall be nominated by the Executive Council and one by the Academic Council for their special knowledge of, or interest in, a subject in which instruction is being provided by the College or Institution. _Note 1. Where the appointment is being made for an inter-disciplinary project, the head of the project_ shall be deemed to be the Head of the Department concerned. _Note 2. The Professor to be nominated by the Vice-Chancellor shall be a Professor concerned with the_ speciality for which the selection is being made and the Vice-Chancellor shall consult the Head of the Department and the Dean of School before nominating the Professor. 23 ----- (3) The Vice-Chancellor, or in his absence the Pro-Vice-Chancellor, shall convene and preside at the meeting of the Selection Committee: Provided that the meeting of the Selection Committee shall be fixed after prior consultation with, and subject to the convenience of Visitor's nominee and the experts nominated by the Executive Council: Provided further that the proceedings of the Selection Committee shall not be valid unless,— (a) where the number of Visitor's nominee and the persons nominated by the Executive Council is four in all, at least three of them attend the meeting; and (b) where the number of Visitor's nominee and the persons nominated by the Executive Council is three in all, at least two of them attend the meeting. (4) The procedure to be followed by the Selection Committee shall be laid down in the Ordinances. (5) If the Executive Council is unable to accept the recommendations made by the Selection Committee, it shall record its reasons and submit the case to the Visitor for final orders. (6) Appointments to temporary posts shall be made in the manner indicated below— (i) If the temporary vacancy is for duration longer than one academic session, it shall be filled on the advice of the Selection Committee in accordance with the procedure indicated in the foregoing clauses: Provided that if the Vice-Chancellor is satisfied that in the interests of work it is necessary to fill the vacancy, the appointment may be made on a purely temporary basis on the advice of a local Selection Committee referred to in sub-clause(ii) for a period not exceeding six months. (ii) If the temporary vacancy is for a period less than a year, an appointment to such vacancy shall be made on the recommendation of a local Selection Committee consisting of the Dean of the School concerned, the Head of the Department and a nominee of the Vice-Chancellor: Provided that if the same person holds the offices of the Dean and the Head of the Department, the Selection Committee may contain two nominees of the Vice-Chancellor: Provided further that in the case of sudden casual vacancies of teaching posts caused by death or any other reason, the Dean may, in consultation with the Head of the Department concerned, make a temporary appointment for a month and report to the Vice-Chancellor and the Registrar about such appointment. (iii) No teacher appointed temporarily shall, if he is not recommended by a regular Selection Committee for appointment under the Statutes, be continued in service on such temporary employment, unless he is subsequently selected by a local Selection Committee or a regular Selection Committee, for a temporary or permanent appointment, as the case may be. **19. Special mode of appointment.—(1) Notwithstanding anything contained in Statute 18, the** Executive Council may invite a person of high academic distinction and professional attainments to accept a post of Professor or any other equivalent academic post in the University on such terms and conditions as it deems fit and on the person agreeing to do so appoint him to the post. (2) The Executive Council may appoint a teacher or any other academic staff working in any other University or organisation for undertaking a joint project in accordance with the manner laid down in the Ordinances. **20. Appointment for a fixed tenure.—The Executive Council may appoint a person selected in** accordance with the procedure laid down in Statute 18 for a fixed tenure on such terms and conditions as it deems fit. **21. Recognised teachers.—(1)The qualifications of recognised teachers shall be such as may be** prescribed by the Ordinances. 24 ----- (2) All applications for the recognition of teachers shall be made in such manner as may be laid down by the Ordinances. (3) No teacher shall be recognized as a teacher except on the recommendation of a Selection Committee constituted for the purpose in the manner laid down in the Ordinances. (4) The period of recognition of a teacher shall be determined by the Ordinances made in that behalf. (5) The Academic Council may, by a special resolution passed by a majority of not less than two thirds of the members present and voting, withdraw recognition from a teacher: Provided that no such resolution shall be passed until notice in writing has been given to the person concerned calling upon him to show cause, within such time as may be specified in the notice, why such resolution should not be passed and until his objections, if any, and any evidence he may produce in support of them have been considered by the Academic Council. **22. Committees.—(1) Any authority of the University may appoint as many standing or special** Committees as it may deem fit, and may appoint to such Committees persons who are not members of such authority. (2) Any Committee appointed under clause (1) may deal with any subject delegated to it subject to subsequent confirmation by the authority appointing it. **23. Terms and conditions of service and code of conduct of the teachers, etc.—(1) All the** teachers and other academic staff of the University shall, in the absence of any agreement to the contrary, be governed by the terms and conditions of service and code of conduct as are specified in the Statutes, the Ordinances and the Regulations. (2) The emoluments of members of the academic staff shall be such as may be prescribed by the Ordinances. (3) Every teacher and other member of the academic staff of the University shall be appointed on a written contract, the form of which shall be prescribed by the Ordinances. (4) A copy of every contract referred to in clause (3) shall be deposited with the Registrar. **24. Terms and conditions of service and code of conduct of other employees.—(1) All the** employees of the University, other than the teachers and other academic staff, shall, in the absence of any contract to the contrary, be governed by the terms and conditions of service and code of conduct as are specified in the Statutes, the Ordinances and the Regulations. (2) The manner of appointment and emoluments of employees, other than the teachers and other academic staff, shall be such as may be prescribed by the Ordinances. **25. Seniority list.—(1) Whenever, in accordance with the Statutes, any person is to hold an office or** be a member of an authority of the University by rotation according to seniority, such seniority shall be determined according to the length of continuous service of such person in his grade and in accordance with such other principles as the Executive Council may, from time to time, prescribe. (2) It shall be the duty of the Registrar to prepare and maintain in respect of each class of persons to whom the provisions of these Statutes apply, a complete and up-to-date seniority list in accordance with the provisions of clause (1). (3) If two or more persons have equal length of continuous service in a particular grade or the relative seniority of any person or persons is otherwise in doubt, the Registrar may, on his own motion and shall, at the request of any such person, submit the matter to the Executive Council whose decision thereon shall be final. **26. Removal of employees of the University.—(1) Where there is an allegation of misconduct** against a teacher, a member of the academic staff or other employee of the University, the ViceChancellor, in the case of the teacher or a member of the academic staff, and the authority competent to appoint (hereinafter referred to as the appointing authority) in the case of other employee may, by order inwriting, place such teacher, member of the academic staff or other employee, as the case may be, under 25 ----- suspension and shall forthwith report to the Executive Council the circumstances in which the order was made: Provided that the Executive Council may, if it is of the opinion, that the circumstances of the case do not warrant the suspension of the teacher or a member of the academic staff, revoke such order. (2) Notwithstanding anything contained in the terms of the contract of appointment or of any other terms and conditions of service of the employees, the Executive Council in respect of teachers and other academic staff, and the appointing authority in respect of other employees, shall have the power to remove a teacher or a member of the academic staff or other employee, as the case may be, on grounds of misconduct. (3) Save as aforesaid, the Executive Council, or as the case may be, the appointing authority, shall not be entitled to remove any teacher, member of the academic staff or other employee except for a good cause and after giving three months' notice or on payment of three months' salary in lieu thereof. (4) No teacher, member of the academic staff or other employee shall be removed under clause (2) or clause (3) unless he has been given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. (5) The removal of a teacher, member of the academic staff or other employee shall take effect from the date on which the order of removal is made: Provided that where the teacher, member of the academic staff or other employee is under suspension at the time of his removal, such removal shall take effect from the date on which he was placed under suspension. (6) Notwithstanding anything contained in the foregoing provisions of this Statute, a teacher, member of the academic staff or other employee may resign— (a) if he is a permanent employee, only after giving three months' notice in writing to the Executive Council or the appointing authority, as the case may be, or by paying three months' salary in lieu thereof; (b) if he is not a permanent employee, only after giving one month's notice in writing to the Executive Council or, as the case may be, the appointing authority or by paying one month's salary in lieu thereof: Provided that such resignation shall take effect only on the date on which the resignation is accepted by the Executive Council or the appointing authority as the case may be. **27. Honorary degrees.—(1) The Executive Council may, on the recommendation of the Academic** Council and by a resolution passed by a majority of not less than two-thirds of the members present and voting, make proposals to the Visitor for the conferment of honorary degrees: Provided that in case of emergency, the Executive Council may, on its own motion, make such proposals. (2) The Executive Council may, by a resolution passed by a majority of not less than two-thirds of the members present and voting, withdraw, with the previous sanction of the Visitor, any honorary degree conferred by the University. **28. Withdrawal of degrees, etc.—The Executive Council may, by a special resolution passed by a** majority of not less than two-thirds of the members present and voting, withdraw a degree or academic distinction conferred on, or any certificate or diploma granted to, any person by the University for good and sufficient cause: Provided that no such resolution shall be passed until a notice in writing has been given to that person calling upon him to show cause within such time as may be specifiedin the notice why such a resolution should not be passed and until his objections, if any, and any evidence he may produce in support of them, have been considered by the Executive Council. 26 ----- **29. Maintenance of discipline amongst students of the University.—(1) All powers relating to the** maintenance of discipline and disciplinary action in relation to the students of the University shall vest in the Vice-Chancellor. (2) There shall be a Proctor of the University to assist the Vice-Chancellor in the exercise of the powers referred to in clause (1), who shall be appointed by the Executive Council from amongst the Professors and Readers in the manner prescribed by the Ordinances. (3) The Vice-Chancellor may delegate all or any of the powers referred to in clause (1), as he deems proper, to the Proctor and to such other officers as he may specify in this behalf. (4) Without prejudice to the generality of his powers relating to the maintenance of discipline and taking such action, as may seem to him appropriate for the maintenance of discipline, the Vice-Chancellor may, in exercise of such powers, by order, direct that any student or students be expelled or rusticated, for a specified period, or be not admitted to a course or courses of study in a College, Institution or Department or a School of the University for a stated period, or be punished with fine for an amount to be specified in the order, or be debarred from taking an examination or examinations conducted by the University, College, Institution or Department or a School for one or more years, or that the results of the student or students concerned in the examination or examinations in which he or they have appeared be cancelled. (5) The Principals of College, Institutions, Deans of Schools of Studies and Heads of teaching Departments in the University shall have the authority to exercise all such disciplinary powers over the students in their respective Colleges, Institutions, Schools and teaching Departments in the University, as may be necessary for the proper conduct of such Colleges, Institutions, Schools and teaching Departments. (6) Without prejudice to the powers of the Vice-Chancellor and the Principal and other persons specified in clause (5), detailed rules of discipline and proper conduct shall be made by the University. (7) The Principals of College, Institutions, Deans of Schools of Studies and Heads of teaching Departments in the University may also make such supplementary rules as they deem necessary for the purposes stated therein. (8) At the time of admission, every student shall be required to sign a declaration to the effect that he submits himself to the disciplinary jurisdiction of the Vice-Chancellor and other authorities of the University. **30. Convocations.—Convocations of the University for the conferring of degrees or for other** purposes shall be held in such manner as may be prescribed by the Ordinances. **31. Acting Chairman of meetings.—Where no provision is made for a President or Chairman to** preside over a meeting of any authority of the University or any Committee of such authority or when the President or Chairman so provided for is absent, the members present shall elect one from among themselves to preside at such meeting. **32. Resignation.—Any member, other than an** _ex officio_ member, of the Court, the Executive Council, the Academic Council or any other authority of the University or any Committee of such authority may resign by letter addressed to the Registrar and the resignation shall take effect as soon as such letter is received by the Registrar. **33. Disqualification.—(1) A person shall be disqualified for being chosen as, and for being, a** member of any of the authorities of the University— (i) if he is of unsound mind; (ii) if he is an undischarged insolvent; (iii) if he has been convicted by a court of law of an offence involving moral turpitude and sentenced in respect thereof to imprisonment for not less than six months. 27 ----- (2) If any question arises as to whether a person is or had been subjected to any of the disqualifications mentioned in clause (1), the question shall be referred to the Visitor and his decision shall be final and no suit or other proceeding shall lie in any civil court against such decision. **34. Residence condition for membership and office.—Notwithstanding anything contained in the** Statutes, a person who is not ordinarily resident in India shall not be eligible to be an officer of the University or a member of any authority of the University. **35. Membership of authorities by virtue of membership of other bodies.—Notwithstanding** anything contained in the Statutes, a person who holds any post in the University or is a member of any authority or body of the University in his capacity as a member of a particular authority or body or as the holder of a particular appointment shall hold such office or membership only for so long as he continues to be a member of that particular authority or body or the holder of that particular appointment, as the case may be. **36. Alumni Association.—(1) There shall be an Alumni Association for the University.** (2) The subscription for membership of the Alumni Association shall be prescribed by the Ordinances. (3) No member of the Alumni Association shall be entitled to vote or stand for election unless he has been a member of the Association for at least one year prior to the date of election and is a degree holder of the University of at least five years standing: Provided that the condition relating to the completion of one year's membership shall not apply in the case of the first election. **37. Students Council.—(1) There shall be constituted in the University, a Students' Council for every** academic year, consisting of— (i) the Dean of Students' Welfare who shall be the Chairman of the Students' Council; (ii) twenty students to be nominated by the Academic Council on the basis of merit in studies, sports and extra curricular activities; and (iii) such number of elected representatives of students as may be prescribed by the Academic Council: Provided that any student of the University shall have the right to bring up any matter concerning the University before the Students' Council if so permitted by the Chairman, and he shall have the right to participate in the discussions at any meeting when the matter is taken up for consideration. (2) The functions of the Students' Council shall be to make suggestions to the appropriate authorities of the University in regard to the programmes of studies, students' welfare and other matters of importance, in regard to the working of the University in general and such suggestions shall be made on the basis of consensus of opinion. (3) The Students' Council shall meet at least once in an academic year preferably in the beginning of that year. **38. Ordinances how made.—(1) The first Ordinances made under sub-section (2) of section 30 may** be amended, repealed or added to at any time by the Executive Council in the manner specified in the following sub-sections. (2) No Ordinance in respect of the matters enumerated in sub-section (1) of section 30 shall be made by the Executive Council unless a draft of such Ordinance has been proposed by the Academic Council. (3) The Executive Council shall not have power to amend any draft of any Ordinance proposed by the Academic Council under clause (2), but may reject the proposal or return the draft to the Academic Council for re-consideration, either in whole or in part, together with any amendment which the Executive Council may suggest. (4) Where the Executive Council has rejected or returned the draft of an Ordinance proposed by the Academic Council, the Academic Council may consider the question afresh and in case the original draft 28 ----- is reaffirmed by a majority of not less than two-thirds of the members present and voting and more than half the total number of members of the Academic Council, the draft may be sent back to the Executive Council which shall either adopt it or refer it to the Visitor whose decision shall be final. (5) Every Ordinance made by the Executive Council shall come into effect immediately. (6) Every Ordinance made by the Executive Council shall be submitted to the Visitor within two weeks from the date of its adoption. (7) The Visitor shall have the power to direct the University to suspend the operation of any Ordinance. (8) The Visitor shall inform the Executive Council about his suspending the Ordinance referred to in clause (7) and may, after receiving the comments of the University, either withdraw the order suspending the Ordinance or disallow the Ordinance, and his decision shall be final. **39. Regulations.—(1) The authorities of the University may make Regulations consistent with the** Act, the Statutes and the Ordinances for the following matters, namely:— (i) laying down the procedure to be observed at their meetings and the number of members required to form a quorum; (ii) providing for all matters which are required by the Act, the Statutes or the Ordinance to be prescribed by Regulations; (iii) providing for all other matters solely concerning such authorities or committees appointed by them and not provided for by the Act, the Statutes or the Ordinances. (2) Every authority of the University shall make Regulations providing for the giving of notice to the members of such authority of the dates of meeting and of the business to be considered at meetings and for the keeping of a record of the proceedings of meetings. (3) The Executive Council may direct the amendment in such manner as it may specify of any Regulation made under the Statutes or the annulment of any such Regulation. **40. Delegation of powers.—Subject to the provisions of the Act and the Statutes, any officer or** authority of the University may delegate his or its powers to any other officer or authority or person under his or its respective control and subject to the condition that overall responsibility for the exercise of the powers so delegated shall continue to vest in the officer or authority delegating such powers. 29 -----

10-Jan-2007

08

The Rajiv Gandhi University Act, 2006

https://www.indiacode.nic.in/bitstream/123456789/2087/1/200708.pdf

central

# THE RAJIV GANDHI UNIVERSITY ACT, 2006 ____________ ARRANGEMENT OF SECTIONS _________ SECTIONS 1. Short title and commencement. 2. Definitions. 3. Establishment of the University 4. Effect of establishment of the University. 5. Objects of the University. 6. Powers of the University. 7. Jurisdictions. 8. University open to all classes, castes and creed. 9. The Visitor. 10. The Chief Rector. 11. Officers of the University. 12. The Chancellor. 13. The Vice-Chancellor. 14. The Pro-Vice-Chancellor. 15. The Deans of Faculties. 16. The Registrar. 17. The Finance Officer. 18. The Controller of Examinations. 19. The Librarian. 20. Other officers. 21. Authorities of the University. 22. The Court. 23. The Executive Council. 24. The Academic Council. 25. The College Development Council. 26. The Board of Studies. 27. The Finance Committee. 28. Other authorities of the University. 29. Power to make Statutes. 30. Statutes how to be made. 31. Power to make Ordinances. 32. Regulations. 33. Annual report. 34. Annual accounts. 35. Returns and information. 36. Conditions of service of employees. 37. Procedure of appeal and arbitration in disciplinary cases against students. 38. Right to appeal. 39. Provident and pension funds. 40. Disputes as to constitution of authorities and bodies. 41. Filling of casual vacancies. 1 ----- SECTIONS 42. Proceedings of authorities or bodies not invalidated by vacancies. 43. Protection of action taken in good faith. 44. Mode of proof of University record. 45. Power to remove difficulties. 46. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid before Parliament. 47. Transitional provisions. 48. Repeal of Arunachal Pradesh Act 1 of 1984. 49. Amendment of Act 24 of 1973. THE SCHEDULE. 2 ----- # THE RAJIV GANDHI UNIVERSITY ACT, 2006 ACT NO. 8 OF 2007 [10th January, 2007.] # An Act to establish and incorporate a teaching and affiliating University in the State of Arunachal Pradesh and to provide for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-seventh Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the Rajiv Gandhi University Act,** 2006. (2) It shall come into force on such date [1]as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.—In this Act, and in all Statutes made hereunder, unless the context otherwise** requires,— (a) “Academic Council” means the Academic Council of the University; (b) “academic staff” means such categories of staff as are designated as academic staff by the Ordinances; (c) “Affiliated College” means a college admitted to the privileges of the University; (d) “Approved Institution” means an Institution approved by the University for offering programmes of study leading to a certificate or diploma or both, not being an institution imparting programmes of study leading to a degree; (e) “Approved teachers” means such persons as may be approved by the University for the purpose of imparting instruction in an Approved Institution; (f) “Board of Studies” means the Board of Studies of the University; (g) “Chancellor”, “Vice-Chancellor” and “Pro-Vice-Chancellor” mean, respectively, the Chancellor, Vice-Chancellor and Pro-Vice-Chancellor of the University; (h) “College Development Council” means the College Development Council of the University; (i) “Constituent College” means a college maintained by the University; (j) “Court” means the Court of the University; (k) “Department” means a Department of Studies and includes a Centre of Studies; (l) “distance education system” means the system of imparting education through any means of communication, such as broadcasting, telecasting, correspondence courses, seminars, contact programmes or the combination of any two or more such means; (m) “employee” means any person appointed by the University and includes teachers and other staff of the University; (n) “Executive Council” means the Executive Council of the University; (o) “Faculty” means a Faculty of the University; (p) “Hall” means a unit of residence or of corporate life for the students of the University, or of a College or an Institution, maintained by the University; (q) “Institution” means an academic institution, not being a College, maintained by, or admitted to the privileges of, the University; 1. 1st April, 2007, vide notification No. S.O. 512(E), dated 1st April, 2007, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 3 ----- (r) “Principal” means the Head of a College or an Institution maintained by the University and includes, where there is no Principal, the person for the time being duly appointed to act as Principal, and in the absence of the Principal, or the acting Principal, a Vice-Principal duly appointed as such; (s) “recognised teachers” means such persons as may be recognised by the University for the purpose of imparting instructions in a College or an Institution admitted to the privileges of the University; (t) “Regulations” means the Regulations made by any authority of the University under this Act for the time being in force; (u) “Statutes” and “Ordinances” mean, respectively, the Statutes and the Ordinances of the University for the time being in force; (v) “teachers of the University” means Professors, Readers, Lecturers and such other persons as may be appointed for imparting instruction or conducting research in the University or in any College or Institution maintained by the University and are designated as teachers by the Ordinances; _(w) “University” means the Rajiv Gandhi University established and incorporated as a University_ under this Act. **3. Establishment of the University.—(1) The Rajiv Gandhi University in the State of Arunachal** Pradesh, established under the Rajiv Gandhi University Act, 1984 (Arunachal Pradesh Act 1 of 1984), shall be established as a body corporate under this Act by the same name of “Rajiv Gandhi University”. (2) The first Chancellor, the first Vice-Chancellor and the first members of the Court, the Executive Council and the Academic Council, and all persons who may hereafter become such officers or members, so long as they continue to hold such office or membership, shall constitute the University. (3) The University shall have perpetual succession and a common seal and shall sue and be sued by the said name. (4) The headquarters of the University shall be at Itanagar. **4. Effect of establishment of the University.—On and from the date of commencement of this Act,—** (a) any reference to the Rajiv Gandhi University in any contract or other instrument shall be deemed as a reference to the University; (b) all property, movable and immovable, of or belonging to the Rajiv Gandhi University shall vest in the University; (c) all rights and liabilities of the Rajiv Gandhi University shall be transferred to, and be the rights and liabilities of, the University; (d) every person employed by the Rajiv Gandhi University immediately before the commencement of this Act shall hold his office or service in the University by the same tenure, at the same remuneration and upon the same terms and conditions and with the same rights and privileges as to pension, leave, gratuity, provident fund and other matters as he would have held the same if this Act had not been enacted, and shall continue to do so unless and until his employment is terminated or until such tenure, remuneration and terms and conditions are duly altered by the Statutes: Provided that if the alteration so made is not acceptable to such employee, his employment may be terminated by the University in accordance with the term of the contract with the employee or, if no provision is made therein in this behalf, on payment to him by the University of compensation equivalent to three months' remuneration in case of permanent employees and one month's remuneration in the case of other employees: Provided further that every person employed before the commencement of this Act, pending the execution of a contract under section 36, shall be deemed to have been appointed in accordance with the provisions of a contract consistent with the provisions of this Act and the Statutes: 4 ----- Provided also that any reference, by whatever form of words, to the Vice-Chancellor and Pro-Vice Chancellor of the Rajiv Gandhi University in any law for the time being in force, or in any instrument or other document, shall be construed as a reference respectively to the Vice-Chancellor and the Pro-ViceChancellor of the University; (e) the Vice-Chancellor of the Rajiv Gandhi University, appointed under the provisions of the Rajiv Gandhi University Act, 1984 (Arunachal Pradesh Act 1 of 1984) shall be deemed to have been appointed as the Vice-Chancellor under this Act, and shall hold office for a period of three months or till such time the first Vice-Chancellor is appointed under section 47 of the Act, whichever is earlier; and (f) all Colleges, Institutions, Faculties and Departments affiliated to, or admitted to the privileges of, or maintained by, the Rajiv Gandhi University shall stand affiliated to, or admitted to the privilege of, or maintained by, the University. **5. Objects of the University.—The objects of the University shall be to disseminate and advance** knowledge by providing instructional and research facilities in such branches of learning as it may deem fit; to make provisions for integrated courses in humanities, natural and physical sciences, social sciences, forestry and other allied disciplines in the educational programmes of the University; to take appropriate measures for promoting innovations in teaching-learning process, inter-disciplinary studies and research; to educate and train manpower for the development of the State of Arunachal Pradesh; and to pay special attention to the improvement of the social and economic conditions and welfare of the people of that State, their intellectual, academic and cultural development. **6. Powers of the University.—The University shall have the following powers, namely:—** (i) to provide for instructions in such branches of learning as the University may, from time to time, determine and to make provisions for research and for the advancement and dissemination of knowledge; (ii) to grant, subject to such conditions as the University may determine, diplomas or certificates to, and confer degrees or other academic distinctions on the basis of examinations, evaluation or any other method of testing, on persons, and to withdraw any such diplomas, certificates, degrees or other academic distinctions for good and sufficient cause; (iii) to organise and to undertake extramural studies, training and extension services; (iv) to confer honorary degrees or other distinctions in the manner prescribed by the Statutes; (v) to provide facilities through the distance education system to such persons as it may determine; (vi) to institute Principalships, Professorships, Readerships, Lecturerships and other teaching or academic positions, required by the University and to appoint persons to such Principalships, Professorships, Readerships, Lecturerships or other teaching or academic positions; (vii) to recognise an Institution of higher learning for such purposes as the University may determine and to withdraw such recognition; (viii) to recognise persons for imparting instructions in any College or Institution admitted to the privileges of the University; (ix) to appoint persons working in any other University or educational institution as teachers of the University for a specified period; (x) to create administrative, ministerial and other posts and to make appointments thereto; (xi) to co-operate or collaborate or associate with any other University or authority or Institution of higher learning in such manner and for such purposes as the University may determine; (xii) to establish, with the prior approval of the Central Government, such Centres and specialised laboratories or other units for research and instruction as are, in the opinion of the University, necessary for the furtherance of its objects; (xiii) to institute and award fellowships, scholarships, studentships, medals and prizes; (xiv) to establish and maintain Colleges, Institutions and Halls; 5 ----- (xv) to make provision for research and advisory services and for that purpose to enter into such arrangements with other institutions, industrial or other organisations, as the University may deem necessary; (xvi) to organise and conduct refresher courses, workshops, seminars and other programmes for teachers, evaluators and other academic staff; (xvii) to admit to its privileges Colleges and Institutions within the State of Arunachal Pradesh not maintained by the University; to withdraw all or any of those privileges in accordance with such conditions as may be prescribed by the Statutes; torecognise, guide, supervise, and control Halls not maintained by the University and other accommodation for students, and to withdraw any such recognition; (xviii) to appoint on contract or otherwise visiting Professors, Emeritus Professors, Consultants, Scholars and such other persons who may contribute to the advancement of the objects of the University; (xix) to confer autonomous status on a College or an Institution or a Department, as the case may be, in accordance with the Statutes; (xx) to determine standards of admission to the University, which may include examination, evaluation or any other method of testing; (xxi) to demand and receive payment of fees and other charges; (xxii) to supervise the residences of the students of the University and to make arrangements for promoting their health and general welfare; (xxiii) to lay down conditions of service of all categories of employees, including their code of conduct; (xxiv) to regulate and enforce discipline among the students and the employees, and to take such disciplinary measures in this regard as may be deemed by the University to be necessary; (xxv) to make arrangements for promoting the health and general welfare of the employees; (xxvi) to receive benefactions, donations and gifts and to acquire, hold and manage, and to dispose of, with the previous approval of the Central Government, any property, movable or immovable, including trust and endowment properties for the purposes of the University; (xxvii) to borrow, with the approval of the Central Government, on the security of the property of the University, money for the purposes of the University; (xxviii) to do all such other acts and things as may be necessary, incidental or conducive to the attainment of all or any of its objects. **7. Jurisdiction.—(1) The jurisdiction of the University shall extend to the whole of the State of** Arunachal Pradesh. (2) Notwithstanding anything in any other law for the time being in force, no educational institution within the State of Arunachal Pradesh shall be associated in any way with or be admitted to any privileges of any other University incorporated by law in India, and any such privileges granted by any such other University to an educational institution within the State of Arunachal Pradesh prior to the commencement of this Act shall be deemed to be withdrawn on the commencement of this Act: Provided that the Central Government may, by order in writing, direct that the provisions of this sub-section shall not apply in case of any educational institution specified in the order. **8. University open to all classes, castes and creed.—The University shall be open to persons of** either sex and of whatever caste, creed, race or class, and it shall not be lawful for the University to adopt or impose on any person, any test whatsoever of religious belief or profession in order to entitle him to be appointed as a teacher of the University or to hold any other office therein or be admitted as a student in the University or to graduate thereat or to enjoy or exercise any privilege thereof: 6 ----- Provided that nothing in this section shall be deemed to prevent the University from making special provisions for the employment or admission of women, persons with disabilities or of persons belonging to the weaker sections of the society and, in particular, of the Scheduled Castes and the Scheduled Tribes. **9. The Visitor.—(1) The President of India shall be the Visitor of the University.** (2) The Visitor may, from time to time, appoint one or more persons to review the work and progress of the University, including Colleges and Institutions maintained by it, and to submit a report thereon; and upon receipt of that report, the Visitor may, after obtaining the views of the Executive Council thereon through the Vice-Chancellor, take such action and issue such directions as he considers necessary in respect of any of the matters dealt with in the report and the University shall be bound to comply with such directions. (3) The Visitor shall have the right to cause an inspection to be made by such person or persons as he may direct, of the University, its buildings, libraries, laboratories and equipment, and of any College or Institution maintained by the University or admitted to its privileges; and also of the examinations, teaching and other work conducted or done by the University and to cause an inquiry to be made in like manner in respect of any matter connected with the administration or finances of the University, Colleges or Institutions. (4) The Visitor shall, in every matter referred to in sub-section (3), give notice of his intention to cause an inspection or inquiry to be made,— (a) to the University, if such inspection or inquiry is to be made in respect of the University or any College or Institution maintained by it, or (b) to the management of the College or Institution, if the inspection or inquiry is to be made in respect of College or Institution admitted to the privileges of the University, and the University or the management, as the case may be, shall have the right to make such representations to the Visitor, as it may consider necessary. (5) After considering the representations, if any, made by the University or the management, as the case may be, the Visitor may cause to be made such inspection or inquiry as is referred to in sub-section (3). (6) Where any inspection or inquiry has been caused to be made by the Visitor, the University or the management shall be entitled to appoint a representative, who shall have the right to be present and be heard at such inspection or inquiry. (7) The Visitor may, if the inspection or inquiry is made in respect of the University or any College or Institution maintained by it, address the Vice-Chancellor with reference to the result of such inspection or inquiry together with such views and advice with regard to the action to be taken thereon, as the Visitor may be pleased to offer, and on receipt of address made by the Visitor, the Vice-Chancellor shall communicate, to the Executive Council, the views of the Visitor with such advice as the Visitor may offer upon the action to be taken thereon. (8) The Visitor may, if the inspection or inquiry is made in respect of any College or Institution admitted to the privileges of the University, address the management concerned through the ViceChancellor with reference to the result of such inspection or inquiry, his views thereon and such advice as he may be pleased to offer upon the action to be taken thereon. (9) The Executive Council or the management, as the case may be, shall communicate, through the Vice-Chancellor to the Visitor such action, if any, as it proposes to take or has been taken upon the result of such inspection or inquiry. (10) Where, the Executive Council or the management, does not, within a reasonable time, take action to the satisfaction of the Visitor, the Visitor may, after considering any explanation furnished or representation made by the Executive Council or the management, issue such directions as he may think fit and the Executive Council or the management, as the case may be, shall comply with such directions. 7 ----- (11) Without prejudice to the foregoing provisions of this section, the Visitor may, by order in writing, annul any proceeding of the University which is not in conformity with the Act, the Statutes or the Ordinances: Provided that before making any such order, he shall call upon the Registrar to show cause why such an order should not be made, and, if any cause is shown within a reasonable time, he shall consider the same. (12) The Visitor shall have such other powers as may be prescribed by the Statutes. **10. The Chief Rector.—The Governor of the State of Arunachal Pradesh shall be the Chief Rector of** the University. **11. Officers of the University.—The following shall be the officers of the University:—** (1) the Chancellor; (2) the Vice-Chancellor; (3) the Pro-Vice-Chancellor; (4) the Deans of Faculties; (5) the Registrar; (6) the Finance Officer; (7) the Controller of Examinations; (8) the Librarian; and (9) such other officers as may be declared by the Statutes to be officers of the University. **12. The Chancellor.—(1) The Chancellor shall be appointed by the Visitor in such manner as may be** prescribed by the Statutes. (2) The Chancellor shall, by virtue of his office, be the head of the University and shall, if present, preside at the Convocations of the University held for conferring degrees and meetings of the Court. **13. The Vice-Chancellor.—(1) The Vice-Chancellor shall be appointed by the Visitor in such** manner as may be prescribed by the Statutes. (2) The Vice-Chancellor shall be the principal executive and academic officer of the University and shall exercise general supervision and control over the affairs of the University and give effect to the decisions of all the authorities of the University. (3) The Vice-Chancellor may, if he is of the opinion that immediate action is necessary on any matter, exercise any power conferred on any authority of the University by or under this Act and shall report to such authority at its next meeting the action taken by him on such matter: Provided that if the authority concerned is of the opinion that such action ought not to have been taken, it may refer the matter to the Visitor whose decision thereon shall be final: Provided further that any person in the service of the University who is aggrieved by the action taken by the Vice-Chancellor under this sub-section shall have the right to represent against such action to the Executive Council within three months from the date on which decision on such action is communicated to him and thereupon the Executive Council may confirm, modify or reverse the action taken by the ViceChancellor. (4) The Vice-Chancellor, if he is of the opinion that any decision of any authority of the University is beyond the powers of the authority conferred by the provisions of this Act, the Statutes or the Ordinances or that any decision taken is not in the interest of the University, may ask the authority concerned to review its decision within sixty days of such decision and if the authority refuses to review the decision either in whole or in part or no decision is taken by it within the said period of sixty days, the matter shall be referred to the Visitor whose decision thereon shall be final. 8 ----- (5) The Vice-Chancellor shall exercise such other powers and perform such other duties as may be prescribed by the Statutes or the Ordinances. **14. The Pro-Vice-Chancellor.—The Pro-Vice-Chancellor shall be appointed in such manner and on** such terms and conditions of service, and shall exercise such powers and perform such duties, as may be prescribed by the Statutes. **15. The Deans of Faculties.—Every Dean of Faculty shall be appointed in such manner and shall** exercise such powers and perform such duties as may be prescribed by the Statutes. **16. The Registrar.—(1) The Registrar shall be appointed in such manner and on such terms and** conditions of service as may be prescribed by the Statutes. (2) The Registrar shall have the power to enter into agreements, sign documents and authenticate records on behalf of the University and shall exercise such powers and perform such duties as may be prescribed by the Statutes. **17. The Finance Officer.—The Finance Officer shall be appointed in such manner and shall exercise** such powers and perform such duties, as may be prescribed by the Statutes. **18. The Controller of Examinations.—The Controller of Examinations shall be appointed in such** manner and shall exercise such powers and perform such duties, as may be prescribed by the Statutes. **19. The Librarian.—The Librarian shall be appointed in such manner and on such terms and** conditions of service, and shall exercise such powers and perform such duties, as may be prescribed by the Statutes. **20. Other officers.—The manner of appointment and powers and duties of other officers of the** University shall be prescribed by the Statutes. **21. Authorities of the University.—The following shall be the authorities of the University:—** (1) the Court; (2) the Executive Council; (3) the Academic Council; (4) the College Development Council; (5) the Board of Studies; (6) the Finance Committee; and (7) such other authorities as may be declared by the Statutes to be the authorities of the University. **22. The Court.—(1) The constitution of the Court and the term of office of its members shall be** prescribed by the Statutes: Provided that such number of members as may be prescribed by the Statutes shall be elected from among the teachers, employees and students of the University. (2) Subject to the provisions of this Act, the Court shall have the following powers and functions, namely:— (a) to review, from time to time, the broad policies and programmes of the University and to suggest measures for the improvement and development of the University; (b) to consider and pass resolutions on the annual report and the annual accounts of the University and the audit report on such accounts; (c) to advise the Visitor in respect of any matter which may be referred to it for advice; and (d) to perform such other functions as may be prescribed by the Statutes. 9 ----- **23. The Executive Council.—(1) The Executive Council shall be the principal executive body of the** University. (2) The constitution of the Executive Council, the term of office of its members and its powers and functions shall be prescribed by the Statutes: Provided that such number of members as may be prescribed by the Statutes shall be from among the elected members of the Court. **24. The Academic Council.—(1) The Academic Council shall be the principal academic body of the** University and shall, subject to the provisions of this Act, the Statutes and the Ordinances, co-ordinate and exercise general supervision over the academic policies of the University. (2) The constitution of the Academic Council, the term of office of its members and its powers and functions shall be prescribed by the Statutes: Provided that such number of members as may be prescribed by the Statutes shall be from among the elected members of the Court who are teachers of the University. **25. The College Development Council.—(1) The College Development Council shall be responsible** for admitting Colleges to the privileges of the University. (2) The constitution of the College Development Council, the term of office of its members and its powers and functions shall be prescribed by the Statutes. **26. The Board of Studies.—The constitution, powers and functions of the Board of Studies shall be** prescribed by the Statutes. **27. The Finance Committee.—The constitution, powers and functions of the Finance Committee** shall be prescribed by the Statutes. **28. Other authorities of the University.—The constitution, powers and functions of other** authorities, as may be declared by the Statutes to be the authorities of the University, shall be prescribed by the Statutes. **29. Power to make Statutes.—Subject to the provisions of this Act, the Statutes may provide for all** or any of the following matters, namely:— (a) the constitution, powers and functions of authorities and other bodies of the University, as may be constituted from time to time; (b) the appointment and continuance in office of the members of the said authorities and bodies, the filling up of vacancies of members, and all other matters relating to those authorities and other bodies for which it may be necessary or desirable to provide; (c) the appointment, powers and duties of the officers of the University and their emoluments; (d) the appointment of teachers, academic staff and other employees of the University, their emoluments and conditions of service; (e) the recognition and approval of persons as recognised teachers and approved teachers; (f) the appointment of teachers, academic staff working in any other University or organisation for a specific period for undertaking a joint project; (g) the conditions of service of employees including provisions for pension, insurance, provident fund, the manner of termination of service and disciplinary action; (h) the principles governing the seniority of service of the employees of the University; (i) the procedure for arbitration in cases of dispute between employees or students and the University; (j) the procedure for appeal to the Executive Council by any employee or student against the action of any officer or authority of the University; 10 ----- (k) the conferment of autonomous status on a College or an Institution or a Department; (l) the establishment and abolition of Faculties, Departments, Centres, Halls, Colleges and Institutions; (m) the conferment of honorary degrees; (n) the withdrawal of degrees, diplomas, certificates and other academic distinctions; (o) the conditions under which Colleges and Institutions may be admitted to the privileges of the University and the withdrawal of such privileges; (p) the management of Colleges and Institutions established by the University; (q) the delegation of powers vested in the authorities or officers of the University; (r) the maintenance of discipline among the employees and students; and (s) all other matters which by this Act are to be or may be provided for by the Statutes. **30. Statutes how to be made.—(1) The first Statutes are those set out in the Schedule.** (2) The Executive Council may, from time to time, make new or additional Statutes or may amend or repeal the Statutes referred to in sub-section (1): Provided that the Executive Council shall not make, amend or repeal any Statutes affecting the status, powers or constitution of any authority of the University until such authority has been given an opportunity of expressing an opinion in writing on the proposed changes, and any opinion so expressed shall be considered by the Executive Council. (3) Every new Statute or addition to the Statutes or any amendment or repeal of a Statute shall require the assent of the Visitor who may assent thereto or withhold assent or remit to the Executive Council for re-consideration. (4) A new Statute or a Statute amending or repealing an existing Statute shall have no validity unless it has been assented to by the Visitor. (5) Notwithstanding anything contained in the foregoing sub-sections, the Visitor may make new or additional Statutes or amend or repeal the Statutes referred to in sub-section (1), during the period of three years immediately after the commencement of this Act: Provided that the Visitor may, on the expiry of the said period of three years, make, within one year from the date of such expiry, such detailed Statutes as he may consider necessary and such detailed Statutes shall be laid before both Houses of Parliament. (6) Notwithstanding anything contained in the foregoing sub-sections, the Visitor may direct the University to make provisions in the Statutes in respect of any matter specified by him and if the Executive Council is unable to implement such direction within sixty days of its receipt, the Visitor may, after considering the reasons, if any, communicated by the Executive Council for its inability to comply with such direction, make or amend the Statutes suitably. **31. Power to make Ordinances.—(1) Subject to the provisions of this Act and the Statutes, the** Ordinances may provide for all or any of the following matters, namely:— (a) the admission of students to the University and their enrolment as such; (b) the courses of study to be laid down for all degrees, diplomas and certificates of the University; (c) the medium of instruction and examination; (d) the award of degrees, diplomas, certificates and other academic distinctions, the qualifications for the same and the means to be taken relating to the granting and obtaining of the same; (e) the fees to be charged for courses of study in the University and for admission to the examinations, degrees and diplomas of the University; 11 ----- (f) the conditions for award of fellowships, scholarships, studentships, medals and prizes; (g) the conduct of examinations, including the term of office and manner of appointment and the duties of examining bodies, examiners and moderators; (h) the conditions of residence of the students of the University; (i) the special arrangements, if any, which may be made for the residence, and teaching of women students and the prescribing of special courses of studies for them; (j) the establishment of Centres of Studies, Boards of Studies, Specialised Laboratories and other Committees; (k) the manner of co-operation and collaboration with other Universities, Institutions and other agencies not involving the carrying on of any activity for profit including learned bodies or associations; (l) the creation, composition and functions of any other body which is considered necessary for improving the academic life of the University; (m) the institution of fellowships, scholarships, studentships, medals and prizes; (n) the supervision of management of Colleges and Institutions admitted to the privileges of the University; (o) the setting up of a machinery for redressal of grievances of employees; and (p) all other matters which by this Act or the Statutes, are to be or may be, provided for by the Ordinances. (2) The first Ordinances shall be made by the Vice-Chancellor with the previous approval of the Central Government and the Ordinances so made may be amended, repealed or added to at any time by the Executive Council in the manner prescribed by the Statutes: Provided that till such time as the first Ordinances are not so made by the Vice-Chancellor, in respect of the matters that are to be provided for by the Ordinances under this Act and the Statutes, the relevant provisions of the Statutes and the Ordinances of the Rajiv Gandhi University in force immediately before the commencement of this Act shall be applicable insofar as they are not inconsistent with the provisions of this Act and the Statutes. **32. Regulations.—The authorities of the University may make Regulations, consistent with this Act,** the Statutes and the Ordinances for the conduct of their own business and that of the Committees, if any, appointed by them and not provided for by this Act, the Statutes or the Ordinances, in the manner prescribed by the Statutes. **33. Annual report.—(1) The annual report of the University shall be prepared under the direction of** the Executive Council, which shall include, among other matters, the steps taken by the University towards the fulfilment of its objects and shall be submitted to the Court on or after such date as may be prescribed by the Statutes and the Court shall consider the report in its annual meeting. (2) The Court shall submit the annual report to the Visitor along with its comments, if any. (3) A copy of the annual report, as prepared under sub-section (1), shall also be submitted to the Central Government, which shall, as soon as may be, cause the same to be laid before both Houses of Parliament. **34. Annual accounts.—(1) The annual accounts and balance-sheet of the University shall be** prepared under the directions of the Executive Council and shall, once at least every year and at intervals of not more than fifteen months, be audited by the Comptroller and Auditor-General of India or by such persons as he may authorise in this behalf. (2) A copy of the annual accounts together with the audit report thereon shall be submitted to the Court and the Visitor along with the observations of the Executive Council. 12 ----- (3) Any observations made by the Visitor on the annual accounts shall be brought to the notice of the Court and the observations of the Court, if any, shall, after being considered by the Executive Council, be submitted to the Visitor. (4) A copy of the annual accounts together with the audit report as submitted to the Visitor, shall also be submitted to the Central Government, which shall, as soon as may be, cause the same to be laid before both Houses of Parliament. (5) The audited annual accounts after having been laid before both Houses of Parliament shall be published in the Official Gazette. **35. Returns and information.—The University shall furnish to the Central Government such returns** or other information with respect to its property or activities as the Central Government may, from time to time, require. **36. Conditions of service of employees.—(1) Every employee of the University shall be appointed** under a written contract, which shall be lodged with the University and a copy of which shall be furnished to the employee concerned. (2) Any dispute arising out of the contract between the University and any employee shall, at the request of the employee, be referred to a Tribunal of Arbitration consisting of one member appointed by the Executive Council, one member nominated by the employee concerned and an umpire appointed by the Visitor. (3) The decision of the Tribunal shall be final, and no suit shall lie in any civil court in respect of the matters decided by the Tribunal: Provided that nothing in this sub-section shall preclude the employee from availing of the judicial remedies available under articles 32 and 226 of the Constitution. (4) Every request made by the employee under sub-section (2), shall be deemed to be a submission to arbitration upon the terms of this section within the meaning of the Arbitration and Conciliation Act, 1996 (26 of 1996). (5) The procedure for regulating the work of the Tribunal shall be prescribed by the Statutes. **37. Procedure of appeal and arbitration in disciplinary cases against students.—(1) Any student** or candidate for an examination whose name has been removed from the rolls of the University by the orders or resolution of the Vice-Chancellor, Discipline Committee or Examination Committee, as the case may be, and who has been debarred from appearing at the examinations of the University for more than one year, may, within ten days of the date of receipt of such orders or copy of such resolution by him, appeal to the Executive Council and the Executive Council may confirm, modify or reverse the decision of the Vice-Chancellor or the Committee, as the case may be. (2) Any dispute arising out of any disciplinary action taken by the University against a student shall, at the request of such student, be referred to a Tribunal of Arbitration and the provisions of sub-sections (2), (3), (4) and (5) of section 36 shall, as far as may be, apply to a reference made under this sub-section. **38. Right to appeal.—Every employee or student of the University or of a College or Institution** maintained by the University or admitted to its privileges shall, notwithstanding anything contained in this Act, have a right to appeal within such time as may be prescribed by the Statutes, to the Executive Council against the decision of any officer or authority of the University or of the Principal or the management of any College or an Institution, as the case may be, and thereupon the Executive Council may confirm, modify or reverse the decision appealed against. **39. Provident and pension funds.—(1) The University shall constitute for the benefit of its** employees such provident or pension fund or provide such insurance schemes as it may deem fit in such manner and subject to such conditions as may be prescribed by the Statutes. (2) Where such provident fund or pension fund has been so constituted, the Central Government may declare that the provisions of the Provident Funds Act, 1925 (19 of 1925), shall apply to such fund, as if it were a Government provident fund. 13 ----- **40. Disputes as to constitution of authorities and bodies.—If any question arises as to whether any** person has been duly elected or appointed as, or is entitled to be, a member of any authority or other body of the University, the matter shall be referred to the Visitor whose decision thereon shall be final. **41. Filling of casual vacancies.—All casual vacancies among the members (other than** _ex officio_ members) of any authority or other body of the University shall be filled, as soon as may be, by the person or body who appoints, elects or co-opts the member whose place has become vacant and person appointed, elected or co-opted to a casual vacancy shall be a member of such authority or body for the residue of the term for which the person whose place he fills would have been a member. **42. Proceedings of authorities or bodies not invalidated by vacancies.—No act or proceedings of** any authority or other body of the University shall be invalid merely by reason of the existence of a vacancy or vacancies among its members. **43. Protection of action taken in good faith.—No suit or other legal proceeding shall lie against any** officer or other employee of the University for anything which is in good faith done or intended to be done in pursuance of any of the provisions of this Act, the Statutes or the Ordinances. **44. Mode of proof of University record.—Notwithstanding anything contained in the Indian** Evidence Act, 1872 (1 of 1872) or in any other law for the time being in force, a copy of any receipt, application, notice, order, proceeding or resolution of any authority or other body of the University, or any other document in possession of the University, or any entry in any register duly maintained by the University, if certified by the Registrar, shall be received as _prima facie evidence of such receipt,_ application, notice, order, proceeding, resolution or document or the existence of entry in the register and shall be admitted as evidence of the matters and transactions therein where the original thereof would, if produced, have been admissible in evidence. **45. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made under this section after the expiry of three years from the commencement of this Act. (2) Every order made under sub-section (1) shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the order or both Houses agree that the order should not be made, the order shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that order. **46. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid** **before Parliament.—(1) Every Statute, Ordinance or Regulation made under this Act shall be published** in the Official Gazette. (2) Every Statute, Ordinance or Regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the Statute, Ordinance or Regulation or both Houses agree that the Statute, Ordinance or Regulation should not be made, the Statute, Ordinance or Regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that Statute, Ordinance or Regulation. 14 ----- (3) The power to make Statutes, Ordinances or Regulations shall include the power to give retrospective effect, from a date not earlier than the date of commencement of this Act, to the Statutes, Ordinances or Regulations or any of them but no retrospective effect shall be given to any Statute, Ordinance or Regulation so as to prejudicially affect the interests of any person to whom such Statute, Ordinance or Regulation may be applicable. **47. Transitional provisions.—Notwithstanding anything contained in this Act and the Statutes,—** (a) the first Chancellor and first Vice-Chancellor shall be appointed by the Central Government in such manner and on such conditions as may be deemed fit and each of the said officer shall hold office for such term, not exceeding five years, as may be specified by the Central Government; (b) the first Registrar and the first Finance Officer shall be appointed by the Central Government and each of the said officers shall hold office for a term of three years; (c) the first Court and the first Executive Council shall consist of not more than thirty-one members and eleven members, respectively, who shall be nominated by the Central Government and shall hold office for a term of three years; (d) the first College Development Council shall consist of not more than eleven members, who shall be nominated by the Central Government and they shall hold office for a term of three years; (e) the first Academic Council shall consist of not more than twenty-one members, who shall be nominated by the Central Government and they shall hold office for a term of three years: Provided that if any vacancy occurs in the above offices or authorities, the same shall be filled by appointment or nomination, as the case may be, by the Central Government, and the person so appointed or nominated shall hold office for so long as the officer or member in whose place he is appointed or nominated would have held office, if such vacancy had not occurred. **48. Repeal of Arunachal Pradesh Act 1 of 1984.—(1) The Rajiv Gandhi University Act, 1984 is** hereby repealed. (2) Notwithstanding such repeal,— (a) all appointments made, orders issued, degrees and other academic distinctions conferred, diplomas and certificates awarded, privileges granted, or other things done under the Rajiv Gandhi University Act, 1984 (Arunachal Pradesh Act 1 of 1984), shall be deemed to have been respectively made, issued, conferred, awarded, granted or done under the corresponding provisions of this Act and, except as otherwise provided by or under this Act or the Statutes, continue in force unless and until they are superseded by any order made under this Act or the Statutes; and (b) all proceedings of Selection Committees for the appointment or promotion of teachers that took place before the commencement of this Act and all actions of the Executive Council in respect of the recommendations of such Selection Committees where no orders of appointment on the basis thereof were passed before the commencement of this Act shall, notwithstanding that the procedure for selection has been modified by this Act, be deemed to have been valid but further proceeding in connection with such pending selections shall be taken in accordance with the provisions of this Act and be continued from the stage where they stood immediately before such commencement, except if the concerned authorities take, with the approval of the Visitor, a decision to the contrary. **49. Amendment of Act 24 of 1973.—In the North-Eastern Hill University Act, 1973,—** (i) in section 1, in sub-section (2), for the words “States of Meghalaya and Arunachal Pradesh”, the words “State of Meghalaya” shall be substituted; (ii) in section 2, in clause (l), for the words “States of Meghalaya and Arunachal Pradesh”, the words “State of Meghalaya” shall be substituted; (iii) in section 6, in sub-section (1), for the words “States of Meghalaya and Arunachal Pradesh”, the words “State of Meghalaya” shall be substituted. 15 ----- THE SCHEDULE (See section 30) THE STATUTES OF THE UNIVERSITY **1. The Chancellor.—(1) The Chancellor shall be appointed by the Visitor from a panel of not less** than three persons recommended by the Executive Council from amongst persons of eminence in the academic or public life of the country: Provided that if the Visitor does not approve of any of the persons so recommended, he may call for fresh recommendations from the Executive Council. (2) The Chancellor shall hold office for a term of five years and shall not be eligible for re appointment: Provided that notwithstanding the expiry of his term of office, the Chancellor shall continue to hold office until his successor enters upon his office. **2. The Vice-Chancellor.—(1) The Vice-Chancellor shall be appointed by the Visitor from a panel of** not less than three persons who shall be recommended by a Committee as constituted under clause (2): Provided that if the Visitor does not approve of any of the persons included in the panel, he may call for an extended fresh panel. (2) The Committee referred to in clause (1) shall consist of three persons, out of whom two shall be nominated by the Executive Council and one by the Visitor and the nominee of the Visitor shall be the convener of the Committee: Provided that none of the members of the Committee shall be an employee of the University or an Institution maintained by, or admitted to the privileges of, the University or a member of any authority of the University. (3) The Vice-Chancellor shall be a whole-time salaried officer of the University. (4) The Vice-Chancellor shall hold office for a term of five years from the date on which he enters upon his office, or until he attains the age of sixty-five years, whichever is earlier, and he shall not be eligible for re-appointment: Provided that notwithstanding the expiry of the said period of five years, he shall continue in office until his successor is appointed and enters upon his office: Provided further that the Visitor may direct any Vice-Chancellor after his term has expired, to continue in office for such period, not exceeding a total period of one year, as may be specified by him. (5) The emoluments and other conditions of service of the Vice-Chancellor shall be as follows:— (i) the Vice-Chancellor shall be paid a monthly salary and allowances, other than house rent allowance, at the rates fixed by the Central Government from time to time and he shall be entitled, without payment of rent, to use a furnished residence throughout his term of office and no charge shall fall on the Vice-Chancellor in respect of the maintenance of such residence; (ii) the Vice-Chancellor shall be entitled to such terminal benefits and allowances as may be fixed by the Central Government from time to time: Provided that where an employee of the University, or a College or an Institution maintained by, or admitted to the privileges of, the University, or of any other University or any College or Institution maintained by or admitted to the privileges of, such other University, is appointed as the Vice-Chancellor, he may be allowed to continue to contribute to any provident fund of which he is a member and the University shall contribute to the account of such person in that provident fund at the same rate at which the person had been contributing immediately before his appointment as the Vice-Chancellor: 16 ----- Provided further that where such employee had been member of any pension scheme, the University shall make the necessary contribution to such scheme. (iii) The Vice-Chancellor shall be entitled to travelling allowance at such rates as may be fixed by the Executive Council. (iv) The Vice-Chancellor shall be entitled to leave on full pay at the rate of thirty days in a calendar year and the leave shall be credited to his account in advance in two half-yearly in stalments of fifteen days each on the first day of January and July every year: Provided that if the Vice-Chancellor assumes or relinquishes charge of the office of the Vice-Chancellor during the currency of a half year, the leave shall be credited proportionately at the rate of two and-a-half days for each completed month of service. (v) In addition to the leave referred to in sub-clause (iv), the Vice-Chancellor shall also be entitled to half-pay leave at the rate of twenty days for each completed year of service, and half-pay leave may also be availed of as commuted leave on full pay on medical certificate: Provided that when such commuted leave is availed of, twice the amount of half-pay leave shall be debited against half-pay leave due. (6) If the office of the Vice-Chancellor becomes vacant due to death, resignation or otherwise, or if he is unable to perform his duties due to ill-health or any other cause, the Pro-Vice-Chancellor shall perform the duties of the Vice-Chancellor: Provided that if the Pro-Vice-Chancellor is not available, the senior-most Professor shall perform the duties of the Vice-Chancellor until a new Vice-Chancellor assumes office or the existing Vice-Chancellor resumes the duties of his office, as the case may be. **3. Powers and duties of the Vice-Chancellor.—(1) The Vice-Chancellor shall be** _ex officio_ Chairman of the Executive Council, the Academic Council and the Finance Committee and shall, in the absence of the Chancellor, preside at the Convocations held for conferring degrees and at meetings of the Court. (2) The Vice-Chancellor shall be entitled to be present at, and address, any meeting of any authority or other body of the University, but shall not be entitled to vote thereat unless he is a member of such authority or body. (3) It shall be the duty of the Vice-Chancellor to see that this Act, the Statutes, the Ordinances and the Regulations are duly observed and he shall have all the powers necessary to ensure such observance. (4) The Vice-Chancellor shall have all the powers necessary for the proper maintenance of discipline in the University and he may delegate any such powers to such person or persons as he deems fit. (5) The Vice-Chancellor shall have the power to convene or cause to be convened the meetings of the Executive Council, the Academic Council and the Finance Committee. **4. Pro-Vice-Chancellor.—(1) The Pro-Vice-Chancellor shall be appointed by the Executive Council** on the recommendation of the Vice-Chancellor: Provided that where the recommendation of the Vice-Chancellor is not accepted by the Executive Council, the matter shall be referred to the Visitor who may either appoint the person recommended by the Vice-Chancellor or ask the Vice-Chancellor to recommend another person to the Executive Council: Provided further that the Executive Council may, on the recommendation of the Vice-Chancellor, appoint a Professor to discharge the duties of a Pro-Vice-Chancellor in addition to his own duties as a Professor. (2) The term of office of a Pro-Vice-Chancellor shall be such as may be decided by the Executive Council but it shall not in any case exceed five years or until the expiration of the term of office of the Vice-Chancellor, whichever is earlier: Provided that a Pro-Vice-Chancellor whose term of office has expired shall be eligible for re-appointment: 17 ----- Provided further that, in any case, a Pro-Vice-Chancellor shall retire on attaining the age of sixty-five years: Provided also that a Pro-Vice-Chancellor shall, while discharging the duties of the Vice-Chancellor under clause (6) of Statute 2, continue in office notwithstanding the expiration of his term of office as Pro-Vice-Chancellor, until the Vice-Chancellor resumes office or a new Vice-Chancellor assumes office, as the case may be. (3) The emoluments and other terms and conditions of service of a Pro-Vice-Chancellor shall be such as may be prescribed by the Ordinances. (4) The Pro-Vice-Chancellor shall assist the Vice-Chancellor in respect of such matters as may be specified by the Vice-Chancellor in this behalf, from time to time, and shall also exercise such powers and perform such duties as may be assigned or delegated to him by the Vice-Chancellor. **5. Deans of Faculties.—(1) Every Dean of Faculty shall be appointed by the Vice-Chancellor from** amongst the Professors in the Faculty by rotation in the order of seniority for a period of three years: Provided that in case there is only one Professor or no Professor in a Faculty, the Dean shall be appointed, for the time being, from amongst the Professor, if any, and the Readers in the Faculty by rotation in the order of seniority: Provided further that a Dean on attaining the age of sixty-two years shall cease to hold office as such. (2) When the office of the Dean is vacant or when the Dean is, by reason of illness, absence or any other cause, unable to perform duties of his office, the duties of the office shall be performed by the senior-most Professor or Reader, as the case may be, in the Faculty. (3) The Dean shall be the Head of the Faculty and shall be responsible for the conduct and maintenance of the standards of teaching and research in the Faculty and shall have such other functions as may be prescribed by the Ordinances. (4) The Dean shall have the right to be present and to speak at any meeting of the Boards of Studies or Committees of the Faculty, as the case may be, but shall not have the right to vote thereat unless he is a member thereof. **6. The Registrar.—(1) The Registrar shall be appointed by the Executive Council on the** recommendation of a Selection Committee constituted for the purpose and shall be a whole-time salaried officer of the University. (2) He shall be appointed for a term of five years and shall be eligible for re-appointment. (3) The emoluments and other terms and conditions of service of the Registrar shall be such as may be prescribed by the Executive Council from time to time: Provided that the Registrar shall retire on attaining the age of sixty-two years: Provided further that a Registrar shall, notwithstanding his attaining the age of sixty-two years, continue in office until his successor is appointed and enters upon his office or until the expiry of a period of one year, whichever is earlier. (4) When the office of the Registrar is vacant or when the Registrar is, by reason of illness, absence or any other cause, unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) (a) The Registrar shall have power to take disciplinary action against such of the employees, excluding teachers and other academic staff, as may be specified in the order of the Executive Council and to suspend them pending inquiry, to administer warnings to them or to impose on them the penalty of censure or the withholding of increment: Provided that no such penalty shall be imposed unless the person has been given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. 18 ----- (b) An appeal shall lie to the Vice-Chancellor against any order of the Registrar imposing any of the penalties specified in sub-clause (a). (c) In a case where the inquiry discloses that a punishment beyond the power of the Registrar is called for, the Registrar shall, upon the conclusion of the inquiry, make a report to the Vice-Chancellor along with his recommendations: Provided that an appeal shall lie to the Executive Council against an order of the Vice-Chancellor imposing any penalty. (6) The Registrar shall be ex officio Secretary of the Executive Council, the Academic Council and the College Development Council, but shall not be deemed to be a member of any of these authorities and he shall be ex officio Member-Secretary of the Court. (7) It shall be the duty of the Registrar— (a) to be the custodian of the records, the common seal and such other property of the University as the Executive Council shall commit to his charge; (b) to issue all notices convening meetings of the Court, the Executive Council, the Academic Council, the College Development Council and of any Committees appointed by those authorities; (c) to keep the minutes of all the meetings of the Court, the Executive Council, the Academic Council, the College Development Council and of any Committees appointed by those authorities; (d) to conduct the official correspondence of the Court, the Executive Council, the Academic Council and the College Development Council; (e) to supply to the Visitor, copies of the agenda of the meetings of the authorities of the University as soon as they are issued and the minutes of such meetings; (f) to represent the University in suits or proceedings by or against the University, sign powers of attorney and verify pleadings or depute his representative for the purpose; and (g) to perform such other duties as may be specified in the Statutes, the Ordinances or the Regulations or as may be required from time to time, by the Executive Council or the ViceChancellor. **7. The Finance Officer.—(1) The Finance Officer shall be appointed by the Executive Council on** the recommendations of a Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. (2) The Finance Officer shall be appointed for a term of five years and shall be eligible for re-appointment. (3) The emoluments and other terms and conditions of service of the Finance Officer shall be such as may be prescribed by the Executive Council from time to time: Provided that the Finance Officer shall retire on attaining the age of sixty-two years: Provided further that the Finance Officer shall, notwithstanding his attaining the age of sixty-two years, continue in office until his successor is appointed and enters upon his office or until the expiry of a period of one year, whichever is earlier. (4) When the office of the Finance Officer is vacant or when the Finance Officer is, by reason of illness, absence or any other cause, unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) The Finance Officer shall be _ex officio Secretary of the Finance Committee, but shall not be_ deemed to be a member of such Committee. (6) The Finance Officer shall— (a) exercise general supervision over the funds of the University and shall advise it as regards its financial policy; and 19 ----- (b) perform such other financial functions as may be assigned to him by the Executive Council or as may be prescribed by the Statutes or the Ordinances. (7) Subject to the control of the Executive Council, the Finance Officer shall— (a) hold and manage the property and investments of the University including trust and endowed property; (b) ensure that the limits fixed by the Executive Council for recurring and non-recurring expenditure for a year are not exceeded and that all moneys are expended on the purpose for which they are granted or allotted; (c) be responsible for the preparation of annual accounts and the budget of the University and for their presentation to the Executive Council; (d) keep a constant watch on the state of the cash and bank balances and on the state of investments; (e) watch the progress of the collection of revenue and advise on the methods of collection employed; (f) ensure that the registers of buildings, land, furniture and equipment are maintained up-to-date and that stock-checking is conducted, of equipment and other consumable materials in all offices, Departments, University, Institutes, Centres and Specialised Laboratories; (g) bring to the notice of the Vice-Chancellor unauthorised expenditure and other financial irregularities and suggest disciplinary action against persons at fault; and (h) call for from any office, Department, Centre, Laboratory, College or Institution maintained by the University any information or returns that he may consider necessary for the performance of his duties. (8) Any receipt given by the Finance Officer or the person or persons duly authorised in this behalf by the Executive Council for any money payable to the University shall be sufficient discharge for payment of such money. **8. The Controller of Examinations.—(1) The Controller of Examinations shall be appointed by the** Executive Council on the recommendations of a Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. (2) The Controller of Examinations shall be appointed for a term of five years and shall be eligible for re-appointment. (3) The emoluments and other terms and conditions of service of the Controller of Examinations shall be such as may be prescribed by the Executive Council from time to time: Provided that the Controller of Examinations shall retire on attaining the age of sixty-two years: Provided further that the Controller of Examinations shall, notwithstanding his attaining the age of sixty-two years, continue in office until his successor is appointed and enters upon his office or until the expiry of a period of one year, whichever is earlier. (4) When the office of the Controller of Examinations is vacant or when the Controller of Examinations is, by reason of illness, absence or any other cause, unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) The Controller of Examinations shall arrange for and superintend the examinations of the University in the manner prescribed by the Ordinances. **9. The Librarian.—(1) The Librarian shall be appointed by the Executive Council on the** recommendations of the Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. 20 ----- (2) The Librarian shall exercise such powers and perform such duties as may be assigned to him by the Executive Council. **10. Meetings of the Court.—(1) An annual meeting of the Court shall be held on a date to be fixed** by the Executive Council unless some other date has been fixed by the Court in respect of any year. (2) At an annual meeting of the Court, a report on the working of the University during the previous year, together with a statement of the receipts and expenditure, the balance-sheet as audited, and the financial estimates for the next year shall be presented. (3) A copy of the statement of receipts and expenditure, the balance-sheet and the financial estimates referred to in clause (2) shall be sent to every member of the Court at least seven days before the date of the annual meeting. (4) Special meetings of the Court may be convened by the Executive Council or the Vice-Chancellor or if there is no Vice-Chancellor, the Pro-Vice-Chancellor or if there is no Pro-Vice-Chancellor, by the Registrar. (5) Eleven members of the Court shall form a quorum for a meeting of the Court. **11. Quorum for meeting of the Executive Council.—Seven members of the Executive Council** shall form a quorum for a meeting of the Executive Council. **12. Powers and functions of the Executive Council.—(1) The Executive Council shall have the** power of management and administration of the revenues and property of the University and the conduct of all administrative affairs of the University not otherwise provided for. (2) Subject to the provisions of this Act, the Statutes and the Ordinances, the Executive Council shall, in addition to all other powers vested in it, have the following powers, namely:— (i) to create teaching and other academic posts, to determine the number and emoluments of such posts and to define the duties and conditions of service of Professors, Readers, Lecturers and other academic staff: Provided that no action shall be taken by the Executive Council in respect of the number and qualifications of teachers and other academic staff otherwise than after consideration of the recommendations of the Academic Council; (ii) to appoint such Professors, Readers, Lecturers and other academic staff, as may be necessary, on the recommendation of the Selection Committee constituted for the purpose and to fill-up temporary vacancies therein; (iii) to recognise persons as University recognised teachers in the manner prescribed by the Ordinances; (iv) to create administrative, ministerial and other necessary posts (including Chairs) and to make appointments thereto in the manner prescribed by the Ordinances; (v) to grant leave of absence to any officer of the University other than the Chancellor and the Vice-Chancellor, and to make necessary arrangements for the discharge of the functions of such officer during his absence; (vi) to regulate and enforce discipline among employees in accordance with the Statutes and the Ordinances; (vii) to manage and regulate the finances, accounts, investments, property, business and all other administrative affairs of the University and for that purpose to appoint such agents as it may think fit; (viii) to fix limits on the total recurring and the total non-recurring expenditure for a year on the recommendation of the Finance Committee; (ix) to invest any money belonging to the University, including any unapplied income, in such stocks, funds, shares or securities, from time to time as it may think fit or in the purchase of immovable property in India, with the like powers of varying such investment from time to time; 21 ----- (x) to transfer or accept transfers of any movable or immovable property on behalf of the University; (xi) to provide buildings, premises, furniture and apparatus and other means needed for carrying on the work of the University; (xii) to enter into, vary, carry out and cancel contracts on behalf of the University; (xiii) to entertain, adjudicate upon, and if thought fit, to redress any grievances of the employees and students of the University who may, for any reason, feel aggrieved; (xiv) to appoint examiners and moderators and, if necessary, to remove them, and to fix their fees, emoluments and travelling and other allowances, after consulting the Academic Council; (xv) to select a common seal for the University and provide for the custody and use of such seal; (xvi) to make such special arrangements as may be necessary for the residence of women students; (xvii) to institute fellowships, scholarships, studentships, medals and prizes; (xviii) to provide for the appointment of Visiting Professors, Emeritus Professors, Consultants and Scholars and determine the terms and conditions of such appointments; and (xix) to exercise such other powers and perform such other duties as may be conferred or imposed on it by the Act or the Statutes. **13. Quorum for meetings of the Academic Council.—Nine members of the Academic Council** shall form a quorum for a meeting of the Academic Council. **14. Powers and functions of the Academic Council.—Subject to the provisions of this Act, the** Statutes and the Ordinances, the Academic Council shall, in addition to all other powers vested in it, have the following powers, namely:— (a) to exercise general supervision over the academic policies of the University and to give directions regarding methods of instruction, co-ordination of teaching among the Colleges and the Institutions, evaluation of research and improvement of academic standards; (b) to bring about and promote inter-Faculty co-ordination and to establish or appoint such committees or boards as may be deemed necessary for the purpose; (c) to consider matters of general academic interest either on its own initiative, or on a reference by a Faculty or the Executive Council, and to take appropriate action thereon; and (d) to frame such Regulations and rules consistent with the Statutes and the Ordinances regarding the academic functioning of the University, discipline, residence, admissions, award of fellowships and studentships, fees, concessions, corporate life and attendance. **15. Faculties and Departments.—(1) The University shall have such Faculties as may be specified** in the Statutes. (2) Every Faculty shall have a Faculty Board and the members of the first Faculty Board shall be nominated by the Executive Council for a period of three years. (3) The composition, powers and functions of a Faculty Board shall be prescribed by the Ordinances. (4) The conduct of the meetings of a Faculty Board and the quorum required for such meetings shall be prescribed by the Ordinances. (5) (a) Every Faculty shall consist of such Departments as may be assigned to it by the Ordinances: Provided that the Executive Council may, on the recommendation of the Academic Council, establish Centres of Studies to which may be assigned such teachers of the University as the Executive Council may consider necessary. 22 ----- (b) Each Department shall consist of the following members, namely:— (i) Teachers of the Department; (ii) Persons conducting research in the Department; _(iii) Dean of the Faculty;_ (iv) Honorary Professors, if any, attached to the Department; and (v) Such other persons as may be members of the Department in accordance with the provisions of the Ordinances. **16. Board of Studies.—(1) Each Department shall have a Board of Studies.** (2) The constitution of the Board of Studies and the term of office of its members shall be prescribed by the Ordinances. (3) Subject to the overall control and supervision of the Academic Council, the functions of a Board of Studies shall be to approve subjects for research for various degrees and other requirements of research degrees and to recommend to the concerned Faculty Board in the manner prescribed by the Ordinances— (a) courses of studies and appointment of examiners for courses, but excluding research degrees; (b) appointment of supervisors for research; and (c) measures for the improvement of the standard of teaching and research: Provided that the above functions of a Board of Studies shall, during the period of three years immediately after the commencement of the Act, be performed by the Department. **17. The Finance Committee.—(1) The Finance Committee shall consist of the following members,** namely:— (i) the Vice-Chancellor; (ii) the Pro-Vice-Chancellor; (iii) one person to be nominated by the Court; (iv) three persons to be nominated by the Executive Council, out of whom at least one shall be a member of the Executive Council; and (v) three persons to be nominated by the Visitor. (2) Five members of the Finance Committee shall form a quorum for a meeting of the Finance Committee. (3) All the members of the Finance Committee, other than ex officio members, shall hold office for a term of three years. (4) A member of the Finance Committee shall have the right to record a minute of dissent if he does not agree with any decision of the Finance Committee. (5) The Finance Committee shall meet at least thrice every year to examine the accounts and to scrutinise proposals for expenditure. (6) All proposals relating to creation of posts, and those items which have not been included in the Budget, shall be examined by the Finance Committee before they are considered by the Executive Council. (7) The annual accounts and the financial estimates of the University prepared by the Finance Officer shall be laid before the Finance Committee for consideration and comments and thereafter submitted to the Executive Council for approval. (8) The Finance Committee shall recommend limits for the total recurring expenditure and the total non-recurring expenditure for the year, based on the income and resources of the University (which, in the case of productive works, may include the proceeds of loans). 23 ----- **18. Selection Committees.—(1) There shall be Selection Committees for making recommendations** to the Executive Council for appointment to the posts of Professor, Reader, Lecturer, Registrar, Finance Officer, Librarian and Principals of Colleges and Institutions maintained by the University. (2) The Selection Committee for appointment to the posts specified in Column 1 of the Table below shall consist of the Vice-Chancellor, a nominee of the Visitor and the persons specified in the corresponding entry in Column 2 of the said Table: TABLE 1 2 Professor (i) The Dean of the Faculty. (ii) The Head of the Department if he is a Professor. (iii) Three persons not in the service of the University, nominated by the Executive Council, out of a panel of names recommended by the Academic Council for their special knowledge of, or interest in, the subject with which the Professor will be concerned. Reader/Lecturer (i) The Head of the Department. (ii) One Professor nominated by the ViceChancellor. (iii) Two persons not in the service of the University, nominated by the Executive Council, out of a panel of names recommended by the Academic Council for their special knowledge of, or interest in, the subject with which the Reader/Lecturer will be concerned. Registrar/Finance Officer (i) Two members of the Executive Council nominated by it. (ii) One person not in the service of the University nominated by the Executive Council. Librarian (i) Two persons not in the service of the University who have special knowledge of the subject of the Library Science/Library Administration nominated by the Executive Council. (ii) One person not in the service of the University nominated by the Executive Council. Principal of College or Institution maintained by the University. Three persons not in the service of the University Institution maintained of whom two shall be nominated by the Executiveby the University. Council and one by the Academic Council for their special knowledge of, or interest in, a subject in which instruction is being provided by the College or Institution. 24 ----- _Note 1.—Where the appointment is being made for an inter-disciplinary project, the head of the_ project shall be deemed to be the Head of the Department concerned. _Note 2.—The Professor to be nominated by the Vice-Chancellor shall be a Professor concerned with_ the speciality for which the selection is being made and the Vice-Chancellor shall consult the Head of the Department and the Dean of Faculty before nominating the Professor. (3) The Vice-Chancellor, or in his absence the Pro-Vice-Chancellor, shall convene and preside at the meeting of the Selection Committee: Provided that the meeting of the Selection Committee shall be fixed after prior consultation with, and subject to the convenience of Visitor's nominee and the experts nominated by the Executive Council: Provided further that the proceedings of the Selection Committee shall not be valid unless,— (a) where the number of Visitor's nominee and the persons nominated by the Executive Council is four in all, at least three of them attend the meeting; and (b) where the number of Visitor's nominee and the persons nominated by the Executive Council is three in all, at least two of them attend the meeting. (4) The procedure to be followed by the Selection Committee shall be laid down in the Ordinances. (5) If the Executive Council is unable to accept the recommendations made by the Selection Committee, it shall record its reasons and submit the case to the Visitor for final orders. (6) Appointments to temporary posts shall be made in the manner indicated below:— (i) If the temporary vacancy is for duration longer than one academic session, it shall be filled on the advice of the Selection Committee in accordance with the procedure indicated in the foregoing clauses: Provided that if the Vice-Chancellor is satisfied that in the interests of work it is necessary to fill the vacancy, the appointment may be made on a purely temporary basis on the advice of a local Selection Committee referred to in sub-clause (ii) for a period not exceeding six months. (ii) If the temporary vacancy is for a period less than a year, an appointment to such vacancy shall be made on the recommendation of a local Selection Committee consisting of the Dean of the Faculty concerned, the Head of the Department and a nominee of the Vice-Chancellor: Provided that if the same person holds the offices of the Dean and the Head of the Department, the Selection Committee may contain two nominees of the Vice-Chancellor: Provided further that in the case of sudden casual vacancies of teaching posts caused by death or any other reason, the Dean may, in consultation with the Head of the Department concerned, make a temporary appointment for a month and report to the Vice-Chancellor and the Registrar about such appointment. (iii) No teacher appointed temporarily shall, if he is not recommended by a regular Selection Committee for appointment under the Statutes, be continued in service on such temporary employment, unless he is subsequently selected by a local Selection Committee or a regular Selection Committee, for a temporary or permanent appointment, as the case may be. **19. Special mode of appointment.—(1) Notwithstanding anything contained in Statute 18, the** Executive Council may invite a person of high academic distinction and professional attainments to accept a post of Professor or any other equivalent academic post in the University on such terms and conditions as it deems fit and on the person agreeing to do so appoint him to the post. (2) The Executive Council may appoint a teacher or any other academic staff working in any other University or organisation for undertaking a joint project in accordance with the manner laid down in the Ordinances. 25 ----- **20. Appointment for a fixed tenure.—The Executive Council may appoint a person selected in** accordance with the procedure laid down in Statute 18 for a fixed tenure on such terms and conditions as it deems fit. **21. Recognised teachers.—(1) The qualifications of recognised teachers shall be such as may be** prescribed by the Ordinances. (2) All applications for the recognition of teachers shall be made in such manner as may be laid down by the Ordinances. (3) No teacher shall be recognised as a teacher except on the recommendation of a Selection Committee constituted for the purpose in the manner laid down in the Ordinances. (4) The period of recognition of a teacher shall be determined by the Ordinances made in that behalf. (5) The Academic Council may, by a special resolution passed by a majority of not less than two thirds of the members present and voting, withdraw recognition from a teacher: Provided that no such resolution shall be passed until notice in writing has been given to the person concerned calling upon him to show cause, within such time as may be specified in the notice, why such resolution should not be passed and until his objections, if any, and any evidence he may produce in support of them have been considered by the Academic Council. **22. Approved teachers.—The qualifications, manner of recognising, and withdrawal of recognition,** of approved teachers shall be such as may be prescribed by the Ordinances. **23. Committees.—(1) An authority of the University may appoint as many standing or special** Committees as it may deem fit, and may appoint to such Committees persons who are not members of such authority. (2) A Committee appointed under clause (1) may deal with any subject delegated to it subject to subsequent confirmation by the authority appointing it. **24. Terms and conditions of service and code of conduct of the teachers, etc.—(1) All the** teachers and other academic staff of the University shall, in the absence of any agreement to the contrary, be governed by the terms and conditions of service and code of conduct as are specified in the Statutes, the Ordinances and the Regulations. (2) The emoluments of members of the academic staff shall be such as may be prescribed by the Ordinances. (3) Every teacher and member of the academic staff of the University shall be appointed on a written contract, the form of which shall be prescribed by the Ordinances. (4) A copy of every contract referred to in clause (3) shall be deposited with the Registrar. **25. Terms and conditions of service and code of conduct of other employees.—(1) All the** employees of the University, other than the teachers and other academic staff shall, in the absence of any contract to the contrary, be governed by the terms and conditions of service and code of conduct as are specified in the Statutes, the Ordinances and the Regulations. (2) The manner of appointment and emoluments of employees, other than the teachers and other academic staff, shall be such as may be prescribed by the Ordinances. **26. Seniority list.—(1) Whenever, in accordance with the Statutes, any person is to hold an office or** be a member of an authority of the University by rotation according to seniority, such seniority shall be determined according to the length of continuous service of such person in his grade and in accordance with such other principles as the Executive Council may, from time to time, prescribe. (2) It shall be the duty of the Registrar to prepare and maintain in respect of each class of persons to whom the provisions of these Statutes apply, a complete and up-to-date seniority list in accordance with the provisions of clause (1). 26 ----- (3) If two or more persons have equal length of continuous service in a particular grade or the relative seniority of any person or persons is otherwise in doubt, the Registrar may, on his own motion and shall, at the request of any such person, submit the matter to the Executive Council whose decision thereon shall be final. **27. Removal of employees of the University.—(1) Where there is an allegation of misconduct** against a teacher, a member of the academic staff or other employee of the University, the ViceChancellor, in the case of the teacher or a member of the academic staff, and the authority competent to appoint (hereinafter referred to as the appointing authority) in the case of other employee may, by order in writing, place such teacher, member of the academic staff or other employee, as the case may be, under suspension and shall forthwith report to the Executive Council the circumstances in which the order was made: Provided that the Executive Council may, if it is of the opinion, that the circumstances of the case do not warrant the suspension of the teacher or a member of the academic staff, revoke such order. (2) Notwithstanding anything contained in the terms of the contract of appointment or of any other terms and conditions of service of the employees, the Executive Council in respect of teachers and other academic staff, and the appointing authority in respect of other employees, shall have the power to remove a teacher or a member of the academic staff or other employee, as the case may be, on grounds of misconduct. (3) Save as aforesaid, the Executive Council, or as the case may be, the appointing authority, shall not be entitled to remove any teacher, member of the academic staff or other employee except for a good cause and after giving three months' notice or on payment of three months' salary in lieu thereof. (4) No teacher, member of the academic staff or other employee shall be removed under clause (2) or clause (3) unless he has been given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. (5) The removal of a teacher, member of the academic staff or other employee shall take effect from the date on which the order of removal is made: Provided that where the teacher, member of the academic staff or other employee is under suspension at the time of his removal, such removal shall take effect from the date on which he was placed under suspension. (6) Notwithstanding anything contained in the foregoing provisions of this Statute, a teacher, member of the academic staff or other employee may resign,— (a) if he is a permanent employee, only after giving three months' notice in writing to the Executive Council or the appointing authority, as the case may be, or by paying three months' salary in lieu thereof; (b) if he is not a permanent employee, only after giving one month's notice in writing to the Executive Council or, as the case may be, the appointing authority or by paying one month's salary in lieu thereof: Provided that such resignation shall take effect only on the date on which the resignation is accepted by the Executive Council or the appointing authority, as the case may be. **28. Honorary degrees.—(1) The Executive Council may, on the recommendation of the Academic** Council and by a resolution passed by a majority of not less than two-thirds of the members present and voting, make proposals to the Visitor for the conferment of honorary degrees: Provided that in case of emergency, the Executive Council may, on its own motion, make such proposals. (2) The Executive Council may, by a resolution passed by a majority of not less than two-thirds of the members present and voting, withdraw, with the previous sanction of the Visitor, any honorary degree conferred by the University. 27 ----- **29. Withdrawal of degrees, etc.—The Executive Council may, by a special resolution passed by a** majority of not less than two-thirds of the members present and voting, withdraw any degree or academic distinction conferred on, or any certificate or diploma granted to, any person by the University for good and sufficient cause: Provided that no such resolution shall be passed until a notice in writing has been given to that person calling upon him to show cause within such time as may be specified in the notice why such a resolution should not be passed and until his objections, if any, and any evidence he may produce in support of them, have been considered by the Executive Council. **30. Maintenance of discipline among students of the University.—(1) All powers relating to the** maintenance of discipline and disciplinary action in relation to the students of the University shall vest in the Vice-Chancellor. (2) There shall be a Proctor of the University to assist the Vice-Chancellor in the exercise of the powers referred to in clause (1), who shall be appointed by the Executive Council from amongst the Professors and Readers in the manner prescribed by the Ordinances. (3) The Vice-Chancellor may delegate all or any of the powers referred to in clause (1), as he deems proper, to the Proctor and to such other officers as he may specify in this behalf. (4) Without prejudice to the generality of his powers relating to the maintenance of discipline and taking such action, as may seem to him appropriate for the maintenance of discipline, the Vice-Chancellor may, in exercise of such powers, by order, direct that any student or students be expelled or rusticated, for a specified period, or be not admitted to a course or courses of study in a College, Institution or Department or a Faculty of the University for a stated period, or be punished with fine for an amount to be specified in the order, or be debarred from taking an examination or examinations conducted by the University, College, Institution or Department or a Faculty for one or more years, or that the results of the student or students concerned in the examination or examinations in which he or they have appeared be cancelled. (5) The Principals of Colleges, Institutions, Deans of Faculties and Heads of teaching Departments in the University shall have the authority to exercise all such disciplinary powers over the students in their respective Colleges, Institutions, Faculties and teaching Departments in the University, as may be necessary for the proper conduct of such Colleges, Institutions, Faculties and teaching Departments. (6) Without prejudice to the powers of the Vice-Chancellor and the Principal and other persons specified in clause (5), detailed rules of discipline and proper conduct shall be made by the University. The Principals of Colleges, Institutions, Deans of Faculties and Heads of teaching Departments in the University may also make such supplementary rules as they deem necessary for the purposes stated therein. (7) At the time of admission, every student shall be required to sign a declaration to the effect that he submits himself to the disciplinary jurisdiction of the Vice-Chancellor and other authorities of the University. **31. Maintenance of discipline among students of Colleges or an Institution not maintained by** **University.—All powers relating to discipline and disciplinary action in relation to students of a College** or an Institution not maintained by the University, shall vest in the Principal of the College or Institution, as the case may be, in accordance with the procedure prescribed by the Ordinances. **32. Admission of Colleges, etc., to the privileges of the University.—(1) Colleges and other** Institutions situated within the jurisdiction of the University may be admitted to such privileges of the University as the Executive Council and the College Development Council may decide on the following conditions, namely:— (i) Every such College or Institution shall have a regularly constituted Governing Body, consisting of not more than fifteen persons approved by the Executive Council and including among others, two teachers of the University to be nominated by the Executive Council and three representatives of the teaching staff of whom the Principal of the College or Institution shall be one. 28 ----- The procedure for appointment of members of the Governing Body and other matters affecting the management of a College or an Institution shall be prescribed by the Ordinances: Provided that the said condition shall not apply in the case of Colleges and Institutions maintained by Government which shall, however, have an Advisory Committee consisting of not more than fifteen persons which shall consist of among others, three teachers including the Principal of the College or Institution, and two teachers of the University nominated by the Executive Council. (ii) Every such College or Institution shall satisfy the Executive Council and the College Development Council on the following matters, namely:— (a) the suitability and adequacy of its accommodation and equipment for teaching; (b) the qualifications and adequacy of its teaching staff and the conditions of their service; (c) the arrangements for the residence, welfare, discipline and supervision of students; (d) the adequacy of financial provision made for the continued maintenance of the College or Institution; and (e) such other matters as are essential for the maintenance of the standards of University education. (iii) No College or Institution shall be admitted to any privileges of the University except on the recommendation of the Academic Council made after considering the report of a Committee of Inspection appointed for the purpose by the Academic Council. (iv) Colleges and Institutions desirous of admission to any privileges of the University shall be required to intimate their intention to do so in writing so as to reach the Registrar not later than the 15th August, preceding the year from which permission applied for is to have effect. (v) A College or an Institution shall not, without the previous permission of the Executive Council, College Development Council and the Academic Council, suspend instruction in any subject or course of study which it is authorised to teach and teaches. (2) Appointment to the teaching staff and Principal of Colleges or Institutions admitted to the privileges of the University shall be made in the manner prescribed by the Ordinances: Provided that nothing in this clause shall apply to Colleges and Institutions maintained by Government. (3) The service conditions of the administrative and other non-academic staff of every College or Institution referred to in clause (2) shall be such as may be laid down in the Ordinances: Provided that nothing in this clause shall apply to Colleges and Institutions maintained by Government. (4) Every College or Institution admitted to the privileges of the University shall be inspected at least once in every two academic years by a Committee appointed by the Academic Council, and the report of the Committee shall be submitted to the Academic Council, which shall forward the same to the College Development Council and Executive Council with such recommendations as it may deem fit to make. (5) The College Development Council and the Executive Council, after considering the report and the recommendations, if any, of the Academic Council, shall forward a copy of the report to the Governing Body of the College or Institution with such remarks, if any, as they may deem fit for suitable action. (6) The Executive Council may, after consulting the College Development Council and Academic Council, withdraw any privileges granted to a College or an Institution, at any time it considers that the College or Institution does not satisfy any of the conditions on the fulfilment of which the College or Institution was admitted to such privileges: Provided that before any privileges are so withdrawn, the Governing Body of the College or Institution concerned shall be given an opportunity to represent to the Executive Council as to why such action should not be taken. 29 ----- (7) Subject to the conditions set forth in clause (1), the Ordinances may prescribe— (i) such other conditions as may be considered necessary; and (ii) the procedure for the admission of Colleges and Institutions to the privileges of the University and for the withdrawal of those privileges. **33. Convocations.—Convocations of the University for the conferring of degrees or for other** purposes shall be held in such manner as may be prescribed by the Ordinances. **34. Acting Chairman of meetings.—Where no provision is made for a President or Chairman to** preside over a meeting of any authority of the University or any Committee of such authority or when the President or Chairman so provided for is absent, the members present shall elect one from among themselves to preside at such meeting. **35. Resignation.—Any member, other than an ex officio member of the Court, the Executive** Council, the Academic Council or any other authority of the University or any Committee of such authority may resign by letter addressed to the Registrar and the resignation shall take effect as soon as such letter is received by the Registrar. **36. Disqualifications.—(1) A person shall be disqualified for being chosen as, and for being, a** member of any of the authorities of the University— (i) if he is of unsound mind; (ii) if he is an undischarged insolvent; (iii) if he has been convicted by a court of law of an offence involving moral turpitude and sentenced in respect thereof to imprisonment for not less than six months. (2) If any question arises as to whether a person is or had been subjected to any of the disqualifications mentioned in clause (1), the question shall be referred to the Visitor and his decision shall be final and no suit or other proceeding shall lie in any civil court against such decision. **37. Residence condition for membership and office.—Notwithstanding anything contained in the** Statutes, a person who is not ordinarily resident in India shall not be eligible to be an officer of the University or a member of any authority of the University. **38. Membership of authorities by virtue of membership of other bodies.—Notwithstanding** anything contained in the Statutes, a person who holds any post in the University or is a member of any authority or body of the University in his capacity as a member of a particular authority or body or as the holder of a particular appointment shall hold such office or membership only for so long as he continues to be a member of that particular authority or body or the holder of that particular appointment, as the case may be. **39. Alumni Association.—(1) There shall be an Alumni Association for the University.** (2) The subscription for membership of the Alumni Association shall be prescribed by the Ordinances. (3) No member of the Alumni Association shall be entitled to vote or stand for election unless he has been a member of the Association for at least one year prior to the date of election and is a degree holder of the University of at least five years standing: Provided that the condition relating to the completion of one year's membership shall not apply in the case of the first election. **40. Students' Council.—(1) There shall be constituted in the University, a Students' Council for** every academic year, consisting of— (i) the Dean of Students' Welfare who shall be the Chairman of the Students' Council; (ii) twenty students to be nominated by the Academic Council on the basis of merit in studies, sports and extra-curricular activities; and 30 ----- (iii) such number of elected representatives of students as may be specified by the Academic Council: Provided that any student of the University shall have the right to bring up any matter concerning the University before the Students' Council if so permitted by the Chairman, and he shall have the right to participate in the discussions at any meeting when the matter is taken up for consideration. (2) The functions of the Students' Council shall be to make suggestions to the appropriate authorities of the University in regard to the programmes of studies, students’ welfare and other matters of importance, in regard to the working of the University in general and such suggestions shall be made on the basis of consensus of opinion. (3) The Students' Council shall meet at least once in an academic year preferably in the beginning of that year. **41. Ordinances, how made.—(1) The first Ordinances made under sub-section (2) of section 31 may** be amended, repealed or added to at any time by the Executive Council in the manner specified in the following clauses. (2) No Ordinance in respect of the matters enumerated in sub-section (1) of section 31 shall be made by the Executive Council unless a draft of such Ordinance has been proposed by the Academic Council. (3) The Executive Council shall not have power to amend any draft of any Ordinance proposed by the Academic Council under clause (2), but may reject the proposal or return the draft to the Academic Council for re-consideration, either in whole or in part, together with any amendment which the Executive Council may suggest. (4) Where the Executive Council has rejected or returned the draft of an Ordinance proposed by the Academic Council, the Academic Council may consider the question afresh and in case the original draft is reaffirmed by a majority of not less than two-thirds of the members present and voting and more than half the total number of members of the Academic Council, the draft may be sent back to the Executive Council which shall either adopt it or refer it to the Visitor whose decision shall be final. (5) Every Ordinance made by the Executive Council shall come into effect immediately. (6) Every Ordinance made by the Executive Council shall be submitted to the Visitor within two weeks from the date of its adoption. (7) The Visitor shall have the power to direct the University to suspend the operation of any Ordinance. (8) The Visitor shall inform the Executive Council about his objection to the Ordinance referred to in clause (7) and may, after receiving the comments of the University, either withdraw the order suspending the Ordinance or disallow the Ordinance, and his decision shall be final. **42. Regulations.—(1) The authorities of the University may make Regulations consistent with the** Act, the Statutes and the Ordinances for the following matters, namely:— (i) laying down the procedure to be observed at their meetings and the number of members required to form a quorum; (ii) providing for all matters which are required by the Act, the Statutes or the Ordinances to be prescribed by Regulations; (iii) providing for all other matters solely concerning such authorities or committees appointed by them and not provided for by the Act, the Statutes or the Ordinances. 31 ----- (2) Every authority of the University shall make Regulations providing for the giving of notice to the members of such authority of the dates of meetings and of the business to be considered at meetings and for the keeping of a record of the proceedings of meetings. (3) The Executive Council may direct the amendment in such manner as it may specify of any Regulation made under the Statutes or the annulment of any such Regulation. **43. Delegation of Powers.—Subject to the provisions of the Act and the Statutes, any officer or** authority of the University may delegate his or its powers to any other officer or authority or person under his or its respective control and subject to the condition that overall responsibility for the exercise of the powers so delegated shall continue to vest in the officer or authority delegating such powers. 32 -----

10-Jan-2007

09

The Tripura University Act, 2006

https://www.indiacode.nic.in/bitstream/123456789/2094/1/200709.pdf

central

# THE TRIPURA UNIVERSITY ACT, 2006 _____________ # ARRANGEMENT OF SECTIONS _____________ SECTIONS 1. Short title and commencement. 2. Definitions. 3. Establishment of the University. 4. Effect of establishment of the University. 5. Objects of the University. 6. Powers of University. 7. Jurisdiction. 8. University open to all classes, castes and creed. 9. The Visitor. 10. The Chief Rector. 11. Officers of the University. 12. The Chancellor. 13. The Vice-Chancellor. 14. The Pro-Vice-Chancellor. 15. The Deans of Faculties. 16. The Registrar. 17. The Finance Officer. 18. The Controller of Examinations. 19. The Librarian. 20. Other officers. 21. Authorities of the University. 22. The Court. 23. The Executive Council. 24. The Academic Council. 25. The College Development Council. 26. The Board of Studies. 27. The Finance Committee. 28. Other authorities of the University. 29. Power to make Statutes. 30. Statutes how to be made. 31. Power to make Ordinances. 32. Regulations. 33. Annual report. 34. Annual accounts. 35. Returns and information. 36. Conditions of service of employees. 37. Procedure of appeal and arbitration in disciplinary cases against students. 38. Right to appeal. 39. Provident and pension funds. 40. Disputes as to constitution of authorities and bodies. 41. Filling of casual vacancies. 42. Proceedings of authorities or bodies not invalidated by vacancies. 43. Protection of action taken in good faith. 1 ----- SECTIONS 44. Mode of proof of University record. 45. Power to remove difficulties. 46. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid before Parliament. 47. Transitional provisions. 48. Repeal of Tripura Act 11 of 1987. THE SCHEDULE. 2 ----- # THE TRIPURA UNIVERSITY ACT, 2006 ACT NO. 9 OF 2007 [10th January, 2007.] # An Act to establish and incorporate a teaching and affiliating University in the State of Tripura and to provide for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-seventh Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the Tripura University Act, 2006.** (2) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.—In this Act, and in all Statutes made hereunder, unless the context otherwise** requires,— (a) “Academic Council” means the Academic Council of the University; (b) “academic staff” means such categories of staff as are designated as academic staff by the Ordinances; (c) “Affiliated College” means a college admitted to the privileges of the University; (d) “Board of Studies” means the Board of Studies of the University; (e) “Chancellor”, “Vice-Chancellor”, and “Pro-Vice-Chancellor” mean, respectively, the Chancellor, Vice-Chancellor and Pro-Vice-Chancellor of the University; (f) “College Development Council” means the College Development Council of the University; (g) “Constituent College” means a college maintained by the University; (h) “Court” means the Court of the University; (i) “Department” means a Department of Studies and includes a Centre of Studies; (j) “distance education system” means the system of imparting education through any means of communication, such as broadcasting, telecasting, correspondence courses, seminars, contact programmes or the combination of any two or more such means; (k) “employee” means any person appointed by the University and includes teachers and other staff of the University; (l) “Executive Council” means the Executive Council of the University; (m) “Hall” means a unit of residence or of corporate life for the students of the University, or of a College or an Institution, maintained by the University; (n) “Institution” means an academic institution, not being a College, maintained by, or admitted to the privileges of the University; (o) “Principal” means the Head of a College or an Institution maintained by the University and includes, where there is no Principal, the person for the time being duly appointed to act as Principal, and in the absence of the Principal, or the acting Principal, a Vice-Principal duly appointed as such; 1. 2nd July, 2007, _vide notification No. S.O. 1054(E), dated 29th June, 2007,_ _see Gazette of India, Extraordinary, Part II,_ sec. 3(ii). 3 ----- (p) “recognised teachers” means such persons as may be recognised by the University for the purpose of imparting instructions in a College or an Institution admitted to the privileges of the University; (q) "Regulations" means the Regulations made by any authority of the University under this Act for the time being in force; (r) "Faculty" means a Faculty of the University; (s) “Statutes” and “Ordinances” mean, respectively, the Statutes and the Ordinances of the University for the time being in force; (t) “teachers of the University” means Professors, Readers, Lecturers and such other persons as may be appointed for imparting instruction or conducting research in the University or in any College or Institution maintained by the University and are designated as teachers by the Ordinances; (u) “University” means the Tripura University established and incorporated as a University under this Act. **3. Establishment of the University.—(1) The Tripura University in the State of Tripura, established** under the Tripura University Act, 1987, (Tripura Act 11 of 1987) shall be established as a body corporate under this Act by the same name of “Tripura University”. (2) The first Chancellor, the first Vice-Chancellor and the first members of the Court, the Executive Council and the Academic Council, and all persons who may hereafter become such officers or members, so long as they continue to hold such office or membership, shall constitute the University. (3) The University shall have perpetual succession and a common seal and shall sue and be sued by the said name. (4) The headquarters of the University shall be at Agartala. **4. Effect of establishment of the University.—On and from the date of commencement of this** Act,— (a) any reference to the Tripura University in any contract or other instrument shall be deemed as a reference to the University; (b) all property, movable and immovable, of or belonging to the Tripura University shall vest in the University; (c) all rights and liabilities of the Tripura University shall be transferred to, and be the rights and liabilities of, the University; (d) every person employed by the Tripura University immediately before the commencement of this Act shall hold his office or service in the University by the same tenure, at the same remuneration and upon the same terms and conditions and with the same rights and privileges as to pension, leave, gratuity, provident fund and other matters as he would have held the same if this Act had not been enacted, and shall continue to do so unless and until his employment is terminated or until such tenure, remuneration and terms and conditions are duly altered by the Statutes: Provided that if the alteration so made is not acceptable to such employee, his employment may be terminated by the University in accordance with the term of the contract with the employee or, if no provision is made therein in this behalf, on payment to him by the University of compensation equivalent to three months’ remuneration in case of permanent employees and one month’s remuneration in the case of other employees: 4 ----- Provided further that every person employed before the commencement of this Act, pending the execution of a contract under section 36, shall be deemed to have been appointed in accordance with the provisions of a contract consistent with the provisions of this Act and the Statutes: Provided also that any reference, by whatever form of words, to the Vice-Chancellor and Pro Vice-Chancellor of the Tripura University in any law for the time being in force, or in any instrument or other document, shall be construed as a reference respectively to the Vice-Chancellor and the ProVice-Chancellor of the University; (e) the Vice-Chancellor of the Tripura University, appointed under the provisions of the Tripura University Act, 1987 (Tripura Act 11 of 1987) shall be deemed to have been appointed as the ViceChancellor under this Act, and shall hold office for a period of three months or till such time the first Vice-Chancellor is appointed under section 47 of the Act, whichever is earlier; and (f) all Colleges, Institutions, Faculties and Departments affiliated to, or admitted to the privileges of, or maintained by, the Tripura University shall stand affiliated to, or admitted to the privilege of, or maintained by, the University. **5. Objects of the University.—The objects of the University shall be to disseminate and advance** knowledge by providing instructional and research facilities in such branches of learning as it may deem fit; to make provisions for integrated courses in humanities, natural and physical sciences, social sciences, forestry and other allied disciplines in the educational programmes of the University; to make special provisions for studies in tribal life and culture; to take appropriate measures for promoting innovations in teaching-learning process, inter-disciplinary studies and research; to educate and train manpower for the development of the State of Tripura; and to pay special attention to the improvement of the social and economic conditions and welfare of the people of that State, their intellectual, academic and cultural development. **6. Powers of University.—The University shall have the following powers, namely:—** (i) to provide for instructions in such branches of learning as the University may, from time to time, determine and to make provisions for research and for the advancement and dissemination of knowledge; (ii) to grant, subject to such conditions as the University may determine, diplomas or certificates to, and confer degrees or other academic distinctions on the basis of examinations, evaluation or any other method of testing, on persons, and to withdraw any such diplomas, certificates, degrees or other academic distinctions for good and sufficient cause; (iii) to organise and to undertake extramural studies, training and extension services; (iv) to confer honorary degrees or other distinctions in the manner prescribed by the Statutes; (v) to provide facilities through the distance education system to such persons as it may determine; (vi) to institute Principalships, Professorships, Readerships, Lecturerships and other teaching or academic positions, required by the University and to appoint persons to such Principalships, Professorships, Readerships, Lecturerships or other teaching or academic positions; (vii) to recognise an Institution of higher learning for such purposes as the University may determine and to withdraw such recognition; (viii) to recognise persons for imparting instructions in any College or Institution admitted to the privileges of the University; (ix) to appoint persons working in any other University or educational institution as teachers of the University for a specified period; 5 ----- (x) to create administrative, ministerial and other posts and to make appointments thereto; (xi) to co-operate or collaborate or associate with any other University or authority or Institution of higher learning in such manner and for such purposes as the University may determine; (xii) to establish, with the prior approval of the Central Government, such Centres and specialised laboratories or other units for research and instruction as are, in the opinion of the University, necessary for the furtherance of its objects; (xiii) to institute and award fellowships, scholarships, studentships, medals and prizes; (xiv) to establish and maintain Colleges, Institutions and Halls; (xv) to make provision for research and advisory services and for that purpose to enter into such arrangements with other institutions, industrial or other organisations, as the University may deem necessary; (xvi) to organise and conduct refresher courses, workshops, seminars and other programmes for teachers, evaluators and other academic staff; (xvii) to admit to its privileges Colleges and Institutions within the State of Tripura not maintained by the University; to withdraw all or any of those privileges in accordance with such conditions as may be prescribed by the Statutes; to recognise, guide, supervise, and control Halls not maintained by the University and other accommodation for students, and to withdraw any such recognition; (xviii) to appoint on contract or otherwise visiting Professors, Emeritus Professors, Consultants, Scholars and such other persons who may contribute to the advancement of the objects of the University; (xix) to confer autonomous status on a College or an Institution or a Department, as the case may be, in accordance with the Statutes; (xx) to determine standards of admission to the University, which may include examination, evaluation or any other method of testing; (xxi) to demand and receive payment of fees and other charges; (xxii) to supervise the residences of the students of the University and to make arrangements for promoting their health and general welfare; (xxiii) to lay down conditions of service of all categories of employees, including their code of conduct; (xxiv) to regulate and enforce discipline among the students and the employees, and to take such disciplinary measures in this regard as may be deemed by the University to be necessary; (xxv) to make arrangements for promoting the health and general welfare of the employees; (xxvi) to receive benefactions, donations and gifts and to acquire, hold and manage, and to dispose of, with the previous approval of the Central Government, any property, movable or immovable, including trust and endowment properties for the purposes of the University; (xxvii) to borrow, with the approval of the Central Government, on the security of the property of the University, money for the purposes of the University; (xxviii) to do all such other acts and things as may be necessary, incidental or conducive to the attainment of all or any of its objects. **7. Jurisdiction.—(1) The jurisdiction of the University shall extend to the whole of the State of** Tripura. 6 ----- (2) Notwithstanding anything in any other law for the time being in force, no educational institution within the State of Tripura shall be associated in any way with or be admitted to any privileges of any other University incorporated by law in India, and any such privileges granted by any such other University to an educational institution within the State of Tripura prior to the commencement of this Act shall be deemed to be withdrawn on the commencement of this Act: Provided that the Central Government may, by order in writing, direct that the provisions of this sub section shall not apply in case of any educational institution specified in the order. **8. University open to all classes, castes and creed.—The University shall be open to persons of** either sex and of whatever caste, creed, race or class, and it shall not be lawful for the University to adopt or impose on any person, any test whatsoever of religious belief or profession in order to entitle him to be appointed as a teacher of the University or to hold any other office therein or be admitted as a student in the University or to graduate thereat or to enjoy or exercise any privilege thereof: Provided that nothing in this section shall be deemed to prevent the University from making special provisions for the employment or admission of women, persons with disabilities or of persons belonging to the weaker sections of the society and, in particular, of the Scheduled Castes and the Scheduled Tribes. **9. The Visitor.—(1) The President of India shall be the Visitor of the University.** (2) The Visitor may from time to time, appoint one or more persons to review the work and progress of the University, including Colleges and Institutions maintained by it, and to submit a report thereon; and upon receipt of that report, the Visitor may, after obtaining the views of the Executive Council thereon through the Vice-Chancellor, take such action and issue such directions as he considers necessary in respect of any of the matters dealt with in the report and the University shall be bound to comply with such directions. (3) The Visitor shall have the right to cause an inspection to be made by such person or persons as he may direct, of the University, its buildings, libraries, laboratories and equipment, and of any College or Institution maintained by the University or admitted to its privileges; and also of the examinations, teaching and other work conducted or done by the University and to cause an inquiry to be made in like manner in respect of any matter connected with the administration or finances of the University, Colleges or Institutions. (4) The Visitor shall, in every matter referred to in sub-section (3), give notice of his intention to cause an inspection or inquiry to be made,— (a) to the University, if such inspection or inquiry is to be made in respect of the University or any College or Institution maintained by it, or (b) to the management of the College or Institution, if the inspection or inquiry is to be made in respect of College or Institution admitted to the privileges of the University, and the University or the management, as the case may be, shall have the right to make such representations to the Visitor, as it may consider necessary. (5) After considering the representations, if any, made by the University or the management, as the case may be, the Visitor may cause to be made such inspection or inquiry as is referred to in sub-section (3). (6) Where any inspection or inquiry has been caused to be made by the Visitor, the University or the management shall be entitled to appoint a representative, who shall have the right to be present and be heard at such inspection or inquiry. (7) The Visitor may, if the inspection or inquiry is made in respect of the University or any College or Institution maintained by it, address the Vice-Chancellor with reference to the result of such inspection or inquiry together with such views and advice with regard to the action to be taken thereon, as the Visitor 7 ----- may be pleased to offer, and on receipt of address made by the Visitor, the Vice-Chancellor shall communicate, to the Executive Council, the views of the Visitor with such advice as the Visitor may offer upon the action to be taken thereon. (8) The Visitor may, if the inspection or inquiry is made in respect of any College or Institution admitted to the privileges of the University, address the management concerned through the ViceChancellor with reference to the result of such inspection or inquiry, his views thereon and such advice as he may be pleased to offer upon the action to be taken thereon. (9) The Executive Council or the management, as the case may be, shall communicate, through the Vice-Chancellor to the Visitor such action, if any, as it proposes to take or has been taken upon the result of such inspection or inquiry. (10) Where, the Executive Council or the management, does not, within a reasonable time, take action to the satisfaction of the Visitor, the Visitor may, after considering any explanation furnished or representation made by the Executive Council or the management, issue such directions as he may think fit and the Executive Council or the management, as the case may be, shall comply with such directions. (11) Without prejudice to the foregoing provisions of this section, the Visitor may, by order in writing, annul any proceeding of the University which is not in conformity with the Act, the Statutes or the Ordinances: Provided that before making any such order, he shall call upon the Registrar to show cause why such an order should not be made, and, if any cause is shown within a reasonable time, he shall consider the same. (12) The Visitor shall have such other powers as may be prescribed by the Statutes. **10. The Chief Rector.—The Governor of the State of Tripura shall be the Chief Rector of the** University. **11. Officers of the University.—The following shall be the officers of the University:—** (1) the Chancellor; (2) the Vice-Chancellor; (3) the Pro-Vice-Chancellor; (4) the Deans of Faculties; (5) the Registrar; (6) the Finance Officer; (7) the Controller of Examinations; (8) the Librarian; and (9) such other officers as may be declared by the Statutes to be officers of the University. **12. The Chancellor.—(1) The Chancellor shall be appointed by the Visitor in such manner as may be** prescribed by the Statutes. (2) The Chancellor shall, by virtue of his office, be the head of the University and shall, if present, preside at the Convocations of the University held for conferring degrees and meetings of the Court. **13. The Vice-Chancellor.—(1) The Vice-Chancellor shall be appointed by the Visitor in such** manner as may be prescribed by the Statutes. 8 ----- (2) The Vice-Chancellor shall be the principal executive and academic officer of the University and shall exercise general supervision and control over the affairs of the University and give effect to the decisions of all the authorities of the University. (3) The Vice-Chancellor may, if he is of opinion that immediate action is necessary on any matter, exercise any power conferred on any authority of the University by or under this Act and shall report to such authority at its next meeting the action taken by him on such matter: Provided that if the authority concerned is of the opinion that such action ought not to have been taken, it may refer the matter to the Visitor whose decision thereon shall be final: Provided further that any person in the service of the University who is aggrieved by the action taken by the Vice-Chancellor under this sub-section shall have the right to represent against such action to the Executive Council within three months from the date on which decision on such action is communicated to him and thereupon the Executive Council may confirm, modify or reverse the action taken by the ViceChancellor. (4) The Vice-Chancellor, if he is of the opinion that any decision of any authority of the University is beyond the powers of the authority conferred by the provisions of this Act, the Statutes or the Ordinances or that any decision taken is not in the interest of the University, may ask the authority concerned to review its decision within sixty days of such decision and if the authority refuses to review the decision either in whole or in part or no decision is taken by it within the said period of sixty days, the matter shall be referred to the Visitor whose decision thereon shall be final. (5) The Vice-Chancellor shall exercise such other powers and perform such other duties as may be prescribed by the Statutes or the Ordinances. **14. The Pro-Vice-Chancellor.—The Pro-Vice-Chancellor shall be appointed in such manner and on** such terms and conditions of service, and shall exercise such powers and perform such duties, as may be prescribed by the Statutes. **15. The Deans of Faculties.—Every Dean of Faculty shall be appointed in such manner and shall** exercise such powers and perform such duties as may be prescribed by the Statutes. **16. The Registrar.—(1) The Registrar shall be appointed in such manner and on such terms and** conditions of service as may be prescribed by the Statutes. (2) The Registrar shall have the power to enter into agreements, sign documents and authenticate records on behalf of the University and shall exercise such powers and perform such duties as may be prescribed by the Statutes. **17. The Finance Officer.—The Finance Officer shall be appointed in such manner and shall exercise** such powers and perform such duties, as may be prescribed by the Statutes. **18. The Controller of Examinations.—The Controller of Examinations shall be appointed in such** manner and shall exercise such powers and perform such duties, as may be prescribed by the Statutes. **19. The Librarian.—The Librarian shall be appointed in such manner and on such terms and** conditions of service, and shall exercise such powers and perform such duties, as may be prescribed by the Statutes. **20. Other officers.—The manner of appointment and powers and duties of other officers of the** University shall be prescribed by the Statutes. **21. Authorities of the University.—The following shall be the authorities of the University:—** (1) the Court; (2) the Executive Council; 9 ----- (3) the Academic Council; (4) the College Development Council; (5) the Board of Studies; (6) the Finance Committee; and (7) such other authorities as may be declared by the Statutes to be the authorities of the University. **22. The Court.—(1) The constitution of the Court and the term of office of its members shall be** prescribed by the Statutes: Provided that such number of members as may be prescribed by the Statutes shall be elected from among the teachers, employees and students of the University. (2) Subject to the provisions of this Act, the Court shall have the following powers and functions, namely:— (a) to review, from time to time, the broad policies and programmes of the University and to suggest measures for the improvement and development of the University; (b) to consider and pass resolutions on the annual report and the annual accounts of the University and the audit report on such accounts; (c) to advise the Visitor in respect of any matter which may be referred to it for advice; and (d) to perform such other functions as may be prescribed by the Statutes. **23. The Executive Council.—(1) The Executive Council shall be the principal executive body of the** University. (2) The constitution of the Executive Council, the term of office of its members and its powers and functions shall be prescribed by the Statutes: Provided that such number of members as may be prescribed by the Statutes shall be from among the elected members of the Court. **24. The Academic Council.—(1) The Academic Council shall be the principal academic body of the** University and shall, subject to the provisions of this Act, the Statutes and the Ordinances, co-ordinate and exercise general supervision over the academic policies of the University. (2) The constitution of the Academic Council, the term of office of its members and its powers and functions shall be prescribed by the Statutes: Provided that such number of members as may be prescribed by the Statutes shall be from among the elected members of the Court who are teachers of the University. **25. The College Development Council.—(1) The College Development Council shall be responsible** for admitting Colleges to the privileges of the University. (2) The constitution of the College Development Council, the term of office of its members and its powers and functions shall be prescribed by the Statutes. **26. The Board of Studies.—The constitution, powers and functions of the Board of Studies shall be** prescribed by the Statutes. **27. The Finance Committee.—The constitution, powers and functions of the Finance Committee** shall be prescribed by the Statutes. 10 ----- **28. Other authorities of the University.—The constitution, powers and functions of other** authorities, as may be declared by the Statutes to be the authorities of the University, shall be prescribed by the Statutes. **29. Power to make Statutes.—Subject to the provisions of this Act, the Statutes may provide for all** or any of the following matters, namely:— (a) the constitution, powers and functions of authorities and other bodies of the University, as may be constituted from time to time; (b) the appointment and continuance in office of the members of the said authorities and bodies, the filling up of vacancies of members, and all other matters relating to those authorities and other bodies for which it may be necessary or desirable to provide; (c) the appointment, powers and duties of the officers of the University and their emoluments; (d) the appointment of teachers, academic staff and other employees of the University, their emoluments and conditions of service; (e) the recognition of persons as University recognised teachers; (f) the appointment of teachers, academic staff working in any other University or organisation for a specific period for undertaking a joint project; (g) the conditions of service of employees including provisions for pension, insurance, provident fund, the manner of termination of service and disciplinary action; (h) the principles governing the seniority of service of the employees of the University; (i) the procedure for arbitration in cases of dispute between employees or students and the University; (j) the procedure for appeal to the Executive Council by any employee or student against the action of any officer or authority of the University; (k) the conferment of autonomous status on a College or an institution or a Department; (l) the establishment and abolition of Faculties, Departments, Centres, Halls, Colleges and Institutions; (m) the conferment of honorary degrees; (n) the withdrawal of degrees, diplomas, certificates and other academic distinctions; (o) the conditions under which Colleges and Institutions may be admitted to the privileges of the University and the withdrawal of such privileges; (p) the management of Colleges and Institutions established by the University; (q) the delegation of powers vested in the authorities or officers of the University; (r) the maintenance of discipline among the employees and students; and (s) all other matters which by this Act are to be or may be provided for by the Statutes. **30. Statutes how to be made.—(1) The first Statutes are those set out in the Schedule.** (2) The Executive Council may, from time to time, make new or additional Statutes or may amend or repeal the Statutes referred to in sub-section (1): Provided that the Executive Council shall not make, amend or repeal any Statutes affecting the status, powers or constitution of any authority of the University until such authority has been given an 11 ----- opportunity of expressing an opinion in writing on the proposed changes, and any opinion so expressed shall be considered by the Executive Council. (3) Every new Statute or addition to the Statutes or any amendment or repeal of a Statute shall require the assent of the Visitor who may assent thereto or withhold assent or remit to the Executive Council for re-consideration. (4) A new Statute or a Statute amending or repealing an existing Statute shall have no validity unless it has been assented to by the Visitor. (5) Notwithstanding anything contained in the foregoing sub-sections, the Visitor may make new or additional Statutes or amend or repeal the Statutes referred to in sub-section (1), during the period of three years immediately after the commencement of this Act: Provided that the Visitor may, on the expiry of the said period of three years, make, within one year from the date of such expiry, such detailed Statutes as he may consider necessary and such detailed Statutes shall be laid before both Houses of Parliament. (6) Notwithstanding anything contained in the foregoing sub-sections, the Visitor may direct the University to make provisions in the Statutes in respect of any matter specified by him and if the Executive Council is unable to implement such direction within sixty days of its receipt, the Visitor may, after considering the reasons, if any, communicated by the Executive Council for its inability to comply with such direction, make or amend the Statutes suitably. **31. Power to make Ordinances.—(1) Subject to the provisions of this Act and the Statutes, the** Ordinances may provide for all or any of the following matters, namely:— (a) the admission of students to the University and their enrolment as such; (b) the courses of study to be laid down for all degrees, diplomas and certificates of the University; (c) the medium of instruction and examination; (d) the award of degrees, diplomas, certificates and other academic distinctions, the qualifications for the same and the means to be taken relating to the granting and obtaining of the same; (e) the fees to be charged for courses of study in the University and for admission to the examinations, degrees and diplomas of the University; (f) the conditions for award of fellowships, scholarships, studentships, medals and prizes; (g) the conduct of examinations, including the term of office and manner of appointment and the duties of examining bodies, examiners and moderators; (h) the conditions of residence of the students of the University; (i) the special arrangements, if any, which may be made for the residence and teaching of women students and the prescribing of special courses of studies for them; (j) the establishment of Centres of Studies, Boards of Studies, Specialised Laboratories and other Committees; (k) the manner of co-operation and collaboration with other Universities, institutions and other agencies not involving the carrying on of any activity for profit including learned bodies or associations; (l) the creation, composition and functions of any other body which is considered necessary for improving the academic life of the University; (m) the institution of fellowships, scholarships, studentships, medals and prizes; 12 ----- (n) the supervision of management of Colleges and Institutions admitted to the privileges of the University; (o) the setting up of a machinery for redressal of grievances of employees; and (p) all other matters which by this Act or the Statutes, are to be or may be, provided for by the Ordinances. (2) The first Ordinances shall be made by the Vice-Chancellor with the previous approval of the Central Government and the Ordinances so made may be amended, repealed or added to at any time by the Executive Council in the manner prescribed by the Statutes: Provided that till such time as the first Ordinances are not so made by the Vice-Chancellor, in respect of the matters that are to be provided for by the Ordinances under this Act and Statutes, the relevant provisions of the Statutes and the Ordinances of the Tripura University in force immediately before the commencement of this Act shall be applicable insofar as they are not inconsistent with the provisions of this Act and the Statutes. **32. Regulations.—The authorities of the University may make Regulations, consistent with this Act,** the Statutes and the Ordinances for the conduct of their own business and that of the Committees, if any, appointed by them and not provided for by this Act, the Statutes or the Ordinances, in the manner prescribed by the Statutes. **33. Annual report.—(1) The annual report of the University shall be prepared under the direction of** the Executive Council, which shall include, among other matters, the steps taken by the University towards the fulfilment of its objects and shall be submitted to the Court on or after such date as may be prescribed by the Statutes and the Court shall consider the report in its annual meeting. (2) The Court shall submit the annual report to the Visitor along with its comments, if any. (3) A copy of the annual report, as prepared under sub-section (1), shall also be submitted to the Central Government, which shall, as soon as may be, cause the same to be laid before both Houses of Parliament. **34. Annual accounts.—(1) The annual accounts and balance-sheet of the University shall be prepared** under the directions of the Executive Council and shall, once at least every year and at intervals of not more than fifteen months, be audited by the Comptroller and Auditor-General of India or by such persons as he may authorise in this behalf. (2) A copy of the annual accounts together with the audit report thereon shall be submitted to the Court and the Visitor along with the observations of the Executive Council. (3) Any observations made by the Visitor on the annual accounts shall be brought to the notice of the Court and the observations of the Court, if any, shall, after being considered by the Executive Council, be submitted to the Visitor. (4) A copy of the annual accounts together with the audit report as submitted to the Visitor, shall also be submitted to the Central Government, which shall, as soon as may be, cause the same to be laid before both Houses of Parliament. (5) The audited annual accounts after having been laid before both Houses of Parliament shall be published in the Official Gazette. **35. Returns and information.—The University shall furnish to the Central Government such returns** or other information with respect to its property or activities as the Central Government may, from time to time, require. 13 ----- **36. Conditions of service of employees.—(1) Every employee of the University shall be appointed** under a written contract, which shall be lodged with the University and a copy of which shall be furnished to the employee concerned. (2) Any dispute arising out of the contract between the University and any employee shall, at the request of the employee, be referred to a Tribunal of Arbitration consisting of one member appointed by the Executive Council, one member nominated by the employee concerned and an umpire appointed by the Visitor. (3) The decision of the Tribunal shall be final, and no suit shall lie in any civil court in respect of the matters decided by the Tribunal: Provided that nothing in this sub-section shall preclude the employee from availing of the judicial remedies available under articles 32 and 226 of the Constitution. (4) Every request made by the employee under sub-section (2), shall be deemed to be a submission to arbitration upon the terms of this section within the meaning of the Arbitration and Conciliation Act, 1996 (26 of 1996). (5) The procedure for regulating the work of the Tribunal shall be prescribed by the Statutes. **37. Procedure of appeal and arbitration in disciplinary cases against students.—(1) Any student** or candidate for an examination whose name has been removed from the rolls of the University by the orders or resolution of the Vice-Chancellor, Discipline Committee or Examination Committee, as the case may be, and who has been debarred from appearing at the examinations of the University for more than one year, may, within ten days of the date of receipt of such orders or copy of such resolution by him, appeal to the Executive Council and the Executive Council may confirm, modify or reverse the decision of the Vice-Chancellor or the Committee, as the case may be. (2) Any dispute arising out of any disciplinary action taken by the University against a student shall, at the request of such student, be referred to a Tribunal of Arbitration and the provisions of sub-sections (2), (3), (4) and (5) of section 36 shall, as far as may be, apply to a reference made under this sub-section. **38. Right to appeal.—Every employee or student of the University or of a College or Institution** maintained by the University or admitted to its privileges shall, notwithstanding anything contained in this Act, have a right to appeal within such time as may be prescribed by the Statutes, to the Executive Council against the decision of any officer or authority of the University or of the Principal or the management of any College or an Institution, as the case may be, and thereupon the Executive Council may confirm, modify or reverse the decision appealed against. **39. Provident and pension funds.—(1) The University shall constitute for the benefit of its** employees such provident or pension fund or provide such insurance schemes as it may deem fit in such manner and subject to such conditions as may be prescribed by the Statutes. (2) Where such provident fund or pension fund has been so constituted, the Central Government may declare that the provisions of the Provident Funds Act, 1925 (19 of 1925), shall apply to such fund, as if it were a Government provident fund. **40. Disputes as to constitution of authorities and bodies.—If any question arises as to whether any** person has been duly elected or appointed as, or is entitled to be, a member of any authority or other body of the University, the matter shall be referred to the Visitor whose decision thereon shall be final. **41. Filling of casual vacancies.—All casual vacancies among the members (other than** _ex officio_ members) of any authority or other body of the University shall be filled, as soon as may be, by the person or body who appoints, elects or co-opts the member whose place has become vacant and person appointed, elected or co-opted to a casual vacancy shall be a member of such authority or body for the residue of the term for which the person whose place he fills would have been a member. 14 ----- **42. Proceedings of authorities or bodies not invalidated by vacancies.—No act or proceedings of** any authority or other body of the University shall be invalid merely by reason of the existence of a vacancy or vacancies among its members. **43. Protection of action taken in good faith.—No suit or other legal proceeding shall lie against any** officer or other employee of the University for anything which is in good faith done or intended to be done in pursuance of any of the provisions of this Act, the Statutes or the Ordinances. **44. Mode of proof of University record.—Notwithstanding anything contained in the Indian** Evidence Act, 1872 (1 of 1872) or in any other law for the time being in force, a copy of any receipt, application, notice, order, proceeding or resolution of any authority or other body of the University, or any other document in possession of the University, or any entry in any register duly maintained by the University, if certified by the Registrar, shall be received as _prima facie evidence of such receipt,_ application, notice, order, proceeding, resolution or document or the existence of entry in the register and shall be admitted as evidence of the matters and transactions therein where the original thereof would, if produced, have been admissible in evidence. **45. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made under this section after the expiry of three years from the commencement of this Act. (2) Every order made under sub-section (1) shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the order or both Houses agree that the order should not be made, the order shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that order. **46. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid** **before Parliament.—(1) Every Statute, Ordinance or Regulation made under this Act shall be published** in the Official Gazette. (2) Every Statute, Ordinance or Regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the Statute, Ordinance or Regulation or both Houses agree that the Statute, Ordinance or Regulation should not be made, the Statute, Ordinance or Regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that Statute, Ordinance or Regulation. (3) The power to make Statutes, Ordinances or Regulations shall include the power to give retrospective effect, from a date not earlier than the date of commencement of this Act, to the Statutes, Ordinances or Regulations or any of them but no retrospective effect shall be given to any Statute, Ordinance or Regulation so as to prejudicially affect the interests of any person to whom such Statute, Ordinance or Regulation may be applicable. 15 ----- **47. Transitional Provisions.—Notwithstanding anything contained in this Act and the Statutes,—** (a) the first Chancellor and first Vice-Chancellor shall be appointed by the Central Government in such manner and on such conditions as may be deemed fit and each of the said officers shall hold office for such term, not exceeding five years as may be specified by the Central Government; (b) the first Registrar and the first Finance Officer shall be appointed by the Central Government and each of the said officers shall hold office for a term of three years; (c) the first Court and the first Executive Council shall consist of not more than thirty-one members and eleven members, respectively, who shall be nominated by the Central Government and shall hold office for a term of three years; (d) the first College Development Council shall consist of not more than eleven members, who shall be nominated by the Central Government and they shall hold office for a term of three years; (e) the first Academic Council shall consist of not more than twenty-one members, who shall be nominated by the Central Government and they shall hold office for a term of three years: Provided that if any vacancy occurs in the above offices or authorities, the same shall be filled by appointment or nomination, as the case may be, by the Central Government, and the person so appointed or nominated shall hold office for so long as the officer or member in whose place he is appointed or nominated would have held office, if such vacancy had not occurred. **48. Repeal of Tripura Act 11 of 1987.—(1) The Tripura University Act, 1987 is hereby repealed.** (2) Notwithstanding such repeal,— (a) all appointments made, orders issued, degrees and other academic distinctions conferred, diplomas and certificates awarded, privileges granted, or other things done under the Tripura University Act, 1987 (Tripura Act 11 of 1987), shall be deemed to have been respectively made, issued, conferred, awarded, granted or done under the corresponding provisions of this Act and, except as otherwise provided by or under this Act or the Statutes, continue in force unless and until they are superseded by any order made under this Act or the Statutes; and (b) all proceedings of Selection Committees for the appointment or promotion of teachers that took place before the commencement of this Act and all actions of the Executive Council in respect of the recommendations of such Selection Committees where no orders of appointment on the basis thereof were passed before the commencement of this Act shall, notwithstanding that the procedure for selection has been modified by this Act, be deemed to have been valid but further proceeding in connection with such pending selections shall be taken in accordance with the provisions of this Act and be continued from the stage where they stood immediately before such commencement, except if the concerned authorities take, with the approval of the Visitor, a decision to the contrary. 16 ----- THE SCHEDULE (See section 30) THE STATUTES OF THE UNIVERSITY **1. The Chancellor.—(1) The Chancellor shall be appointed by the Visitor from a panel of not less** than three persons recommended by the Executive Council from amongst persons of eminence in the academic or public life of the country: Provided that if the Visitor does not approve of any of the persons so recommended, he may call for fresh recommendations from the Executive Council. (2) The Chancellor shall hold office for a term of five years and shall not be eligible for re appointment: Provided that notwithstanding the expiry of his term of office, the Chancellor shall continue to hold office until his successor enters upon his office. **2. The Vice-Chancellor.—(1) The Vice-Chancellor shall be appointed by the Visitor from a panel of** not less than three persons who shall be recommended by a Committee as constituted under clause (2): Provided that if the Visitor does not approve of any of the persons included in the panel, he may call for an extended fresh panel. (2) The Committee referred to in clause (1) shall consist of three persons, out of whom two shall be nominated by the Executive Council and one by the Visitor and the nominee of the Visitor shall be the convener of the Committee: Provided that none of the members of the Committee shall be an employee of the University or an Institution maintained by, or admitted to the privileges of, the University or a member of any authority of the University. (3) The Vice-Chancellor shall be a whole-time salaried officer of the University. (4) The Vice-Chancellor shall hold office for a term of five years from the date on which he enters upon his office, or until he attains the age of sixty-five years, whichever is earlier, and he shall not be eligible for re-appointment: Provided that notwithstanding the expiry of the said period of five years, he shall continue in office until his successor is appointed and enters upon his office: Provided further that the Visitor may direct any Vice-Chancellor after his term has expired, to continue in office for such period, not exceeding a total period of one year, as may be specified by him. (5) The emoluments and other conditions of service of the Vice-Chancellor shall be as follows:— (i) The Vice-Chancellor shall be paid a monthly salary and allowances, other than house rent allowance, at the rates fixed by the Central Government from time to time and he shall be entitled, without payment of rent, to use a furnished residence throughout his term of office and no charge shall fall on the Vice-Chancellor in respect of the maintenance of such residence. (ii) The Vice-Chancellor shall be entitled to such terminal benefits and allowances as may be fixed by the Central Government from time to time: Provided that where an employee of the University, or a College or an Institution maintained by, or admitted to the privileges of, the University, or of any other University or any College or Institution maintained by or admitted to the privileges of, such other University, is appointed as the Vice-Chancellor, he may be allowed to continue to contribute to any provident fund of which he is a member and the University shall contribute to the account of such person in that provident fund at the 17 ----- same rate at which the person had been contributing immediately before his appointment as the Vice-Chancellor: Provided further that where such employee had been member of any pension scheme, the University shall make the necessary contribution to such scheme. (iii) The Vice-Chancellor shall be entitled to travelling allowance at such rates as may be fixed by the Executive Council. (iv) The Vice-Chancellor shall be entitled to leave on full pay at the rate of thirty days in a calendar year and the leave shall be credited to his account in advance in two half-yearly instalments of fifteen days each on the first day of January and July every year: Provided that if the Vice-Chancellor assumes or relinquishes charge of the office of the Vice Chancellor during the currency of a half year, the leave shall be credited proportionately at the rate of two and-a-half days for each completed month of service. (v) In addition to the leave referred to in sub-clause (iv), the Vice-Chancellor shall also be entitled to half-pay leave at the rate of twenty days for each completed year of service, and half-pay leave may also be availed of as commuted leave on full pay on medical certificate: Provided that when such commuted leave is availed of, twice the amount of half-pay leave shall be debited against half-pay leave due. (6) If the office of the Vice-Chancellor becomes vacant due to death, resignation or otherwise, or if he is unable to perform his duties due to ill-health or any other cause, the Pro-Vice-Chancellor shall perform the duties of the Vice-Chancellor: Provided that if the Pro-Vice-Chancellor is not available, the senior-most Professor shall perform the duties of the Vice-Chancellor until a new Vice-Chancellor assumes office or the existing Vice-Chancellor resumes the duties of his office, as the case may be. **3. Powers and duties of the Vice-Chancellor.—(1) The Vice-Chancellor shall be** _ex officio_ Chairman of the Executive Council, the Academic Council and the Finance Committee and shall, in the absence of the Chancellor, preside at the Convocations held for conferring degrees and at meetings of the Court. (2) The Vice-Chancellor shall be entitled to be present at, and address, any meeting of any authority or other body of the University, but shall not be entitled to vote thereat unless he is a member of such authority or body. (3) It shall be the duty of the Vice-Chancellor to see that this Act, the Statutes, the Ordinances and the Regulations are duly observed, and he shall have all the powers necessary to ensure such observance. (4) The Vice-Chancellor shall have all the powers necessary for the proper maintenance of discipline in the University and he may delegate any such powers to such person or persons as he deems fit. (5) The Vice-Chancellor shall have the power to convene or cause to be convened the meetings of the Executive Council, the Academic Council and the Finance Committee. **4. Pro–Vice–Chancellor.—(1) The Pro-Vice-Chancellor shall be appointed by the Executive Council** on the recommendation of the Vice-Chancellor: Provided that where the recommendation of the Vice-Chancellor is not accepted by the Executive Council, the matter shall be referred to the Visitor who may either appoint the person recommended by the Vice-Chancellor or ask the Vice-Chancellor to recommend another person to the Executive Council: 18 ----- Provided further that the Executive Council may, on the recommendation of the Vice-Chancellor, appoint a Professor to discharge the duties of a Pro-Vice-Chancellor in addition to his own duties as a Professor. (2) The term of office of a Pro-Vice-Chancellor shall be such as may be decided by the Executive Council but it shall not in any case exceed five years or until the expiration of the term of office of the Vice-Chancellor, whichever is earlier: Provided that a Pro-Vice-Chancellor whose term of office has expired shall be eligible for re appointment: Provided further that, in any case, a Pro-Vice-Chancellor shall retire on attaining the age of sixty-five years: Provided also that a Pro-Vice-Chancellor shall, while discharging the duties of the Vice-Chancellor under clause (6) of Statute 2, continue in office notwithstanding the expiration of his term of office as Pro-Vice-Chancellor, until the Vice-Chancellor resumes office or a new Vice-Chancellor assumes office, as the case may be. (3) The emoluments and other terms and conditions of service of a Pro-Vice-Chancellor shall be such as may be prescribed by the Ordinances. (4) The Pro-Vice-Chancellor shall assist the Vice-Chancellor in respect of such matters as may be specified by the Vice-Chancellor in this behalf, from time to time, and shall also exercise such powers and perform such duties as may be assigned or delegated to him by the Vice-Chancellor. **5. Deans of Faculties.—(1) Every Dean of Faculty shall be appointed by the Vice-Chancellor from** amongst the Professors in the Faculty by rotation in the order of seniority for a period of three years: Provided that in case there is only one Professor or no Professor in a Faculty, the Dean shall be appointed, for the time being, from amongst the Professor, if any, and the Readers in the Faculty by rotation in the order of seniority: Provided further that a Dean on attaining the age of sixty-two years shall cease to hold office as such. (2) When the office of the Dean is vacant or when the Dean is, by reason of illness, absence or any other cause, unable to perform duties of his office, the duties of the office shall be performed by the senior-most Professor or Reader, as the case may be in the Faculty. (3) The Dean shall be the Head of the Faculty and shall be responsible for the conduct and maintenance of the standards of teaching and research in the Faculty and shall have such other functions as may be prescribed by the Ordinances. (4) The Dean shall have the right to be present and to speak at any meeting of the Boards of Studies or Committees of the Faculty, as the case may be, but shall not have the right to vote thereat unless he is a member thereof. **6. The Registrar.—(1) The Registrar shall be appointed by the Executive Council on the** recommendation of a Selection Committee constituted for the purpose and shall be a whole-time salaried officer of the University. (2) He shall be appointed for a term of five years and shall be eligible for re-appointment. (3) The emoluments and other terms and conditions of service of the Registrar shall be such as may be prescribed by the Executive Council from time to time: Provided that the Registrar shall retire on attaining the age of sixty-two years: 19 ----- Provided further that a Registrar shall, notwithstanding his attaining the age of sixty-two years, continue in office until his successor is appointed and enters upon his office or until the expiry of a period of one year, whichever is earlier. (4) When the office of the Registrar is vacant or when the Registrar is, by reason of illness, absence or any other cause, unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) (a) The Registrar shall have power to take disciplinary action against such of the employees, excluding teachers and other academic staff, as may be specified in the order of the Executive Council and to suspend them pending inquiry, to administer warnings to them or to impose on them the penalty of censure or the withholding of increment: Provided that no such penalty shall be imposed unless the person has been given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. (b) An appeal shall lie to the Vice-Chancellor against any order of the Registrar imposing any of the penalties specified in sub-clause (a). (c) In a case where the inquiry discloses that a punishment beyond the power of the Registrar is called for, the Registrar shall, upon the conclusion of the inquiry, make a report to the Vice-Chancellor along with his recommendations: Provided that an appeal shall lie to the Executive Council against an order of the Vice-Chancellor imposing any penalty. (6) The Registrar shall be ex officio Secretary of the Executive Council, the Academic Council and the College Development Council, but shall not be deemed to be a member of any of these authorities and he shall be ex officio Member-Secretary of the Court. (7) It shall be the duty of the Registrar— (a) to be the custodian of the records, the common seal and such other property of the University as the Executive Council shall commit to his charge; (b) to issue all notices convening meetings of the Court, the Executive Council, the Academic Council, the College Development Council and of any Committees appointed by those authorities; (c) to keep the minutes of all the meetings of the Court, the Executive Council, the Academic Council, the College Development Council and of any Committees appointed by those authorities; (d) to conduct the official correspondence of the Court, the Executive Council, the Academic Council and the College Development Council; (e) to supply to the Visitor, copies of the agenda of the meetings of the authorities of the University as soon as they are issued and the minutes of such meetings; (f) to represent the University in suits or proceedings by or against the University, sign powers of attorney and verify pleadings or depute his representative for the purpose; and (g) to perform such other duties as may be specified in the Statutes, the Ordinances or the Regulations or as may be required from time to time, by the Executive Council or the ViceChancellor. **7. The Finance Officer.—(1) The Finance Officer shall be appointed by the Executive Council on the** recommendations of a Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. (2) The Finance Officer shall be appointed for a term of five years and shall be eligible for re-appointment. 20 ----- (3) The emoluments and other terms and conditions of service of the Finance Officer shall be such as may be prescribed by the Executive Council from time to time: Provided that the Finance Officer shall retire on attaining the age of sixty-two years: Provided further that the Finance Officer shall, notwithstanding his attaining the age of sixty-two years, continue in office until his successor is appointed and enters upon his office or until the expiry of a period of one year, whichever is earlier. (4) When the office of the Finance Officer is vacant or when the Finance Officer is, by reason of illness, absence or any other cause, unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) The Finance Officer shall be _ex officio Secretary of the Finance Committee, but shall not be_ deemed to be a member of such Committee. (6) The Finance Officer shall— (a) exercise general supervision over the funds of the University and shall advise it as regards its financial policy; and (b) perform such other financial functions as may be assigned to him by the Executive Council or as may be prescribed by the Statutes or the Ordinances. (7) Subject to the control of the Executive Council, the Finance Officer shall— (a) hold and manage the property and investments of the University including trust and endowed property; (b) ensure that the limits fixed by the Executive Council for recurring and non-recurring expenditure for a year are not exceeded and that all moneys are expended on the purpose for which they are granted or allotted; (c) be responsible for the preparation of annual accounts and the budget of the University and for their presentation to the Executive Council; (d) keep a constant watch on the state of the cash and bank balances and on the state of investments; (e) watch the progress of the collection of revenue and advise on the methods of collection employed; (f) ensure that the registers of buildings, land, furniture and equipment are maintained up-to-date and that stock-checking is conducted, of equipment and other consumable materials in all offices, Departments, University, Institutes, Centres and Specialised Laboratories; (g) bring to the notice of the Vice-Chancellor unauthorised expenditure and other financial irregularities and suggest disciplinary action against persons at fault; and (h) call for from any office, Department, Centre, Laboratory, College or Institution maintained by the University any information or returns that he may consider necessary for the performance of his duties. (8) Any receipt given by the Finance Officer or the person or persons duly authorised in this behalf by the Executive Council for any money payable to the University shall be sufficient discharge for payment of such money. **8. The Controller of Examinations.—(1) The Controller of Examinations shall be appointed by the** Executive Council on the recommendations of a Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. 21 ----- (2) The Controller of Examinations shall be appointed for a term of five years and shall be eligible for re-appointment. (3) The emoluments and other terms and conditions of service of the Controller of Examinations shall be such as may be prescribed by the Executive Council from time to time: Provided that the Controller of Examinations shall retire on attaining the age of sixty-two years: Provided further that the Controller of Examinations shall, notwithstanding his attaining the age of sixty-two years, continue in office until his successor is appointed and enters upon his office or until the expiry of a period of one year, whichever is earlier. (4) When the office of the Controller of Examinations is vacant or when the Controller of Examinations is, by reason of illness, absence or any other cause, unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) The Controller of Examinations shall arrange for and superintend the examinations of the University in the manner prescribed by the Ordinances. **9. The Librarian.—(1) The Librarian shall be appointed by the Executive Council on the** recommendations of the Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. (2) The Librarian shall exercise such powers and perform such duties as may be assigned to him by the Executive Council. **10. Meetings of the Court.—(1) An annual meeting of the Court shall be held on a date to be fixed** by the Executive Council unless some other date has been fixed by the Court in respect of any year. (2) At an annual meeting of the Court, a report on the working of the University during the previous year, together with a statement of the receipts and expenditure, the balance sheet as audited, and the financial estimates for the next year shall be presented. (3) A copy of the statement of receipts and expenditure, the balance sheet and the financial estimates referred to in clause (2) shall be sent to every member of the Court at least seven days before the date of the annual meeting. (4) Special meetings of the Court may be convened by the Executive Council or the Vice-Chancellor or if there is no Vice-Chancellor, the Pro-Vice-Chancellor or if there is no Pro-Vice-Chancellor, by the Registrar. (5) Eleven members of the Court shall form a quorum for a meeting of the Court. **11. Quorum for meeting of the Executive Council.—Seven members of the Executive Council shall** form a quorum for a meeting of the Executive Council. **12. Powers and functions of the Executive Council.—(1) The Executive Council shall have the** power of management and administration of the revenues and property of the University and the conduct of all administrative affairs of the University not otherwise provided for. (2) Subject to the provisions of this Act, the Statutes and the Ordinances, the Executive Council shall, in addition to all other powers vested in it, have the following powers, namely:— (i) to create teaching and other academic posts, to determine the number and emoluments of such posts and to define the duties and conditions of service of Professors, Readers, Lecturers and other academic staff: 22 ----- Provided that no action shall be taken by the Executive Council in respect of the number and qualifications of teachers and other academic staff otherwise than after consideration of the recommendations of the Academic Council; (ii) to appoint such Professors, Readers, Lecturers and other academic staff, as may be necessary, on the recommendation of the Selection Committee constituted for the purpose and to fill-up temporary vacancies therein; (iii) to recognise persons as University recognised teachers in the manner prescribed by the Ordinances; (iv) to create administrative, ministerial and other necessary posts (including Chairs) and to make appointments thereto in the manner prescribed by the Ordinances; (v) to grant leave of absence to any officer of the University other than the Chancellor and the Vice-Chancellor, and to make necessary arrangements for the discharge of the functions of such officer during his absence; (vi) to regulate and enforce discipline among employees in accordance with the Statutes and the Ordinances; (vii) to manage and regulate the finances, accounts, investments, property, business and all other administrative affairs of the University and for that purpose to appoint such agents as it may think fit; (viii) to fix limits on the total recurring and the total non-recurring expenditure for a year on the recommendation of the Finance Committee; (ix) to invest any money belonging to the University, including any unapplied income, in such stocks, funds, shares or securities, from time to time as it may think fit or in the purchase of immovable property in India, with the like powers of varying such investment from time to time; (x) to transfer or accept transfers of any movable or immovable property on behalf of the University; (xi) to provide buildings, premises, furniture and apparatus and other means needed for carrying on the work of the University; (xii) to enter into, vary, carry out and cancel contracts on behalf of the University; (xiii) to entertain, adjudicate upon, and if thought fit, to redress any grievances of the employees and students of the University who may, for any reason, feel aggrieved; (xiv) to appoint examiners and moderators and, if necessary, to remove them, and to fix their fees, emoluments and travelling and other allowances, after consulting the Academic Council; (xv) to select a common seal for the University and provide for the custody and use of such seal; (xvi) to make such special arrangements as may be necessary for the residence of women students; (xvii) to institute fellowships, scholarships, studentships, medals and prizes; (xviii) to provide for the appointment of Visiting Professors, Emeritus Professors, Consultants and Scholars and determine the terms and conditions of such appointments; and (xix) to exercise such other powers and perform such other duties as may be conferred or imposed on it by the Act or the Statutes. **13. Quorum for meetings of the Academic Council.—Nine members of the Academic Council shall** form a quorum for a meeting of the Academic Council. 23 ----- **14. Powers and functions of the Academic Council.—Subject to the provisions of this Act, the** Statutes and the Ordinances, the Academic Council shall, in addition to all other powers vested in it, have the following powers, namely:— (a) to exercise general supervision over the academic policies of the University and to give directions regarding methods of instruction, co-ordination of teaching among the Colleges and the Institutions, evaluation of research and improvement of academic standards; (b) to bring about and promote inter-Faculty co-ordination and to establish or appoint such committees or boards as may be deemed necessary for the purpose; (c) to consider matters of general academic interest either on its own initiative, or on a reference by a Faculty or the Executive Council, and to take appropriate action thereon; and (d) to frame such Regulations and rules consistent with the Statutes and the Ordinances regarding the academic functioning of the University, discipline, residence, admissions, award of fellowships and studentships, fees, concessions, corporate life and attendance. **15. Faculties and Departments.—(1) The University shall have such Faculties as may be specified** in the Statutes. (2) Every Faculty shall have a Faculty Board and the members of the first Faculty Board shall be nominated by the Executive Council for a period of three years. (3) The composition, powers and functions of a Faculty Board shall be prescribed by the Ordinances. (4) The conduct of the meetings of a Faculty Board and the quorum required for such meetings shall be prescribed by the Ordinances. (5) (a) Every Faculty shall consist of such Departments as may be assigned to it by the Ordinances: Provided that the Executive Council may, on the recommendation of the Academic Council, establish Centres of Studies to which may be assigned such teachers of the University as the Executive Council may consider necessary. (b) Each Department shall consist of the following members, namely:— (i) Teachers of the Department; (ii) Persons conducting research in the Department; (iii) Dean of the Faculty; (iv) Honorary Professors, if any, attached to the Department; and (v) Such other persons as may be members of the Department in accordance with the provisions of the Ordinances. **16. Board of Studies.—(1) Each Department shall have a Board of Studies.** (2) The constitution of the Board of Studies and the term of office of its members shall be prescribed by the Ordinances. (3) Subject to the overall control and supervision of the Academic Council, the functions of a Board of Studies shall be to approve subjects for research for various degrees and other requirements of research degrees and to recommend to the concerned Faculty Board in the manner prescribed by the Ordinances— (a) courses of studies and appointment of examiners for courses, but excluding research degrees; (b) appointment of supervisors for research; and (c) measures for the improvement of the standard of teaching and research: 24 ----- Provided that the above functions of a Board of Studies shall, during the period of three years immediately after the commencement of the Act, be performed by the Department. **17. The Finance Committee.—(1) The Finance Committee shall consist of the following members,** namely:— (i) the Vice-Chancellor; (ii) the Pro-Vice-Chancellor; (iii) one person to be nominated by the Court; (iv) three persons to be nominated by the Executive Council, out of whom at least one shall be a member of the Executive Council; and (v) three persons to be nominated by the Visitor. (2) Five members of the Finance Committee shall form a quorum for a meeting of the Finance Committee. (3) All the members of the Finance Committee, other than ex officio members, shall hold office for a term of three years. (4) A member of the Finance Committee shall have the right to record a minute of dissent if he does not agree with any decision of the Finance Committee. (5) The Finance Committee shall meet at least thrice every year to examine the accounts and to scrutinise proposals for expenditure. (6) All proposals relating to creation of posts, and those items which have not been included in the Budget, shall be examined by the Finance Committee before they are considered by the Executive Council. (7) The annual accounts and the financial estimates of the University prepared by the Finance Officer shall be laid before the Finance Committee for consideration and comments and thereafter submitted to the Executive Council for approval. (8) The Finance Committee shall recommend limits for the total recurring expenditure and the total non-recurring expenditure for the year, based on the income and resources of the University (which, in the case of productive works, may include the proceeds of loans). **18. Selection Committees.—(1) There shall be Selection Committees for making recommendations** to the Executive Council for appointment to the posts of Professor, Reader, Lecturer, Registrar, Finance Officer, Librarian and Principals of Colleges and Institutions maintained by the University. (2) The Selection Committee for appointment to the posts specified in Column 1 of the Table below shall consist of the Vice-Chancellor, a nominee of the Visitor and the persons specified in the corresponding entry in Column 2 of the said Table: TABLE 1 2 Professor (i) The Dean of the Faculty. (ii) The Head of the Department if he is a Professor. (iii) Three persons not in the service of the University, nominated by the Executive Council, out of a panel of names recommended by the Academic Council for their special knowledge of, or interest in, the subject with which the Professor will be concerned. 25 ----- 1 2 Reader/Lecturer (i) The Head of the Department. (ii) One Professor nominated by the Vice-Chancellor. (iii) Two persons not in the service of the University, nominated by the Executive Council, out of a panel of names recommended by the Academic Council for their special knowledge of, or interest in, the subject with which the Reader/Lecturer will be concerned. Registrar/Finance Officer (i) Two members of the Executive Council nominated by it. (ii) One person not in the service of the University nominated by the Executive Council. Librarian (i) Two persons not in the service of the University who have special knowledge of the subject of the Library Science/Library Administration nominated by the Executive Council (ii) One person not in the service of the University nominated by the Executive Council. Principal of College or Institution maintained by the University. Three persons not in the service of the University of whom two shall be nominated by the Executive Council and one by the Academic Council for their special knowledge of, or interest in, a subject in which instruction is being provided by the College or Institution. Note 1.— Where the appointment is being made for an inter-disciplinary project, the head of the project shall be deemed to be the Head of the Department concerned. Note 2.— The Professor to be nominated by the Vice-Chancellor shall be a Professor concerned with the speciality for which the selection is being made and the Vice-Chancellor shall consult the Head of the Department and the Dean of Faculty before nominating the Professor. (3) The Vice-Chancellor, or in his absence the Pro-Vice-Chancellor, shall convene and preside at the meeting of the Selection Committee: Provided that the meeting of the Selection Committee shall be fixed after prior consultation with, and subject to the convenience of Visitor’s nominee and the experts nominated by the Executive Council: Provided further that the proceedings of the Selection Committee shall not be valid unless,— (a) where the number of Visitor’s nominee and the persons nominated by the Executive Council is four in all, at least three of them attend the meeting; and (b) where the number of Visitor’s nominee and the persons nominated by the Executive Council is three in all, at least two of them attend the meeting. (4) The procedure to be followed by the Selection Committee shall be laid down in the Ordinances. (5) If the Executive Council is unable to accept the recommendations made by the Selection Committee, it shall record its reasons and submit the case to the Visitor for final orders. (6) Appointments to temporary posts shall be made in the manner indicated below:— (i) If the temporary vacancy is for duration longer than one academic session, it shall be filled on the advice of the Selection Committee in accordance with the procedure indicated in the foregoing clauses: 26 ----- Provided that if the Vice-Chancellor is satisfied that in the interests of work it is necessary to fill the vacancy, the appointment may be made on a purely temporary basis on the advice of a local Selection Committee referred to in sub-clause (ii) for a period not exceeding six months. (ii) If the temporary vacancy is for a period less than a year, an appointment to such vacancy shall be made on the recommendation of a local Selection Committee consisting of the Dean of the Faculty concerned, the Head of the Department and a nominee of the Vice-Chancellor: Provided that if the same person holds the offices of the Dean and the Head of the Department, the Selection Committee may contain two nominees of the Vice-Chancellor: Provided further that in the case of sudden casual vacancies of teaching posts caused by death or any other reason, the Dean may, in consultation with the Head of the Department concerned, make a temporary appointment for a month and report to the Vice-Chancellor and the Registrar about such appointment. (iii) No teacher appointed temporarily shall, if he is not recommended by a regular Selection Committee for appointment under the Statutes, be continued in service on such temporary employment, unless he is subsequently selected by a local Selection Committee or a regular Selection Committee, for a temporary or permanent appointment, as the case may be. **19. Special mode of appointment.—(1) Notwithstanding anything contained in Statute 18, the** Executive Council may invite a person of high academic distinction and professional attainments to accept a post of Professor or any other equivalent academic post in the University on such terms and conditions as it deems fit and on the person agreeing to do so, appoint him to the post. (2) The Executive Council may appoint a teacher or any other academic staff working in any other University or organisation for undertaking a joint project in accordance with the manner laid down in the Ordinances. **20. Appointment for a fixed tenure.—The Executive Council may appoint a person selected in** accordance with the procedure laid down in Statute 18 for a fixed tenure on such terms and conditions as it deems fit. **21. Recognised teachers.—(1) The qualifications of recognised teachers shall be such as may be** prescribed by the Ordinances. (2) All applications for the recognition of teachers shall be made in such manner as may be laid down by the Ordinances. (3) No teacher shall be recognised as a teacher except on the recommendation of a Selection Committee constituted for the purpose in the manner laid down in the Ordinances. (4) The period of recognition of a teacher shall be determined by the Ordinances made in that behalf. (5) The Academic Council may, by a special resolution passed by a majority of not less than two thirds of the members present and voting, withdraw recognition from a teacher: Provided that no such resolution shall be passed until notice in writing has been given to the person concerned calling upon him to show cause, within such time as may be specified in the notice, why such resolution should not be passed and until his objections, if any, and any evidence he may produce in support of them have been considered by the Academic Council. **22. Committees.—(1) An authority of the University may appoint as many standing or special** Committees as it may deem fit, and may appoint to such Committees persons who are not members of such authority. (2) A Committee appointed under clause (1) may deal with any subject delegated to it subject to subsequent confirmation by the authority appointing it. 27 ----- **23. Terms and conditions of service and code of conduct of the teachers, etc.—(1) All the teachers** and other academic staff of the University shall, in the absence of any agreement to the contrary, be governed by the terms and conditions of service and code of conduct as are specified in the Statutes, the Ordinances and the Regulations. (2) The emoluments of members of the academic staff shall be such as may be prescribed by the Ordinances. (3) Every teacher and member of the academic staff of the University shall be appointed on a written contract, the form of which shall be prescribed by the Ordinances. (4) A copy of every contract referred to in clause (3) shall be deposited with the Registrar. **24. Terms and conditions of service and code of conduct of other employees.—(1) All the** employees of the University, other than the teachers and other academic staff shall, in the absence of any contract to the contrary, be governed by the terms and conditions of service and code of conduct as are specified in the Statutes, the Ordinances and the Regulations. (2) The manner of appointment and emoluments of employees, other than the teachers and other academic staff, shall be such as may be prescribed by the Ordinances. **25. Seniority list.—(1) Whenever, in accordance with the Statutes, any person is to hold an office or** be a member of an authority of the University by rotation according to seniority, such seniority shall be determined according to the length of continuous service of such person in his grade and in accordance with such other principles as the Executive Council may, from time to time, prescribe. (2) It shall be the duty of the Registrar to prepare and maintain in respect of each class of persons to whom the provisions of these Statutes apply, a complete and up-to-date seniority list in accordance with the provisions of clause (1). (3) If two or more persons have equal length of continuous service in a particular grade or the relative seniority of any person or persons is otherwise in doubt, the Registrar may, on his own motion and shall, at the request of any such person, submit the matter to the Executive Council whose decision thereon shall be final. **26. Removal of employees of the University.—(1) Where there is an allegation of misconduct** against a teacher, a member of the academic staff or other employee of the University, the Vice-Chancellor, in the case of the teacher or a member of the academic staff, and the authority competent to appoint (hereinafter referred to as the appointing authority) in the case of other employee may, by order in writing, place such teacher, member of the academic staff or other employee, as the case may be, under suspension and shall forthwith report to the Executive Council the circumstances in which the order was made: Provided that the Executive Council may, if it is of the opinion, that the circumstances of the case do not warrant the suspension of the teacher or a member of the academic staff, revoke such order. (2) Notwithstanding anything contained in the terms of the contract of appointment or of any other terms and conditions of service of the employees, the Executive Council in respect of teachers and other academic staff, and the appointing authority in respect of other employees, shall have the power to remove a teacher or a member of the academic staff or other employee, as the case may be, on grounds of misconduct. (3) Save as aforesaid, the Executive Council, or as the case may be, the appointing authority, shall not be entitled to remove any teacher, member of the academic staff or other employee except for a good cause and after giving three months’ notice or on payment of three months’ salary in lieu thereof. 28 ----- (4) No teacher, member of the academic staff or other employee shall be removed under clause (2) or clause (3) unless he has been given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. (5) The removal of a teacher, member of the academic staff or other employee shall take effect from the date on which the order of removal is made: Provided that where the teacher, member of the academic staff or other employee is under suspension at the time of his removal, such removal shall take effect from the date on which he was placed under suspension. (6) Notwithstanding anything contained in the foregoing provisions of this Statute, a teacher, member of the academic staff or other employee may resign,— (a) if he is a permanent employee, only after giving three months’ notice in writing to the Executive Council or the appointing authority, as the case may be, or by paying three months’ salary in lieu thereof; (b) if he is not a permanent employee, only after giving one month’s notice in writing to the Executive Council or, as the case may be, the appointing authority or by paying one month’s salary in lieu thereof: Provided that such resignation shall take effect only on the date on which the resignation is accepted by the Executive Council or the appointing authority, as the case may be. **27. Honorary degrees.—(1) The Executive Council may, on the recommendation of the Academic** Council and by a resolution passed by a majority of not less than two-thirds of the members present and voting, make proposals to the Visitor for the conferment of honorary degrees: Provided that in case of emergency, the Executive Council may, on its own motion, make such proposals. (2) The Executive Council may, by a resolution passed by a majority of not less than two-thirds of the members present and voting, withdraw, with the previous sanction of the Visitor, any honorary degree conferred by the University. **28. Withdrawal of degrees, etc.—The Executive Council may, by a special resolution passed by a** majority of not less than two-thirds of the members present and voting, withdraw any degree or academic distinction conferred on, or any certificate or diploma granted to, any person by the University for good and sufficient cause: Provided that no such resolution shall be passed until a notice in writing has been given to that person calling upon him to show cause within such time as may be specified in the notice why such a resolution should not be passed and until his objections, if any, and any evidence he may produce in support of them, have been considered by the Executive Council. **29. Maintenance of discipline among students of the University.—(1) All powers relating to the** maintenance of discipline and disciplinary action in relation to the students of the University shall vest in the Vice-Chancellor. (2) There shall be a Proctor of the University to assist the Vice-Chancellor in the exercise of the powers referred to in clause (1), who shall be appointed by the Executive Council from amongst the Professors and Readers in the manner prescribed by the Ordinances. (3) The Vice-Chancellor may delegate all or any of the powers referred to in clause (1), as he deems proper, to the Proctor and to such other officers as he may specify in this behalf. (4) Without prejudice to the generality of his powers relating to the maintenance of discipline and taking such action, as may seem to him appropriate for the maintenance of discipline, the Vice-Chancellor 29 ----- may, in exercise of such powers, by order, direct that any student or students be expelled or rusticated, for a specified period, or be not admitted to a course or courses of study in a College, Institution or Department or a Faculty of the University for a stated period, or be punished with fine for an amount to be specified in the order, or be debarred from taking an examination or examinations conducted by the University, College, Institution or Department or a Faculty for one or more years, or that the results of the student or students concerned in the examination or examinations in which he or they have appeared be cancelled. (5) The Principals of Colleges, Institutions, Deans of Faculties and Heads of teaching Departments in the University shall have the authority to exercise all such disciplinary powers over the students in their respective Colleges, Institutions, Faculties and teaching Departments in the University, as may be necessary for the proper conduct of such Colleges, Institutions, Faculties and teaching Departments. (6) Without prejudice to the powers of the Vice-Chancellor and the Principal and other persons specified in clause (5), detailed rules of discipline and proper conduct shall be made by the University. The Principals of Colleges, Institutions, Deans of Faculties and Heads of teaching Departments in the University may also make such supplementary rules as they deem necessary for the purposes stated therein. (7) At the time of admission, every student shall be required to sign a declaration to the effect that he submits himself to the disciplinary jurisdiction of the Vice-Chancellor and other authorities of the University. **30. Maintenance of discipline among students of College, or an Institution not maintained by** **University.—All powers relating to discipline and disciplinary action in relation to students of a College** or an Institution not maintained by the University, shall vest in the Principal of the College or Institution, as the case may be, in accordance with the procedure prescribed by the Ordinances. **31. Admission of Colleges, etc., to the privileges of the University.—(1) Colleges and other** Institutions situated within the jurisdiction of the University may be admitted to such privileges of the University as the Executive Council and the College Development Council may decide on the following conditions, namely:— (i) Every such College or Institution shall have a regularly constituted Governing Body, consisting of not more than fifteen persons approved by the Executive Council and including among others, two teachers of the University to be nominated by the Executive Council and three representatives of the teaching staff of whom the Principal of the College or Institution shall be one. The procedure for appointment of members of the Governing Body and other matters affecting the management of a College or an Institution shall be prescribed by the Ordinances: Provided that the said condition shall not apply in the case of Colleges and Institutions maintained by Government which shall, however, have an Advisory Committee consisting of not more than fifteen persons which shall consist of among others, three teachers including the Principal of the College or Institution, and two teachers of the University nominated by the Executive Council. (ii) Every such College or Institution shall satisfy the Executive Council and the College Development Council on the following matters, namely:— (a) the suitability and adequacy of its accommodation and equipment for teaching; (b) the qualifications and adequacy of its teaching staff and the conditions of their service; (c) the arrangements for the residence, welfare, discipline and supervision of students; (d) the adequacy of financial provision made for the continued maintenance of the College or Institution; and (e) such other matters as are essential for the maintenance of the standards of University education. 30 ----- (iii) No College or Institution shall be admitted to any privileges of the University except on the recommendation of the Academic Council made after considering the report of a Committee of Inspection appointed for the purpose by the Academic Council. (iv) Colleges and Institutions desirous of admission to any privileges of the University shall be required to intimate their intention to do so in writing so as to reach the Registrar not later than the 15th August, preceding the year from which permission applied for is to have effect. (v) A College or an Institution shall not, without the previous permission of the Executive Council, College Development Council and the Academic Council, suspend instruction in any subject or course of study which it is authorised to teach and teaches. (2) Appointment to the teaching staff and Principal of Colleges or Institutions admitted to the privileges of the University shall be made in the manner prescribed by the Ordinances: Provided that nothing in this clause shall apply to Colleges and Institutions maintained by Government. (3) The service conditions of the administrative and other non-academic staff of every College or Institution referred to in clause (2) shall be such as may be laid down in the Ordinances: Provided that nothing in this clause shall apply to Colleges and Institutions maintained by Government. (4) Every College or Institution admitted to the privileges of the University shall be inspected at least once in every two academic years by a Committee appointed by the Academic Council, and the report of the Committee shall be submitted to the Academic Council, which shall forward the same to the College Development Council and Executive Council with such recommendations as it may deem fit to make. (5) The College Development Council and the Executive Council, after considering the report and the recommendations, if any, of the Academic Council, shall forward a copy of the report to the Governing Body of the College or Institution with such remarks, if any, as they may deem fit for suitable action. (6) The Executive Council may, after consulting the College Development Council and Academic Council, withdraw any privileges granted to a College or an Institution, at any time it considers that the College or Institution does not satisfy any of the conditions on the fulfilment of which the College or Institution was admitted to such privileges: Provided that before any privileges are so withdrawn, the Governing Body of the College or Institution concerned shall be given an opportunity to represent to the Executive Council as to why such action should not be taken. (7) Subject to the conditions set forth in clause (1), the Ordinances may prescribe— (i) such other conditions as may be considered necessary; and (ii) the procedure for the admission of Colleges and Institutions to the privileges of the University and for the withdrawal of those privileges. **32. Convocations.—Convocations of the University for the conferring of degrees or for other** purposes shall be held in such manner as may be prescribed by the Ordinances. **33. Acting Chairman of meetings.—Where no provision is made for a President or Chairman to** preside over a meeting of any authority of the University or any Committee of such authority or when the President or Chairman so provided for is absent, the members present shall elect one from among themselves to preside at such meeting. **34. Resignation.—Any member, other than an ex officio member of the Court, the Executive Council,** the Academic Council or any other authority of the University or any Committee of such authority may 31 ----- resign by letter addressed to the Registrar and the resignation shall take effect as soon as such letter is received by the Registrar. **35. Disqualifications.—(1) A person shall be disqualified for being chosen as, and for being, a** member of any of the authorities of the University— (i) if he is of unsound mind; (ii) if he is an undischarged insolvent; (iii) if he has been convicted by a court of law of an offence involving moral turpitude and sentenced in respect thereof to imprisonment for not less than six months. (2) If any question arises as to whether a person is or had been subjected to any of the disqualifications mentioned in clause (1), the question shall be referred to the Visitor and his decision shall be final and no suit or other proceeding shall lie in any civil court against such decision. **36. Residence condition for membership and office.—Notwithstanding anything contained in the** Statutes, a person who is not ordinarily resident in India shall not be eligible to be an officer of the University or a member of any authority of the University. **37. Membership of authorities by virtue of membership of other bodies.—Notwithstanding** anything contained in the Statutes, a person who holds any post in the University or is a member of any authority or body of the University in his capacity as a member of a particular authority or body or as the holder of a particular appointment shall hold such office or membership only for so long as he continues to be a member of that particular authority or body or the holder of that particular appointment, as the case may be. **38. Alumni Association.—(1) There shall be an Alumni Association for the University.** (2) The subscription for membership of the Alumni Association shall be prescribed by the Ordinances. (3) No member of the Alumni Association shall be entitled to vote or stand for election unless he has been a member of the Association for at least one year prior to the date of election and is a degree holder of the University of at least five years standing: Provided that the condition relating to the completion of one year’s membership shall not apply in the case of the first election. **39. Students’ Council.—(1) There shall be constituted in the University, a Students’ Council for** every academic year, consisting of— (i) the Dean of Students’ Welfare who shall be the Chairman of the Students’ Council; (ii) twenty students to be nominated by the Academic Council on the basis of merit in studies, sports and extra-curricular activities; and (iii) such number of elected representatives of students as may be specified by the Academic Council: Provided that any student of the University shall have the right to bring up any matter concerning the University before the Students’ Council if so permitted by the Chairman, and he shall have the right to participate in the discussions at any meeting when the matter is taken up for consideration. (2) The functions of the Students’ Council shall be to make suggestions to the appropriate authorities of the University in regard to the programmes of studies students’ welfare and other matters of importance, in regard to the working of the University in general and such suggestions shall be made on the basis of consensus of opinion. 32 ----- (3) The Students’ Council shall meet at least once in an academic year preferably in the beginning of that year. **40. Ordinances, how made.—(1) The first Ordinances made Under sub-section (2) of section 31 may** be amended, repealed or added to at any time by the Executive Council in the manner specified in the following clauses. (2) No Ordinance in respect of the matters enumerated in sub-section (1) of Section 31 shall be made by the Executive Council unless a draft of such Ordinance has been proposed by the Academic Council. (3) The Executive Council shall not have power to amend any draft of any Ordinance proposed by the Academic Council under clause (2), but may reject the proposal or return the draft to the Academic Council for re-consideration, either in whole or in part, together with any amendment which the Executive Council may suggest. (4) Where the Executive Council has rejected or returned the draft of an Ordinance proposed by the Academic Council, the Academic Council may consider the question afresh and in case the original draft is reaffirmed by a majority of not less than two-thirds of the members present and voting and more than half the total number of members of the Academic Council, the draft may be sent back to the Executive Council which shall either adopt it or refer it to the Visitor whose decision shall be final. (5) Every Ordinance made by the Executive Council shall come into effect immediately. (6) Every Ordinance made by the Executive Council shall be submitted to the Visitor within two weeks from the date of its adoption. (7) The Visitor shall have the power to direct the University to suspend the operation of any Ordinance. (8) The Visitor shall inform the Executive Council about his objection to the Ordinance referred to in clause (7) and may, after receiving the comments of the University, either withdraw the order suspending the Ordinance or disallow the Ordinance, and his decision shall be final. **41. Regulations.—(1) The authorities of the University may make Regulations consistent with the** Act, the Statutes and the Ordinances for the following matters, namely:— (i) laying down the procedure to be observed at their meetings and the number of members required to form a quorum; (ii) providing for all matters which are required by the Act, the Statutes or the Ordinances to be prescribed by Regulations; (iii) providing for all other matters solely concerning such authorities or committees appointed by them and not provided for by the Act, the Statutes or the Ordinances. (2) Every authority of the University shall make Regulations providing for the giving of notice to the members of such authority of the dates of meetings and of the business to be considered at meetings and for the keeping of a record of the proceedings of meetings. (3) The Executive Council may direct the amendment in such manner as it may specify of any Regulation made under the Statutes or the annulment of any such Regulation. **42. Delegation of Powers.—Subject to the provisions of the Act and the Statutes, any officer or** authority of the University may delegate his or its powers to any other officer or authority or person under his or its respective control and subject to the condition that overall responsibility for the exercise of the powers so delegated shall continue to vest in the officer or authority delegating such powers. 33 -----

10-Jan-2007

06

The Prohibition of Child Marriage Act, 2006

https://www.indiacode.nic.in/bitstream/123456789/2055/1/A2007-06.pdf

central

# THE PROHIBITION OF CHILD MARRIAGE ACT, 2006 _______ ARRANGEMENT OF SECTIONS ________ SECTIONS 1. Short title, extent and commencement. 2. Definitions. 3. Child marriages to be voidable at the option of contracting party being a child. 4. Provision for maintenance and residence to female contracting party to child marriage. 5. Custody and maintenance of children of child marriages. 6. Legitimacy of children born of child marriages. 7. Power of district court to modify orders issued under section 4 or section 5. 8. Court to which petition should be made. 9. Punishment for male adult marrying a child. 10. Punishment for solemnising a child marriage. 11. Punishment for promoting or permitting solemnisation of child marriages. 12. Marriage of a minor child to be void in certain circumstances. 13. Power of court to issue injunction prohibiting child marriages. 14. Child marriages in contravention of injunction orders to be void. 15. Offences to be cognizable and non-bailable. 16. Child Marriage Prohibition Officers. 17. Child Marriage Prohibition Officers to be public servants. 18. Protection of action taken in good faith. 19. Power of State Government to make rules. 20. Amendment of Act No. 25 of 1955. 21. Repeal and savings. 1 ----- # THE PROHIBITION OF CHILD MARRIAGE ACT, 2006 ACTNO. 6 OF2007 [10th January, 2007.] # An Act to provide for the prohibition of solemnisation of child marriages and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-seventh Year of the Republic of India as follows:— **1. Short title, extent and commencement.—(1) This Act may be called the Prohibition of Child** Marriage Act, 2006. (2) It extends to the whole of India[1]***; and it applies also to all citizens of India without and beyond India: Provided that nothing contained in this Act shall apply to the Renoncants of the Union territory of Pondicherry. (3) It shall come into force on such date[2] as the Central Government may, by notification in the Official Gazette, appoint; and different dates may be appointed for different States and any reference in any provision to the commencement of this Act shall be construed in relation to any State as a reference to the coming into force of that provision in that State. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “child” means a person who, if a male, has not completed twenty-one years of age, and if a female, has not completed eighteen years of age; (b) “child marriage” means a marriage to which either of the contracting parties is a child; (c) “contracting party”, in relation to a marriage, means either of the parties whose marriage is or is about to be thereby solemnised; (d) “Child Marriage Prohibition Officer” includes the Child Marriage Prohibition Officer appointed under sub-section (1) of section 16; (e) “district court” means, in any area for which a Family Court established under section 3 of the Family Courts Act, 1984 (66 of 1984) exists, such Family Court, and in any area for which there is no Family Court but a city civil court exists, that court and in any other area, the principal civil court of original jurisdiction and includes any other civil court which may be specified by the State Government, by notification in the Official Gazette, as having jurisdiction in respect of the matters dealt with in this Act; (f) “minor” means a person who, under the provisions of the Majority Act, 1875 (9 of 1875), is to be deemed not to have attained his majority. **3. Child marriages to be voidable at the option of contracting party being a child.—(1) Every** child marriage, whether solemnised before or after the commencement of this Act, shall be voidable at the option of the contracting party who was a child at the time of the marriage: Provided that a petition for annulling a child marriage by a decree of nullity may be filed in the district court only by a contracting party to the marriage who was a child at the time of the marriage. (2) If at the time of filing a petition, the petitioner is a minor, the petition may be filed through his or her guardian or next friend along with the Child Marriage Prohibition Officer. (3) The petition under this section may be filed at any time but before the child filing the petition completes two years of attaining majority. 1. The words “except the State of Jammu and Kashmir” omitted by Act 34 of 2019, s. 95 and the Fifth Schedule (w.e.f. 31-10-2019). 2. 1st November, 2007, vide notification No. S.O. 1850(E), dated 30th October, 2007, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 2 ----- (4) While granting a decree of nullity under this section, the district court shall make an order directing both the parties to the marriage and their parents or their guardians to return to the other party, his or her parents or guardian, as the case may be, the money, valuables, ornaments and other gifts received on the occasion of the marriage by them from the other side, or an amount equal to the value of such valuables, ornaments, other gifts and money: Provided that no order under this section shall be passed unless the concerned parties have been given notices to appear before the district court and show cause why such order should not be passed. **STATE AMENDMENTS** **Karnataka** **Substitution of section 3.—In the Prohibition of Child Marriage Act, 2006 (Central Act 6 of 2007)** (hereinafter referred to as the principal Act), In section 3, after sub-section (1) the following shall be inserted, namely;— “(1A) Notwithstanding anything contained in sub-section (1) every child marriage solemnized on or after the date of coming into force of the Prohibition of Child Marriage (Karnataka Amendment) Act, 2016 shall be void abinitio”. [Vide Karnataka Act 26 of 2017, s. 2]. **4. Provision for maintenance and residence to female contracting party to child marriage.—(1)** While granting a decree under section 3, the district court may also make an interim or final order directing the male contracting party to the child marriage, and in case the male contracting party to such marriage is a minor, his parent or guardian to pay maintenance to the female contracting party to the marriage until her remarriage. (2) The quantum of maintenance payable shall be determined by the district court having regard to the needs of the child, the lifestyle enjoyed by such child during her marriage and the means of income of the paying party. (3) The amount of maintenance may be directed to be paid monthly or in lump sum. (4) In case the party making the petition under section 3 is the female contracting party, the district court may also make a suitable order as to her residence until her remarriage. **5. Custody and maintenance of children of child marriages.—(1) Where there are children born of** the child marriage, the district court shall make an appropriate order for the custody of such children. (2) While making an order for the custody of a child under this section, the welfare and best interests of the child shall be the paramount consideration to be given by the district court. (3) An order for custody of a child may also include appropriate directions for giving to the other party access to the child in such a manner as may best serve the interests of the child, and such other orders as the district court may, in the interest of the child, deem proper. (4) The district court may also make an appropriate order for providing maintenance to the child by a party to the marriage or their parents or guardians. **6. Legitimacy of children born of child marriages.—Notwithstanding that a child marriage has** been annulled by a decree of nullity under section 3, every child begotten or conceived of such marriage before the decree is made, whether born before or after the commencement of this Act, shall be deemed to be a legitimate child for all purposes. **7. Power of district court to modify orders issued under section 4 or section 5.—The district court** shall have the power to add to, modify or revoke any order made under section 4 or section 5 and if there is any change in the circumstances at any time during the pendency of the petition and even after the final disposal of the petition. **8. Court to which petition should be made.—For the purpose of grant of reliefs under sections 3, 4** and 5, the district court having jurisdiction shall include the district court having jurisdiction over the 3 ----- place where the defendant or the child resides, or where the marriage was solemnised or where the parties last resided together or the petitioner is residing on the date of presentation of the petition. **9. Punishment for male adult marrying a child.—Whoever, being a male adult above eighteen** years of age, contracts a child marriage shall be punishable with rigorous imprisonment which may extend to two years or with fine which may extend to one lakh rupees or with both. **STATE AMENDMENTS** **Karnataka** **Amendment of section 9.—In section 9 of the principal Act, for the words “be punishable with** rigorous imprisonment which may extend to two years”, the words “be punishable with rigorous imprisonment of not less one year which may extend up to two years” shall be substituted. [Vide Karnataka Act 26 of 2017, s. 3]. **10. Punishment for solemnising a child marriage.—Whoever performs, conducts, directs or abets** any child marriage shall be punishable with rigorous imprisonment which may extend to two years and shall be liable to fine which may extend to one lakh rupees unless he proves that he had reasons to believe that the marriage was not a child marriage. **STATE AMENDMENTS** **Karnataka** **Amendment of section 10.—In section 10 of the principal Act, for the words “be punishable with** rigorous imprisonment which may extend to two years,” the words “be punishable with rigorous imprisonment of not less than one year which may extend up to two years” shall be substituted. [Vide Karnataka Act 26 of 2017, s. 4]. **11. Punishment for promoting or permitting solemnisation of child marriages.—(1) Where a** child contracts a child marriage, any person having charge of the child, whether as parent or guardian or any other person or in any other capacity, lawful or unlawful, including any member of an organisation or association of persons who does any act to promote the marriage or permits it to be solemnised, or negligently fails to prevent it from being solemnised, including attending or participating in a child marriage, shall be punishable with rigorous imprisonment which may extend to two years and shall also be liable to fine which may extend up to one lakh rupees: Provided that no woman shall be punishable with imprisonment. (2) For the purposes of this section, it shall be presumed, unless and until the contrary is proved, that where a minor child has contracted a marriage, the person having charge of such minor child has negligently failed to prevent the marriage from being solemnised. **STATE AMENDMENTS** **Karnataka** **Amendment of section 11.—In section 11 of the principal Act, in sub-section (1),—** (a) for the words “be punishable with rigorous imprisonment which may extend to two years”, the words “be punishable with a rigorous imprisonment of not less than one year which may extend up to two years” shall be substituted. (b) proviso shall be omitted. [Vide Karnataka Act 26 of 2017, s. 5]. **12. Marriage of a minor child to be void in certain circumstances.—Where a child, being a** minor— (a) is taken or enticed out of the keeping of the lawful guardian; or (b) by force compelled, or by any deceitful means induced to go from any place; or 4 ----- (c) is sold for the purpose of marriage; and made to go through a form of marriage or if the minor is married after which the minor is sold or trafficked or used for immoral purposes, such marriage shall be null and void. **13. Power of court to issue injunction prohibiting child marriages.—(1) Notwithstanding** anything to the contrary contained in this Act, if, on an application of the Child Marriage Prohibition Officer or on receipt of information through a complaint or otherwise from any person, a Judicial Magistrate of the first class or a Metropolitan Magistrate is satisfied that a child marriage in contravention of this Act has been arranged or is about to be solemnised, such Magistrate shall issue an injunction against any person including a member of an organisation or an association of persons prohibiting such marriage. (2) A complaint under sub-section (1) may be made by any person having personal knowledge or reason to believe, and a non-governmental organisation having reasonable information, relating to the likelihood of taking place of solemnisation of a child marriage or child marriages. (3) The Court of the Judicial Magistrate of the first class or the Metropolitan Magistrate may also take _suomotu cognizance on the basis of any reliable report or information._ (4) For the purposes of preventing solemnisation of mass child marriages on certain days such as _AkshayaTrutiya, the District Magistrate shall be deemed to be the Child Marriage Prohibition Officer with_ all powers as are conferred on a Child Marriage Prohibition Officer by or under this Act. (5) The District Magistrate shall also have additional powers to stop or prevent solemnisation of child marriages and for this purpose, he may take all appropriate measures and use the minimum force required. (6) No injunction under sub-section (1) shall be issued against any person or member of any organisation or association of persons unless the Court has previously given notice to such person, members of the organisation or association of persons, as the case may be, and has offered him or them an opportunity to show cause against the issue of the injunction: Provided that in the case of any urgency, the Court shall have the power to issue an interim injunction without giving any notice under this section. (7) An injunction issued under sub-section (1) may be confirmed or vacated after giving notice and hearing the party against whom the injunction was issued. (8) The Court may either on its own motion or on the application of any person aggrieved, rescind or alter an injunction issued under sub-section (1). (9) Where an application is received under sub-section (1), the Court shall afford the applicant an early opportunity of appearing before it either in person or by an advocate and if the Court, after hearing the applicant rejects the application wholly or in part, it shall record in writing its reasons for so doing. (10) Whoever knowing that an injunction has been issued under sub-section (1) against him disobeys such injunction shall be punishable with imprisonment of either description for a term which may extend to two years or with fine which may extend to one lakh rupees or with both: Provided that no woman shall be punishable with imprisonment. **STATE AMENDMENTS** **Karnataka** **Amendment of section 13.—In section 13 of the principal Act, in sub-section (10), —** (a) for the words “of either description for a term which may extend to two years”, the words “with a minimum term of one year, which may extent up to two years” shall be substituted. (b) proviso shall be omitted. [Vide Karnataka Act 26 of 2017, s. 6]. 5 ----- **14. Child marriages in contravention of injunction orders to be void.—Any child marriage** solemnised in contravention of an injunction order issued under section 13, whether interim or final, shall be void ab initio. **15. Offences to be cognizable and non-bailable.—Notwithstanding anything contained in the Code** of Criminal Procedure, 1973 (2 of 1974), an offence punishable under this Act shall be cognizable and non-bailable. **STATE AMENDMENTS** **Karnataka** **Insertion of new section 15A.—In the principal Act, after section 15, the following shall be inserted,** namely:— **“15A. Police Officer to take cognizance of an offence suo-motto.—Every Police Officer shall take** cognizance of an offence committed in his jurisdiction under this Act, suo motto.” [Vide Karnataka Act 26 of 2017, s. 7]. **16. Child Marriage Prohibition Officers.—(1) The State Government shall, by notification in the** Official Gazette, appoint for the whole State, or such part thereof as may be specified in that notification, an officer or officers to be known as the Child Marriage Prohibition Officer having jurisdiction over the area or areas specified in the notification. (2) The State Government may also request a respectable member of the locality with a record of social service or an officer of the Gram Panchayat or Municipality or an officer of the Government or any public sector undertaking or an office bearer of any non-governmental organisation to assist the Child Marriage Prohibition Officer and such member, officer or office bearer, as the case may be, shall be bound to act accordingly. (3) It shall be the duty of the Child Marriage Prohibition Officer— (a) to prevent solemnisation of child marriages by taking such action as he may deem fit; (b) to collect evidence for the effective prosecution of persons contravening the provisions of this Act; (c) to advise either individual cases or counsel the residents of the locality generally not to indulge in promoting, helping, aiding or allowing the solemnisation of child marriages; (d) to create awareness of the evil which results from child marriages; (e) to sensitize the community on the issue of child marriages; (f) to furnish such periodical returns and statistics as the State Government may direct; and (g) to discharge such other functions and duties as may be assigned to him by the State Government. (4) The State Government may, by notification in the Official Gazette, subject to such conditions and limitations, invest the Child Marriage Prohibition Officer with such powers of a police officer as may be specified in the notification and the Child Marriage Prohibition Officer shall exercise such powers subject to such conditions and limitations, as may be specified in the notification. (5) The Child Marriage Prohibition Officer shall have the power to move the Court for an order under sections 4, 5 and 13 and along with the child under section 3. **17. Child Marriage Prohibition Officers to be public servants.—The Child Marriage Prohibition** Officers shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **18. Protection of action taken in good faith.—No suit, prosecution or other legal proceedings shall** lie against the Child Marriage Prohibition Officer in respect of anything in good faith done or intended to be done in pursuance of this Act or any rule or order made thereunder. 6 ----- **19. Power of State Government to make rules.—(1) The State Government may, by notification in** the Official Gazette, make rules for carrying out the provisions of this Act. (2) Every rule made under this Act shall, as soon as may be after it is made, be laid before the State Legislature. **20. Amendment of Act No. 25 of 1955.—In the Hindu Marriage Act, 1955, in section 18, for clause** (a), the following clause shall be substituted, namely:— “(a) in the case of contravention of the condition specified in clause (iii) of section 5, with rigorous imprisonment which may extend to two years or with fine which may extend to one lakh rupees, or with both”. **21. Repeal and savings.—(1) The Child Marriage Restraint Act, 1929 (19 of 1929) is hereby** repealed. (2) Notwithstanding such repeal, all cases and other proceedings pending or continued under the said Act at the commencement of this Act shall be continued and disposed of in accordance with the provisions of the repealed Act, as if this Act had not been passed. ________ 7 -----

10-Jan-2007

10

The Sikkim University Act, 2006

https://www.indiacode.nic.in/bitstream/123456789/2049/1/200710.pdf

central

# THE SIKKIM UNIVERSITY ACT, 2006 __________________ # ARRANGEMENT OF SECTIONS __________________ SECTIONS 1. Short title and commencement. 2. Definitions. 3. Establishment of the University. 4. Objects of the University. 5. Powers of the University. 6. Jurisdiction. 7. University open to all classes, castes and creed. 8. The Visitor. 9. The Chief Rector. 10. Officers of the University. 11. The Chancellor. 12. The Vice-Chancellor. 13. The Pro-Vice Chancellor. 14. The Deans of Schools. 15. The Registrar. 16. The Finance Officer. 17. The Controller of Examinations. 18. The Librarian. 19. Other officers. 20. Authorities of the University. 21. The Court. 22. The Executive Council. 23. The Academic Council. 24. The College Development Council. 25. The Board of Studies. 26. The Finance Committee. 27. Other authorities of the University. 28. Powers to make Statutes. 29. Statutes how to be made. 30. Power to make Ordinances. 31. Regulations. 32. Annual report. 33. Annual accounts. 34. Returns and information. 35. Conditions of service of employees. 36. Procedure of appeal and arbitration in disciplinary cases against students. 37. Right to appeal. 38. Provident and pension funds. 39. Disputes as to constitution of authorities and bodies. 40. Filling of casual vacancies. 41. Proceedings of authorities or bodies not invalidated by vacancies. 1 ----- SECTIONS 42. Protection of action taken in good faith. 43. Mode of proof of University record. 44. Power to remove difficulties. 45. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid before Parliament. 46. Transitional provisions. THE SCHEDULE. 2 ----- # THE SIKKIM UNIVERSITY ACT, 2006 ACT NO. 10 OF 2007 [10th January, 2007.] # An Act to establish and incorporate a teaching and affiliating University in the State of Sikkim and to provide for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-seventh Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the Sikkim University Act, 2006.** (2) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.—In this Act, and in all Statutes made hereunder, unless the context otherwise** requires,— (a) "Academic Council" means the Academic Council of the University; (b) "academic staff" means such categories of staff as are designated as academic staff by the Ordinances; (c) "Affiliated College" means a college admitted to the privileges of the University; (d) "Board of Studies" means the Board of Studies of the University; (e) "Chancellor", "Vice-Chancellor", and "Pro-Vice-Chancellor" mean, respectively, the Chancellor, Vice-Chancellor and Pro-Vice-Chancellor of the University; (f) "College Development Council" means the College Development Council of the University; (g) "Constituent College" means a college maintained by the University; (h) "Court" means the Court of the University; (i) "Department" means a Department of Studies and includes a Centre of Studies; (j) "distance education system" means the system of imparting education through any means of communication, such as broadcasting, telecasting, correspondence courses, seminars, contact programmes or the combination of any two or more such means; (k) "employee" means any person appointed by the University and includes teachers and other staff of the University; (l) "Executive Council" means the Executive Council of the University; (m) "Hall" means a unit of residence or of corporate life for the students of the University, or of a College or an Institution, maintained by the University; (n) "Institution" means an academic institution, not being a College, maintained by, or admitted to the privileges of, the University; (o) "Principal" means the Head of a College or an Institution maintained by the University and includes, where there is no Principal, the person for the time being duly appointed to act as Principal, and in the absence of the Principal, or the acting Principal, a Vice-Principal duly appointed as such; 1. 2nd July 2007, vide notification No. S.O. 1053(E), dated 29th June, 2007, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 3 ----- (p) "recognised teachers" means such persons as may be recognised by the University for the purpose of imparting instructions in a College or an Institution admitted to the privileges of the University; (q) "Regulations" means the Regulations made by any authority of the University under this Act for the time being in force; (r) "School" means a School of Studies of the University; (s) "Statutes" and "Ordinances" mean, respectively, the Statutes and the Ordinances of the University for the time being in force; (t) "teachers of the University" means Professors, Readers, Lecturers and such other persons as may be appointed for imparting instruction or conducting research in the University or in any College or Institution maintained by the University and are designated as teachers by the Ordinances; (u) "University" means the Sikkim University established and incorporated as a University under this Act. **3. Establishment of the University.—(1) There shall be established, in the State of Sikkim, a** University by the name of "Sikkim University". (2) The headquarters of the University shall be at Gangtok. (3) The first Chancellor, the first Vice-Chancellor and the first members of the Court, the Executive Council and the Academic Council, and all persons who may hereafter become such officers or members, so long as they continue to hold such office or membership, are hereby constituted a body corporate by the name of "Sikkim University". (4) The University shall have perpetual succession and a common seal, and shall sue and be sued by the said name. **4. Objects of the University.—The objects of the University shall be to disseminate and advance** knowledge by providing instructional and research facilities in such branches of learning as it may deem fit; to make provisions for integrated courses in humanities, natural and physical sciences, social sciences, forestry and other allied disciplines in the educational programmes of the University; to take appropriate measures for promoting innovations in teaching-learning process, inter-disciplinary studies and research; to educate and train manpower for the development of the State of Sikkim; and to pay special attention to the improvement of the social and economic conditions and welfare of the people of that State, their intellectual, academic and cultural development. **5. Powers of the University.—The University shall have the following powers, namely:—** (i) to provide for instructions in such branches of learning as the University may, from time to time, determine and to make provisions for research and for the advancement and dissemination of knowledge; (ii) to grant, subject to such conditions as the University may determine, diplomas or certificates to, and confer degrees or other academic distinctions on the basis of examinations, evaluation or any other method of testing, on persons, and to withdraw any such diplomas, certificates, degrees or other academic distinctions for good and sufficient cause; (iii) to organise and to undertake extramural studies, training and extension services; (iv) to confer honorary degrees or other distinctions in the manner prescribed by the Statutes; 4 ----- (v) to provide facilities through the distance education system to such persons as it may determine; (vi) to institute Principalships, Professorships, Readerships, Lecturerships and other teaching or academic positions, required by the University and to appoint persons to such Principalships, Professorships, Readerships, Lecturerships or other teaching or academic positions; (vii) to recognise an Institution of higher learning for such purposes as the University may determine and to withdraw such recognition; (viii) to recognise persons for imparting instructions in any College or Institution admitted to the privileges of the University; (ix) to appoint persons working in any other University or educational institution as teachers of the University for a specified period; (x) to create administrative, ministerial and other posts and to make appointments thereto; (xi) to co-operate or collaborate or associate with any other University or authority or Institution of higher learning in such manner and for such purposes as the University may determine; (xii) to establish, with the prior approval of the Central Government, such Centres and specialised laboratories or other units for research and instruction as are, in the opinion of the University, necessary for the furtherance of its objects; (xiii) to institute and award fellowships, scholarships, studentships, medals and prizes; (xiv) to establish and maintain Colleges, Institutions and Halls; (xv) to make provision for research and advisory services and for that purpose to enter into such arrangements with other institutions, industrial or other organisations, as the University may deem necessary; (xvi) to organise and conduct refresher courses, workshops, seminars and other programmes for teachers, evaluators and other academic staff; (xvii) to admit to its privileges Colleges and Institutions within the State of Sikkim not maintained by the University; to withdraw all or any of those privileges in accordance with such conditions as may be prescribed by the Statutes; to recognise, guide, supervise, and control Halls not maintained by the University and other accommodation for students, and to withdraw any such recognition; (xviii) to appoint on contract or otherwise visiting Professors, Emeritus Professors, Consultants, Scholars and such other persons who may contribute to the advancement of the objects of the University; (xix) to confer autonomous status on a College or an Institution or a Department, as the case may be, in accordance with the Statutes; (xx) to determine standards of admission to the University, which may include examination, evaluation or any other method of testing; (xxi) to demand and receive payment of fees and other charges; (xxii) to supervise the residences of the students of the University and to make arrangements for promoting their health and general welfare; (xxiii) to lay down conditions of service of all categories of employees, including their code of conduct; 5 ----- (xxiv) to regulate and enforce discipline among the students and the employees, and to take such disciplinary measures in this regard as may be deemed by the University to be necessary; (xxv) to make arrangements for promoting the health and general welfare of the employees; (xxvi) to receive benefactions, donations and gifts and to acquire, hold and manage, and to dispose of, with the previous approval of the Central Government, any property, movable or immovable, including trust and endowment properties for the purposes of the University; (xxvii) to borrow, with the approval of the Central Government, on the security of the property of the University, money for the purposes of the University; (xxviii) to do all such other acts and things as may be necessary, incidental or conducive to the attainment of all or any of its objects. **6. Jurisdiction.—(1) The jurisdiction of the University shall extend to the whole of the State of** Sikkim. (2) Notwithstanding anything in any other law for the time being in force, no educational institution within the State of Sikkim shall be associated in any way with or be admitted to any privileges of any other University incorporated by law in India, and any such privileges granted by any such other University to an educational institution within the State of Sikkim prior to the commencement of this Act shall be deemed to be withdrawn on the commencement of this Act: Provided that the Central Government may, by order in writing, direct that the provisions of this sub section shall not apply in case of any educational institution specified in the order. **7. University open to all classes, castes and creed.—The University shall be open to persons of** either sex and of whatever caste, creed, race or class, and it shall not be lawful for the University to adopt or impose on any person, any test whatsoever of religious belief or profession in order to entitle him to be appointed as a teacher of the University or to hold any other office therein or be admitted as a student in the University or to graduate thereat or to enjoy or exercise any privilege thereof: Provided that nothing in this section shall be deemed to prevent the University from making special provisions for the employment or admission of women, persons with disabilities or of persons belonging to the weaker sections of the society and, in particular, of the Scheduled Castes and the Scheduled Tribes. **8. The Visitor.—(1) The President of India shall be the Visitor of the University.** (2) The Visitor may, from time to time, appoint one or more persons to review the work and progress of the University, including Colleges and Institutions maintained by it, and to submit a report thereon; and upon receipt of that report, the Visitor may, after obtaining the views of the Executive Council thereon through the Vice-Chancellor, take such action and issue such directions as he considers necessary in respect of any of the matters dealt with in the report and the University shall be bound to comply with such directions. (3) The Visitor shall have the right to cause an inspection to be made by such person or persons as he may direct, of the University, its buildings, libraries, laboratories and equipment, and of any College or Institution maintained by the University or admitted to its privileges; and also of the examinations, teaching and other work conducted or done by the University and to cause an inquiry to be made in like manner in respect of any matter connected with the administration or finances of the University, Colleges or Institutions. 6 ----- (4) The Visitor shall, in every matter referred to in sub-section (3), give notice of his intention to cause an inspection or inquiry to be made,— (a) to the University, if such inspection or inquiry is to be made in respect of the University or any College or Institution maintained by it, or (b) to the management of the College or Institution, if the inspection or inquiry is to be made in respect of College or Institution admitted to the privileges of the University, and the University or the management, as the case may be, shall have the right to make such representations to the Visitor, as it may consider necessary. (5) After considering the representations, if any, made by the University or the management, as the case may be, the Visitor may cause to be made such inspection or inquiry as is referred to in sub-section (3). (6) Where any inspection or inquiry has been caused to be made by the Visitor, the University or the management shall be entitled to appoint a representative, who shall have the right to be present and be heard at such inspection or inquiry. (7) The Visitor may, if the inspection or inquiry is made in respect of the University or any College or Institution maintained by it, address the Vice-Chancellor with reference to the result of such inspection or inquiry together with such views and advice with regard to the action to be taken thereon, as the Visitor may be pleased to offer, and on receipt of address made by the Visitor, the Vice-Chancellor shall communicate, to the Executive Council, the views of the Visitor with such advice as the Visitor may offer upon the action to be taken thereon. (8) The Visitor may, if the inspection or inquiry is made in respect of any College or Institution admitted to the privileges of the University, address the management concerned through the ViceChancellor with reference to the result of such inspection or inquiry, his views thereon and such advice as he may be pleased to offer upon the action to be taken thereon. (9) The Executive Council or the management, as the case may be, shall communicate, through the Vice-Chancellor to the Visitor such action, if any, as it proposes to take or has been taken upon the result of such inspection or inquiry. (10) Where, the Executive Council or the management, does not, within a reasonable time, take action to the satisfaction of the Visitor, the Visitor may, after considering any explanation furnished or representation made by the Executive Council or the management, issue such directions as he may think fit and the Executive Council or the management, as the case may be, shall comply with such directions. (11) Without prejudice to the foregoing provisions of this section, the Visitor may, by order in writing, annul any proceeding of the University which is not in conformity with the Act, the Statutes or the Ordinances: Provided that before making any such order, he shall call upon the Registrar to show cause why such an order should not be made, and, if any cause is shown within a reasonable time, he shall consider the same. (12) The Visitor shall have such other powers as may be prescribed by the Statutes. **9. The Chief Rector.—The Governor of the State of Sikkim shall be the Chief Rector of the** University. 7 ----- **10. Officers of the University.—The following shall be the officers of the University:—** (1) the Chancellor; (2) the Vice-Chancellor; (3) the Pro-Vice-Chancellor; (4) the Deans of Schools; (5) the Registrar; (6) the Finance Officer; (7) the Controller of Examinations; (8) the Librarian; and (9) such other officers as may be declared by the Statutes to be officers of the University. **11. The Chancellor.—(1) The Chancellor shall be appointed by the Visitor in such manner as may be** prescribed by the Statutes. (2) The Chancellor shall, by virtue of his office, be the head of the University and shall, if present, preside at the Convocations of the University held for conferring degrees and meetings of the Court. **12. The Vice-Chancellor.—(1) The Vice-Chancellor shall be appointed by the Visitor in such** manner as may be prescribed by the Statutes. (2) The Vice-Chancellor shall be the principal executive and academic officer of the University and shall exercise general supervision and control over the affairs of the University and give effect to the decisions of all the authorities of the University. (3) The Vice-Chancellor may, if he is of the opinion that immediate action is necessary on any matter, exercise any power conferred on any authority of the University by or under this Act and shall report to such authority at its next meeting the action taken by him on such matter: Provided that if the authority concerned is of the opinion that such action ought not to have been taken, it may refer the matter to the Visitor whose decision thereon shall be final: Provided further that any person in the service of the University who is aggrieved by the action taken by the Vice-Chancellor under this sub-section shall have the right to represent against such action to the Executive Council within three months from the date on which decision on such action is communicated to him and thereupon the Executive Council may confirm, modify or reverse the action taken by the ViceChancellor. (4) The Vice-Chancellor, if he is of the opinion that any decision of any authority of the University is beyond the powers of the authority conferred by the provisions of this Act, the Statutes or the Ordinances or that any decision taken is not in the interest of the University, may ask the authority concerned to review its decision within sixty days of such decision and if the authority refuses to review the decision either in whole or in part or no decision is taken by it within the said period of sixty days, the matter shall be referred to the Visitor whose decision thereon shall be final. (5) The Vice-Chancellor shall exercise such other powers and perform such other duties as may be prescribed by the Statutes or the Ordinances. **13. The Pro-Vice-Chancellor.—The Pro-Vice-Chancellor shall be appointed in such manner and on** such terms and conditions of service, and shall exercise such powers and perform such duties, as may be prescribed by the Statutes. 8 ----- **14. The Deans of Schools.—Every Dean of School shall be appointed in such manner and shall** exercise such powers and perform such duties as may be prescribed by the Statutes. **15. The Registrar.—(1) The Registrar shall be appointed in such manner and on such terms and** conditions of service as may be prescribed by the Statutes. (2) The Registrar shall have the power to enter into agreements, sign documents and authenticate records on behalf of the University and shall exercise such powers and perform such duties as may be prescribed by the Statutes. **16. The Finance Officer.—The Finance Officer shall be appointed in such manner and shall exercise** such powers and perform such duties, as may be prescribed by the Statutes. **17. The Controller of Examinations.—The Controller of Examinations shall be appointed in such** manner and shall exercise such powers and perform such duties, as may be prescribed by the Statutes. **18. The Librarian.—The Librarian shall be appointed in such manner and on such terms and** conditions of service, and shall exercise such powers and perform such duties, as may be prescribed by the Statutes. **19. Other officers.—The manner of appointment and powers and duties of other officers of the** University shall be prescribed by the Statutes. **20. Authorities of the University.—The following shall be the authorities of the University:—** (1) the Court; (2) the Executive Council; (3) the Academic Council; (4) the College Development Council; (5) the Board of Studies; (6) the Finance Committee; and (7) such other authorities as may be declared by the Statutes to be the authorities of the University. **21. The Court.—(1) The constitution of the Court and the term of office of its members shall be** prescribed by the Statutes: Provided that such number of members as may be prescribed by the Statutes shall be elected from among the teachers, employees and students of the University. (2) Subject to the provisions of this Act, the Court shall have the following powers and functions, namely:— (a) to review, from time to time, the broad policies and programmes of the University and to suggest measures for the improvement and development of the University; (b) to consider and pass resolutions on the annual report and the annual accounts of the University and the audit report on such accounts; (c) to advise the Visitor in respect of any matter which may be referred to it for advice; and (d) to perform such other functions as may be prescribed by the Statutes. **22. The Executive Council.—(1) The Executive Council shall be the principal executive body of the** University. 9 ----- (2) The constitution of the Executive Council, the term of office of its members and its powers and functions shall be prescribed by the Statutes: Provided that such number of members as may be prescribed by the Statutes shall be from among the elected members of the Court. **23. The Academic Council.—(1) The Academic Council shall be the principal academic body of the** University and shall, subject to the provisions of this Act, the Statutes and the Ordinances, co-ordinate and exercise general supervision over the academic policies of the University. (2) The constitution of the Academic Council, the term of office of its members and its powers and functions shall be prescribed by the Statutes: Provided that such number of members as may be prescribed by the Statutes shall be from among the elected members of the Court who are teachers of the University. **24. The College Development Council.—(1) The College Development Council shall be responsible** for admitting Colleges to the privileges of the University. (2) The constitution of the College Development Council, the term of office of its members and its powers and functions shall be prescribed by the Statutes. **25. The Board of Studies.—The constitution, powers and functions of the Board of Studies shall be** prescribed by the Statutes. **26. The Finance Committee.—The constitution, powers and functions of the Finance Committee** shall be prescribed by the Statutes. **27. Other authorities of the University.—The constitution, powers and functions of other** authorities, as may be declared by the Statutes to be the authorities of the University, shall be prescribed by the Statutes. **28. Power to make Statutes.—Subject to the provisions of this Act, the Statutes may provide for all** or any of the following matters, namely:— (a) the constitution, powers and functions of authorities and other bodies of the University, as may be constituted from time to time; (b) the appointment and continuance in office of the members of the said authorities and bodies, the filling up of vacancies of members, and all other matters relating to those authorities and other bodies for which it may be necessary or desirable to provide; (c) the appointment, powers and duties of the officers of the University and their emoluments; (d) the appointment of teachers, academic staff and other employees of the University, their emoluments and conditions of service; (e) the recognition of persons as recognised teachers; (f) the appointment of teachers, academic staff working in any other University or organisation for a specific period for undertaking a joint project; (g) the conditions of service of employees including provisions for pension, insurance, provident fund, the manner of termination of service and disciplinary action; (h) the principles governing the seniority of service of the employees of the University; (i) the procedure for arbitration in cases of dispute between employees or students and the University; 10 ----- (j) the procedure for appeal to the Executive Council by any employee or student against the action of any officer or authority of the University; (k) the conferment of autonomous status on a College or an Institution or a Department; (l) the establishment and abolition of Schools, Departments, Centres, Halls, Colleges and Institutions; (m) the conferment of honorary degrees; (n) the withdrawal of degrees, diplomas, certificates and other academic distinctions; (o) the conditions under which Colleges and Institutions may be admitted to the privileges of the University and the withdrawal of such privileges; (p) the management of Colleges and Institutions established by the University; (q) the delegation of powers vested in the authorities or officers of the University; (r) the maintenance of discipline among the employees and students; and (s) all other matters which by this Act are to be or may be provided for by the Statutes. **29. Statutes how to be made.—(1) The first Statutes are those set out in the Schedule.** (2) The Executive Council may, from time to time, make new or additional Statutes or may amend or repeal the Statutes referred to in sub-section (1): Provided that the Executive Council shall not make, amend or repeal any Statutes affecting the status, powers or constitution of any authority of the University until such authority has been given an opportunity of expressing an opinion in writing on the proposed changes, and any opinion so expressed shall be considered by the Executive Council. (3) Every new Statute or addition to the Statutes or any amendment or repeal of a Statute shall require the assent of the Visitor who may assent thereto or withhold assent or remit to the Executive Council for re-consideration. (4) A new Statute or a Statute amending or repealing an existing Statute shall have no validity unless it has been assented to by the Visitor. (5) Notwithstanding anything contained in the foregoing sub-sections, the Visitor may make new or additional Statutes or amend or repeal the Statutes referred to in sub-section (1), during the period of three years immediately after the commencement of this Act: Provided that the Visitor may, on the expiry of the said period of three years, make, within one year from the date of such expiry, such detailed Statutes as he may consider necessary and such detailed Statutes shall be laid before both Houses of Parliament. (6) Notwithstanding anything contained in the foregoing sub-sections, the Visitor may direct the University to make provisions in the Statutes in respect of any matter specified by him and if the Executive Council is unable to implement such direction within sixty days of its receipt, the Visitor may, after considering the reasons, if any, communicated by the Executive Council for its inability to comply with such direction, make or amend the Statutes suitably. 11 ----- **30. Power to make Ordinances.—(1) Subject to the provisions of this Act and the Statutes, the** Ordinances may provide for all or any of the following matters, namely:— (a) the admission of students to the University and their enrolment as such; (b) the courses of study to be laid down for all degrees, diplomas and certificates of the University; (c) the medium of instruction and examination; (d) the award of degrees, diplomas, certificates and other academic distinctions, the qualifications for the same and the means to be taken relating to the granting and obtaining of the same; (e) the fees to be charged for courses of study in the University and for admission to the examinations, degrees and diplomas of the University; (f) the conditions for award of fellowships, scholarships, studentships, medals and prizes; (g) the conduct of examinations, including the term of office and manner of appointment and the duties of examining bodies, examiners and moderators; (h) the conditions of residence of the students of the University; (i) the special arrangements, if any, which may be made for the residence and teaching of women students and the prescribing of special courses of studies for them; (j) the establishment of Centres of Studies, Boards of Studies, Specialised Laboratories and other Committees; (k) the manner of co-operation and collaboration with other Universities, institutions and other agencies not involving the carrying on of any activity for profit including learned bodies or associations; (l) the creation, composition and functions of any other body which is considered necessary for improving the academic life of the University; (m) the institution of fellowships, scholarships, studentships, medals and prizes; (n) the supervision of management of Colleges and Institutions admitted to the privileges of the University; (o) the setting up of a machinery for redressal of grievances of employees; and (p) all other matters which by this Act or the Statutes, are to be or may be, provided for by the Ordinances. (2) The first Ordinances shall be made by the Vice-Chancellor with the previous approval of the Central Government and the Ordinances so made may be amended, repealed or added to at any time by the Executive Council in the manner prescribed by the Statutes. **31. Regulations.—The authorities of the University may make Regulations, consistent with this Act,** the Statutes and the Ordinances for the conduct of their own business and that of the Committees, if any, appointed by them and not provided for by this Act, the Statutes or the Ordinances, in the manner prescribed by the Statutes. **32. Annual report** **.—(1) The annual report of the University shall be prepared under the direction of** the Executive Council, which shall include, among other matters, the steps taken by the University towards the fulfilment of its objects and shall be submitted to the Court on or after such date as may be prescribed by the Statutes and the Court shall consider the report in its annual meeting. 12 ----- (2) The Court shall submit the annual report to the Visitor along with its comments, if any. (3) A copy of the annual report, as prepared under sub-section (1), shall also be submitted to the Central Government, which shall, as soon as may be, cause the same to be laid before both Houses of Parliament. **33. Annual accounts.—(1) The annual accounts and balance-sheet of the University shall be** prepared under the directions of the Executive Council and shall, once at least every year and at intervals of not more than fifteen months, be audited by the Comptroller and Auditor-General of India or by such persons as he may authorise in this behalf. (2) A copy of the annual accounts together with the audit report thereon shall be submitted to the Court and the Visitor along with the observations of the Executive Council. (3) Any observations made by the Visitor on the annual accounts shall be brought to the notice of the Court and the observations of the Court, if any, shall, after being considered by the Executive Council, be submitted to the Visitor. (4) A copy of the annual accounts together with the audit report as submitted to the Visitor, shall also be submitted to the Central Government, which shall, as soon as may be, cause the same to be laid before both Houses of Parliament. (5) The audited annual accounts after having been laid before both Houses of Parliament shall be published in the Official Gazette. **34. Returns and information.—The University shall furnish to the Central Government such returns** or other information with respect to its property or activities as the Central Government may, from time to time, require. **35. Conditions of service of employees.—(1) Every employee of the University shall be appointed** under a written contract, which shall be lodged with the University and a copy of which shall be furnished to the employee concerned. (2) Any dispute arising out of the contract between the University and any employee shall, at the request of the employee, be referred to a Tribunal of Arbitration consisting of one member appointed by the Executive Council, one member nominated by the employee concerned and an umpire appointed by the Visitor. (3) The decision of the Tribunal shall be final, and no suit shall lie in any civil court in respect of the matters decided by the Tribunal: Provided that nothing in this sub-section shall preclude the employee from availing of the judicial remedies available under articles 32 and 226 of the Constitution. (4) Every request made by the employee under sub-section (2), shall be deemed to be a submission to arbitration upon the terms of this section within the meaning of the Arbitration and Conciliation Act, 1996 (26 of 1996). (5) The procedure for regulating the work of the Tribunal shall be prescribed by the Statutes. **36. Procedure of appeal and arbitration in disciplinary cases against students.—(1) Any student** or candidate for an examination whose name has been removed from the rolls of the University by the orders or resolution of the Vice-Chancellor, Discipline Committee or Examination Committee, as the case may be, and who has been debarred from appearing at the examinations of the University for more than one year, may, within ten days of the date of receipt of such orders or copy of such resolution by him, 13 ----- appeal to the Executive Council and the Executive Council may confirm, modify or reverse the decision of the Vice-Chancellor or the Committee, as the case may be. (2) Any dispute arising out of any disciplinary action taken by the University against a student shall, at the request of such student, be referred to a Tribunal of Arbitration and the provisions of sub-sections (2), (3), (4) and (5) of section 35 shall, as far as may be, apply to a reference made under this sub-section. **37. Right to appeal.—Every employee or student of the University or of a College or Institution** maintained by the University or admitted to its privileges shall, notwithstanding anything contained in this Act, have a right to appeal within such time as may be prescribed by the Statutes, to the Executive Council against the decision of any officer or authority of the University or of the Principal or the management of any College or an Institution, as the case may be, and thereupon the Executive Council may confirm, modify or reverse the decision appealed against. **38. Provident and pension funds.—(1) The University shall constitute for the benefit of its** employees such provident or pension fund or provide such insurance schemes as it may deem fit in such manner and subject to such conditions as may be prescribed by the Statutes. (2) Where such provident fund or pension fund has been so constituted, the Central Government may declare that the provisions of the Provident Funds Act, 1925 (19 of 1925), shall apply to such fund, as if it were a Government provident fund. **39. Disputes as to constitution of authorities and bodies.—If any question arises as to whether any** person has been duly elected or appointed as, or is entitled to be, a member of any authority or other body of the University, the matter shall be referred to the Visitor whose decision thereon shall be final. **40. Filling of casual vacancies.—All casual vacancies among the members (other than** _ex officio_ members) of any authority or other body of the University shall be filled, as soon as may be, by the person or body who appoints, elects or co-opts the member whose place has become vacant and person appointed, elected or co-opted to a casual vacancy shall be a member of such authority or body for the residue of the term for which the person whose place he fills would have been a member. **41. Proceedings of authorities or bodies not invalidated by vacancies.—No act or proceedings of** any authority or other body of the University shall be invalid merely by reason of the existence of a vacancy or vacancies among its members. **42. Protection of action taken in good faith.—No suit or other legal proceeding shall lie against any** officer or other employee of the University for anything which is in good faith done or intended to be done in pursuance of any of the provisions of this Act, the Statutes or the Ordinances. **43. Mode of proof of University record.—Notwithstanding anything contained in the Indian** Evidence Act, 1872 (1 of 1872) or in any other law for the time being in force, a copy of any receipt, application, notice, order, proceeding or resolution of any authority or other body of the University, or any other document in possession of the University, or any entry in any register duly maintained by the University, if certified by the Registrar, shall be received as _prima facie evidence of such receipt,_ application, notice, order, proceeding, resolution or document or the existence of entry in the register and shall be admitted as evidence of the matters and transactions therein where the original thereof would, if produced, have been admissible in evidence. 14 ----- **44. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made under this section after the expiry of three years from the commencement of this Act. (2) Every order made under sub-section (1) shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the order or both Houses agree that the order should not be made, the order shall thereafter have effect only in such modified form or be of no effect as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that order. **45. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid** **before Parliament.—(1) Every Statute, Ordinance or Regulation made under this Act shall be published** in the Official Gazette. (2) Every Statute, Ordinance or Regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the Statute, Ordinance or Regulation or both Houses agree that the Statute, Ordinance or Regulation should not be made, the Statute, Ordinance or Regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that Statute, Ordinance or Regulation. (3) The power to make Statutes, Ordinances or Regulations shall include the power to give retrospective effect, from a date not earlier than the date of commencement of this Act, to the Statutes, Ordinances or Regulations or any of them but no retrospective effect shall be given to any Statute, Ordinance or Regulation so as to prejudicially affect the interests of any person to whom such Statute, Ordinance or Regulation may be applicable. **46. Transitional provisions.—Notwithstanding anything contained in this Act and the Statutes,—** (a) the first Chancellor and first Vice-Chancellor shall be appointed by the Visitor in such manner and on such conditions as may be deemed fit and each of the said officer shall hold office for such term, not exceeding five years as may be specified by the Visitor; (b) the first Registrar and the first Finance Officer shall be appointed by the Visitor and each of the said officers shall hold office for a term of three years; (c) the first Court and the first Executive Council shall consist of not more than thirty-one members and eleven members, respectively, who shall be nominated by the Visitor and shall hold office for a term of three years; (d) the first College Development Council shall consist of not more than eleven members, who shall be nominated by the Visitor and they shall hold office for a term of three years; (e) the first Academic Council shall consist of not more than twenty-one members, who shall be nominated by the Visitor and they shall hold office for a term of three years: 15 ----- Provided that if any vacancy occurs in the above offices or authorities, the same shall be filled by appointment or nomination, as the case may be, by the Visitor, and the person so appointed or nominated shall hold office for so long as the officer or member in whose place he is appointed or nominated would have held office, if such vacancy had not occurred. 16 ----- THE SCHEDULE (See section 29) THE STATUTES OF THE UNIVERSITY **1. The Chancellor.—(1) The Chancellor shall be appointed by the Visitor from a panel of not less** than three persons recommended by the Executive Council from amongst persons of eminence in the academic or public life of the country: Provided that if the Visitor does not approve of any of the persons so recommended, he may call for fresh recommendations from the Executive Council. (2) The Chancellor shall hold office for a term of five years and shall not be eligible for re appointment: Provided that notwithstanding the expiry of his term of office, the Chancellor shall continue to hold office until his successor enters upon his office. **2. The Vice-Chancellor.— (1) The Vice-Chancellor shall be appointed by the Visitor from a panel of** not less than three persons who shall be recommended by a Committee as constituted under clause (2): Provided that if the Visitor does not approve of any of the persons included in the panel, he may call for an extended fresh panel. (2) The Committee referred to in clause (1) shall consist of three persons, out of whom two shall be nominated by the Executive Council and one by the Visitor and the nominee of the Visitor shall be the convener of the Committee: Provided that none of the members of the Committee shall be an employee of the University or an Institution maintained by, or admitted to the privileges of, the University or a member of any authority of the University. (3) The Vice-Chancellor shall be a whole-time salaried officer of the University. (4) The Vice-Chancellor shall hold office for a term of five years from the date on which he enters upon his office, or until he attains the age of sixty-five years, whichever is earlier, and he shall not be eligible for re-appointment: Provided that notwithstanding the expiry of the said period of five years, he shall continue in office until his successor is appointed and enters upon his office: Provided further that the Visitor may direct any Vice-Chancellor after his term has expired, to continue in office for such period, not exceeding a total period of one year, as may be specified by him. (5) The emoluments and other conditions of service of the Vice-Chancellor shall be as follows:— (i) The Vice-Chancellor shall be paid a monthly salary and allowances, other than house rent allowance, at the rates fixed by the Central Government from time to time and he shall be entitled, without payment of rent, to use a furnished residence throughout his term of office and no charge shall fall on the Vice-Chancellor in respect of the maintenance of such residence. (ii) The Vice-Chancellor shall be entitled to such terminal benefits and allowances as may be fixed by the Central Government from time to time: Provided that where an employee of the University, or a College or an Institution maintained by, or admitted to the privileges of, the University, or of any other University or any College or Institution maintained by or admitted to the privileges of, such other University, is appointed as the 17 ----- Vice-Chancellor, he may be allowed to continue to contribute to any provident fund of which he is a member and the University shall contribute to the account of such person in that provident fund at the same rate at which the person had been contributing immediately before his appointment as the ViceChancellor: Provided further that where such employee had been member of any pension scheme, the University shall make the necessary contribution to such scheme. (iii) The Vice-Chancellor shall be entitled to travelling allowance at such rates as may be fixed by the Executive Council. (iv) The Vice-Chancellor shall be entitled to leave on full pay at the rate of thirty days in a calendar year and the leave shall be credited to his account in advance in two half-yearly instalments of fifteen days each on the first day of January and July every year: Provided that if the Vice-Chancellor assumes or relinquishes charge of the office of the Vice Chancellor during the currency of a half year, the leave shall be credited proportionately at the rate of two and-a-half days for each completed month of service. (v) In addition to the leave referred to in sub-clause (iv), the Vice-Chancellor shall also be entitled to half-pay leave at the rate of twenty days for each completed year of service, and half-pay leave may also be availed of as commuted leave on full pay on medical certificate: Provided that when such commuted leave is availed of, twice the amount of half-pay leave shall be debited against half-pay leave due. (6) If the office of the Vice-Chancellor becomes vacant due to death, resignation or otherwise, or if he is unable to perform his duties due to ill-health or any other cause, the Pro-Vice-Chancellor shall perform the duties of the Vice-Chancellor: Provided that if the Pro-Vice-Chancellor is not available, the senior-most Professor shall perform the duties of the Vice-Chancellor until a new Vice-Chancellor assumes office or the existing ViceChancellor resumes the duties of his office, as the case may be. **3. Powers and duties of the Vice-Chancellor.— (1) The Vice-Chancellor shall be** _ex officio_ Chairman of the Executive Council, the Academic Council and the Finance Committee and shall, in the absence of the Chancellor, preside at the Convocations held for conferring degrees and at meetings of the Court. (2) The Vice-Chancellor shall be entitled to be present at, and address, any meeting of any authority or other body of the University, but shall not be entitled to vote thereat unless he is a member of such authority or body. (3) It shall be the duty of the Vice-Chancellor to see that this Act, the Statutes, the Ordinances and the Regulations are duly observed, and he shall have all the powers necessary to ensure such observance. (4) The Vice-Chancellor shall have all the powers necessary for the proper maintenance of discipline in the University and he may delegate any such powers to such person or persons as he deems fit. (5) The Vice-Chancellor shall have the power to convene or cause to be convened the meetings of the Executive Council, the Academic Council and the Finance Committee. **4. Pro-Vice-Chancellor.—(1) The Pro-Vice-Chancellor shall be appointed by the Executive Council** on the recommendation of the Vice-Chancellor: 18 ----- Provided that where the recommendation of the Vice-Chancellor is not accepted by the Executive Council, the matter shall be referred to the Visitor who may either appoint the person recommended by the Vice-Chancellor or ask the Vice-Chancellor to recommend another person to the Executive Council: Provided further that the Executive Council may, on the recommendation of the Vice-Chancellor, appoint a Professor to discharge the duties of a Pro-Vice-Chancellor in addition to his own duties as a Professor. (2) The term of office of a Pro-Vice-Chancellor shall be such as may be decided by the Executive Council but it shall not in any case exceed five years or until the expiration of the term of office of the Vice-Chancellor, whichever is earlier: Provided that a Pro-Vice-Chancellor whose term of office has expired shall be eligible for re appointment: Provided further that, in any case, a Pro-Vice-Chancellor shall retire on attaining the age of sixty-five years: Provided also that a Pro-Vice-Chancellor shall, while discharging the duties of the Vice-Chancellor under clause (6) of Statute 2, continue in office notwithstanding the expiration of his term of office as Pro-Vice-Chancellor, until the Vice-Chancellor resumes office or a new Vice-Chancellor assumes office, as the case may be. (3) The emoluments and other terms and conditions of service of a Pro-Vice-Chancellor shall be such as may be prescribed by the Ordinances. (4) The Pro-Vice-Chancellor shall assist the Vice-Chancellor in respect of such matters as may be specified by the Vice-Chancellor in this behalf, from time to time, and shall also exercise such powers and perform such duties as may be assigned or delegated to him by the Vice-Chancellor. **5. Deans of Schools.—(1) Every Dean of School shall be appointed by the Vice-Chancellor from** amongst the Professors in the School by rotation in the order of seniority for a period of three years: Provided that in case there is only one Professor or no Professor in a School, the Dean shall be appointed, for the time being, from amongst the Professor, if any, and the Readers in the School by rotation in the order of seniority: Provided further that a Dean on attaining the age of sixty-two years shall cease to hold office as such. (2) When the office of the Dean is vacant or when the Dean is, by reason of illness, absence or any other cause, unable to perform duties of his office, the duties of the office shall be performed by the senior-most Professor or Reader, as the case may be, in the School. (3) The Dean shall be the Head of the School and shall be responsible for the conduct and maintenance of the standards of teaching and research in the School and shall have such other functions as may be prescribed by the Ordinances. (4) The Dean shall have the right to be present and to speak at any meeting of the Boards of Studies or Committees of the School, as the case may be, but shall not have the right to vote thereat unless he is a member thereof. **6. The Registrar.—(1) The Registrar shall be appointed by the Executive Council on the** recommendation of a Selection Committee constituted for the purpose and shall be a whole-time salaried officer of the University. (2) He shall be appointed for a term of five years and shall be eligible for re-appointment. 19 ----- (3) The emoluments and other terms and conditions of service of the Registrar shall be such as may be prescribed by the Executive Council from time to time: Provided that the Registrar shall retire on attaining the age of sixty-two years: Provided further that a Registrar shall, notwithstanding his attaining the age of sixty-two years, continue in office until his successor is appointed and enters upon his office or until the expiry of a period of one year, whichever is earlier. (4) When the office of the Registrar is vacant or when the Registrar is, by reason of illness, absence or any other cause, unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) (a) The Registrar shall have power to take disciplinary action against such of the employees, excluding teachers and other academic staff, as may be specified in the order of the Executive Council and to suspend them pending inquiry, to administer warnings to them or to impose on them the penalty of censure or the withholding of increment: Provided that no such penalty shall be imposed unless the person has been given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. (b) An appeal shall lie to the Vice-Chancellor against any order of the Registrar imposing any of the penalties specified in sub-clause (a). (c) In a case where the inquiry discloses that a punishment beyond the power of the Registrar is called for, the Registrar shall, upon the conclusion of the inquiry, make a report to the Vice-Chancellor along with his recommendations: Provided that an appeal shall lie to the Executive Council against an order of the Vice-Chancellor imposing any penalty. (6) The Registrar shall be ex officio Secretary of the Executive Council, the Academic Council and the College Development Council, but shall not be deemed to be a member of any of these authorities and he shall be ex officio Member-Secretary of the Court. (7) It shall be the duty of the Registrar— (a) to be the custodian of the records, the common seal and such other property of the University as the Executive Council shall commit to his charge; (b) to issue all notices convening meetings of the Court, the Executive Council, the Academic Council, the College Development Council and of any Committees appointed by those authorities; (c) to keep the minutes of all the meetings of the Court, the Executive Council, the Academic Council, the College Development Council and of any Committees appointed by those authorities; (d) to conduct the official correspondence of the Court, the Executive Council, the Academic Council and the College Development Council; (e) to supply to the Visitor, copies of the agenda of the meetings of the authorities of the University as soon as they are issued and the minutes of such meetings; (f) to represent the University in suits or proceedings by or against the University, sign powers of attorney and verify pleadings or depute his representative for the purpose; and (g) to perform such other duties as may be specified in the Statutes, the Ordinances or the Regulations or as may be required from time to time, by the Executive Council or the ViceChancellor. 20 ----- **7. The Finance Officer.—(1) The Finance Officer shall be appointed by the Executive Council on** the recommendations of a Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. (2) The Finance Officer shall be appointed for a term of five years and shall be eligible for re appointment. (3) The emoluments and other terms and conditions of service of the Finance Officer shall be such as may be prescribed by the Executive Council from time to time: Provided that the Finance Officer shall retire on attaining the age of sixty-two years: Provided further that the Finance Officer shall, notwithstanding his attaining the age of sixty-two years, continue in office until his successor is appointed and enters upon his office or until the expiry of a period of one year, whichever is earlier. (4) When the office of the Finance Officer is vacant or when the Finance Officer is, by reason of illness, absence or any other cause, unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) The Finance Officer shall be _ex officio Secretary of the Finance Committee, but shall not be_ deemed to be a member of such Committee. (6) The Finance Officer shall— (a) exercise general supervision over the funds of the University and shall advise it as regards its financial policy; and (b) perform such other financial functions as may be assigned to him by the Executive Council or as may be prescribed by the Statutes or the Ordinances. (7) Subject to the control of the Executive Council, the Finance Officer shall— (a) hold and manage the property and investments of the University including trust and endowed property; (b) ensure that the limits fixed by the Executive Council for recurring and non-recurring expenditure for a year are not exceeded and that all moneys are expended on the purpose for which they are granted or allotted; (c) be responsible for the preparation of annual accounts and the budget of the University and for their presentation to the Executive Council; (d) keep a constant watch on the state of the cash and bank balances and on the state of investments; (e) watch the progress of the collection of revenue and advise on the methods of collection employed; (f) ensure that the registers of buildings, land, furniture and equipment are maintained up-to-date and that stock-checking is conducted, of equipment and other consumable materials in all offices, Departments, University, Institutes, Centres and Specialised Laboratories; (g) bring to the notice of the Vice-Chancellor unauthorised expenditure and other financial irregularities and suggest disciplinary action against persons at fault; and 21 ----- (h) call for from any office, Department, Centre, Laboratory, College or Institution maintained by the University any information or returns that he may consider necessary for the performance of his duties. (8) Any receipt given by the Finance Officer or the person or persons duly authorised in this behalf by the Executive Council for any money payable to the University shall be sufficient discharge for payment of such money. **8. The Controller of Examinations.—(1) The Controller of Examinations shall be appointed by the** Executive Council on the recommendations of a Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. (2) The Controller of Examinations shall be appointed for a term of five years and shall be eligible for re-appointment. (3) The emoluments and other terms and conditions of service of the Controller of Examinations shall be such as may be prescribed by the Executive Council from time to time: Provided that the Controller of Examinations shall retire on attaining the age of sixty-two years: Provided further that the Controller of Examinations shall, notwithstanding his attaining the age of sixty-two years, continue in office until his successor is appointed and enters upon his office or until the expiry of a period of one year, whichever is earlier. (4) When the office of the Controller of Examinations is vacant or when the Controller of Examinations is, by reason of illness, absence or any other cause, unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) The Controller of Examinations shall arrange for and superintend the examinations of the University in the manner prescribed by the Ordinances. **9. The Librarian.—(1) The Librarian shall be appointed by the Executive Council on the** recommendations of the Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. (2) The Librarian shall exercise such powers and perform such duties as may be assigned to him by the Executive Council. **10. Meetings of the Court.—(1) An annual meeting of the Court shall be held on a date to be fixed** by the Executive Council unless some other date has been fixed by the Court in respect of any year. (2) At an annual meeting of the Court, a report on the working of the University during the previous year, together with a statement of the receipts and expenditure, the balance-sheet as audited, and the financial estimates for the next year shall be presented. (3) A copy of the statement of receipts and expenditure, the balance-sheet and the financial estimates referred to in clause (2) shall be sent to every member of the Court at least seven days before the date of the annual meeting. (4) Special meetings of the Court may be convened by the Executive Council or the Vice-Chancellor or if there is no Vice-Chancellor, the Pro-Vice-Chancellor or if there is no Pro-Vice-Chancellor, by the Registrar. (5) Eleven members of the Court shall form a quorum for a meeting of the Court. 22 ----- **11. Quorum for meeting of the Executive Council.—Seven members of the Executive Council** shall form a quorum for a meeting of the Executive Council. **12. Powers and functions of the Executive Council.—(1) The Executive Council shall have the** power of management and administration of the revenues and property of the University and the conduct of all administrative affairs of the University not otherwise provided for. (2) Subject to the provisions of this Act, the Statutes and the Ordinances, the Executive Council shall, in addition to all other powers vested in it, have the following powers, namely:— (i) to create teaching and other academic posts, to determine the number and emoluments of such posts and to define the duties and conditions of service of Professors, Readers, Lecturers and other academic staff: Provided that no action shall be taken by the Executive Council in respect of the number and qualifications of teachers and other academic staff otherwise than after consideration of the recommendations of the Academic Council; (ii) to appoint such Professors, Readers, Lecturers and other academic staff, as may be necessary, on the recommendation of the Selection Committee constituted for the purpose and to fill-up temporary vacancies therein; (iii) to recognise persons as University recognised teachers in the manner prescribed by the Ordinances; (iv) to create administrative, ministerial and other necessary posts (including Chairs) and to make appointments thereto in the manner prescribed by the Ordinances; (v) to grant leave of absence to any officer of the University other than the Chancellor and the Vice-Chancellor, and to make necessary arrangements for the discharge of the functions of such officer during his absence; (vi) to regulate and enforce discipline among employees in accordance with the Statutes and the Ordinances; (vii) to manage and regulate the finances, accounts, investments, property, business and all other administrative affairs of the University and for that purpose to appoint such agents as it may think fit; (viii) to fix limits on the total recurring and the total non-recurring expenditure for a year on the recommendation of the Finance Committee; (ix) to invest any money belonging to the University, including any unapplied income, in such stocks, funds, shares or securities, from time to time as it may think fit or in the purchase of immovable property in India, with the like powers of varying such investment from time to time; (x) to transfer or accept transfers of any movable or immovable property on behalf of the University; (xi) to provide buildings, premises, furniture and apparatus and other means needed for carrying on the work of the University; (xii) to enter into, vary, carry out and cancel contracts on behalf of the University; (xiii) to entertain, adjudicate upon, and if thought fit, to redress any grievances of the employees and students of the University who may, for any reason, feel aggrieved; (xiv) to appoint examiners and moderators and, if necessary, to remove them, and to fix their fees, emoluments and travelling and other allowances, after consulting the Academic Council; 23 ----- (xv) to select a common seal for the University and provide for the custody and use of such seal; (xvi) to make such special arrangements as may be necessary for the residence of women students; (xvii) to institute fellowships, scholarships, studentships, medals and prizes; (xviii) to provide for the appointment of Visiting Professors, Emeritus Professors, Consultants and Scholars and determine the terms and conditions of such appointments; and (xix) to exercise such other powers and perform such other duties as may be conferred or imposed on it by the Ordinances or the Statutes. **13. Quorum for meetings of the Academic Council.—Nine members of the Academic Council** shall form a quorum for a meeting of the Academic Council. **14. Powers and functions of the Academic Council.—Subject to the provisions of this Act, the** Statutes and the Ordinances, the Academic Council shall, in addition to all other powers vested in it, have the following powers, namely:— (a) to exercise general supervision over the academic policies of the University and to give directions regarding methods of instruction, co-ordination of teaching among the Colleges and the Institutions, evaluation of research and improvement of academic standards; (b) to bring about and promote inter-School co-ordination and to establish or appoint such committees or boards as may be deemed necessary for the purpose; (c) to consider matters of general academic interest either on its own initiative, or on a reference by a School or the Executive Council, and to take appropriate action thereon; and (d) to frame such Regulations and rules consistent with the Statutes and the Ordinances regarding the academic functioning of the University, discipline, residence, admissions, award of fellowships and studentships, fees, concessions, corporate life and attendance. **15. Schools of Studies and Departments.—(1) The University shall have such Schools of Studies as** may be specified in the Statutes. (2) Every School shall have a School Board and the members of the first School Board shall be nominated by the Executive Council for a period of three years. (3) The composition, powers and functions of a School Board shall be prescribed by the Ordinances. (4) The conduct of the meetings of a School Board and the quorum required for such meetings shall be prescribed by the Ordinances. (5) (a) Every School shall consist of such Departments as may be assigned to it by the Ordinances: Provided that the Executive Council may, on the recommendation of the Academic Council, establish Centres of Studies to which may be assigned such teachers of the University as the Executive Council may consider necessary. (b) Each Department shall consist of the following members, namely:— (i) Teachers of the Department; (ii) Persons conducting research in the Department; (iii) Dean of the School; (iv) Honorary Professors, if any, attached to the Department; and 24 ----- (v) Such other persons as may be members of the Department in accordance with the provisions of the Ordinances. **16. Board of Studies.—(1) Each Department shall have a Board of Studies.** (2) The constitution of the Board of Studies and the term of office of its members shall be prescribed by the Ordinances. (3) Subject to the overall control and supervision of the Academic Council, the functions of a Board of Studies shall be to approve subjects for research for various degrees and other requirements of research degrees and to recommend to the concerned School Board in the manner prescribed by the Ordinances— (a) courses of studies and appointment of examiners for courses, but excluding research degrees; (b) appointment of supervisors for research; and (c) measures for the improvement of the standard of teaching and research: Provided that the above functions of a Board of Studies shall, during the period of three years immediately after the commencement of the Act, be performed by the Department. **17. The Finance Committee.— (1) The Finance Committee shall consist of the following members,** namely:— (i) the Vice-Chancellor; (ii) the Pro-Vice-Chancellor; (iii) one person to be nominated by the Court; (iv) three persons to be nominated by the Executive Council, out of whom at least one shall be a member of the Executive Council; and (v) three persons to be nominated by the Visitor. (2) Five members of the Finance Committee shall form a quorum for a meeting of the Finance Committee. (3) All the members of the Finance Committee, other than ex officio members, shall hold office for a term of three years. (4) A member of the Finance Committee shall have the right to record a minute of dissent if he does not agree with any decision of the Finance Committee. (5) The Finance Committee shall meet at least thrice every year to examine the accounts and to scrutinise proposals for expenditure. (6) All proposals relating to creation of posts, and those items which have not been included in the Budget, shall be examined by the Finance Committee before they are considered by the Executive Council. (7) The annual accounts and the financial estimates of the University prepared by the Finance Officer shall be laid before the Finance Committee for consideration and comments and thereafter submitted to the Executive Council for approval. (8) The Finance Committee shall recommend limits for the total recurring expenditure and the total non-recurring expenditure for the year, based on the income and resources of the University (which, in the case of productive works, may include the proceeds of loans). 25 ----- **18. Selection Committees.—(1) There shall be Selection Committees for making recommendations** to the Executive Council for appointment to the posts of Professor, Reader, Lecturer, Registrar, Finance Officer, Librarian and Principals of Colleges and Institutions maintained by the University. (2) The Selection Committee for appointment to the posts specified in Column 1 of the Table below shall consist of the Vice-Chancellor, a nominee of the Visitor and the persons specified in the corresponding entry in Column 2 of the said Table: TABLE 1 2 Professor (i) The Dean of the School. (ii) The Head of the Department if he is a Professor. (iii) Three persons not in the service of the University, nominated by the Executive Council, out of a panel of names recommended by the Academic Council for their special knowledge of, or interest in, the subject with which the Professor will be concerned. Reader/Lecturer (i) The Head of the Department. (ii) One Professor nominated by the Vice-Chancellor. (iii) Two persons not in the service of the University, nominated by the Executive Council, out of a panel of names recommended by the Academic Council for their special knowledge of, or interest in, the subject with which the Reader/Lecturer will be concerned. Registrar/ Finance Officer (i) Two members of the Executive Council nominated by it. (ii) One person not in the service of the University nominated by the Executive Council. Librarian (i) Two persons not in the service of the University who have special knowledge of the subject of the Library Science/Library Administration nominated by the Executive Council. (ii) One person not in the service of the University nominated by the Executive Council. Principal of College or Institution maintained by the University. Three persons not in the service of the University. University of whom two shall be nominated by the Executive Council and one by the Academic Council for their special knowledge of, or interest in, a subject in which instruction is being provided by the College or Institution. Note 1. Where the appointment is being made for an inter-disciplinary project, the head of the project shall be deemed to be the Head of the Department concerned. Note 2. The Professor to be nominated by the Vice-Chancellor shall be a Professor concerned with the speciality for which the selection is being made and the Vice-Chancellor shall consult the Head of the Department and the Dean of School before nominating the Professor. (3) The Vice-Chancellor, or in his absence the Pro-Vice-Chancellor, shall convene and preside at the meeting of the Selection Committee: Provided that the meeting of the Selection Committee shall be fixed after prior consultation with, and subject to the convenience of Visitor's nominee and the experts nominated by the Executive Council: 26 ----- Provided further that the proceedings of the Selection Committee shall not be valid unless,— (a) where the number of Visitor's nominee and the persons nominated by the Executive Council is four in all, at least three of them attend the meeting; and (b) where the number of Visitor's nominee and the persons nominated by the Executive Council is three in all, at least two of them attend the meeting. (4) The procedure to be followed by the Selection Committee shall be laid down in the Ordinances. (5) If the Executive Council is unable to accept the recommendations made by the Selection Committee, it shall record its reasons and submit the case to the Visitor for final orders. (6) Appointments to temporary posts shall be made in the manner indicated below:— (i) If the temporary vacancy is for duration longer than one academic session, it shall be filled on the advice of the Selection Committee in accordance with the procedure indicated in the foregoing clauses: Provided that if the Vice-Chancellor is satisfied that in the interests of work it is necessary to fill the vacancy, the appointment may be made on a purely temporary basis on the advice of a local Selection Committee referred to in sub-clause (ii) for a period not exceeding six months. (ii) If the temporary vacancy is for a period less than a year, an appointment to such vacancy shall be made on the recommendation of a local Selection Committee consisting of the Dean of the School concerned, the Head of the Department and a nominee of the Vice-Chancellor: Provided that if the same person holds the offices of the Dean and the Head of the Department, the Selection Committee may contain two nominees of the Vice-Chancellor: Provided further that in the case of sudden casual vacancies of teaching posts caused by death or any other reason, the Dean may, in consultation with the Head of the Department concerned, make a temporary appointment for a month and report to the Vice-Chancellor and the Registrar about such appointment. (iii) No teacher appointed temporarily shall, if he is not recommended by a regular Selection Committee for appointment under the Statutes, be continued in service on such temporary employment, unless he is subsequently selected by a local Selection Committee or a regular Selection Committee, for a temporary or permanent appointment, as the case may be. **19. Special mode of appointment.—(1) Notwithstanding anything contained in Statute 18, the** Executive Council may invite a person of high academic distinction and professional attainments to accept a post of Professor or any other equivalent academic post in the University on such terms and conditions as it deems fit and on the person agreeing to do so appoint him to the post. (2) The Executive Council may appoint a teacher or any other academic staff working in any other University or organisation for undertaking a joint project in accordance with the manner laid down in the Ordinances. **20. Appointment for a fixed tenure.—The Executive Council may appoint a person selected in** accordance with the procedure laid down in Statute 18 for a fixed tenure on such terms and conditions as it deems fit. **21. Recognised teachers.—(1) The qualifications of recognised teachers shall be such as may be** prescribed by the Ordinances. 27 ----- (2) All applications for the recognition of teachers shall be made in such manner as may be laid down by the Ordinances. (3) No teacher shall be recognised as a teacher except on the recommendation of a Selection Committee constituted for the purpose in the manner laid down in the Ordinances. (4) The period of recognition of a teacher shall be determined by the Ordinances made in that behalf. (5) The Academic Council may, by a special resolution passed by a majority of not less than two thirds of the members present and voting, withdraw recognition from a teacher: Provided that no such resolution shall be passed until notice in writing has been given to the person concerned calling upon him to show cause, within such time as may be specified in the notice, why such resolution should not be passed and until his objections, if any, and any evidence he may produce in support of them have been considered by the Academic Council. **22. Committees.—(1) An authority of the University may appoint as many standing or special** Committees as it may deem fit, and may appoint to such Committees persons who are not members of such authority. (2) A Committee appointed under clause (1) may deal with any subject delegated to it subject to subsequent confirmation by the authority appointing it. **23. Terms and conditions of service and code of conduct of the teachers, etc.—(1) All the** teachers and other academic staff of the University shall, in the absence of any agreement to the contrary, be governed by the terms and conditions of service and code of conduct as are specified in the Statutes, the Ordinances and the Regulations. (2) The emoluments of members of the academic staff shall be such as may be prescribed by the Ordinances. (3) Every teacher and member of the academic staff of the University shall be appointed on a written contract, the form of which shall be prescribed by the Ordinances. (4) A copy of every contract referred to in clause (3) shall be deposited with the Registrar. **24. Terms and conditions of service and code of conduct of other employees.—(1) All the** employees of the University, other than the teachers and other academic staff shall, in the absence of any contract to the contrary, be governed by the terms and conditions of service and code of conduct as are specified in the Statutes, the Ordinances and the Regulations. (2) The manner of appointment and emoluments of employees, other than the teachers and other academic staff, shall be such as may be prescribed by the Ordinances. **25. Seniority list.—(1) Whenever, in accordance with the Statutes, any person is to hold an office or** be a member of an authority of the University by rotation according to seniority, such seniority shall be determined according to the length of continuous service of such person in his grade and in accordance with such other principles as the Executive Council may, from time to time, prescribe. (2) It shall be the duty of the Registrar to prepare and maintain in respect of each class of persons to whom the provisions of these Statutes apply, a complete and up-to-date seniority list in accordance with the provisions of clause (1). (3) If two or more persons have equal length of continuous service in a particular grade or the relative seniority of any person or persons is otherwise in doubt, the Registrar may, on his own motion and shall, 28 ----- at the request of any such person, submit the matter to the Executive Council whose decision thereon shall be final. **26. Removal of employees of the University.—(1) Where there is an allegation of misconduct** against a teacher, a member of the academic staff or other employee of the University, the ViceChancellor, in the case of the teacher or a member of the academic staff, and the authority competent to appoint (hereinafter referred to as the appointing authority) in the case of other employee may, by order in writing, place such teacher, member of the academic staff or other employee, as the case may be, under suspension and shall forthwith report to the Executive Council the circumstances in which the order was made: Provided that the Executive Council may, if it is of the opinion, that the circumstances of the case do not warrant the suspension of the teacher or a member of the academic staff, revoke such order. (2) Notwithstanding anything contained in the terms of the contract of appointment or of any other terms and conditions of service of the employees, the Executive Council in respect of teachers and other academic staff, and the appointing authority in respect of other employees, shall have the power to remove a teacher or a member of the academic staff or other employee, as the case may be, on grounds of misconduct. (3) Save as aforesaid, the Executive Council, or as the case may be, the appointing authority, shall not be entitled to remove any teacher, member of the academic staff or other employee except for a good cause and after giving three months' notice or on payment of three months' salary in lieu thereof. (4) No teacher, member of the academic staff or other employee shall be removed under clause (2) or clause (3) unless he has been given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. (5) The removal of a teacher, member of the academic staff or other employee shall take effect from the date on which the order of removal is made: Provided that where the teacher, member of the academic staff or other employee is under suspension at the time of his removal, such removal shall take effect from the date on which he was placed under suspension. (6) Notwithstanding anything contained in the foregoing provisions of this Statute, a teacher, member of the academic staff or other employee may resign,— (a) if he is a permanent employee, only after giving three months' notice in writing to the Executive Council or the appointing authority, as the case may be, or by paying three months' salary in lieu thereof; (b) if he is not a permanent employee, only after giving one month's notice in writing to the Executive Council or, as the case may be, the appointing authority or by paying one month's salary in lieu thereof: Provided that such resignation shall take effect only on the date on which the resignation is accepted by the Executive Council or the appointing authority, as the case may be. **27. Honorary degrees.—(1) The Executive Council may, on the recommendation of the Academic** Council and by a resolution passed by a majority of not less than two-thirds of the members present and voting, make proposals to the Visitor for the conferment of honorary degrees: Provided that in case of emergency, the Executive Council may, on its own motion, make such proposals. 29 ----- (2) The Executive Council may, by a resolution passed by a majority of not less than two-thirds of the members present and voting, withdraw, with the previous sanction of the Visitor, any honorary degree conferred by the University. **28. Withdrawal of degrees, etc.—The Executive Council may, by a special resolution passed by a** majority of not less than two-thirds of the members present and voting, withdraw any degree or academic distinction conferred on, or any certificate or diploma granted to, any person by the University for good and sufficient cause: Provided that no such resolution shall be passed until a notice in writing has been given to that person calling upon him to show cause within such time as may be specified in the notice why such a resolution should not be passed and until his objections, if any, and any evidence he may produce in support of them, have been considered by the Executive Council. **29. Maintenance of discipline among students of the University.—(1) All powers relating to the** maintenance of discipline and disciplinary action in relation to the students of the University shall vest in the Vice-Chancellor. (2) There shall be a Proctor of the University to assist the Vice-Chancellor in the exercise of the powers referred to in clause (1), who shall be appointed by the Executive Council from amongst the Professors and Readers in the manner prescribed by the Ordinances. (3) The Vice-Chancellor may delegate all or any of the powers referred to in clause (1), as he deems proper, to the Proctor and to such other officers as he may specify in this behalf. (4) Without prejudice to the generality of his powers relating to the maintenance of discipline and taking such action, as may seem to him appropriate for the maintenance of discipline, the Vice-Chancellor may, in exercise of such powers, by order, direct that any student or students be expelled or rusticated, for a specified period, or be not admitted to a course or courses of study in a College, Institution or Department or a School of the University for a stated period, or be punished with fine for an amount to be specified in the order, or be debarred from taking an examination or examinations conducted by the University, College, Institution or Department or a School for one or more years, or that the results of the student or students concerned in the examination or examinations in which he or they have appeared be cancelled. (5) The Principals of Colleges, Institutions, Deans of Schools of Studies and Heads of teaching Departments in the University shall have the authority to exercise all such disciplinary powers over the students in their respective Colleges, Institutions, Schools and teaching Departments in the University, as may be necessary for the proper conduct of such Colleges, Institutions, Schools and teaching Departments. (6) Without prejudice to the powers of the Vice-Chancellor and the Principal and other persons specified in clause (5), detailed rules of discipline and proper conduct shall be made by the University. The Principals of Colleges, Institutions, Deans of Schools of Studies and Heads of teaching Departments in the University may also make such supplementary rules as they deem necessary for the purposes stated therein. (7) At the time of admission, every student shall be required to sign a declaration to the effect that he submits himself to the disciplinary jurisdiction of the Vice-Chancellor and other authorities of the University. **30. Maintenance of discipline among students of College, or an Institution not maintained by** **University.—All powers relating to discipline and disciplinary action in relation to students of a College** 30 ----- or an Institution not maintained by the University, shall vest in the Principal of the College or Institution, as the case may be, in accordance with the procedure prescribed by the Ordinances. **31. Admission of Colleges, etc., to the privileges of the University.—(1) Colleges and other** Institutions situated within the jurisdiction of the University may be admitted to such privileges of the University as the Executive Council and the College Development Council may decide on the following conditions, namely:— (i) Every such College or Institution shall have a regularly constituted Governing Body, consisting of not more than fifteen persons approved by the Executive Council and including among others, two teachers of the University to be nominated by the Executive Council and three representatives of the teaching staff of whom the Principal of the College or Institution shall be one. The procedure for appointment of members of the Governing Body and other matters affecting the management of a College or an Institution shall be prescribed by the Ordinances: Provided that the said condition shall not apply in the case of Colleges and Institutions maintained by Government which shall, however, have an Advisory Committee consisting of not more than fifteen persons which shall consist of among others, three teachers including the Principal of the College or Institution, and two teachers of the University nominated by the Executive Council. (ii) Every such College or Institution shall satisfy the Executive Council and the College Development Council on the following matters, namely:— (a) the suitability and adequacy of its accommodation and equipment for teaching; (b) the qualifications and adequacy of its teaching staff and the conditions of their service; (c) the arrangements for the residence, welfare, discipline and supervision of students; (d) the adequacy of financial provision made for the continued maintenance of the College or Institution; and (e) such other matters as are essential for the maintenance of the standards of University education. (iii) No College or Institution shall be admitted to any privileges of the University except on the recommendation of the Academic Council made after considering the report of a Committee of Inspection appointed for the purpose by the Academic Council. (iv) Colleges and Institutions desirous of admission to any privileges of the University shall be required to intimate their intention to do so in writing so as to reach the Registrar not later than the 15th August, preceding the year from which permission applied for is to have effect. (v) A College or an Institution shall not, without the previous permission of the Executive Council, College Development Council and the Academic Council, suspend instruction in any subject or course of study which it is authorised to teach and teaches. (2) Appointment to the teaching staff and Principal of Colleges or Institutions admitted to the privileges of the University shall be made in the manner prescribed by the Ordinances: Provided that nothing in this clause shall apply to Colleges and Institutions maintained by Government. (3) The service conditions of the administrative and other non-academic staff of every College or Institution referred to in clause (2) shall be such as may be laid down in the Ordinances: 31 ----- Provided that nothing in this clause shall apply to Colleges and Institutions maintained by Government. (4) Every College or Institution admitted to the privileges of the University shall be inspected at least once in every two academic years by a Committee appointed by the Academic Council, and the report of the Committee shall be submitted to the Academic Council, which shall forward the same to the College Development Council and Executive Council with such recommendations as it may deem fit to make. (5) The College Development Council and the Executive Council, after considering the report and the recommendations, if any, of the Academic Council, shall forward a copy of the report to the Governing Body of the College or Institution with such remarks, if any, as they may deem fit for suitable action. (6) The Executive Council may, after consulting the College Development Council and Academic Council, withdraw any privileges granted to a College or an Institution, at any time it considers that the College or Institution does not satisfy any of the conditions on the fulfilment of which the College or Institution was admitted to such privileges: Provided that before any privileges are so withdrawn, the Governing Body of the College or Institution concerned shall be given an opportunity to represent to the Executive Council as to why such action should not be taken. (7) Subject to the conditions set forth in clause (1), the Ordinances may prescribe— (i) such other conditions as may be considered necessary; and (ii) the procedure for the admission of Colleges and Institutions to the privileges of the University and for the withdrawal of those privileges. **32. Convocations.—Convocations of the University for the conferring of degrees or for other** purposes shall be held in such manner as may be prescribed by the Ordinances. **33. Acting Chairman of meetings.—Where no provision is made for a President or Chairman to** preside over a meeting of any authority of the University or any Committee of such authority or when the President or Chairman so provided for is absent, the members present shall elect one from among themselves to preside at such meeting. **34. Resignation.—Any member, other than an** _ex officio member of the Court, the Executive_ Council, the Academic Council or any other authority of the University or any Committee of such authority may resign by letter addressed to the Registrar and the resignation shall take effect as soon as such letter is received by the Registrar. **35. Disqualifications.—(1) A person shall be disqualified for being chosen as, and for being, a** member of any of the authorities of the University— (i) if he is of unsound mind; (ii) if he is an undischarged insolvent; (iii) if he has been convicted by a court of law of an offence involving moral turpitude and sentenced in respect thereof to imprisonment for not less than six months. (2) If any question arises as to whether a person is or had been subjected to any of the disqualifications mentioned in clause (1), the question shall be referred to the Visitor and his decision shall be final and no suit or other proceeding shall lie in any civil court against such decision. 32 ----- **36. Residence condition for membership and office.—Notwithstanding anything contained in the** Statutes, a person who is not ordinarily resident in India shall not be eligible to be an officer of the University or a member of any authority of the University. **37. Membership of authorities by virtue of membership of other bodies.—Notwithstanding** anything contained in the Statutes, a person who holds any post in the University or is a member of any authority or body of the University in his capacity as a member of a particular authority or body or as the holder of a particular appointment shall hold such office or membership only for so long as he continues to be a member of that particular authority or body or the holder of that particular appointment, as the case may be. **38. Alumni Association.—(1) There shall be an Alumni Association for the University.** (2) The subscription for membership of the Alumni Association shall be prescribed by the Ordinances. (3) No member of the Alumni Association shall be entitled to vote or stand for election unless he has been a member of the Association for at least one year prior to the date of election and is a degree holder of the University of at least five years standing: Provided that the condition relating to the completion of one year’s membership shall not apply in the case of the first election. **39. Students’ Council.—(1) There shall be constituted in the University, a Students’ Council for** every academic year, consisting of— (i) the Dean of Students' Welfare who shall be the Chairman of the Students’ Council; (ii) twenty students to be nominated by the Academic Council on the basis of merit in studies, sports and extra-curricular activities; and (iii) such number of elected representatives of students as may be specified by the Academic Council: Provided that any student of the University shall have the right to bring up any matter concerning the University before the Students' Council if so permitted by the Chairman, and he shall have the right to participate in the discussions at any meeting when the matter is taken up for consideration. (2) The functions of the Students' Council shall be to make suggestions to the appropriate authorities of the University in regard to the programmes of studies, students' welfare and other matters of importance, in regard to the working of the University in general and such suggestions shall be made on the basis of consensus of opinion. (3) The Students' Council shall meet at least once in an academic year preferably in the beginning of that year. **40. Ordinances, how made.—(1) The first Ordinances made under sub-section (2) of section 30 may** be amended, repealed or added to at any time by the Executive Council in the manner specified in the following clauses. (2) No Ordinance in respect of the matters enumerated in sub-section (1) of section 30 shall be made by the Executive Council unless a draft of such Ordinance has been proposed by the Academic Council. (3) The Executive Council shall not have power to amend any draft of any Ordinance proposed by the Academic Council under clause (2), but may reject the proposal or return the draft to the Academic Council for re-consideration, either in whole or in part, together with any amendment which the Executive Council may suggest. 33 ----- _(4) Where the Executive Council has rejected or returned the draft of an Ordinance proposed by the_ Academic Council, the Academic Council may consider the question afresh and in case the original draft is reaffirmed by a majority of not less than two-thirds of the members present and voting and more than half the total number of members of the Academic Council, the draft may be sent back to the Executive Council which shall either adopt it or refer it to the Visitor whose decision shall be final. (5) Every Ordinance made by the Executive Council shall come into effect immediately. (6) Every Ordinance made by the Executive Council shall be submitted to the Visitor within two weeks from the date of its adoption. (7) The Visitor shall have the power to direct the University to suspend the operation of any Ordinance. (8) The Visitor shall inform the Executive Council about his objection to the Ordinance referred to in clause (7) and may, after receiving the comments of the University, either withdraw the order suspending the Ordinance or disallow the Ordinance, and his decision shall be final. **41. Regulations.—(1) The authorities of the University may make Regulations consistent with the** Act, the Statutes and the Ordinances for the following matters, namely:— (i) laying down the procedure to be observed at their meetings and the number of members required to form a quorum; (ii) providing for all matters which are required by the Act, the Statutes or the Ordinances to be prescribed by Regulations; (iii) providing for all other matters solely concerning such authorities or committees appointed by them and not provided for by the Act, the Statutes or the Ordinances. (2) Every authority of the University shall make Regulations providing for the giving of notice to the members of such authority of the dates of meetings and of the business to be considered at meetings and for the keeping of a record of the proceedings of meetings. (3) The Executive Council may direct the amendment in such manner as it may specify of any Regulation made under the Statutes or the annulment of any such Regulation. **42. Delegation of Powers.—Subject to the provisions of the Act and the Statutes, any officer or** authority of the University may delegate his or its powers to any other officer or authority or person under his or its respective control and subject to the condition that overall responsibility for the exercise of the powers so delegated shall continue to vest in the officer or authority delegating such powers. 34 -----

19-Mar-2007

11

The Sports Broadcasting Signals (Mandatory Sharing with PrasarBharati) Act, 2007

https://www.indiacode.nic.in/bitstream/123456789/2076/1/A2007-11.pdf

central

# THE SPORTS BROADCASTING SIGNALS (MANDATORY SHARING WITH PRASAR BHARATI) ACT, 2007 _______ ARRANGEMENT OF SECTIONS ________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II MANDATORY SHARING OF SPORTS BROADCASTING SIGNALS WITH PRASAR BHARATI 3. Mandatory sharing of certain sports broadcasting signals. 4. Penalties. CHAPTER III POWERS OF THE CENTRAL GOVERNMENT TO ISSUE GUIDELINES 5. Power of the Central Government to issue Guidelines. CHAPTER IV MISCELLANEOUS 6. Validation. 7. Power of the Central Government to make rules. 8. Rules and Guidelines to be laid before Parliament. 9. Saving. 10. Repeal and saving. ----- # THE SPORTS BROADCASTING SIGNALS (MANDATORY SHARING WITH PRASAR BHARATI) ACT, 2007 ACT NO. 11 OF 2007 [19th March, 2007.] # An Act to provide access to the largest number of listeners and viewers, on a free to air basis, of sporting events of national importance through mandatory sharing of sports broadcasting signals with Prasar Bharati and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-eighth Year of the Republic of India as follows:– CHAPTER I PRELIMINARY **1. Short title, extent and commencement.–(1) This Act may be called the Sports Broadcasting** Signals (Mandatory Sharing with Prasar Bharati) Act, 2007. (2) It extends to the whole of India. (3) Save as otherwise provided, it shall be deemed to have come into force on the 11th day of November, 2005. **2. Definitions.–(1) In this Act, unless the context otherwise requires,–** (a) “broadcaster” means any person who provides a content broadcasting service and includes a broadcasting network service provider when he manages and operates his own television or radio channel service; (b) “broadcasting” means assembling and programming any form of communication content, like signs, signals, writing, pictures, images and sounds, and either placing it in the electronic form on electro-magnetic waves on specified frequencies and transmitting it through space or cables to make it continuously available on the carrier waves, or continuously streaming it in digital data form on the computer networks, so as to be accessible to single or multiple users through receiving devices either directly or indirectly; and all its grammatical variations and cognate expressions; (c) “broadcasting service” means assembling, programming and placing communication content in electronic form on the electro-magnetic waves on specified frequencies and transmitting it continuously through broadcasting network or networks so as to enable all or any of the multiple users to access it by connecting their receiver devices to their respective broadcasting networks and includes the content broadcasting services and the broadcasting network services; (d) “broadcasting networks service” means a service, which provides a network of infrastructure of cables or transmitting devices for carrying broadcasting content in electronic form on specified frequencies by means of guided or unguided electro-magnetic waves to multiple users, and includes the management and operation of any of the following: (i) Teleport/Hub/Earth Station, _(ii) Direct-to-Home (DTH) Broadcasting Network,_ _(iii) Multi-system Cable Television Network,_ _(iv) Local Cable Television Network,_ _(v) Satellite Radio Broadcasting Network,_ _(vi) any other network service as may be prescribed by the Central Government;_ (e) “cable television channel service” means the assembly, programming and transmission by cables of any broadcasting television content on a given set of frequencies to multiple subscribers; ----- (f) “cable television network” means any system consisting of closed transmission paths and associated signal generation, control and distribution equipment, designed to receive and re-transmit television channels or programmes for reception by multiple subscribers; (g) “community radio service” means terrestrial radio broadcasting intended and restricted only to a specific community and within specified territory; (h) “content” means any sound, text, data, picture (still or moving), other audio-visual representation, signal or intelligence of any nature or any combination thereof which is capable of being created, processed, stored, retrieved or communicated electronically; (i) “content broadcasting service” means the assembling, programming and placing content in electronic form and transmitting or retransmitting the same on electromagnetic waves on specified frequencies, on a broadcasting network so as to make it available for access by multiple users by connecting their receiving devices to the network, and includes the management and operation of any of the following: (i) terrestrial television service, (ii) terrestrial radio service, (iii) satellite television service, (iv) satellite radio service, (v) cable television channel service, (vi) community radio service, (vii) any other content broadcasting services as may be prescribed by the Central Government; (j) “Direct-to-Home (DTH) broadcasting service” means a service for multi-channel distribution of programmes direct to a subscriber’s premises without passing through an intermediary such as a cable operator by up linking to a satellite system; (k) “Guidelines” means the Guidelines issued under section 5; (l) “multi-system cable television network” means a system for multi-channel downlinking and distribution of television programmes by a land-based transmission system using wired cable or wireless cable or a combination of both for simultaneous reception either by multiple subscribers directly or through one or more local cable operators; (m) “Prasar Bharati” means the Corporation known as the Prasar Bharati (Broadcasting Corporation of India) established under sub-section (1) of section 3 of the Prasar Bharati (Broadcasting Corporation of India) Act, 1990 (25 of 1990); (n) “prescribed” means prescribed by rules made under this Act; (o) “satellite television service” means a television broadcasting service provided by using a satellite, and received with or without the help of a local delivery system but does not include Directto-Home delivery service; (p) “satellite radio service” means a radio broadcasting service provided by using a satellite and directly receivable through receiver sets by multiple subscribers in India; _(q) “service provider” means provider of a broadcasting service;_ _(r) “specified” means specified under the Guidelines issued under section 5;_ _(s) “sporting events of national importance” means such national or international sporting events,_ held in India or abroad, as may be notified by the Central Government in the Official Gazette to be of national importance; _(t) “terrestrial television service” means a television broadcasting service provided over the air by_ using a land-based transmitter and directly received through receiver sets by the public; ----- _(u) “terrestrial radio service” means a radio broadcasting service provided over the air by using a_ land-based transmitter and directly received through receiver sets by the public. (2) Words and expressions used and not defined in this Act and defined in the Cable Television Networks (Regulation) Act, 1995 (7 of 1995), the Telecom Regulatory Authority of India Act, 1997 (24 of 1997), the Indian Telegraph Act, 1885 (13 of 1885), the Indian Wireless Telegraphy Act, 1933 (17 of 1933) shall have the meanings respectively assigned to them in those Acts. CHAPTER II MANDATORY SHARING OF SPORTS BROADCASTING SIGNALS WITH PRASAR BHARATI **3. Mandatory sharing of certain sports broadcasting signals.–(1) No content rights owner or** holder and no television or radio broadcasting service provider shall carry a live television broadcast on any cable or Direct-to-Home network or radio commentary broadcast in India of sporting events of national importance, unless it simultaneously shares the live broadcasting signal, without its advertisements, with the Prasar Bharati to enable them to re-transmit the same on its terrestrial networks and Direct-to-Home networks in such manner and on such terms and conditions as may be specified. (2) The terms and conditions under sub-section (1) shall also provide that the advertisement revenue sharing between the content rights owner or holder and the Prasar Bharati shall be in the ratio of not less than 75:25 in case of television coverage and 50:50 in case of radio coverage. (3) The Central Government may specify a percentage of the revenue received by the Prasar Bharati under sub-section (2), which shall be utilised by the Prasar Bharati for broadcasting other sporting events. **4. Penalties.–The Central Government may specify penalties to be imposed, including suspension or** revocation of licence, permission or registration, for violation of various terms and conditions as may be specified under section 3, subject to the condition that amount of a pecuniary penalty shall not exceed one crore rupees: Provided that no penalty shall be imposed without giving a reasonable opportunity to the service provider: Provided further that no act or omission on the part of any person after the 11th November, 2005 and before the date of promulgation of the Sports Broadcasting Signals (Mandatory Sharing with Prasar Bharati) Ordinance, 2007(Ord. 4 of 2007), shall be subjected to penalties. CHAPTER III POWERS OF THE CENTRAL GOVERNMENT TO ISSUE GUIDELINES **5. Power of the Central Government to issue Guidelines.–The Central Government shall take all** such measures, as it deems fit or expedient, by way of issuing Guidelines for mandatory sharing of broadcasting signals with Prasar Bharati relating to sporting events of national importance: Provided that the Guidelines issued before the promulgation of the Sports Broadcasting Signals (Mandatory Sharing with Prasar Bharati) Ordinance, 2007(Ord. 4 of 2007), shall be deemed to have been issued validly under the provisions of this section. CHAPTER IV MISCELLANEOUS **6.Validation.–(1) The provisions of the Guidelines issued by the Central Government for** Downlinking of Television Channels on the 11th November, 2005 and for Uplinking from India on the 2nd December, 2005 for mandatory sharing of the sports broadcasting signals shall be deemed to be valid as if they have been issued under this Act. (2) Notwithstanding anything contained in any judgement, decree or order of any court, tribunal or other authority, any action taken by the Central Government or the Prasar Bharati in pursuance of the Guidelines referred to in sub-section (1) shall be deemed to be and to have always been for all purposes in accordance with the law, as if the Guidelines had been validly in force at all material times and notwithstanding anything as aforesaid and without prejudice to the generality of the foregoing provisions, ----- no legal proceeding shall be maintained or continued in any court for the enforcement of any direction given by any court or any decree or order which would not have been so given had the Guidelines been validly in force at all material times. **7. Power of the Central Government to make rules.–The Central Government may, by** notification in the Official Gazette, make rules for carrying out the provisions of this Act. **8. Rules and Guidelines to be laid before Parliament.–Every rule and Guidelines made and** issued, as the case may be, under this Act shall be laid, as soon as may be after it is made or issued, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or Guidelines, or both Houses agree that the rule or Guidelines should not be made, the rule or Guidelines shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or Guidelines. **9. Saving.–The relevant provisions under the Guidelines for Downlinking of Television Channels** issued on the 11th November, 2005 and the Guidelines for Up linking from India issued on the 2nd December, 2005 for mandatory sharing of sports broadcasting signals with Prasar Bharati, shall continue to remain in force till fresh Guidelines are issued under this Act. **10. Repeal and saving.–(1) The Sports Broadcasting Signals (Mandatory Sharing with Prasar** Bharati) Ordinance, 2007 (Ord. 4 of 2007) is hereby repealed. (2) Notwithstanding the repeal of the Sports Broadcasting Signals (Mandatory Sharing with Prasar Bharati) Ordinance, 2007 (Ord. 4 of 2007), anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act. ________ -----

11-May-2007

23

The National Rural Employment Guarantee (Extension to Jammu and Kashmir) Act, 2007

https://www.indiacode.nic.in/bitstream/123456789/2088/3/A2007-23.pdf

central

# THE NATIONAL RURAL EMPLOYMENT GUARANTEE (EXTENSIONTO JAMMU ANDKASHMIR) ACT, 2007 _____ ARRANGEMENT OF SECTIONS _____ SECTIONS 1. Short title and commencement. 2. Extension and amendment of the National Rural Employment Guarantee Act, 2005. 3. Construction of reference to a law not in force in Jammu and Kashmir. ----- # THE NATIONAL RURAL EMPLOYMENT GUARANTEE (EXTENSION TO JAMMU AND KASHMIR) ACT, 2007 ACT NO. 23 OF 2007 [11th May,2007.] # An Act to provide for the extension of the National Rural Employment Guarantee Act, 2005 to the State of Jammu and Kashmir*. BE it enacted by Parliament in the Fifty-eighth Year of the Republic of India as follows:– **1. Short title and commencement.–(1) This Act maybe called the National Rural Employment** Guarantee (Extension to Jammu and Kashmir*) Act, 2007. (2) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint; and different dates may be appointed for different areas in the State and any reference to the commencement of this Act shall be construed as a reference to the coming into force of that Act in such areas. **2. Extension and amendment of the National Rural Employment Guarantee Act, 2005.–(1) The** National Rural Employment Guarantee Act, 2005 (42 of 2005) (hereinafter referred to as the principal Act) and all rules, orders and schemes made there under by the Central Government are hereby extended to, and shall be in force in, the State of Jammu and Kashmir*. (2) With effect from the date of commencement of this Act, in the principal Act, in sub-section (2) of section 1, the words “except the State of Jammu and Kashmir*” shall be omitted. **3. Construction of reference to a law not in force in Jammu and Kashmir.–Any reference in any** Act mentioned in the principal Act to a law which is not in force in the State of Jammu and Kashmir* shall, in relation to that State, be construed as a reference to the corresponding law, if any, in force in that State. ______ 1. 6th June, 2007, vide notification no. S.O. 943(E), dated 4th June, 2007, see Gazette of India, Extraordinary, Part II, sec. 3(ii). *. Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and Kashmir and the Union territory of Ladakh. -----

5-Jun-2007

29

The National Institutes of Technology, Science Education and Research Act, 2007

https://www.indiacode.nic.in/bitstream/123456789/2083/1/AAA2007__29.pdf

central

# THE NATIONAL INSTITUTES OF TECHNOLOGY, SCIENCE EDUCATION AND RESEARCH ACT, 2007 __________________ # ARRANGEMENT OF SECTIONS __________________ CHAPTER I PRELIMINARY SECTIONS 1. Short title and commencement. 2. Declaration of certain Institutions as Institutions of national importance. 3. Definitions. CHAPTER II THE INSTITUTES 4. Incorporation of Institutes. 5. Effect of incorporation of Institutes. 5A. Effect of incorporation of Bengal Engineering and Science University, Shibpur. 6. Powers of Institutes. 7. Institutes to be open to all races, creeds and classes. 8. Teaching at Institutes. 9. Visitor. 10. Authorities of Institutes. 11. Board of Governors. 11A. Board of Institutes of Second Schedule and Third Schedule. 12. Term of office of, vacancies among, and allowances payable to, members of Board. 13. Powers and functions of Board. 14. Senate. 15. Functions of Senate. 16. Chairperson of Board. 17. Director and Deputy Director. 18. Registrar. 19. Other authorities and officers. 20. Grants by Central Government. 21. Fund of Institute. 22. Accounts and audit. 23. Pension and provident fund. 24. Appointments. 25. Statutes. 26. Statutes how made. 27. Ordinances. 28. Ordinances how made. 29. Tribunal of Arbitration. CHAPTER III THE COUNCIL 30. Establishment of Council. 30A. [Omitted.] 31. Term of office of, vacancies among, and allowances payable to members of Council. 32. Functions of Council. 33. Chairman of Council. 1 ----- SECTIONS 34. Power to make rules in respect of matters in this Chapter. CHAPTER IV MISCELLANEOUS 35. Acts and proceedings not to be invalidated by vacancies, etc. 36. Power to remove difficulties. 37. Transitional provisions. THE FIRST SCHEDULE. THE SECOND SCHEDULE. THE THIRD SCHEDULE. 2 ----- THE [2][NATIONAL INSTITUTES OF TECHNOLOGY, SCIENCE EDUCATION AND # RESEARCH] ACT, 2007 ACT NO. 29 OF 2007 [5th June, 2007.] # An Act to declare [1][certain institutions of technology, science education and research] to be Institutions of national importance and to provide for instructions and research in branches of engineering, technology, management, education, sciences and arts and for the advancement of learning and dissemination of knowledge in such branches and for certain other matters connected with such institutions. BE it enacted by Parliament in the Fifty-eighth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title and commencement.—(1) This Act may be called the** [2][National Institutes of Technology, Science Education and Research] Act, 2007. (2) It shall come into force on such date[3] as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act. **2. Declaration** **of certain Institutions as Institutions of national importance.—Whereas the** objects of the institution mentioned in [4][the First Schedule, the Second Schedule and the Third Schedule] are such as to make them Institutions of national importance, it is hereby declared that each such institute is an Institution of national importance. **3. Definitions.—In this Act, unless the context otherwise requires,—** (a) “Board”, in relation to any Institute, means the Board of Governors thereof; (b) “Chairperson”, means the Chairperson of the Board; (c) “Corresponding Institute”, in relation to a society mentioned in column (2) of [4][the First Schedule, the Second Schedule and the Third Schedule] means the Institute as specified in column (3) of [4][the First Schedule, the Second Schedule and the Third Schedule]; (d) “Council”, means the Council established under sub-section (1) of section 30 [5][ [6]*** [7]***]; (e) “Deputy Director”, in relation to any Institute, means the Deputy Director thereof; (f) “Director”, in relation to any Institute, means the Director thereof; (g) “Institute” means any of the Institutions mentioned in column (3) of [4][the First Schedule, the Second Schedule and the Third Schedule]; (h) “Notification” means a notification published in the Official Gazette; (i) “Prescribed” means prescribed by rules made under this Act; (j) “Registrar” in relation to any Institute, means the Registrar thereof; 1. Subs. by Act 28 of 2012, s.2, for “certain institutions of technology” (w.e.f. 7-6-2012). 2. Subs. by s. 3, ibid., for “National Institutes of Technology” (w.e.f. 7-6-2012). 3. 15th August, 2007, vide notification No. S.O. 1384(E), dated 9th August, 2007, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 4. Subs. by Act 9 of 2014, s. 2, for “ the First Schedule and the Second Schedule” (w.e.f. 4-3-2014). 5. Ins. by Act 28 of 2012, s. 5 (w.e.f. 7-6-2012). 6. The words, brackets, figures and letter “or sub-section (1) of section 30A” omitted by Act 9 of 2014, s. 3 (w.e.f. 4-3-2014). 7. The words “as the case may be” omitted by Act 2 of 2018, s. 3 and The Second Schedule (w.e.f. 5-1-2018). 3 ----- (k) “Schedule” means [1][the First Schedule, the Second Schedule and the Third Schedule]; (l) “Senate” in relation to any Institute, means the Senate thereof; (m) “Society” means any of the societies registered under the Societies Registration Act, 1860 (21 of 1860) and mentioned in column (2) of the [1][the First Schedule, the Second Schedule and the Third Schedule]; (n) “Statutes and Ordinances”, in relation to any Institute, means the Statutes and Ordinances of that Institute made under this Act. CHAPTER II THE INSTITUTES **4. Incorporation of Institutes.—(1) Each of the Institutes mentioned in column (3) of the [2][the First** Schedule, the Second Schedule and the Third Schedule] shall be a body corporate having perpetual succession and a common seal and shall, by its name, sue and be sued. [3][(1A) The Bengal Engineering and Science University, Shibpur shall be deemed to have been incorporated under this Act, and on such incorporation, be called the Indian Institute of Engineering Science and Technology, Shibpur.] (2) The body corporate constituting each of the said Institutes shall consist of a Chairperson, a Director and other members of the Board for the time being of the institute. **5. Effect of incorporation of Institutes.—On and from the commencement of this Act,—** (a) Any reference to a society in any law, other than this Act, or in any contract or other instrument shall be deemed as a reference to the corresponding Institute; (b) All property, movable and immovable, of or belonging to a society shall vest in the corresponding Institute; (c) All the rights and liabilities of a society shall be transferred to, and be the rights and liabilities of the corresponding Institute; and (d) every person employed by a society, immediately before such commencement shall hold his office or service in the corresponding Institute for the same tenure, at the same remuneration and upon the same terms and conditions and with the same rights and privileges as to pension, leave, gratuity, provident fund and other matters as he would have held if this Act had not been passed, and shall continue to do so unless and until his employment is terminated or until such tenure, remuneration and terms and conditions are duly altered by the Statutes: Provided that if the alteration so made is not acceptable to such employee, his employment may be terminated by the Institute in accordance with the terms of contract with the employee or, if no provision is made therein in this behalf, on payment to him by the Institute, of compensation equivalent to three months remuneration in the case of permanent employee and one month’s remuneration in the case of other employee. 4[5A. Effect of incorporation of Bengal Engineering and Science University, Shibpur.—On and from the commencement of the National Institutes of Technology, Science Education and Research (Amendment) Act, 2014 (9 of 2014)— (a) any reference to the Bengal Engineering and Science University, Shibpur in any law, contract or other instrument shall be deemed as a reference to the Indian Institute of Engineering Science and Technology, Shibpur; 1. Subs. by Act 9 of 2014, s.3, for “the First Schedule and the Second Schedule” (w.e.f. 4-3-2014). 2. Subs. by s.4, ibid., for “the First Schedule and the Second Schedule” (w.e.f. 4-3-2014). 3. Ins. by s. 4, ibid. (w.e.f. 4-3-2014). 4. Ins. by s. 5, ibid. (w.e.f. 4-3-2014). 4 ----- (b) all property, movable and immovable, of or belonging to the Bengal Engineering and Science University, Shibpur, shall vest in the Indian Institute of Engineering Science and Technology, Shibpur; (c) all the rights and liabilities of the Bengal Engineering and Science University, Shibpur shall be the rights and liabilities of the Indian Institute of Engineering Science and Technology, Shibpur; (d) every person (including Director, officers and other employees) who is employed in the Bengal Engineering and Science University, Shibpur, immediately before the date of commencement of the National Institutes of Technology, Science Education and Research (Amendment) Act, 2014 (9 of 2014), shall, on and after such commencement, become an employee of the Indian Institute of Engineering Science and Technology, Shibpur and shall hold his office or service by the same tenure, at the same remuneration and upon the same terms and conditions and with the same rights and privileges as to pension, leave, gratuity, provident fund and other matters as he would have held the same on the date of the commencement of the National Institutes of Technology, Science Education and Research (Amendment) Act, 2014, as if the said Act had not been brought into force and shall continue to do so until his employment is terminated or until such tenure, remuneration, terms and conditions are altered by the Statutes or Ordinances: Provided that the tenure, remuneration, terms and conditions of service of such person shall not be altered to his disadvantage without the previous approval of the Central Government: Provided further that any reference to the Chancellor and the Vice-Chancellor of the Bengal Engineering and Science University, Shibpur in any law, instrument or other document made before the commencement of the said Act, shall be construed as a reference to the Visitor and the Director, respectively, of the Indian Institute of Engineering Science and Technology, Shibpur; (e) Vice-Chancellor of the Bengal Engineering and Science University, Shibpur shall be the Director of the Indian Institute of Engineering Science and Technology, Shibpur till such date the Central Government appoints new Director for the Indian Institute of Engineering Science and Technology, Shibpur; (f) any examination conducted by the Bengal Engineering and Science University, Shibpur immediately before the commencement of the National Institutes of Technology, Science Education and Research (Amendment) Act, 2014 (9 of 2014) for admission or award of degrees shall be valid examination and shall be deemed to have been conducted by the Indian Institute of Engineering Science and Technology, Shibpur.] **6. Powers of Institutes.—(1) Subject to the provisions of this Act, every Institute shall exercise the** following powers and perform the following duties, namely:— (a) to provide for instruction and research in such branches of engineering and technology, management, education, sciences and arts, as the Institute may think fit, and for the advancement of learning and dissemination of knowledge in such branches; (b) to hold examinations and grant degrees, diplomas and other academic distinctions or titles; (c) to confer honorary degrees or other distinctions; (d) to fix, demand and receive fees and other charges; (e) to establish, maintain and manage halls and hostels for the residence of students; (f) to supervise and control the residence and regulate the discipline of students of the Institute and to make arrangements for promoting their health, general welfare and cultural and corporate life; (g) to provide for the maintenance of units of the National Cadet Corps for the students of the Institute; 5 ----- (h) to institute academic and other posts with the prior approval of the Central Government, and to make appointments thereto excluding the Director [1]***; (i) to frame Statutes and Ordinances and to alter, modify or rescind the same; (j) to deal with any property belonging to or vested in the institute in such manner as the Institute may deem fit for advancing the objects of the Institute; (k) to receive gifts, grants, donations or benefactions from the Government and to receive bequests, donations and transfers of movable or immovable properties from testators, donors or transferors, as the case may be; (l) to co-operate with educational or other institutions in any part of the world having objects wholly or partly similar to those of the Institute by exchange of teachers and scholars and generally in such manner as may be conducive to their common objects; (m) to institute and award fellowships, scholarships, exhibitions, prizes and medals; (n) to undertake consultancy in the areas or disciplines relating to the Institute; and _(o) to do all such things as may be necessary, incidental or conducive to the attainment of all or_ any of the objects of the Institute. (2) Notwithstanding anything contained in sub-section (1), an Institute shall not dispose of in any manner any immovable property without the prior approval of the Central Government. **7. Institutes to be open to all races, creeds and classes.—(1) Every Institute shall be open to** persons of either sex and of whatever race, creed, caste or class, and no test or condition shall be imposed as to religious belief or profession in admitting or appointing members, students, teachers or workers or in any other connection whatsoever. (2) No bequest, donation or transfer of any property shall be accepted by any Institute, which in the opinion of the Council involves conditions or obligations opposed to the spirit and object of this section. **8. Teaching at Institutes.—All teaching at each of the Institutes shall be conducted by or in the name** of the Institute in accordance with the Statutes and Ordinances made in this behalf. **9. Visitor.—(1) The President of India shall be the Visitor of every Institute.** (2) The Visitor may appoint one or more persons to review the work and progress of any Institute and to hold inquiries into the affairs thereof and to report thereon in such manner as the Visitor may direct. (3) Upon receipt of any such report, the Visitor may take such action and issue such directions as he considers necessary in respect of any of the matters dealt with in the report and the Institute shall be bound to comply with such directions within reasonable time. **10. Authorities of Institutes.—The following shall be the authorities of an Institute, namely:—** (a) a Board of Governors; (b) a Senate; and (c) such other authorities as may be declared by the Statutes to be the authorities of the Institute. **11. Board of Governors.—The Board of every** [2][Institute mentioned in the First Schedule] shall consist of the following members, namely:— (a) the Chairperson to be nominated by the Visitor; 1. The words “and the Deputy Director” omitted by Act 28 of 2012, s. 7 (w.e f. 7-6-2012). 2. Subs. by s.8, ibid., for “Institute” (w.e.f. 7-6-2012). 6 ----- (b) the Director, ex officio; (c) two persons not below the rank of the Joint Secretary to the Government of India to be nominated by the Central Government from amongst persons dealing with technical education and finance; (d) two persons to be nominated by the Government of the State in which the [1][Institute mentioned in the First Schedule] is situated, from amongst persons, who, in the opinion of that Government, are technologists or industrialists of repute; (e) two persons, at least one of whom shall be a woman, having special knowledge or practical experience in respect of education, engineering or science to be nominated by the Council; [2]*** (f) one professor and one assistant professor or a lecturer of the [1][Institute mentioned in the First Schedule] to be nominated by the Senate; 3[(g) the Director of the Indian Institute of Technology in whose zone the Institute is located, or his nominee, not below the rank of a Professor]. **4[11A. Boards of Institute of** **5[Second Schedule and Third Schedule].—The Board of every** Institute mentioned in[ 6][the Second Schedule and the Third Schedule] shall consist of the following members, namely:— (a) the Chairperson to be nominated by the Visitor; (b) Secretary, Department of Higher Education, Government of India, or his nominee not below the rank of the Joint Secretary to the Government of India, ex officio; (c) Director of the Institute, ex officio; (d) Director of Indian Institute of Science, Bangalore, ex officio; (e) Director of one of the Indian Institutes of Technology, to be nominated by the Central Government; (f) two Secretaries to the Government of India, to be nominated by the Central Government representing its Scientific or Industrial Ministries; (g) Chief Secretary of the State in which the Institute is located, or his nominee not below the rank of the Joint Secretary to the Government of India, ex officio; (h) two professors of the Institute to be nominated by the Senate; (i) two eminent scientists, to be nominated by the Council, having special knowledge of practical experience in respect of education, engineering or science, one of whom shall be a woman; and (j) Financial Advisor, Ministry of Human Resource Development, ex officio.] **12. Term of office of, vacancies among, and allowances payable to, members of Board.—Save as** otherwise provided in this section,— (a) the term of office of the Chairperson or other members of the Board shall be three years from the date of his nomination; 1. Subs by Act 28 of 2012, s.8, for “Institute”(w.e.f. 7-6-2012). 2. The word “and” omitted by s. 8, ibid. (w.e.f. 7-6-2012). 3. Ins. by s.8, ibid. (w.e.f. 7-6-2012). 4. Ins. by s.9, ibid. (w.e.f. 7-6-2012). 5. Subs. by Act 9 of 2014, s.6, for “Second Schedule” (w.e.f. 4-3-2014). 6. Subs. by s.6, ibid., for “the Second Schedule” (w.e.f. 4-3-2014). 7 ----- (b) the term of office of an _ex officio member shall continue so long as he holds the office by_ virtue of which he is a member; (c) the term of office of a member nominated under clause (f) of section 11 [1][and clause (h) of section 11A] shall be two years from the date of his nomination; (d) a casual vacancy shall be filled up in accordance with the provisions of section 11 [1][or section 11A, as the case may be;] (e) the term of office of a member nominated to fill a casual vacancy shall continue for the remainder of the term of the member in whose place, he has been nominated; (f) the member of the Board shall be entitled to such allowances, if any, from the Institute as may be provided for in the Statutes but no member other than the members referred to in clauses (b) and (f) of section 11[ 1][and clauses (c) and (h) of section 11A] shall be entitled to any salary by reason of this clause. **13. Powers and functions of Board.—(1) Subject to the provisions of this Act, the Board of every** Institute shall be responsible for the general superintendence, direction and control of the affairs of the Institute and shall exercise all the powers of the Institute not otherwise provided for by this Act, the Statutes and the Ordinances, and shall have the power to review the acts of the Senate. (2) Without prejudice to the provisions of sub-section (1), the Board of every Institute shall,— (a) take decisions on questions of policy relating to the administration and working of the Institute; (b) institute courses of study at the Institute; (c) make Statutes; (d) institute and appoint persons to academic as well as other posts in the Institute; (e) consider and modify or cancel Ordinances; (f) consider and pass resolutions on the annual report, the annual accounts and the budget estimates of the Institute for the next financial year as it thinks fit and submit them to the Council together with a statement of its development plans; (g) exercise such other powers and perform such other duties as may be conferred or imposed upon it by this Act or the Statutes; (3) The Board shall have the power to appoint such committees, as it considers necessary for the exercise of its powers and the performance of its duties under this Act. **14. Senate.—The Senate of every Institute shall consist of the following persons, namely:—** (a) the Director, ex officio, who shall be the Chairman of the Senate; (b) the Deputy Director, ex officio; (c) the Professors appointed or recognised as such by the Institute for the purpose of imparting instructions in the Institute; (d) three persons, one of whom shall be a woman, not being employees of the Institute, to be nominated by the Chairperson in consultation with the Director, from amongst educationists of repute, one each from the field of science, engineering and humanities; (e) such other members of the staff as may be laid down in the Statutes. **15. Functions of Senate.—Subject to the provisions of this Act, the Statutes and the Ordinances, the** Senate of an Institute shall have the control and general regulation, and be responsible for the 1. Ins. by Act 28 of 2012, s. 10 (w.e.f. 7-6-2012). 8 ----- maintenance of standards of instruction, education and examination in the Institute and shall exercise such other powers and perform such other duties as may be conferred or imposed upon it by the Statutes. **16. Chairperson of Board.—(1) The Chairperson shall ordinarily preside at the meetings of the** Board and at the Convocations of the Institute. (2) It shall be the duty of the Chairperson to ensure that the decisions taken by the Board are implemented. (3) The Chairperson shall exercise such other powers and perform such other duties as may be assigned to him by this Act or the Statutes. **17. Director and Deputy Director.—(1) The Director [1]*** of an Institute shall be appointed by the** Visitor, on such terms and conditions of service and on the recommendations of a Selection Committee constituted by him in such manner, as may be prescribed by the Statutes. (2) The Director shall be the principal academic and executive officer of the Institute and shall be responsible for the proper administration of the Institute and for the imparting of instruction and maintenance of discipline therein. (3) The Director shall submit annual reports and accounts to the Board. (4) The Director shall exercise such other powers and perform such other duties as may be assigned to him by this Act or the Statutes or Ordinances. 2[(5) The Deputy Director of every Institute shall be appointed in such manner and on such terms and conditions as may be laid down by the Statutes and shall exercise such powers and perform such duties as may be assigned to him by this Act or the Statutes or by the Director.] **18. Registrar.—(1) The Registrar of every Institute shall be appointed on such terms and conditions** as may be laid down by the Statutes and shall be the custodian of records, the common seal, the funds of the Institute and such other property of the Institute as the Board shall commit to his charge. (2) The Registrar shall act as the Secretary of the Board, Senate and such committees as may be prescribed by the Statutes. (3) The Registrar shall be responsible to the Director for the proper discharge of his functions. (4) The Registrar shall exercise such other powers and perform such other duties as may be assigned to him by this Act or the Statutes or by the Director. **19. Other authorities and officers.—The powers and duties of authorities and officers other than** those mentioned above shall be determined by the Statutes. **20. Grants by Central Government.—For the purpose of enabling the Institutes to discharge their** functions efficiently under this Act, the Central Government may, after due appropriation made by Parliament by law in this behalf, pay to every Institute in each financial year such sums of money and in such manner as it may think fit. **21. Fund of Institute.—(1) Every Institute shall maintain a Fund to which shall be credited,—** (a) all moneys provided by the Central Government; (b) all fees and other charges received by the Institute; (c) all moneys received by the Institute by way of grants, gifts, donations, benefactions, bequests or transfers; and (d) all moneys received by the Institute in any other manner or from any other source. 1. The words “and Deputy Director” omitted by Act 28 of 2012, s.11 (w. e. f 7-6-2012). 2. Subs. by s. 11, ibid., for sub-section (5) (w.e.f 7-6-2012). 9 ----- (2) All moneys credited to the Fund of every Institute shall be deposited in such banks or invested in such manner as the Institute may, with the approval of the Central Government, decide. (3) The Fund of every Institute shall be applied towards meeting the expenses of the Institute including expenses incurred in the exercise of its powers and discharge of its duties under this Act. **22. Accounts and audit.—(1) Every Institute shall maintain proper accounts and other relevant** records and prepare an annual statement of accounts including the balance sheet in such form as may be specified by notification, by the Central Government in consultation with the Comptroller and Auditor-General of India. (2) The accounts of every Institute shall be audited by the Comptroller and Auditor- General of India and any expenditure incurred by him in connection with such audit shall be payable by the Institute to the Comptroller and Auditor-General of India. (3) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of any Institute shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General of India has in connection with the audit of the Government accounts, and, in particular shall have the rights to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect the offices of the Institute. (4) The accounts of every institute as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament in accordance with such procedure as may be laid down by the Central Government. **23. Pension and provident Fund.—Every Institute shall constitute for the benefit of its employees** such provident or pension fund or provide such insurance scheme as it may deem fit in such manner and subject to such conditions as may be prescribed by the Statutes. **24. Appointments.—All appointments of the staff of every Institute, except that of the Director** [1]***, shall be made in accordance with the procedure laid down in the Statutes, by— (a) the Board, if the appointment is made on the academic staff in the post of Lecturer or above or if the appointment is made on the non-academic staff in any cadre the maximum of the pay scale for which exceeds rupees ten thousand five hundred; (b) the Director, in any other case. **25. Statutes.—Subject to the provisions of this Act, the Statutes may provide for all or any of the** following matters, namely:— (a) the conferment of honorary degrees; (b) the formation of departments of teaching: (c) the fees to be charged for courses of study in the Institute and for admission to the examinations of degrees and diplomas of the Institute; (d) the institution of fellowships, scholarships, exhibitions, medals and prizes. (e) the term of office and the method of appointment of officers of the institute; (f) the qualifications of teachers of the Institute; 1. The words “and Deputy Director” omitted by Act of 28 of 2012, s.12 (w. e. f 7-6-2012). 10 ----- (g) the classification, the method of appointment and the determination of the terms and conditions of service of teachers and other staff of the Institute; (h) the constitution of pension, insurance and provident funds for the benefit of the officers, teachers and other staff of the Institute; (i) the constitution, powers and duties of the authorities of the Institute; (j) the establishment and maintenance of halls and hostels; (k) the conditions of residence of students of the Institute and the levying of fees for residence in the halls and hostels and of other charges; (l) the allowances to be paid to the Chairperson and members of the Board; (m) the authentication of the orders and decisions of the Board; and (n) the meetings of the Board, the Senate, or any Committee, the quorum at such meetings and the procedure to be followed in the conduct of their business. **26. Statutes how made.—(1) The first Statutes of each Institute shall be framed by the Central** Government with the prior approval of the Visitor and a copy of the same shall be laid as soon as may be before each House of Parliament. (2) The Board may, from time to time, make new or additional Statutes or may amend or repeal the Statutes in the manner provided in this section. (3) Every new Statute or addition to the Statutes or any amendment or repeal of Statutes shall require the previous approval of the Visitor who may grant assent or withhold assent or remit it to the Board for consideration. (4) A new Statute or a Statute amending or repealing an existing Statute shall have no validity unless it has been assented to by the Visitor. **27. Ordinances.—Subject to the provisions of this Act and the Statutes, the Ordinances of every** Institute may provide for all or any of the following matters, namely:— (a) the admission of the students to the Institute; (b) the courses of study to be laid down for all degrees and diplomas of the Institute; (c) the conditions under which students shall be admitted to the degree or diploma courses and to the examinations of the Institute, and shall be eligible for degrees and diplomas; (d) the conditions of award of the fellowships, scholarships, exhibitions, medals and prizes; (e) the conditions and mode of appointment and duties of examining bodies, examiners and moderators; (f) the conduct of examinations; (g) the maintenance of discipline among the students of the Institute; and (h) any other matter which by this Act or the Statutes is to be or may be provided for by the Ordinances. **28. Ordinances how made.—(1) Save as otherwise provided in this section, Ordinances shall be** made by the Senate. (2) All Ordinances made by the Senate shall have effect from such date as it may direct, but every Ordinance so made shall be submitted, as soon as may be, to the Board and shall be considered by the Board at its next meeting. (3) The Board shall have power by resolution to modify or cancel any such Ordinance and such Ordinance shall from the date of such resolution stand modified accordingly or cancelled, as the case may be. 11 ----- **29. Tribunal of Arbitration.—(1) Any dispute arising out of a contract between an Institute and any** of its employees shall, at the request of the employee concerned or at the instance of the Institute, be referred to a Tribunal of Arbitration consisting of one member appointed by the Institute, one member nominated by the employee, and an umpire appointed by the Visitor. (2) The decision of the Tribunal shall be final and shall not be questioned in any court. (3) No suit or proceeding shall lie in any court in respect of any matter, which is required by sub-section (1) to be referred to the Tribunal of Arbitration. (4) The Tribunal of Arbitration shall have power to regulate its own procedure. (5) Nothing in any law for the time being in force relating to arbitration shall apply to arbitrations under this section. CHAPTER III THE COUNCIL **30. Establishment of Council .—(1) With effect from such date as the Central Government may, by** notification, specify in this behalf, there shall be established for all the Institutes specified in column (3) of the [1][First Schedule], [2][the Second Schedule and the Third Schedule] a central body to be called the Council. (2) The Council shall consist of the following members, namely:— (a) the Minister in charge of the Ministry or Department of the Central Government having administrative control of the technical education, ex officio, as Chairman; (b) the Secretary to the Government of India in charge of the Ministry or Department of the Central Government having administrative control of the technical education, _ex officio, as_ Vice-Chairman; (c) the Chairperson of every Board, ex officio; (d) the Director of every Institute, ex officio; (e) the Chairman, University Grants Commission, ex officio; (f) the Director General, Council of Scientific and Industrial Research, ex officio; (g) four Secretaries to the Government of India, to represent the Ministries or Departments of the Central Government dealing with biotechnology, atomic energy, information technology and space, _ex officio;_ (h) the Chairman, All India Council for Technical Education, ex officio; (i) not less than three, but not more than five persons to be nominated by the Visitor, at least one of whom shall be a woman, having special knowledge or practical experience in respect of education, industry, science or technology; (j) three members of Parliament, of whom two shall be chosen by the House of the People and one by the Council of States: Provided that the office of member of the Council shall not disqualify its holder for being chosen as or for being, a member of either House of Parliament; (k) two Secretaries to the State Government, from amongst the Ministries or Departments of that Government dealing with technical education where the Institutes are located, ex officio; (l) Financial Advisor, dealing with the Human Resource Development Ministry or Department of the Central Government, ex officio; 1. Subs. by Act of 28 of 2012, s. 13 for “Schedule” (w. e. f 7-6-2012). 2. Ins. by Act 9 of 2014, s.7 (w.e.f. 4-3-2014). 12 ----- (m) one officer not below the rank of Joint Secretary to the Government of India in the Ministry or Department of Central Government having administrative control of the Technical Education, _ex_ _officio, as Member-Secretary._ **[30A.** **_Establishment of Council for the Institutes of Second Schedule.]_** _Ins. by the National_ _Institutes of Technology (Amendment) Act, 2012_ (28 of 2012), s. 9 (w.e.f. 7-6-2012) and omitted by the _National Institutes of Technology, Science Education and Research (Amendment) Act, 2014_ (9 of 2014), _s. 8 (w.e.f. 4-3-2014)._ **31. Term of office of, vacancies among, and allowances payable to members of** **Council.—(1) The terms of office of a member shall be three years from the date of notification:** Provided that the term of office of an ex officio member shall continue so long as he holds office by virtue of which he is such a member. (2) The term of office of a member elected under clause (j) of sub-section (2) of section 30 [1]*** shall expire as soon as he ceases to be member of the House, which elected him. (3) The term of office of a member nominated or elected to fill a casual vacancy shall continue for the remainder of the term of the member in whose place he has been appointed. (4) Notwithstanding anything contained in this section an outgoing member shall, unless the Central Government otherwise directs, continue in office until another person is appointed as a member in his place. (5) The members of the Council other than ex officio member shall be paid such travelling and other allowances as may be prescribed. **32. Functions of Council.—(1) It shall be the general duty of the Council to co-ordinate the activities** of all the Institutes. (2) Without prejudice to the provisions of sub-section (1), the Council shall perform the following functions, namely:— (a) to advise on matters relating to the duration of the courses, the degrees and other academic distinctions to be conferred by the Institutes, admission standards and other academic matters; (b) to lay down policy regarding cadres, methods of recruitment and conditions of service of employees, institution of scholarships and free ships, levying of fees and other matters of common interest; (c) to examine the development plans of each Institute and to approve such of them as are considered necessary and also to indicate broadly the financial implications of such approved plans; (d) to advise the Visitor, if so required, in respect of any function to be performed by him under this Act; and (e) to perform such other functions as are assigned to it by or under this Act. **33. Chairman of Council.—(1) The Chairman of the Council shall ordinarily preside at the meetings** of the Council: Provided that, in his absence, the Vice-Chairman of the Council shall preside at the meetings of the Council. (2) It shall be the duty of the Chairman of the Council to ensure that the decisions taken by the Council are implemented. (3) The Chairman shall exercise such other powers and perform such other duties as are assigned to him by this Act. 1. The words, brackets, letters and figures “and clause (j) of sub-section (2) of section 30A” omitted by Act of 9 of 2014, s.9 (w.e.f. 4-3-2014). 13 ----- (4) The Council shall meet once in every year and follow such procedure in its meetings as may be prescribed. **34. Power to make rules in respect of matters in this Chapter.—(1) The Central Government may,** by notification, make rules to carry out the purposes of this Chapter. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the travelling and other allowances payable to members of the Council under sub-section (5) of section 31; and (b) the procedure to be followed in the meetings of the Council under sub-section (4) of section 33. (3) Every rule made by the Central Government under this Chapter shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session, immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. CHAPTER IV MISCELLANEOUS **35. Acts and proceedings not to be invalidated by vacancies, etc.—No act of the Council, or any** Institute or Board or Senate or any other body set up under this Act or the Statutes, shall be invalid merely by reason of— (a) any vacancy or defect in the constitution thereof, or (b) any defect in the election, nomination or appointment of a person acting as a member thereof, or (c) any irregularity in its procedure not affecting the merits of the case. **36. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made after the expiry of a period of two years from the date on which this Act receives the assent of the President. (2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament. **37. Transitional Provisions.—Notwithstanding anything contained in this Act—** (a) the Board of Governors of every Institute[ 1][mentioned in the First Schedule] functioning as such immediately before the commencement of this Act shall continue to so function until a new Board is constituted for that Institute under this Act, but on the constitution of a new Board under this Act, the member of the Board holding office before such constitution shall cease to hold office; (b) every Senate constituted in relation to every Institute before the commencement of this Act shall be deemed to be the Senate constituted under this Act until a Senate is constituted under this Act for that Institute but on the constitution of new Senate under this Act, the members of the Senate holding office before such constitution shall cease to hold office. 1. Ins. by Act 28 of 2012, s.16 (w.e.f. 7-6-2012). 14 ----- 1[(c) recruitment process and disciplinary proceedings, which had commenced before the commencement of the National Institutes of Technology (Amendment) Act, 2012 (28 of 2012), shall be completed, _mutatis mutandis, in accordance with the relevant provisions in force immediately_ before such commencement. _Explanation.—Recruitment process for a post may be taken to have commenced from the date of_ publication of the advertisement inviting application for the post, and disciplinary proceedings against an employee of the Institute may be taken to have commenced on the date of issue of charge sheet for major penalty of show cause notice for minor penalty to such employee; (d) all matters, which are meant to be provided through Statutes and Ordinances under sections 25 and 27, respectively, shall, till such Statutes and Ordinances are made, be governed, _mutatis mutandis, by the corresponding provisions in force immediately before the commencement of_ this Act.] 2[(e) the court, the Academic Council and the Executive Council of the Bengal Engineering and Science University, Shibpur performing functions as such immediately before the commencement of the National Institutes of Technology, Science Education and Research (Amendment Act, 2014 (9 of 2914), shall continue to function until a Board is constituted for the Indian Institute of Engineering Science and Technology, Shibpur under this Act, but on and after the constitution of a Board under this Act, the members of the Court, the Academic Council and the Executive Council, shall cease to hold office; (f) the authorities of the Bengal Engineering and Science University, Shibpur, by whatever names so called, performing functions as such immediately before the commencement of the National Institutes of Technology, Science Education and Research (Amendment) Act, 2014 (9 of 2014) shall continue to function until a new Authority is appointed or constituted for performing the same functions under the said Act, but on and after such appointment or constitution, the authorities performing the functions under the Bengal Engineering and Science University, Shibpur Act, 2014 (13 of 2004) or any Statutes or Ordinances made thereunder shall cease to hold office; (g) every Senate or any other authorities in the names so called constituted in relation to every Institute before the commencement of the National Institutes of Technology, Science Education and Research (Amendment) Act, 2014 shall be deemed to be the Senate constituted under the said Act until a new Senate is constituted under this Act for that Institute, but on the constitution of a new Senate under this Act, the members of the Senate holding office before such constitution shall cease to hold office; (h) until the first Statutes and the Ordinances are made and brought in force under the National Institutes of Technology, Science Education and Research (Amendment) Act, 2014 (9 of 2014) the Statutes, Ordinances and rules made for the Bengal Engineering and Science University, Shibpur immediately before the commencement of the said Act shall continue to apply to the Indian Institute of Engineering Science and Technology, Shibpur in so far as they are not inconsistent with the provisions of the said Act.] 1. Ins. by Act of 28 of 2012, s.16 (w.e.f. 7-6-2012). 2. Ins. by Act 9 of 2014, s.10 (w.e.f. 4-3-2014). 15 ----- 1[THE FIRST SCHEDULE] [See sections 3 (g), (m) and 4(1)] LIST OF CENTRAL INSTITUTIONS INCORPORATED INTO THE ACT SI. NO. Society 1 2 1. Motilal Nehre National Institute of Technology, Allahabad Society Technology, Allahabad. 2. Maulana Azad National Institute Technology, Maulana Azad Bhopal Society Technology, Bhopal 3. National Institute of Technology, Calicut National Institute Society Calicut. 4. National Institute of Technology, Durgapur National Institute Society Durgapur. 5. National Institute of Technology, Hamirpur National Institute Society Hamirpur. 6. Malaviya National Institute of Technology, Malaviya National Jaipur Society Technology, Jaipur. 7. Dr. B.R. Ambedkar National Institute of Technology, Jalandhar Society of Technology, Jalandhar. 8. National Institute of Technology, Jamshedpur National Institute Society Jamshedpur. 9. National Institute of Technology, Kurukshetra National Institute Society Kurukshetra. 10. Visvesvaraya National Institute of Technology, Nagpur Society Technology, Nagpur. 11. National Institute of Technology, Patna Society National Institute Patna. 12. National Institute of Technology, Rourkela National Institute Society. Rourkela. 13. National Institute of Technology, Silchar National Institute Society. Silchar. 14. National Institute of Technology, Srinagar National Institute Society Srinagar. 15. Sardar Vallabhbhai National Institute of Technology, Surat Society of Technology, Surat. 16. National Institute of Technology, Karnataka, National Institute Surathkal Society. Karnataka, Surathkal. 17. National Institute of Technology, National Institute Tiruchirappalli Society. Tiruchirappalli. 1. The existing Schedule numbered as the First Schedule by Act 28 of 2012, s.19 (w.e.f.7-6-2012). 16 |SI. NO.|Society|Corresponding Institute| |---|---|---| |1|2|3| |1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17.|Motilal Nehre National Institute of Technology, Allahabad Society Maulana Azad National Institute Technology, Bhopal Society National Institute of Technology, Calicut Society National Institute of Technology, Durgapur Society National Institute of Technology, Hamirpur Society Malaviya National Institute of Technology, Jaipur Society Dr. B.R. Ambedkar National Institute of Technology, Jalandhar Society National Institute of Technology, Jamshedpur Society National Institute of Technology, Kurukshetra Society Visvesvaraya National Institute of Technology, Nagpur Society National Institute of Technology, Patna Society National Institute of Technology, Rourkela Society. National Institute of Technology, Silchar Society. National Institute of Technology, Srinagar Society Sardar Vallabhbhai National Institute of Technology, Surat Society National Institute of Technology, Karnataka, Surathkal Society. National Institute of Technology, Tiruchirappalli Society.|Motilal Nehru National Institute of Technology, Allahabad. Maulana Azad National Institute Technology, Bhopal National Institute of Technology, Calicut. National Institute of Technology, Durgapur. National Institute of Technology, Hamirpur. Malaviya National Institute of Technology, Jaipur. Dr. B.R. Ambedkar National Institute of Technology, Jalandhar. National Institute of Technology, Jamshedpur. National Institute of Technology, Kurukshetra. Visvesvaraya National Institute of Technology, Nagpur. National Institute of Technology, Patna. National Institute of Technology, Rourkela. National Institute of Technology, Silchar. National Institute of Technology, Srinagar. Sardar Vallabhbhai National Institute of Technology, Surat. National Institute of Technology, Karnataka, Surathkal. National Institute of Technology, Tiruchirappalli.| ----- |1 2 3|Col2|Col3| |---|---|---| |18. 19. 20. 1[21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 2[31.|National Institute of Technology, Warangal Society National Institute of Technology, Raipur Society National Institute of Technology, Agartala Society National Institute of Technology, Goa, Society National Institute of Technology, Poducherry Society National Institute of Technology, Delhi Society National Institute of Technology, Sumari (Srinagar), Uttarakhand Society National Institute of Technology Sohra (Meghalaya) Society National Institute of Technology, Mizoram Society National Institute of Technology, Manipur Society National Institute of Technology, Nagaland Society National Institute of Technology, Arunachal Pradesh Society National Institute of Technology, Sikkim National Institute of Technology, Andhra Pradesh|National Institute of Technology, Warangal. National Institute of Technology, Raipur. National Institute of Technology, Agartala. National Institute of Technology Goa. National Institute of Technology, Poducherry. National Institute of Technology, Delhi. National Institute of Technology, Uttarakhand. National Institute of Technology, Meghalaya. National Institute of Technology, Mizoram. National Institute of Technology, Manipur. National Institute of Technology, Nagaland. National Institute of Technology, Arunachal Pradesh. National Institute of Technology, Sikkim.] National Institute of Technology, Andhra Pradesh.]| 1. Ins. by Act 28 of 2012, s.19 (w.e.f. 7-6-2012). 2. Ins. by Act 42 of 2016, s. 2 (w.e.f. 20-8-2015). 17 ----- 1[THE SECOND SCHEDULE [See section 3(g), (m), 4(1) and 11A] LIST OF INDIANS OF SCIENCE EDUCATION RESEARCH SI. Sl. No. Society 1 2 1. Indian Institute of Science Education and Research, Kolkata Society Research, Kolkata. 2. Indian Institute of Science Education and Research, Pune Society Research, Pune. 3. Indian Institute of Science Education and Research, Mohali Society Research, Mohali. 4. Indian Institute of Science Education and Research, Bhopal Society Research, Bhopal. 5. Indian Institute of Science Education and Research,Thiruvanathapuram Society. Research, Thiruvanathapuram.] 2[6. Indian Institute of Science Education and Research, Tirupati Society Research, Tirupati. 7. Indian Institute of Science Education and Research, Berhampur Society Research, Berhampur.] 1. Ins. by Act 28 of 2012, s. 19 (w.e.f. 7-6-2012). 2. Ins. by Act 19 of 2017, s. 2 (w.e.f. 30-9-2017). |Sl. No.|Society|Corresponding Institute| |---|---|---| |1|2|3| |1. 2. 3. 4. 5. 2[6. 7.|Indian Institute of Science Education and Research, Kolkata Society Indian Institute of Science Education and Research, Pune Society Indian Institute of Science Education and Research, Mohali Society Indian Institute of Science Education and Research, Bhopal Society Indian Institute of Science Education and Research,Thiruvanathapuram Society. Indian Institute of Science Education and Research, Tirupati Society Indian Institute of Science Education and Research, Berhampur Society|Indian Institute of Science Education and Research, Kolkata. Indian Institute of Science Education and Research, Pune. Indian Institute of Science Education and Research, Mohali. Indian Institute of Science Education and Research, Bhopal. Indian Institute of Science Education and Research, Thiruvanathapuram.] Indian Institute of Science Education and Research, Tirupati. Indian Institute of Science Education and Research, Berhampur.]| 18 ----- Sl. No. 1[THE THIRD SCHEDULE [See sections 3(g), (k), (m), 4(1) and 11A] LIST OF INDIAN INSTITUTES OF ENGINEERING SCIENCE AND TECHNOLOGY University or Society Corresponding Institute (1) (2) (3) Bengal Engineering and Science University, Shibpur. 1. Ins. by Act 9 of 2014, s.12 (w. e. f. 4-3-2014). 19 Indian Institute of Engineering Science and Technology, Shibpur.] -----

19-Sep-2007

37

The Warehousing (Development and Regulation) Act, 2007

https://www.indiacode.nic.in/bitstream/123456789/2020/1/a2007-37.pdf

central

# THE WAREHOUSING (DEVELOPMENT AND REGULATION) ACT, 2007 ____________ # ARRANGEMENT OF SECTIONS ____________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II REGULATION OF WAREHOUSING BUSINESS 3. Requirement of registration for warehouses issuing negotiable warehouse receipts. 4. Registration of warehousemen. 5. Registration of accreditation agencies. CHAPTER III WAREHOUSEMEN 6. Liabilities of warehousemen. 7. Duties of warehousemen. 8. Duties of warehouseman to keep records and accounts of warehouse business. 9. Special powers of warehouseman to deal with perishable and hazardous goods. 10. Lien of warehouseman on goods. CHAPTER IV WAREHOUSE RECEIPTS 11. Warehouse receipts. 12. Negotiability of warehouse receipts. 13. Negotiation of warehouse receipt by delivery. 14. Transfer of negotiable warehouse receipts without endorsement. 15. Warranties on negotiation of warehouse receipts. 16. Non-liability of the endorser. 17. Negotiation of warehouse receipt not impaired by fraud, mistake or duress. 18. Subsequent negotiation of warehouse receipts. 19. Delivery of goods to be made after due charges are paid. 20. Transfer of non-negotiable receipts. 21. Conclusiveness of negotiable warehouse receipt. 22. Presumption in certain cases. 23. Issue of duplicate receipt. 1 ----- CHAPTER V THE WAREHOUSING DEVELOPMENT AND REGULATORY AUTHORITY SECTIONS 24. Establishment and incorporation of Authority. 25. Composition of Authority. 26. Tenure of office of Chairperson and other members. 27. Removal from office. 28. Salary, allowances and other terms and conditions of Chairperson and other members. 29. Bar on future employment of members. 30. Chairperson to be the chief executive of Authority. 31. Meetings of Authority. 32. Vacancies, etc., not to invalidate proceedings of Authority. 33. Officers and employees of Authority. 34. Warehousing Advisory Committee. CHAPTER VI POWERS AND FUNCTIONS OF AUTHORITY 35. Powers and functions of Authority. CHAPTER VII FINANCE, ACCOUNTS AND AUDIT 36. Grants by Central Government. 37. Constitution of fund. 38. Accounts and audit. 39. Furnishing of returns, Annual Report, etc., to Central Government. CHAPTER VIII POWERS OF CENTRAL GOVERNMENT 40. Powers of Central Government to issue directions. 41. Power of Central Government to supersede Authority. CHAPTER IX APPEALS 42. Appeals to Appellate Authority. CHAPTER X OFFENCES AND PENALTIES 43. Offences and penalties. 2 ----- SECTIONS 44. Offences by companies. 45. Cognizance of offences by courts. CHAPTER XI MISCELLANEOUS 46. Chairperson, members, officers and other employees of Authority to be public servants. 47. Protection of action taken in good faith. 48. Delegation of powers. 49. Exemption from tax on wealth and income. 50. Power of Central Government to make rules. 51. Power of Authority to make regulations. 52. Rules and regulations to be laid before Parliament. 53. Act to have overriding effect. 54. Power to remove difficulties. 55. Amendment of Act 2 of 1899. 3 ----- # THE WAREHOUSING (DEVELOPMENT AND REGULATION)ACT, 2007 ACT NO. 37 OF 2007 [19th September, 2007.] An Act to make provisions for the development and regulation of warehouses, negotiability of warehouse receipts, establishment of a Warehousing Development and Regulatory Authority and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-eighth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Warehousing** (Development and Regulation) Act, 2007. (2) It extends to the whole of India except the State of Jammu and Kashmir*. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “accreditation agency” means an agency, whatever be its constitution, registered with the Authority under section 5; (b) “actionable claim” shall have the meaning assigned to it in section 3 of the Transfer of Property Act, 1882 (4 of 1882); (c) “Authority” means the Warehousing Development and Regulatory Authority established under sub-section (1) of section 24; (d) “depositor” means a person who delivers goods to the warehouseman for storage; (e) “endorsee” means the person to whom the warehouse receipt is negotiated; (f) “endorsement” means signing on the warehouse receipt by the depositor or holder of the warehouse receipt for the purpose of its negotiation; (g) “electronic form”, with reference to information, means any information generated, sent, received or stored in media, magnetic, optical, computer memory, microfilm, computer generated micro fiche or similar device; (h) “fungible goods” means any goods of which any unit is, by nature or usage of trade, the equivalent of any other like unit and are received by a warehouseman as fungible goods; (i) “goods” means all tangible movable goods (other than actionable claims, money and securities), whether fungible or not; (j) “grade” means the quality standard of any goods as notified as grade designation by the Central Government under the Agricultural Produce (Grading and Marking) Act, 1937 (1 of 1937) or any other law for the time being in force; (k) “holder” means,— (i) in relation to a negotiable warehouse receipt, a person who is in possession of such receipt and a right to goods endorsed on it; and 1. 25th October, 2010, vide notification No. S.O. 2613(E), dated 21st October, 2010, see Gazette of India, Extraordinary, Part II, sec. 3(ii). *. Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and Kashmir and the Union territory of Ladakh. 4 ----- (ii) in relation to a non-negotiable warehouse receipt, a person named in it as the person to whom the goods are to be delivered or the assignee of that person; (l) “member” means a member of the Authority and includes its Chairperson; (m) “negotiable warehouse receipt” means a warehouse receipt under which the goods represented therein are deliverable to the depositor or order, the endorsement of which has the effect of transfer of goods represented thereby and the endorsee for which takes a good title; (n) “non-negotiable warehouse receipt” means a warehouse receipt other than a negotiable warehouse receipt; (o) “notification” means a notification published in the Official Gazette; (p) “person” includes a firm, co-operative society or any association or body of persons, whether incorporated or not; (q) “prescribed” means prescribed by rules made under this Act; (r) “regulation” means a regulation made under this Act; (s) “warehouse” means any premises (including any protected place) conforming to all the requirements including manpower specified by the Authority by regulations wherein the warehouseman takes custody of the goods deposited by the depositor and includes a place of storage of goods under controlled conditions of temperature and humidity; (t) “warehousing business” means the Business of maintaining warehouses in storage of goods and issuing negotiable warehouse receipts; (u) “warehouse receipt” means an acknowledgement in writing or in electronic form issued by a warehouseman or his duly authorised representative (including depository by whatever name called) of the receipt for storage of goods not owned by the warehouseman; (v) “warehouseman” means any person who is granted a certificate of registration in respect of any warehouse or warehouses by the Authority or an accreditation agency for carrying on the business of warehousing. CHAPTER II REGULATION OF WAREHOUSING BUSINESS **3. Requirement of registration for warehouses issuing negotiable warehouse receipts.—(1) No** person shall commence or carry on the warehousing business unless he has obtained a registration certificate in respect of the concerned warehouse or warehouses granted by the Authority under this Act: Provided that a person carrying on the warehousing business immediately before the commencement of this Act shall be allowed to carry on such business, in case he has made an application for registration within thirty days from the date of such commencement: Provided further that no such registration shall be required for warehouses which do not propose to issue negotiable warehouse receipt. _Explanation.—For the removal of doubts, it is hereby clarified that a warehouse registered under this_ Act shall also be eligible to issue non-negotiable warehouse receipts. (2) Notwithstanding anything contained in sub-section (1), the Authority may, subject to such regulations and guidelines issued by it, authorise any person registered under section 5 as an accreditation agency to issue certificate of accreditation to any person for carrying on the business of warehousing issuing negotiable warehouse receipts. **4. Registration of warehouses.—(1) Any person desirous of commencing or carrying on the** business of maintaining a warehouse issuing negotiable warehouse receipts may make an application to the Authority for registration in respect of one or more warehouses owned or occupied by him. 5 ----- (2) Every application for registration under sub-section (1) shall be in such form and manner and shall be accompanied by such fees as may be prescribed. (3) The Authority may, after such enquiry and subject to such terms and conditions as it thinks fit, grant a certificate of registration of the warehouse in the prescribed form and bearing a registration number to the applicant authorising him to carry on the business of maintaining a warehouse or warehouses and to issue negotiable warehouse receipts. (4) The Authority may not grant a certificate of registration under this section unless it is satisfied that the warehouse in respect of which the application has been made has adequate facilities and safeguards required to warehouse the goods of the nature specified in the application and the applicant satisfies the financial, managerial and other eligibility criteria and competence as may be prescribed: Provided that no certificate of registration shall be refused to any applicant under this section unless the applicant has been given an opportunity of being heard. **5. Registration of accreditation agencies.—(1) The Authority shall, from time to time, determine** the number of accreditation agencies as it may authorise to issue certificate of accreditation to warehouses issuing negotiable warehouse receipts. (2) Any person fulfilling the qualifications and other requirements as may be prescribed and desirous of functioning as an accreditation agency under this Act may make an application to the Authority seeking its registration as such under this Act. (3) Every application under sub-section (2) shall be in such form and manner and shall be accompanied by such fees and security deposit as may be prescribed. (4) The form in which and the terms and conditions subject to which a certificate of registration as an accreditation agency may be issued under this section shall be such as may be prescribed. CHAPTER III WAREHOUSEMEN **6. Liabilities of warehousemen.—(1) A warehouseman is liable for loss of, or injury to, goods** caused by his failure to exercise such care and diligence in regard to the goods as a careful and vigilant owner of the goods of the same bulk, quality and value would exercise in the custody of them in similar conditions. (2) In case the goods are damaged or lost in spite of taking all care and precautions by the warehouseman due to unavoidable circumstances, the compensation equal to the value of goods at the time of deposit of the goods shall be payable by the warehouseman. (3) In case the goods are damaged or lost due to the negligence of the warehouseman, then, the compensation shall be equal to value of goods plus the loss of profit to the holder of the receipt. (4) The warehouseman shall not be responsible for any loss, destruction, damage or deterioration of the goods delivered to him for storage attributable to circumstances such as force majeure, act of war, act of public enemies and the like. **7. Duties of warehousemen.—(1) In the absence of a lawful excuse, a warehouseman shall deliver** the goods referred to in a negotiable receipt, to the holder of the receipt on demand made by the holder and on the holder fulfilling all the following conditions, namely:— (a) satisfying the warehouse lien; (b) surrendering the receipt in case of non-negotiable receipt and surrendering the receipt with endorsements in case of negotiable receipt; and (c) acknowledging in writing the receipt of the goods. (2) If a warehouseman refuses or fails to deliver the goods in compliance with the provisions of this section, the burden of proof shall lie on the warehouseman to establish the existence of a lawful excuse for the refusal or failure. 6 ----- **8. Duties of warehouseman to keep records and accounts of warehouse business.—(1) Every** warehouseman shall keep in a place of safety a complete and accurate set of records and accounts of all transactions pertaining to the operation of a warehouse including records and accounts of all goods received in the warehouse and withdrawn there from, of all un issued receipts in his possession, of all receipts issued, returned to, or cancelled, by him. (2) Subject to the provisions of sub-section (1), the warehouseman shall keep all the records and accounts of the warehouse business in numerical sequence separate and distinct from the records and accounts of any other business in such form and in such manner and for such period as the Authority may, by regulations, specify. (3) The warehouseman shall make available to the Authority for inspection the records and accounts of the warehouse business at any time as may be desired by the Authority. **9. Special powers of warehouseman to deal with perishable and hazardous goods.—(1) If the** goods are of a perishable or hazardous nature, or their keeping shall deteriorate greatly in value or damage other property, the warehouseman may give notice that is reasonable and possible under the circumstances to the holder of the receipt for the goods, if the name and address of the holder is known to the warehouseman or if not known to the warehouseman, then, to the depositor, requiring that person to satisfy the lien on the goods and to remove them from the warehouse. (2) If the person to whom a notice under sub-section (1) is given, fails to satisfy the lien and remove the goods within the time specified in the notice, the warehouseman may sell the goods at public or private sale without advertising. (3) The notice referred to in sub-section (1) may be given by sending it by electronic mail, speed post or registered post or telegraphically addressed to the person to whom it is to be given at the last known address of the person and the notice is deemed to be given on the third day of the mailing. (4) If the warehouseman after a reasonable effort is unable to sell the goods, the warehouseman may dispose of them in such other manner as he deems proper and shall incur no liability for that reason. (5) From the proceeds of any sale or disposal of goods made under this section, the warehouseman shall, after satisfying his lien, hold the balance in trust for the holder of the receipt. (6) No notice shall be necessary if the warehouseman is satisfied on reasonable grounds that in the circumstances of the case giving such notices is likely to cause further prejudice to the goods. (7) If, at any time, the warehouseman is satisfied that the quality of any fungible goods or any part thereof has so deteriorated or is so deteriorating that it is necessary to do so, to protect the holders of negotiable warehouse receipts from loss and time is not sufficient for him to seek their instructions, he may, subject to the regulations in this behalf, dispose off the goods or any part thereof and keep the sale proceeds after satisfying his lien in an escrow account for the benefit of the holders of receipts. (8) In case of disposal of fungible goods under sub-section (7), the warehouseman shall, at the choice of the holder of the receipt, either pay the sale proceeds or deliver equivalent goods of the same grade, quality and quantity to him. (9) Any endorsee shall have the right to intimate the address for service recorded with the warehouseman. **10. Lien of warehouseman on goods.—(1) Every warehouseman has a lien on goods deposited with** him for storage, whether deposited by the owner of the goods or by his authority, or by any person entrusted with the possession of the goods by the owner or by his agent. (2) The lien of the warehouseman is for the amount of the storage and maintenance charges including— (a) all lawful charges for storage and preservation of the goods; (b) all reasonable charges for— (i) any notice required to be given under the provisions of this Act; 7 ----- (ii) notice and advertisement of sale; (iii) sale of goods where default is made in satisfying the lien of the warehouseman; and (iv) compliance of statutory provisions. (3) In case of any endorsement on the face of a negotiable warehouse receipt, by a bank or the warehouseman, such endorsement shall be evidence of a pledge and the pledgee shall have priority over the interest of the holder of the receipt. (4) In case of any pledge referred to in sub-section (3), the warehouseman shall not deliver the goods unless the endorsement of the pledge has been duly got cancelled. (5) In case the goods are not taken back within the declared period of storage, the warehouseman shall have the right to recover his charges, selling the goods by public auction, or in any other manner provided in this section any goods upon which he has a lien. (6) The warehouseman shall give a notice in writing of his intention to sell the goods to the person liable as debtor for the charges for which the lien exists or to the owner or person owning the right of property of the goods. (7) The notice under sub-section (6) shall— (a) contain all the details about the goods, the location of warehouse, date of deposit, the name of depositor and a statement of lien claimed by the warehouseman for the goods stored in the warehouse; and (b) state that unless the charges are paid within the stipulated time mentioned in the notice, the goods shall be advertised for sale and sold by public auction at a time and place as specified in the notice. (8) If the charges are not paid on or before the day mentioned in the notice, then, unless any other mode of sale is specified by the Authority, by regulations, an advertisement of the sale shall be published in a leading newspaper having circulation in the locality where the sale is to be held as well as where the owner of the goods is located and the sale shall be held not less than fourteen days from the date of first publication of the advertisement. (9) The warehouseman shall, from the proceeds of the sale, satisfy his lien and shall pay over the surplus, if any, to the person entitled thereto. (10) If the surplus is not demanded by the person entitled thereto within ten days after the sale of goods or if there are different claims, the warehouseman shall seek instructions from the Authority and act as per the orders of the Authority. CHAPTER IV WAREHOUSE RECEIPTS **11. Warehouse receipts.—(1) A warehouse receipt, which may be either in writing or in electronic** form, shall be a document of title to goods in writing if it contains all the following particulars, namely:— (a) receipt number; (b) warehouse registration number and date up to which it is valid; (c) name of the warehouse and its complete postal address; (d) name and address of the person by whom or on whose behalf the goods are deposited; (e) date of issue of the warehouse receipt; (f) statement that the goods received shall be delivered to the holder thereof, or that the goods shall be delivered to the order of a named person; (g) rates of storage charges and handling charges; 8 ----- (h) description of the goods or of the packages containing them with particulars of quantity and quality or grade; (i) market value of the goods at the time of deposit; (j) private marks of depositor on the goods or packages, if any, except in the case of fungible goods; (k) name of the insurance company indemnifying for fire, flood, theft, burglary, misappropriation, riots, strikes or terrorism; (l) whether the warehouse receipt is negotiable or non-negotiable; (m) statement of the amount of any advance made and of any liability incurred for which the warehouseman claims his lien; (n) date and signature of the warehouseman or his authorised agent; (o) declared shelf-life of goods; (p) the fact that the warehouseman holds the lien on the goods deposited for his storage and handling charges; and (q) that the receipt would be valid only till the date of expiry of declared shelf- life of the goods for which it is issued. (2) In case a warehouseman wilfully omits from a negotiable warehouse receipt any of the particulars set out in sub-section (1), he shall be liable for damages caused by such omission. (3) No warehouse receipt shall, by reason of the omission only of any of the particulars set-forth in sub-section (1), be deemed to be invalid for the purpose of settlement of disputes or claims. (4) Authority may, with the prior approval of the Central Government, add, delete or modify any particulars as specified in sub-clause (1) for all or any commodity or class of commodities or for any class of warehouses. **12.Negotiability of warehouse receipts.—(1) The words in a negotiable warehouse receipt limiting** its negotiability shall be void. (2) A warehouseman who issues a non-negotiable warehouse receipt shall cause to be plainly marked upon its face the words “non-negotiable” or “not negotiable” in English or in the language in which it is issued. (3) In case of non-compliance of sub-section (2), a holder of the warehouse receipt who purchases it for valuable consideration believing it to be a negotiable warehouse receipt may, at his option, treat the receipt as vesting in him all rights attaching to a negotiable warehouse receipt and imposing upon the warehouseman the same liabilities which he would have incurred had the receipt been a negotiable warehouse receipt and the warehouseman shall be liable accordingly. (4) A negotiable warehouse receipt shall be valid for delivery till the date of expiry of the declared shelf-life of the goods for which it is issued. **13. Negotiation of warehouse receipt by delivery.—A negotiable warehouse receipt may be** negotiated by its delivery if, by the terms of the receipt, the warehouseman undertakes to deliver the goods to the order of a named person, and that person or a subsequent endorsee has endorsed it. **14. Transfer of negotiable warehouse receipts without endorsement.—Where a negotiable receipt** is transferred for valuable consideration by delivery, and the endorsement of the transferor is essential for negotiation, the transferee acquires a right against the transferor to compel him to endorse the receipt, unless a contrary intention appears, and the negotiation takes effect as of the time when endorsement is made. **15. Warranties on negotiation of warehouse receipt.—A person who, for valuable consideration,** negotiates a negotiable warehouse receipt by endorsement and delivery, including one who assigns for 9 ----- valuable consideration, a claim secured by a receipt, unless a contrary intention appears, warrants the following:— (a) that the receipt is genuine; (b) that the person has a legal right to negotiate or transfer it; (c) that the person has no knowledge of any fact that would impair the validity of the receipt; (d) that the person has a right to transfer the title to the goods; and (e) that the goods are merchantable or fit for a particular purpose when those warranties would have been implied, if the contract of the parties had been to transfer without a receipt the goods represented by it. **16. Non-liability of the endorser.—The endorsement of a receipt does not make the endorser liable** for any failure on the part of the warehouseman or previous endorsers of the receipt to fulfil their respective obligations. **17. Negotiation of warehouse receipt not impaired by fraud, mistake or duress.—The validity of** the negotiation of a receipt is not impaired by the fact that— (a) the negotiation was a breach of duty on the part of the person making the negotiation; or (b) the owner of the receipt was induced by fraud, mistake or duress to entrust the possession or custody of the receipt to that person, if the person to whom the receipt was negotiated or a person to whom the receipt was subsequently negotiated, paid value for it without knowing of the breach of duty, fraud, mistake or duress. **18. Subsequent negotiation of warehouse receipts.—If a person having sold, mortgaged or pledged** goods that are in the custody of a warehouseman and for which a negotiable receipt has been issued, continues in possession of the negotiable receipt, the subsequent negotiation of it by that person under any sale or other disposition of the goods to any person receiving the receipt in good faith, for valuable consideration and without notice of the previous sale, mortgage or pledge, has the same effect as if a previous purchaser, mortgagee or pledgee of the goods, as the case may be, had expressly authorised the subsequent negotiation. **19. Delivery of goods to be made after due charges are paid.—When a negotiable warehouse** receipt has been issued in respect of any goods, the warehouseman shall not deliver the goods to the depositor or endorsee, until the due charges are paid to the custodian from the date of initial deposit till delivery is made and the warehouse receipt is surrendered for cancellation. **20. Transfer of non-negotiable receipts.—(1) A non-negotiable warehouse receipt may be** transferred by the holder by delivery to a purchaser or donee of the goods in writing executed by the holder. (2) A person to whom the goods covered by a non-negotiable warehouse receipt is transferred acquires— (a) the title of the transferor to the goods; and (b) the right to deposit with the warehouseman the receipt or duplicate thereof or to give notice in writing to the warehouseman of the transfer. (3) The transferee shall acquire the benefit of the obligation of the warehouseman to hold goods in storage for him according to the terms of the receipt upon deposit of the transfer of the goods and on giving notice in writing of the transfer and upon the warehouseman having a reasonable opportunity of verifying the transfer. **21. Conclusiveness of negotiable warehouse receipt.—In the hands of a holder who has purchased** a negotiable warehouse receipt for valuable consideration, it shall be conclusive evidence of the goods described in it as against the warehouseman or any person claiming through him. 10 ----- **22. Presumption in certain cases.—In a dispute between an endorser of a negotiable warehouse** receipt and his endorsee unless it is proved otherwise, it shall be presumed that— (a) the endorsement has been made voluntarily; (b) the endorsement has been made for full consideration; (c) the endorser had full legal title in the goods represented by the receipt; and (d) the endorsement has extinguished all the rights, title and interest of the endorser in the goods. **23. Issue of duplicate receipt.—(1) No warehouseman shall issue a warehouse receipt without** actually receiving the goods of the quantity, quality or grade and other particulars as may be mentioned in the receipt. (2) No warehouseman shall issue more than one receipt for the same goods deposited by any person: Provided that in case of a loss or destruction, a duplicate receipt may be issued in such manner as may be specified by the Authority by regulations. (3) If a warehouseman fails to comply with the provisions of sub-section (2), he would be liable for all such damages caused by the failure to any person who has transacted on such receipt for valuable consideration, believing it to be an original, even though the transaction is after the delivery of the goods by the warehouseman to the holder of the original receipt. (4) A receipt on the face of which the word “duplicate” is plainly marked is a representation and warranty by the warehouseman that it is an accurate copy of a receipt properly issued and uncancelled on the date of issue of the duplicate warehouse receipt. CHAPTER V THE WAREHOUSING DEVELOPMENT AND REGULATORY AUTHORITY **24. Establishment and incorporation of Authority.—(1) With effect from such date as the Central** Government may, by notification, specify in this behalf, there shall be constituted an authority to be called the Warehousing Development and Regulatory Authority to exercise the powers conferred on, and to perform the functions assigned to it by or under this Act. (2) The Authority shall be a body corporate by the name aforesaid having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to contract and shall, by the said name, sue or be sued. (3) The head office of the Authority shall be at New Delhi and the Authority may, with the previous approval of the Central Government, establish offices at other places in India. **25. Composition of Authority.—The Authority shall consist of—** (a) a Chairperson; and (b) not more than two other members, to be appointed by the Central Government from amongst persons of ability, integrity and standing who have wide knowledge and experience in inventory management, insurance, preservation, quality control, agriculture banking, finance, economics, law or administration. **26. Tenure of office of Chairperson and other members.—(1) The Chairperson and every other** member shall hold office for a term not exceeding five years from the date on which he enters upon his office and shall be eligible for reappointment: Provided that no person shall hold office as the Chairperson or other member after he has attained the age of sixty-five years. (2) Notwithstanding anything contained in sub-section (1), a member may— (a) relinquish his office by giving in writing to the Central Government notice of not less than three months; or 11 ----- (b) be removed from his office in accordance with the provisions of section 27. **27. Removal from office.—(1) The Central Government may remove from office any member** who— (a) is, or at any time has been, adjudged as an insolvent; or (b) has become physically or mentally incapable of acting as a member; or (c) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or (d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a member; or (e) has so abused his position as to render his continuation in office detrimental to the public interest. (2) No such member shall be removed under clause (d) or clause (e) of sub-section (1) unless he has been given a reasonable opportunity of being heard in the matter. **28. Salary, allowances and other terms and conditions of Chairperson and other members.—** Subject to the rules as may be made in this behalf, the salaries and allowances payable to, and other terms and conditions of service of— (a) the Chairperson shall be the same as that of a Secretary to the Government of India; (b) the other members of the Authority shall be the same as that of Joint Secretaries to the Government of India. **29. Bar on future employment of members.—The Chairperson and the other members shall not, for** a period of two years from the date on which they cease to hold office as such, except with the previous approval of the Central Government, accept any employment in any concern in the warehousing sector. **30.Chairperson to be the chief executive of Authority.—The Chairperson shall be the chief** executive of the Authority. **31. Meetings of Authority.—(1) The Authority shall meet at such times and places and shall observe** such rules of procedure in regard to transaction of business at its meetings (including the quorum at such meetings) as may be determined by regulations. (2) The Chairperson, or if, for any reason he is unable to attend a meeting of the Authority, any other member chosen by the members present from amongst themselves at the meeting shall preside at the meeting. (3) All questions which come up before any meeting of the Authority shall be decided by a majority of votes by the members present and voting, and in the event of an equality of votes, the Chairperson, or the person presiding shall have a second or casting vote. **32. Vacancies, etc., not to invalidate proceedings of Authority.—No act or proceeding of the** Authority shall be invalid merely by reason of— (a) any vacancy in, or any defect in the constitution of, the Authority; or (b) any defect in the appointment of a person acting as a member of the Authority; or (c) any irregularity in the procedure of the Authority not affecting the merits of the case. **33. Officers and employees of Authority.—(1) The Authority may appoint officers and such other** employees as it considers necessary for the efficient discharge of its function under this Act. (2) The terms and conditions of service of officers and other employees of the Authority appointed under sub-section (1) shall be governed by regulations made under this Act. **34. Warehousing Advisory Committee.—(1) The Authority may, by notification, constitute a** Committee to be known as the Warehousing Advisory Committee to advise the Authority on matters 12 ----- relating to the making of regulations under section 51 and make recommendations for effective implementation of the provisions of this Act. (2) The Warehousing Advisory Committee shall consist of not more than fifteen members excluding the members of the Authority to represent the interests of commerce, industry, engineering, agriculture, consumers, organisations engaged in warehousing, quality control, preservation and research bodies. (3) Without prejudice to the provisions of sub-section (1), the Warehousing Advisory Committee may advise the Authority on such other matters as may be referred to it by the Authority. CHAPTER VI POWERS AND FUNCTIONS OF AUTHORITY **35. Powers and functions of Authority.—(1) Subject to the provisions of this Act and any other law** for the time being in force, the Authority shall have the duty to regulate and ensure implementation of the provisions of this Act and promote orderly growth of the warehousing business. (2) Without prejudice to the generality of the foregoing provisions, the powers and functions of the Authority shall include the following, namely:— (a) to issue to the applicants fulfilling the requirements for warehousemen a certificate of registration in respect of warehouses, or renew, modify, withdraw, suspend or cancel such registration; (b) to regulate the registration and functioning of accreditation agency, renew, modify, withdraw, suspend or cancel such registration, and specify the code of conduct for officials of accreditation agencies for accreditation of the warehouses; (c) to specify the qualifications, code of conduct and practical training for warehousemen and staff engaged in warehousing business; (d) to regulate the process of pledge, creation of charges and enforcement thereof in respect of goods deposited with the warehouse; (e) to promote efficiency in conduct of warehouse business; (f) to make regulations laying down the standards for approval of certifying agencies for grading of goods; (g) to promote professional organisations connected with the warehousing business; (h) to determine the rate of, and levy, the fees and other charges for carrying out the provisions of this Act; (i) to call for information from, undertaking inspection of, conducting enquiries and investigationincluding audit of the warehouses, accreditation agencies and other organisations connected with thewarehousing business; (j) to regulate the rates, advantages, terms and conditions that may be offered by warehousemen in respect of warehousing business; (k) to specify, by regulations, the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by warehousemen; (l) to maintain a panel of arbitrators and to nominate arbitrators from such panel in disputes between warehouses and warehouse receipt holders; (m) to regulate and develop electronic system of holding and transfer of credit balances of fungible goods deposited in the warehouses; (n) to determine the minimum percentage of space to be kept reserved for storage of agricultural commodities in a registered warehouse; (o) to specify the duties and responsibilities of the warehouseman; (p) to exercise such other powers and perform such other functions as may be prescribed. 13 ----- CHAPTER VII FINANCE, ACCOUNTS AND AUDIT **36. Grants by Central Government.—The Central Government may, after due appropriation made** by Parliament by law in this behalf, make to the Authority grants of such sums of money as the Government may think fit for being utilised for the purposes of this Act. **37. Constitution of fund.—(1) There shall be constituted a fund to be called the Warehousing** Development and Regulatory Authority Fund and there shall be credited thereto— (a) all Central Government grants, fees and charges received by the Authority; (b) all sums received by the Authority from such other source as may be decided upon by the Central Government; (c) all sums realised by way of penalties under this Act. (2) The fund shall be applied for meeting— (a) the salaries, allowances and other remuneration of the members, officers and other employees of the Authority; (b) the other expenses of the Authority in connection with the discharge of its functions and for the purposes of this Act. **38. Accounts and audit.—(1) The Authority shall maintain proper accounts and other relevant** records and prepare an annual statement of accounts in such form and manner as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India. (2) The accounts of the Authority shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Authority to the Comptroller and Auditor-General. (3) The Comptroller and Auditor-General of India and any other person appointed by him in connection with the audit of the accounts of the Authority shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General generally has in connection with the audit of the Government accounts and, in particular, shall have the right to demand the production of books of account, connected vouchers and other documents and papers and to inspect any of the offices of the Authority. (4) The accounts of the Authority as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament. **39. Furnishing of returns, Annual Report, etc., to Central Government.—(1) The Authority shall** furnish to the Central Government at such time and in such form and manner as may be prescribed, or as the Central Government may direct to furnish such returns, statements and other particulars in regard to any proposed or existing programme for the promotion and development of the warehousing industry as the Central Government may, from time to time, require. (2) Without prejudice to the provisions of sub-section (1), the Authority shall, within nine months after the close of each financial year, submit to the Central Government an Annual Report giving a true and full account of its activities including the activities for promotion and development of the warehousing business during the previous financial year. (3) Copies of the reports received under sub-section (2) shall be laid, as soon as may be after they are received, before each House of Parliament. 14 ----- CHAPTER VIII POWERS OF CENTRAL GOVERNMENT **40. Powers of Central Government to issue directions.—(1) Without prejudice to the foregoing** provisions of this Act, the Authority shall, in exercise of its powers and performance of its functions under this Act, be bound by such directions on questions of policy, other than those relating to technical and administrative matters, as the Central Government may give in writing to it from time to time: Provided that the Authority shall, as far as practicable, be given an opportunity to express its views before any direction is given under this sub-section. (2) The decision of the Central Government, whether a question is one of policy or not, shall be final. **41.Power of Central Government to supersede Authority.—(1) If, at any time, the Central** Government is of the opinion— (a) that, on account of circumstances beyond the control of the Authority, it is unable to discharge the functions or perform the duties imposed on it by or under the provisions of this Act; or (b) that the Authority has persistently defaulted in complying with any direction given by the Central Government under this Act or in the discharge of the functions or performance of the duties imposed on it by or under the provisions of this Act and as a result of such default the financial position of the Authority or the administration of the Authority has suffered; or (c) that circumstances exist which render it necessary in the public interest so to do, the Central Government may, by notification and for reasons to be specified therein, supersede the Authority for such period not exceeding six months, as may be specified in the notification and nominate a person to look after the functions of the Authority: Provided that before issuing any such notification, the Central Government shall give a reasonable opportunity to the Authority to make representations against the proposed supersession and shall consider the representation, if any, of the Authority. (2) Upon the publication of a notification under sub-section (1) superseding the authority,— (a) the Chairperson and other members shall, as from the date of supersession, be deemed to have vacated their offices; (b) all the powers, functions and duties which may, by or under the provisions of this Act, be exercised or discharged by or on behalf of the Authority shall, until the Authority is reconstituted under sub-section (3), be exercised and discharged by the person nominated by the Central Government under clause (c) of sub-section (1); (c) all properties owned or controlled by the Authority shall, until the Authority is reconstituted under sub-section (3), vest in the Central Government. (3) On or before the expiration of the period of supersession specified in the notification issued under sub-section (1), the Central Government shall reconstitute the Authority by a fresh appointment of its Chairperson and other members and in such case any person who had vacated his office under clause (a) of sub-section (2) shall not be deemed to be disqualified for reappointment. (4) The Central Government shall cause a copy of the notification issued under sub-section (1) and a full report of any action to be laid before each House of Parliament at the earliest. (5) Notwithstanding anything contained in any law or in any contract or memorandum or articles of association, on the removal of a person, from office under this section, that person shall not be entitled to claim any compensation for the loss or termination of office. CHAPTER IX APPEALS **42. Appeals to Appellate Authority.—(1) Any person aggrieved by an order of the Authority made** under this Act, or any rules or the regulations made thereunder may prefer an appeal to such person or 15 ----- authority appointed by the Central Government (hereafter referred to as the Appellate Authority) within sixty days from the date of such order: Provided that an appeal may be admitted after the expiry of the said period of sixty days but not beyond a total period of ninety days if the appellant satisfies the Appellate Authority that he had sufficient cause for not preferring the appeal within the said period. (2) Every appeal made under this section shall be made in such form and manner and shall be accompanied by a copy of the order appealed against and by such fees as may be prescribed. (3) The procedure for disposing of an appeal shall be such as may be prescribed: Provided that before disposing of an appeal, the appellant shall be given a reasonable opportunity of being heard. (4) An appeal filed before the Appellate Authority shall be heard and disposed of as expeditiously as possible and endeavour shall be made to finally dispose of the appeal within a period of ninety days from the date of its filing. CHAPTER X OFFENCES AND PENALTIES **43. Offences and penalties.—(1) Any warehouseman knowingly issuing a negotiable warehouse** receipt without taking the actual physical delivery of the goods in his warehouse or a warehouseman or an agent or servant of the warehouseman who issues a warehouse receipt without reasonably satisfying himself that the goods for which such warehouse receipt is issued have actually been received or the number, weight or grade of the goods corresponds to the number, weight or grade specified in the warehouse receipt or the goods are under his actual control at the time of issuing such warehouse receipt, commits an offence and shall be punishable with imprisonment for a term which may extend to three years or with fine which may extend to four times the value of the goods or with both. (2) A warehouseman or an agent or servant of the warehouseman, who knowingly issues a duplicate negotiable warehouse receipt without substantially following the procedure for the issue of a duplicate warehouse receipt, commits an offence and shall be punishable for such offence with imprisonment for a term which may extend to three years, or with fine which may extend to one lakh rupees, or with both. (3) A warehouseman or an agent or servant of the warehouseman, who, knowingly that the negotiable warehouse receipt in respect of such goods is outstanding and is uncancelled, delivers the goods without obtaining possession of such negotiable warehouse receipt at or before the time of such delivery and thereby causes unlawful loss or gain to any person, commits an offence and shall be punishable for such an offence by imprisonment for a term which may extend to three years or with fine which may extend to one lakh rupees, or with both. (4) A warehouseman who fails, on surrender of a negotiable warehouse receipt by the depositor or endorsee and payment of all his lawful charges and cancellation of encumbrances endorsed on the receipt, within the declared shelf-life of the goods, as mentioned therein to deliver the goods represented by the receipt commits an offence and shall be punishable for such offence with imprisonment for a term which may extend to three years or with fine which may extend to three times the value of the goods or with both. (5) Any depositor, who declared as the value of the goods delivered by him for storage with a warehouseman an amount which he does not believe to be the proper value, commits an offence and shall be punishable for such an offence with fine which may extend to one lakh rupees. **44. Offences by companies.—(1) Where an offence under this Chapter is committed by a company,** every person, who at the time the offence was committed, was in charge of the company or was responsible for making the deposit, as the case may be, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: 16 ----- Provided that nothing contained in this sub-section shall render any such person liable to punishment if he proves that the contravention took place without his knowledge or that he exercised all due diligence to prevent such contravention. (2) Notwithstanding anything contained in sub-section (1), where any offence under this Chapter has been committed by a company and it is proved that such an offence has been committed with the consent or connivance of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of the offence and shall be liable to be proceeded against and punishedaccordingly. _Explanation.—For the purposes of this section,—_ (a) “company” means any body corporate and includes a firm or other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm. **45. Cognizance of offences by courts.—(1) No court shall take cognizance of any offence** punishable under this Act, save on a complaint made by the Authority or by any officer authorised in writing in this behalf by the authority. (2) No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence punishable under this Act. CHAPTER XI MISCELLANEOUS **46. Chairperson, members, officers and other employees of Authority to be public servants.—** The Chairperson, members, officers and other employees of Authority and Appellate Authority shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this Act, to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **47. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall** lie against the Central Government or any officer of the Central Government or any member, officer or other employee of the Authority for anything which is in good faith done or intended to be done under this Act or the rules or regulations made there under: Provided that nothing in this Act shall exempt any person any suit or other proceedings which might, apart from this Act, be brought against him. **48. Delegation of powers.—The Authority may, by general or special order in writing, delegate to** the Chairperson or any other member or officer of the Authority subject to such conditions, if any, as may be specified in the order, such of its powers and functions (excluding the power to make regulations under section 51) under this Act as it may deem necessary. **49. Exemption from tax on wealth and income.—Notwithstanding anything contained in the** Wealth-tax Act, 1957 (27 of 1957), the Income-tax Act, 1961 (43 of 1961) or any other enactment for the time being in force relating to tax on wealth, income, profits or gains, the Authority shall not be liable to pay wealth-tax, income-tax or any other tax in respect of their wealth, income, profits or gains derived. **50. Power of Central Government to make rules.—(1) The Central Government may, by** notification, make rules for carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the form and manner in which an application for obtaining a certificate of registration for commencing or carrying on the business of warehousing issuing negotiable warehouse receipts may be made and the fees which shall accompany such application under sub-section (2) of section 4; (b) the form in which a certificate for registration of warehouses may be issued under sub-section (3) of section 4; 17 ----- (c) the financial, managerial and other eligibility criteria and competence which an applicant for registration of warehouses shall satisfy under sub-section (4) of section 4; (d) the qualification and other requirements which a person applying for functioning as an accreditation agency shall fulfill under sub-section (2) of section 5; (e) the form and manner in which an application for registration as an accreditation agency may be made and the fees which shall accompany such application under sub-section (3) of section 5; (f) the form of certificate of registration of accreditation agency under sub-section (4) of section 5; (g) the salary and allowances payable to, and the other terms and conditions of service of the Chairperson and other members under section 28; (h) such other powers that may be exercised by the Authority under clause (p) of sub-section (2) of section 35; (i) the form and manner of maintenance of annual statement of accounts to be maintained by the Authority under sub-section (1) of section 38; (j) the form and manner in which and the time within which returns and statements and particulars are to be furnished by the Authority to the Central Government under sub-section (1) of section 39; (k) the form and the manner in which an appeal may be made to the Appellate Authority and the fee which shall accompany such appeal under sub-section (2) of section 42; (l) the procedure to be followed by the Appellate Authority in disposing of an appeal under subsection (3) of section 42; (m) any other matter which is required to be, or may be, prescribed, or in respect of which provision is to be or may be made by rules. **51. Power of Authority to make regulations.—(1) The Authority may, with the previous approval** of the Central Government, and in consultation with the Warehousing Advisory Committee, by notification, make regulations consistent with this Act and the rules made thereunder to carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:— (a) the matters regulating the authorities of accreditation agencies under sub-section (2) of section 3; (b) the form and manner and the period for which a warehouseman shall keep the records and accounts of the warehousing business under sub-section (2) of section 8; (c) the manner of disposal of goods or any part thereof and the keeping of sale proceeds in an escrow account by the warehouseman under sub-section (7) ofsection 9; (d) the mode of sale under sub-section (10) of section 10; (e) the manner of issuance of duplicate warehouse receipt under the proviso to sub-section (2) of section 23; (f) the time and places of meetings of the Authority and the procedure to be followed at such meetings including the quorum necessary for the transaction of business under sub-section (1) of section 31; (g) the terms and conditions of service of officers and other employees of the Authority under sub-section (2) of section 33; 18 ----- (h) the registration and functioning of accreditation agencies, renewal, modification, withdrawal, suspension or cancellation of such registration and the code of conduct for officials of accreditation agencies for accreditation of the warehouses under clause (b) of sub-section (2) of section 35; (i) the standards for approval of certifying agencies for grading of goods under clause (f) of subsection (2) of section 35; (j) the rate of fees and other charges to be levied for carrying out the provisions of this Act under clause (h) of sub-section (2) of section 35; (k) any other matter which is required to be, or may be, specified by regulations or in respect of which provision is to be or may be made by regulations. **52. Rules and regulations to be laid before Parliament.—Every rule made by the Central** Government and every regulation made by the Authority under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. **53. Act to have overriding effect.—The provisions of this Act shall have effect notwithstanding** anything inconsistent therewith contained in any other law for time being in force or in any instrument having effect by virtue of any law other than this Act. **54. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order, published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as appear to it to be necessary for removing the difficulty: Provided that no such order shall be made under this section after the expiry of three years from the date of commencement of this Act. (2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament. **55. Amendment of Act 2 of 1899.—After section 8B of the Stamp Act, 1899, the following section** shall be inserted, namely:— **“8C.Negotiable warehouse receipts not liable to stamp duty.—Notwithstanding anything** contained in this Act, negotiable warehouse receipts shall not be liable to stamp duty.” 19 -----

29-Sep-2007

41

The Carriage by Road Act, 2007

https://www.indiacode.nic.in/bitstream/123456789/2043/1/A2007-41.pdf

central

# THE CARRIAGE BY ROAD ACT, 2007 __________ ARRANGEMENT OF SECTIONS _________ SECTIONS 1. Short title, extent and commencement. 2. Definitions. 3. Persons not to engage in business of common carrier without registration. 4. Application for grant or renewal of registration. 5. Suspension or cancellation of registration. 6. Appeal. 7. Submission of annual return. 8. Goods forwarding note. 9. Goods receipt. 10. Liability of common carrier. 11. Rates of charge to be fixed by common carrier for carriage of consignment at a higher risk rate. 12. Conditions limiting exonerating the liability of the common carrier. 13. Provision for carriage of goods of dangerous or hazardous nature to human life. 14. Power of Central Government to prohibit carriage of certain class of goods. 15. Right of common carrier in case of consignee’s default. 16. Notice for institution of a suit. 17. General responsibility of common carrier. 18. Punishment for contravention in relation to non-registration, carrying goods of dangerous or hazardous nature, or prohibited goods. 19. Composition of offences. 20. Power to make rules. 21. Power to remove difficulties. 22. Repeal and saving. 1 ----- # THE CARRIAGE BY ROAD ACT, 2007 ACT NO. 41 OF 2007 [29th September, 2007.] # An Act to provide for the regulation of common carriers, limiting their liability and declaration of value of goods delivered to them to determine their liability for loss of, or damage to, such goods occasioned by the negligence or criminal acts of themselves, their servants or agents and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-eighth Year of the Republic of India as follows:— **1. Short title, extent and commencement.—(1) This Act may be called the Carriage by Road Act,** 2007. (2) It extends to the whole of India, except the State of Jammu and Kashmir*. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “common carrier” means a person engaged in the business of collecting, storing, forwarding or distributing goods to be carried by goods carriages under a goods receipt or transporting for hire of goods from place to place by motorised transport on road, for all persons undiscriminatingly and includes a goods booking company, contractor, agent, broker and courier agency engaged in the doorto-door transportation of documents, goods or articles utilising the services of a person, either directly or indirectly, to carry or accompany such documents, goods or articles, but does not include the Government; (b) “consignee” means the person named as consignee in the goods forwarding note; (c) “consignment” means documents, goods or articles entrusted by the consignor to the common carrier for carriage, the description or details of which are given in the goods forwarding note; (d) “consignor” means a person, named as consignor in the goods forwarding note, by whom or on whose behalf the documents, goods or articles covered by such forwarding note are entrusted to the common carrier for carriage thereof; (e) “goods” includes— (i) containers, pallets or similar articles of transport used to consolidate goods; and (ii) animals or livestock; (f) “goods forwarding note” means the document executed under section 8; (g) “goods receipt” means the receipt issued under section 9; (h) “person” includes any association or body of persons, whether incorporated or not, a road transport booking company, contractor and an agent or a broker carrying on the business of a common carrier; (i) “prescribed” means prescribed by rules made under this Act; (j) “registering authority” means a State Transport Authority or a Regional Transport Authority constituted under section 68 of the Motor Vehicles Act, 1988 (59 of 1988); (k) “registration” means the registration granted or renewed under sub-section (5) of section 4. 1. 1st March 2011, vide notification No. S.O. 2001(E), 13th August, 2010, see Gazette of India, Extraordinary, Part II, sec. 3(ii) *. Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and Kashmir and the Union territory of Ladakh. 2 ----- **3. Persons not to engage in business of common carrier without registration.—(1) No person** shall engage in the business of a common carrier, after the commencement of this Act, unless he has been granted a certificate of registration. (2) Any person who is engaged, whether wholly or partly, in the business of a common carrier, immediately before the commencement of this Act, shall,— (a) apply for a registration within ninety days from the date of such commencement; (b) cease to engage in such business on the expiry of one hundred and eighty days from the date of such commencement unless he has applied for registration and the certificate of registration has been granted by the registering authority. **4. Application for grant or renewal of registration.—(1) Any person, who is engaged or intends to** engage in the business of a common carrier, shall apply for the grant or renewal of a certificate of registration for carrying on the business of common carrier to the registering authority. (2) An application under sub-section (1) shall be made, to the registering authority having jurisdiction in the area in which the applicant resides or has his principal place of business stating that the application is for the main office, in such form and manner and accompanied by such fees payable to the registering authority as may be prescribed. (3) An application for grant or renewal of certificate of registration for the main office shall contain the details of branch office, if any, to be operated outside the jurisdiction of the State or Union territory in which the main office is to be registered in such form and manner as may be prescribed: Provided that an application for the purpose to open or close a branch office shall be made to the registering authority having jurisdiction over the main office. (4) A registering authority shall, before granting or renewing a certificate of registration, satisfy itself that the applicant fulfills such conditions as may be prescribed. (5) The registering authority may, on receipt of an application under sub-section (2) or sub-section (3) and after satisfying itself that the applicant fulfills the requirements of sub-section (4), grant the certificate of registration or renew it, as the case may be, for carrying on the business of a common carrier, in such form and subject to such conditions as may be prescribed: Provided that no application for the grant or renewal of a certificate of registration shall be refused by the registering authority unless the applicant has been given an opportunity of being heard and the reasons for such refusal are given in writing by the registering authority within sixty days from the date of receipt of such application: Provided further that if such refusal has not been communicated within sixty days of the date of application, the registering authority shall grant or renew certificate of registration within a further period of thirty days. (6) A certificate of registration granted or renewed under sub-section (5) shall contain the details of branch offices to be operated in various States and Union territories, and shall be valid for a period of ten years from the date of such grant or renewal, as the case may be: Provided that in the case of registration in respect of branch offices referred to in sub-section (3), the validity of such registration shall be restricted to the validity of the registration granted in respect of the main office. (7) The holder of a certificate of registration shall— (a) maintain a register in such form and manner as may be prescribed; (b) for shifting the main office mentioned in the certificate of registration submit an application to the registering authority which granted the certificate of registration: Provided that such registering authority shall grant or refuse permission for shifting the main office within thirty days from the date of receipt of such application and that no application for 3 ----- shifting the main office shall be refused unless the applicant has been given an opportunity of being heard and reasons for such refusal are given in writing by the registering authority: Provided further that in case the registering authority has not either granted or refused the permission within thirty days it shall be deemed that the permission for shifting has been granted; (c) submit to the registering authority under whose jurisdiction the main office is located and the Transport Research Wing of the Ministry or Department of the Central Government dealing with road transport and highways such information and return as may be prescribed within one hundred and twenty days after the thirty-first day of March every year; (d) display at a prominent place in its or its main office and each branch office, if any, a certificate of registration in original or certified copy thereof attested by the concerned registering authority, a notary or a Gazetted Officer of the Central or State Government. (8) A common carrier shall not load the motor vehicle beyond the gross vehicle weight mentioned in the registration certificate whose registration number is mentioned in the goods forwarding note or goods receipt, and the common carrier shall not allow such vehicle to be loaded beyond the gross vehicle weight. **5. Suspension or cancellation of registration.—(1) If the registering authority is satisfied that the** holder of certificate of registration has failed to comply with any of the provisions of sub-section (7) of section 4, it may give a notice by registered post or through electronic media or by any verifiable means to the holder of certificate of registration to rectify within a period of thirty days and in case such a holder fails to do so, it may revoke the certificate of registration on completion of enquiry. (2) If a complaint is received by the registering authority against a common carrier from a consignor in respect of,— (i) non-issuance of receipt of goods; (ii) non-disclosure of the whereabouts of the goods in transit when asked by the consignor or consignee; or (iii) detention of goods for delivery without valid reasons; or (iv) demand for unreasonable additional charges at the time of delivery, which were neither disclosed nor agreed upon between the consignor and the consignee earlier; or (v) non-payment of charges agreed and payable to truck-owners, it may give a notice by registered post or through electronic media or by any other verifiable means to the holder of certificate of registration to rectify the same within a period of thirty days and in case such holder fails to do so, it may revoke certificate of registration for a period as may be prescribed under the rules on completion of that enquiry. (3) If the registering authority or any other authority so authorised under the Motor Vehicles Act, 1988 (59 of 1988) has received proof of violation of provision of sub-section (8) ofsection 4, it shall be competent to impose the penalty prescribed under section 194 of the Motor Vehicles Act, 1988 on the common carrier, notwithstanding the fact that such penalty have been already imposed on and realised from the driver or the owner of the goods vehicle or the consignor, as the case may be. (4) Any action for revocation of certificate of registration shall not be taken under sub-sections (1) and (2) unless the holder of the certificate of registration is given an opportunity of being heard in the enquiry and reasons for such action are given in writing by the registering authority. (5) The registering authority in whose jurisdiction the main office of the common carrier is located shall be competent to take action under sub-sections (1) and (2) and any other registering authority who has noticed the violations or has received complaints under the said sub-sections, shall report such matter to the registering authority having jurisdiction over the main office. (6) When the certificate of registration is revoked, the holder of the certificate of registration shall surrender the certificate of registration to the registering authority within a period of thirty days and it would be incumbent on the holder of the certificate of registration to complete the delivery and 4 ----- transactions in respect of the consignments already accepted by the common carrier from any consignor prior to the revocation of the certificate of registration. (7) The holder of a certificate of registration may, at any time, surrender the certificate to the registering authority which granted the registration and on such surrender the registering authority shall, after obtaining declaration from the holder of the certificate of registration that no liability is outstanding against him and that he shall discharge such liability, if held liable, revoke the certificate of registration: Provided that if the surrender is in respect of a branch office, the endorsement in respect of the branch office shall be deleted from the certificate of registration and such deletion shall be notified by the registering authority having jurisdiction over the main office to such other authorities as may be prescribed. **6. Appeal.—(1) Any person aggrieved by an order of the registering authority refusing to grant or** renew a certificate of registration or suspending or revoking a registration under this Act, may, within sixty days from the date of such order, appeal to the State Transport Appellate Tribunal constituted under sub-section (2) of section 89 of the Motor Vehicles Act, 1988 (59 of 1988). (2) An appeal under sub-section (1) shall be preferred in duplicate in the form of a memorandum setting forth the grounds of objection to the order of the registering authority and shall be accompanied by such fee as may be prescribed. (3) Without prejudice to the provisions of sub-sections (1) and (2), the provisions of sub-sections (1) and (2) of section 89 of the Motor Vehicles Act, 1988 (59 of 1988), as in force immediately before the commencement of this Act, with regard to appeal, shall, as far as may, apply to every appeal as if the provisions aforesaid were enacted by this Act subject to the modification that any reference therein to the “permit” shall be construed as a reference to the “registration”. **7. Submission of annual return.—The State Transport Authority in respect of each State or Union** territory shall submit annually to the Ministry or Department of the Central Government dealing with road transport and highways a consolidated annual return giving the details of the goods carried by the common carriers in that State or the Union territory, as the case may be, on the basis of the returns received from the holders of the registration as specified under clause (c) of sub-section (7) of section 4. **8. Goods forwarding note.—(1) Every consignor shall execute a goods forwarding note, in such** form and manner as may be prescribed, which shall include a declaration about the value of the consignment and goods of dangerous or hazardous nature. (2) The consignor shall be responsible for the correctness of the particulars furnished by him in the goods forwarding note. (3) The consignor shall indemnify the common carrier against any damage suffered by him by reason of incorrectness or incompleteness of the particulars on the goods forwarding note. **9. Goods receipt.—(1) A common carrier shall,—** (a) in case where the goods are to be loaded by the consignor, on the completion of such loading; or (b) in any other case, on the acceptance of the goods by him, issue a goods receipt in such form and manner as may be prescribed. (2) The goods receipt shall be issued in triplicate and the original shall be given to the consignor. (3) The goods receipt shall be prima facie evidence of the weight or measure and other particulars of the goods and the number of packages stated therein. (4) The goods receipt shall include an undertaking by the common carrier about the liability under section 10 or section 11. **10. Liability of common carrier.—(1) The liability of the common carrier for loss of, or damage to** any consignment, shall be limited to such amount as may be prescribed having regard to the value, freight and nature of goods, documents or articles of the consignment, unless the consignor or any person duly 5 ----- authorised in that behalf have expressly undertaken to pay higher risk rate fixed by the common carrier under section 11. (2) The liability of the common carrier in case of any delay up to such period as may be mutually agreed upon by and between the consignor and the common carrier and specifically provided in the goods forwarding note including the consequential loss or damage to such consignment shall be limited to the amount of freight charges where such loss, damage or delay took place while the consignment was under the charge of such carrier: Provided that beyond the period so agreed upon in the goods forwarding note, compensation shall be payable in accordance with sub-section (1) or section 11: Provided further that the common carrier shall not be liable if such carrier proves that such loss of, or damage to, the consignment or delay in delivery thereof, had not taken place due to his fault or neglect or that of his servants or agents thereof. **11. Rates of charge to be fixed by common carrier for carriage of consignment at a higher risk** **rate.—Every common carrier may require payment for the higher risk undertaken by him in carrying a** particular consignment at such rate of charge as he may fix and correspondingly, his liability would be in accordance with the terms as may be agreed upon with the consignor: Provided that to entitle such carrier to claim payment at a rate higher than his ordinary rate of charge, he should have exhibited a printed or written notice, in English and the vernacular language of the State, of the higher rate of charge in the place or premises where he carries on the business of common carrier. **12. Conditions limiting exonerating the liability of the common carrier.—(1) Every common** carrier shall be liable to the consignor for the loss or damage to any consignment in accordance with the goods forwarding note, where such loss or damage has arisen on account of any criminal act of the common carrier, or any of his servants or agents. (2) In any suit brought against the common carrier for the loss, damage or non-delivery of consignment, it shall not be necessary for the plaintiff to prove that such loss, damage or non-delivery was owing to the negligence or criminal act of the common carrier, or any of his servants or agents. (3) Where any consignment has been detained for examination or scrutiny by a competent authority and upon such examination or scrutiny it is found that certain prohibited goods or goods on which due tax was not paid or insufficiently paid have been entrusted to the common carrier by the consignor which have not been described in the goods forwarding note, the cost of such examination or scrutiny shall be borne by the consignor and the common carrier shall not be liable for any loss, damage or deterioration caused by such detention of the consignment for examination or scrutiny: Provided that the onus of proving that such incorrect description of goods in the goods forwarding note was received from the consignor shall be on the common carrier. _Explanation.—For the purposes of this section, “competent authority” means any person or authority_ who is empowered to examine or scrutinise goods by or under any law for the time being in force to secure compliance of provisions of that law. **13. Provision for carriage of goods of dangerous or hazardous nature to human life.—(1) No** goods of dangerous or hazardous nature to human life shall be carried by a common carrier except in accordance with such procedure and after complying with such safeguards as may be prescribed. (2) The Central Government may, by rules made in this behalf, specify the goods of dangerous or hazardous nature to human life and the label or class of labels to be carried in, or displayed on, the motor vehicle or such goods in the course of transportation. (3) Notwithstanding anything contained in any other law for the time being in force, every common carrier shall scrutinise and ensure before starting transportation of any consignment containing goods of dangerous or hazardous nature to human life that the consignment is covered by, one or more insurance policies under a contract of insurance in respect of such goods providing relief in case of death or injury to a person or damage to any property or the consignment, if an accident takes place. 6 ----- **14. Power of Central Government to prohibit carriage of certain class of goods.—The Central** Government may, by notification in the Official Gazette, specify, in public interest, the goods or class or classes of goods which shall not be carried by a common carrier. **15. Right of common carrier in case of consignee’s default.—(1) If the consignee fails to take** delivery of any consignment of goods within a period of thirty days from the date of notice given by the common carrier, such consignment may be deemed as unclaimed: Provided that in case of perishable consignment, the period of thirty days shall not apply and the consignment shall be deemed unclaimed after a period of twenty-four hours of service of notice or any lesser period as may be mutually agreed to by and between the common carrier and the consignor. (2) In the case of an unclaimed consignment under sub-section (1), the common carrier may,— (a) if such consignment is perishable in nature, have the right to sell the consignment; or (b) if such consignment is not perishable in nature, cause a notice to be served upon the consignee or upon the consignor if the consignee is not available, requiring him to remove the goods within a period of fifteen days from the date of receipt of the notice and in case of failure to comply with the notice, the common carrier shall have the right to sell such consignment without any further notice to the consignee or the consignor, as the case may be. (3) The common carrier shall, out of the sale proceeds received under sub-section (2), retain a sum equal to the freight, storage and other charges due including expenses incurred for the sale, and the surplus, if any, from such sale proceeds shall be returned to the consignee or the consignor, as the case may be. (4) Unless otherwise agreed upon between the common carrier and consignor, the common carrier shall be entitled to detain or dispose off the consignment in part or full to recover his dues in the event of the consignee failing to make payment of the freight and other charges payable to the common carrier at the time of taking delivery. **16. Notice for institution of a suit.—No suit or other legal proceeding shall be instituted against a** common carrier for any loss of, or damage to, the consignment, unless notice in writing of the loss or damage to the consignment has been served on the common carrier before the institution of the suit or other legal proceeding and within one hundred and eighty days from the date of booking of the consignment by the consignor. **17. General responsibility of common carrier.—Save as otherwise provided in this Act, a common** carrier shall be responsible for the loss, destruction, damage or deterioration in transit or non-delivery of any consignment entrusted to him for carriage, arising from any cause except the following, namely:— (a) act of God; (b) act of war or public enemy; (c) riots and civil commotion; (d) arrest, restraint or seizure under legal process; (e) order or restriction or prohibition imposed by the Central Government or a State Government or by an officer or authority subordinate to the Central Government or a State Government authorised by it in this behalf: Provided that the common carrier shall not be relieved of its responsibility for the loss, destruction, damage, deterioration or non-delivery of the consignment if the common carrier could have avoided such loss, destruction, damage or deterioration or non-delivery had the common carrier exercised due deligence and care in the carriage of the consignment. **18. Punishment for contravention in relation to non-registration, carrying goods of dangerous** **or hazardous nature, or prohibited goods.—(1) Whoever contravenes the provisions of section 3,** section 13 or a notification issued under section 14 shall be punishable for the first offence with fine 7 ----- which may extend to five thousand rupees, and for the second or subsequent offence with fine which may extend to ten thousand rupees. (2) If the person committing an offence under this Act is a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (3) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall be proceeded against and punished accordingly. _Explanation.—For the purpose of this section,—_ (a) “company” means any body corporate and includes a firm or other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm. **19. Composition of offences.—(1) Any offence committed under section 18, may either before or** after the institution of the prosecution, be compounded by such officers or authorities and for such amount as the State Government may, by notification in the Official Gazette, specify. (2) Where an offence has been compounded under sub-section (1), the offender shall be discharged and no further proceedings shall be taken against him in respect of such offence. **20. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules for carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the form and manner of making an application for grant or renewal of a certificate of registration for main office or branch office and the fee thereof under sub-sections (2) and (3) of section 4; (b) the other conditions of eligibility which are required to be fulfilled by an applicant under clause (d) of sub-section (4) of section 4; (c) the form in which and the conditions subject to which certificate of registration or renewal may be granted under sub-section (5) of section 4; (d) the form and manner of maintaining a register under clause (a) of sub-section (7) of section 4; (e) the information and return which may be furnished to the registering authority and the transport research wing under clause (c) of sub-section (7) of section 4; (f) fee for submitting the memorandum of appeal under sub-section (2) of section 6; (g) the form and manner in which a goods forwarding note shall be executed by the consignor under sub-section (1) of section 8; (h) the form and manner in which a common carrier shall issue goods receipt under sub-section (1) of section 9; (i) liability of the common carrier for loss of, or damage to any consignment undersub-section (1) of section 10; 8 ----- (j) the procedure and safeguards to be complied with for carrying goods of dangerous or hazardous nature under sub-section (1) of section 13; (k) the specification of the goods of dangerous or hazardous nature to human life and the label or class of labels to be carried or displayed in or on the motor vehicle or on such goods in the course of their transportation under sub-section (2) of section 13; and (l) any other matter which is required to be, or may be, prescribed. (3) Every rule made under this section and every notification issued under section 14 shall be laid, as soon as may be after it is made or issued, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or the notification, or both Houses agree that the rule or the notification should not be made or issued, the rule or the notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification. **21. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by general or special order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made under this section after the expiry of two years from the date of commencement of this Act. (2) Every order made under sub-section (1) shall be laid, as soon as may be, after it is made, before each House of Parliament. **22. Repeal and saving.—(1) The Carriers Act, 1865(3 of 1865) is hereby repealed.** (2) Notwithstanding the repeal of the Carriers Act, 1865 (3 of 1865) anything done or any action taken under the said Act shall, in so far as such thing or action is not inconsistent with the provisions of this Act, be deemed to have been done or taken under the provisions of this Act and shall continue in force accordingly until superseded by anything done or any action taken under this Act. (3) The mention of particular matters in this section shall not be held to prejudice or affect the general application of section 6 of the General Clauses Act, 1897 (10 of 1897) with regard to the effect of repeals. ______ 9 -----

5-Dec-2007

43

The National Capital Territory of Delhi Laws (Special Provisions) At, 2007

https://www.indiacode.nic.in/bitstream/123456789/2061/1/A2007-43.pdf

central

# THE NATIONAL CAPITAL TERRITORY OF DELHI LAWS (SPECIAL PROVISIONS) ACT, 2007 _________ ARRANGEMENT OF SECTIONS ________ SECTIONS 1. Short title, extent, commencement and duration. 2. Definitions. 3. Enforcement to be kept in abeyance. 4. Provisions of this Act not to apply in certain cases. 5. Power of Central Government to give directions. 6. Repeal and savings. 1 ----- # THE NATIONAL CAPITAL TERRITORY OF DELHI LAWS (SPECIAL PROVISIONS) ACT, 2007 ACT NO. 43 OF 2007 [5th December, 2007.] # An Act to make special provisions for the National Capital Territory of Delhi for a further period up to 31st December, 2008 and for matters connected therewith or incidental thereto. WHEREAS there had been phenomenal increase in the population of the National Capital Territory of Delhi owing to migration and other factors resulting in tremendous pressure on land and infrastructure leading to encroachment or unauthorised developments which are not in consonance with the concept of planned development as provided in the Master Plan of Delhi, 2001 and the relevant Acts and building bye-laws made thereunder; AND WHEREAS the Master Plan of Delhi, 2001 has been extensively modified and notified by the Central Government on 7th February, 2007 with the perspective for the year 2021 keeping in view the emerging new dimensions in urban development vis-a-vis the social, financial and other ground realities; AND WHEREAS the Master Plan of Delhi with the perspective for the year 2021 specifically provides for strategies for housing for urban poor as well as to deal with the informal sector; AND WHEREAS a revised policy for relocation and rehabilitation of slum dwellers in the National Capital Territory of Delhi is also under consideration of the Central Government; AND WHEREAS a strategy and a scheme has been prepared by the local authorities in the National Capital Territory of Delhi for regulation of urban street vendors in accordance with the National Policy for Urban Street Vendors and the Master Plan for Delhi, 2021; AND WHEREAS some time is required for making orderly arrangements in accordance with the revised policy for relocation and rehabilitation of slum dwellers of Delhi as well as for putting in place the scheme for regulation of urban street vendors in terms of the Master Plan of Delhi, 2021 and also the national policy in this regard; AND WHEREAS the Central Government has considered and finalised a policy regarding regularisation of unauthorised colonies, village abadi area and its extension, as existed on the 31st day of March, 2002 for which the guidelines are being framed; AND WHEREAS the Central Government require time to take a considered view on the policy regarding existing farm houses involving construction beyond permissible building limits and regarding schools, dispensaries, religious institutions and cultural institutions, storages, warehouses and godowns used for agricultural inputs or produce (including dairy and poultry) in rural areas built on agricultural land, _inter alia, in the light of recommendations of the Expert Committees constituted by the Central_ Government in the year 2006; AND WHEREAS the National Capital Territory of Delhi Laws (Special Provisions) Ordinance, 2007 (Ord. 6 of 2007) for making special provisions for the areas of the National Capital Territory of Delhi for a further period of one year promulgated on 4th July, 2007 will cease to operate from the 21st day of September, 2007; AND WHEREAS the National Capital Territory of Delhi Laws (Special Provisions) Bill, 2007 introduced in Parliament to replace the National Capital Territory of Delhi Laws (Special Provisions) Ordinance, 2007 (Ord. 6 of 2007) could not be taken up for consideration and passing since Parliament adjourned sine die; AND WHEREAS it is expedient to have a law in terms of the Master Plan of Delhi, 2021, in continuation of the said Act for a period up to 31st December, 2008 to provide temporary relief and to minimise avoidable hardships and irreparable loss to the people of the National Capital Territory of Delhi against any action by the concerned agency in respect of persons covered by the policies referred to above which are expected to be finalised within the period so extended; 2 ----- BE it enacted by Parliament in the Fifty-eighth Year of the Republic of India as follows:— **1. Short title, extent, commencement and duration.—(1) This Act may be called the National** Capital Territory of Delhi Laws (Special Provisions) Act, 2007. (2) It extends to the National Capital Territory of Delhi. (3) It shall be deemed to have come into force on the 19th day of May, 2007. (4) It shall cease to have effect on the 31st day of December, 2008 except as respects things done or omitted to be done before such cesser, and upon such cesser section 6 of the General Clauses Act, 1897 (10 of 1897) shall apply as if this Act had then been repealed by a Central Act. **2. Definitions.—(1) In this Act, unless the context otherwise requires,—** (a) “building bye-laws” means bye-laws made under section 481 of the Delhi Municipal Corporation Act, 1957 (61 of 1957) or the bye-laws made under section 188, sub-section (3) of section 189 and sub-section (1) of section 190 of the Punjab Municipal Act, 1911 (Punjab Act 3 of 1911) as in force in New Delhi or the regulations made under sub-section (1) of section 57 of the Delhi Development Act, 1957 (61 of 1957) relating to buildings; (b) “Delhi” means the entire area of the National Capital Territory of Delhi except the Delhi Cantonment as defined in clause (11) of section 2 of the Delhi Municipal Corporation Act, 1957 (66 of 1957); (c) “encroachment” means unauthorised occupation of Government land or public land by way of putting temporary, semi-permanent or permanent structure for residential use or commercial use or any other use; (d) “local authority” means the Delhi Municipal Corporation established under the Delhi Municipal Corporation Act, 1957 (66 of 1957) or the New Delhi Municipal Council established under the New Delhi Municipal Council Act, 1994 (44 of 1994) or the Delhi Development Authority established under the Delhi Development Act, 1957 (61 of 1957) legally entitled to exercise control in respect of the areas under their respective jurisdiction; (e) “Master Plan” means the Master Plan for Delhi with the perspective for the year 2021 notified, vide the notification number S.O.141(E), dated 7th February, 2007 under the Delhi Development Act, 1957 (61 of 1957); (f) “notification” means a notification published in the Official Gazette; (g) “punitive action” means action taken by a local authority under the relevant law against unauthorised development and shall include demolition, sealing of premises and displacement of persons or their business establishment from their existing location, whether in pursuance of court orders or otherwise; (h) “relevant law” means in case of— (i) the Delhi Development Authority, the Delhi Development Act, 1957 (61 of 1957); (ii) the Municipal Corporation of Delhi, the Delhi Municipal Corporation Act, 1957 (66 of 1957); and (iii) the New Delhi Municipal Council, the New Delhi Municipal Council Act, 1994 (44 of 1994); (i) “unauthorised development” means use of land or use of building or construction of building or development of colonies, village abadi area and its extension, carried out in contravention of the sanctioned plans or without obtaining the sanction of plans, or in contravention of the land use as permitted under the Master Plan or Zonal Plan or layout plan, as the case may be, and includes any encroachment. 3 ----- (2) The words and expressions used but not defined herein shall have the meanings respectively assigned to them in the Delhi Development Act, 1957 (61 of 1957) the Delhi Municipal Corporation Act, 1957 (66 of 1957) and the New Delhi Municipal Council Act, 1994 (44 of 1994). **3. Enforcement to be kept in abeyance.—(1) Notwithstanding anything contained in any relevant** law or any rules, regulations or bye-laws made thereunder, the Central Government shall before the expiry of this Act, take all possible measures to finalise norms, policy guidelines and feasible strategies to deal with the problem of encroachment or unauthorised development in the form of encroachment by slum dwellers and _Jhuggi-Jhompri clusters, hawkers and urban street vendors, unauthorised colonies,_ village _abadi area and its extension, existing farm houses involving construction beyond permissible_ building limits and schools, dispensaries, religious institutions, cultural institutions, storages, warehouses and godowns used for agricultural inputs or produce (including dairy and poultry) in rural areas built on agricultural land, as mentioned below:— (a) policy for relocation and rehabilitation of slum dwellers and _Jhuggi-Jhompri clusters in_ accordance with provisions of the Master Plan of Delhi, 2021 to ensure development of Delhi in a sustainable, planned and humane manner; (b) strategy for regulation of urban street vendors in consonance with the national policy for urban street vendors and hawkers as provided in the Master Plan of Delhi, 2021; (c) scheme containing guidelines for regularisation of unauthorised colonies, village abadi area and its extension, as existed on the 31st day of March, 2002, and where construction took place even beyond that date and up to the 8th day of February, 2007; (d) policy regarding existing farm houses involving construction beyond permissible building limits; and (e) policy regarding schools, dispensaries, religious institutions, cultural institutions, storages, warehouses and godowns used for agricultural inputs or produce (including dairy and poultry) in rural areas built on agricultural land. (2) Subject to the provisions contained in sub-section (1) and notwithstanding any judgment, decree or order of any court, status quo— (i) as on the 1st day of January, 2006 in respect of encroachment or unauthorised development; and (ii) in respect of unauthorised colonies, village abadi area and its extension, which existed on the 31st day of March, 2002 and where construction took place even beyond that date and up to the 8th day of February, 2007, mentioned in sub-section (1), shall be maintained. (3) All notices issued by any local authority for initiating action against encroachment or unauthorised development referred to in sub-section (1), shall be deemed to have been suspended and no punitive action shall be taken till the 31st day of December, 2008. (4) Notwithstanding any other provision contained in this Act, the Central Government may, at any time before the 31st day of December, 2008, withdraw the exemption by notification in respect of encroachment or unauthorised development mentioned in sub-section (2) or sub-section (3), as the case may be. **4. Provisions of this Act not to apply in certain cases.—During the period of operation of this Act,** no relief shall be available under the provisions of section 3 in respect of the following encroachment or unauthorised development, namely:— (a) encroachment on public land except in those cases which are covered under clauses (a), (b) and (c) of sub-section (1) of section 3; (b) removal of slums and _Jhuggi-Jhompri dwellers, hawkers and urban street vendors,_ unauthorised colonies or part thereof, village _abadi_ area and its extension, in accordance with the 4 ----- relevant policies approved by the Central Government for clearance of land required for specific public projects. **5. Power of Central Government to give directions.—The Central Government may, from time to** time, issue such directions to the local authorities as it may deem fit, for giving effect to the provisions of this Act and it shall be the duty of the local authorities to comply with such directions. **6. Repeal and savings.—(1) The National Capital Territory of Delhi Laws (Special Provisions)** Second Ordinance, 2007 (Ord.7 of 2007) is hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken under the National Capital Territory of Delhi Laws (Special Provisions) Second Ordinance, 2007 (Ord. 7 of 2007) shall be deemed to have been done or taken under the corresponding provisions of this Act. 5 -----

12-Dec-2007

50

The Tyre Corporation of India Limited (Disinvestment of Ownership) Act, 2007

https://www.indiacode.nic.in/bitstream/123456789/2072/1/A2007-50.pdf

central

# THE TYRE CORPORATION OF INDIA LIMITED (DISINVESTMENT OF OWNERSHIP) ACT, 2007 __________ ARRANGEMENT OF SECTIONS _________ SECTIONS 1. Short title. 2. Disinvestment in the company. 3. Payment of consideration for disinvestment in the company. 4. Manner of disinvestment. 5. Provision in respect of officers and other employees of the company. 6. Act to have overriding effect. 1 ----- # THE TYRE CORPORATION OF INDIA LIMITED (DISINVESTMENT OF OWNERSHIP) ACT, 2007 ACT NO. 50 OF 2007 [12th December, 2007.] # An Act to provide for disinvestment of Government's equity in the Tyre Corporation of India Limited and for matters connected therewith or incidental thereto. WHEREAS the Inchek Tyres Limited and the National Rubber Manufacturers Limited, engaged in the manufacture, production and distribution of articles mentioned in the First Schedule to the Industries (Development and Regulation) Act, 1951, namely, tyres, tubes and other rubber goods, were nationalised under the Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalisation) Act, 1984 and transferred to, and vested in, the Tyre Corporation of India Limited, Calcutta from the 5th day of March, 1984; AND WHEREAS for the purpose of securing optimum utilisation of the available facilities for the manufacture, production and distribution of tyres, tubes and other rubber goods, investment of large amount is necessary; AND WHEREAS it is expedient to disinvest the Government's equity in the Tyre Corporation of India Limited, Kolkata to enable the private sector to have investment made to ensure that the interest of general public are served by the continuance of the manufacture, production and distribution of the aforesaid articles which are essential to the needs of the economy of the country. BE it enacted by Parliament in the Fifty-eighth Year of the Republic of India as follows:— **1. Short title.—This Act may be called the Tyre Corporation of India Limited (Disinvestment of** Ownership) Act, 2007. **2. Disinvestment in the company.—Where the Central Government, on the recommendations of the** Board for Reconstruction of Public Sector Enterprises, is of the opinion that disinvestment is to be made in the Tyre Corporation of India Limited (hereinafter referred to as the company), it may pass an order providing for transfer, exchange or relinquishment of shares in the company to any person on such terms and conditions as may be agreed upon. **3. Payment of consideration for disinvestment in the company.—(1) For the transfer to, and** vesting in, any person, the shares of the company, there shall be given to the Central Government by such person or in case such person is a company, by such company, such consideration, having regard to the optimum valuation of land, assets and liabilities of the company in accordance with a valuation method as specified by the Central Government. (2) The manner of payment of consideration for transfer of shares of the company to the transferee shall be such as may be agreed upon between the transferor, the company and the transferee, the person or the company, as the case may be. **4. Manner of disinvestment.—The Central Government may, in its order made under section 2,** specify that disinvestment of shares shall be effected by one or more of the following methods as may be specified in such order, namely:— (a) by making a public offer or preferential allotment or private placement in accordance with such procedure as applicable in case of any other Government company; (b) by directing the company to make further issue of equity capital to the members of the public or preferential allotment or private placement, as the case may be, in accordance with such procedure as applicable in case of the Government company. **5. Provision in respect of officers and other employees of the company.—(1) Every officer or** other employee of the company, except the Chairman and Directors, serving in its employment immediately before the disinvestment of the company under this Act, shall continue in office or service after such disinvestment, on same terms and conditions as would have been admissible to him if there had 2 ----- been no such disinvestment and shall continue to do so until the expiry of the period of three years from the date of disinvestments. (2) Where an officer or other employee of the company opts under sub-section (1) not to be in the employment or service of the company, such officer or other employee shall be deemed to have resigned. **6. Act to have overriding effect.—The provisions of this Act shall have effect notwithstanding** anything inconsistent therewith contained in the Inchek Tyres Limited and National Rubber Manufactures, Limited (Nationalisation) Act, 1984 (17 of 1984) or any other law for the time being in force. _____ 3 -----

20-Dec-2007

51

The Payment and Settlement Systems Act, 2007

https://www.indiacode.nic.in/bitstream/123456789/2082/4/a2007-51.pdf

central

# THE PAYMENT AND SETTLEMENT SYSTEMS ACT, 2007 ____________ # ARRANGEMENT OF SECTIONS ____________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II DESIGNATED AUTHORITY 3. Designated authority. CHAPTER III AUTHORISATION OF PAYMENT SYSTEMS 4. Payment system not to operate without authorisation. 5. Application for authorisation. 6. Inquiry by the Reserve Bank. 7. Issue or refusal of authorisation. 8. Revocation of authorisation. 9. Appeal to the Central Government. CHAPTER IV REGULATION AND SUPERVISION BY THE RESERVE BANK 10. Power to determine standards. 10A. Bank, etc., not to impose charge for using electronic modes of payment. 11. Notice of change in the payment system. 12. Power to call for returns, documents or other information. 13. Access to information. 14. Power to enter and inspect. 15. Information, etc., to be confidential. 16. Power to carry out audit and inspection. 17. Power to issue directions. 18. Power of Reserve Bank to give directions generally. 19. Directions of Reserve Bank to be complied with. CHAPTER V RIGHTS AND DUTIES OF A SYSTEM PROVIDER 20. System provider to act in accordance with the Act, regulations, etc. 21. Duties of a system provider. 22. Duty to keep documents in the payment system confidential. 23. Settlement and netting. 23A. Protection of funds collected from customers. 1 ----- CHAPTER VI SETTLEMENT OF DISPUTES SECTIONS 24. Settlement of disputes. 25. Dishonour of electronic funds transfer for insufficiency, etc., of funds in the account. CHAPTER VII OFFENCES AND PENALTIES 26. Penalties. 27. Offences by companies. 28. Cognizance of offences. 29. Application of fine. 30. Power of Reserve Bank to impose penalties. 31. Power to compound offences. CHAPTER VIII MISCELLANEOUS 32. Act to have overriding effect. 33. Mode of recovery of penalty. 34. Act not to apply to stock exchanges or clearing corporations of stock exchanges. 34A. Act to apply to designated trade repository and issuer. 34B. Powers of Reserve Bank not to apply to International Financial Services Centre. 35. Certain persons deemed to be public servants. 36. Protection of action taken in good faith. 37. Power to remove difficulties. 38. Power of Reserve Bank to make regulations. 2 ----- # THE PAYMENT AND SETTLEMENT SYSTEMS ACT, 2007 ACT NO. 51 OF 2007 [20th December, 2007.] # An Act to provide for the regulation and supervision of payment systems in India and to designate the Reserve Bank of India as the authority for that purpose and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-eighth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Payment and Settlement** Systems Act, 2007. (2) It extends to the whole of India. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act, and any reference to the commencement in any such provision of this Act shall be construed as a reference to the commencement of that provision. **2. Definitions.—(1) In this Act, unless the context otherwise requires,—** (a) “bank” means,— (i) a bank included in the Second Schedule to the Reserve Bank of India Act, 1934(2 of 1934); (ii) a post office savings bank; (iii) a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949); (iv) a co-operative bank as defined in clause (cci) of section 5, as inserted by section 56 of the Banking Regulation Act, 1949 (10 of 1949); and (v) such other bank as the Reserve Bank may, by notification, specify for the purposes of this Act; (b) “derivative” means an instrument, to be settled at a future date, whose value is derived from change in interest rate, foreign exchange rate, credit rating or credit index, price of securities (also called “underlying”), or any other underlying or a combination of more than one of them and includes interest rate swaps, forward rate agreements, foreign currency swaps, foreign currency rupee swaps, foreign currency options, foreign currency rupee options or any other instrument, as may be specified by the Reserve Bank from time to time; (c) “electronic funds transfer” means any transfer of funds which is initiated by a person by way of instruction, authorisation or order to a bank to debit or credit an account maintained with that bank through electronic means and includes point of sale transfers, automated teller machine transactions, direct deposits or withdrawal of funds, transfers initiated by telephone, internet and card payment; (d) “gross settlement system” means a payment system in which each settlement of funds or securities occurs on the basis of separate or individual instructions; 2[(da) “issuer” means a person who issues a legal entity identifier or such other unique identification (by whatever name called), as may be specified by the Reserve Bank from time to time; 1. 12th August, 2008, vide notification No. S.O. 2032(E), dated 12th August, 2008, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 2. Ins. by Act 18 of 2015, s. 2 (w.e.f. 1-6-2015). 3 ----- (db) “legal entity identifier” means a unique identity code assigned to a person by an issuer for the purpose of identifying that person in such derivatives or financial transactions, as may be specified by the Reserve Bank from time to time;] (e) “netting” means the determination by the system provider of the amount of money or securities, due or payable or deliverable, as a result of setting off or adjusting, the payment obligations or delivery obligations among the system participants, including the claims and obligations arising out of the termination by the system provider, on the insolvency or dissolution or winding up of any system participant or such other circumstances as the system provider may specify in its rules or regulations or bye-laws (by whatever name called), of the transactions admitted for settlement at a future date so that only a net claim be demanded or a net obligation be owned; (f) “notification” means a notification published in the Official Gazette; (g) “payment instruction” means any instrument, authorisation or order in any form, including electronic means, to effect a payment,— (i) by a person to a system participant; or (ii) by a system participant to another system participant; (h) “payment obligation” means an indebtedness that is owned by one system participant to another system participant as a result of clearing or settlement of one or more payment instructions relating to funds, securities or foreign exchange or derivatives or other transactions; (i) “payment system” means a system that enables payment to be effected between a payer and a beneficiary, involving clearing, payment or settlement service or all of them, but does not include a stock exchange. _Explanation.—For the purposes of this clause, “payment system” includes the systems enabling_ credit card operations, debit card operations, smart card operations, money transfer operations or similar operations; (j) “prescribed” means prescribed by regulations made under this Act; (k) “regulation” means a regulation made under this Act; (l) “Reserve Bank” means the Reserve Bank of India, constituted under the Reserve Bank of India Act, 1934 (2 of 1934); (m) “securities” means the Government securities as defined in the Public Debt Act, 1944 (18 of 1944) or such other securities as may be notified by the Central Government from time to time under that Act; (n) “settlement” means settlement of payment instructions and includes the settlement of securities, foreign exchange or derivatives or other transactions which involve payment obligations; (o) “systemic risk” means the risk arising from— (i) the inability of a system participant to meet his payment obligations under the payment system as and when they become due; or (ii) any disruption in the system, which may cause other participants to fail to meet their obligations when due and is likely to have an impact on the stability of the system: Provided that if any doubt or difference arises as to whether a particular risk is likely to have an impact on the stability of the system, the decision of the Reserve Bank shall be final; (p) “system participant” means a bank or any other person participating in a payment system and includes the system provider; (q) “system provider” means a person who operates an authorised payment system; 4 ----- 1[(r)“trade repository” means a person who is engaged in the business of collecting, collating, storing, maintaining, processing or disseminating electronic records or data relating to such derivatives or financial transactions, as may be specified by the Reserve Bank from time to time.] (2) Words and expressions used, but not defined in this Act and defined in the Reserve Bank of India Act, 1934 (2 of 1934) or the Banking Regulation Act, 1949 (10 of 1949), shall have the meanings respectively assigned to them in those Acts. 2[CHAPTER II DESIGNATED AUTHORITY **3. Designated authority.—(1) The Reserve Bank shall be the designated authority for the regulation** and supervision of payment systems under this Act. (2) The Reserve Bank shall exercise the powers, perform the functions and discharge the duties conferred on it under this Act through a Board to be known as the “Payments Regulatory Board”. (3) The Board shall consist of the following members, namely:— (a) the Governor of the Reserve Bank–Chairperson, ex officio; (b) the Deputy Governor of the Reserve Bank in-charge of the Payment and Settlement Systems Member, ex officio; (c) one officer of the Reserve Bank to be nominated by the Central Board of the Reserve Bank Member, ex officio; and (d) three persons to be nominated by the Central Government-Members. (4) The powers and functions of the Board referred to in sub-section (2), the time and venue of its meetings, the procedures to be followed in such meetings (including the quorum at such meetings) and other matters incidental thereto shall be such as may be prescribed.] 1. Ins. by Act 18 of 2015, s. 2 (w.e.f. 1-6-2015). 2. Subs. by Finance Act 2017, s. 152, for the following : “CHAPTER II DESIGNATED AUTHORITY AND ITS COMMITTEE **3. Designated authority and its Committee.—(1) The Reserve Bank shall be the designated authority for the regulation** and supervision of payment systems under this Act. (2) The Reserve Bank may, for the purposes of exercising the powers and performing the functions and discharging the duties conferred on it by or under this Act, by regulation, constitute a committee of its Central Board to be known as the Board for Regulation and Supervision of Payment and Settlement Systems. (3) The Board constituted under sub-section (2) shall consist of the following members, namely:— (a) Governor, Reserve Bank, who shall be the Chairperson of the Board; (b) Deputy Governors, Reserve Bank, out of whom the Deputy Governor who is in-charge of the Payment and Settlement Systems, shall be the Vice-Chairperson of the Board; (c) Not exceeding three Directors from the Central Board of the Reserve Bank of India to be nominated by the Governor, Reserve Bank. (4) The powers and functions of the Board constituted under sub-section (2), the time and venue of its meetings, the procedure to be followed in such meetings, (including the quorum at such meetings) and other matters incidental thereto shall be such as may be prescribed. (5) The Board for Regulation and Supervision of Payment and Settlement Systems constituted under clause (i) of sub section (2) of section 58 of the Reserve Bank of India Act, 1934 (2 of 1934) shall be deemed to be the Board constituted under this section and continue accordingly until the Board is reconstituted in accordance with the provisions of this Act and shall be governed by the rules and regulations made under the Reserve Bank of India Act, 1934 in so far as they are not inconsistent with the provisions of this Act.” 5 ----- CHAPTER III AUTHORISATION OF PAYMENT SYSTEMS **4. Payment system not to operate without authorisation.—(1) No person, other than the Reserve** Bank, shall commence or operate a payment system except under and in accordance with an authorisation issued by the Reserve Bank under the provisions of this Act: Provided that nothing contained in this section shall apply to— (a) the continued operation of an existing payment system on commencement of this Act for a period not exceeding six months from such commencement, unless within such period, the operator of such payment system obtains an authorisation under this Act or the application for authorisation made under section 7 of this Act is refused by the Reserve Bank; (b) any person acting as the duly appointed agent of another person to whom the payment is due; (c) a company accepting payments either from its holding company or any of its subsidiary companies or from any other company which is also a subsidiary of the same holding company; (d) any other person whom the Reserve Bank may, after considering the interests of monetary policy or efficient operation of payment systems, the size of any payment system or for any other reason, by notification, exempt from the provisions of this section. (2) The Reserve Bank may, under sub-section (1) of this section, authorise a company or corporation to operate or regulate the existing clearing houses or new clearing houses of banks in order to have a common retail clearing house system for the banks throughout the country: Provided, however, that not less than fifty-one per cent. of the equity of such company or corporation shall be held by public sector banks. _Explanation.—For the purposes of this clause, “public sector banks” shall include a “corresponding_ new bank”, “State Bank of India” and “subsidiary bank” as defined in section 5 of the Banking Regulation Act, 1949 (10 of 1949). **5. Application for authorisation.—(1) Any person desirous of commencing or carrying on a** payment system may apply to the Reserve Bank for an authorisation under this Act. (2) An application under sub-section (1) shall be made in such form and in such manner and shall be accompanied by such fees as may be prescribed. **6. Inquiry by the Reserve Bank.—After the receipt of an application under section 5, and before an** authorisation is issued under this Act, the Reserve Bank may make such inquiries as it may consider necessary for the purpose of satisfying itself about the genuineness of the particulars furnished by the applicant, his capacity to operate the payment system, the credentials of the participants or for any other reason and when such an inquiry is conducted by any person authorised by it in this behalf, it may require a report from such person in respect of the inquiry. **7. Issue or refusal of authorisation.—(1) The Reserve Bank may, if satisfied, after any inquiry** under section 6 or otherwise, that the application is complete in all respects and that it conforms to the provisions of this Act and the regulations issue an authorisation for operating the payment system under this Act having regard to the following considerations, namely:— (i) the need for the proposed payment system or the services proposed to be undertaken by it; (ii) the technical standards or the design of the proposed payment system; (iii) the terms and conditions of operation of the proposed payment system including any security procedure; (iv) the manner in which transfer of funds may be effected within the payment system; (v) the procedure for netting of payment instructions effecting the payment obligations under the payment system; 6 ----- (vi) the financial status, experience of management and integrity of the applicant; (vii) interests of consumers, including the terms and conditions governing their relationship with payment system providers; (viii) monetary and credit policies; and (ix) such other factors as may be considered relevant by the Reserve Bank. (2) An authorisation issued under sub-section (1) shall be in such form as may be prescribed and shall— (a) state the date on which it takes effect; (b) state the conditions subject to which the authorisation shall be in force; (c) indicate the payment of fees, if any, to be paid for the authorisation to be in force; (d) if it considers necessary, require the applicant to furnish such security for the proper conduct of the payment system under the provisions of this Act; (e) continue to be in force till the authorisation is revoked. (3) Where the Reserve Bank considers that the application for authorisation should be refused, it shall give the applicant a written notice to that effect stating the reasons for the refusal: Provided that no such application shall be refused unless the applicant is given a reasonable opportunity of being heard. (4) Every application for authorisation shall be processed by the Reserve Bank as soon as possible and an endeavour shall be made to dispose of such application within six months from the date of filing of such application. **8. Revocation of authorisation.—(1) If a system provider,—** (i) contravenes any provisions of this Act, or (ii) does not comply with the regulations, or (iii) fails to comply with the orders or directions issued by the designated authority, or (iv) operates the payment system contrary to the conditions subject to which the authorisation was issued, the Reserve Bank may, by order, revoke the authorisation given to such system provider under this Act: Provided that no order of revocation under sub-section (1) shall be made— (i) except after giving the system provider a reasonable opportunity of being heard; and (ii) without prejudice to the direction of the Reserve Bank to the system provider that the operation of the payment system shall not be carried out till the order of revocation is issued. (2) Nothing contained in sub-section (1) shall apply to a case where the Reserve Bank considers it necessary to revoke the authorisation given to a payment system in the interest of the monetary policy of the country or for any other reasons to be specified by it in the order. (3) The order of revocation issued under sub-section (1) shall include necessary provisions to protect and safeguard the interests of persons affected by such order of revocation. (4) Where a system provider becomes insolvent or dissolved or wound up, such system provider shall inform that fact to the Reserve Bank and thereupon the Reserve Bank shall take such steps as deemed necessary to revoke the authorisation issued to such system provider to operate the payment system. **9. Appeal to the Central Government.—(1) Any applicant for an authorisation whose application** for the operation of the payment system is refused under sub-section (3) of section 7 or a system provider who is aggrieved by an order of revocation under section 8 may, within thirty days from the date on which the order is communicated to him, appeal to the Central Government. 7 ----- (2) The Central Government shall endeavour to dispose of an appeal under sub-section (1) within a period of three months. (3) The decision of the Central Government on the appeal under sub-section (1) shall be final. CHAPTER IV REGULATION AND SUPERVISION BY THE RESERVE BANK **10. Power to determine standards.—(1) The Reserve Bank may, from time to time, prescribe—** (a) the format of payment instructions and the size and shape of such instructions; (b) the timings to be maintained by payment systems; (c) the manner of transfer of funds within the payment system, either through paper, electronic means or in any other manner, between banks or between banks and other system participants; (d) such other standards to be complied with the payment systems generally; (e) the criteria for membership of payment systems including continuation, termination and rejection of membership; (f) the conditions subject to which the system participants shall participate in such fund transfers and the rights and obligations of the system participants in such funds. (2) Without prejudice to the provisions of sub-section (1), the Reserve Bank may, from time to time, issue such guidelines, as it may consider necessary for the proper and efficient management of the payment systems generally or with reference to any particular payment system. **1[10A. Bank, etc., not to impose charge for using electronic modes of payment.—Notwithstanding** anything contained in this Act, no bank or system provider shall impose, whether directly or indirectly, any charge upon a person making or receiving a payment by using the electronic modes of payment prescribed under section 269SU of the Income-tax Act, 1961 (43 of 1961).] **11. Notice of change in the payment system.—(1) No system provider shall cause any change in the** system which would affect the structure or the operation of the payment system without— (a) the prior approval of the Reserve Bank; and (b) giving notice of not less than thirty days to the system participants after the approval of the Reserve Bank: Provided that in the interest of monetary policy of the country or in public interest, the Reserve Bank may permit the system provider to make any changes in a payment system without giving notice to the system participants under clause (b) or requiring the system provider to give notice for a period longer than thirty days. (2) Where the Reserve Bank has any objection, to the proposed change for any reason, it shall communicate such objection to the systems provider within two weeks of receipt of the intimation of the proposed changes from the system provider. (3) The system provider shall, within a period of two weeks of the receipt of the objections from the Reserve Bank forward his comments to the Reserve Bank and the proposed changes may be effected only after the receipt of approval from the Reserve Bank. **12. Power to call for returns, documents or other information.—The Reserve Bank may call for** from any system provider such returns or documents as it may require or other information in regard to the operation of his payment system at such intervals, in such form and in such manner, as the Reserve Bank may require from time to time or as may be prescribed and such order shall be complied with. 1. Ins. by Act 23 of 2019, s. 204 (w.e.f. 1-11-2019). 8 ----- **13. Access to information.—The Reserve Bank shall have right to access any information relating to** the operation of any payment system and system provider and all the system participants shall provide access to such information to the Reserve Bank. **14. Power to enter and inspect.—Any officer of the Reserve Bank duly authorised by it in writing in** this behalf, may for ensuring compliance with the provisions of this Act or any regulations, enter any premises where a payment system is being operated and may inspect any equipment, including any computer system or other documents situated at such premises and call upon any employee of such system provider or participant thereof or any other person working in such premises to furnish such information or documents as may be required by such officer. **15. Information, etc., to be confidential.—(1) Subject to the provisions of sub-section (2), any** document or information obtained by the Reserve Bank under sections 12 to 14 (both inclusive) shall be kept confidential. (2) Notwithstanding anything contained in sub-section (1), the Reserve Bank may disclose any document or information obtained by it under sections 12 to 14 (both inclusive) to any person to whom the disclosure of such document or information is considered necessary for protecting the integrity, effectiveness or security of the payment system, or in the interest of banking or monetary policy or the operation of the payment systems generally or in the public interest. **16. Power to carry out audit and inspection.—The Reserve Bank may, for the purpose of carrying** out its functions under this Act, conduct or get conducted audits and inspections of a payment system or participants thereof and it shall be the duty of the system provider and the system participants to assist the Reserve Bank to carry out such audit or inspection, as the case may be. **17. Power to issue directions.—Where the Reserve Bank is of the opinion that,—** (a) a payment system or a system participant is engaging in, or is about to engage in, any act, omission or course of conduct that results, or is likely to result, in systemic risk being inadequately controlled; or (b) any action under clause (a) is likely to affect the payment system, the monetary policy or the credit policy of the country, the Reserve Bank may issue directions in writing to such payment system or system participant requiring it, within such time as the Reserve Bank may specify— (i) to cease and desist from engaging in the act, omission or course of conduct or to ensure the system participants to cease and desist from the act, omission or course of conduct; or (ii) to perform such acts as may be necessary, in the opinion of the Reserve Bank, to remedy the situation. **18. Power of Reserve Bank to give directions generally.—Without prejudice to the provisions of** the foregoing, the Reserve Bank may, if it is satisfied that for the purpose of enabling it to regulate the payment systems or in the interest of management or operation of any of the payment systems or in public interest, it is necessary so to do, lay down policies relating to the regulation of payment systems including electronic, non-electronic, domestic and international payment systems affecting domestic transactions and give such directions in writing as it may consider necessary to system providers or the system participants or any other person either generally or to any such agency and in particular, pertaining to the conduct of business relating to payment systems. **19. Directions of Reserve Bank to be complied with.—Every person to whom a direction has been** issued by the Reserve Bank under this Act shall comply with such direction without any delay and a report of compliance shall be furnished to the Reserve Bank within the time allowed by it. 9 ----- CHAPTER V RIGHTS AND DUTIES OF A SYSTEM PROVIDER **20. System provider to act in accordance with the Act, regulations, etc.—Every system provider** shall operate the payment system in accordance with the provisions of this Act, the regulations, the contract governing the relationship among the system participants, the rules and regulations which deal with the operation of the payment system and the conditions subject to which the authorisation is issued, and the directions given by the Reserve Bank from time to time. **21. Duties of a system provider.—(1) Every system provider shall disclose to the existing or** potential system participants, the terms and conditions including the charges and the limitations of liability under the payment system, supply them with copies of the rules and regulations governing the operation of the payment system, netting arrangements and other relevant documents. (2) It shall be the duty of every system provider to maintain the standards determined under this Act. **22. Duty to keep documents in the payment system confidential.—(1) A system provider shall not** disclose to any other person the existence or contents of any document or part thereof or other information given to him by a system participant, except where such disclosure is required under the provisions of this Act or the disclosure is made with the express or implied consent of the system participant concerned or where such disclosure is in obedience to the orders passed by a court of competent jurisdiction or a statutory authority in exercise of the powers conferred by a statute. (2) The provisions of the Bankers’ Book Evidence Act, 1891(18 of 1991) shall apply in relation to the information or documents or other books in whatever form maintained by the system provider. **23. Settlement and netting.—(1) The payment obligations and settlement instructions among the** system participants shall be determined in accordance with the gross or netting procedure, as the case maybe, approved by the Reserve Bank while issuing authorisation to a payment system [1][under section 7, or, such gross or netting procedure as may be approved by it under any other provisions of this Act]. (2) Where the rules providing for the operation of a payment system indicates a procedure for the distribution of losses between the system participants and the payment system, such procedure shall have effect notwithstanding anything to the contrary contained in any other law for the time being in force. (3) A settlement effected under such procedure shall be final and irrevocable. 2[(4) Where, by an order of a court, Tribunal or authority–– (a) a system participant is declared as insolvent or is dissolved or wound up; or (b) a liquidator or receiver or assignee (by whatever name called), whether provisional or otherwise, is appointed in a proceeding relating to insolvency or dissolution or winding up of a system participant, then, notwithstanding anything contained in the Banking Regulation Act, 1949 (10 of 1949) or the Companies Act, 1956 (1 of 1956) or the Companies Act, 2013 (18 of 2013) [3][or the Insolvency and Bankruptcy Code, 2016] or any other law for the time being in force, such order shall not affect any settlement that has become final and irrevocable prior to such order or immediately thereafter, and the right of the system provider to appropriate any collaterals contributed by the system participants towards its settlement or other obligations in accordance with the rules, regulations or bye-laws relating to such system provider.] 4[(5) Where an order referred to in sub-section (4) is made with respect to a central counter party, then, notwithstanding such order or anything contained in the Banking Regulation Act, 1949 (10 of 1949) or the Companies Act, 1956 (1 of 1956) or the Companies Act, 2013 (18 of 2013) [3][or the Insolvency and Bankruptcy Code, 2016] or any other law for the time being in force, the payment obligations and 1. Ins. by Act 18 of 2015, s.3 (w.e.f. 1-6-2015). 2. Subs. by s.3, ibid., for sub-section (4) (w.e.f. 1-6-2015). 3. Ins. by Act 31 of 2016, s. 253 and the Ninth Schedule (w.e.f. 15-11-2016). 4. Ins.by s. 3, ibid. (w.e.f. 1-6-2015). 10 ----- settlement instructions between the central counter party and the system participants including those arising from transactions admitted for settlement at a future date, shall be determined forthwith by such central counter party in accordance with the gross or netting procedure, as the case may be, approved by the Reserve Bank, while issuing authorisation or under any other provisions of this Act, and such determination shall be final and irrevocable. (6) Notwithstanding anything contained in the Banking Regulation Act, 1949 (10 of 1949) or the Companies Act, 1956 (1 of 1956) or the Companies Act, 2013 (18 of 2013) [1][or the Insolvency and Bankruptcy Code, 2016] or any other law for the time being in force, the liquidator or receiver or assignee (by whatever name called) of the central counter party, whether appointed as provisional or otherwise, shall— (a) not re-open any determination that has become final and irrevocable; (b) after appropriating in accordance with the rules, regulations or bye-laws of the central counter party, the collaterals provided by the system participants towards their settlement or other obligations, return the collaterals held in excess to the system participants concerned.] 2[Explanation 1].—For the removal of doubts, it is hereby declared that the settlement, whether gross or net, referred to in this section is final and irrevocable as soon as the money, securities, foreign exchange or derivatives or other transactions payable as a result of such settlement is determined, whether or not such money, securities or foreign exchange or derivatives or other transactions is actually paid. 3[Explanation 2.—For the purposes of this section, the expression “central counter party” means a system provider who by way of novation interposes between system participants in the transactions admitted for settlement, thereby becoming the buyer to every seller and the seller to every buyer, for the purpose of effecting settlement of their transactions.] 4[23A. Protection of funds collected from customers.—(1) The Reserve Bank may, in public interest or in the interest of the customers of designated payment systems or to prevent the affairs of such designated payment system from being conducted in a manner prejudicial to the interests of its customers, require system provider of such payment system to— (a) deposit and keep deposited in a separate account or accounts held in a scheduled commercial bank; or (b) maintain liquid assets in such manner and form as it may specify from time to time, of an amount equal to such percentage of the amounts collected by the system provider of designated payment system from its customers and remaining outstanding, as maybe specified by the Reserve Bank from time to time: Provided that the Reserve Bank may specify different percentages and the manner and forms for different categories of designated payment systems. (2) The balance held in the account or accounts, referred to in sub-section (1), shall not be utilised for any purpose other than for discharging the liabilities arising on account of the usage of the payment service by the customers or for repaying to the customers or for such other purpose as may be specified by the Reserve Bank from time to time. (3) Notwithstanding anything contained in the Banking Regulation Act, 1949 (10 of 1949), or the Companies Act, 1956 (1 of 1956) or the Companies Act, 2013 (18 of 2013) [1][or the Insolvency and Bankruptcy Code, 2016] or any other law for the time being in force, the persons entitled to receive payment under sub-section (2) shall have a first and paramount charge on the balance held in that account and the liquidator or receiver or assignee (by whatever name called) of the system provider of the designated payment system or the scheduled commercial bank concerned, whether appointed as 1. Ins. by Act 31 of 2016, s. 253 and the Ninth Schedule (w.e.f. 15-11-2016). 2. Existing Explanation numbered as Explanation 1 by s. 3, ibid. (w.e.f. 1-6-2015). 3. The Explanation 2 ins. by s. 3, ibid. (w.e.f. 1-6-2015). 4. Ins. by Act 18 of 2015, s. 4 (w.e.f. 1-6-2015). 11 ----- provisional or otherwise, shall not utilise the said balances for any other purposes until all such persons are paid in full or adequate provision is made therefor. _Explanation.—For the purposes of this section, the expressions—_ (a) “designated payment system” shall mean a payment system or a class of payment system, as may be specified by the Reserve Bank from time to time, engaged in collection of funds from their customers for rendering payment service; (b) “scheduled commercial bank” shall mean a “banking company”,“ corresponding new bank”, “State Bank of India” and “subsidiary bank” as defined in section 5 of the Banking Regulation Act, 1949 (10 of 1949) and included in the Second Schedule to the Reserve Bank of India Act,1934 (2 of 1934).] CHAPTER VI SETTLEMENT OF DISPUTES **24. Settlement of disputes.—(1) The system provider shall make provision in its rules or regulations** for creation of panel consisting of not less than three system participants other than the system participants who are parties to the dispute to decide the disputes between system participants in respect of any matter connected with the operation of the payment system. (2) Where any dispute in respect of any matter connected with the operation of the payment system arises between two or more system participants, the system provider shall refer the dispute to the panel referred to in sub-section (1). (3) Where any dispute arises between any system participant and the system provider or between system providers or where any of the system participants is not satisfied with the decision of the panel referred to in sub-section (1), the dispute shall be referred to the Reserve Bank. (4) The dispute referred to the Reserve Bank for adjudication under sub-section (3) shall be disposed of by an officer of the Reserve Bank generally or specially authorised in this behalf and the decision of the Reserve Bank shall be final and binding. (5) Where a dispute arises between the Reserve Bank, while acting in its capacity as system provider or as system participant, and another system provider or system participant, the matter shall be referred to the Central Government which may authorise an officer not below the rank of Joint Secretary for settlement of the dispute and the decision of such officer shall be final. **25. Dishonour of electronic funds transfer for insufficiency, etc., of funds in the account.—(1)** Where an electronic funds transfer initiated by a person from an account maintained by him cannot be executed on the ground that the amount of money standing to the credit of that account is insufficient to honour the transfer instruction or that it exceeds the amount arranged to be paid from that account by an agreement made with a bank, such person shall be deemed to have committed an offence and shall, without prejudice to any other provisions of this Act, be punished with imprisonment for a term which may extend to two years, or with fine which may extend to twice the amount of the electronic funds transfer, or with both: Provided that nothing contained in this section shall apply unless— (a) the electronic funds transfer was initiated for payment of any amount of money to another person for the discharge, in whole or in part, of any debt or other liability; (b) the electronic funds transfer was initiated in accordance with the relevant procedural guidelines issued by the system provider; (c) the beneficiary makes a demand for the payment of the said amount of money by giving a notice in writing to the person initiating the electronic funds transfer within thirty days of the receipt of information by him from the bank concerned regarding the dishonour of the electronic funds transfer; and 12 ----- (d) the person initiating the electronic funds transfer fails to make the payment of the said money to the beneficiary within fifteen days of the receipt of the said notice. (2) It shall be presumed, unless the contrary is proved, that the electronic funds transfer was initiated for the discharge, in whole or in part, of any debt or other liability. (3) It shall not be a defence in a prosecution for an offence under sub-section (1) that the person, who initiated the electronic funds transfer through an instruction, authorisation, order or agreement, did not have reason to believe at the time of such instruction, authorisation, order or agreement that the credit of his account is insufficient to effect the electronic funds transfer. (4) The Court shall, in respect of every proceeding under this section, on production of a communication from the bank denoting the dishonour of electronic funds transfer, presume the fact of dishonour of such electronic funds transfer, unless and until such fact is disproved. (5) The provisions of Chapter XVII of the Negotiable Instruments Act, 1881 (26 of 1881) shall apply to the dishonour of electronic funds transfer to the extent the circumstances admit. _Explanation.—For the purposes of this section, “debt or other liability” means a legally enforceable_ debt or other liability, as the case may be. CHAPTER VII OFFENCES AND PENALTIES **26. Penalties.—(1)Where a person contravenes the provisions of section 4 or fails to comply with the** terms and conditions subject to which the authorisation has been issued under section 7, he shall be punishable with imprisonment for a term which shall not be less than one month but which may extend to ten years or with fine which may extend to one crore rupees or with both and with a further fine which may extend to one lakh rupees for every day, after the first during which the contravention or failure to comply continues. (2) Whoever in any application for authorisation or in any return or other document or on any information required to be furnished by or under, or for the purpose of, any provision of this Act, wilfully makes a statement which is false in any material particular, knowing it to be false or wilfully omits to make a material statement, shall be punishable with imprisonment for a term which may extend to three years and shall also be liable to fine which shall not be less than ten lakh rupees and which may extend to fifty lakh rupees. (3) If any person fails to produce any statement, information, returns or other documents, or to furnish any statement, information, returns or other documents, which under section 12 or under section 13, it is his duty to furnish or to answer any question relating to the operation of a payment system which is required by an officer making inspection under section 14, he shall be [1][liable to penalty as may be imposed in accordance with the provisions of section 30]. (4) If any person discloses any information, the disclosure of which is prohibited under section 22, he shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to five lakh rupees or an amount equal to twice the amount of the damages incurred by the act of such disclosure, whichever is higher or with both. (5) Where a direction issued under this Act is not complied with within the period stipulated by the Reserve Bank or where no such period is stipulated, within a reasonable time or where the penalty imposed by the Reserve Bank under section 30 is not paid within a period of thirty days from the date of the order, the system provider or the system participant which has failed to comply with the direction or to pay the penalty shall be punishable with imprisonment for a term which shall not be less than one month but which may extend to ten years, or with fine which may extend to one crore rupees or with both and where the failure to comply with the direction continues, with further fine which may extend to one lakh rupees for every day, after the first during which the contravention continues. 1. Subs. by Act 18 of 2023, s. 2 and schedule, for certain words (w.e.f. 22-1-2024). 13 ----- (6) If any provision of this Act is contravened, or if any default is made in complying with any other requirement of this Act, or of any regulation, order or direction made or given or condition imposed thereunder and in respect of which no penalty has been specified, then, the person guilty of such contravention or default, as the case may be, shall be [1][liable to penalty as may be imposed in accordance with the provisions of section 30]. **27. Offences by companies.—(1) Where a person committing a contravention of any of the** provisions of this Act or any regulation, direction or order made thereunder is a company, every person who, at the time of the contravention, was in-charge of, and was responsible to, the company for the conduct of business of the company, as well as the company, shall be guilty of the contravention and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to punishment if he proves that the contravention took place without his knowledge or that he exercised all due diligence to prevent such contravention. (2) Notwithstanding anything contained in sub-section (1), where a contravention of any of the provisions of this Act or of any regulation, direction or order made thereunder has been committed by a company and it is proved that the contravention has taken place with the consent or connivance of, or is attributable to any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of the contravention and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section,—_ (a) “company” means any body corporate and includes a firm or other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm. **28. Cognizance of offences.—(1) No court shall take cognizance of an offence punishable under this** Act except upon a complaint in writing made by an officer of the Reserve Bank generally or specially authorised by it in writing in this behalf, and no court, lower than that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any such offence: Provided that the Court may take cognizance of an offence punishable under section 25 upon a complaint in writing made by the person aggrieved by the dishonour of the electronic funds transfer. (2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), a Magistrate may dispense with the personal attendance of the officer of the Reserve Bank filing the complaint, but the Magistrate may, in his discretion, at any stage of the proceedings, direct the personal attendance of the complainant. **29. Application of fine.—A court imposing any fine under this Act may direct that the whole or any** part thereof shall be applied in, or towards payment of, the costs of the proceedings. **30. Power of Reserve Bank to impose** **[2][penalties].—(1) Notwithstanding anything contained in** section 26, if a contravention or default of the nature referred to in sub-section (2) [3][or sub-section (3)] or sub-section (6) of section 26, as the case may be, the Reserve Bank may impose on the person contravening or committing default a penalty not exceeding [4][ten lakh] rupees or twice the amount involved in such contravention or default where such amount is quantifiable, whichever is more, and where such contravention or default is a continuing one, a further penalty which may extend to twentyfive thousand rupees for every day after the first during which the contravention or default continues. (2) For the purpose of imposing penalty under sub-section (1), the Reserve Bank shall serve a notice on the defaulter requiring him to show cause why the amount specified in the notice should not be imposed as a penalty and a reasonable opportunity of being heard shall also be given to such defaulter. 1. Subs. by Act 18 of 2023, s. 2 and schedule, for certain words (w.e.f. 22-01-2024). 2. Subs. by s. 2 and schedule, ibid., for “fines” (w.e.f. 22-1-2024). 3. Ins. by s. 2 and schedule, ibid. (w.e.f. 22-1-2024). 4. Subs. by s. 2 and schedule, ibid., for “five lakh” (w.e.f. 22-1-2024). 14 ----- (3) Any penalty imposed by the Reserve Bank under this section shall be payable within a period of thirty days from the date on which notice issued by the Reserve Bank demanding payment of the sum is served on the defaulter and, in the event of failure of the person to pay the sum within such period, may be recovered on a direction made by the principal civil court having jurisdiction in the area where the registered office of the defaulter company or the official business of the person is situated: Provided that no such direction shall be made, except on an application made by an officer of the Reserve Bank authorised by it in this behalf. (4) The Reserve Bank may recover the amount of penalty by debiting the current account, if any, of the defaulter or by liquidating the securities held to the credit of the defaulter or in accordance with the provisions of this Act. (5) The court which makes a direction under sub-section (3) shall issue a certificate specifying the sum payable by the defaulter and every such certificate shall be enforceable in the same manner as it were a decree made by the court in a civil suit. (6) Where any complaint has been filed against any person in any court in respect of the contravention or default of the nature referred to in sub-section (2), or, as the case may be, sub-section (4) of section 26, then, no proceeding for the imposition of any penalty on the person shall be taken under this section. **31. Power to compound offences.—(1) Notwithstanding anything contained in the Code of Criminal** Procedure, 1973 (2 of 1974), any offence punishable under this Act for any contravention, not being an offence punishable with imprisonment only, or with imprisonment and also with fine, may, on receipt of an application from the person committing such contravention either before or after the institution of any proceeding, be compounded by an officer of the Reserve Bank duly authorised by it in this behalf. (2) Where a contravention has been compounded under sub-section (1), no proceeding or further proceeding, as the case may be, shall be initiated or continued, as the case may be, against the person committing such contravention under that section, in respect of the contravention so compounded. CHAPTER VIII MISCELLANEOUS **32. Act to have overriding effect.—The provisions of this Act shall have effect notwithstanding** anything inconsistent therewith contained in any other law for the time being in force. **33. Mode of recovery of penalty.—(1) The penalty imposed on the defaulter by the Reserve Bank** under section 30 may be recovered by issuing a notice to any person from whom any amount is due to the defaulter, by requiring such person to deduct from the amount payable by him to the defaulter, the amount payable to the Reserve Bank by way of penalty and pay to the Reserve Bank. (2) Save as otherwise provided in this section, every person to whom a notice is issued under this sub section shall be bound to comply with such notice, and, in particular, where such notice is issued to a post office, bank or an insurer, it shall not be necessary for any passbook, deposit receipt, policy or any other document to be produced for the purpose of any entry, endorsement or the like being made before payment is made notwithstanding that any rule, practice or requirement to the contrary. (3) Any claim respecting any property in relation to which a notice under this sub-section has been issued arising after the date of the notice shall be void as against any demand contained in the notice. (4) Where a person to whom the notice under this sub-section is sent objects to it by a statement on oath that the sum demanded or any part thereof is not due to the defaulter or that he does not hold any money for or on account of the defaulter, then, nothing contained in this sub-section shall be deemed to require such person to pay any such sum or part thereof, as the case may be, but if it is discovered that such statement was false in any material particular, such person shall be personally liable to the Reserve Bank to the extent of his own liability to the defaulter on the date of the notice, or to the extent of the penalty imposed on the defaulter by the Reserve Bank, whichever is less. 15 ----- (5) The Reserve Bank may at any time or from time to time, amend or revoke any notice issued under this section or extend the time for making the payment in pursuance of such notice. (6) The Reserve Bank shall grant a receipt for any amount paid to it in compliance with a notice issued under this section and the person so paying shall be fully discharged from his liability to the defaulter to the extent of the amount so paid. (7) Any person discharging any liability to the defaulter after the receipt of a notice under this section shall be personally liable to the Reserve Bank to the extent of his own liability to the defaulter so discharged or to the extent of the penalty imposed on the defaulter by the Reserve Bank, whichever is less. (8) If the person to whom the notice under this section is sent fails to make payment in pursuance thereof to the Reserve Bank, he shall be deemed to be the defaulter in respect of the amount specified in the notice and further proceedings may be taken against him for the realisation of the amount as if it were an arrear due from him in the manner provided in this section. _Explanation.—For the purposes of this section, “defaulter” means any person or system provider or_ system participant on whom the Reserve Bank has imposed a penalty under section 30. **34. Act not to apply to stock exchanges or clearing corporations of stock exchanges.—Nothing** contained in this Act shall apply to stock exchanges or the clearing corporations of the stock exchanges. 1[34A. Act to apply to designated trade repository and issuer.—(1) The provisions of this Act shall apply to, or in relation to, a designated trade repository or issuer, as they apply to, or in relation to, payment systems to the extent applicable, subject to the modification that, throughout this Act, unless the context otherwise requires,— (a) references to a “payment system” or “system provider” shall be construed as references to a “designated trade repository” or “issuer”, as the case may be; (b) references to “commencement of this Act” shall be construed with reference to–– (i) a designated trade repository, as references to the date on which a trade repository is specified by the Reserve Bank as a designated trade repository; and (ii) an issuer, as references to commencement of the Payment and Settlement Systems (Amendment) Act, 2015 (18 of 2015). (2) The Reserve Bank may, on an application by a designated trade repository or otherwise, permit or direct the designated trade repository to provide such other services as are deemed necessary from time to time. _Explanation.—For the purposes of this section, the expression “designated trade repository” shall_ mean a trade repository or a class of trade repositories, as maybe specified by the Reserve Bank from time to time.] 2[34B. Powers of Reserve Bank not to apply to International Financial Services Centre.— Notwithstanding anything contained in any other law for the time being in force, the powers exercisable by the Reserve Bank under this Act,— (a) shall not extend to an International Financial Services Centre set up under sub-section (1) of section 18 of the Special Economic Zones Act, 2005 (28 of 2005); (b) shall be exercisable by the International Financial Services Centres Authority established under sub-section (1) of section 4 of the International Financial Services Centres Authority Act, 2019, in so far as regulation of financial products, financial services and financial institutions that are permitted in the International Financial Services Centres are concerned.] 1. Ins. by Act 18 of 2015, s. 5 (w.e.f. 1-6-2015). 2. Ins. by Act 50 of 2019, s. 33 and the second Schedule (w.e.f. 1-10-2020). 16 ----- **35. Certain persons deemed to be public servants.—Every officer of the Reserve Bank who has** been entrusted with any power under this Act, shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860). **36. Protection of action taken in good faith.—No suit or other legal proceedings shall lie against** the Central Government, the Reserve Bank, or any officer thereof for any damage caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance of this Act, any regulations, order or direction made or given thereunder. **37. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provision is not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for removing the difficulty: Provided that no order shall be made under this section after the expiry of a period of two years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **38. Power of Reserve Bank to make regulations.—(1) The Reserve Bank may, by notification,** make regulations consistent with this Act to carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing provision, such regulations may provide for all or any of the following matters, namely:— (a) the powers and functions of the [1][Board referred to in sub-section (2)], the time and venue of its meetings and the procedure to be followed by it at its meetings (including the quorum at such meetings) under sub-section (4) of section 3; (b) the form and manner in which an application for authorisation for commencing or carrying on a payment system shall be made and the fees which shall accompany such application under subsection (2) of section 5; (c) the form in which an authorisation to operate a payment system under this Act shall be issued under sub-section (2) of section 7; (d) the format of payment instructions and other matters relating to determination of standards to be complied with by the payment systems under sub-section (1) of section 10; (e) the intervals, at which and the form and manner in which the information or returns required by the Reserve Bank shall be furnished under section 12; (f) such other matters as are required to be, or may be, prescribed. (2) Any regulation made under this section shall have effect from such earlier or later date (nor earlier than the date of commencement of this Act) as may be specified in the regulation. (3) Every regulation shall, as soon as may be after it is made by the Reserve Bank, be forwarded to the Central Government and that Central Government shall cause a copy of the same to be laid before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the regulation, or both Houses agree that the regulation should not be made, the regulation shall, thereafter, have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that regulation. _____________ 1. Subs. by the Finance Act 2017, s. 153, for “Committee constituted under sub-section (2)” 17 -----

20-Dec-2007

53

The Sashastra Seema Bal Act, 2007

https://www.indiacode.nic.in/bitstream/123456789/2039/1/a2007-53.pdf

central

# THE SASHASTRA SEEMA BAL ACT, 2007 –––––– ARRANGEMENT OF SECTIONS –––––– CHAPTER 1 PRELIMINARY SECTIONS 1. Short title and commencement. 2. Definitions. 3. Persons subject to this Act. CHAPTER II CONSTITUTION OF THE FORCE AND CONDITIONS OF SERVICE OF THE MEMBERS OF THE FORCE 4. Constitution of the Force. 5. Control, direction, etc. 6. Enrolment. 7. Liability for service outside India. 8. Resignation and withdrawal from the post. 9. Tenure of service under the Act. 10. Termination of service by Central Government. 11. Dismissal, removal or reduction in rank by the Director-General and by other officers. 12. Certificate of termination of service. 13. Restrictions respecting right to form association, freedom of speech, etc. 14. Redressal of grievances of persons other than officers. 15. Redressal of grievances of officers. CHAPTER III OFFENCES 16. Offences in relation to enemy and punishable with death. 17. Offences in relation to the enemy and not punishable with death. 18. Offences punishable more severely on active duty than at other times. 19. Mutiny. 20. Desertion and aiding desertion. 21. Absence without leave. 22. Striking or threatening superior officer. 23. Disobedience to superior officer. 24. Insubordination and obstruction. 25. False information on enrolment. 26. Unbecoming conduct. 27. Certain forms of disgraceful conduct. 28. Ill-treating a subordinate. 29. Intoxication. 30. Permitting escape of person in custody. 31. Irregularity in connection with arrest or confinement. 32. Escape from custody. 33. Offences in respect of property. 34. Extortion and exaction. 35. Making away with equipment. 36. Injury to property, etc. 37. False accusations. 38. Falsifying official documents and false declarations. ----- SECTIONS 39. Signing in blank and failure to report. 40. Offences relating to Force Court. 41. False evidence. 42. Unlawful detention of pay. 43. Violation of good order and discipline. 44. Miscellaneous offences. 45. Attempt. 46. Abetment of offences that have been committed. 47. Abetment of offences punishable with death and not committed. 48. Abetment of offences punishable with imprisonment and not committed. 49. Civil offences. 50. Civil offences not triable by a Force Court. CHAPTER IV PUNISHMENT 51. Punishment by Force Courts. 52. Alternative punishments by Force Courts. 53. Combination of punishments. 54. Retention in the Force of a person convicted on active duty. 55. Punishments otherwise than by Force Courts. 56. Minor punishments. 57. Limit of punishments under section 56. 58. Punishment of persons of or below the rank of Commandant by Inspector-General and others. 59. Cancellation, variation or remittance of sentence. 60. Collective fines. CHAPTER V DEDUCTIONS FROM PAY AND ALLOWANCES 61. Deductions from pay and allowances of persons subject to this Act. 62. Pay and allowances during trial. 63. Limit of certain deductions. 64. Deduction from public money due to a person. 65. Pay and allowances of prisoner of war during inquiry into his conduct. 66. Remission of deductions. 67. Provision for dependants of prisoner of war from his remitted deductions and pay and allowances. 68. Period during which a person is deemed to be a prisoner of war. CHAPTER VI ARREST AND PROCEEDINGS BEFORE TRIAL 69. Custody of offenders. 70. Duty of commanding officer in regard to detention. 71. Interval between committal and trial. 72. Arrest by civil authorities. 73. Capture of deserters. 74. Inquiry into absence without leave. 75. Force Police Officers. ----- CHAPTER VII FORCE COURTS SECTIONS 76. Kinds of Force Courts. 77. Power to convene a General Force Court. 78. Power to convene a Petty Force Court. 79. Warrants issued under sections 77 and 78. 80. Composition of a General Force Court. 81. Composition of a Petty Force Court. 82. Summary Force Court. 83. Dissolution of a Force Court. 84. Powers of a General Force Court. 85. Powers of a Petty Force Court. 86. Powers of a Summary Force Court. 87. Prohibition of second trial. 88. Period of limitation for trial. 89. Trial, etc., of offender who ceases to be subject to this Act. 90. Application of Act during term of sentence. 91. Place of trial, etc. 92. Choice between criminal court and Force Court. 93. Power of criminal court to require delivery of offender. CHAPTER VIII PROCEDUREOF FORCE COURTS 94. Presiding officer. 95. Judge Attorneys. 96. Objections. 97. Oath of members, Judge Attorneys and witnesses. 98. Voting by members. 99. General rule as to evidence. 100. Judicial notice. 101. Summoning of witnesses. 102. Documents exempted from production. 103. Commission for examination of witnesses. 104. Examination of a witness on commission. 105. Conviction for offences not charged. 106. Presumption as to signatures. 107. Enrolment paper. 108. Presumption as to certain documents. 109. Reference by accused to Government officer. 110. Evidence of previous convictions and general character. 111. Lunacy of accused. 112. Subsequent fitness of lunatic accused for trial. 113. Transmission to Central Government of order under section 112. 114. Release of lunatic accused. 115. Delivery of lunatic accused to relatives. 116. Order for custody and disposal of property pending trial. 117. Order for disposal of property regarding which offence is committed. 118. Powers of Force Court in relation to proceedings under this Act. 119. Tender of pardon to accomplices. 120. Trial of person not complying with conditions of pardon. ----- CHAPTER IX CONFIRMATION AND REVISION OF PROCEEDINGS SECTIONS 121. Finding and sentence not valid unless confirmed. 122. Power to confirm finding and sentence of General Force Court. 123. Power to confirm finding and sentence of Petty Force Court. 124. Limitation of powers of confirming authority. 125. Power of confirming authority to mitigate, remit or commute sentences. 126. Confirming of findings and sentences on board a ship. 127. Revision of finding or sentence. 128. Finding and sentence of a Summary Force Court. 129. Transmission of proceedings of Summary Force Court. 130. Alteration of finding or sentence in certain cases. 131. Petition against order, finding or sentence of Force Court. 132. Annulment of proceedings. CHAPTER X EXECUTION OF SENTENCES, PARDONS, REMISSIONS, ETC. 133. Execution of sentence of death. 134. Commencement of sentence of imprisonment. 135. Execution of sentence of imprisonment. 136. Temporary custody of convict. 137. Execution of sentence of imprisonment in special cases. 138. Conveyance of prisoner from place to place. 139. Communication of certain orders to prison officers. 140. Recovery of fine. 141. Informality or error in order or warrant. 142. Pardon and remission. 143. Cancellation of conditional pardons, release on parole or remission. 144. Suspension of sentence of imprisonment. 145. Orders pending suspension of sentence. 146. Release on suspension of sentence. 147. Computation of period of sentence. 148. Order after suspension of sentence. 149. Reconsideration of case after suspension of sentence. 150. Fresh sentence after suspension. 151. Scope of power of suspension of sentence. 152. Effect of suspension and remission of sentence on dismissal. CHAPTER XI MISCELLANEOUS 153. Powers and duties conferrable and imposable on members of the Force. 154. Protection for acts of members of the Force. 155. Power to make rules. 156. Provisions as to existing Sashastra Seema Bal. ----- # THE SASHASTRA SEEMA BAL ACT, 2007 ACT NO. 53 OF 2007 [20th December, 2007.] # An Act to provide for the constitution and regulation of an armed force of the Union for ensuring the security of the borders of India and for matters connected therewith. BE it enacted by Parliament in the Fifty-eighth Year of the Republic of India as follows:– CHAPTERI PRELIMINARY **1. Short title and commencement.–(1) This Act may be called the Sashastra Seema Bal Act, 2007.** (2) It shall come into force on such date[1] as the Central Government may, by notification, in the Official Gazette, appoint. **2. Definitions.–(1) In this Act, unless the context otherwise requires,–** (a) "active duty", in relation to a person subject to this Act, means any duty as a member of the Force during the period in which such person is attached to, or forms part of, a unit of the Force– (i) which is engaged in operations against any enemy, or (ii) which is operating at a picket or engaged on patrol or other guard duty along the borders of India, and includes duty by such person during any period declared by the Central Government by order as a period of active duty with reference to any area in which any person or class of persons subject to this Act may be serving; (b) "battalion" means a unit of the Force constituted as a battalion by the Central Government; (c) "civil offence" means an offence which is triable by a criminal court; (d) "civil prison" means any jail or place used for the detention of any criminal prisoner under the Prisons Act, 1894 (9of 1894), or under any other law for the time being in force; (e) "commanding officer" means a Commandant or any officer for the time being in command of the unit or any separate portion of the Force to which such person belongs or is attached to and discharging his functions under this Act or the rules made thereunder; (f) "criminal court" means a court of ordinary criminal justice in any part of India constituted under the Code of Criminal Procedure, 1973 (2 of 1974); (g) "Deputy Inspector-General" and "Additional Deputy Inspector-General" mean respectively a Deputy Inspector-General and an Additional Deputy Inspector-General of the Force appointed under section 5; (h) "Director-General" and "Additional Director-General" mean respectively the Director-General and an Additional Director-General of the Force appointed under section 5; (i) "enemy" includes all mutineers, armed rebels, armed rioters, pirates, terrorists and any person in arms against whom it is the duty of any person subject to this Act to take action; (j) "enrolled person" means an under-officer or other person enrolled under this Act; (k) "Force" means the Sashastra Seema Bal; (l) "Force Court" means a Court referred to in section76; (m) "Force custody" means the arrest or confinement of a member of the Force under section 69; (n) "Inspector-General" means the Inspector-General of the Force appointed under section 5; (o) "Judge Attorney-General", "Additional Judge Attorney-General", "Deputy Judge AttorneyGeneral" and "Judge Attorney" mean respectively the Judge Attorney-General, an Additional Judge Attorney-General, a Deputy Judge Attorney-General and a Judge Attorney of the Force appointed under sub-section (2) of section 95; –––––––––––––––––––––––– 1. 1st August, 2009, vide notification No. S.O. 1871(E), dated 31st July, 2009, see Gazette of India, Extraordinary, Part II, Sec. 3(ii). ----- (p) "member of the Force" means an officer, a subordinate officer, anunder-officer or other enrolled person; (q) "notification" means a notification published in the Official Gazette; (r) "offence" means any act or omission punishable under this Act and includes a civil offence; (s) "officer" means a person appointed or in pay as an officer of the Force, but does not include a subordinate officer or an under-officer; (t) "prescribed" means prescribed by rules made under this Act; (u) "rule" means a rule made under this Act; (v) "subordinate officer" means a person appointed or in pay as a Subedar Major or Inspector or Sub-Inspector and Assistant Sub-Inspector of the Force; (w) "superior officer", when used in relation to a person subject to this Act, means– (i) any member of the Force to whose command such person is for the time being subject in accordance with the rules; (ii) any officer of a higher rank or class or of a higher grade in the same class, and includes, when such person is not an officer, a subordinate officer or an under-officer of higher rank, class or grade; (x) "under-officer" means a Head Constable of the Force; (y) "unit" includes– (i) any body of officers and other members of the Force for which a separate authorised establishment exists; (ii) any separate body of persons subject to this Act employed on any service and not attached to a unit as aforesaid; (iii) any other separate body of persons composed wholly or partly of persons subject to this Act and specified as a unit by the Central Government. (2) All words and expressions used and not defined in this Act but defined in the Indian Penal Code (45 of 1860), the Army Act, 1950 (46 of 1950) or the National Security Guard Act, 1986 (47 of 1986), shall have the same meanings respectively assigned to them in that Code or those Acts. (3) In this Act, references to any law not in force in the State of Jammu and Kashmir* shall be construed as references to the corresponding law in force in that State. **3. Persons subject to this Act.–(1) The following persons appointed (whether on deputation or in** any other manner) in the Force shall be subject to this Act, wherever they may be, namely:– (a) officers and subordinate officer; and (b) under-officers and other persons enrolled under this Act. (2) Every person subject to this Act shall remain so subject until repatriated, retired, released, discharged, removed or dismissed from the Force in accordance with the provisions of this Act and the rules. CHAPTER II CONSTITUTION OF THE FORCE AND CONDITIONS OF SERVICE OF THE MEMBERS OF THE FORCE **4. Constitution of the Force.–(1) There shall be an armed force of the Union called the Sashastra** Seema Bal for ensuring the security of the borders of India and performing such other duties as may be entrusted to it by the Central Government. *. Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and Kashmir and the Union territory of Ladakh. ----- (2) Subject to the provisions of this Act, the Force shall be constituted in such manner as may be prescribed and the conditions of service of the members of the Force shall be such as may be prescribed. **5. Control, direction, etc.–(1) The general superintendence, direction and control of the Force shall** vest in, and be exercised by, the Central Government and subject thereto and to the provisions of this Act and the rules made in this behalf, the command and supervision of the Force shall vest in an officer to be appointed by the Central Government as the Director-General of the Force. (2) The Director-General shall, in the discharge of his duties under this Act, be assisted by such number of Additional Directors-General, Inspectors-General, Deputy Inspectors-General, Additional Deputy Inspectors-General, Commandants and other officers, as may be appointed by the Central Government. **6. Enrolment.–The persons to be enrolled to the Force, the mode of enrolment and the procedure for** enrolment shall be such as may be prescribed. **7. Liability for service outside India.–Every member of the Force shall be liable to serve in any part** of India as well as outside India. **8. Resignation and withdrawal from the post.–No member of the Force shall be at liberty,–** (a) to resign his appointment during the term of his engagement; or (b) to withdraw himself from all or any of the duties of his appointment, except with the previous permission in writing of the prescribed authority. **9. Tenure of service under the Act.–Every person subject to this Act shall hold office during the** pleasure of the President. **10. Termination of service by Central Government.–Subject to the provisions of this Act and the** rules, the Central Government may dismiss or remove from the service any person subject to this Act. **11. Dismissal, removal or reduction in rank by the Director-General and by other officers.–(1)** The Director-General, or any Additional Director-General or Inspector-General may dismiss or remove from the service or reduce to a lower grade or rank any person subject to this Act other than an officer. (2) An officer not below the rank of Deputy Inspector-General or any prescribed officer may dismiss or remove from the service any person under his command other than an officer or a subordinate officer of such rank as may be prescribed. (3) Any such officer as is mentioned in sub-section (2) may reduce to a lower grade or rank any person under his command except an officer or a subordinate officer. (4) The exercise of any power under this section shall be subject to the provisions of this Act and the rules. **12. Certificate of termination of service.–A subordinate officer, or an under-officer or other** enrolled person who is retired, discharged, released, removed or dismissed from the service shall be furnished by the officer, to whose command he is subject, with a certificate in Hindi or English language setting forth– (a) the authority terminating his service; (b) the cause for such termination; and (c) the full period of his service in the Force. **13. Restrictions respecting right to form association, freedom of speech, etc.–(1) No person** subject to this Act shall, without the previous sanction in writing of the Central Government or of the prescribed authority,– (a) be a member of, or be associated in any way with, any trade union, labour union, political association, or with any class of trade unions, labour unions or political associations; or (b) be a member of, or be associated in any way with, any society, institution, association or organisation which is not recognised as part of the Force or is not of a purely social, recreational or ----- religious nature; or (c) communicate with the press or publish or cause to be published any book, letter or other document except where such communication or publication is in the bona fide discharge of his duties or is of a purely literary, artistic or scientific character or is of a prescribed nature. _Explanation.–If any question arises as to whether any society, institution, association or organisation_ is of a purely social, recreational or religious nature under clause (b) of this sub-section, the decision of the Central Government thereon shall be final. (2) No person subject to this Act shall participate in, or address, any meeting or take part in any demonstration organised by any body of persons for any political purposes or for such other purposes as may be prescribed. **14. Redressal of grievances of persons other than officers.–(1) Any person subject to this Act other** than an officer who deems himself wronged by any superior or other officer may complain to the officer under whose command he is serving. (2) When the officer complained against is the officer to whom any complaint should, under sub-section (1), be preferred, the aggrieved person may complain to such officer's next superior officer. (3) Every officer receiving any such complaint shall make as complete an investigation into it as may be possible for giving full redress to the complainant, or when necessary, refer the complaint to a superior authority. (4)The Director-General may revise any decision made under any of the foregoing sub-sections, but, subject thereto, such decision shall be final. **15. Redressal of grievances of officers.–Any officer who deems himself wronged by his** commanding officer or any other superior officer and who, on due application made to his commanding officer or such other superior officer, does not receive the redress to which he considers himself entitled, may complain to the Director-General or the Central Government through proper channel. CHAPTER III OFFENCES **16. Offences in relation to enemy and punishable with death.–Any person subject to this Act who** commits any of the following offences, namely:– (a) shamefully abandons or delivers up any post, place or guard, committed to his charge or which it is his duty to defend; or (b) intentionally uses any means to compel or induce any person subject to this Act or to any other law relating to military, naval, air force or any other armed force of the Union to abstain from acting against the enemy or to discourage such person from acting against the enemy; or (c) in the presence of the enemy, shamefully casts away his arms, ammunition, tools or equipment or misbehaves in such manner as to show cowardice; or (d) treacherously holds correspondence with, or communicates intelligence to, the enemy, terrorist or any person in arms against the Union; or (e) directly or indirectly assists the enemy or terrorist with money, arms, ammunition, stores or supplies or in any other manner whatsoever; or (f) in time of active operation against the enemy or terrorist, intentionally occasions a false alarm in action, camp, quarters, or spreads or causes to be spread reports calculated to create alarm or despondency; or (g) in time of action leaves his commanding officer or other superior officer or his post, guard, picket, patrol or party without being regularly relieved or without leave; or (h) having been captured by the enemy or made a prisoner of war, voluntarily serves with or aids the enemy; or (i) knowingly harbours or protects an enemy, not being a prisoner; or ----- (j) being a sentry in time of active operation against the enemy or alarm, sleeps upon his post or is intoxicated; or (k) knowingly does any act calculated to imperil the success of the Force or the military, naval or air force of India or any forces co-operating therewith or any part of such forces, shall, on conviction by a Force Court, be liable to suffer death or such less punishment as is in this Act mentioned. **17. Offences in relation to the enemy and not punishable with death.–Any person subject to this** Act who commits any of the following offences, namely:– (a) is taken prisoner or captured by the enemy, by want of due precaution or through disobedience of order, or willful neglect of duty, or having been taken prisoner or so captured fails to rejoin his service when able to do so; or (b) without due authority holds correspondence with, or communicates intelligence to, the enemy or any person in league with the enemy or having come by the knowledge of any such correspondence or communication, wilfully omits to disclose it immediately to his commandant or other superior officer, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to fourteen years or such less punishment as is in this Act mentioned. **18. Offences punishable more severely on active duty than at other times.–Any person subject to** this Act who commits any of the following offences, namely:– (a) forces a safeguard, or forces or uses criminal force to a sentry; or (b) breaks into any house or other place in search of plunder; or (c) being a sentry, sleeps upon his post or is intoxicated; or (d) without orders from his superior officer leaves his guard, picket, patrol or post; or (e) intentionally or through neglect occasions a false alarm in camp or quarters, or spreads or causes to be spread reports calculated to create unnecessary alarm or despondency; or (f) makes known the parole, watchword or countersign to any person not entitled to receive it; or knowingly gives a parole, watchword or a countersign different from what he received, shall, on conviction by a Force Court,– (i) if he commits any such offence when on active duty, be liable to suffer imprisonment for a term which may extend to fourteen years or such less punishment as is in this Act mentioned; and (ii) if he commits any such offence when not on active duty, be liable to suffer imprisonment for a term which may extend to seven years or such less punishment as is in this Act mentioned. **19. Mutiny.–Any person subject to this Act who commits any of the following offences, namely:–** (a) begins, incites, causes or conspires with any other person to cause any mutiny in the Force or in the military, naval or air force of India or any forces co-operating therewith; or (b) joins in any such mutiny; or (c) being present at any such mutiny, does not use his utmost endeavours to suppress the same; or (d) knowing or having reason to believe in the existence of any such mutiny, or of any intention to mutiny or of any such conspiracy, does not, without delay, give information thereof to his commanding officer or other superior officer; or (e) endeavours to seduce any person in the Force or in the military, naval or air force of India or any forces co-operating therewith from his duty or allegiance to the Union, shall, on conviction by a Force Court, be liable to suffer death or such less punishment as is in this Act mentioned. ----- **20. Desertion and aiding desertion.–(1)Any person subject to this Act who deserts or attempts to** desert the service shall, on conviction by a Force Court,– (a) if he commits the offence when on active duty or when under orders for active duty, be liable to suffer death or such less punishment as is in this Act mentioned; and (b) if he commits the offence under any other circumstances, be liable to suffer imprisonment for a term which may extend to seven years or such less punishment as is in this Act mentioned. (2) Any person subject to this Act who knowingly harbours any such deserter shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to seven years or such less punishment as is in this Act mentioned. (3) Any person subject to this Act who, being cognizant of any desertion or attempt at desertion of a person subject to this Act, does not forthwith give notice to his own or some other superior officer, or take any steps in his power to cause such person to be apprehended, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to two years or such less punishment as is in this Act mentioned. (4) For the purposes of this Act, a person deserts,– (a) if he absents from his unit or the place of duty at any time with the intention of not reporting back to such unit or place, or who, at any time and under any circumstances when absent from his unit or place of duty, does any act which shows that he has an intention of not reporting to such unit or place of duty; (b) if he absents himself without leave with intent to avoid any active duty. **21. Absence without leave.–Any person subject to this Act who commits any of the following** offences, namely:– (a) absents himself without leave; or (b) without sufficient cause overstays leave granted to him; or (c) being on leave of absence and having received information from the appropriate authority that any battalion or part thereof or any other unit of the Force, to which he belongs, has been ordered on active duty, fails, without sufficient cause, to rejoin without delay; or (d) without sufficient cause fails to appear at the time fixed at the parade or place appointed for exercise or duty; or (e) when on parade, or on the line of march, without sufficient cause or without leave from his superior officer, quits the parade or line of march; or (f) when in camp or elsewhere, is found beyond any limits fixed or in any place prohibited, by any general, local or other order, without a pass or written leave from his superior officer; or (g) without leave from his superior officer or without due cause, absents himself from any school or training institution when duly ordered to attend there, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to three years or such less punishment as is in this Act mentioned. **22. Striking or threatening superior officer.–Any person subject to this Act who commits any of** the following offences, namely:– (a) uses criminal force to or assaults his superior officer; or (b) uses threatening language to such officer; or (c) uses insubordinate language to such officer, shall, on conviction by a Force Court,– (i) if such officer is at the time in the execution of his office or, if the offence is committed on active duty, be liable to suffer imprisonment for a term which may extend to fourteen years or such less punishment as is in this Act mentioned; and ----- (ii) in other cases, be liable to suffer imprisonment for a term which may extend to ten years or such less punishment as is in this Act mentioned: Provided that in the case of an offence specified in clause (c), the imprisonment shall not exceed five years. **23. Disobedience to superior officer.–(1) Any person subject to this Act who disobeys in such** manner as to show a wilful defiance of authority any lawful command given personally by his superior officer in the execution of his office whether the same is given orally, or in writing or by signal or otherwise, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to fourteen years or such less punishment as is in this Act mentioned. (2) Any person subject to this Act who disobeys any lawful command given by his superior officer shall, on conviction by a Force Court,– (a) if he commits such offence when on active duty, be liable to suffer imprisonment for a term which may extend to fourteen years or such less punishment as is in this Act mentioned; and (b) if he commits such offence when not on active duty, be liable to suffer imprisonment for a term which may extend to five years or such less punishment as is in this Act mentioned. **24. Insubordination and obstruction.–Any person subject to this Act who commits any of the** following offences, namely:– (a) being concerned in any quarrel, affray or disorder, refuses to obey any officer, though of inferior rank, who orders him into arrest, or uses criminal force to, or assaults, any such officer; or (b) uses criminal force to, or assaults any person, whether subject to this Act or not, in whose custody he is lawfully placed, and whether he is or is not his superior officer; or (c) resists an escort whose duty it is to apprehend him or to have him in charge; or (d) breaks out of barracks, camp or quarters; or (e) neglects to obey any general, local or other order; or (f) impedes the Force Police referred to in section 75 or any person lawfully acting on his behalf, or when called upon, refuses to assist in the execution of his duty a Force Police or any person lawfully acting on his behalf, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend, in the case of the offences specified in clauses (d) or (e), to two years, and in the case of the offences specified in the other clauses, to ten years, or in either case such less punishment as is in this Act mentioned. **25. False information on enrolment.–Any person having become subject to this Act who is** discovered to have knowingly given at the time of enrolment false information to any question set forth in the prescribed form of enrolment which has been put to him by the enrolling officer before whom he appears for the purpose of being enrolled, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to five years or such less punishment as is in this Act mentioned. **26. Unbecoming conduct.–Any officer or subordinate officer who behaves in a manner unbecoming** of his position and the character expected of him shall, on conviction by a Force Court, be liable to be dismissed or to suffer such less punishment as is in this Act mentioned. **27. Certain forms of disgraceful conduct.–Any person subject to this Act who commits any of the** following offences, namely:– (a) is guilty of any disgraceful conduct of a cruel, indecent or unnatural kind; or (b) maligns, or feigns, or produces disease or infirmity in himself or intentionally delays his cure or aggravates his disease or infirmity; or (c) with intent to render himself or any other person unfit for service, voluntarily causes hurt to himself or that person, ----- shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to seven years or such less punishment as is in this Act mentioned. **28. Ill-treating a subordinate.–Any officer, subordinate officer or under-officer, who uses criminal** force to or otherwise ill-treats any person subject to this Act, being his subordinate in rank or position, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to seven years or such less punishment as is in this Act mentioned. **29. Intoxication.–(1) Any person subject to this Act who is found ina state of intoxication, whether** on duty or not, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to six months or such less punishment as is in this Act mentioned. (2) For the purposes of sub-section (1), a person shall be deemed to be in a state of intoxication if, owing to the influence of alcohol or any drug whether alone, or any combination with any other substance, he is unfit to be entrusted with his duty or with any duty which he may be called upon to perform or, behaves in a disorderly manner or in a manner likely to bring discredit to the Force. **30. Permitting escape of person in custody.–Any person subject to this Act who commits any of the** following offences, namely:– (a) when in command of a guard, picket, patrol, detachment or post, releases without proper authority, whether wilfully or without reasonable excuse, any person committed to his charge, or refuse to receive any prisoner or person so committed; or (b) wilfully or without reasonable excuse allow to escape any person who is committed to his charge, or whom it is his duty to keep or guard, shall, on conviction by a Force Court, be liable, if he has acted wilfully, to suffer imprisonment for a term which may extend to ten years or such less punishment as is in this Act mentioned, and if he has not acted wilfully, to suffer imprisonment for a term which may extend to two years or such less punishment as is in this Act mentioned. **31. Irregularity in connection with arrest or confinement.–Any person subject to this Act who** commits any of the following offences, namely:– (a) unnecessarily detains a person in arrest or confinement without bringing him to trial, or fails to bring his case before the proper authority for investigation; or (b) having committed a person to Force custody fails without reasonable cause to deliver at the time of such committal, or as soon as practicable, and in any case within forty-eight hours thereafter, to the officer or other person into whose custody the person arrested is commited, an account in writing signed by himself of the offence with which the person so committed is charged, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to one year or such less punishment as is in this Act mentioned. **32. Escape from custody.–Any person subject to this Act, who, being in lawful custody, escapes or** attempts to escape, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to three years or such less punishment as is in this Act mentioned. **33. Offences in respect of property.–Any person subject to this Act who commits any of the** following offences, namely:– (a) commits theft of any property belonging to the Government, or to any Force mess, band or institution, or to any person subject to this Act; or (b) dishonestly misappropriates or converts to his own use any such property; or (c) commits criminal breach of trust in respect of any such property; or (d) dishonestly receives or retains any such property in respect of which any of the offences under clauses (a), (b) and (c) has been committed, knowing or having reasons to believe the commission of such offences; or (e) wilfully destroys or injures any property of the Government entrusted to him; or ----- (f) does any other thing with intent to defraud, or to cause wrongful gain to one person or wrongful loss to another person, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to ten years or such less punishment as is in this Act mentioned. **34. Extortion and exaction.–Any person subject to this Act who commits any of the following** offences, namely:– (a) commits extortion; or (b) without proper authority exacts from any person money, provisions or service, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to ten years or such less punishment as is in this Act mentioned. **35. Making away with equipment.–Any person subject to this Act who commits any of the** following offences, namely:– (a) makes away with, or is concerned in making away with, any arms, ammunition, equipment, instruments, tools, clothing or any other thing being the property of the Government issued to him for his use or entrusted to him; or (b) loses by neglect anything mentioned in clause (a); or (c) sells, pawns, destroys or defaces any medal or decoration granted to him, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend, in the case of the offences specified in clause (a), to ten years, and in the case of the offences, specified in the other clauses, to five years, or in either case such less punishment as is in this Act mentioned. **36. Injury to property, etc.–Any person subject to this Act who commits any of the following** offences, namely:– (a) destroys or injures any property mentioned in clause (a) of section35,or any property belonging to any Force mess, band or institution, or to any person subject to this Act; or (b) commits any act which causes damage to, or destruction of, any property of the Government by fire; or (c) kills, injures, makes away with, ill-treats or loses, any animal entrusted to him, shall, on conviction by a Force Court, be liable, if he has acted wilfully, to suffer imprisonment for a term which may extend to tenyears or such less punishment as is in this Act mentioned; and if he has acted without reasonable excuse, to suffer imprisonment for a term which may extend to five years or such less punishment as is in this Act mentioned. **37. False accusations.–Any person subject to this Act who commits any of the following offences,** namely:– (a) makes a false accusation against any person subject to this Act, knowing or having reason to believe such accusation to be false; or (b) in making a complaint against any person subject to this Act makes any statement affecting the character of such person, knowing or having reason to believe such statement to be false, or knowingly and wilfully suppresses any material facts, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to three years or such less punishment as is in this Act mentioned. **38. Falsifying official documents and false declarations.–Any person subject to this Act who** commits any of the following offences, namely:– (a) in any report, return, list, certificate, book or other document made or signed by him, or of the contents of which it is his duty to ascertain the accuracy, knowingly makes, or is privy to the making of, any false or fraudulent statement; or ----- (b) in any document of the description mentioned in clause (a)knowingly makes, or is privy to the making of, any omission, with intent to defraud; or (c) knowingly and with intent to injure any person, or knowingly and with intent to defraud, suppresses, defaces, alters or makes away with any document which it is his duty to preserve or produce; or (d) where it is his official duty to make a declaration respecting any matter knowingly makes a false declaration; or (e) obtains for himself, or for any other person, any pension, allowance or other advantage or privilege by a statement which is false, and which he either knows or believes to be false or does not believe to be true, or by making or using a false entry in any book or record, or by making any document containing a false statement, or by omitting to make a true entry or document containing a true statement, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to ten years or such less punishment as is in this Act mentioned. **39. Signing in blank and failure to report.–Any person subject to this Act who commits any of the** following offences, namely:– (a) when signing any document relating to pay, arms, ammunitions, equipment, clothing, supplies or stores, or any property of the Government fraudulently leaves in blank any material part for which his signature is a voucher; or (b) refuses or by culpable neglect omits to make or send a report or return which it is his duty to make or send, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to three years or such less punishment as is in this Act mentioned. **40. Offences relating to Force Court.–Any person subject to this Act who commits any of the** following offences, namely:– (a) being duly summoned or ordered to attend as a witness before a Force Court, wilfully or without reasonable excuse, makes default in attending; or (b) refuses to take an oath or make an affirmation legally required by a Force Court to be taken or made; or (c) refuses to produce or deliver any document in his power or control legally required by a Force Court to be produced or delivered by him; or (d) refuses, when a witness, to answer any question which he is by law bound to answer; and (e) is guilty of contempt of the Force Court by using insulting or threatening language, or by causing any interruption or disturbance in the proceedings of such court, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to three years or such less punishment as is in this Act mentioned. **41. False evidence.–Any person subject to this Act who, having been duly sworn or affirmed before** any Force Court or other court competent under this Act to administer an oath or affirmation, makes any statement which is false, and which he either knows or believes to be false or does not believe to be true, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to seven years or such less punishment as is in this Act mentioned. **42. Unlawful detention of pay.–Any officer, subordinate officer or an under-officer who, having** received the pay of a person subject to this Act unlawfully detains or refuses to pay the same when due, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to five years or such less punishment as is in this Act mentioned. **43. Violation of good order and discipline.–Any person subject to this Act who is guilty of any act** or omission which, though not specified in this Act, is prejudicial to good order and discipline of the Force shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend ----- to seven years or such less punishment as is in this Act mentioned. **44. Miscellaneous offences.–Any person subject to this Act who commits any of the following** offences, namely:– (a) being in command at any post or on the march, and receiving a complaint that any one under his command has beaten or otherwise maltreated or oppressed any person, or has disturbed any fair or market, or committed any riot or trespass, fails to have due reparation made to the injured person or to report the case to the proper authority; or (b) by defiling any place of worship, or otherwise, intentionally insults the religion, or wounds the religious feelings of, any person; or (c) attempts to commit suicide, and in such attempt does any act towards the commission of such offence; or (d) being below the rank of subordinate officer, when off duty, appears without proper authority, in or about camp, or in or about, or when going to, or returning from, any town or bazaar, carrying a rifle, sword or other offensive weapon; or (e) directly or indirectly accepts or obtains, or agrees to accept, or attempts to obtain, for himself or for any other person, any gratification as a motive or reward for procuring the enrolment of any person, or leave of absence, promotion or any other advantage or indulgence for any person in the service; or (f) commits any offence against the property or person of any inhabitant of, or resident in, the country in which he is serving, shall, on conviction by a Force Court, be liable to suffer imprisonment for a term which may extend to seven years or such less punishment as is in this Act mentioned. **45. Attempt.–Any person subject to this Act who attempts to commit any of the offences specified in** sections 16 to 44 (both inclusive) and in such attempt does any act towards the commission of the offence shall, on conviction by a Force Court, where no express provision is made by this Act for the punishment of such attempt, be liable,– (a) if the offence attempted to be committed is punishable with death, to suffer imprisonment for a term which may extend to fourteen years or such less punishment as is in this Act mentioned; and (b) if the offence attempted to be committed is punishable with imprisonment, to suffer imprisonment for a term which may extend to one-half of the longest term provided for that offence or such less punishment as is in this Act mentioned. **46. Abetment of offences that have been committed.–Any person subject to this Act who abets the** commission of any of the offences specified in sections 16 to 44 (both inclusive) shall, on conviction by a Force Court, if the Act abetted is committed in consequence of the abetment and no express provision is made by this Act for the punishment of such abetment, be liable to suffer the punishment provided for that offence or such less punishment as is in this Act mentioned. **47. Abetment of offences punishable with death and not committed.–Any person subject to this** Act who abets the commission of any of the offences punishable with death, under sections 16, 19 and sub-section(1) of section 20 shall, on conviction by a Force Court, if that offence be not committed in consequence of the abetment, and no express provision is made by this Act for the punishment of such abetment, be liable to suffer imprisonment for a term which may extend to fourteen years or such less punishment as is in this Act mentioned. **48. Abetment of offences punishable with imprisonment and not committed.–Any person subject** to this Act who abets the commission of any of the offences specified in sections 16 to 44 (both inclusive) and punishable with imprisonment shall, on conviction by a Force Court, if that offence be not committed in consequence of the abetment, and no express provision is made by this Act for the punishment of such abetment, be liable to suffer imprisonment for a term which may extend to one-half of the longest term provided for that offence or such less punishment as is in this Act mentioned. ----- **49. Civil offences.–Subject to the provisions of section 50, any person subject to this Act who at any** place in, or beyond, India commits any civil offence shall be deemed to be guilty of an offence against this Act and, if charged therewith under this section shall be liable to be tried by a Force Court and, on conviction, be punishable as follows, namely:– (a) if the offence is one which would be punishable under any law in force in India with death, he shall be liable to suffer any punishment, assigned for the offence, by the aforesaid law and such less punishment as is in this Act mentioned; and (b) in any other case, he shall be liable to suffer any punishment, assigned for the offence by the law in force in India, or imprisonment for a term which may extend to seven years, or such less punishment as is in this Act mentioned. **50. Civil offences not triable by a Force Court.–A person subject to this Act who commits an** offence of murder or culpable homicide not amounting to murder against, or of rape in relation to, a person not subject to this Act shall not be deemed to be guilty of an offence under this Act and shall not be tried by a Force Court, unless he commits any of the said offences– (a) while on active duty; or (b) at any place outside India; or (c) at any place specified by the Central Government by notification, in this behalf. CHAPTER IV PUNISHMENTS **51. Punishment by Force Courts.–(1) Punishments may be inflicted in respect of offences** committed by persons subject to this Act and convicted by Force Courts according to the scale following, namely:– (a) death; (b) imprisonment which may be for the term of life or any other lesser term but excluding imprisonment for a term not exceeding three months in Force custody; (c) dismissal or removal from the service; (d) compulsory retirement from the service; (e) imprisonment for a term not exceeding three months in Force custody; (f) reduction to the ranks or to a lower rank or grade or a place in the list of their rank in the case of an under-officer; (g) reduction to next lower rank in case of an officer or subordinate officer: Provided that no officer shall be reduced to a rank lower than the one to which he was initially appointed; (h) forfeiture of seniority of rank and forfeiture of all or any part of the service for the purpose of promotion; (i) forfeiture of service for the purpose of increased pay or pension; (j) fine, in respect of civil offences; (k) severe reprimand or reprimand except in the case of persons below the rank of an underofficer; (l) forfeiture of pay and allowances for a period not exceeding three months for an offence committed on active duty; (m) forfeiture in the case of person sentenced to dismissal from the service of all arrears of pay and allowances and other public money due to him at the time of such dismissal; (n) stoppage of pay and allowances until any proved loss or damage occasioned by the offence for which he is convicted is made good. ----- (2) Each of the punishments specified in sub-section (1) shall be deemed to be inferior in degree to every punishment preceding it in the above scale. **52. Alternative punishments by Force Courts.–Subject to the provisions of this Act, a Force Court** may, on convicting a person subject to this Act of any of the offences specified in sections 16 to 48 (both inclusive) award either the particular punishment with which the offence is stated in the said sections to be punishable or, in lieu thereof, any one of the punishments lower in the scale set out in section 51 regard being had to the nature and degree of the offence. **53. Combination of punishments.–A Force Court may award in addition to, or without, any other** punishment, the punishment specified in clause (c) of sub-section (1) of section 51 or any one or more of the punishments specified in clauses (f) to (n) of that sub-section. **54. Retention in the Force of a person convicted on active duty.–When on active duty an enrolled** person has been sentenced by a Force Court to imprisonment whether combined with dismissal or not, the prescribed officer may direct that such person may be retained to serve in the ranks, and such service shall be reckoned as part of his term of imprisonment. **55. Punishments otherwise than by Force Courts.–Punishments may also be inflicted in respect of** offences committed by persons subject to this Act without the intervention of a Force Court in the manner stated in sections 56, 58 and 59. **56. Minor punishments.–(1) Subject to the provisions of section 57, a commanding officer of and** above the rank of Commandant may, in the prescribed manner, proceed against a person subject to this Act, other than an officer or a subordinate officer, who is charged with an offence under this Act and award such person, to the extent prescribed, one or more of the following punishments, namely:– (a) imprisonment in Force custody up to twenty-eight days; (b) detention up to twenty-eight days; (c) confinement to the lines up to twenty-eight days; (d) extra guards or duties; (e) deprivation of any special position or special emoluments or any acting rank; (f) severe reprimand or reprimand; (g) fine up to fourteen days' pay in any one month; (h) deductions from his pay and allowances of any sum required to make good any loss or damage occasioned by the offence for which he is punished. (2) If any unit, training centre or other establishment of the Force is being temporarily commanded by an officer of the rank of Second-in Command or Deputy Commandant, such officer shall have full powers of a commanding officer specified in sub-section (1). (3) Subject to the provisions of section 57, a Deputy Commandant or an Assistant Commandant, commanding a company or a detachment or an outpost, shall have the power to proceed against a person subject to this Act, other than an officer or a subordinate officer, who is charged with an offence under this Act and award such person to the extent prescribed, one or more of the punishments specified in clauses(a) to (d) and (h) of sub-section (1) provided that the maximum limit of punishment awarded under each of the clauses (a), (b) and (c) shall not exceed fourteen days. (4) A subordinate officer not below the rank of Sub-Inspector who is commanding a detachment or an outpost shall have the powers to proceed against a person subject to this Act, other than a subordinate officer or an under-officer, who is charged with an offence under this Act and award such person to the extent prescribed, one or more of the punishments specified under clauses (c) and (d) of sub-section (1) provided that the maximum limit of punishment awarded under clause (c) shall not exceed fourteen days. **57. Limit of punishments under section 56.–(1) In the case of an award of two or more of the** punishments specified in clauses (a),(b),(c)and (d) of sub-section (1) of section 56, the punishments specified in clause (c) or clause (d) shall take effect only at the end of the punishment specified in clause (a) or clause (b). ----- (2) When two or more of the punishments specified in clauses (a), (b) and (c) of sub-section (1) of section 56 are awarded to a person conjointly, or when already undergoing one or more of the said punishments, the whole extent of the punishments shall not exceed in the aggregate forty-two days. (3) The punishments specified in clauses (a), (b) and (c) of subsection (1) of section 56 shall not be awarded to any person who is of the rank of an under-officer or was, at the time of committing the offence for which he is punished, of such rank. (4) The punishment specified in clause (f) of sub-section (1) of section 56 shall not be awarded to any person below the rank of an under-officer. **58. Punishment of persons of or below the rank of Commandant by Inspector-General and** **others.–(1) An officer not below the rank of Inspector-General may, in the prescribed manner, proceed** against an officer of or below the rank of Commandant who is charged with an offence under this Act and award one or more of the following punishments, namely:– (a) forfeiture of seniority, or in the case of any of them whose promotion depends upon length of service, forfeiture of service for the purpose of promotion for a period not exceeding one year, but subject to the right of the accused previous to the award to elect to be tried by a Force Court; (b) severe reprimand or reprimand; (c) deduction from pay and allowances of any sum required to make good any proved loss or damage occasioned by the offence of which he is convicted. (2) An officer not below the rank of Additional Deputy Inspector-General may, in the prescribed manner, proceed against a person of or below the rank of Subedar-Major or Inspector who is charged with an offence under this Act and award one or more of the following punishments, namely:– (a) forfeiture of seniority, or in the case of any of them whose promotion depends upon the length of service, forfeiture of service for the purpose of promotion for a period not exceeding one year, but subject to the right of the accused previous to the award to elect to be tried by a Force Court; (b) severe reprimand or reprimand; (c) deduction from pay and allowances of any sum required to make good any proved loss or damage occasioned by the offence of which he is convicted. (3) An officer not below the rank of Commandant may, in the prescribed manner, proceed against a person of or below the rank of Subedar-Major or Inspector who is charged with an offence under this Act and award any one or both of the following punishments, namely:– (a) severe reprimand or reprimand; (b) deduction from pay and allowances of any sum required to make good any proved loss or damage occasioned by the offence of which he is convicted. **59. Cancellation, variation or remittance of sentence.–(1) In every case in which punishment has** been awarded under section 58, certified true copies of the proceedings shall be forwarded, in the prescribed manner, by the officer awarding the punishment to the prescribed superior authority who may, if the punishment awarded appears to him to be illegal, unjust or excessive, cancel, vary or remit the punishment and make such other direction as may be appropriate in the circumstances of the case. (2) For the purpose of sub-section (1), a "superior authority" means,– (a) any officer superior in command to such officer who has awarded the punishment; (b) in the case of punishment awarded by Director-General, the Central Government. **60. Collective fines.–(1) Whenever any weapon or part of weapon or ammunition, forming part of the** equipment of a unit, is lost or stolen, a commanding officer not below the rank of the Commandant of that unit may, after making such enquiry as he thinks fit, impose such collective fine as may be prescribed, upon the subordinate officers, under-officers and men of such unit, or upon so many of them as, in his judgment, should be held responsible for such loss or theft. (2) Such fine shall be assessed as a percentage of the pay of the individuals on whom it falls. ----- CHAPTER V DEDUCTIONS FROM PAY AND ALLOWANCES **61. Deductions from pay and allowances of persons subject to this Act.–(1) The following** deductions may be made from the pay and allowances of an officer, namely:– (a) all pay and allowances due to an officer for every day he absents himself without leave, unless a satisfactory explanation has been given to, and accepted by, the Inspector-General under whom he is for the time being serving; (b) all pay and allowances for every day while he is in custody on a charge for an offence for which he is afterwards convicted by a criminal court or Force Court or by an officer exercising authority under section 58; (c) any sum required to make good the pay of any person subject to this Act which he has unlawfully retained or unlawfully refused to pay; (d) any sum required to make good such compensation for any expenses, loss, damage or destruction occasioned by the commission of an offence as may be determined by the Force Court by whom he is convicted of such offence or by an officer exercising authority under section 58; (e) all pay and allowances ordered by Force Court; (f) any sum required to be paid as fine awarded by a criminal court or a Force Court; (g) any sum required to make good any loss, damage or destruction of public or Force property which, after due investigation, appears to the Inspector-General under whom the officer is for the time being serving, to have been occasioned by the wrongful act or negligence on the part of the officer; (h) all pay and allowances forfeited by order of the Central Government if the officer is found by a court of inquiry constituted by the Director-General in this behalf, to have deserted to the enemy, or while in enemy hands, to have served with, or under the orders of, the enemy, or in any manner to have aided the enemy, or to have allowed himself to be taken prisoner by the enemy through want of due precaution or through disobedience of orders or wilful neglect of duty, or having been taken prisoner by the enemy, to have failed to rejoin his service when it was possible to do so; (i) any sum required by order of the Central Government to be paid for the maintenance of his wife or his legitimate or illegitimate child or step child or towards the cost of any relief given by the said Government to the said wife or child. (2) Subject to the provisions of section 63, the following deductions may be made from the pay and allowances of a person subject to this Act, other than an officer, namely:– (a) all pay and allowances for every day of absence either on desertion or without leave or as a prisoner of war unless a satisfactory explanation has been given and accepted by his commanding officer and for every day of imprisonment awarded by a criminal court, Force Court or an officer exercising authority under section 56; (b) all pay and allowances for every day while he is in custody on a charge for an offence of which he is afterwards convicted by a criminal court or Force Court or on a charge of absence without leave for which he is afterwards awarded imprisonment by an officer exercising authority under section 56; (c) all pay and allowances for every day on which he is in hospital on account of sickness certified by the medical officer attending on him to have been caused by an offence under this Act committed by him; (d) all pay and allowances for every day on which he is in hospital on account of sickness certified by the medical officer attending on him to have been caused by his own misconduct or imprudence, such sum as may be specified by the order of the Director-General; (e) all pay and allowances ordered by Force Court or by an officer exercising authority under any of the sections 56 and 58 to be forfeited or stopped; ----- (f) all pay and allowances for every day between his being recovered from the enemy and his dismissal from the service in consequence of his conduct when being taken prisoner by, or while in the hands of the enemy; (g) any sum required to make good such compensation for any expenses, loss, damage or destruction caused by him to the Central Government or to any building or property or any private fund of the Force as may be awarded by his commanding officer; (h) any sum required to pay a fine awarded by a criminal court, Force Court exercising jurisdiction under section 49 or an officer exercising authority under any of the sections 56 and 60; (i) any sum required by order of the Central Government or any prescribed officer to be paid for the maintenance of his wife, or his legitimate or illegitimate child or step child or towards the cost of any relief given by the said Government to the said wife or child. (3) For computation of time of absence or custody under this section,– (a) no person shall be treated as absent or in custody for a day unless the absence or custody has lasted, whether wholly in one day, or partly in one day and partly in another for six consecutive hours or upwards; (b) any absence or custody for less than a day may be reckoned as absence or custody for a day, if such absence or custody prevented the absentee from fulfilling any duty as member of the Force which was thereby thrown upon some other person; (c) absence or custody for twelve consecutive hours or upwards may be reckoned as absence or custody for the whole of each day during any portion of which the person was absent or in custody; (d) a period of absence, or imprisonment, which commences before, and ends after, midnight may be reckoned as a day. **62. Pay and allowances during trial.–In the case of any person subject to this Act who is in custody** or under suspension from duty on a charge for an offence, the prescribed officer may direct that the whole or any part of the pay and allowances of such person shall be withheld, pending the result of his trial on the charge against him, in order to give effect to the provisions of clause (b) of sub-sections(1) and (2) of section 61. **63. Limit of certain deductions.–The total deductions from the pay and allowances of a person made** under clauses (e) and (g) to (i) of sub-section (2) of section 61 shall not, except where he is sentenced to dismissal or removal, exceed in any one month one-half of his pay and allowances for that month. **64. Deduction from public money due to a person.–Any sum authorised by this Act to be deducted** from the pay and allowances of any person may, without prejudice to any other mode of recovering the same, be deducted from any public money due to him other than a pension. **65. Pay and allowances of prisoner of war during inquiry into his conduct.–Where the conduct of** any person subject to this Act when being taken prisoner by, or while in the hands of, the enemy, is to be inquired into under this Act or any other law, the Director-General or any officer authorised by him may order that the whole or any part of the pay and allowances of such person shall be withheld pending the result of such inquiry. **66. Remission of deductions.–Any deduction from pay and allowances authorised by this Act may** be remitted in such manner and to such extent, and by such authority, as may from time to time be prescribed. **67. Provision for dependants of prisoner of war from his remitted deductions and pay and** **allowances.–(1) In the case of all persons subject to this Act, being prisoners of war, whose pay and** allowances have been forfeited under clause (h) of sub-section (1) or clause (a) of sub-section (2) of section 61 but in respect of whom a remission has been made under section 66, it shall be lawful for the Central Government or the Director-General, when so authorised by the Central Government, to make provisions in respect of pay and allowances for any dependants of such persons and any such remission shall in that case be deemed to apply only to the balance thereafter remaining of such pay and allowances. ----- (2) It shall be lawful for the Central Government or the Director General, when so authorised by the Central Government, to make provisions for any dependants of any person subject to this Act who is a prisoner of war, or is missing, in respect of his pay and allowances. **68. Period during which a person is deemed to be a prisoner of war.–For the purposes of section** 67, a person shall be deemed to continue to be a prisoner of war until the conclusion of any inquiry into his conduct such as is referred to in section 65 and if he is dismissed from the service in consequence of such conduct, until the date of such dismissal. CHAPTER VI ARREST AND PROCEEDINGS BEFORE TRIAL **69. Custody of offenders.–(1) Any person subject to this Act who is charged with any offence may** be taken into Force custody under the order of any superior officer. (2) Notwithstanding anything contained in sub-section (1), an officer may order into Force custody any other officer, though such other officer may be of a higher rank, if he engages in a quarrel, affray or disorder. **70. Duty of commanding officer in regard to detention.–(1) It shall be the duty of every** commanding officer to take care that a person under his command when charged with an offence is not detained in custody for more than forty-eight hours after the committal of such person into custody is reported to him, without the charge being investigated, unless investigation in the prescribed procedure, within that period seems to him to be impracticable having regard to the public service. (2) The case of every person being detained in custody beyond a period of forty-eight hours, and the reasons there for, shall be reported by the commanding officer to the next higher officer or such other officer to whom an application may be made to convene a Force Court for the trial of the person charged. (3) In reckoning the period of forty-eight hours specified in sub-section (1), Sundays and other public holidays shall be excluded. (4) The manner in which and the period for which any person subject to this Act may be taken into and detained in Force custody, pending the trial by any competent authority for any offence committed by him, shall be in such manner as may be prescribed. **71. Interval between committal and trial.–In every case where any such person as is mentioned in** section 69 and as is not on active duty, remains in such custody for a longer period than eight days without a Force Court for his trial being convened, a special report giving reasons for the delay shall be made by his commanding officer in the manner prescribed, and a similar report shall be forwarded at intervals of every eight days until a Force Court is convened or such person is released from custody. **72. Arrest by civil authorities.–Whenever any person, subject to this Act, who is accused of an** offence under this Act, is within the jurisdiction of any magistrate or police officer, such magistrate or police officer shall aid in the apprehension and delivery to Force custody of such person upon receipt of a written application to that effect signed by his commanding officer or an officer authorised by the commanding officer in that behalf. **73. Capture of deserters.–(1) Whenever any person subject to this Act deserts, the commanding** officer of the unit to which he belongs or is attached, shall give information of the desertion to such civil authorities as, in his opinion, may be able to afford assistance towards the capture of the deserter; and such authorities shall thereupon take steps for the apprehension of the said deserter in like manner as if he were a person for whose apprehension a warrant had been issued by a magistrate, and shall deliver the deserter, when apprehended, into Force custody. (2) Any police officer may arrest without warrant any person reasonably believed to be subject to this Act, and to be a deserter or to be travelling without authority, and shall bring him without delay before the nearest magistrate, to be dealt with according to law. **74. Inquiry into absence without leave.–(1) When any person subject to this Act has been absent** from duty without due authority for a period of thirty days, a court of inquiry shall, as soon as practicable, be appointed by such authority and in such manner as may be prescribed; and such court shall, on oath or affirmation administered in the prescribed manner, inquire in respect of the absence of the person, and the ----- deficiency, if any, in the property of the Government entrusted to his care, or in any arms, ammunition, equipment, instruments, clothing or accessories; and if satisfied of the fact of such absence without due authority or other sufficient cause, the court shall declare such absence and the period thereof and the said deficiency, if any, and the commanding officer of the unit to which the person belongs or is attached, shall make a record thereof in the prescribed manner. (2) If the person declared absent does not afterwards surrender or is not apprehended, he shall, for the purposes of this Act, be deemed to be a deserter. **75. Force Police Officers.–(1) The Director-General or any prescribed officer may appoint persons** (in this Act referred to as Force Police) for discharging the functions specified in sub-sections (2) and (3). (2) The duties of a person appointed under sub-section (1) are to take charge of persons confined for any offence, to preserve good order and discipline and to prevent breaches of the same by persons serving in, or attached to the Force. (3) Notwithstanding anything contained in section 69, a person appointed under sub-section (1) may, at any time, arrest and detain for trial any person subject to this Act who commits, or is charged with, an offence, and may also carry into effect any punishment to be inflicted in pursuance of a sentence awarded by a Force Court or by an officer exercising authority under section 56 but shall not inflict any punishment on his own authority: Provided that no officer shall be so arrested or detained otherwise than on the order of another officer. CHAPTER VII FORCE COURTS **76. Kinds of Force Courts.–For the purposes of this Act, there shall be three kinds of Force Courts,** namely:– (a) General Force Courts; (b) Petty Force Courts; and (c) Summary Force Courts, which shall be convened in the manner prescribed. **77. Power to convene a General Force Court.–A General Force Court may be convened by the** Central Government or the Director- General or by any officer empowered in this behalf by warrant of the Director-General. **78. Power to convene a Petty Force Court.–A Petty Force Court may be convened by an officer** having power to convene a General Force Court or by an officer empowered in this behalf by warrant of any such officer. **79. Warrants issued under sections 77 and 78.–A warrant issued under section 77 or section 78** may contain such restrictions, reservations or conditions as the officer issuing it may think fit. **80. Composition of a General Force Court.–A General Force Court shall consist of not less than** five officers. **81. Composition of a Petty Force Court.–A Petty Force Court shall consist of not less than three** officers. **82. Summary Force Court.–(1) A Summary Force Court may be held by the commanding officer of** any unit and he alone shall constitute the Court. (2) The proceedings shall be attended throughout by two other persons who shall be officers or subordinate officers or one of either, and who shall not as such, be sworn or affirmed. **83. Dissolution of a Force Court.–(1) If a Force Court after the commencement of a trial is reduced** below the minimum number of officers required by this Act, it shall be dissolved. ----- (2) If, on account of the illness of the concerned Judge Attorney or, as the case may be, Deputy Judge Attorney-General or Additional Judge Attorney-General or of the accused before the finding, it is impossible to continue the trial, the Force Court shall be dissolved. (3) The authority or officer who convened a Force Court may dissolve the same if it appears to him that the exigencies of the service or necessities of discipline render it impossible or inexpedient to continue the said Force Court. (4) Where a Force Court is dissolved under this section, the accused may be tried again. **84. Powers of a General Force Court. –A General Force Court shall have the power to try any** person subject to this Act for any offence punishable there under and to pass any sentence authorised thereby. **85. Powers of a Petty Force Court.–A Petty Force Court shall have the power to try any person** subject to this Act other than an officer or a subordinate officer for any offence made punishable there under and to pass any sentence authorised by this Act other than a sentence of death or imprisonment for a term exceeding two years. **86. Powers of a Summary Force Court.–(1) Subject to the provisions of sub-section (2), a Summary** Force Court may try any offence punishable under this Act. (2) When there is no grave reason for immediate action and reference can without detriment to discipline be made to the officer empowered to convene a Petty Force Court for the trial of the alleged offender, an officer holding a Summary Force Court shall not try without such reference any offence punishable under any of the sections 16, 19 and 49, or any offender against the officer holding the Court. (3) A Summary Force Court may try any person subject to this Act and under the command of the officer holding the Court, except an officer or a subordinate officer. (4) A Summary Force Court may pass any sentence which may be passed under this Act, except the sentence of death or of imprisonment for a term exceeding the limit specified in sub-section (5). (5) The limit referred to in sub-section (4) shall be,– (a) one year, if the officer holding the Force Court holds the rank not below that of a Commandant; (b) three months, in any other case. **87. Prohibition of second trial.–(1) When any person, subject to this Act has been acquitted or** convicted of an offence by a Force Court or by a criminal court or has been dealt with under section 56 or section 58, he shall not be liable to be tried again for the same offence by a Force Court or dealt with under the said sections. (2) When any person, subject to this Act, has been acquitted or convicted of an offence by a Force Court or has been dealt with under section 56 or section 58, he shall not be liable to be tried again by a criminal court for the same offence or on the same facts. **88. Period of limitation for trial.–(1) Except as provided by sub-section (2), no trial by a Force** Court of any person subject to this Act for any offence shall be commenced after the expiration of a period of three years from the date of such offence. (2) The provisions of sub-section (1) shall not apply to a trial for an offence of desertion or for any of the offences mentioned in section 19. (3) In the computation of the period of time mentioned in sub-section (1), anytime spent by such person in evading arrest after the commission of the offence, shall be excluded. **89. Trial, etc., of offender who ceases to be subject to this Act.–(1) Where an offence under this** Act had been committed by any person while subject to this Act, and he has ceased to be so subject, he may be taken into and kept in Force custody and tried and punished for such offence as if he continued to be so subject. (2) No such person shall be tried for an offence, unless his trial commences within six months after he had ceased to be subject to this Act: ----- Provided that nothing contained in this sub-section shall apply to the trial of any such person for an offence of desertion or for any of the offences mentioned in section 19 or shall affect the jurisdiction of a criminal court to try any offence triable by such court as well as by a Force Court. **90. Application of Act during term of sentence.–(1) When a person subject to this Act is sentenced** by a Force Court to imprisonment, this Act shall apply to him during the term of his sentence, though he is dismissed from the Force, or has otherwise ceased to be subject to this Act, and he may be kept, removed, imprisoned and punished as if he continued to be subject to this Act. (2) When a person subject to this Act is sentenced by a Force Court to death, this Act shall apply to him till the sentence is carried out. **91. Place of trial, etc.–(1) Any person subject to this Act who commits any offence under this Act** may be tried and punished for such offence at any place. (2) The persons by whom an accused may be defended in a trial and appearance of such persons thereat may be as prescribed. **92. Choice between criminal court and Force Court.–When a criminal court and a Force Court** have each jurisdiction in respect of an offence, it shall be in the discretion of the Director-General, Additional Director-General or the Inspector-General or the Deputy Inspector-General or the Additional Deputy Inspector-General within whose command the accused person is serving or such other officer as may be prescribed, to decide before which court the proceedings shall be instituted, and if that officer decides that they shall be instituted before a Force Court, then he may direct that the accused person shall be detained in Force custody. **93. Power of criminal court to require delivery of offender.–(1) When a criminal court having** jurisdiction is of opinion that proceedings shall be instituted before itself in respect of any alleged offence, it may, by written notice, require the officer referred to in section 92 at his option, either to deliver over the offender to the nearest magistrate to be proceeded against according to law, or to postpone proceedings, pending a reference to the Central Government. (2) In every such case the said officer shall either deliver over the offender in compliance with the requisition, or shall forthwith refer the question as to the court before which the proceedings are to be instituted, for the determination of the Central Government whose order upon such reference shall be final. CHAPTER VIII PROCEDUREOF FORCE COURTS **94. Presiding officer.–At every General Force Court or Petty Force Court, the senior member shall** be the presiding officer. **95. Judge Attorneys.–(1) Every General Force Court shall, and every Petty Force Court may be** attended by a Judge Attorney or a Deputy Judge Attorney-General or an Additional Judge AttorneyGeneral, or, if no such officer is available, an officer approved by the Judge Attorney- General or by any officer authorised in this behalf by the Judge Attorney-General. (2) The recruitment and conditions of service of Judge Attorney- General, Additional Judge AttorneyGeneral, Deputy Judge Attorney-General and Judge Attorney shall be such as may be prescribed. **96. Objections.–(1) At all trials by a General Force Court or by a Petty Force Court, as soon as the** Court is assembled, the names of the presiding officer and members shall be read over to the accused, who shall thereupon be asked whether he objects to being tried by any officer sitting on the Court. (2) If the accused objects to such officer, his objection and also the reply thereto of the officer objected to shall be heard and recorded, and the remaining officers of the Court shall, in the absence of the challenged officer decide on the objection. (3) If the objection is allowed by one-half or more of the votes of the officers entitled to vote, the objection shall be allowed, and the member objected to shall retire, and his vacancy maybe filled in the prescribed manner, by another officer subject to the same right of the accused to object. ----- (4) When no objection is made, or when an objection has been made and disallowed, or the vacancy of an officer has been filled by another officer under sub-section (3) to which no objection is made or allowed, the Court shall proceed with the trial. **97. Oath of members, Judge Attorneys and witnesses.–(1) An oath or affirmation in the prescribed** manner shall be administered to every member of the Force Court and to the Judge Attorney, or, as the case may be, the Deputy Judge Attorney-General or the Additional Judge Attorney-General or the officer approved under section 95, before the commencement of the trial. (2) Every person giving evidence before a Force Court shall be examined after being duly sworn or affirmed in the prescribed form. (3) The provisions of sub-section (2) shall not apply where the witness is a child under twelve years of age and the Force Court is of opinion that though the witness understands the duty of speaking the truth, he does not understand the nature of an oath or affirmation. **98. Voting by members.–(1) Subject to the provisions of sub-sections (2) and (3), every decision of a** Force Court shall be passed by an absolute majority of votes; and where there is an equality of votes on either the finding or the sentence, the decision shall be in favour of the accused. (2) No sentence of death shall be passed by a General Force Court without the concurrence of at least two-thirds of the members of the Court. (3) In matters other than an objection or the finding or sentence, the presiding officer shall have a casting vote. **99. General rule as to evidence.–The Indian Evidence Act, 1872 (1 of 1872), shall, subject to the** provisions of this Act, apply to all proceedings before a Force Court. **100. Judicial notice.–A Force Court may take judicial notice of any matter within the general** knowledge of the members as officers of the Force. **101. Summoning of witnesses.–(1) The convening officer or the presiding officer of a Force Court or** the Judge Attorney or, as the case may be, the Deputy Judge Attorney-General or the Additional Judge Attorney-General or the officer approved under section 95 or the commanding officer of the accused person may, by summons under his hand, require the attendance, at a time and place to be mentioned in the summons, of any person either to give evidence or to produce any document or other thing. (2) In the case of a witness who is subject to this Act or any other Act relating to the armed forces of the Union, the summons shall be sent to his commanding officer and such officer shall serve it upon him accordingly. (3) In the case of any other witness, the summons shall be sent to the magistrate within whose jurisdiction he may be, or resides, and such magistrate shall give effect to the summons as if the witness were required in the court of such a magistrate. (4) When a witness is required to produce any particular or other thing in his possession or power, the summons shall describe it with reasonable precision. **102. Documents exempted from production.–(1) Nothing in section101 shall be deemed to affect** the operation of sections 123 and 124 of the Indian Evidence Act, 1872 (1 of 1872), or to apply to any letter, postcard, telegram or other document in the custody of the postal or telegraph authorities. (2) If any document in such custody is, in the opinion of any District Magistrate, Chief Metropolitan Magistrate, Chief Judicial Magistrate, Court of Sessions or High Court wanted for the purpose of any Force Court, such Magistrate or Court may require the postal or telegraph authorities, as the case may be, to deliver such document to such person as such Magistrate or Court may direct. (3) If any such document is, in the opinion of any other magistrate or of any Commissioner of Police or District Superintendent of Police, wanted for any such purpose, he may require the postal or telegraph authorities, as the case may be, to cause such search to be made for, and to detain such document pending the orders of any such District Magistrate, Chief Metropolitan Magistrate, Chief Judicial Magistrate, Court of Sessions or High Court. ----- **103. Commission for examination of witnesses.–(1) Whenever, in the course of a trial by a Force** Court, it appears to the Court that the examination of a witness is necessary for the ends of justice, and that the attendance of such witness cannot be procured without an amount of delay, expense or inconvenience which, in the circumstances of the case, would be unreasonable, such Court may address the Judge Attorney-General in order that a commission to take the evidence of such witness may be issued. (2) The Judge Attorney-General may then, if he thinks necessary, issue a commission to any Metropolitan Magistrate or Judicial Magistrate of the first class, within the local limits of whose jurisdiction such witness resides, to take the evidence of such witness. (3) The Magistrate to whom the commission is issued, or, if he is the Chief Metropolitan Magistrate, or Chief Judicial Magistrate, or such Metropolitan Magistrate, or Judicial Magistrate, as he appoints in this behalf, shall summon the witness before him or proceed to the place where the witness is, and shall take down his evidence in the same manner, and may for this purpose exercise the same powers, as in the trials of warrant-cases under the Code of Criminal Procedure, 1973 (2 of 1974). (4) When the witness resides in a tribal area or in any place outside India, the commission may be issued in the manner specified in Chapter XXIII of the Code of Criminal Procedure, 1973 (2 of 1974). **104. Examination of a witness on commission.–(1) The prosecutor and the accused person in any** case in which a commission is issued under section 103 may respectively forward any interrogatories in writing which the court may think relevant to the issue, and the Magistrate executing the commission shall examine the witness upon such interrogatories. (2) The prosecutor and the accused person may appear before such Magistrate by counsel, or, except in the case of an accused person in custody, in person, and may examine, cross-examine and re-examine, as the case may be, the said witness. (3) After a commission issued under section 103 has been duly executed, it shall be returned, together with the deposition of the witness examined there under to the Judge Attorney-General. (4) On receipt of a commission, and deposition returned under sub-section (3), the Judge AttorneyGeneral shall forward the same to the Court at whose instance the commission was issued or, if such Court has been dissolved, to any other Court convened for the trial of the accused person; and the commission, the return thereto and the deposition shall be open to inspection by the prosecutor and the accused person, and may, subject to all just exceptions, be read in evidence in the case by either the prosecutor or the accused, and shall form part of the proceedings of the Court. (5) In every case in which a commission is issued under section 103, the trial may be adjourned for specified time reasonably sufficient for the execution and return of the commission. **105. Conviction for offences not charged.–A person charged before a Force Court with––** (a) desertion may be found guilty of attempting to desert or of being absent without leave; (b) attempting to desert may be found guilty of being absent without leave; (c) using criminal force may be found guilty of assault; (d) using threatening language may be found guilty of using insubordinate language; (e) any one of the offences specified in clauses (a),(b),(c)and(d)of section 33 may be found guilty of any other of these offences with which he might have been charged; (f) an offence punishable under section 49 may be found guilty of any other offence of which he might have been found guilty, if the provisions of the Code of Criminal Procedure, 1973 (2 of 1974) were applicable. (g) any offence under this Act may, on failure of proof of an offence having been committed in circumstances involving a more severe punishment, be found guilty of the same offence as having been committed in circumstances involving a less severe punishment; (h) any offence under this Act may be found guilty of having attempted or abetted the commission of that offence, although the attempt or abetment is not separately charged. ----- **106. Presumption as to signatures.–In any proceeding under this Act, any application, certificate,** warrant, reply or other document purporting to be signed by an officer in the service of the Government shall, on production, be presumed to have been duly signed by the person by whom and in the character in which it purports to have been signed, until the contrary is shown. **107. Enrolment paper.–(1) Any enrolment paper purporting to be signed by an enrolling officer** shall, in proceedings under this Act, be evidence of the person enrolling having given the answers to questions which he is therein represented as having given. (2) The enrolment of such person may be proved by the production of the original or a copy of this enrolment paper purporting to be certified to be a true copy by the office having the custody of the enrolment paper or service record. **108. Presumption as to certain documents.–(1) A letter, return or other document respecting the** service of any person in, or the dismissal, removal or discharge of any person from, any unit of the Force, or respecting the circumstances of any person not having served in, or belonged to, any unit of the Force, if purporting to be signed by or on behalf of the Central Government or the Director-General, or by any prescribed officer, shall be evidence of the facts stated in such letter, return or other document. (2) A Force List or Gazette purporting to be published by authority shall be evidence of the status and rank of the officers, subordinate officers therein mentioned, and of any appointment held by them and of the battalion, unit, or branch of the Force to which they belong. (3) Where a record is made in any battalion book in pursuance of this Act or of any rules made there under or otherwise in the discharge of official duties, and purports to be signed by the commanding officer or by the officers whose duty it is to make such record, such record shall be evidence of the facts therein stated. (4) A copy of any record in any office of the Force purporting to be certified to be true copy by the officer having custody of such book shall be evidence of such record. (5) Where any person subject to this Act is being tried on a charge of desertion or of absence without leave, and such person has surrendered himself into the custody of any officer or other person, subject to this Act, or any unit of the Force, or has been apprehended by such officer or person, a certificate purporting to be signed by such officer, or by the commanding officer of the unit to which such person belongs or is attached, as the case may be, and stating the fact, date and place of such surrender or apprehension, and the manner in which he was dressed shall be evidence of the matters so stated. (6) Where any person subject to this Act is being tried on a charge of desertion or of absence without leave and such person has surrendered himself into the custody of, or has been apprehended by, a police officer not below the rank of an officer in charge of a police station, a certificate purporting to be signed by such police officer and stating the fact, date and place of such surrender or apprehension and the manner in which he was dressed shall be evidence of the matters so stated. (7) (a) Any document purporting to be a report under the hand of a Government scientific expert to whom this sub-section applies, upon any matter or thing duly submitted to him for examination or analysis and report in the course of any proceeding under this Act, may be used as evidence in any inquiry, trial or other proceeding under this Act. (b) The Force Court may, if it thinks fit, summon and examine any such expert as to the subject matter of his report. (c) Where any such expert is summoned by a Force Court and he is unable to attend personally, he may, unless the Court has expressly directed him to appear personally, depute an officer who is conversant with the facts of the case to depose in the Court on his behalf. (d) This sub-section applies to the Government scientific expert, for the time being specified in subsection(4) of section 293oftheCodeof Criminal Procedure, 1973 (2 of 1974). **109. Reference by accused to Government officer.–(1) If at any trial for desertion or absence** without leave, over-staying leave or not rejoining when warned for service, the accused person states in his defence any sufficient or reasonable excuse for his unauthorised absence, and refers in support thereof to any officer in the service of the Government, or if it appears that any such officer is likely to prove or ----- disprove the said statement in the defence, the Court shall address such officer and adjourn the proceedings until his reply is received. (2) The written reply of any officer so referred to shall, if signed by him, be received in evidence and have the same effect as if made on oath before the Court. (3) If the Court is dissolved before the receipt of such reply or if the Court omits to comply with the provisions of this section, the convening officer may, at his discretion, annul the proceedings and order a fresh trial. **110. Evidence of previous convictions and general character.–(1) When any person subject to this** Act has been convicted by a Force Court of any offence, such Force Court may inquire into, and receive, and record evidence of any previous convictions of such person, either by a Force Court or by a criminal court, or any previous award of punishment under section 56 or section 58, and may further inquire into and record the general character of such person and such other matters as may be prescribed. (2) Evidence received under this section may be either oral, or in the shape of entries in, or certified extracts from, books of Force Courts or other official record; and it shall not be necessary to give notice before trial to the person tried that evidence as to his previous convictions or character will be received. (3) At a Summary Force Court, the officer holding the trial may, if he thinks fit, record any previous convictions against the offender, his general character, and such other matters as may be prescribed, as of his own knowledge, instead of requiring them to be proved under the foregoing provisions of this section. **111. Lunacy of accused.–(1) Whenever, in the course of a trial by aForce Court, it appears to the** Court that the person charged is by reason of unsoundness of mind incapable of making his defence, or that he committed the act alleged but was by reason of unsoundness of mind incapable of knowing the nature of the act or knowing that it was wrong or contrary to law, the Court shall record a finding accordingly. (2) The presiding officer of the Court, or, in the case of a Summary Force Court, the officer holding the trial, shall forthwith report the case to the confirming officer, or to the authority empowered to deal with its finding under section 129, as the case may be. (3) The confirming officer to whom the case is reported under sub-section (2) may, if he does not confirm the finding, take steps to have the accused person tried by the same or another Force Court for the offence with which he was charged. (4) The authority to whom the finding of a Summary Force Court is reported under sub-section (2) and a confirming officer confirming the finding in any case so reported to him shall order the accused person to be kept in custody in the prescribed manner and shall report the case for the orders of the Central Government. (5) On receipt of a report under sub-section (4), the Central Government may order the accused person to be detained in a lunatic asylum or other suitable place of safe custody. **112. Subsequent fitness of lunatic accused for trial.–Where any accused person, having been found** by reason of unsoundness of mind to be incapable of making his defence, is in custody or under detention under section 111, any officer prescribed in this behalf, may– (a) if such person is in custody under sub-section (4) of section 111, on the report of a medical officer that he is capable of making his defence, or (b) if such person is detained in a jail under sub-section (5) of section 111, on a certificate of the Inspector-General of Prisons, and if such person is detained in a lunatic asylum under the said subsection, on a certificate of any two or more of the visitors of such asylum and if he is detained in any other place under that sub-section, on a certificate of the prescribed authority, that he is capable of making his defence, take steps to have such person tried by the same or another Force Court for the offence with which he was originally charged or, if the offence is a civil offence, by a criminal court. **113. Transmission to Central Government of order under section 112.–A copy of every order** made by an officer under section 112 for the trial of the accused shall forthwith be sent to the Central Government. ----- **114. Release of lunatic accused.–Where any person is in custody under sub-section (4) of section** 111 or under detention under sub-section (5) of that section,– (a) if such person is in custody under the said sub-section (4), on the report of a medical officer, or (b) if such person is detained under the said sub-section (5), on a certificate from any of the authorities mentioned in clause (b) of section 112 that in the judgment of such officer or authority such person may be released without danger of his causing injury to himself or to any other person, the Central Government may order that such person be released or detained in custody or transferred to a public lunatic asylum if he has not already been sent to such an asylum. **115. Delivery of lunatic accused to relatives.–Where any relative or friend of any person who is in** custody under sub-section (4) of section111 or under detention under sub-section (5) of that section desires that he should be delivered to his care and custody, the Central Government may, upon application by such relative or friend and, on his giving security to the satisfaction of that Government that the person delivered shall be properly taken care of, and, prevented from doing injury to himself or to any other person, and be produced for the inspection of such officer, and at such times and places, as the Central Government may direct, order such person to be delivered to such relative or friend. **116. Order for custody and disposal of property pending trial.–When any property regarding** which any offence appears to have been committed, or which appears to have been used for the commission of any offence, is produced before a Force Court during a trial, the Court may make such order as it thinks fit for the proper custody of such property pending the conclusion of the trial, and if the property is subject to speedy or natural decay may, after recording such evidence as it thinks necessary, order it to be sold or otherwise disposed of. **117. Order for disposal of property regarding which offence is committed.–(1) After the** conclusion of a trial before any Force Court, the Court or the office confirming the finding or sentences of such Force Court, or any authority superior to such officer, or, in the case of Summary Force Court whose finding or sentences does not require confirmation, an officer not below the rank of Additional Deputy Inspector-General within whose command the trial was held, may make such order as it or he thinks fit for the disposal by destruction, confiscation, delivery to any person claiming to be entitled to possession thereof, or otherwise, of any property or document produced before the Court or in its custody, or regarding which any offence appears to have been committed or which has been used for the commission of any offence. (2) Where any order has been made under sub-section (1) in respect of property regarding which an offence appears to have been committed, a copy of such order signed and certified by the authority making the same may, whether the trial was held with in India or not, be sent to a magistrate within whose jurisdiction such property for the time being is situated, and such magistrate shall thereupon cause the order to be carried into effect as if it were an order passed by him under the provisions of the Code of Criminal Procedure, 1973 (2 of 1974). (3) In this section the term "property" includes, in the case of property regarding which an offence appears to have been committed, not only such property as has been originally in the possession or under the control of any person, but also any property into or for which the same may have been converted or exchanged, and anything acquired by such conversion or exchange whether immediately or otherwise. **118. Powers of Force Court in relation to proceedings under this Act.–Any trial by a Force Court** under the provisions of this Act shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 of the Indian Penal Code (45 of 1860) and the Force Court shall be deemed to be a Court within the meaning of sections 345 and 346 of the Code of Criminal Procedure, 1973 (2 of 1974). **119. Tender of pardon to accomplices.–(1) With a view to obtaining the evidence of any person** supposed to have been directly or indirectly concerned in or privy to an offence triable by a Force Court other than a Summary Force Court under this Act, the commanding officer, the convening officer or the Force Court, at any stage of investigation or inquiry into or the trial of, the offence, may tender a pardon to such person on condition of his making a full and true disclosure of the whole of the circumstances within his knowledge relating to the offence and to every other person concerned, whether as principal or abettor, in the commission thereof. ----- (2) The commanding officer or the convening officer who tenders pardon under sub-section (1) shall record,– (a) his reasons for so doing; (b) whether the tender was or was not accepted by the person to whom it was made, and shall, on application made by accused, furnish him with a copy of such record free of cost. (3) Every person accepting a tender of pardon made under sub-section (1)– (a) shall be examined as a witness by the commanding officer of the accused and in the subsequent trial, if any; (b) may be detained in Force custody until the termination of the trial. **120. Trial of person not complying with conditions of pardon.–(1)Where, in regard to a person** who has accepted a tender of pardon made under section 119, the Judge Attorney, or as the case may be, the Deputy Judge Attorney-General, or the Additional Judge Attorney-General, or the officer approved under section 95, certifies that in his opinion such person has, either by wilfully concealing anything essential or by giving false evidence, not complied with the conditions on which the tender was made, such person may be tried for the offence in respect of which the pardon was so tendered or for any other offence of which he appears to have been guilty in connection with the same matter, and also for the offence of giving false evidence: Provided that such person shall not be tried jointly with any of the other accused. (2) Any statement made by such person accepting the tender of pardon and recorded by his commanding officer or Force Court may be given in evidence against him at such trial. (3) At such trial, the accused shall be entitled to plead that he has complied with the condition upon which such tender was made; in which case it shall be for the prosecution to prove that the condition has not been complied with. (4) At such trial, the Force Court shall, before arraignment, ask the accused whether he pleads that he has complied with the conditions on which the tender of pardon was made. (5) If the accused does so plead, the Court shall record the plea and proceed with the trial and it shall, before giving its finding on the charge, find whether or not the accused has complied with the conditions of the pardon, and, if it finds that he has so complied, it shall give a verdict of not guilty. CHAPTER IX CONFIRMATION AND REVISION OF PROCEEDINGS **121. Finding and sentence not valid unless confirmed.–No finding or sentence of a General Force** Court or a Petty Force Court shall be valid except so far as it may be confirmed as provided by this Act. **122. Power to confirm finding and sentence of General Force Court.–The findings and sentences** of General Force Courts may be confirmed by the Central Government or by any officer empowered in this behalf by warrant of the Central Government. **123. Power to confirm finding and sentence of Petty Force Court.– The findings and sentences of** a Petty Force Court may be confirmed by an officer having power to convene a General Force Court or by any officer empowered in this behalf by warrant of such officer. **124. Limitation of powers of confirming authority.– A warrant issued under section 122 or section** 123 may contain such restrictions, reservations or condition as the authority issuing it may think fit. **125. Power of confirming authority to mitigate, remit or commute sentences.–Subject to such** restrictions, reservations or conditions, as may be contained in any warrant issued under section 122 or section 123, a confirming authority may, when confirming the sentence of a Force Court, mitigate or remit the punishment thereby awarded or commute that punishment for any punishment or punishments lower in the scale laid down in section 51. ----- **126. Confirming of findings and sentences on board a ship.–When any person subject to this Act** is tried and sentenced by a Force Court while on board a ship, the finding and sentence so far as not confirmed and executed on board the ship, may be confirmed and executed in like manner as if such person had been tried at the port of disembarkation. **127. Revision of finding or sentence.–(1) Any finding or sentence ofa Force Court which requires** confirmation may be once revised by order of the confirming authority and on such revision, the Court, if so directed by the confirming authority, may take additional evidence. (2)The Court on revision, shall consist of the same officers as were present when the original decision was passed unless any of those officers are unavoidably absent. (3) In case of such unavoidable absence the cause thereof shall be duly certified in the proceedings and the Court shall proceed with the revision provided that, in the case of a General Force Court it consists of five officers and in the case of a Petty Force Court, of three officers. **128. Finding and sentence of a Summary Force Court.–The finding and sentence of a Summary** Force Court shall not require to be confirmed, but may be carried out forthwith. **129. Transmission of proceedings of Summary Force Court.–The proceedings of every Summary** Force Court shall be forwarded without delay to the officer not below the rank of Additional Deputy Inspector-General within whose command the trial was held, or to the prescribed officer, and such officer, or the Director-General or any officer empowered by him in this behalf may, for reasons based on the merits of the case, but not on merely technical grounds, set aside the proceedings, or reduce the sentence to any other sentence which the Court might have passed. **130. Alteration of finding or sentence in certain cases.–(1) Where a finding of guilty by a Force** Court, which has been confirmed or which does not require confirmation, is found for any reason to be invalid or cannot be supported by the evidence, the authority which would have had power under section 142 to commute the punishment awarded by the sentence, if the finding had been valid may substitute a new finding and pass a sentence for the offence specified or involved in such finding: Provided that no such substitution shall be made unless such finding could have been validly made by the Force Court on the charge and unless it appears that the Force Court must have been satisfied of the facts establishing the said offence. (2) Where a sentence passed by a Force Court which has been confirmed, or which does not require confirmation, not being a sentence passed in pursuance of a new finding substituted under sub-section (1), is found for any reason to be invalid, the authority referred to in sub-section (1) may pass a valid sentence. (3) The punishment awarded by a sentence passed under sub-section (1)or sub-section (2) shall not be higher in the scale of punishments than, or in excess of, the punishment awarded by, the sentence for which a new sentence is substituted under this section. (4) Any finding substituted, or any sentence passed, under this sections hall, for the purposes of this Act and the rules, have effect as if it were a finding or sentence, as the case may be, of a Force Court. **131. Petition against order, finding or sentence of Force Court.–(1) Any person subject to this Act** who considers himself aggrieved by any order passed by any Force Court may present a petition to the officer or authority empowered to confirm any finding or sentence of such Force Court, and the confirming authority may take such steps as may be considered necessary to satisfy itself as to the correctness, legality or propriety of the order passed or as to the regularity of any proceeding to which the order relates. (2) Any person subject to this Act who considers himself aggrieved by a finding or sentence of any Force court which has been confirmed, may present a petition to the Central Government, the DirectorGeneral or any prescribed officer superior in command to the one who confirmed such finding or sentence, and the Central Government, the Director-General, or the prescribed officer, as the case may be, may pass such order thereon as it or he thinks fit. **132. Annulment of proceedings.–The Central Government, the Director- General or any prescribed** officer may annul the proceedings of any Force Court on the ground that they are illegal or unjust. ----- CHAPTER X EXECUTION OF SENTENCES, PARDONS, REMISSIONS, ETC. **133. Execution of sentence of death.–In executing a sentence of death, a Force Court shall, in its** discretion direct that the offender shall suffer death by being hanged by the neck until he be dead, or shall suffer death by being shot to death. **134. Commencement of sentence of imprisonment.–Whenever any person is sentenced by a Force** Court under this Act to imprisonment, the term of his sentence shall, whether it has been revised or not, be reckoned to commence on the day on which the original proceedings were signed by the presiding officer, or in the case of a Summary Force Court, by the Court: Provided that if for any reason beyond the control of the commanding officer or superior officer, the sentence of imprisonment cannot be executed in full or in part, the convict shall be liable to undergo the whole or unexpired portion of sentence, as the case may be, when it becomes possible to carry out the same: Provided further that the period of detention or confinement, if any, undergone by an accused person during the investigation, inquiry or trial of the case in which he is sentenced and before the date of which the original proceedings were signed shall be set off against the term of his sentence and the liability of such person to undergo imprisonment shall be restricted to the remainder, if any of the term of his sentence. **135. Execution of sentence of imprisonment.–(1) Whenever any sentence of imprisonment is** passed under this Act by a Force Court or whenever any sentence of death is commuted to imprisonment, the confirming officer or in case of a Summary Force Court the officer holding the Court or such other officer as may be prescribed shall, save as otherwise provided in sub-sections (3) and (4), direct that the sentence shall be carried out by confinement in a civil prison. (2) When a direction has been made under sub-section (1), the commanding officer of the person under sentence or such other officer as may be prescribed shall forward a warrant in the prescribed form to the officer in charge of the prison in which such person is to be confined and shall arrange for his despatch to such prison with the warrant. (3) In the case of a sentence of imprisonment for a period not exceeding three months and passed under this Act by a Force Court, the appropriate officer under sub-section (1) may direct that the sentence shall be carried out by confinement in Force custody instead of in a civil prison. (4) On active duty, a sentence of imprisonment may be carried out by confinement in such place as the officer not below the rank of Additional Deputy Inspector-General within whose command the person sentenced is serving or any prescribed officer may from time to time appoint. **136. Temporary custody of convict.–Where a sentence of imprisonment is directed to be undergone** in a civil prison, the convict may be kept in Force custody or in any other fit place till such time as it is possible to send him to a civil prison. **137. Execution of sentence of imprisonment in special cases.–Whenever, in the opinion of an** officer not below the rank of Additional Deputy Inspector-General within whose command the trial is held, any sentence or portion of a sentence of imprisonment cannot for special reasons conveniently be carried out in Force custody in accordance with the provisions of section 135, such officer may direct that such sentence or portion of sentence shall be carried out by confinement in any civil prison or other fit place. **138. Conveyance of prisoner from place to place.–A person under sentence of imprisonment may** during his conveyance from place to place or when on board a ship, aircraft, or otherwise, be subjected to such restraint as is necessary for his safe conduct and removal. **139. Communication of certain orders to prison officers.–Whenever an order is duly made under** this Act setting aside or varying any sentence, order or warrant under which any person is confined in a civil prison, a warrant in accordance with such order shall be forwarded by the officer making the order or his staff officer or such other person as may be prescribed, to the officer in charge of the prison in which such person is confined. ----- **140. Recovery of fine.–When a sentence of fine is imposed by a Force Court under section 49, a copy** of such sentence signed and certified by the confirming officer, or where no confirmation is required, by the officer holding the trial may be sent to any magistrate in India, and such magistrate shall thereupon cause the fine to be recovered in accordance with the provisions of the Code of Criminal Procedure, 1973 (2 of 1974), as if it were a sentence of fine imposed by such magistrate. **141. Informality or error in order or warrant.–Whenever any person is sentenced to imprisonment** under this Act, and is undergoing the sentence in any place or manner in which he might be confined under a lawful order or warrant in pursuance of this Act, the confinement of such person shall not be deemed to be illegal only by reason of informality or error in, or as respects the order, warrant or other document, or the authority by which, or in pursuance whereof such person was brought into, or, is confined in any such place, and any such order, warrant or document may be amended accordingly. **142. Pardon and remission.–When any person subject to this Act has been convicted by a Force** Court of any offence, the Central Government or the Director-General or, in the case of a sentence, which he could have confirmed or which did not require confirmation, an officer not below the rank of Additional Deputy Inspector-General within whose command such person at the time of conviction was serving, or the prescribed officer may,– (a) either with or without conditions which the person sentenced accepts, pardon the person or remit the whole or any part of the punishments awarded; or (b) mitigate the punishment awarded; or (c) commute such punishment for any less punishment or punishments mentioned in this Act; or (d) either with or without conditions which the person sentenced accepts, release the person on parole. **143. Cancellation of conditional pardons, release on parole or remission.–(1) If any condition on** which a person has been pardoned or released on parole or a punishment has been remitted is, in the opinion of the authority which granted the pardon, release or remission, not fulfilled, such authority may cancel the pardon, release or remission, and thereupon the sentence of the Court shall be carried into effect as if such pardon, release or remission had not been granted. (2) A person whose sentence of imprisonment is carried into effect under the provisions of subsection (1) shall undergo such imprisonment only for the unexpired portion of his sentence. **144.Suspension of sentence of imprisonment.–(1) Where a person subject to this Act is sentenced** by a Force Court to imprisonment, the Central Government, the Director-General or any officer empowered to convene a General Force Court may suspend the sentence whether or not the offender has already been committed to prison or to Force custody. (2) The authority or officer specified in sub-section (1) may, in the case of an offender so sentenced direct that until the orders of such authority or officer have been obtained, the offender shall not be committed to prison or to Force custody. (3) The powers conferred by sub-sections (1) and (2) may be exercised in the case of any such sentence which has been confirmed, reduced or commuted. **145. Orders pending suspension of sentence.–(1) Where the sentence referred to in section 144 is** imposed by a Force Court other than a Summary Force Court, the confirming officer may, when confirming the sentence, direct that the offender be not committed to prison or to Force custody until the orders of the authority or officer specified in section 144 have been obtained. (2) Where a sentence of imprisonment is imposed by a Summary Force Court, the officer holding the trial may make the direction referred to in sub-section (1). **146. Release on suspension of sentence.–Where a sentence is suspended under section 144, the** offender shall forthwith be released from custody. **147. Computation of period of sentence.–Any period during which the sentence is under suspension** shall be reckoned as part of the term of such sentence. ----- **148. Order after suspension of sentence.–The authority or officer specified in section 144 may, at** any time while a sentence is suspended, order– (a) that the offender be committed to undergo the unexpired portion of the sentence; or (b) that the sentence be remitted. **149. Reconsideration of case after suspension of sentence.–(1) Wherea sentence has been** suspended, the case may at any time, and shall at intervals of not more than four months, be reconsidered by the authority or officer not below the rank of an Additional Deputy Inspector-General duly authorised by the authority or officer specified in section 144. (2) Where on such reconsideration by the officer so authorised, it appears to him that the conduct of offender since his conviction has been such as to justify a remission of sentence, he shall refer the matter to the authority or officer specified in section 144. **150. Fresh sentence after suspension.–Where an offender, while a sentence on him is suspended** under this Act, is sentenced for any other offence, then– (a) if the further sentence is also suspended under this Act, the two sentences shall run concurrently; (b) If the further sentence is for a period of three months or more and is not suspended under this Act, the offender shall also be committed to prison or Force custody for the unexpired portion of the previous sentence, but both sentences shall run concurrently; and (c) If the further sentence is for a period of less than three months and is not suspended under this Act, the offender shall be so committed on that sentence only, and the previous sentence shall, subject to any order which may be passed under section 148 or section 149, continue to be suspended. **151. Scope of power of suspension of sentence.–The powers conferred by sections 144 and 148** shall be in addition to, and not in derogation of, the power of mitigation, remission and commutation. **152. Effect of suspension and remission of sentence on dismissal.–(1) Where in addition to any** other sentence the punishment of dismissal has been awarded by a Force Court, and such other sentence is suspended under section 144, then, such dismissal shall not take effect until so ordered by the authority or officer specified in section 144. (2) If such other sentence is remitted under section 148, the punishment of dismissal shall also be remitted. CHAPTER XI MISCELLANEOUS **153. Powers and duties conferrable and imposable on members of the Force.–(1) The Central** Government may, by general or special order published in the Official Gazette, direct that subject to such conditions and limitations as may be specified in the order, any member of the Force may exercise or discharge such of the powers or duties under any Central Act as may be specified in the said order, being the powers and duties which, in the opinion of the Central Government, an officer of the corresponding or lower rank is by such Central Act empowered to exercise or discharge for the said purposes. (2) The Central Government may, by general or special order published in the Official Gazette, confer or impose, with the concurrence of the State Government concerned, any of the powers or duties which may be exercised or discharged under a State Act by a police officer upon a member of the Force who, in the opinion of the Central Government, holds a corresponding or higher rank. (3) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the order or both Houses agree that the order should not be made, the order shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that order. ----- **154. Protection for acts of members of the Force.–(1) In any suitor proceeding against any member** of the Force for any act done by him in pursuance of a warrant or order of a competent authority, it shall be lawful for him to plead that such act was done by him under the authority of such warrant or order. (2) Any such plea may be proved by the production of the warrant or order directing the act, and if it is so proved, the member of the Force shall thereupon be discharged from liability in respect of the act so done by him, notwithstanding any defect in the jurisdiction of the authority which issued such warrant or order. (3) Notwithstanding anything contained in any other law for the time being in force, any legal proceeding (whether civil or criminal) which may lawfully be brought against any member of the Force for anything done or intended to be done under the powers conferred by, or in pursuance of any provision of this Act or the rules, shall be commenced within three months after the act complained of was committed and not otherwise, and notice in writing of such proceeding and of the cause thereof shall be given to the defendant or his superior officer at least one month before the commencement of such proceeding. **155. Power to make rules.–(1) The Central Government may, by notification, make rules for the** purpose of carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for– (a) the manner of constitution of the Force and conditions of service of its members under section 4; (b) superintendence, direction and control of the Force under section 5; (c) the persons to be enrolled to the Force, mode of enrolment and procedure thereof under section 6; (d) the authority, to whom resignation to be submitted and the permission for withdrawal from duty to be obtained from, under section 8; (e) the dismissal, removal and reduction in rank of persons under section 11; (f) the authority and other matters required to be prescribed under section 13; (g) the amount and the incidence of fine to be imposed under section 60; (h) the manner and extent of deductions from pay and allowances and the authority there for under section 66; (i) the procedure of investigation of an offence and the manner and period of detention of persons under section 70; (j) the manner of making the report by the commanding officer in respect of delay in convening Force Court under section 71; (k) the authority to appoint the court of inquiry and the manner of appointment thereof under section 74; (l) the manner of convening Force Courts under section 76; (m) the persons by whom an accused may be defended in a trial and appearance of such persons under section 91; (n) the recruitment and conditions of service of the Judge Attorney- General, Deputy Judge Attorney-General, Additional Judge Attorney-General and Judge Attorney under section 95; (o) the officer to annul proceedings of the Force Court under section 132; and (p) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be, or may be, made by the rules. (3) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or ----- annulment shall be without prejudice to the validity of anything previously done under that rule. **156. Provisions as to existing Sashastra Seema Bal.–(1)The Sashastra Seema Bal in existence at the** commencement of this Act shall be deemed to be the Force constituted under this Act. (2) The members of the Sashastra Seema Bal in existence at the commencement of this Act shall be deemed to have been appointed or, as the case may be, enrolled as such under this Act. (3) Anything done or any action taken before the commencement of this Act in relation to the constitution of the Sashastra Seema Bal referred to in sub-section (1), in relation to any person appointed or enrolled, as the case may be, thereto, shall be as valid and as effective in law as if such thing or action was done or taken under this Act: Provided that nothing in this sub-section shall render any person guilty of any offence in respect of anything done or omitted to be done by him before the commencement of this Act. –––––– -----

20-Dec-2007

52

The Indira Gandhi National Tribal University Act, 2007

https://www.indiacode.nic.in/bitstream/123456789/2016/1/200752.pdf

central

# THE INDIRA GANDHI NATIONAL TRIBAL UNIVERSITY ACT, 2007 __________________ # ARRANGEMENT OF SECTIONS __________________ SECTIONS 1. Short title and commencement. 2. Definitions. 3. Establishment of University. 4. Objects of University. 5. Powers of University. 6. Jurisdiction. 7. University open to all classes, castes and creed. 8. Residence of students. 9. Power to establish and maintain schools. 10. The Visitor. 11. Officers of University. 12. The Chancellor. 13. The Vice-Chancellor. 14. The Pro-Vice-Chancellor. 15. The Deans of Faculties. 16. The Directors of Regional Centres. 17. The Registrar. 18. The Finance Officer. 19. The Controller of Examinations. 20. The Librarian. 21. Other officers. 22. Authorities of University. 23. The Court. 24. The Executive Council. 25. The Academic Council. 26. The College Development Council. 27. The Boards of Studies, Academic Boards and Management Boards. 28. The Finance Committee. 29. Other authorities of University. 30. Power to make Statutes. 31. Statutes, how to be made. 32. Power to make Ordinances. 33. Regulations. 34. Annual report. 35. Annual accounts. 36. Fund of University. 37. Returns and information. 38. Conditions of service of employees. 39. Procedure of appeal and arbitration in disciplinary cases against students. 40. Right to appeal. 41. Provident and pension funds. 1 ----- SECTIONS 42. Disputes as to constitution of authorities and bodies. 43. Constitution of Committees. 44. Filling of casual vacancies. 45. Proceedings of authorities or bodies not invalidated by vacancies. 46. Protection of action taken in good faith. 47. Mode of proof of University record. 48. Power to remove difficulties. 49. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid before Parliament. 50. Transitional provisions. THE SCHEDULE. 2 ----- # THE INDIRA GANDHI NATIONAL TRIBAL UNIVERSITY ACT, 2007 ACT NO. 52 OF 2007 [20th December, 2007.] # An Act to establish and incorporate a teaching and affiliating University at Amarkantak in the State of Madhya Pradesh to facilitate and promote avenues of higher education and research facilities for the tribal population in India and to provide for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-eighth Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the Indira Gandhi National Tribal** University Act, 2007. (2) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.—In this Act, and in all Statutes made hereunder, unless the context otherwise** requires.— (a) "Academic Board" in relation to a regional centre or a recognised institution means the academic body charged with the academic matters of such centre or institution, as the case may be, and recognised as such by the University; (b) "Academic Council" means the Academic Council of the University; (c) "academic staff" means such categories of staff as are designated as academic staff by the Ordinances; (d) "Affiliated College" means a college admitted to the privileges of the University; (e) "Board of Studies" means the Board of Studies of the University; (f) "Campus" means the unit established or constituted for making arrangements for instruction, or research, or both, and includes off-campuses; (g) "Chancellor", "Vice-Chancellor" and "Pro-Vice-Chancellor" mean, respectively, the Chancellor, Vice-Chancellor and Pro-Vice-Chancellor of the University; (h) "College Development Council" means the College Development Council of the University; (i) "Court" means the Court of the University; (j) "Dean" means Head of a Faculty of the University; (k) "Department" means a Department of Studies and includes a Centre of Studies; (l) "distance education system" means the system of imparting education through any means of communication, such as broadcasting, telecasting, webcasting correspondence courses, seminars, contact programmes or the combination of any two or more such means; (m) "Director" means Head of a Regional Centre; (n) "employee" means any person appointed by the University and includes teachers and other staff of the University; (o) "Executive Council" means the Executive Council of the University; (p) "Faculty" means a Faculty of the University; (q) "Finance Committee" means the Finance Committee of the University; 1. 8th July 2008, vide notification No. S.O. 1630(E), dated 7th July, 2008, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 3 ----- (r) "Hall" means a unit of residence or of corporate life for the students of the University, or of a College or of an Institution, maintained or recognised by the University; (s) "Institution" means an academic institution, not being a College, maintained by, or admitted to the privileges of, the University; (t) "Management Board" in relation to a regional centre or a recognised institution means the governing body charged with the management of the affairs of such centre or institution, as the case may be, and recognised as such by the University; (u) "Principal" means the Head of a College or an Institution maintained by the University and includes, where there is no Principal, the person for the time being duly appointed to act as Principal, and in the absence of the Principal, or the acting Principal, a Vice-Principal duly appointed as such; (v) "recognised teachers" means such persons as may be recognised by the University for the purpose of imparting instructions in a College or an Institution admitted to the privileges of the University; (w) "Regional Centres" means off-campuses constituted by the University and functioning as part of the University, established in more tribal dominated areas, as prescribed in the Statutes; (x) "Regulations" means the Regulations made by any authority of the University under this Act for the time being in force; (y) "Scheduled Population" means and includes the Scheduled Tribes as well as Scheduled Castes, as defined in the Constitution of India; (z) "Statutes" and "Ordinances" mean, respectively, the Statutes and the Ordinances of the University, for the time being in force; (za) "teachers of the University" means Professors, Readers, Lecturers and such other persons as may be appointed for imparting instructions or conducting research in the University or any College or Institution maintained by the University and are designated as teachers by the Ordinances; (zb) "University" means the Indira Gandhi National Tribal University as incorporated under this Act. **3. Establishment of University.—(1) There shall be established, in the State of Madhya Pradesh, a** University by the name of "Indira Gandhi National Tribal University". (2) The headquarters of the University shall be at Amarkantak. (3) The University shall have such number of Regional Centres and Campuses in the tribal areas as the University may deem fit. (4) The first Chancellor, the first Vice-Chancellor and the first members of the Court, the Executive Council and the Academic Council, and all such persons who may hereafter become such officers or members, so long as they continue to hold such office or membership, are hereby constituted a body corporate by the name of "Indira Gandhi National Tribal University". (5) The University shall have perpetual succession and a common seal, and shall sue and be sued by the said name. **4. Objects of University.—The objects of the University shall be,—** (i) to provide avenues of higher education and research facilities primarily for the tribal population of India; (ii) to disseminate and advance knowledge by providing instructional and research facilities in tribal art, culture, tradition, language, medicinal systems, customs, forest based economic activities, flora, fauna and advancement in technologies relating to the natural resources of the tribal areas; (iii) to collaborate with national and international universities or organisations, specially for undertaking cultural studies and research on tribal populations; 4 ----- (iv) to formulate tribal centric development models, publish reports and monographs; and to organise conferences, seminars on issues relating to tribes; and to provide inputs to policy matters in different spheres; (v) to take appropriate measures for promoting, the members of tribal communities capable of managing, administering and looking after their own needs by access to higher education through a University of their own; (vi) to disseminate and advance knowledge by providing instructional and research facilities in such other branches of learning as it may deem fit; (vii) to take appropriate measures for promoting innovations in teaching-learning processes in inter-disciplinary studies and research; and to pay special attention to the improvement of the social, educational and economic conditions and welfare of the Scheduled Tribes within the Union of India, their intellectual, academic and cultural development. **5. Powers of University.—The University shall have the following powers, namely:—** (i) to provide for instruction in such branches of learning as the University may, from time to time, determine and to make provisions for research and for the advancement and dissemination of knowledge; (ii) to grant, subject to such conditions as the University may determine, diplomas or certificates to, and confer degrees or other academic distinctions on the basis of examinations, evaluation or any other method of testing on, persons, and to withdraw any such diplomas, certificates, degrees or other academic distinctions for good and sufficient cause; (iii) to organise and to undertake extra-mural studies, training and extension services; (iv) to confer honorary degrees or other distinctions in the manner prescribed by the Statutes; (v) to provide facilities through the distance education system to such persons as it may determine; (vi) to institute Directorships, Principalships, Associateships, Professorships, Readerships, Lecturerships and other teaching or academic positions, required by the University and to appoint persons to such Directorships, Principalships, Associateships, Professorships, Readerships, Lecturerships and other teaching or academic positions; (vii) to recognise an institution of higher learning for such purposes as the University may determine and to withdraw such recognition; (viii) to recognise persons for imparting instructions in any College or Institution recognised or maintained by the University; (ix) to appoint persons working in any other University or educational institution as teachers of the University for a specified period; (x) to create administrative, ministerial and other posts and to make appointments thereto; (xi) to co-operate or collaborate or associate with any other University or authority or Institution of higher learning in such manner and for such purposes as the University may determine; (xii) to establish, with the prior approval of the Central Government, such Campuses, special centres, specialised laboratories or other units for research and instruction as are, in the opinion of the University, necessary for the furtherance of its objects; (xiii) to institute and award fellowships, scholarships, studentships, medals and prizes; (xiv) to establish and maintain Colleges, Institutions and Halls; (xv) to make provision for research and advisory services and for that purpose to enter into such arrangements with other institutions, industrial or other organisations, as the University may deem necessary; 5 ----- (xvi) to organise and conduct refresher courses, workshops, seminars and other programmes for teachers, evaluators and other academic staff; (xvii) to make special arrangements in respect of the residence and teaching of women students as the University may deem necessary; (xviii) to appoint on contract or otherwise visiting professors, Emeritus Professors, Consultants, Scholars and such other persons who may contribute to the advancement of the objects of the University; (xix) to confer autonomous status on a College or an Institution or a Department, as the case may be, in accordance with the Statutes; (xx) to admit to its privileges Colleges and Institutions located in India not maintained by the University; to withdraw all or any of those privileges in accordance with such conditions as may be prescribed by the Statutes; to recognise, guide, supervise, and control Halls not maintained by the University and other accommodation for students, and to withdraw any such recognition; (xxi) to determine standards of admission to the University which may include examination, evaluation or any other method of testing; (xxii) to demand and receive payment of fees and other charges; (xxiii) to supervise the residences of the students of the University and to make arrangements for promoting their health and general welfare; (xxiv) to lay down conditions of service of all categories of employees, including their code of conduct; (xxv) to regulate and enforce discipline among the students and the employees and to take such disciplinary measures in this regard as may be deemed by the University to be necessary; (xxvi) to make arrangements for promoting the health and general welfare of the employees; (xxvii) to receive benefactions, donations and gifts and to acquire, hold, manage and dispose of with the previous approval of the Central Government, any property, movable or immovable, including trust and endowment properties for the purposes of the University; (xxviii) to borrow, with the prior approval of the Central Government, on the security of the property of the University, money for the purposes of the University; (xxix) to establish such number of Regional Centres in various tribal areas of the country as are, in the opinion of the University, necessary for the furtherance of its objects; (xxx) to make special provisions for the promotion of educational, economic interests and welfare of the members belonging to the Scheduled Tribes by providing adequate percentage of seats in the matters of admission, of posts in the matter of employment and other benefits; (xxxi) to do all such other acts and things as may be necessary, incidental or conducive to the attainment of all or any of its objects. **6. Jurisdiction.—The jurisdiction of the University shall extend to the whole of India.** **7. University open to all classes, castes and creed.—The University shall be open to persons of** either sex and of whatever race, creed, caste or class, and it shall not be lawful for the University to adopt or impose on any person, any test whatsoever of religious belief or profession in order to entitle him to be appointed as a teacher of the University or to hold any other office therein or be admitted as a student in the University or to graduate thereat or to enjoy or exercise any privilege thereof: Provided that nothing in this section shall be deemed to prevent the University from making special provisions for the employment or admission of women, persons with disabilities or of persons belonging to the weaker sections of the society and, in particular, of the Scheduled Castes and the Scheduled Tribes. 6 ----- **8. Residence of students.—Every student of the University other than a student who pursues a** course of study by distance education system, shall reside in a Hall or hostel or under such conditions as may be prescribed by the Ordinances. **9. Power to establish and maintain schools.—The University shall, subject to Statutes, have power** to establish at least one school in every Regional Centre, as a model school for the schools of the region. **10. The Visitor.—(1) The President of India shall be the Visitor of the University.** (2) The Visitor may, from time to time, appoint one or more persons to review the work and progress of the University, including Colleges and Institutions maintained by it, and to submit a report thereon; and upon receipt of that report, the Visitor may, after obtaining the views of the Executive Council thereon through the Vice-Chancellor, take such action and issue such directions as he considers necessary in respect of any of the matters dealt with in the report and the University shall be bound to comply with such directions. (3) The Visitor shall have the right to cause an inspection to be made by such person or persons as he may direct, of the University, its buildings, libraries, laboratories and equipment, and of any College or Institution maintained by the University or admitted to its privileges; and also of the examinations, teaching and other work conducted or done by the University and to cause an inquiry to be made in like manner in respect of any matter connected with the administration or finances of the University, Colleges or Institutions. (4) The Visitor shall, in every matter referred to in sub-section (3), give notice of his intention to cause an inspection or inquiry to be made,— (a) to the University, if such inspection or inquiry is to be made in respect of the University or any College or Institution maintained by it, or (b) to the management of the College or Institution, if the inspection or inquiry is to be made in respect of College or Institution admitted to the privileges of the University, and the University or the management, as the case may be, shall have the right to make such representations to the Visitor, as it may consider necessary. (5) After considering the representations, if any, made by the University or the management, as the case may be, the Visitor may cause to be made such inspection or inquiry as is referred to in sub-section (3). (6) Where any inspection or inquiry has been caused to be made by the Visitor, the University or the management shall be entitled to appoint a representative, who shall have the right to be present and be heard at such inspection or inquiry. (7) The Visitor may, if the inspection or inquiry is made in respect of the University or any College or Institution maintained by it, address the Vice-Chancellor with reference to the result of such inspection or inquiry together with such views and advice with regard to the action to be taken thereon, as the Visitor may be pleased to offer, and on receipt of address made by the Visitor, the Vice-Chancellor shall communicate, to the Executive Council, the views of the Visitor with such advice as the Visitor may offer upon the action to be taken thereon. (8) The Visitor may, if the inspection or inquiry is made in respect of any College or Institution admitted to the privileges of the University, address the management concerned through the ViceChancellor with reference to the result of such inspection or inquiry, his views thereon and such advice as he may be pleased to offer upon the action to be taken thereon. (9) The Executive Council or the management, as the case may be, shall communicate, through the Vice-Chancellor to the Visitor such action, if any, as it proposes to take or has been taken upon the result of such inspection or inquiry. (10) Where, the Executive Council or the management, does not, within a reasonable time, take action to the satisfaction of the Visitor, the Visitor may, after considering any explanation furnished or representation made by the Executive Council or the management, issue such directions as he may think fit and the Executive Council or the management, as the case may be, shall comply with such directions. 7 ----- (11) Without prejudice to the foregoing provisions of this section, the Visitor may, by order in writing, annual any proceeding of the University which is not in conformity with the Act, the Statutes or the Ordinances: Provided that before making any such order, he shall call upon the Registrar to show cause why such an order should not be made, and, if any cause is shown within a reasonable time, he shall consider the same. (12) The Visitor shall have such other powers as may be prescribed by the Statutes. **11. Officers of University.—The following shall be the officers of the University:—** (1) the Chancellor; (2) the Vice-Chancellor; (3) the Pro-Vice-Chancellor; (4) the Director; (5) the Deans of Faculties; (6) the Registrar; (7) the Finance Officer; (8) the Controller of Examinations; (9) the Librarian; and (10) such other officers as may be declared by the Statutes to be officers of the University. **12. The Chancellor.—(1) The Chancellor shall be appointed by the Visitor in such manner as may be** prescribed by the Statutes. (2) The Chancellor shall, by virtue of his office, be the head of the University and shall, if present, preside at the Convocations of the University held for conferring degrees and meetings of the Court. **13. The Vice-Chancellor.—(1) The Vice-Chancellor shall be appointed by the Visitor in such** manner as may be prescribed by the Statutes. (2) The Vice-Chancellor shall be the principal executive and academic officer of the University and shall exercise general supervision and control over the affairs of the University and give effect to the decisions of all the authorities of the University. (3) The Vice-Chancellor may, if he is of the opinion that immediate action is necessary on any matter, exercise any power conferred on any authority of the University by or under this Act and shall report to such authority at its next meeting the action taken by him on such matter: Provided that if the authority concerned is of the opinion that such action ought not to have been taken, it may refer the matter to the Visitor whose decision thereon shall be final: Provided further that any person in the service of the University who is aggrieved by the action taken by the Vice-Chancellor under this sub-section shall have the right to represent against such action to the Executive Council within three months from the date on which decision on such action is communicated to him and thereupon the Executive Council may confirm, modify or reverse the action taken by the ViceChancellor. (4) The Vice-Chancellor, if he is of the opinion that any decision of any authority of the University is beyond the powers of the authority conferred by the provisions of this Act, the Statutes or the Ordinances or that any decision taken is not in the interest of the University, may ask the authority concerned to review its decision within sixty days of such decision and if the authority refuses to review the decision either in whole or in part or no decision is taken by it within the said period of sixty days, the matter shall be referred to the Visitor whose decision thereon shall be final. 8 ----- (5) The Vice-Chancellor shall exercise such other powers and perform such other duties as may be prescribed by the Statutes or the Ordinances. **14. The Pro-Vice-Chancellor.—The Pro-Vice-Chancellor shall be appointed in such manner and on** such terms and conditions of service, and shall exercise such powers and perform such duties, as may be prescribed by the Statutes. **15. The Deans of Faculties.—Every Dean of Faculty shall be appointed in such manner and shall** exercise such powers and perform such duties, as may be prescribed by the Statutes. **16. The Directors of Regional Centres.—Every Director of Regional Centre shall be appointed in** such manner and shall exercise such powers and perform such duties, as may be prescribed by the Statutes. **17. The Registrar.—(1) The Registrar shall be appointed in such manner and on such terms and** conditions of service, as may be prescribed by the Statutes. (2) The Registrar shall have the power to enter into agreements, sign documents and authenticate records on behalf of the University and shall exercise such powers and perform such duties, as may be prescribed by the Statutes. **18. The Finance Officer.—The Finance Officer shall be appointed in such manner and shall exercise** such powers and perform such duties, as may be prescribed by the Statutes. **19. The Controller of Examinations.—The Controller of Examinations shall be appointed in such** manner and shall exercise such powers and perform such duties, as may be prescribed by the Statutes. **20. The Librarian.—The Librarian shall be appointed in such manner and on such terms and** conditions of service, and shall exercise such powers and perform such duties, as may be prescribed by the Statutes. **21. Other officers.—The manner of appointment and powers and duties of other officers of the** University shall be prescribed by the Statutes. **22. Authorities of University.—The following shall be the authorities of the University:—** (1) the Court; (2) the Executive Council; (3) the Academic Council; (4) the College Development Council; (5) the Board of Studies; (6) the Finance Committee; and (7) such other authorities as may be declared by the Statutes to be the authorities of the University. **23. The Court.—(1) The constitution of the Court and the term of office of its members shall be** prescribed by the Statutes: Provided that the Court shall have adequate number of members from amongst the Scheduled Tribes: Provided further that such number of members as may be prescribed by the Statutes shall be elected from among the teachers, employees and students of the University. (2) Subject to the provisions of this Act, the Court shall have the following powers and functions, namely:— (a) to review, from time to time, the broad policies and programmes of the University and to suggest measures for the improvement and development of the University; (b) to consider and pass resolutions on the annual report and the annual accounts of the University and the audit report on such accounts; 9 ----- (c) to advise the Visitor in respect of any matter which may be referred to it for advice; and (d) to perform such other functions as may be prescribed by the Statutes. **24. The Executive Council.—(1) The Executive Council shall be the principal executive body of the** University. (2) The constitution of the Executive Council, the term of office of its members and its powers and functions shall be prescribed by the Statutes: Provided that the Executive Council shall have adequate number of members from amongst the Scheduled Tribes: Provided further that such number of members as may be prescribed by the Statutes shall be from amongst the elected members of the Court. **25. The Academic Council.—(1) The Academic Council shall be the principal academic body of the** University and shall, subject to the provisions of this Act, the Statutes and the Ordinances, co-ordinate and exercise general supervision over the academic policies of the University. (2) The constitution of the Academic Council, the term of office of its members and its powers and functions shall be prescribed by the Statutes: Provided that the Academic Council shall have adequate number of members from amongst the Scheduled Tribes: Provided further that such number of members as may be prescribed by the Statutes shall be from amongst the elected members of the Court who are teachers of the University. **26. The College Development Council.—(1) The College Development Council shall be responsible** for admitting Colleges to the privileges of the University. (2) The constitution of the College Development Council, the term of office of its members and its powers and functions shall be prescribed by the Statutes: Provided that the College Development Council shall have adequate number of members from amongst the Scheduled Tribes. **27. The Boards of Studies, Academic Boards and Management Boards.—The constitution,** powers and functions of the Boards of Studies, the Academic Boards and the Management Boards shall be prescribed by the Statutes: Provided that the Boards of Studies, the Academic Boards and the Management Boards shall have adequate number of members from amongst the Scheduled Tribes. **28. The Finance Committee.—The constitution, powers and functions of the Finance Committee** shall be prescribed by the Statutes: Provided that the Finance Committee shall have adequate number of members from amongst the Scheduled Tribes. **29. Other authorities of University.—The constitution, powers and functions of other authorities, as** may be declared by the Statutes to be the authorities of the University, shall be prescribed by the Statutes: Provided that the other authorities of the University shall have adequate number of members from amongst the Scheduled Tribes. **30. Power to make Statutes.—Subject to the provisions of this Act, the Statutes may provide for all** or any of the following matters, namely:— (a) the constitution, powers and functions of authorities and other bodies of the University, as may be constituted from time to time; (b) the appointment and continuance in office of the members of the said authorities and bodies, the filling up of vacancies of members, and all other matters relating to those authorities and other bodies for which it may be necessary or desirable to provide; 10 ----- (c) the appointment, powers and duties of the officers of the University and their emoluments; (d) the appointment of teachers, academic staff and other employees of the University, their emoluments and conditions of service; (e) the recognition of persons as recognised teachers; (f) the appointment of teachers, academic staff working in any other University or organisation for a specific period for undertaking a joint project; (g) the conditions of service of employees including provisions for pension, insurance, provident fund, the manner of termination of service and disciplinary action; (h) the principles governing the seniority of service of the employees of the University; (i) the procedure for arbitration in cases of dispute between employees or students and the University; (j) the procedure for appeal to the Executive Council by any employee or student against the action of any officer or authority of the University; (k) the conferment of autonomous status on a College or an Institution or a Department; (l) the establishment and abolition of Faculties, Departments, Centres, Halls, Colleges and Institutions; (m) the conferment of honorary degrees; (n) the withdrawal of degrees, diplomas, certificates and other academic distinctions; (o) the conditions under which Colleges and Institutions may be admitted to the privileges of the University and the withdrawal of such privileges; (p) the management of Colleges and Institutions established by the University; (q) the delegation of powers vested in the authorities or officers of the University; (r) the maintenance of discipline among the employees and students; and (s) all other matters which by this Act are to be or may be provided for by the Statutes. **31. Statutes, how to be made.—(1) The first Statutes are those set out in the Schedule.** (2) The Executive Council may, from time to time, make new or additional Statutes or may amend or repeal the Statutes referred to in sub-section (1): Provided that the Executive Council shall not make, amend or repeal any Statutes affecting the status, powers or constitution of any authority of the University until such authority has been given an opportunity of expressing an opinion in writing on the proposed changes, and any opinion so expressed shall be considered by the Executive Council. (3) Every new Statute or addition to the Statutes or any amendment or repeal of a Statute shall require the assent of the Visitor who may assent thereto or withhold assent or remit to the Executive Council for re-consideration. (4) A new Statute or a Statute amending or repealing an existing Statute shall have no validity unless it has been assented to by the Visitor. (5) Notwithstanding anything contained in the foregoing sub-sections, the Visitor may make new or additional Statutes or amend or repeal the Statutes referred to in sub-section (1), during the period of three years immediately after the commencement of this Act: Provided that the Visitor may, on the expiry of the said period of three years, make, within one year from the date of such expiry, such detailed Statutes as he may consider necessary and such detailed Statutes shall be laid before both Houses of Parliament. 11 ----- (6) Notwithstanding anything contained in the foregoing sub-sections, the Visitor may direct the University to make provisions in the Statutes in respect of any matter specified by him and if the Executive Council is unable to implement such direction within sixty days of its receipt, the Visitor may, after considering the reasons, if any, communicated by the Executive Council for its inability to comply with such direction, make or amend the Statutes suitably. **32.Power to make Ordinances.—(1) Subject to the provisions of this Act and the Statutes, the** Ordinances may provide for all or any of the following matters, namely:— (a) the admission of students to the University and their enrolment as such; (b) the courses of study to be laid down for all degrees, diplomas and certificates of the University; (c) the medium of instruction and examination; (d) the award of degrees, diplomas, certificates and other academic distinctions, the qualifications for the same and the means to be taken relating to the granting and obtaining of the same; (e) the fees to be charged for courses of study in the University and for admission to the examinations, degrees and diplomas of the University; (f) the institution of fellowships, scholarships, studentships, medals and prizes; (g) the conditions for award of fellowships, scholarships, studentships, medals and prizes; (h) the conduct of examinations, including the term of office and the manner of appointment and the duties of examining bodies, examiners and moderators; (i) the conditions of residence of the students of the University; (j) the special arrangements, if any, which may be made for the residence and teaching of women students and the prescribing of special courses of studies for them; (k) the appointments and emoluments of employees other than those for whom provision has been made in the Statutes; (l) the setting up of a machinery for redressal of grievances of employees; (m) the establishment and management of Regional Centres, Schools, Colleges, other Institutions, Centres of Studies, Boards of Studies, Special Centres, Specialised Laboratories and other Committees; (n) the manner of co-operation and collaboration with other Universities, institutions and other non-profiteering agencies including learned bodies or associations; (o) the creation, composition and functions of any other body which is considered necessary for improving the academic life of the University; (p) the institution of fellowships, scholarships, studentships, medals and prizes; (q) the supervision of management of Colleges and Institutions admitted to the privileges of the University; and (r) all other matters which by this Act or the Statutes, are to be or may be, provided for by the Ordinances. (2) The first Ordinances shall be made by the Vice-Chancellor with the previous approval of the Central Government and the Ordinances so made may be amended, repealed or added to at any time by the Executive Council in the manner prescribed by the Statutes. **33. Regulations.—The authorities of the University may make Regulations, consistent with this Act,** the Statutes and the Ordinances for the conduct of their own business and that of the Committees, if any, appointed by them and not provided for by this Act, the Statutes or the Ordinances, in the manner prescribed by the Statutes. 12 ----- **34. Annual report.— (1) The annual report of the University shall be prepared under the direction of** the Executive Council, which shall include, among other matters, the steps taken by the University towards the fulfilment of its objects and shall be submitted to the Court on or after such date as may be prescribed by the Statutes and the Court shall consider the report in its annual meeting. (2) The Court shall submit the annual report to the Visitor along with its comments, if any. (3) A copy of the annual report, as prepared under sub-section (1), shall also be submitted to the Central Government, which shall, as soon as may be, cause the same to be laid before both Houses of Parliament. **35. Annual accounts.—(1) The annual accounts and balance-sheet of the University shall be** prepared under the directions of the Executive Council and shall, once at least every year and at intervals of not more than fifteen months, be audited by the Comptroller and Auditor-General of India or by such persons as he may authorise in this behalf. (2) A copy of the annual accounts together with the audit report thereon shall be submitted to the Court and the Visitor along with the observations of the Executive Council. (3) Any observations made by the Visitor on the annual accounts shall be brought to the notice of the Court and the observations of the Court, if any, shall, after being considered by the Executive Council, be submitted to the Visitor. (4) A copy of the annual accounts together with the audit report as submitted to the Visitor, shall also be submitted to the Central Government, which shall, as soon as may be, cause the same to be laid before both Houses of Parliament. (5) The audited annual accounts after having been laid before both Houses of Parliament shall be published in the Official Gazette. **36. Fund of University.—(1) There shall be a University Fund which shall include—** (a) any contribution or grant made by the State Government; (b) any contribution or grant made by the University Grants Commission or the Central Government; (c) any contribution made by Government, semi-Government or autonomous bodies; (d) any bequests, donations, endowments or other grants made by any private individual or institution; (e) income received by the University from fees and charges; and (f) amounts received from any other source. (2) The amount of the said Fund shall be kept in a Scheduled Bank as defined in the Reserve Bank of India Act, 1934 (2 of 1934) or in a corresponding new bank constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980) or may be invested in such securities authorised by the Indian Trusts Act, 1882 (2 of 1882) as may be decided by the Executive Council. (3) The said Fund may be utilised for such purposes of the University and in such manner as may be prescribed. **37. Returns and information.—The University shall furnish to the Central Government such returns** or other information with respect to its property or activities as the Central Government may, from time to time, require. **38. Conditions of service of employees.—(1) Every employee of the University shall be appointed** under a written contract, which shall be lodged with the University and a copy of which shall be furnished to the employee concerned. (2) Any dispute arising out of the contract between the University and any employee shall, at the request of the employee, be referred to a Tribunal of Arbitration consisting of one member appointed by 13 ----- the Executive Council, one member nominated by the employee concerned and an umpire appointed by the Visitor. (3) The decision of the Tribunal shall be final, and no suit shall lie in any civil court in respect of the matters decided by the Tribunal: Provided that nothing in this sub-section shall preclude the employee from availing of the judicial remedies available under articles 32 and 226 of the Constitution. (4) Every request made by the employee under sub-section (2), shall be deemed to be a submission to arbitration upon the terms of this section within the meaning of the Arbitration and Conciliation Act, 1996 (26 of 1996). (5) The procedure for regulating the work of the Tribunal shall be prescribed by the Statutes. **39. Procedure of appeal and arbitration in disciplinary cases against students.—(1) Any student** or candidate for an examination whose name has been removed from the rolls of the University by the orders or resolution of the Vice-Chancellor, Discipline Committee or Examination Committee, as the case may be, and who has been debarred from appearing at the examinations of the University for more than one year, may, within ten days of the date of receipt of such orders or copy of such resolution by him, appeal to the Executive Council and the Executive Council may confirm, modify or reverse the decision of the Vice-Chancellor or the Committee, as the case may be. (2) Any dispute arising out of any disciplinary action taken by the University against a student shall, at the request of such student, be referred to a Tribunal of Arbitration and the provisions of sub-sections (2), (3), (4) and (5) of section 38 shall, as far as may be, apply to a reference made under this sub-section. **40. Right to appeal.—Every employee or student of the University or of a College or Institution** maintained by the University or admitted to its privileges shall, notwithstanding anything contained in this Act, have a right to appeal within such time as may be prescribed by the Statutes, to the Executive Council against the decision of any officer or authority of the University or of the Principal or the management of any College or an Institution, as the case may be, and thereupon the Executive Council may confirm, modify or reverse the decision appealed against. **41. Provident and pension funds.—(1) The University shall constitute for the benefit of its** employees such provident or pension fund or provide such insurance schemes as it may deem fit in such manner and subject to such conditions as may be prescribed by the Statutes. (2) Where such provident fund or pension fund has been so constituted, the Central Government may declare that the provisions of the Provident Funds Act, 1925 (19 of 1925) shall apply to such fund, as if it were a Government provident fund. **42. Disputes as to constitution of authorities and bodies.—If any question arises as to whether any** person has been duly elected or appointed as, or is entitled to be, a member of any authority or other body of the University, the matter shall be referred to the Visitor whose decision thereon shall be final. **43. Constitution of Committees.—Where any authority of the University is given power by this Act** or the Statutes to appoint Committees, such Committees shall, save as otherwise provided, consist of the members of the authority concerned and of such other person, if any, as the authority in each case may think fit. **44. Filling of casual vacancies.—All casual vacancies among the members (other than** _ex officio_ members) of any authority or other body of the University shall be filled, as soon as may be, by the person or body who appoints, elects or co-opts the member whose place has become vacant and person appointed, elected or co-opted to a casual vacancy shall be a member of such authority or body for the residue of the term for which the person whose place he fills would have been a member. **45. Proceedings of authorities or bodies not invalidated by vacancies.—No act or proceedings of** any authority or other body of the University shall be invalid merely by reason of the existence of a vacancy or vacancies among its members. **46. Protection of action taken in good faith.—No suit or other legal proceeding shall lie against any** officer or other employee of the University for anything which is in good faith done or intended to be done in pursuance of any of the provisions of this Act, the Statutes or the Ordinances. 14 ----- **47. Mode of proof of University record.—Notwithstanding anything contained in the Indian** Evidence Act, 1872 (1 of 1872) or in any other law for the time being in force, a copy of any receipt, application, notice, order, proceeding or resolution of any authority or other body of the University, or any other document in possession of the University, or any entry in any register duly maintained by the University, if certified by the Registrar, shall be received as _prima facie evidence of such receipt,_ application, notice, order, proceeding, resolution or document or the existence of entry in the register and shall be admitted as evidence of the matters and transactions therein where the original thereof would, if produced, have been admissible in evidence. **48. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made under this section after the expiry of three years from the commencement of this Act. (2) Every order made under sub-section (1) shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the order or both Houses agree that the order should not be made, the order shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that order. **49. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid** **before Parliament.—(1) Every Statute, Ordinance or Regulation made under this Act shall be published** in the Official Gazette. (2) Every Statute, Ordinance or Regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the Statute, Ordinance or Regulation or both Houses agree that the Statute, Ordinance or Regulation should not be made, the Statute, Ordinance or Regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that Statute, Ordinance or Regulation. (3) The power to make Statutes, Ordinances or Regulations shall include the power to give retrospective effect, from a date not earlier than the date of commencement of this Act, to the Statute, Ordinance or Regulation or any of them but no retrospective effect shall be given to any Statute, Ordinance or Regulation so as to prejudicially affect the interests of any person to whom such Statute, Ordinance or Regulation may be applicable. **50. Transitional provisions.—Notwithstanding anything contained in this Act and the Statutes,—** (a) the first Chancellor and first Vice-Chancellor shall be appointed by the Central Government in such manner and on such conditions as may be deemed fit and each of the said officer shall hold office for such term, not exceeding five years, as may be specified by the Central Government; (b) the first Registrar and the first Finance Officer shall be appointed by the Central Government and each of the said officers shall hold office for a term of three years; (c) the first Court and the first Executive Council shall consist of not more than thirty-one members and eleven members, respectively, who shall be nominated by the Central Government and shall hold office for a term of three years; (d) the first College Development Council shall consist of not more than eleven members, who shall be nominated by the Central Government and they shall hold office for a term of three years; 15 ----- (e) the first Academic Council shall consist of not more than twenty-one members, who shall be nominated by the Central Government and they shall hold office for a term of three years: Provided that if any vacancy occurs in the above offices or authorities, the same shall be filled by appointment or nomination, as the case may be, by the Central Government, and the person so appointed or nominated shall hold office for so long as the officer or member in whose place he is appointed or nominated would have held office, if such vacancy had not occurred. 16 ----- THE SCHEDULE (See section 31) THE STATUTES OF THE UNIVERSITY **1. The Chancellor.—(1) The Chancellor shall be appointed by the Visitor from a panel of not less** than three persons recommended by the Executive Council from amongst persons of eminence in the academic or public life of the country: Provided that if the Visitor does not approve of any of the persons so recommended, he may call for fresh recommendations from the Executive Council. (2) The Chancellor shall hold office for a term of five years and shall be eligible for re-appointment: Provided that notwithstanding the expiry of his term of office, the Chancellor shall continue to hold office until his successor enters upon his office. **2. The Vice-Chancellor.—(1) The Vice-Chancellor shall be appointed by the Visitor from a panel of** not less than three persons who shall be recommended by a Committee as constituted under clause (2): Provided that if the Visitor does not approve of any of the persons included in the panel, he may call for a fresh panel. (2) The Committee referred to in clause (1) shall consist of three persons, out of whom two shall be nominated by the Executive Council and one by the Visitor and the nominee of the Visitor shall be the convener of the Committee: Provided that none of whom shall be an employee of the University or a member of the Executive Council, Academic Council or member of any authority of the University or connected with an institution associated with the University. (3) The Vice-Chancellor shall be a whole-time salaried officer of the University. (4) The Vice-Chancellor shall hold office for a term of five years from the date on which he enters upon his office, or until he attains the age of sixty-five years, whichever is earlier, and he shall not be eligible for re-appointment: Provided that notwithstanding the expiry of the said period of five years, he shall continue in office until his successor is appointed and enters upon his office: Provided further that the Visitor may direct any Vice-Chancellor after his term has expired, to continue in office for such period, not exceeding a total period of one year, as may be specified by him. (5) The emoluments and other conditions of service of the Vice-Chancellor shall be as follows:— (i) the Vice-Chancellor shall be paid a monthly salary of Rs. 25,000 (fixed) per month and allowances other than house rent allowance, at the rates fixed by the Central Government from time to time, and he shall be entitled, without payment of rent, to use a furnished residence throughout his term of office and no charge shall fall on the Vice-Chancellor in respect of the maintenance of such residence. He would be entitled to free use of University Car; (ii) the Vice-Chancellor shall be entitled to such terminal benefits and allowances as may be fixed by the Executive Council with the approval of the Visitor from time to time: Provided that where an employee of the University or a College or an Institution maintained by it, or of any other University or any Institution maintained by or affiliated to such other University, is appointed as the Vice-Chancellor, he may be allowed to continue to contribute to any provident fund of which he is a member and the University shall contribute to the account of such person in that provident fund at the same rate at which the person had been contributing immediately before his appointment as the Vice-Chancellor: Provided further that where such employee had been a member of any pension scheme, the University shall make the necessary contribution to such scheme; 17 ----- (iii) the Vice-Chancellor shall be entitled to traveling allowances at such rates as may be fixed by the Executive Council; (iv) the Vice-Chancellor shall be entitled to leave on full pay at the rate of thirty days in a calendar year and the leave shall be credited to his account in advance in two half-yearly instalments of fifteen days each on the first day of January and first day of July every year: Provided that if the Vice-Chancellor assumes or relinquishes charge of the office of the Vice Chancellor during the currency of a half year, the leave shall be credited proportionately at the rate of two and-a-half days for each completed month of service; (v) in addition to the leave referred to in sub-clause (iv), the Vice-Chancellor shall also be entitled to half pay leave at the rate of twenty days for each completed year of service and this half pay leave may also be availed of as commuted leave on full pay on medical certificate: Provided that when commuted leave is availed of, twice the amount of half pay leave shall be debited against half pay leave due. (6) If the office of the Vice-Chancellor becomes vacant due to death, resignation or otherwise, or if he is unable to perform his duties due to ill health or any other cause, the senior-most Pro-Vice-Chancellor shall perform the duties of the Vice-Chancellor: Provided that if the Pro-Vice-Chancellor is not available, the senior-most Professor shall perform the duties of the Vice-Chancellor until a new Vice-Chancellor assumes office or until the existing ViceChancellor resumes to the duties of his office, as the case may be. **3. Powers and duties of Vice-Chancellor.—(1) The Vice-Chancellor shall be ex officio Chairman of** the Executive Council, the Academic Council, and the Finance Committee and shall, in the absence of the Chancellor, preside at the convocations held for conferring degrees, and at meetings of the Court. (2) The Vice-Chancellor shall be entitled to be present at and address any meeting of any authority or other body of the University. (3) It shall be the duty of the Vice-Chancellor to see that this Act, the Statutes, the Ordinances and the Regulations are duly observed and he shall have all the powers necessary to ensure such observance. (4) The Vice-Chancellor shall exercise control over the affairs of the University and shall give effect to the decisions of all the authorities of the University. (5) The Vice-Chancellor shall have all the powers necessary for the proper maintenance of discipline in the University and he may delegate any such powers to such person or persons as he deems fit. (6) The Vice-Chancellor shall have the power to convene or cause to be convened the meetings of the Executive Council, the Academic Council, the Planning Board and the Finance Committee. **4. The Pro-Vice-Chancellor.—(1) Every Pro-Vice-Chancellor shall be appointed by the Executive** Council on the recommendation of the Vice-Chancellor: Provided that where the recommendation of the Vice-Chancellor is not accepted by the Executive Council, the matter shall be referred to the Visitor who may either appoint the person recommended by the Vice-Chancellor or ask the Vice-Chancellor to recommend another person to the Executive Council: Provided further that the Executive Council may, on the recommendation of the Vice-Chancellor, appoint a Professor to discharge the duties of a Pro-Vice-Chancellor in addition to his own duties as a Professor. (2) The term of office of a Pro-Vice-Chancellor shall be such as may be decided by the Executive Council but it shall not in any case exceed five years or until the expiration of the term of office of the Vice-Chancellor, whichever is earlier: Provided that a Pro-Vice-Chancellor whose term of office has expired shall be eligible for reappointment: 18 ----- Provided further that, in any case, a Pro-Vice-Chancellor shall retire on attaining the age of sixty-five years: Provided also that the Pro-Vice-Chancellor shall, while discharging the duties of the Vice-Chancellor under clause (6) of Statute 2, continue in office notwithstanding the expiration of his term of office as Pro-Vice-Chancellor, until a new Vice-Chancellor or the existing Vice-Chancellor, as the case may be, assumes office: Provided also that when the office of the Vice-Chancellor becomes vacant and there is no Pro-Vice Chancellor to perform the functions of the Vice-Chancellor, the Executive Council may appoint a ProVice-Chancellor and the Pro-Vice-Chancellor so appointed, shall cease to hold office as such as soon as the Vice-Chancellor is appointed and enters upon his office. (3) The emoluments and other terms and conditions of service of a Pro-Vice-Chancellor shall be such as may be prescribed by the Ordinances. (4) A Pro-Vice-Chancellor shall assist the Vice-Chancellor in respect of such matters as may be specified by the Vice-Chancellor in this behalf, from time to time, and shall also exercise such powers and perform such duties as may be assigned or delegated to him by the Vice-Chancellor. **5. Deans of Faculties.—(1) Every Dean of a Faculty shall be appointed by the Vice-Chancellor from** amongst the Professors in the Faculty for a period of three years and he shall be eligible for reappointment: Provided that a Dean on attaining the age of sixty-two years shall cease to hold office as such: Provided further that if at any time there is no Professor in a Faculty, the Vice-Chancellor, or a Dean authorised by the Vice-Chancellor in this behalf, shall exercise the powers of the Dean of a Faculty. (2) When the office of the Dean is vacant or when the Dean is, by reason of illness, absence or any other cause, unable to perform duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (3) The Dean shall be the Head of the Faculty and shall be responsible for the conduct and maintenance of the standards of teaching and research in the Faculty and shall have such other functions as may be prescribed by the Ordinances. (4) The Dean shall have the right to be present and to speak at any meeting of the Committees of the Faculty, as the case may be, but shall not have the right to vote thereat unless he is a member thereof. **6. The Registrar.—(1) The Registrar shall be appointed by the Executive Council on the** recommendation of a Selection Committee constituted for the purpose and shall be a whole-time salaried officer of the University. (2) He shall be appointed for a term of five years and shall be eligible for reappointment. (3) The emoluments and other terms and conditions of service of the Registrar shall be such as may be prescribed by the Ordinances: Provided that the Registrar shall retire on attaining the age of sixty-two years: Provided further that a Registrar shall, notwithstanding his attaining the age of sixty-two years, continue in office until his successor is appointed and enters upon his office or until the expiry of a period of one year, whichever is earlier. (4) When the office of the Registrar is vacant or when the Registrar is, by reason of illness, absence or any other cause unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) (a) The Registrar shall have power to take disciplinary action against such of the employees, excluding teachers and academic staff, as may be specified in the order of the Executive Council and to suspend them pending inquiry, to administer warnings to them or to impose upon them the penalty of censure or the withholding of increment: 19 ----- Provided that no such penalty shall be imposed unless the person concerned has been given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. (b) An appeal shall lie to the Vice-Chancellor against any order of the Registrar imposing any of the penalties specified in sub-clause (a). (c) In a case where the inquiry discloses that a punishment beyond the power of the Registrar is called for, the Registrar shall, upon the conclusion of the inquiry, make a report to the Vice-Chancellor along with his recommendations: Provided that an appeal shall lie to the Executive Council against an order of the Vice-Chancellor imposing any penalty. (6) The Registrar shall be ex officio Secretary of the Court, the Executive Council and the Academic Council, but shall not be deemed to be a member of any of these authorities. (7) It shall be the duty of the Registrar— (a) to be the custodian of the records, the common seal and such other property of the University as the Executive Council shall commit to his charge; (b) to issue all notices convening meetings of the Court, the Executive Council, the Academic Council and of any Committee appointed by those authorities; (c) to keep the minutes of all the meetings of the Court, the Executive Council, the Academic Council and of any Committee appointed by those authorities; (d) to conduct the official correspondence of the Court, the Executive Council and the Academic Council; (e) to supply to the Visitor and the Chancellor copies of the agenda of the meetings of the authorities of the University as soon as they are issued and the minutes of such meetings; (f) to represent the University in suits or proceedings by or against the University, sign powers-of attorney and verify pleadings or depute his representative for the purpose; and (g) to perform such other duties as may be specified in the Statutes, the Ordinances or the Regulations or as may be required from time to time, by the Executive Council or assigned to by the Vice-Chancellor. **7. The Finance Officer.—(1) The Finance Officer shall be appointed by the Executive Council on** the recommendations of a Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. (2) The Finance Officer shall be appointed for a term of five years and shall be eligible for reappointment. (3) The emoluments and other terms and conditions of service of the Finance Officer shall be such as may be prescribed by the Ordinances: Provided that a Finance Officer shall retire on attaining the age of sixty-two years: Provided further that the Finance Officer shall, notwithstanding his attaining the age of sixty-two years, continue in office until his successor is appointed and enters upon his office or until the expiry of a period of one year, whichever is earlier. (4) When the office of the Finance Officer is vacant or when the Finance Officer is by reason of illness, absence or any other cause unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) The Finance Officer shall be _ex officio Secretary of the Finance Committee but shall not be_ deemed to be a member of such Committee. 20 ----- (6) The Finance Officer shall— (a) exercise general supervision over the funds of the University and shall advise it as regards its financial policy; and (b) perform such other financial functions as may be assigned to him by the Executive Council or as may be prescribed by the Statutes, the Ordinances or the Regulations. (7) Subject to the control of the Executive Council, the Finance Officer shall— (a) hold and manage the property and investments of the University including trust and endowed property; (b) ensure that the limits fixed by the Executive Council for recurring and non-recurring expenditure for a year are not exceeded and that all moneys are expended on the purpose for which they are granted or allotted; (c) be responsible for the preparation of annual accounts and the budget of the University and for their presentation to the Executive Council; (d) keep a constant watch on the state of the cash and balances and on the state of investment; (e) watch the progress of the collection of revenue and advise on the methods of collection employed; (f) ensure that the registers of buildings, land, furniture and equipment are maintained up-to-date and that stock-checking are conducted, of equipment and other consumable materials in all Offices, Centres, Specialised Laboratories, Colleges and Institutions maintained by the University; (g) bring to the notice of the Vice-Chancellor unauthorised expenditure and other financial irregularities and suggest disciplinary action against persons at fault; and (h) call for from any Office, Centre, Laboratory, College or Institution maintained by the University any information that he may consider necessary on the performance of his duties. (8) Any receipt given by the Finance Officer or the person or person duly authorised in this behalf by the Executive Council for any money payable to the University shall be sufficient discharge for payment of such money. **8. The Controller of Examinations.—(1) The Controller of Examinations shall be appointed by the** Executive Council on the recommendations of a Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. (2) The Controller of Examinations shall be appointed for a term of five years and shall be eligible for re-appointment. (3) The emoluments and other terms and conditions of service of the Controller of Examinations shall be such as may be prescribed by the Executive Council from time to time: Provided that the Controller of Examinations shall retire on attaining the age of sixty-two years: Provided further that the Controller of Examinations shall, notwithstanding his attaining the age of sixty-two years, continue in office until his successor is appointed and enters upon his office or until the expiry of a period of one year, whichever is earlier. (4) When the office of the Controller of Examinations is vacant or when the Controller of Examinations is, by reason of illness, absence or any other cause unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) The Controller of Examinations shall arrange for and superintend the examinations of the University in the manner prescribed by the Ordinances. 21 ----- **9. The Librarian.—(1) The Librarian shall be appointed by the Executive Council on the** recommendations of the Selection Committee constituted for the purpose and he shall be a whole-time officer of the University. (2) The Librarian shall exercise such powers and perform such duties as may be assigned to him by the Executive Council. **10. Meetings of Court.—(1) An annual meeting of the Court shall be held on a date to be fixed by** the Executive Council unless some other date has been fixed by the Court in respect of any year. (2) At an annual meeting of the Court, a report on the working of the University during the previous year, together with a statement of the receipts and expenditure, the balance-sheet as audited, and the financial estimates for the next year shall be presented. (3) A copy of the statement of receipts and expenditure, the balance-sheet and the financial estimates referred to in clause (2) shall be sent to every member of the Court at least seven days before the date of the annual meeting. (4) Special meetings of the Court may be convened by the Executive Council or the Vice-Chancellor or if there is no Vice-Chancellor, the Pro-Vice-Chancellor or if there is no Pro-Vice-Chancellor, by the Registrar. (5) Eleven members of the Court shall form a quorum for a meeting of the Court. **11. Quorum for meeting of Executive Council.—Seven members of the Executive Council shall** form a quorum for a meeting of the Executive Council. **12. Powers and functions of Executive Council.—(1) The Executive Council shall have the power** of management and administration of the revenue and property of the University and the conduct of all administrative affairs of the University not otherwise provided for. (2) Subject to the provisions of this Act, the Statutes and the Ordinances, the Executive Council shall, in addition to all other powers, vested in it, have the following powers, namely:— (i) to create teaching and academic posts, to determine the number and emoluments of such posts and to define the duties and conditions of service of Professors, Associate Professors, Assistant Professors and other academic staff and Directors of Colleges and Institutions maintained by the University: Provided that no action shall be taken by the Executive Council in respect of the number, qualifications and emoluments of teachers and academic staff otherwise than after consideration of the recommendations of the Academic Council; (ii) to appoint such Professors, Associate Professors, Assistant Professors and other academic staff, as may be necessary, and the Directors of Colleges and Institutions maintained by the University on the recommendation of the Selection Committee constituted for the purpose and to fillup the temporary vacancies therein; (iii) to create administrative, ministerial and other necessary posts and to make appointments thereto in the manner prescribed by the Ordinances; (iv) to grant leave of absence to any officer of the University other than the Chancellor and the Vice-Chancellor, and to make necessary arrangements for the discharge of the functions of such officer during his absence; (v) to regulate and enforce discipline among employees in accordance with the Statutes and the Ordinances; (vi) to manage and regulate the finances, accounts, investments, property, business and all other administrative affairs of the University, and for that purpose to appoint such agents as it may think fit; (vii) to fix limits on the total recurring and the total non-recurring expenditure for a year on the recommendations of the Finance Committee; 22 ----- (viii) to invest any money belonging to the University, including any unapplied income, in such stocks, funds, share or securities, from time to time, as it may think fit or in the purchase of immovable property in India, with the like powers of varying such investment from time to time; (ix) to transfer or accept transfers of any movable or immovable property on behalf of the University; (x) to provide buildings, premises, furniture and apparatus and other means needed for carrying on the work of the University; (xi) to enter into, vary, carry out and cancel contracts on behalf of the University; (xii) to entertain, adjudicate upon, and if thought fit, to redress any grievances of the employees and students of the University who may, for any reason, feel aggrieved; (xiii) to appoint examiners and moderators and, if necessary, to remove them, and to fix their fees, emoluments and travelling and other allowances, after consulting the Academic Council; (xiv) to select a common seal for the University and provide for the custody and use of such seal; (xv) to make such special arrangements as may be necessary for the residence of women students; (xvi) to delegate any of its powers to the Vice-Chancellor, the Pro-Vice-Chancellor, the Directors, the Registrar or the Finance Officer or such other employee or authority of the University or to a committee appointed by it as it may deem fit; (xvii) to institute fellowships, scholarships, studentships, medals and prizes; and to receive donations from the members of the general public and institutions, with due acknowledgement for establishing a Chair by contributing at least rupees one crore, in the name of the donor or in memory of any person desired; for creating foundations, not below rupees one crore in the name of the donor or in memory of any person desired; and for bearing the cost of any building or complex to the tune of not below rupees one crore in the name of the donor or in memory of any person desired; (xviii) to provide for the appointment of Visiting Professors, Emeritus Professors; Consultants and Scholars and determine the terms and conditions of such appointments; and (xix) to exercise such other powers and perform such other duties as may be conferred or imposed on it by the Act or the Statutes. **13. Quorum of meeting of Academic Council.—Nine members of the Academic Council shall form** a quorum for a meeting of the Academic Council. **14. Powers and functions of Academic Council.—Subject to the provisions of the Act, the Statutes** and the Ordinances, the Academic Council shall, in addition to all other powers vested in it, have the following powers, namely:— (a) to report on any matter referred or delegated to it by the Court or the Executive Council; (b) to make arrangements through Ordinances for the instruction and examination of persons other than those enrolled in the University; (c) to promote research within the University and to require from time to time, reports on such research; (d) to consider proposals submitted by the Faculties; (e) to appoint committees for admission to the University; (f) to recognise diplomas or degrees and other Universities and Institutions and to determine their equivalence in relation to the diplomas and degrees of the University; (g) to fix, subject to any conditions accepted by the Executive Council, the time mode and conditions of competition for fellowship, scholarships and other prizes, and to award the same; 23 ----- (h) to make recommendations to the Executive Council in regard to the appointment of examiners and if necessary, their removal and the fixation of their fees, emoluments and travelling and other expenses; (i) to make arrangements for the conduct of examinations and to fix dates for holding them; (j) to declare result of the various examinations, or to appoint committees or officers to do so and to make recommendations regarding the conferment or grant of degrees, honours, diplomas, titles and marks of honour; (k) to award stipends, scholarships, medals and prizes and to make other awards in accordance with the Regulations and such other conditions as may be attached to the awards; (l) to publish lists of prescribed or recommended text books and to publish syllabus or the prescribed courses of study; (m) to prepare such forms and registers as are, from time to time, prescribed by Regulations; and (n) to perform, in relation to academic matters, all such duties and to do all such acts as may be necessary, for proper carrying out of the provisions of this Act and the Regulations. **15. Faculties and Departments.—(1) The University shall have such Faculties as may be specified** in the Statutes. (2) Every Faculty shall have a Faculty Board and the members of the first Faculty Board shall be nominated by the Executive Council for a period of three years. (3) The composition, powers and functions of a Faculty Board shall be prescribed by the Ordinances. (4) The conduct of the meetings of a Faculty Board and the quorum required for such meetings shall be prescribed by the Ordinances. (5) (a) Every Faculty shall consist of such Departments as may be assigned to it by the Ordinances: Provided that the Executive Council may, on the recommendation of the Academic Council, establish Centres of Studies to which may be assigned such teachers of the University as the Executive Council may consider necessary. (b) Each Department shall consist of the following members, namely:— (i) Teachers of the Department; (ii) Persons conducting research in the Department; (iii) Dean of the School; (iv) Honorary Professors, if any, attached to the Department; and (v) Such other persons as may be members of the Department in accordance with the provisions of the Ordinances. **16. Board of Studies.—(1) Each Department shall have a Board of Studies.** (2) The constitution of the Board of Studies and the term of office of its members shall be prescribed by the Ordinances. (3) Subject to the overall control and supervision of the Academic Council, the functions of a Board of Studies shall be to approve subjects for research for various degrees and other requirements of research degrees and to recommend to the concerned School Board in the manner prescribed by the Ordinances— (a) courses of studies and appointment of examiners for courses, but excluding research degrees; (b) appointment of supervisors for research; and (c) measures for the improvement of the standard of teaching and research: Provided that the above functions of a Board of Studies shall, during the period of three years immediately after the commencement of the Act, be performed by the Department. 24 ----- **17. The Finance Committee.—(1) The Finance Committee shall consist of the following members,** namely:— (i) the Vice-Chancellor; (ii) the Pro-Vice-Chancellor; (iii) one person to be nominated by the Court; (iv) three persons to be nominated by the Executive Council, out of whom at least one shall be a member of the Executive Council; and (v) three persons to be nominated by the Visitor. (2) Five members of the Finance Committee shall form the quorum for a meeting of the Finance Committee. (3) All the members of the Finance Committee, other than ex officio members, shall hold office for a term of three years. (4) A member of the Finance Committee shall have the right to record a minute of dissent if he does not agree with any decision of the Finance Committee. (5) The Finance Committee shall meet at least thrice every year to examine the accounts and to scrutinise proposals for expenditure. (6) All proposals relating to creation of posts, and those items which have not been included in the Budget, shall be examined by the Finance Committee before they are considered by the Executive Council. (7) The annual accounts and the financial estimates of the University prepared by the Finance Officer shall be laid before the Finance Committee for consideration and comments and thereafter submitted to the Executive Council for approval. (8) The Finance Committee shall recommend limits for the total recurring expenditure and the total non-recurring expenditure for the year, based on the income and resources of the University (which, in the case of productive works, may include the proceeds of loans). **18. The Selection Committee.—(1) There shall be Selection Committees for making** recommendations to the Executive Council for appointment to the posts of Professor, Reader, Lecturer, Registrar, Finance Officer, Librarian and Principals of Colleges and Institutions maintained by the University. (2) The Selection Committee for appointment to the posts specified in column 1 of the Table below shall consist of the Vice-Chancellor, a nominee of the Visitor and the persons specified in the corresponding entry in column 2 of the said Table: TABLE 1 2 Professor (i) The Dean of the Faculty. (ii) The Head of the Department, if he is a Professor. (iii) Three persons not in the service of the University, nominated by the Executive Council, out of a panel of names recommended by the Academic Council for their special knowledge of, or interest in, the subject with which the Professor is concerned. Reader/Lecturer (i) The Head of the Department. (ii) One Professor nominated by the Vice-Chancellor. 25 ----- 1 2 (iii) Two persons not in the service of the University, nominated by the Executive Council, out of a panel of names recommended by the Academic Council for their special knowledge of, or interest in, the subject with which the Reader/Lecturer is concerned. Registrar/ Finance Officer (i) Two members of the Executive Council nominated by it. (ii) One person not in the service of the University nominated by the Executive Council. Librarian (i) Two persons not in the service of the University who have special knowledge of the subject of the Library Science/Library Administration, nominated by the Executive Council. (ii) One person not in the service of the University, nominated by the Executive Council. Principal of College or Institution Three persons not in the service of the University of whom two shall be nominated by the Executive Council and one by the Academic Council for their special knowledge of, or interest in, a subject in which instruction is being provided by the College or Institution. NOTE 1.—Where the appointment is being made for an inter-disciplinary project, the head of the project shall be deemed to be the Head of the Department concerned. NOTE 2.—The Professor to be nominated by the Vice-Chancellor shall be a Professor concerned with the speciality for which the selection is being made and the Vice-Chancellor shall consult the Head of the Department and the Dean of School before nominating the Professor. (3) The Vice-Chancellor, or in his absence the Pro-Vice-Chancellor, shall convene and preside at the meeting of the Selection Committee: Provided that the meeting of the Selection Committee shall be fixed after prior consultation with, and subject to the convenience of Visitor's nominee and the experts nominated by the Executive Council: Provided further that the proceedings of the Selection Committee shall not be valid unless,— (a) where the number of Visitor's nominee and the persons nominated by the Executive Council is four in all, at least three of them attend the meeting; and (b) where the number of Visitor's nominee and the persons nominated by the Executive Council is three in all, at least two of them attend the meeting. (4) The procedure to be followed by the Selection Committee shall be laid down in the Ordinances. (5) If the Executive Council is unable to accept the recommendations made by the Selection Committee, it shall record its reasons and submit the case to the Visitor for final orders. (6) Appointments to temporary posts shall be made in the manner indicated below:— (i) if the temporary vacancy is for duration longer than one academic session, it shall be filled on the advice of the Selection Committee in accordance with the procedure indicated in the foregoing clauses: Provided that if the Vice-Chancellor is satisfied that in the interests of work it is necessary to fill the vacancy, the appointment may be made on a purely temporary basis on the advice of a local Selection Committee referred to in sub-clause (ii) for a period not exceeding six months; (ii) if the temporary vacancy is for a period less than a year, an appointment to such vacancy shall be made on the recommendation of a local Selection Committee consisting of the Dean of the Faculty concerned, the Head of the Department and a nominee of the Vice-Chancellor: 26 ----- Provided that if the same person holds the offices of the Dean and the Head of the Department, the Selection Committee may contain two nominees of the Vice-Chancellor: Provided further that in the case of sudden casual vacancies of teaching posts caused by death or any other reason, the Dean may, in consultation with the Head of the Department concerned, make a temporary appointment for a month and report to the Vice-Chancellor and the Registrar about such appointment; (iii) no teacher appointed temporarily shall, if he is not recommended by a regular Selection Committee for appointment under the Statutes, be continued in service on such temporary employment, unless he is subsequently selected by a local Selection Committee or a regular Selection Committee, for a temporary or permanent appointment, as the case may be. **19. Special mode of appointment.—(1) Notwithstanding anything contained in Statute 18, the** Executive Council may invite a person of high academic distinction and professional attainments to accept a post of Professor or any other equivalent academic post in the University on such terms and conditions as it deems fit and on the person agreeing to do so appoint him to the post. (2) The Executive Council may appoint a teacher or any other academic staff working in any other University or organisation for undertaking a joint project in accordance with the manner laid down in the Ordinances. **20. Appointment for fixed tenure.—The Executive Council may appoint a person selected in** accordance with the procedure laid down in Statute 18 for a fixed tenure on such terms and conditions as it deems fit. **21. Recognised teachers.—(1) The qualifications of recognised teachers shall be such as may be** prescribed by the Ordinances. (2) All applications for the recognition of teachers shall be made in such manner as may be laid down by the Ordinances. (3) No teacher shall be recognised as a teacher except on the recommendation of a Selection Committee constituted for the purpose in the manner laid down in the Ordinances. (4) The period of recognition of a teacher shall be determined by the Ordinances made in that behalf. (5) The Academic Council may, by a special resolution passed by a majority of not less than two thirds of the members present and voting, withdraw recognition from a teacher: Provided that no such resolution shall be passed until notice in writing has been given to the person concerned calling upon him to show cause, within such time as may be specified in the notice, why such resolution should not be passed and until his objections, if any, and any evidence he may produce in support of them have been considered by the Academic Council. **22. Committees.—(1) An authority of the University may appoint as many standing or special** Committees as it may deem fit, and may appoint to such Committees persons who are not members of such authority. (2) A Committee appointed under clause (1) may deal with any subject delegated to it subject to subsequent confirmation by the authority appointing it. **23. Terms and conditions of service and code of conduct of teachers, etc.—(1) All the teachers** and other academic staff of the University shall, in the absence of any agreement to the contrary, be governed by the terms and conditions of service and code of conduct as are specified in the Statutes, the Ordinances and the Regulations. (2) The emoluments of members of the academic staff shall be such as may be prescribed by the Ordinances. (3) Every teacher and member of the academic staff of the University shall be appointed on a written contract, the form of which shall be prescribed by the Ordinances. (4) A copy of every contract referred to in clause (3) shall be deposited with the Registrar. 27 ----- **24. Terms and conditions of service and code of conduct of other employees.—(1) All the** employees of the University, other than the teachers and other academic staff shall, in the absence of any contract to the contrary, be governed by the terms and conditions of service and code of conduct as are specified in the Statutes, the Ordinances and the Regulations. (2) The manner of appointment and emoluments of employees, other than the teachers and other academic staff, shall be such as may be prescribed by the Ordinances. **25. Seniority list.—(1) Whenever, in accordance with the Statutes, any person is to hold an office or** be a member of an authority of the University by rotation according to seniority, such seniority shall be determined according to the length of continuous service of such person in his grade and in accordance with such other principles as the Executive Council may, from time to time, prescribe. (2) It shall be the duty of the Registrar to prepare and maintain in respect of each class of persons to whom the provisions of these Statutes apply, a complete and up-to-date seniority list in accordance with the provisions of clause (1). (3) If two or more persons have equal length of continuous service in a particular grade or the relative seniority of any person or persons is otherwise in doubt, the Registrar may, on his own motion and shall, at the request of any such person, submit the matter to the Executive Council whose decision thereon shall be final. **26. Removal of employees of University.—(1) Where there is an allegation of misconduct against a** teacher, a member of the academic staff or other employee of the University, the Vice-Chancellor, in the case of the teacher or a member of the academic staff, and the authority competent to appoint (hereinafter referred to as the appointing authority) in the case of other employee may, by order in writing, place such teacher, member of the academic staff or other employee, as the case may be, under suspension and shall forthwith report to the Executive Council the circumstances in which the order was made: Provided that the Executive Council may, if it is of the opinion, that the circumstances of the case do not warrant the suspension of the teacher or a member of the academic staff, revoke such order. (2) Notwithstanding anything contained in the terms of the contract of appointment or of any other terms and conditions of service of the employees, the Executive Council in respect of teachers and other academic staff, and the appointing authority in respect of other employees, shall have the power to remove a teacher or a member of the academic staff or other employee, as the case may be, on grounds of misconduct. (3) Save as aforesaid, the Executive Council, or as the case may be, the appointing authority, shall not be entitled to remove any teacher, member of the academic staff or other employee except for a good cause and after giving three months' notice or on payment of three months' salary in lieu thereof. (4) No teacher, member of the academic staff or other employee shall be removed under clause (2) or clause (3) unless he has been given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. (5) The removal of a teacher, member of the academic staff or other employee shall take effect from the date on which the order of removal is made: Provided that where the teacher, member of the academic staff or other employee is under suspension at the time of his removal, such removal shall take effect from the date on which he was placed under suspension. (6) Notwithstanding anything contained in the foregoing provisions of this Statute, a teacher, member of the academic staff or other employee may resign,— (a) if he is a permanent employee, only after giving three months' notice in writing to the Executive Council or the appointing authority, as the case may be, or by paying three months' salary in lieu thereof; 28 ----- (b) if he is not a permanent employee, only after giving one month's notice in writing to the Executive Council or, as the case may be, the appointing authority or by paying one month's salary in lieu thereof: Provided that such resignation shall take effect only on the date on which the resignation is accepted by the Executive Council or the appointing authority, as the case may be. **27. Honorary degrees.—(1) The Executive Council may, on the recommendation of the Academic** Council and by a resolution passed by a majority of not less than two-thirds of the members present and voting, make proposals to the Visitor for the conferment of honorary degrees: Provided that in case of emergency, the Executive Council may, on its own motion, make such proposals. (2) The Executive Council may, by a resolution passed by a majority of not less than two-thirds of the members present and voting, withdraw, with the previous sanction of the Visitor, any honorary degree conferred by the University. **28. Withdrawal of degrees, etc.—The Executive Council may, by a special resolution passed by a** majority of not less than two-thirds of the members present and voting, withdraw any degree or academic distinction conferred on, or any certificate or diploma granted to, any person by the University for good and sufficient cause: Provided that no such resolution shall be passed until a notice in writing has been given to that person calling upon him to show cause within such time as may be specified in the notice why such a resolution should not be passed and until his objections, if any, and any evidence he may produce in support of them, have been considered by the Executive Council. **29. Maintenance of discipline among students of University.—(1) All powers relating to the** maintenance of discipline and disciplinary action in relation to students of the University shall vest in the Vice-Chancellor. (2) The Vice-Chancellor may delegate all or any of his powers referred to in clause (1), as he deems proper, to a Pro-Vice-Chancellor and to such other officers as he may specify in this behalf. (3) Without prejudice to the generality of his powers relating to the maintenance of discipline and taking such action, as may seem to him appropriate for the maintenance of discipline, the Vice-Chancellor may, in exercise of his powers, by order, direct that any student or students be expelled, or rusticated, for a specified period or be not admitted to a course or courses of study in a College, Institution or Department or a Faculty of the University for a stated period, or be punished with fine for an amount to be specified in the order, or be debarred from taking an examination or examinations conducted by the University, College, Institution or Department or a Faculty for one or more years, or that the results of the student or students concerned in the examination or examinations in which he or they have appeared be cancelled. (4) The Principals of Colleges and Institutions, Deans of Faculties and Heads of teaching Departments in the University shall have the authority to exercise all such disciplinary powers over the students in their respective Colleges, Institutions, Faculties and teaching Departments in the University, as may be necessary for the proper conduct of such Colleges, Institutions, Faculties and teaching Departments. (5) Without prejudice to the powers of the Vice-Chancellor, the Principals and other persons specified in clause (4), detailed rules of discipline and proper conduct shall be made by the University. The Principals of Colleges, Institutions, Deans of Faculties and Heads of teaching Departments in the University may also make the supplementary rules as they deem necessary to the aforesaid purpose. (6) At the time of admission, every student shall be required to sign a declaration to the effect that he submits himself to the disciplinary jurisdiction of the Vice-Chancellor and other authorities of the University. **30. Maintenance of discipline among students of Colleges, etc.—All powers relating to discipline** and disciplinary action in relation to students of a College or an Institution not maintained by the 29 ----- University, shall vest in the Principal of the College or Institution, as the case may be, in accordance with the procedure prescribed by the Ordinances. **31. Admission of Colleges, etc., to privileges of University.—(1) Colleges and other Institutions** situated within the jurisdiction of the University may be admitted to such privileges of the University as the Executive Council and the College Development Council may decide on the following conditions, namely:— (i) every such College or Institution shall have a regularly constituted Governing Body, consisting of not more than fifteen persons approved by the Executive Council and including among others, two teachers of the University to be nominated by the Executive Council and three representatives of the teaching staff of whom the Principal of the College or Institution shall be one. The procedure for appointment of members of the Governing Body and other matters affecting the management of a College or an Institution shall be prescribed by the Ordinances: Provided that the said condition shall not apply in the case of Colleges and Institutions maintained by the Government which shall, however, have an Advisory Committee consisting of not more than fifteen persons which shall consist of among others, three teachers including the Principal of the College or Institution, and two teachers of the University nominated by the Executive Council; (ii) every such College or Institution shall satisfy the Executive Council and the College Development Council on the following matters, namely:— (a) the suitability and adequacy of its accommodation and equipment for teaching; (b) the qualifications and adequacy of its teaching staff and the conditions of their service; (c) the arrangements for the residence, welfare, discipline and supervision of students; (d) the adequacy of financial provision made for the continued maintenance of the College or Institution; and (e) such other matters as are essential for the maintenance of the standards of University education; (iii) no College or Institution shall be admitted to any privileges of the University except on the recommendation of the Academic Council made after considering the report of a Committee of Inspection appointed for the purpose by the Academic Council; (iv) Colleges and Institutions desirous of admission to any privileges of the University shall be required to intimate their intention to do so in writing so as to reach the Registrar not later than the 15th August, preceding the year from which permission applied for is to have effect; (v) a College or an Institution shall not, without the previous permission of the Executive Council, College Development Council and the Academic Council, suspend instruction in any subject or course of study which it is authorised to teach and teaches. (2) Appointment to the teaching staff and Principal of Colleges or Institutions admitted to the privileges of the University shall be made in the manner prescribed by the Ordinances: Provided that nothing in this clause shall apply to Colleges and Institutions maintained by the Government. (3) The service conditions of the administrative and other non-academic staff of every College or Institution referred to in clause (2) shall be such as may be laid down in the Ordinances: Provided that nothing in this clause shall apply to Colleges and Institutions maintained by the Government. (4) Every College or Institution admitted to the privileges of the University shall be inspected at least once in every two academic years by a Committee appointed by the Academic Council, and the report of the Committee shall be submitted to the Academic Council, which shall forward the same to the College Development Council and Executive Council with such recommendations as it may deem fit to make. 30 ----- (5) The College Development Council and the Executive Council, after considering the report and the recommendations, if any, of the Academic Council, shall forward a copy of the report to the Governing Body of the College or Institution with such remarks, if any, as they may deem fit for suitable action. (6) The Executive Council may, after consulting the College Development Council and Academic Council, withdraw any privileges granted to a College or an Institution, at any time it considers that the College or Institution does not satisfy any of the conditions on the fulfilment of which the College or Institution was admitted to such privileges: Provided that before any privileges are so withdrawn, the Governing Body of the College or Institution concerned shall be given an opportunity to represent to the Executive Council as to why such action should not be taken. (7) Subject to the conditions set forth in clause (1), the Ordinances may prescribe— (i) such other conditions as may be considered necessary; and (ii) the procedure for the admission of Colleges and Institutions to the privileges of the University and for the withdrawal of those privileges. **32. Convocations.—Convocations of the University for the conferring of degrees or for other** purposes shall be held in such manner as may be prescribed by the Ordinances. **33. Acting Chairman of meetings.—Where no provision is made for a President or Chairman to** preside over a meeting of any authority of the University or any Committee of such authority or when the President or Chairman so provided for is absent, the members present shall elect one from among themselves to preside at such meeting. **34. Resignation.—Any member, other than an** _ex officio member, of the Court, the Executive_ Council, the Academic Council or any other authority of the University or any Committee of such authority may resign by letter addressed to the Registrar and the resignation shall take effect as soon as such letter is received by the Registrar. **35. Disqualification.—(1) A person shall be disqualified for being chosen as, and for being, a** member of any of the authorities of the University,— (i) if he is of unsound mind; or (ii) if he is an undischarged insolvent; or (iii) if he has been convicted by a court of law of an offence involving moral turpitude and sentenced in respect thereof to imprisonment for not less than six months. (2) If any question arises as to whether a person is or had been subjected to any of the disqualifications mentioned in clause (1), the question shall be referred to the Visitor and his decision shall be final and no other proceedings shall lie in any civil court against such decision. **36. Residence condition for membership and office.—notwithstanding anything contained in the** Statutes, a person who is not ordinarily resident in India shall not be eligible to be an officer of the University or a member of any authority of the University. **37. Membership of authorities by virtue of membership of other bodies.—Notwithstanding** anything contained in the Statutes, a person who holds any post in the University or is a member of any authority or body of the University in his capacity as a member of a particular authority or body or as the holder of a particular appointment shall hold such office or membership only for so long as he continues to be a member of that particular authority or body or the holder of that particular appointment, as the case may be. **38. Students' Council.—(1) There shall be constituted in the University, a Students' Council for** every academic year, consisting of— (i) the Dean of Students' Welfare who shall be the Chairman of the Students' Council; 31 ----- (ii) twenty students to be nominated by the Academic Council on the basis of merit in studies, sports and extra-curricular activities; and (iii) such number of elected representatives of students as may be specified by the Academic Council: Provided that any student of the University shall have the right to bring up any matter concerning the University before the Students' Council if so permitted by the Chairman, and he shall have the right to participate in the discussions at any meeting when the matter is taken up for consideration. (2) The functions of the Students' Council shall be to make suggestions to the appropriate authorities of the University in regard to the programmes of studies, students' welfare and other matters of importance, in regard to the working of the University in general and such suggestions shall be made on the basis of consensus of opinion. (3) The Students' Council shall meet at least once in an academic year preferably in the beginning of that year. **39. Ordinances how made.—(1) The first Ordinances made under sub-section (2) of section 32 may** be amended, repealed or added to at any time by the Executive Council in the manner specified below. (2) No Ordinance in respect of the matters enumerated in sub-section (1) of section 32 shall be made by the Executive Council unless a draft of such Ordinance has been proposed by the Academic Council. (3) The Executive Council shall not have power to amend any draft of any Ordinance proposed by the Academic Council under clause (2), but may reject the proposal or return the draft to the Academic Council for re-consideration, either in whole or in part, together with any amendment which the Executive Council may suggest. (4) Where the Executive Council has rejected or returned the draft of an Ordinance proposed by the Academic Council, the Academic Council may consider the question afresh and in case the original draft is reaffirmed by a majority of not less than two-thirds of the members present and voting and more than half the total number of members of the Academic Council, the draft may be sent back to the Executive Council which shall either adopt it or refer it to the Visitor whose decision shall be final. (5) Every Ordinance made by the Executive Council shall come into effect immediately. (6) Every Ordinance made by the Executive Council shall be submitted to the Visitor within two weeks from the date of its adoption. (7) The Visitor shall have the power to direct the University within four weeks of the receipt of the Ordinance to suspend the operation of any such Ordinance and he shall, as soon as possible, inform the Executive Council about his objection to the proposed Ordinance. (8) The Visitor may, after receiving the comments of the University, either withdraw the order suspending the Ordinance or disallow the Ordinance, and his decision shall be final. **40. Regulations.—(1) The authorities of the University may make Regulations consistent with the** Act, the Statutes and the Ordinances for the following matters, namely:— (i) laying down the procedure to be observed at their meetings and the number of members required to form a quorum; (ii) providing for all matters which are required by the Act, the Statutes or the Ordinances to be prescribed by Regulations; (iii) providing for all other matters solely concerning such authorities or committees appointed by them and not provided for by the Act, the Statutes or the Ordinances. (2) Every authority of the University shall make Regulations providing for the giving of notice to the members of such authority of the dates of meetings and of the business to be considered at meetings and for the keeping of a record of the proceedings of meetings. 32 ----- (3) The Executive Council may direct the amendments in such manner as it may specify, of any Regulation made under the Statutes or the annulment of any such Regulation. **41. Delegation of powers.—Subject to the provisions of the Act and the Statutes, any officer or** authority of the University may delegate his or its powers to any other officer or authority or person under his or its respective control and subject to the condition that overall responsibility for the exercise of the powers so delegated shall continue to vest in the officer or authority delegating such powers. 33 -----

20-Dec-2007

54

The Rajiv Gandhi Institute of Petroleum Technology Act, 2007

https://www.indiacode.nic.in/bitstream/123456789/2062/1/200754.pdf

central

# THE RAJIV GANDHI INSTITUTE OF PETROLEUM TECHNOLOGY ACT, 2007 _________________ # ARRANGEMENT OF SECTIONS _________________ CHAPTER I PRELIMINARY SECTIONS 1. Short title and commencement. # 2. Declaration of Rajiv Gandhi Institute of Petroleum Technology as an institution of national importance. # 3. Definitions. CHAPTER II THE INSTITUTE 4. Incorporation of Institute. 5. Constitution of Board of Governors. 6. Term of office of, vacancies among, and allowances payable to, members of Board. 7. Vesting of properties. 8. Effect of incorporation of Institute. 9. Functions of Institute. 10. Powers of Board. 11. Institute to be open to all races, creeds and classes. 12. Teaching at the Institute. 13. Visitor. 14. Authorities of Institute. 15. Establishment of General Council. 16. Powers and functions of General Council. 17. Senate. 18. Functions of Senate. 19. President of Board. 20. Director. 21. Registrar. 22. Powers and duties of other authorities and officers. 23. Grants by Central Government. 24. Fund of Institute. 25. Setting up of endowment fund. 26. Accounts and audit. 27. Pension and provident fund. 28. Appointments. 29. Statutes. 1 ----- SECTIONS 30. Statutes how made. 31. Ordinances. 32. Ordinances how made. 33. Conduct of business by authorities of Institute. # 34. Tribunal of Arbitration. CHAPTER III MISCELLANEOUS 35. Acts and proceedings not to be invalidated by vacancies. 36. Grant of degrees, etc., by Institute. 37. Sponsored schemes. 38. Power to remove difficulties. 39. Transitional provisions. 40. Statutes, Ordinances and notifications to be published in the Official Gazette and to be laid before Parliament. 2 ----- # THE RAJIV GANDHI INSTITUTE OF PETROLEUM TECHNOLOGY ACT, 2007 ACT NO. 54 OF 2007 [20th December, 2007.] # An Act to declare the institution known as the Rajiv Gandhi Institute of Petroleum Technology to be an institution of national importance and to provide for its incorporation and for matters connected therewith. BE it enacted by Parliament in the Fifty-eighth Year of the Republic of India as follows:— CHAPTER 1 PRELIMINARY **1. Short title and commencement.—(1) This Act may be called the Rajiv Gandhi Institute of** Petroleum Technology Act, 2007. (2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act. **2. Declaration of Rajiv Gandhi Institute of Petroleum Technology as an institution of national** **importance.—Whereas the objects of the institution known as the Rajiv Gandhi Institute of Petroleum** Technology, Jais, District— Rae Bareli, Uttar Pradesh are such as to make the institution one of national importance, it is hereby declared that the institution known as the Rajiv Gandhi Institute of Petroleum Technology is an institution of national importance. **3. Definitions.—In this Act, unless the context otherwise requires,—** (a) “appointed day” means the date appointed under sub-section (2) of section (1) for coming into force of this Act; (b) “Board” means the Board of Governors of the Institute constituted under sub-section (1) of section 5; (c) “Chairperson” means the Chairperson of the General Council; (d) “Director” means the Director of the Institute appointed under section 20; (e) “fund” means the fund of the Institute to be maintained under section 24; (f) “General Council” means the General Council established under sub-section (1) of section 15; (g) “Institute” means the Rajiv Gandhi Institute of Petroleum Technology incorporated under section 4; (h) “President” means the President of the Board appointed under clause (a) of sub-section (1) of section 5; (i) “Registrar” means the Registrar of the Institute referred to in section 21; (j) “Senate” means the Senate of the Institute referred to in section 17; (k) “Society” means the Rajiv Gandhi Institute of Petroleum Technology Society, Jais District—Rae Bareli, Uttar Pradesh registered under the Societies Registration Act, 1860 (21 of 1860); and (l) “Statutes” and “Ordinances” mean, respectively, the Statutes and Ordinances of the Institute made under this Act. 3 ----- CHAPTER II THE INSTITUTE **4. Incorporation of Institute.—The Rajiv Gandhi Institute of Petroleum Technology shall be a body** corporate having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property and to contract, and shall, by that name, sue and be sued. **5. Constitution of Board of Governors.—(1) With effect from such date as the Central Government** may, by notification in the Official Gazette, appoint, there shall be constituted by the Central Government for the purposes of this Act, a Board to be known as the Board of Governors consisting of the following members, namely:— (a) the President to be appointed by the Central Government in such manner as may be provided by the Statutes: Provided that the first President shall be appointed by the Central Government on such terms and conditions as it deems fit, for a period not exceeding six months from the date the first Statutes comes into force. (b) the Director of the Institute, ex officio; (c) two persons from the Board of Directors of the promoting companies to be nominated by the Central Government. _Explanation.—For the purposes of this clause, promoting companies mean those companies_ contributing to the endowment fund referred to in section 25; (d) one Professor of the Indian Institute of Technology, Kanpur to be nominated by the Director of that Institute; (e) five eminent experts in the field of petroleum technology covering the entire hydrocarbon value chain having specialised knowledge or operational experience in respect of education, research, engineering and technology to be nominated by the General Council, in consultation with the Director of the Institute; (f) two Professors of the Institute to be nominated by the Senate of the Institute; and (g) one representative of the graduates of the Institute to be nominated by the Executive Committee of the Alumni Association. (2) The Registrar of the Institute shall act as the Secretary of the Board. (3) The Board shall ordinarily meet four times during a calendar year. **6. Term of office of, vacancies among, and allowances payable to members of Board.—(1) Save** as otherwise provided in this section, the term of office of the President or any other member of the Board, other than ex officio members shall be three years from the date of his appointment or nomination thereto. (2) An ex officio member shall cease to be a member of the Board as soon as he vacates the office by virtue of which he is a member of the Board. (3) The term of a member nominated to fill a casual vacancy shall continue for the remainder of the term of the member in whose place he has been nominated. (4) Notwithstanding anything contained in this section, an outgoing member shall, unless the Central Government otherwise directs, continue in office until another person is nominated as a member in his place. 4 ----- (5) The members of the Board shall be entitled to such allowances, if any, from the Institute, as may be provided for in the Statutes, but no member other than the member referred to in clause (f) of section 5 shall be entitled to any salary. **7. Vesting of properties.—On and from the appointed day and subject to the other provisions of this** Act, all properties which had vested in the Society immediately before that day, shall, on and from that day, vest in the Institute. **8. Effect of incorporation of Institute.—On and from the appointed day,—** (a) any reference to the Society in any contract or other instrument shall be deemed as a reference to the Institute; (b) all the rights and liabilities of the Society shall be transferred to, and be the rights and liabilities of, the Institute; and (c) every person employed by the Society immediately before the appointed day shall hold office or service in the Institute by the same tenure, at the same remuneration and upon the same terms and conditions and with the same rights and privileges as to pension, leave, gratuity, provident fund and other matters as he would have held the same if this Act had not been passed, and shall continue to be so unless and until his employment is terminated or until such tenure, remuneration and terms and conditions are duly altered by the Statutes: Provided that if the alteration so made is not acceptable to such employee, his employment may be terminated by the Institute in accordance with the terms of the contract with the employee or, if no provision is made therein in this behalf, on payment to him by the Institute of compensation equivalent to three months’ remuneration in the case of permanent employees and one month’s remuneration in the case of other employees. **9. Functions of Institute.—The Institute shall perform the following functions, namely:—** (i) nurture and promote quality and excellence in education and research in the area of petroleum and hydrocarbons; (ii) provide for programmes and courses of instruction and research leading to the award of the Bachelors, Masters and Doctoral degrees in engineering and technology, management, sciences and arts in the area of petroleum and hydrocarbons; (iii) grant, subject to such conditions as the Institute may determine, degrees, diplomas, certificates or other academic distinctions or titles at various academic levels to candidates who have attained the prescribed standard of proficiency as judged on the basis of examination or on any other basis of testing and evaluation and to withdraw any such degrees, diplomas, certificates or other academic distinctions or titles for good and sufficient reasons; (iv) confer honorary degrees or other distinctions and to institute and award fellowships, scholarships, exhibitions, prizes and medals; (v) lay down standards of admission to the Institute through an examination or any other method of testing and evaluation; (vi) fix, demand and receive fees and other charges; (vii) manage the content, quality, design and continuous evaluation of its academic and research programmes in a manner that earns accreditation of an international stature; (viii) promote research and development for the benefit of oil, gas and petrochemical industry through the integration of teaching and research; 5 ----- (ix) foster close educational and research interaction through networking with national, regional and international players in the oil, gas and petrochemical industry; (x) co-operate with educational and research institutions in any part of the world having objects wholly or partly similar to those of the Institute by exchange of teachers and scholars, conduct of joint research, undertaking sponsored research and consultancy projects, etc; (xi) organise national and international symposia, seminars and conferences in the area of petroleum and hydrocarbons; (xii) establish, maintain and manage halls, residences and hostels for students; (xiii) create academic, administrative, technical and other posts and to make appointments thereto; (xiv) lay down conditions of service including a code of conduct for teachers and other categories of employees; (xv) supervise, control and regulate the discipline of all categories of employees of the Institute and to make arrangements for promoting their health and general welfare; (xvi) supervise and regulate the discipline of students and to make arrangements for promoting their health, general welfare and cultural and corporate life; (xvii) frame Statutes and Ordinances and to alter, modify or rescind the same; (xviii) deal with any property belonging to or vested in the Institute in such manner as the Institute may deem fit for advancing its objects; (xix) receive gifts, grants, donations or benefactions from the Central and State Governments and to receive bequests, donations, grants and transfers of movable or immovable properties from testators, donors, transferors, alumni, industry or any other person; (xx) borrow money for the purposes of the Institute with or without security of the property of the Institute; (xxi) integrate new technology in the classroom to encourage student-centric learning strategies and the development of an attitude for learning; (xxii) develop and maintain an information resource centre of print and non-print knowledge resources in the field of petroleum sector covering the entire hydrocarbon value chain as well as other related areas of science and technology; (xxiii) provide for further education to the working professionals and other employees of the Institute in the advanced areas of technology relating to oil, gas and complete hydrocarbon value chain; and (xxiv) do all things, not specifically covered above, as may be necessary, incidental or conducive to the attainment of all or any of the objects of the Institute. **10. Powers of Board.—(1) Subject to the provisions of this Act, the Board shall be responsible for** the general superintendence, direction and control of the affairs of the Institute and shall exercise all the powers not otherwise provided for by this Act, the Statutes and the Ordinances, and shall have the power to review the acts of the Senate. 6 ----- (2) Without prejudice to the provisions of sub-section (1), the Board shall— (a) take decisions on questions of policy relating to the administration and working of the Institute; (b) lay down policy regarding the duration of the courses, nomenclature of the degrees and other distinctions to be conferred by the Institute; (c) institute courses of study and to lay down standards of proficiency and other academic distinctions in respect of the courses offered by the Institute; (d) lay down policy regarding the cadre structure, qualification, the method of recruitment and conditions of service of the teaching and research faculty as well as other employees of the Institute; (e) guide resource mobilisation of the Institute and to lay down policies for investment; (f) consider and approve proposals for taking loans for purposes of the Institute with or without security of the property of the Institute; (g) frame Statutes and to alter, modify or rescind the same; (h) consider and pass resolutions on the annual report, the annual accounts and the budget estimates of the Institute for the next financial year as it thinks fit together with a statement of its development plans; and (i) do all such things as may be necessary, incidental or conducive to the attainment of all or any of the aforesaid powers. (3) The Board shall have the power to appoint such committees as it considers necessary for the exercise of its powers and the performance of its duties under this Act. (4) The Board shall have the power to establish campus and academic centres at any place within or outside India: Provided that no campus or academic centre shall be established outside India without prior approval of the Central Government. (5) Notwithstanding anything contained in section 4, the Board shall not dispose of in any manner, any immovable property of the Institute without prior approval of the Central Government. (6) The Board may, through a specific resolution to this effect, delegate any of its powers and duties to the President, Director, any officer or any authority of the Institute subject to reserving the right to review the action that may be taken under such delegated authority. **11. Institute to be open to all races, creeds and classes.—(1) The Institute shall be open to persons** of either sex and of whatever race, creed, caste or class, and no test or condition shall be imposed as to religious belief or profession in admitting students, appointing teachers or employees or in any other connection whatsoever. (2) No bequest, donation or transfer of any property shall be accepted by the Institute which in the opinion of the Board involves conditions or obligations opposed to the spirit and object of this section. **12. Teaching at the Institute.—All teaching and other academic activities at the Institute shall be** conducted by or in the name of the Institute in accordance with the Statutes and the Ordinances made in this behalf. **13. Visitor.—(1) The President of India shall be the Visitor of the Institute.** (2) The Visitor may appoint one or more persons to review the work and progress of the Institute and to hold inquiries into the affairs thereof and to report thereon in such manner as the Visitor may direct. 7 ----- (3) Upon receipt of any such report, the Visitor may take such action and issue such directions as he considers necessary in respect of any of the matters dealt with in the report and the Institute shall be bound to comply with such directions. **14. Authorities of Institute.—The following shall be the authorities of the Institute, namely:—** (a) the General Council; (b) the Board of Governors; (c) the Senate; and (d) such other authorities as may be declared by the Statutes to be the authorities of the Institute. **15. Establishment of General Council.—(1) With effect from such date as the Central Government** may, by notification in the Official Gazette, appoint, there shall be established, for the purposes of this Act, a body to be known as the General Council. (2) The General Council shall consist of the following members, namely:— (a) the Secretary, Ministry of Petroleum and Natural Gas in the Central Government, _ex officio,_ who shall be the Chairperson; (b) the Chairman, Indian Oil Corporation Limited, ex officio; (c) the Chairman and Managing Director, Hindustan Petroleum Corporation Limited, ex officio; (d) the Chairman and Managing Director, Bharat Petroleum Corporation Limited, ex officio; (e) the Chairman and Managing Director, Oil and Natural Gas Corporation, ex officio; (f) the Chairman and Managing Director, Gas Authority of India Limited, ex officio; (g) the Chairman and Managing Director, Oil India Limited, ex officio; (h) the Director General of Hydrocarbons, ex officio; (i) the Principal Advisor (Energy), Planning Commission, ex officio; (j) the Executive Director, Oil Industry Safety Directorate, ex officio; (k) the Director, Indian Institute of Technology, Kanpur, ex officio; (l) the Director, University Institute of Chemical Technology, Mumbai University, ex officio; (m) the Secretary, Oil Industry Development Board, ex officio; (n) the President of the Board, ex officio; (o) the Director of the Institute, ex officio; and (p) persons, not less than two but not exceeding four, representing the private entities in the field of petroleum sector operating in the country, to be nominated by the Chairperson. (3) The Registrar of the Institute shall be the ex officio Secretary of the General Council. (4) The Chairperson shall have the power to invite any person who is not a member of the General Council to attend its meeting but such invitee shall not be entitled to vote. 8 ----- **16. Powers and functions of General Council.—Subject to the provisions of this Act, the General** Council shall have the following powers and functions, namely:— (a) review from time to time the broad policies and programmes of the institute and to suggest measures for the improvement and development thereof; (b) consider the annual statement of accounts including a balance-sheet together with the audit report thereto and the observations of the Board of Governors thereon and to suggest improvements in fiscal management of the Institute; (c) review and evaluate overall quality and effectiveness of the Institute and to advise measures for improvement of performance and for confidence-building between the Institute and its stakeholders; (d) provide credibility, aura, connectivity and contacts for the Institute especially with regard to student placement and resource mobilisation; and (e) advise the Institute and its Board in respect of the advanced areas of technology in the field of petroleum sector covering the entire hydrocarbon value chain as well as in respect of any other matter that may be referred to it for advice by the Board. **17. Senate.—The Senate of the Institute shall be the principal academic body and its composition** shall be such as may be provided by the Statutes. **18. Functions of Senate.—Subject to the provisions of this Act, the Statutes and the Ordinances, the** Senate shall have the control and general regulation, and be responsible for the maintenance of standards of instruction, education and examination in the Institute and shall exercise such other powers and perform such other duties as may be conferred or imposed upon it by the Statutes. **19. President of Board.—(1) The President shall ordinarily preside at the meetings of the Board and** at the Convocations of the Institute. (2) It shall be the duty of the President to ensure that the decisions taken by the Board are implemented. (3) The President shall exercise such other powers and perform such other duties as may be assigned to him by this Act or the Statutes. **20. Director.—(1) The Director of the Institute shall be appointed by the Central Government in such** manner and on such terms and conditions as may be provided by the Statutes: Provided that the first Director shall be appointed by the Central Government on such terms and conditions as it deems fit, for a period not exceeding six months from the date the first Statutes comes into force. (2) The Director shall be the principal academic and executive officer of the Institute and shall be responsible for the proper administration and academic performance of the Institute and for imparting of instruction and maintenance of discipline therein. (3) The Director shall submit annual reports and accounts to the Board. (4) The Director shall exercise such other powers and perform such other duties as may be assigned to him by this Act, the Statutes or the Ordinances. 9 ----- **21. Registrar.—(1) The Registrar of the Institute shall be appointed in such manner and on such** terms and conditions as may be provided by the Statutes and shall be the custodian of records, the common seal, the funds of the Institute and such other property of the Institute as the Board shall commit to his charge. (2) The Registrar shall act as the Secretary of the General Council, the Board, the Senate and such committees as may be provided by the Statutes. (3) The Registrar shall be responsible to the Director for the proper discharge of his functions. (4) The Registrar shall exercise such other powers and perform such other duties as may be assigned to him by this Act, the Statutes or by the Director. **22. Powers and duties of other authorities and officers.—The powers and duties of authorities and** officers, other than those hereinbefore mentioned, shall be determined by the Statutes. **23. Grants by Central Government.—For the purpose of enabling the institute to discharge its** functions efficiently under this Act, the Central Government may, after due appropriation made by Parliament by law in this behalf, pay to the institute in each financial year such sums of money and in such manner as it may think fit. **24. Fund of Institute.—(1) The Institute shall maintain a fund to which shall be credited—** (a) all moneys provided by the Central Government; (b) all fees and other charges; (c) all moneys received by the Institute by way of grants, gifts, donations, benefactions, bequests or transfers; and (d) all moneys received by the Institute in any other manner or from any other source. (2) All moneys credited to the fund shall be deposited in such banks or invested in such manner as may be decided by the Board. (3) The fund shall be applied towards meeting the expenses of the Institute including expenses incurred in the exercise of its powers and discharge of its duties under this Act. **25. Setting up of endowment fund.—Notwithstanding anything contained in section 24, the Institute** may,— (a) set up an endowment fund and any other fund for a specified purpose; and (b) transfer money from its fund to the endowment fund or any other fund. **26. Accounts and audit.—(1) The Institute shall maintain proper accounts and other relevant records** and prepare an annual statement of accounts, including the balance-sheet, in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India. (2) The accounts of the Institute shall be audited by the Comptroller and Auditor-General of India and any expenditure incurred by him in Connection with such audit shall be payable by the Institute to the Comptroller and Auditor-General of India. (3) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Institute shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General of India has in connection with the audit of the Government accounts, and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect the offices of the Institute. 10 ----- (4) The accounts of the Institute as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament. **27. Pension and provident fund.—(1) The Institute shall constitute for the benefit of its employees,** including the Director, such pension, insurance and provident fund scheme as it deems fit, in such manner and subject to such conditions as may be provided by the Statutes. (2) Where any such provident fund has been so constituted, the Central Government may declare that the provisions of the Provident Funds Act, 1925 (19 of 1925), shall apply to such fund as if it were a Government provident fund. **28. Appointments.—All appointments of the staff of the Institute, except that of the Director shall be** made in accordance with the procedure laid down in the Statutes,— (a) by the Board, if the appointment is made on the academic staff in the post of Assistant Professor or above or if the appointment is made on the non-academic staff in any cadre, the maximum of the pay-scale for which is the same or higher than that of Assistant Professor; and (b) by the Director, in any other case. **29. Statutes.—Subject to the provisions of this Act, the Statutes may provide for all or any of the** following matters, namely:— (a) the formation of departments of teaching and other academic units; (b) the institution of fellowships, scholarships, exhibitions, medals and prizes; (c) the classification of posts, term of office, method of appointment, powers and duties and other terms and conditions of service of the officers of the Institute including the President, the Director, the Registrar, and such other officers as may be declared as officers of the Institute by the Statutes; (d) the classification, the method of appointment and the determination of the terms and conditions of service of officers, teachers and other staff of the Institute; (e) the reservation of posts for the Scheduled Castes, the Scheduled Tribes and other categories of persons as may be determined by the Central Government; (f) the constitution of pension, insurance and provident funds for the benefit of the officers, teachers and other staff of the Institute; (g) the constitution, powers and duties of the other authorities of the Institute referred in clause (d) of section 14; (h) the delegation of power; (i) the code of conduct, disciplinary actions thereto for misconduct including removal from service of employees on account of misconduct and the procedure for appeal against the actions of an officer or authority of the Institute; (j) the conferment of honorary degrees; (k) the establishment and maintenance of halls, residences and hostels; (l) the authentication of the orders and decisions of the Board; and (m) any other matter which by this Act is to be, or may be, provided by the Statutes. 11 ----- **30. Statutes how made.—(1) The first Statutes of the Institute shall be framed by the Central** Government and a copy of the same shall be laid, as soon as may be after it is made, before each House of Parliament. (2) The Board may, from time to time, make new or additional Statutes or may amend or repeal the Statutes in the manner hereafter in this section provided. (3) A new Statute or addition to the Statutes or any amendment or repeal of a Statute shall require the previous approval of the General Council who may assent thereto or withhold assent or remit it to the Board for consideration (4) A new Statute or a Statute amending or repealing an existing Statute shall have no validity unless it has been assented to by the General Council. **31. Ordinances.—Subject to the provisions of this Act and the Statutes, the Ordinances may provide** for all or any of the following matters, namely:— (a) the admission of the students to the Institute; (b) the reservation for the Scheduled Castes, the Scheduled Tribes and other categories of persons; (c) the courses of study to be laid down for all degrees, diplomas and certificates of the Institute; (d) the conditions under which students shall be admitted to the degree, diploma and certificate courses and to the examinations of the Institute and the eligibility conditions for awarding the same; (e) the conditions of award of the fellowships, scholarships, exhibitions, medals and prizes; (f) the conditions and manner of appointment and duties of examining bodies, examiners and moderators; (g) the conduct of examinations; (h) the maintenance of discipline among the students of the institute; (i) the fees to be charged for courses of study at the Institute and for admission to the examinations; (j) the conditions of residence of students of the Institute and the levying of the fees for residence in the halls and hostels and of other charges; and (k) any other matter which by this Act or the Statutes is to be, or may be, provided for by the Ordinances. **32. Ordinances how made.—(1) Save as otherwise provided in this section, Ordinances shall be made** by the Senate. (2) All Ordinances made by the Senate shall have effect from such date as it may direct, but every Ordinance so made shall be submitted, as soon as may be, to the Board and shall be considered by the Board at its next succeeding meeting. (3) The Board shall have power by resolution to modify or cancel any such Ordinance and such Ordinance shall from the date of such resolution stand modified accordingly or cancelled, as the case may be. **33. Conduct of business by authorities of Institute.—The authorities of the Institute may have their** own rules of procedure, consistent with the provisions of this Act, the Statutes and the Ordinances for the conduct of their own business and that of the committees, if any, appointed by them and not provided for by this Act, the Statutes or the Ordinances. 12 ----- **34. Tribunal of Arbitration.—(1) Any dispute arising out of a contract between the Institute and any** of its employees shall, at the request of the employee concerned or at the instance of the Institute, be referred to a Tribunal of Arbitration consisting of one member appointed by the Institute, one member nominated by the employee, and an umpire appointed by the Visitor. (2) The decision of the Tribunal of Arbitration shall be final. (3) No suit or proceeding shall lie in any court in respect of any matter which is required by sub-section (1) to be referred to the Tribunal of Arbitration. (4) The Tribunal of Arbitration shall have power to regulate its own procedure. (5) Nothing in any law for the time being in force relating to arbitration shall apply to arbitrations under this section. CHAPTER III MISCELLANEOUS **35. Acts and proceedings not to be invalidated by vacancies.—No act of the Institute or the** General Council or Board or Senate or any other body set up under this Act or the Statutes, shall be invalid merely by reasons of— (a) any vacancy in, or defect in the constitution thereof, or (b) any defect in the election, nomination or appointment of a person acting as a member thereof, or (c) any irregularity in its procedure not affecting the merits of the case. **36. Grant of degrees, etc., by Institute.—Notwithstanding anything contained in the University** Grants Commission Act, 1956 (3 of 1956), or in any other law for the time being in force, the Institute shall have power to grant degrees and other academic distinctions and titles under this Act. **37. Sponsored schemes.—Notwithstanding anything in this Act, whenever the Institute receives** funds from any Government, the University Grants Commission or any other agency including industry sponsoring a research scheme, a consultancy assignment, a teaching programme or a chaired professorship or a scholarship, to be executed or endowed at the Institute,— (a) the amount received shall be kept by the Institute separately from the fund of the Institute and utilised only for the purpose of the scheme; and (b) the staff required to execute the same shall be recruited in accordance with the terms and conditions stipulated by the sponsoring organisation: Provided that any money remaining unutilised under clause (a) shall be transferred to the endowment fund created under section 25. **38. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions or give such directions not inconsistent with the provisions of this Act, as appears to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made after the expiry of two years from the appointed day. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. 13 ----- **39. Transitional provisions.—Notwithstanding anything contained in this Act,—** (a) the Board of Governors of the Society functioning as such immediately before the commencement of this Act shall continue to so function until a new Board is constituted for the Institute under this Act, but on the constitution of a new Board under this Act, the members of the Board holding office before such constitution shall cease to hold office; and (b) until the first Statutes and the Ordinances are made under this Act, the Statutes and the Ordinances of the Rajiv Gandhi Institute of Petroleum Technology Society, or notification as in force, immediately before the commencement of this Act, shall continue to apply to the Institute in so far as they are not inconsistent with the provisions of this Act. **40. Statutes, Ordinances and notifications to be published in the Official Gazette and to be laid** **before Parliament.—(1) Every Statute and every Ordinance made or notification issued under this Act** shall be published in the Official Gazette. (2) Every Statute and every Ordinance made or notification issued under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the Statute, Ordinance or notification or both Houses agree that the Statute, Ordinance or notification should not be made or issued, the Statute, Ordinance or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that Statute, Ordinance or notification. (3) The power to make the Statutes, Ordinances or notification shall include the power to give retrospective effect from a date not earlier than the date of commencement of this Act, to the Statutes, Ordinances, notifications or any of them but no retrospective effect shall be given to any Statute, Ordinance or notification so as to prejudicially affect the interests of any person to whom such Statute, Ordinance or notification may be applicable. _________ 14 -----

25-Dec-2007

55

The Armed Forces Tribunal Act, 2007

https://www.indiacode.nic.in/bitstream/123456789/2077/1/A2007-55.pdf

central

# THE ARMED FORCES TRIBUNAL ACT, 2007 __________ # ARRANGEMENT OF SECTIONS __________ CHAPTER I PRELIMINARY SECTIONS 1. Short title and commencement. 2. Applicability of the Act. 3. Definitions. CHAPTER II ESTABLISHMENT OF TRIBUNAL AND BENCHES THEREOF 4. Establishment of Armed Forces Tribunal. 5. Composition of Tribunal and Benches thereof. 6. Qualifications for appointment of Chairperson and other Members. 7. Appointment of Chairperson and other Members. 8. Term of office. 9. Resignation and removal. 9A. Qualifications, terms and conditions of service of Chairperson and Member. 10. Salaries, allowances and other terms and conditions of service of Chairperson and other Members. 11. Prohibitions as to holding of offices, etc., by Chairperson or Member on ceasing to be such Chairperson or Member. 12. Financial and administrative powers of Chairperson. 13. Staff of the Tribunal. CHAPTER III JURISDICTION, POWERS AND AUTHORITY OF THE TRIBUNAL 14. Jurisdiction, powers and authority in service matters. 15. Jurisdiction, powers and authority in matters of appeal against court martial. 16. Re-trial. 17. Powers of the Tribunal on appeal under section 15. 18. Cost. 19. Power to punish for contempt. 20. Distribution of business among the Benches. CHAPTER IV PROCEDURE 21. Application not to be admitted unless other remedies exhausted. 22. Limitation. 23. Procedure and powers of the Tribunal. 24. Term of sentence and its effect on appeal. 25. Right of applicant or of appellant to take assistance of a legal practitioner and of Government, etc., to appoint counsel. 26. Condition as to making of interim order. 1 ----- SECTIONS 27. Power of Chairperson to transfer cases from one Bench to another. 28. Decision to be by majority. 29. Execution of order of Tribunal. CHAPTER V APPEAL 30. Appeal to Supreme Court. 31. Leave to appeal. 32. Condonation. CHAPTER VI MISCELLANEOUS 33. Exclusion of jurisdiction of civil courts. 34. Transfer of pending cases. 35. Provision for filing of certain appeals. 36. Proceedings before Tribunal to be judicial proceedings. 37. Members and staff of Tribunal to be public servants. 38. Protection of action taken in good faith. 39. Act to have overriding effect. 40. Power to remove difficulties. 41. Power of Central Government to make rules. 42. Power to make rules retrospectively. 43. Laying of rules. 2 ----- # THE ARMED FORCES TRIBUNAL ACT, 2007 ACT NO. 55 OF 2007 [25th December, 2007.] # An Act to provide for the adjudication or trial by Armed Forces Tribunal of disputes and complaints with respect to commission, appointments, enrolment and conditions of service in respect of persons subject to the Army Act, 1950, the Navy Act, 1957 and the Air Force Act, 1950 and also to provide for appeals arising out of orders, findings or sentences of court martial held under the said Acts and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-eighth Year of the Republic of India as follows:— CHAPTER 1 PRELIMINARY **1. Short title and commencement.—(1) This Act may be called the Armed Forces Tribunal Act,** 2007. (2) It shall come into force on such date[1] as the Central Government may, by notification, appoint. **2. Applicability of the Act.—(1) The provisions of this Act shall apply to all persons subject to the** Army Act, 1950 (46 of 1950), the Navy Act, 1957 (62 of 1957) and the Air Force Act, 1950 (45 of 1950). (2) This Act shall also apply to retired personnel subject to the Army Act, 1950 (46 of 1950) or the Navy Act, 1957 (62 of 1957) or the Air Force Act, 1950 (45 of 1950), including their dependants, heirs and successors, in so far as it relates to their service matters. **3. Definitions.—In this Act, unless the context otherwise requires,—** (a) “Administrative Member” means a member of the Tribunal who is not a Judicial Member within the meaning of clause (g); (b) “application” means an application made under sub-section (2) of section 14; (c) “appointed day” means the date with effect from which the Tribunal is established by notification under section 4; (d) “Bench” means a Bench of the Tribunal; (e) “Chairperson” means the Chairperson of the Tribunal; (f) “court martial” means a court martial held under the Army Act, 1950 (46 of 1950) or the Navy Act, 1957 (62 of 1957) including the disciplinary courts constituted under the Act or the Air Force Act, 1950 (45 of 1950); (g) “Judicial Member” means a member of the Tribunal appointed as such under this Act, and includes the Chairperson, who possesses any of the qualifications specified in sub-section (2) of section 6; (h) “Member” means a member (whether Judicial or Administrative) of the Tribunal and includes the Chairperson; (i) “military custody” means the arrest or confinement of a person according to the usages of the service and includes naval or air force custody; (j) “notification” means a notification published in the Official Gazette; (k) “prescribed” means prescribed by rules made under this Act; (l) “President” means the President of India; (m) “rules” means the rules made under this Act; 1. 15th June, 2008, vide notification No. S.O. 14(E), dated 13th June, 2008, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 3 ----- (n) “service” means the service within or outside India; (o) “service matters”, in relation to the persons subject to the Army Act, 1950 (46 of 1950), the Navy Act, 1957 (62 of 1957) and the Air Force Act, 1950 (45 of 1950), mean all matters relating to the conditions of their service and shall include— (i) remuneration (including allowances), pension and other retirement benefits; (ii) tenure, including commission, appointment, enrolment, probation, confirmation, seniority, training, promotion, reversion, premature retirement, superannuation, termination of service and penal deductions; (iii) summary disposal and trials where the punishment of dismissal is awarded; (iv) any other matter, whatsoever, but shall not include matters relating to— (i) orders issued under section 18 of the Army Act, 1950 (46 of 1950), sub-section (1) of section 15 of the Navy Act, 1957 (62 of 1957) and section 18 of the Air Force Act, 1950 (45 of 1950); and (ii) transfers and postings including the change of place or unit on posting whether individually or as a part of unit, formation or ship in relation to the persons subject to the Army Act, 1950 (46 of 1950), the Navy Act, 1957 (62 of 1957) and the Air Force Act, 1950 (45 of 1950); (iii) leave of any kind; (iv) summary court martial except where the punishment is of dismissal or imprisonment for more than three months; (p) “summary disposals and trials” means summary disposals and trials held under the Army Act, 1950 (46 of 1950), the Navy Act, 1957 (62 of 1957) and the Air Force Act, 1950 (45 of 1950); (q) “Tribunal” means the Armed Forces Tribunal established under section 4. CHAPTER II ESTABLISHMENT OF TRIBUNAL AND BENCHES THEREOF **4. Establishment of Armed Forces Tribunal.—The Central Government shall, by notification,** establish a Tribunal to be known as the Armed Forces Tribunal to exercise the jurisdiction, powers and authority conferred on it by or under this Act. **5. Composition of Tribunal and Benches thereof.—(1) The Tribunal shall consist of a Chairperson,** and such number of Judicial and Administrative Members as the Central Government may deem fit and, subject to the other provisions of this Act, the jurisdiction, powers and authority of the Tribunal may be exercised by Benches thereof. (2) Subject to the other provisions of this Act, a Bench shall consist of one Judicial Member and one Administrative Member. (3) Notwithstanding anything contained in sub-section (1), the Chairperson— (a) may, in addition to discharging the functions of a Judicial Member of the Bench to which he is appointed, discharge the functions of an Administrative Member of any other Bench; (b) may transfer a Member from one Bench to another Bench; (c) may, for the purpose of securing that any case or cases, which having regard to the nature of the questions involved, requires or require, in his opinion, or under the rules made under this Act, to be decided by a Bench composed of more than two members, issue such general or special orders, as he may deem fit: 4 ----- Provided that every Bench constituted in pursuance of this clause shall include at least one Judicial Member and one Administrative Member. (4) Subject to the other provisions of this Act, the Benches of the Tribunal shall ordinarily sit at Delhi (which shall be known as the Principal Bench), and at such other places as the Central Government may, by notification, specify. **6. Qualifications for appointment of Chairperson and other Members.—(1) A person shall not be** qualified for appointment as the Chairperson unless he is a retired Judge of the Supreme Court or a retired Chief Justice of a High Court. (2) A person shall not be qualified for appointment as a Judicial Member unless he is or has been a Judge of a High Court. (3) A person shall not be qualified for appointment as an Administrative Member unless— (a) he has held or has been holding the rank of Major General or above for a total period of at least three years in the Army or equivalent rank in the Navy or the Air Force; and (b) he has served for not less than one year as Judge Advocate General in the Army or the Navy or the Air Force, and is not below the rank of Major General, Commodore and Air Commodore respectively. _Explanation.—When a serving person is appointed as an Administrative Member, he shall have_ retired from service prior to assuming such appointment. **7. Appointment of Chairperson and other Members.—(1) Subject to the provisions of this section,** the Chairperson and other Members of the Tribunal shall be appointed by the President: Provided that no appointment under this sub-section shall be made except after consultation with the Chief Justice of India. (2) The President may appoint one or more Members of the Tribunal to be the Vice-Chairperson, or, as the case may be, the Vice-Chairpersons, thereof. **8. Term of office.—The Chairperson or a Member shall hold office for a term of four years from the** date on which he enters upon his office and shall be eligible for re-appointment: Provided that no Chairperson shall hold office as such after he has attained,— (a) in case he has been a Judge of the Supreme Court, the age of seventy years; and (b) in case he has been the Chief Justice of a High Court, the age of sixty-five years: Provided further that no other Member shall hold office as such Member after he has attained the age of sixty-five years. **9. Resignation and removal.—(1) The Chairperson or a Member may, by notice in writing under his** hand addressed to the President, resign his office: Provided that the Chairperson or a Member shall, unless he is permitted by the President to relinquish his office sooner, continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is the earliest. (2) The Chairperson or a Member shall not be removed from his office except by an order made by the President on the ground of proved misbehaviour or incapacity after an inquiry made by a sitting Judge of the Supreme Court in which such Chairperson or other Member had been informed of the charges against him and given a reasonable opportunity of being heard in respect of those charges. (3) The Central Government may, by rules, regulate the procedure for the investigation of misbehaviour or incapacity of the Chairperson or other Member referred to in sub-section (2). 5 ----- 1[9A. Qualifications, terms and conditions of service of Chairperson and Member.— Notwithstanding anything contained in this Act, the qualifications, appointment, term of office, salaries and allowances, resignation, removal and terms and conditions of service of the Chairperson and other Members of the Appellate Tribunal appointed after the commencement of Part XIV of Chapter VI of the Finance Act, 2017 (7 of 2017), shall be governed by the provisions of section 184 of that Act: Provided that the Chairperson and Member appointed before the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall continue to be governed by the provisions of this Act, and the rules made thereunder as if the provisions of section 184 of the Finance Act, 2017 had not come into force.] **10. Salaries, allowances and other terms and conditions of service of Chairperson and other** **Members.—The salaries and allowances payable to, and the other terms and conditions of service** (including pension, gratuity and other retirement benefits) of, the Chairperson and other Members shall be such as may be prescribed by the Central Government: Provided that neither the salary and allowances nor the other terms and conditions of service of the Chairperson and other Members shall be varied to their disadvantage after their appointment. **11. Prohibitions as to holding of offices, etc., by Chairperson or Member on ceasing to be such** **Chairperson or Member.—On ceasing to hold office—** (a) the Chairperson shall be ineligible for further employment either under the Government of India or under the Government of a State; (b) a Member other than the Chairperson shall, subject to the provisions of this Act, be eligible for appointment as a member of any other Tribunal but not for any other employment either under the Government of India or under the Government of a State; and (c) the Chairperson or other Members shall not appear, act or plead before the Tribunal. **12. Financial and administrative powers of Chairperson.—The Chairperson shall exercise such** financial and administrative powers over the Benches as may be prescribed: Provided that the Chairperson shall have the authority to delegate such of his financial and administrative powers as he may think fit to any other Member or any officer of the Tribunal, subject to the conditions that such Member or officer shall, while exercising such delegated powers, continue to act under the direction, control and supervision of the Chairperson. **13. Staff of the Tribunal.—(1) The Central Government shall determine the nature and categories of** the officers and other employees required to assist the Tribunal in the discharge of its functions and provide the Tribunal with such officers and other employees as it may think fit. (2) The salaries and allowances payable to, and the other terms and conditions of service of the officers and other employees of the Tribunal shall be such as may be prescribed. (3) The officers and other employees of the Tribunal shall discharge their functions under the general superintendence of the Chairperson. CHAPTER III JURISDICTION, POWERS AND AUTHORITY OF THE TRIBUNAL **14. Jurisdiction, powers and authority in service matters.—(1) Save as otherwise expressly** provided in this Act, the Tribunal shall exercise, on and from the appointed day, all the jurisdiction, powers and authority, exercisable immediately before that day by all courts (except the Supreme Court or a High Court exercising jurisdiction under articles 226 and 227 of the Constitution) in relation to all service matters. 1. Ins. by Act 7 of 2017, s. 181 (w.e.f. 26-5-2017). 6 ----- (2) Subject to the other provisions of this Act, a person aggrieved by an order pertaining to any service matter may make an application to the Tribunal in such form and accompanied by such documents or other evidence and on payment of such fee as may be prescribed. (3) On receipt of an application relating to service matters, the Tribunal shall, if satisfied after due inquiry, as it may deem necessary, that it is fit for adjudication by it, admit such application; but where the Tribunal is not so satisfied, it may dismiss the application after recording its reasons in writing. (4) For the purpose of adjudicating an application, the Tribunal shall have the same powers as are vested in a Civil Court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit in respect of the following matters, namely— (a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of documents; (c) receiving evidence on affidavits; (d) subject to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872 (1 of 1872), requisitioning any public record or document or copy of such record or document from any office; (e) issuing commissions for the examination of witnesses or documents; (f) reviewing its decisions; (g) dismissing an application for default or deciding it ex parte; (h) setting aside any order of dismissal of any application for default or any order passed by it _ex parte; and_ (i) any other matter which may be prescribed by the Central Government. (5) The Tribunal shall decide both questions of law and facts that may be raised before it. **15. Jurisdiction, powers and authority in matters of appeal against court martial.—(1) Save as** otherwise expressly provided in this Act, the Tribunal shall exercise, on and from the appointed day, all the jurisdiction, powers and authority exercisable under this Act in relation to appeal against any order, decision, finding or sentence passed by a court martial or any matter connected therewith or incidental thereto. (2) Any person aggrieved by an order, decision, finding or sentence passed by a court martial may prefer an appeal in such form, manner and within such time as may be prescribed. (3) The Tribunal shall have power to grant bail to any person accused of an offence and in military custody, with or without any conditions which it considers necessary: Provided that no accused person shall be so released if there appears reasonable ground for believing that he has been guilty of an offence punishable with death or imprisonment for life. (4) The Tribunal shall allow an appeal against conviction by a court martial where— (a) the finding of the court martial is legally not sustainable due to any reason whatsoever; or (b) the finding involves wrong decision on a question of law; or (c) there was a material irregularity in the course of the trial resulting in miscarriage of justice, but, in any other case, may dismiss the appeal where the Tribunal considers that no miscarriage of justice is likely to be caused or has actually resulted to the appellant: Provided that no order dismissing the appeal by the Tribunal shall be passed unless such order is made after recording reasons therefor in writing. (5) The Tribunal may allow an appeal against conviction, and pass appropriate order thereon. 7 ----- (6) Notwithstanding anything contained in the foregoing provisions of this section, the Tribunal shall have the power to— (a) substitute for the findings of the court martial, a finding of guilty for any other offence for which the offender could have been lawfully found guilty by the court martial and pass a sentence afresh for the offence specified or involved in such findings under the provisions of the Army Act, 1950 (46 of 1950) or the Navy Act, 1957 (62 of 1957) or the Air Force Act, 1950 (45 of 1950), as the case may be; or (b) if sentence is found to be excessive, illegal or unjust, the Tribunal may— (i) remit the whole or any part of the sentence, with or without conditions; (ii) mitigate the punishment awarded; (iii) commute such punishment to any lesser punishment or punishments mentioned in the Army Act, 1950 (46 of 1950), the Navy Act, 1957 (62 of 1957) and the Air Force Act, 1950 (45 of 1950), as the case may be; (c) enhance the sentence awarded by a court martial: Provided that no such sentence shall be enhanced unless the appellant has been given an opportunity of being heard; (d) release the appellant, if sentenced to imprisonment, on parole with or without conditions; (e) suspend a sentence of imprisonment; (f) pass any other order as it may think appropriate. (7) Notwithstanding any other provisions in this Act, for the purposes of this section, the Tribunal shall be deemed to be a criminal court for the purposes of sections 175, 178, 179, 180, 193, 195, 196 or 228 of the Indian Penal Code (45 of 1860) and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). **16. Re-trial.—(1) Except as provided by this Act, where the conviction of a person by court martial** for an offence has been quashed, he shall not be liable to be tried again for that offence by a court martial or by any other Court. (2) The Tribunal shall have the power of quashing a conviction, to make an order authorising the appellant to be retried by court martial, but shall only exercise this power when the appeal against conviction is allowed by reasons only of evidence received or available to be received by the Tribunal under this Act and it appears to the Tribunal that the interests of justice require that an order under this section should be made: Provided that an appellant shall not be retried under this section for an offence other than— (a) the offence for which he was convicted by the original court martial and in respect of which his appeal is allowed; (b) any offence for which he could have been convicted at the original court martial on a charge of the first-mentioned offence; (c) any offence charged in the alternative in respect of which the court martial recorded no finding in consequence of convicting him of the first-mentioned offence. (3) A person who is to be retried under this section for an offence shall, if the Tribunal or the Supreme Court so directs, whether or not such person is being tried or retried on one or more of the original charges, no fresh investigation or other action shall be taken under the relevant provision of the Army Act, 1950 (46 of 1950) or the Navy Act, 1957 (62 of 1957) or the Air Force Act, 1950 (45 of 1950) as the case may be, or rules and regulations made thereunder, in relation to the said charge or charges on which he is to be retried. **17. Powers of the Tribunal on appeal under section 15.—The Tribunal, while hearing and deciding** an appeal under section 15, shall have the power— 8 ----- (a) to order production of documents or exhibits connected with the proceedings before the court martial; (b) to order the attendance of the witnesses; (c) to receive evidence; (d) to obtain reports from Court martial; (e) order reference of any question for enquiry; (f) appoint a person with special expert knowledge to act as an assessor; and (g) to determine any question which is necessary to be determined in order to do justice in the case. **18. Cost.—While disposing of the application under section 14 or an appeal under section 15, the** Tribunal shall have power to make such order as to costs as it may deem just. **19. Power to punish for contempt.—(1) Any person who is guilty of contempt of the Tribunal by** using any insulting or threatening language, or by causing any interruption or disturbance in the proceedings of such Tribunal shall, on conviction, be liable to suffer imprisonment for a term which may extend to three years. (2) For the purposes of trying an offence under this section, the provisions of sections 14, 15, 17, 18 and 20 of the Contempt of Courts Act, 1971 (70 of 1971) shall mutatis mutandis apply, as if a reference therein to— (a) Supreme Court or High Court were a reference to the Tribunal; (b) Chief Justice were a reference to the Chairperson; (c) Judge were a reference to the Judicial or Administrative Member of the Tribunal; (d) Advocate-General were a reference to the prosecutor; and (e) Court were a reference to the Tribunal. **20. Distribution of business among the Benches.—The Chairperson may make provisions as to the** distribution of the business of the Tribunal among its Benches. CHAPTER IV PROCEDURE **21. Application not to be admitted unless other remedies exhausted.—(1) The Tribunal shall not** ordinarily admit an application unless it is satisfied that the applicant had availed of the remedies available to him under the Army Act, 1950 (46 of 1950) or the Navy Act, 1957 (62 of 1957) or the Air Force Act, 1950 (45 of 1950), as the case may be, and respective rules and regulations made thereunder. (2) For the purposes of sub-section (1), a person shall be deemed to have availed of all the remedies available to him under the Army Act, 1950 (46 of 1950) or the Navy Act, 1957 (62 of 1957) or the Air Force Act, 1950 (45 of 1950), and respective rules and regulations— (a) if a final order has been made by the Central Government or other authority or officer or other person competent to pass such order under the said Acts, rules and regulations, rejecting any petition preferred or representation made by such person; (b) where no final order has been made by the Central Government or other authority or officer or other person competent to pass such order with regard to the petition preferred or representation made by such person, if a period of six months from the date on which such petition was preferred or representation was made has expired. 9 ----- **22. Limitation.—The Tribunal shall not admit an application—** (a) in a case where a final order such as is mentioned in clause (a) of sub-section (2) of section 21 has been made unless the application is made within six months from the date on which such final order has been made; (b) in a case where a petition or a representation such as is mentioned in clause (b) of sub-section (2) of section 21 has been made and the period of six months has expired thereafter without such final order having been made; (c) in a case where the grievance in respect of which an application is made had arisen by reason of any order made at any time during the period of three years immediately preceding the date on which jurisdiction, powers and authority of the Tribunal became exercisable under this Act, in respect of the matter to which such order relates and no proceedings for the redressal of such grievance had been commenced before the said date before the High Court. (2) Notwithstanding anything contained in sub-section (1), the Tribunal may admit an application after the period of six months referred to in clause (a) or clause (b) of sub-section (1), as the case may be, or prior to the period of three years specified in clause (c), if the Tribunal is satisfied that the applicant had sufficient cause for not making the application within such period. **23. Procedure and powers of the Tribunal.—(1) The Tribunal shall not be bound by the procedure** laid down in the Code of Civil Procedure, 1908 (5 of 1908) but shall be guided by the principles of natural justice and subject to the other provisions of this Act and any rules made thereunder, the Tribunal shall have the power to lay down and regulate its own procedure including the fixing of place and time of its inquiry and deciding whether to sit in public or in camera. (2) The Tribunal shall decide every application made to it as expeditiously as possible after a perusal of documents, affidavits and written representations and after hearing such oral arguments as may be advanced: Provided that where the Tribunal deems it necessary, for reasons to be recorded in writing, it may allow oral evidence to be adduced. (3) No adjournment shall be granted by the Tribunal without recording the reasons justifying the grant of such adjournment and cost shall be awarded, if a party requests for adjournment more than twice. **24. Term of sentence and its effect on appeal.—(1) The term of any sentence passed by the** Tribunal under clause (a) of sub-section (6) of section 15 of this Act shall, unless the Tribunal otherwise directs, be reckoned to commence on the day on which it would have commenced under the Army Act, 1950 (46 of 1950), the Navy Act, 1957 (62 of 1957) or the Air Force Act, 1950 (45 of 1950), as the case may be, under which the court martial against which the appeal was filed, had been held. (2) Subject to the provisions of sub-section (3), any sentence passed on an appeal from the Tribunal to the Supreme Court in substitution for another sentence shall, unless the Supreme Court otherwise directs, be reckoned to commence on the day on which the original sentence would have commenced. (3) Where a person who is undergoing sentence is granted stay of the operation of the said sentence, either by suspension or otherwise, pending an appeal, the period during which he is so released due to the sentence having been so stayed, shall be excluded in computing the term for which he is so sentenced by the Tribunal or the Supreme Court, as the case may be. **25. Right of applicant or of appellant to take assistance of a legal practitioner and of** **Government, etc., to appoint counsel.—(1) A person making an application or preferring an appeal to** the Tribunal may either appear in person or take the assistance of a legal practitioner of his choice to present his case before the Tribunal. (2) The Central Government or the competent authority, as may be prescribed, may authorise one or more legal practitioners or any of its law officers to act as counsel and every person so authorised by it may present its case with respect to any application or appeal, as the case may be, before the Tribunal. **26. Condition as to making of interim order.—(1) Notwithstanding anything contained in any other** provisions of this Act or in any other law for the time being in force, no interim order (whether by way of 10 ----- injunction or stay or in any other manner) shall be made on an application or appeal, or in any proceeding relating thereto, unless— (a) copies of such application or appeal, as the case may be, and all documents in support of the plea for such interim order are furnished to the party against whom such application or appeal, as the case may be, is made or proposed to be made; and (b) opportunity of being heard is given to the other party in the matter: Provided that the Tribunal may dispense with the requirements of clauses (a) and (b) and make an interim order as an exceptional measure if it is satisfied, for reasons to be recorded in writing, that it is necessary so to do for preventing any loss being caused to the applicant or to the appellant, as the case may be. (2) Where any party against whom an interim order, whether by way of injunction or stay or in any other manner, is made on an application or appeal or in any proceeding relating thereto under sub-section (1), without— (a) furnishing to such party copies of such application or appeal, as the case may be, and all documents in support of the plea for such interim order; and (b) giving such party an opportunity of being heard, and making an application to the Tribunal for the vacation of such order and furnishing a copy of such application or appeal, as the case may be, to the party in whose favour such order has been made or the counsel of such party, the Tribunal shall dispose of the application within a period of fourteen days from the date on which it is received or from the date on which the copy of such application is so furnished, whichever is later, or where the Tribunal is closed on the last day of that period, before the expiry of the next working day; and if the application is not so disposed of, the interim order shall, on the expiry of that period, or, as the case may be, the expiry of the said next working day, stand vacated. **27. Power of Chairperson to transfer cases from one Bench to another.—On the application of** any of the parties and after notice to the parties concerned, and after hearing such of them as he may desire to be heard, or on his own motion without such notice, the Chairperson may transfer any case pending before one Bench for disposal, to any other Bench. **28. Decision to be by majority.—If the Members of a Bench differ in opinion on any point, the point** shall be decided according to the opinion of the majority, if there is a majority, but if the Members are equally divided, they shall state the point or points on which they differ and make a reference to the Chairperson who shall either hear the point or points himself or refer the case for hearing on such point or points by one or more of the Members of the Tribunal and such point or points shall be decided according to the opinion of the majority of the Members of the Tribunal who have heard the case, including those who first heard it. **29. Execution of order of Tribunal.—Subject to the other provisions of this Act and the rules made** thereunder, the order of the Tribunal disposing of an application shall be final and shall not be called in question in any Court and such order shall be executed accordingly. CHAPTER V APPEAL **30. Appeal to Supreme Court.—(1) Subject to the provisions of section 31, an appeal shall lie to the** Supreme Court against the final decision or order of the Tribunal (other than an order passed under section 19): Provided that such appeal is preferred within a period of ninety days of the said decision or order: Provided further that there shall be no appeal against an interlocutory order of the Tribunal. (2) An appeal shall lie to the Supreme Court as of right from any order or decision of the Tribunal in the exercise of its jurisdiction to punish for contempt: 11 ----- Provided that an appeal under this sub-section shall be filed in the Supreme Court within sixty days from the date of the order appealed against. (3) Pending any appeal under sub-section (2), the Supreme Court may order that— (a) the execution of the punishment or the order appealed against be suspended; or (b) if the appellant is in confinement, he be released on bail: Provided that where an appellant satisfies the Tribunal that he intends to prefer an appeal, the Tribunal may also exercise any of the powers conferred under clause (a) or clause (b), as the case may be. **31. Leave to appeal.—(1) An appeal to the Supreme Court shall lie with the leave of the Tribunal;** and such leave shall not be granted unless it is certified by the Tribunal that a point of law of general public importance is involved in the decision, or it appears to the Supreme Court that the point is one which ought to be considered by that Court. (2) An application to the Tribunal for leave to appeal to the Supreme Court shall be made within a period of thirty days beginning with the date of the decision of the Tribunal and an application to the Supreme Court for leave shall be made within a period of thirty days beginning with the date on which the application for leave is refused by the Tribunal. (3) An appeal shall be treated as pending until any application for leave to appeal is disposed of and if leave to appeal is granted, until the appeal is disposed of; and an application for leave to appeal shall be treated as disposed of at the expiration of the time within which it might have been made, but it is not made within that time. **32. Condonation.—The Supreme Court may, upon an application made at any time by the appellant,** extend the time within which an appeal may be preferred by him to that Court under section 30 or sub-section (2) of section 31. CHAPTER VI MISCELLANEOUS **33. Exclusion of jurisdiction of civil courts.—On and from the date from which any jurisdiction,** powers and authority becomes exercisable by the Tribunal in relation to service matters under this Act, no Civil Court shall have, or be entitled to exercise, such jurisdiction, power or authority in relation to those service matters. **34. Transfer of pending cases.—(1) Every suit, or other proceeding pending before any court** including a High Court or other authority immediately before the date of establishment of the Tribunal under this Act, being a suit or proceeding the cause of action whereon it is based, is such that it would have been within the jurisdiction of the Tribunal, if it had arisen after such establishment within the jurisdiction of such Tribunal, stand transferred on that date to such Tribunal. (2) Where any suit, or other proceeding stands transferred from any court including a High Court or other authority to the Tribunal under sub-section (1),— (a) the court or other authority shall, as soon as may be, after such transfer, forward the records of such suit, or other proceeding to the Tribunal; (b) the Tribunal may, on receipt of such records, proceed to deal with such suit, or other proceeding, so far as may be, in the same manner as in the case of an application made under subsection (2) of section 14, from the stage which was reached before such transfer or from any earlier stage or de novo as the Tribunal may deem fit. **35. Provision for filing of certain appeals.—Where any decree or order has been made or passed by** any court (other than a High Court) or any other authority in any suit or proceeding before the establishment of the Tribunal, being a suit or proceeding the cause of action whereon it is based, is such that it would have been, if it had arisen after such establishment, within the jurisdiction of the Tribunal, and no appeal has been preferred against such decree or order before such establishment or if preferred, the same is pending for disposal before any court including High Court and the time for preferring such 12 ----- appeal under any law for the time being in force had not expired before such establishment, such appeal shall lie to the Tribunal, within ninety days from the date on which the Tribunal is established, or within ninety days from the date of receipt of the copy of such decree or order, whichever is later. **36. Proceedings before Tribunal to be judicial proceedings.—All proceedings before the Tribunal** shall be deemed to be judicial proceedings within the meaning of sections 193, 219 and 228 of the Indian Penal Code (45 of 1860). **37. Members and staff of Tribunal to be public servants.—The Chairperson, other Members and** the officers and other employees provided under section 13 to the Tribunal shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **38. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall** lie against the Central Government or against the Chairperson or any other Member or any other person authorised by the Chairperson, for anything which is done in good faith or intended to be done in pursuance of this Act or any rule or order made thereunder in the discharge of official duties. **39. Act to have overriding effect.—The provisions of this Act shall have effect notwithstanding** anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law other than this Act. **40. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for removing the difficulty: Provided that no order shall be made under this section after the expiry of two years from the date of commencement of this Act. (2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament. **41. Power of Central Government to make rules.—(1) The Central Government may, by** notification, make rules for the purposes of carrying out the provisions of this Act. (2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the case or cases which shall be decided by a Bench composed of more than two Members under clause (c) of sub-section (3) of section 5; (b) the procedure under sub-section (3) of section 9 for the investigation of misbehaviour or incapacity of Chairperson or other Member; (c) the salaries and allowances payable to, and the other terms and conditions of service of the Chairperson and other Members under section 10; (d) the financial and administrative powers which the Chairperson may exercise over the Benches of the Tribunal under section 12; (e) the salaries and allowances payable to, and other terms and conditions of service of the officers and other employees of the Tribunal under sub-section (2) of section 13; (f) the form in which an application may be made under sub-section (2) of section 14, the documents and other evidence by which such application shall be accompanied and the fee payable in respect of the filing of such application or for the service of execution of processes; (g) the other matter which may be prescribed under clause (i) of sub-section (4) of section 14; (h) the form and manner in which an appeal may be filed, the fee payable thereon and the time within which such appeal may be filed under sub-section (2) of section 15; (i) the rules subject to which the Tribunal shall have power to regulate its own procedure under sub-section (1) of section 23; 13 ----- (j) competent authority who may authorise legal practitioners or law officers to act as counsel under sub-section (2) of section 25; (k) any other matter which may be prescribed or in respect of which rules are required to be made by the Central Government. **42. Power to make rules retrospectively.—The powers to make rules under section 41 shall include** the power to make such rules or any of them retrospectively from a date not earlier than the date on which this Act shall come into operation but no such retrospective effect shall be given to any such rule so as to prejudicially affect the interests of any person to whom such rule may be applicable. **43. Laying of rules.—Every rule made under this Act shall be laid, as soon as may be after it is** made, before each House of Parliament while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. 14 -----

29-Dec-2007

56

The Maintenance and Welfare of Parents and Senior Citizens Act, 2007

https://www.indiacode.nic.in/bitstream/123456789/2033/1/200756.pdf

central

# THE MAINTENANCE AND WELFARE OF PARENTS AND SENIOR CITIZENS ACT, 2007 ``` __________________ ARRANGEMENT OF SECTIONS __________________ ``` CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent, application and commencement. 2. Definitions. 3. Act to have overriding effect. CHAPTER II MAINTENANCE OF PARENTS AND SENIOR CITIZENS 4. Maintenance of parents and senior citizens. 5. Application for maintenance. 6. Jurisdiction and procedure. 7. Constitution of Maintenance Tribunal. 8. Summary procedure in case of inquiry. 9. Order for maintenance. 10. Alteration in allowance. 11. Enforcement of order of maintenance. 12. Option regarding maintenance in certain cases. 13. Deposit of maintenance amount. 14. Award of interest where any claim is allowed. 15. Constitution of Appellate Tribunal. 16. Appeals. 17. Right to legal representation. 18. Maintenance Officer. CHAPTER III ESTABLISHMENT OF OLDAGE HOMES 19. Establishment of old age homes. CHAPTER IV PROVISIONS FOR MEDICAL CARE OF SENIOR CITIZEN 20. Medical support for senior citizens. CHAPTER V PROTECTION OF LIFE AND PROPERTY OF SENIOR CITIZEN 21. Measures for publicity, awareness, etc., for welfare of senior citizens. 22. Authorities who may be specified for implementing the provisions of this Act. 23. Transfer of property to be void in certain circumstances. ----- CHAPTER VI OFFENCES AND PROCEDURE FOR TRIAL SECTIONS 24. Exposure and abandonment of senior citizen. 25. Cognizance of offences. CHAPTER VII MISCELLANEOUS 26. Officers to be public servants. 27. Jurisdiction of civil courts barred. 28. Protection of action taken in good faith. 29. Power to remove difficulties. 30. Power of Central Government to give directions. 31. Power of Central Government to review. 32. Power of State Government to make rules. ----- # THE MAINTENANCE AND WELFARE OF PARENTS AND SENIOR CITIZENS ACT, 2007 ACT NO. 56 OF 2007 [29 December, 2007.] # An Act to provide for more effective provisions for the maintenance and welfare of parents and senior citizens guaranteed and recognised under the Constitution and for matters connected therewith or incidental thereto. BEit enacted by Parliament in the Fifty-eighth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent, application and commencement.—(1)** This Act may be called the Maintenance and Welfare of Parents and SeniorCitizens Act, 2007. (2) It extends to the whole of India [1]*** and it applies also it citizens of India outside India. (3) It shall come into force in a State on such date as the State Government may, by notification in the Official Gazette, appoint. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “children” includes son, daughter, grandson and grand-daughter but does not include a minor; (b) “maintenance” includes provisions for food, clothing, residence and medical attendance and treatment; (c) “minor” means a person who, under the provisions of the Majority Act, 1875 (9 of 1875)is deemed not to have attained the age of majority; (d) “parent” means father or mother whether biological, adoptive or step father or step mother, as the case may be, whether or not the father or the mother is a senior citizen; (e) “prescribed” means prescribed by rules made by the State Government under this Act; (f) “property” means property of any kind, whether movable or immovable, ancestral or self acquired, tangible or intangible and includes rights or interests in such property; (g) “relative” means any legal heir of the childless senior citizen who is not a minor and is in possession of or would inherit his property after his death; (h) “senior citizen” means any person being a citizen of India, who has attained the age of sixty years or above; (i) “State Government”, relation to a Union territory, means the administrator thereof appointed under article 239 of the Constitution; (j) “Tribunal” means the Maintenance Tribunal constituted under section 7; (k) “welfare” means provision for food, health care, recreation centres and other amenities necessary for the senior citizens. **3. Act to have overriding effect.—The provisions of this Act shall have effect notwithstanding** anything inconsistent therewith contained in any enactment other than this Act, or in any instrument having effect by virtue of any enactment other than this Act. 1. The words “except the State of Jammu and Kashmir” omitted by Act 34 of 2019, s. 95 and the Fifth Schedule (w.e.f. 31-102019). ----- CHAPTER II MAINTAINANCE OF PARENTS AND SENIOT CITIZENS **4. Maintenance of parents and senior citizens.—(1) A senior citizen including parent who is** unableto maintain himself fromhis own earning or out of the property owned by him, shall be entitled to make an application under section 5 in case of— (i) parent or grand-parent, against one or more of his children not being a minor; (ii) a childless senior citizen, against such of his relative referred to in clause (g) of section 2. (2) The obligation of the children or relative, as the case may be, to maintain a senior citizen extends to the needs of such citizen so that senior citizen may lead a normal life. (3) The obligation of the children to maintain his or her parent extends to the needs of such parent either father or mother or both, as the case may be, so that such parent may lead a normal life. (4) Any person being a relative of a senior citizen and having sufficient means shall maintain such senior citizen provided he is in possession of the property of such citizen or he would inherit the property of such senior citizen: Provided that where more than one relatives are entitled to inherit the property of a senior citizen, the maintenance shall be payable by such relative in the proportion in which they would inherit his property. **5. Application for maintenance.—(1) An application for maintenance under section 4, may be** made— **(a) by a senior citizen or a parent, as the case may be; or** (b) if he is incapable, by any other person or organisation authorised by him; or (c) the Tribunal may take cognizance suomotu. _Explanation.—For the purposes of this section “organisation” means any voluntary association_ registered under the Societies Registration Act, 1860 (21 of 1860) or any other law for the time being in force. (2) The Tribunal may, during the pendency of the proceeding regarding monthly allowance for the maintenance under this section, order such children or relative to make a monthly allowance for the interim maintenance of such senior citizen including parent and to pay the same to such senior citizen including parent as the Tribunal may from time to time direct. (3) On receipt of an application for maintenance under subsection (1), after giving notice of the application to the children or relative and after giving the parties an opportunity of being heard, hold an inquiry for determining the amount of maintenance. (4) An application filed under sub-section (2) for the monthly allowance for the maintenance and expenses for proceeding shall be disposed of within ninety days from the date of the service of notice of the application to such person: Provided that the Tribunal may extend the said period, once for a maximumperiod of thirty days in exceptional circumstances for reasons to be recorded inwriting. (5)An application for maintenance under sub-section (1) may be filled against one or more persons: Provided that such children or relative may implead the other person liable tomaintain parent in the application for maintenance. (6) Where a maintenance order was made against more than one person, the death of one of them does not affect the liability of others to continue paying maintenance. (7) Any such allowance for the maintenance and expenses for proceeding shall be payable from the date of the order, or, if so ordered, from the date of the application for maintenance or expenses of proceeding, as the case may be. ----- (8) If, children or relative so ordered fail, without sufficient cause to comply withthe order, any such Tribunal may, for every breach of the order, issue a warrant for levying the amount due in the manner provided for levying fines, and may sentence such person for the whole, or any part of each month’s allowance for the maintenance and expenses of proceeding, as the case be, remaining unpaid after the execution of the warrant, to imprisonment for a term which may extend to one month or until payment if sooner made whichever is earlier: Provided that no warrant shall be issued for the recovery of any amount due under this section unless application be made to the Tribunal to levy such amount within a period of three months from the date on which it became due. **6. Jurisdiction and procedure.—(1) The proceedings under section 5 may be taken against any** children or relative in any district— (a) where he resides or last resided; or (b) where children or relative resides. (2) On receipt of the application under section 5, the Tribunal shall issues aprocess for procuring the presence of children or relative against whom the application is filed. (3) For securing the attendance of children or relative the Tribunal shall have the power of a Judicial Magistrate of first class as provided under the Code of Criminal Procedure, 1973 (2 of 1974). (4) All evidence to such proceedings shall be taken in the presence of the children or relative against whom an order for payment of maintenance is proposed to be made, and shall be recorded in the manner prescribed for summons cases: Provided that if the Tribunal is satisfied that the children or relative against whom an order for payment of maintenance is proposed to be made is willfully avoiding service, or willfully neglecting to attend the Tribunal, the Tribunal may proceed to hear and determine the case ex parte. (5) Where the children or relative is residing out of India, the summons shall be served by the Tribunal through such authority, as the Central Government may by notification in the official Gazette, specify in this behalf. (6) The Tribunal before hearing an application under section 5 may, refer the same to a Conciliation Officer and such Conciliation Officer shall submit his findings within one month and if amicable settlement has been arrived at, the Tribunal shall pass an order to that effect. _Explanation.—For the purposes of this sub-section “Conciliation Officer” means any person or_ representative of an organisation referred to in _Explanation to sub-section (1) of section 5 or the_ Maintenance Officers designated by the State Government under sub-section (1) of section 18 or any other person nominated by the Tribunal for this purpose. **7. Constitution of Maintenance Tribunal.—(1) The State Government shall within a period of six** months from the date of the commencement of this Act, by notification in Official Gazette, constitute for each Sub-division one or more Tribunals as may be specified in the notification for the purpose of adjudicating and deciding upon the order for maintenance under section 5. (2) The Tribunal shall be presided over by an officer not below the rank of Sub- Divisional Officer of a State. (3) Where two or more Tribunals are constituted for any area, the State Government may, by general or special order, regulate the distribution of business among them. **8. Summary procedure in case of inquiry.—(1) In holding any inquiry under section 5, the** Tribunal may, subject to anyrules that may be prescribed by the State Government in this behalf, follow such summary procedure as it deems fit. (2) The Tribunal shall have all the powers of a Civil Court for the purpose of taking evidence on oath and of enforcing the attendance of witnesses and of compelling the discovery and production of documents and material objects and for such other purposes as may be prescribed; and the Tribunal shall be deemed to be a Civil Court for all the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). ----- (3) Subject to any rule that may be made in this behalf, the Tribunal may, forthe purpose of adjudicating and deciding upon any claim for maintenance, choose one or more persons possessing special knowledge of any matter relevant to the inquiry to assist it in holding the inquiry. **9. Order for maintenance.—(1) If children or relatives, as the case may be, neglect or refuse** tomaintain asenior citizen being unable to maintain himself, the Tribunal may, on being satisfied of such neglect or refusal, order such children or relatives to make a monthly allowance at such monthly rate for the maintenance of such senior citizen, as the Tribunal may deem fit and to pay the same to such senior citizen as the Tribunal may, from time to time, direct. (2) The maximum maintenance allowance which may be ordered by suchTribunal shall be such as may be prescribed by the State Government which shall not exceed ten thousand rupees per month. **10. Alteration in allowance.—(1) On proof of misrepresentation or mistake of fact or a change in** thecircumstances of any person, receiving a monthly allowance under section 9, for the maintenance ordered under that section to pay a monthly allowance for the maintenance, the Tribunal may make such alteration, as it thinks fit, in the allowance for the maintenance. (2) Where it appears to the Tribunal that, in consequence of any decision of a competent Civil Court, any order made under section 9 should be cancelled or varied, it shall cancel the order or, as the case may be, vary the same accordingly. **11. Enforcement of order of maintenance.—(1) A copy of the order of maintenance and including** the orderregarding expenses of proceedings, as the case may be, shall be given without payment of any fee to the senior citizen or to parent, as the case may be, in whose favour it is made and such order may be enforced by any Tribunal in any place where the person against whom it is made, such Tribunal on being satisfied as to the identity of the parties and the non-payment of the allowance, or as the case may be, expenses, due. (2) A maintenance order made under this Act shall have the same force andeffect as an order passed under Chapter IX of the Code of Criminal Procedure, 1973 (2 of 1974) and shall be executed in the manner prescribed for the execution of such order by that Code. **12. Option regarding maintenance in certain cases.—Notwithstanding anything contained in** Chapter IX of the Code of Criminal Procedure 1973 (2 of 1974) where a senior citizen or a parent is entitled for maintenance under the said Chapter and also entitled for maintenance under this Act may, without prejudice to the provisions of Chapter IX of the said Code, claim such maintenance under either of those Acts but not under both. **13. Deposit of maintenance amount.—When an order is made under this Chapter, the children or** relative who is required to pay any amount in terms of such order shall within thirty days of the date of announcing the order by the Tribunal, deposit the entire amount ordered in such manner as the Tribunal may direct. **14. Award of interest where any claim is allowed.—Where any Tribunal makes an order for** maintenance made under this Act, such Tribunal may direct that in addition to the amount of maintenance, simple interest shall also be paid at such rate and from such date not earlier than the date of making the application as may be determined by the Tribunal which shall not be less than five per cent. and not more than eighteen per cent.: Provided that where any application for maintenance under Chapter IX of the Code of Criminal Procedure, 1973 (2 of 1974) is pending before a Court at the commencement of this Act, then the Court shall allow the withdrawal of such application on the request of the parent and such parent shall be entitled to file an application for maintenance before the Tribunal. **15. Constitution of Appellate Tribunal.—(1) The State Government may, by notification in the** Official Gazette, constitute one Appellate Tribunal for each district to hear the appeal against the order of the Tribunal. (2) The Appellate Tribunal shall be presided over by an officer not below the rank of District Magistrate. **16. Appeals.—(1) Any senior citizen or a parent, as the case may be, aggrieved by an order of a** Tribunal may, within sixty days from the date of the order, prefer an appeal to the Appellate Tribunal: ----- Provided that on appeal, the children or relative who is required to pay any amount in terms of such maintenance order shall continue to pay to such parent the amount so ordered, in the manner directed by the Appellate Tribunal: Provided further that the Appellate Tribunal may, entertain the appeal after the expiry of the said period of sixty days, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal in time. (2) On receipt of an appeal, the Appellate Tribunal shall, cause a notice to be served upon the respondent. (3) The Appellate Tribunal may call for the record of proceedings from the Tribunal against whose order the appeal is preferred. (4) The Appellate Tribunal may, after examining the appeal and the records called for either allow or reject the appeal. (5) The Appellate Tribunal shall, adjudicate and decide upon the appeal filed against the order of the Tribunal and the order of the Appellate Tribunal shall be final: Provided that no appeal shall be rejected unless an opportunity has been given to both the parties of being heard in person or through a dully authorised representative. (6) The Appellate Tribunal shall make an endeavour to pronounce its order in writing within one month of the receipt of an appeal. (7) A copy of every order made under sub-section (5) shall be sent to both the parties free of cost. **17. Right to legal representation.—Notwithstanding anything contained in any law, no party to a** proceeding before a Tribunal or Appellate Tribunal shall be represented by a legal practitioner. **18. Maintenance Officer.—(1) The State Government shall designate the District Social Welfare or** anofficer not below the rank of a District Social Welfare Officer, by whatever name called as Maintenance Officer. (2) The Maintenance Officer referred to in sub-section (1), shall represent a parent if he so desires, during the proceedings of the Tribunal, or the Appellate Tribunal, as the case may be. CHAPTER III ESTABLISHMENT OF OLDAGE HOMES **19. Establishment of old age homes.—(1) The State Government may establish and maintain such** number of old age homes at accessible places, as it may deem necessary, in a phased manner, beginning with at least one in each district to accommodate in such homes a minimum of one hundred fifty senior citizens who are indigent. (2) The State Government may, prescribe a scheme for management of oldage homes, including the standards and various types of services to be provided by them which are necessary for medical care and means of entertainment to the inhabitants of such homes. _Explanation.—For the purposes of this section, “indigent” means any senior citizen who is not having_ sufficient means, as determined by the State Government, from time to time, to maintain himself. CHAPTER IV PROVISIONS FOR MEDICAL CARE OF SENIOR CITIZEN **20. Medical support for senior citizens.—The State Government shall ensure that,—** (i) the Government hospitals or hospitals funded fully or partially by the Government shall provide beds for all senior citizens as far as possible; (ii) separate queues be arranged for senior citizens; (iii) facility for treatment of chronic, terminal and degenerative diseases is expanded for seniorcitizens; (iv) research activities for chronic elderly diseases and ageing expanded; ----- (v) there are earmarked facilities for geriatric patients in every district hospital dully headed by a medical officer with experience in geriatric care. CHAPTER V PROTECTION OF LIFE AND PROPERTY OF SENIOR CITIZEN **21. Measures for publicity, awareness, etc., for welfare of senior citizens.—The State** Government shall, take all measures to ensure that— (i) the provisions of this Act are given wide publicity through public media including the television, radio and the print, at regular intervals; (ii) the Central Government and State Government Officers, including the police officers and the members of the judicial service, are given periodic sensitization and awareness training on the issues relating to this Act; (iii) effective co-ordination between the services provided by the concerned Ministries or Departments dealing with law, home affairs, health and welfare, to address the issues relating to the welfare of the senior citizens and periodical review of the same is conducted. **22. Authorities who may be specified for implementing the provisions of this Act.—(1) The State** Government may, confer such powers and impose such duties ona District Magistrate as may be necessary, to ensure that the provisions of this Act are properly carried out and the District Magistrate may specify the officer, subordinate to him, who shall exercise all or any of the powers, and perform all or any of the duties, so conferred or imposed and the local limits within which such powers or duties shall be carried out by the officer as may be prescribed. (2) The State Government shall prescribe a comprehensive action plan for providing protection of life and property of senior citizens. **23. Transfer of property to be void in certain circumstances.—(1) Where any senior citizen who,** after the commencement of this Act, hastransferred by way of gift or otherwise, his property, subject to the condition that the transferee shall provide the basic amenities and basic physical needs to the transferor and such transferee refuses or fails to provide such amenities and physical needs, the said transfer of property shall be deemed to have been made by fraud or coercion or under undue influence and shall at the option of the transferor be declared void by the Tribunal. (2) Where any senior citizen has a right to receive maintenance out of an estate and such estate or part thereof is transferred, the right to receive maintenance may be enforced against the transferee if the transferee has notice of the right, or if the transfer is gratuitous; but not against the transferee for consideration and without notice of right. (3) If, any senior citizen is incapable of enforcing the rights under sub-sections (1) and (2), action may be taken on his behalf by any of the organisation referred to in _Explanation to sub-section (1) of_ section 5. CHAPTER VI OFFENCES AND PROCEDURE FOR TRIAL **24.** **Exposure and abandonment of senior citizen.—Whoever, having the care or protection of** senior citizen leaves, such senior citizen in any place with the intention of wholly abandoning such senior citizen, shall be punishable with imprisonment of either description for a term which may extend to three months or fine which may extend to five thousands rupees or with both. **25. Cognizance of offences.—(1) Notwithstanding anything contained in the Code of Criminal** Procedure, 1973 (2 of 1974), every offence under this Act shall be cognizable and bailable. (2) An offence under this Act shall be tried summarily by a Magistrate. ----- CHAPTER VII MISCELLANEOUS **26. Officers to be public servants.—Every officer or staff appointed to exercise functions under this** Act shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860). **27. Jurisdiction of civil courts barred.—No Civil Court shall have jurisdiction in respect of any** matter to which any provision of this Act applies and no injunction shall be granted by any Civil Court in respect of anything which is done or intended to be done by or under this Act. **28. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall** lie against the CentralGovernment, the State Governments or the local authority or any officer of the Government in respect of anything which is done in good faith or intended to be done in pursuance of this Act and any rules or orders made thereunder. **29. Power to remove difficulties.—If any difficulty arises in giving effect to the provisions of this** Act, the State Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made after the expiry of a period of twoyears from the date of the commencement of this Act. **30. Power of Central Government to give directions.—The Central Government may give** directions to State Governments as to the carrying into execution of the provisions of this Act. **31. Power of Central Government to review.—The Central Government may make periodic review** and monitor the progress of the implementation of the provisions of this Act by the State Governments. **32. Power of State Government to make rules.—(1) The State Government may, by notification in** the Official Gazette, makerules for carrying out the purposes of this Act. (2) Without prejudice to the generalityof the foregoing power, such rules mayprovide for— (a) the manner of holding inquiry under section 5 subject to such rules as may be prescribed under sub-section (1) of section 8; (b) the power and procedure of the Tribunal for other purposes under sub-section (2) of section 8; (c) the maximum maintenance allowance which may be ordered by the Tribunal under subsection (2) of section 9; (d) the scheme for management of old age homes, including the standards and various types of services to be provided by them which are necessary for medical care and means of entertainment to the inhabitants of such homes under sub-section (2) of section 19; (e) the powers and duties of the authorities for implementing the provisions of this Act, under sub-section (1) of section 22; (f) a comprehensive action plan for providing protection of life and property of senior citizens under sub-section (2) of section 22; (g) any other matter which is to be, or may be, prescribed. (3) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of State Legislature, where it consists of two Houses or where such legislature consists of one House, before that House. -----

16-May-2008

19

The Jawaharlal Institute of Post-Graduate Medical Education and Research, Puducherry, Act, 2008

https://www.indiacode.nic.in/bitstream/123456789/2089/5/A2008-19.pdf

central

# THE JAWAHARLAL INSTITUTE OF POST-GRADUATE MEDICAL EDUCATION AND RESEARCH, PUDUCHERRY ACT, 2008 __________ # ARRANGEMENT OF SECTIONS __________ SECTIONS 1. Short title and commencement. 2. Declaration of Jawaharlal Institute of Post-Graduate Medical Education and Research, Puducherry, as an institution of national importance. 3. Definitions. 4. Incorporation of Institute. 5. Composition of Institute. 6. Term of office of, and vacancies among members. 7. President of Institute, his powers and functions. 8. Allowances of President and members. 9. Meetings of Institute. 10. Governing Body and other committees of Institute. 11. Staff of Institute. 12. Objects of Institute. 13. Functions of Institute. 14. Vesting of property. 15. Payment to Institute. 16. Fund of Institute. 17. Budget of Institute. 18. Accounts and audit. 19. Annual report. 20. Pension and provident funds. 21. Authentication of orders and instruments of Institute. 22. Acts and proceedings not to be invalidated by vacancies, etc. 23. Grant of medical degrees, diplomas, etc., by Institute. 24. Recognition of medical qualifications granted by Institute. 25. Control by Central Government. 26. Resolution of differences. 27. Returns and information. 28. Transfer of service of existing employees. 29. Power to make rules. 30. Power to make regulations. 31. Laying of rules and regulations before Parliament. 32. Power to remove difficulties. 1 ----- # THE JAWAHARLAL INSTITUTE OF POST-GRADUATE MEDICAL EDUCATION AND RESEARCH, PUDUCHERRY ACT, 2008 ACT NO. 19 OF 2008 [16th May, 2008.] # An Act to declare the Institution known as the Jawaharlal Institute of Post-Graduate Medical Education and Research, Puducherry, to be an institution of national importance and to provide for its incorporation and matters connected therewith. BE it enacted by Parliament in the Fifty-ninth Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the Jawaharlal Institute of** Post-Graduate Medical Education and Research, Puducherry Act, 2008. (2) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Declaration of Jawaharlal Institute of Post-Graduate Medical Education and Research,** **Puducherry, as an institution of national importance.—Whereas the objects of the institution known** as the Jawaharlal Institute of Post-Graduate Medical Education and Research, Puducherry in the Union territory of Puducherry are such as to make the institution one of national importance, it is hereby declared that the institution known as the Jawaharlal Institute of Post-Graduate Medical Education and Research, Puducherry is an institution of national importance. **3. Definitions.—In this Act, unless the context otherwise requires,—** (a) “Fund” means the Fund of the Institute referred to in section 16; (b) “Governing Body” means the Governing Body of the Institute; (c) “Institute” means the institution known as the Jawaharlal Institute of Post-Graduate Medical Education and Research, Puducherry, incorporated under this Act; (d) “member” means a member of the Institute; (e) “prescribed” means prescribed by rules made under this Act; (f) “specified” means specified by regulations made under this Act. **4. Incorporation of Institute.—The Jawaharlal Institute of Post-Graduate Medical Education and** Research, Puducherry, an Institute functioning under the Union Ministry of Health and Family Welfare, is hereby constituted a body corporate by the name aforesaid and as such body corporate, it shall have perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property and to contract and shall, by that name, sue and be sued. **5. Composition of Institute.—(1) The Institute shall consist of the following members, namely:—** (a) Secretary to the Government of India in the Ministry or Department of Health and Family Welfare, ex officio; (b) the Vice-Chancellor of the Puducherry University, ex officio; (c) the Vice-Chancellor of the Tamil Nadu Dr. M.G.R. Medical University, Tamil Nadu, _ex officio;_ (d) the Director-General of Health Services, Government of India, ex officio; (e) the Director of the Institute, ex officio; (f) Chief Secretary, Government of Puducherry, ex officio; 1. 14th July, 2008, vide notification No. S.O. 1672(E), dated 14th July, 2008, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 2 ----- (g) Secretary to the Government of India or his nominee (not below the rank of Joint Secretary) in the Department of Expenditure, Ministry of Finance, ex officio; (h) Secretary to the Government of India or his nominee (not below the rank of Joint Secretary) in the Department of Higher Education, Ministry of Human Resource Development, ex officio; (i) seven persons of whom one shall be a non-medical scientist representing the Indian Science Congress Association, to be nominated by the Central Government in such manner as may be prescribed; (j) four representatives of the medical faculties of Indian Universities to be nominated by the Central Government in such manner as may be prescribed; and (k) three Members of Parliament of whom two shall be elected from among themselves by the members of the House of the People and one from among themselves by the members of the Council of States. (2) It is hereby declared that the office of member of the Institute shall not disqualify its holder for being chosen as, or for being, a member of either House of Parliament. **6. Term of office of, and vacancies among members.—(1) Save as otherwise provided in this** section, the term of office of a member shall be five years from the date of his nomination or election. (2) The term of office of a member elected under clause (k) of sub-section (1) of section 5 shall come to an end as soon as he becomes a Minister or Minister of State or Deputy Minister or the Speaker or the Deputy Speaker of Lok Sabha or the Deputy Chairman of Rajya Sabha or ceases to be a member of the House from which he was elected. (3) The term of office of an ex officio member shall continue so long as he holds the office by virtue of which he is such a member. (4) The term of office of a member nominated or elected to fill a casual vacancy shall continue for the remainder of the term of the member in whose place he is nominated or elected. (5) An out-going member other than a member elected under clause (k) of sub-section (1) of section 5 shall continue in office until another person is nominated as a member in his place or for a period of three months, whichever is earlier: Provided that the Central Government shall nominate a member in place of an out-going member within the said period of three months. (6) An out-going member shall be eligible for re-nomination or re-election. (7) A member may resign his office by writing under his hand addressed to the Central Government but he shall continue in office until his resignation is accepted by that Government. (8) The manner of filling vacancies among members shall be such as may be prescribed. **7. President of Institute, his powers and functions.—(1) There shall be a President of the Institute** who shall be nominated by the Central Government from among the members other than the Director of the Institute. (2) The President shall exercise such powers and discharge such functions as are laid down in this Act or as may be prescribed. **8. Allowances of President and members.—The President and other members shall receive such** allowances from the Institute as may be prescribed. **9. Meetings of Institute.—The Institute shall hold its first meeting at such time and place as may be** appointed by the Central Government and shall observe such rules of procedure in regard to the transaction of business at the first meeting as may be laid down by that Government; and thereafter, the Institute shall meet at such times and places and observe such rules of procedure in regard to the transaction of business including quorum at its meetings as may be specified. 3 ----- **10. Governing Body and other committees of Institute.—(1) There shall be a Governing Body of** the Institute which shall be constituted by the Institute in such manner as may be specified: Provided that the number of persons who are not members of the Institute shall not exceed one-third of the total membership of the Governing Body. (2) The Governing Body shall be the executive committee of the Institute and shall exercise such powers and discharge such functions as the Institute may specify in this behalf. (3) The President of the Institute shall be the Chairperson of the Governing Body and as Chairperson thereof he shall exercise such powers and discharge such functions as may be specified. (4) The procedure to be followed in exercise of its powers and discharge of its functions by the Governing Body, and the term of office of, and the manner of filling vacancies among the members of the Governing Body shall be such as may be specified. (5) Subject to such control and restrictions as may be prescribed, the Institute may constitute as many standing committees and as many _ad hoc committees as it thinks fit for exercising any power or_ discharging any function of the Institute or for inquiring into, or reporting or advising upon, any matter which the Institute may refer to them. (6) The Chairperson and members of the Governing Body and the Chairperson and the members of a standing committee or an ad hoc committee shall receive such allowances, as may be specified. **11. Staff of Institute.—(1) There shall be a chief executive officer of the Institute who shall be** designated as the Director of the Institute and shall, subject to such rules as may be prescribed, be appointed by the Institute: Provided that the first Director of the Institute shall be appointed by the Central Government. (2) The Director shall act as the Secretary to the Institute as well as the Governing Body. (3) The Director shall hold office for a term of five years from the date on which he enters upon his office or until he attains the age of sixty-five years, whichever is earlier. (4) The Director shall exercise such powers and discharge such functions as may be specified, or as may be delegated to him by the Institute or the President of the Institute or the Governing Body or the Chairperson of the Governing Body. (5) Subject to such rules as may be prescribed, the Institute may appoint such number of other officers and employees as may be necessary for the exercise of its powers and discharge of its functions and may determine the designations and grades of such other officers and employees. (6) Subject to such rules as may be prescribed, the Director and other officers and employees of the Institute shall be entitled to such salary and allowances and shall be governed by such conditions of service in respect of leave, pension, provident fund and other matters as may be specified. **12. Objects of Institute.—The objects of the Institute shall be—** (a) to develop patterns of teaching in undergraduate and postgraduate medical education in all its branches so as to demonstrate a high standard of medical education; (b) to bring together, as far as may be, in one place educational facilities of the highest order for the training of personnel in all important branches of health activity; and (c) to attain self-sufficiency in postgraduate medical education to meet the country's needs for specialists and medical teachers. **13. Functions of Institute.—With a view to the promotion of the objects specified in section 12, the** Institute may— (a) provide for undergraduate and postgraduate teaching in the science of modern medicine and other allied sciences, including physical and biological sciences; (b) provide facilities for research in various branches of such sciences; 4 ----- (c) provide for the teaching of humanities; (d) conduct experiments in new methods of medical education, both undergraduate and postgraduate, in order to arrive at satisfactory standards of such education; (e) specify courses and curricula for both undergraduate and postgraduate studies; (f) notwithstanding anything contained in any other law for the time being in force, establish and maintain— (i) one or more medical colleges with different departments, including a department of preventive and social medicine, sufficiently staffed and equipped to undertake not only undergraduate medical education but also postgraduate medical education in different subjects, (ii) one or more well-equipped hospitals, (iii) a dental college with such institutional facilities for the practice of dentistry and for the practical training of students as may be necessary, (iv) a nursing college sufficiently staffed and equipped for the training of nurses, (v) rural and urban health organisations which will form centres for the field training of the medical, dental and nursing students of the Institute as well as for research into community health problems, and (vi) other institutions for the training of different types of health workers, such as physiotherapists, occupational therapists, pharmacists, drug analysts and medical technicians of various kinds; (g) train teachers from different medical colleges in India; (h) hold examinations and grant such degrees, diplomas and other academic distinctions and titles in undergraduate and postgraduate medical education as may be laid down in the regulations; (i) institute, and appoint persons to, professorships, readerships, lecturerships and posts of any description in accordance with regulations; (j) receive grants from the Government and gifts, donations, benefactions, bequests and transfers of properties, both movable and immovable, from donors, benefactors, testators or transferors, as the case may be; (k) deal with any property belonging to, or vested in, the Institute in any manner which is considered necessary for promoting the objects specified in section 12; (l) demand and receive with the prior approval of the Central Government such fees and other charges as may be specified: Provided that such fees and other charges payable by the students shall in no case exceed the fees and other charges specified by a medical Institute of the Central Government; (m) reserve at least twenty seats out of every seventy-five seats in undergraduate courses in the institute for local applicants; (n) provide free treatment to the poor patients in the same manner as are being provided by a medical Institute of the Central Government; (o) construct quarters for its staff and allot such quarters to the staff in accordance with such regulations as may be made in this behalf; (p) borrow money, with the prior approval of the Central Government, on the security of the property of the Institute; (q) do all such other acts and things as may be necessary to further the objects specified in section 12. 5 ----- **14. Vesting of property.—The properties of the Jawaharlal Institute of Post-Graduate Medical** Education and Research, Puducherry which vested in the Central Government shall, on the commencement of this Act, vest in the Institute. **15. Payment to Institute.—The Central Government may, after due appropriation made by** Parliament by law in this behalf, pay to the Institute in each financial year such sums of money and in such manner as may be considered necessary by that Government for the exercise of its powers and discharge of its functions under this Act. **16. Fund of Institute.—(1) The Institute shall maintain a Fund to which shall be credited—** (a) all moneys provided by the Central Government; (b) all fees and other charges received by the Institute; (c) all moneys received by the Institute by way of grants, gifts, donations, benefactions, bequests or transfers; and (d) all moneys received by the Institute in any other manner or from any other source. (2) All moneys credited to the Fund shall be deposited in such banks or invested in such manner as the Institute may, with the approval of the Central Government, decide. (3) The Fund shall be applied towards meeting the expenses of the Institute including expenses incurred in the exercise of its powers and discharge of its functions under section 13. **17. Budget of Institute.—The Institute shall prepare in such form and at such time every year a** budget in respect of the financial year next ensuing showing the estimated receipts and expenditure of the Institute and shall forward to the Central Government such number of copies thereof as may be prescribed. **18. Accounts and audit.—(1) The Institute shall maintain proper accounts and other relevant records** and prepare an annual statement of accounts including the balance-sheet in such form as the Central Government may, by rules prescribe, and in accordance with such general directions as may be issued by that Government, in consultation with the Comptroller and Auditor-General of India. (2) The accounts of the Institute shall be audited by the Comptroller and Auditor-General of India and any expenditure incurred by him in connection with such audit shall be payable by the Institute to the Comptroller and Auditor-General of India. (3) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Institute shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General of India has in connection with the audit of the Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect the offices of the Institute as well as of the institutions established and maintained by it. (4) The Accounts of the Institute as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before both Houses of Parliament. **19. Annual report.—The Institute shall prepare for every year a report of its activities during that** year and submit the report to the Central Government in such form and on or before such date as may be prescribed and a copy of this report shall be laid before both Houses of Parliament within one month of its receipt. **20. Pension and provident funds.—(1) The Institute shall constitute for the benefit of its officers,** teachers and other employees in such manner and subject to such conditions as may be specified by regulations, such pension and provident funds as it may deem fit. 6 ----- (2) Where any such pension or provident fund has been constituted, the Central Government may declare that the provisions of the Provident Funds Act, 1925 (19 of 1925) shall apply to, such fund as if it were a Government Provident Fund. **21. Authentication of orders and instruments of Institute.—All orders and decisions of the** Institute shall be authenticated by the signature of the Director or any other member authorised by the Institute in this behalf and all other instruments shall be authenticated by the signature of such officers as may be authorised by the Institute. **22. Acts and proceedings not to be invalidated by vacancies, etc.—No act done or proceeding** taken by the Institute, Governing Body or any standing or _ad hoc committee under this Act shall be_ questioned on the ground merely of the existence of any vacancy in, or defect in the constitution of, the Institute, Governing Body or such standing or ad hoc committee. **23. Grant of medical degrees, diplomas, etc., by Institute.—Notwithstanding anything contained in** any other law for the time being in force, the Institute shall have the power to grant medical, dental, nursing degrees, diplomas and other academic distinctions and titles under this Act. **24. Recognition of medical qualifications granted by Institute.—Notwithstanding anything** contained in the Indian Medical Council Act, 1956 (102 of 1956) the Dentists Act, 1948 (16 of 1948), the Indian Nursing Council Act, 1947 (48 of 1947), the medical degrees and diplomas, dental degrees and nursing degrees granted by the Institute under this Act shall be recognised medical qualifications for the purposes of the Acts aforesaid and shall be deemed to be included in the Schedules to the respective Acts. **25. Control by Central Government.—The Institute shall carry out such directions as may be issued** to it from time to time by the Central Government for the efficient administration of this Act. **26. Resolution of differences.—If in, or in connection with, the exercise of its powers and discharge** of its functions by the Institute under this Act, any dispute arises between the Institute and the Central Government, the decision of the Central Government thereon shall be final. **27. Returns and information.—The Institute shall furnish to the Central Government such reports,** returns and other information as that Government may require from time to time. **28. Transfer of service of existing employees.—(1) On and from the date of commencement of this** Act, every employee holding a post in the Jawaharlal Institute of Post-Graduate Medical Education and Research, Puducherry, before that date, shall hold the post in the Institute by the same tenure, and upon the same terms and conditions of service including remuneration, leave, provident fund, retirement and other terminal benefits as he would have held such post as if this Act had not been passed and shall continue to do so as an employee of the Institute for a period of [1][three and one-half years] from the date of the commencement of this Act, unless he, within the said period of [1][three and one-half years], opts not to be an employee of the Institute or until his tenure, remuneration or other terms and conditions of service are duly altered by the regulations: 2[Provided that the employees, who have, or as the case may be, who have not, exercised their option and not transferred out of the Institute as on the date of coming into force of the Jawaharlal Institute of Post-Graduate Medical Education and Research, Puducherry (Amendment) Act, 2011 (10 of 2011), may exercise their option afresh before the specified period: Provided further that] the officers of the Jawaharlal Institute of Post-Graduate Medical Education and Research, Puducherry belonging to the Central Health Service, who opts to be an employee of the Institute then, his appointment, pay, allowances and other terms and conditions of service shall be such as may be prescribed. (2) Every person, who opts not to be an employee of the Institute within the period so specified, shall be governed by the rules and orders as are applicable to the Central Government officers and employees of equivalent rank. 1. Subs. by Act 10 of 2011, s. 2, for “one year” (w.e.f. 27-8-2011). 2. Subs. by s. 2, ibid., for “Provided that” (w.e.f. 27-8-2011). 7 ----- (3) Subject to the provisions of this section, the tenure, remuneration and other terms and conditions of service including pension of any employee of the Institute shall not be altered to his disadvantage without the previous approval of the Central Government. **29. Power to make rules.—(1) The Central Government, after consultation with the Institute, may,** by notification in the Official Gazette, make rules to carry out the purposes of this Act: Provided that consultation with the Institute, shall not be necessary on the first occasion of making of rules under this section, but the Central Government shall take into consideration the suggestions which the Institute may make in relation to the amendment of such rules after they are made. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the manner of nomination of members under clauses (j) and (k) of sub-section (1) of section 5; (b) the manner of filling vacancies under sub-section (8) of section 6; (c) the powers and functions to be exercised and discharged by the President of the Institute under section 7; (d) the allowances to be paid to the President and other members of the Institute under section 8; (e) the control and restrictions in relation to the constitution of standing and ad hoc committees under sub-section (5) of section 10; (f) the tenure of office, salaries and allowances and other conditions of service of the Director and other officers and employees of the Institute appointed by the Institute under section 11; (g) the form in which, and the time at which, the budgets and reports shall be prepared by the Institute under section 17; (h) the form of annual statement of accounts including balance-sheet under sub-section (1) of section 18; (i) the form of annual report under section 19; (j) any other matter which has to be or may be prescribed by rules. **30. Power to make regulations.—(1) The Institute with the previous approval of the Central** Government may, by notification in the Official Gazette, make regulations consistent with this Act and the rules made thereunder to carry out the purposes of this Act, and without prejudice to the generality of this power, such regulations may provide for— (a) the summoning and holding of meetings, other than the first meeting, of the Institute, the time and place where such meetings are to be held and the conduct of business at such meetings under section 9; (b) the manner of constituting the Governing Body and standing and ad hoc committees, the term of office of, and the manner of filling vacancies therein, the allowances to be paid to the members and the procedure to be followed by the Governing Body; standing and ad hoc committees in the conduct of their business, exercise of their powers, discharge of their functions under section 10; (c) the powers and duties of the Director and other officers and employees of the Institute under sub-sections (3) and (4) and other conditions of service under sub-section (5) of section 11; (d) the power of the Institute under section 13, to specify— (i) courses and curricula for undergraduate and postgraduate studies; (ii) hold examination and grant degrees, diplomas and other academic distinctions and titles under clause (h); (iii) the professorships, readerships, lecturerships and other posts which may be instituted and persons who may be appointed to such posts under clause (i); 8 ----- (iv) the management of the properties of the Institute under clause (k); (v) the fees and other charges which may be demanded and received by the Institute under clause (l); (e) the manner in which, and the conditions subject to which, pension and provident funds may be constituted for the benefit of officers, teachers and other employees of the Institute under sub-section (1) of section 20; (f) any other matter for which under this Act provisions may be made by regulations. (2) Notwithstanding anything contained in sub-section (1), the first regulations under this Act shall be made by the Central Government; and any regulations so made may be altered or rescinded by the Institute in exercise of its powers under sub-section (1). **31. Laying of rules and regulations before Parliament.—Every rule and every regulation made** under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. **32. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order, published in the Official Gazette, make such provision not inconsistent with the provisions of this Act, as may appear to be necessary for removing the difficulty: Provided that no such order shall be made under this section, after the expiry of a period of two years from the date of commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. 9 -----

11-Nov-2008

22

The Indian Maritime University Act, 2008

https://www.indiacode.nic.in/bitstream/123456789/2093/1/200822.pdf

central

# THE INDIAN MARITIME UNIVERSITY ACT, 2008 ___________ # ARRANGEMENT OF SECTIONS ___________ SECTIONS 1. Short title and commencement. 2. Definitions. 3. The University. 4. Objects of the University. 5. Powers of the University. 6. Jurisdiction. 7. University open to all classes, castes and creed. 8. Fund of the University. 9. The Visitor. 10. Officers of the University. 11. The Chancellor. 12. The Vice-Chancellor. 13. The Pro-Vice-Chancellor. 14. Deans of Schools. 15. Directors. 16. Registrars. 17. The Finance Officer. 18. Other officers. 19. Authorities of the University. 20. The Court. 21. The Executive Council. 22. The Academic Council. 23. The Board of Affiliation and Recognition. 24. The Planning Board. 25. The Boards of Schools. 26. The Finance Committee. 27. Other authorities of the University. 28. Power to make statutes. 29. Statutes how to be made. 30. Power to make Ordinances. 31. Regulations. 32. Annual report. 33. Annual accounts. 34. Conditions of service of employees. 35. Tribunal of Arbitration. 36. Procedure of appeal and arbitration in disciplinary cases against students. 37. Right to appeal. 38. Provident and pension funds. 39. Disputes as to constitution of University authorities and bodies. 40. Constitution of Committees. 41. Filling of casual vacancies. 42. Proceedings of University authorities or bodies not invalidated by vacancies. 43. Protection of action taken in good faith. 44. Mode of proof of University record. 45. Power to remove difficulties. 46. Transitional provisions. 1 ----- SECTIONS 47. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid before Parliament. 48. Completion of courses of studies in colleges or institutions affiliated to the University. 49. Transfer of assets and options of the employees. 50. Role of Central Government and Director-General of shipping. THE SCHEDULE. 2 ----- # THE INDIAN MARITIME UNIVERSITY ACT, 2008 ACT NO. 22 OF 2008 [11th November, 2008.] # An Act to establish and incorporate a teaching and affiliating University at the national level to facilitate and promote maritime studies and research and to achieve excellence in areas of marine science and technology, marine environment and other related fields, and to provide for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-ninth Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the Indian Maritime University Act,** 2008. (2) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.—In this Act, and** [2][in the Statutes made thereunder], unless the context otherwise requires,— (a) “Academic Council” means the Academic Council of the University; (b) “academic staff” means such categories of staff as are designated as academic staff by the Ordinances; (c) “Board of Affiliation and Recognition” means Board of Affiliation and Recognition of the University; (d) “Board of Studies” means the Board of Studies of the University; (e) “Campus” means the unit established or constituted by the University for making arrangements for instruction, research, education and training; (f) “Certificate of Competency” means a certificate issued by the competent authority under the Merchant Shipping Act, 1958 (44 of 1958); (g) “Chancellor”, “Vice-Chancellor” and “Pro-Vice-Chancellor” mean, respectively, the Chancellor, Vice-Chancellor and Pro-Vice-Chancellor of the University; (h) “College” means a college maintained by or admitted to the privileges of the University for imparting education and training in maritime studies or in its associated disciplines; (i) “Court” means the Court of the University; (j) “Department” means a Department of Studies; and includes a Centre of Studies; (k) “Director-General” means the Director-General of Shipping appointed by the Government of India under section 7 of the Merchant Shipping Act, 1958 (44 of 1958); (l) “Distance Education System” means the system of imparting education through any means of communication, such as broadcasting, telecasting, correspondence courses, seminars, contact programmes, e-learning or the combination of any two or more such means; (m) “Employee” means any person appointed by the University and includes teachers and other staff including deputationists of the University; (n) “Executive Council” means the Executive Council of the University; (o) “Finance Committee” means the Finance Committee of the University; 1. 14th November, 2008, vide Notification No. S.O. 2660(E), dated 14th November, 2008, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 2. Subs. by Act 19 of 2015, s. 3 and Second Sch., for “in all Statutes made thereunder” (w.e.f. 14-5-2008). 3 ----- (p) “Governing Body” in relation to a college or an institution, means the Governing Body or any other body, by whatever name called, charged with the management of the affairs of such college or institution, as the case may be, and recognised as such by the University; (q) “Hall” means a unit of residence for the students of the University, or of a College or an Institution, maintained by the University; (r) “Institution” means an institution, school, college or centre of studies maintained by or admitted to the privileges of the University for imparting education and training in maritime studies or in its associated disciplines; (s) “Notification” means a notification published in the Official Gazette; (t) “Off-shore Campus” means an institution, college, centre, school or campus of the University, that could be established outside the country; (u) “Planning Board” means the Planning Board of the University; (v) “Principal” means the head of a college or an institution; (w) “Recognised Institution” means an institution admitted to the privileges of the University for imparting education in maritime studies or its associated disciplines; (x) “Recognised teachers” means such persons as are recognised by the University for the purpose of imparting instructions in a college or an institution admitted to the privileges of the University; (y) “School” means a School of Studies of the University; (z) “Statutes”, “Ordinances” and “Regulations” mean, respectively, the Statutes, the Ordinances and the Regulations made under this Act; (za) “University” means the Indian Maritime University established under this Act; (zb) “teachers of the University” means Professors, Associate Professors, Assistant Professors, Readers, Senior Lecturers, Lecturers and such other persons as may be appointed for imparting instruction or conducting research in the University or in any college or institution maintained by the University; and (zc) “University Grants Commission” means the commission established under section 4 of the University Grants Commission Act, 1956 (3 of 1956). **3. The University.—(1) There shall be established a University by the name of Indian Maritime** University. (2) The headquarters of the University shall be at Chennai with its campuses at Mumbai, Kolkata, Chennai, Vishakhapatnam and such other places within its jurisdiction as it may deem fit. (3) The first Chancellor, the first Vice-Chancellor, the first members of the Court, the Executive Council, the Academic Council, the Planning Board and all persons who may hereafter become such officers or members, so long as they continue to hold such office or membership, shall constitute the University. (4) The University shall have perpetual succession and a common seal and shall sue and be sued by the said name. (5) The University shall be both, a teaching and an affiliating University. **4. Objects of the University.—The objects of the University shall be,—** (i) to facilitate and promote maritime studies, training, research and extension work with focus on emerging areas of studies like oceanography, maritime history, maritime laws, maritime security, search and rescue, transportation of dangerous cargo, environmental studies and other related fields, and also to achieve excellence in these and connected fields and other matters connected therewith or incidental thereto; 4 ----- (ii) to promote advanced knowledge by providing institutional and research facilities in such branches of learning as it may deem fit and to make provisions for integrated courses in Science and other key and frontier areas of Technology and allied disciplines in the educational programmes of the University; (iii) to take appropriate measures for promoting innovations in teaching-learning process, inter disciplinary studies and research; and to pay special attention to the promotion of educational and economic interests and welfare of the people of India; (iv) to promote freedom, secularism, equality and social justice as enshrined in the Constitution of India and to act as catalyst in socio-economic transformation by promoting basic attitudes and values of essence to national development; and (v) to extend the benefits of knowledge and skills for development of individuals and society by associating the University closely with local, regional and national issues of development. **5. Powers of the University.—The University shall have the following powers, namely:—** (i) to provide for instruction in such branches of learning as the University may, from time to time, determine and to make provision for research and for the advancement and dissemination of knowledge; (ii) to make provision for recognised institutions to undertake special studies; (iii) to establish and maintain campuses, colleges, institutions, departments, laboratories, libraries, museums, centres of research, training and specialised studies; (iv) to establish and maintain hostels, health centres and other related facilities like auditoria, playgrounds, gymnasiums, swimming pools, training ships; (v) to provide for establishment of campuses for serving a group of recognised colleges and to provide for and maintain common resource centres in such campuses in the form of libraries, laboratories, computer centres and the like centres of learning; (vi) to grant, subject to such conditions as the University may determine, diplomas for certificates other than Certificates of Competencies of Sea-farers, which shall continue to be issued by DirectorGeneral of Shipping, Government of India till the Central Government otherwise decides, and confer degrees and other academic distinctions on the basis of examinations, evaluation or any other method of testing on persons, and to withdraw any such diplomas, certificates, degrees or other academic distinctions for good and sufficient cause; (vii) to confer honorary degrees or other distinctions in the manner prescribed by the Statutes; (viii) to organise and to undertake extra-mural studies, training and extension services; (ix) to institute Directorships, Principalships, Professorships, Associate Professorships, Assistant Professorships and other teaching or academic positions, required by the University and to appoint persons to such Principalships, Professorships, Associate Professorships, Assistant Professorships or academic positions; (x) to provide for the terms and conditions of service of— (i) Directors, Principals and teachers and other members of the academic staff appointed by the University; (ii) teachers and other members of the academic staff appointed by any college or institution; and (iii) any other employee of recognised college or institution, whether appointed by the University or such college or institution; (xi) to appoint persons working in any other University or organisation as teachers of the University for a specified period; 5 ----- (xii) to recognise an institution of higher learning for such purposes as the University may determine and to withdraw such recognition; (xiii) to organise and conduct refresher courses, workshops, seminars and other programmes for teachers, evaluators and other academic staff; (xiv) to appoint on contract or otherwise visiting Professors, Emeritus Professors, Consultants, Scholars and such other persons who may contribute to the advancement of the objects of the University; (xv) to create teaching, non-teaching, administrative, ministerial and other posts in the University and to make appointments thereto; (xvi) to co-operate or collaborate or associate with any other University or authority or institution of higher learning within India or abroad, in such manner and for such purposes as the University may determine; (xvii) to approve appointment of persons for imparting instructions in any institution admitted to the privileges of the University and to withdraw such approval; (xviii) to inspect recognised institutions through suitable machinery established for the purpose, and to take measures to ensure that proper standards of instruction, teaching and training are maintained by them, and adequate library, laboratory, hospital, workshop and other academic facilities are provided for; (xix) to prescribe fees and other charges to be levied on the students of self-financing colleges and institutions; (xx) to coordinate the work of different colleges and institutions working in the same and similar areas; (xxi) to set up central facilities like computer centre, training centre, instrumentation centre, library, simulators; (xxii) to set up curriculum development centres for different subjects; (xxiii) to admit to its privileges colleges and institutions, not maintained by the University, and to withdraw all or any of those privileges in accordance with such conditions as may be prescribed by the Statutes; (xxiv) to recognise guide, supervise and control Halls not maintained by the University and other accommodation for students, and to withdraw any such recognition; (xxv) to make provision for research and advisory services and for that purpose, to enter into such arrangements with other institutions or bodies as the University may deem necessary; (xxvi) to prescribe fees for recognising of colleges and institutions; (xxvii) to determine standards of admission to the University which may include examination, evaluation or any other method of testing; (xxviii) to institute and award fellowships, scholarships, studentships, assistantships, medals and prizes; (xxix) to demand and receive payment of fees and other charges; (xxx) to supervise the residences of the students of the University and to make arrangements for promoting their health and general welfare; (xxxi) to make such special arrangements in respect of women students as the University may consider desirable; (xxxii) to regulate the conduct of the students of the University and of colleges and institutions; (xxxiii) to control and regulate admission of students for various courses of study in Departments, recognised institutions, schools and centres of studies; 6 ----- (xxxiv) to regulate the work and conduct of the employees of the University and of the employees of the colleges and institutions; (xxxv) to regulate and enforce discipline among the employees and students of the University and to take such disciplinary measures in this regard as may be deemed necessary; (xxxvi) to prescribe code of conduct for managements of recognised colleges and institutions; (xxxvii) to make arrangements for promoting the health and general welfare of the employees of the University and those of colleges and institutions; (xxxviii) to receive benefactions, donations and gifts from persons and to name after them such chairs, institutions, buildings and the like, the University may determine, whose gift or donation to the University is worth such amount as the University may decide; (xxxix) to acquire, hold, manage and dispose of any property, movable or immovable, including trust and endowment properties for the purposes of the University; (xl) to borrow, with the approval of the Central Government, on the security of the property of the University, money for the purposes of the University; (xli) to assess needs of the students in terms of subjects, fields of specialisation, levels of education and training of technical manpower, both on short and long term basis, and to initiate necessary programmes to meet these needs; (xlii) to initiate measures to enlist the co-operation of the industry to provide complementary facilities; (xliii) to provide for instruction through “distance learning” and “open approach” and for mobility of students from the non-formal open learning stream to the formal stream and vice versa; (xliv) to establish such campuses, special centres, specialised laboratories or other units for research and instruction as are, in the opinion of the University, necessary for the furtherance of its objective; (xlv) to confer autonomous status on a college or an institution or a Department, as the case may be, in accordance with the Statutes; (xlvi) to arrange for the training to upgrade maritime standard of the employees of the industry and institutes and to levy fees for such training as prescribed by the Statutes; (xlvii) to establish Off-shore Campus at any place outside the Country as and when it is considered necessary for advancing the aims and objectives of the University; and (xlviii) to do all such other acts and things as may be necessary, incidental or conducive to the attainment of all or any of its objects. **6. Jurisdiction.—The jurisdiction of the University shall extend to the whole of India.** **7. University open to all classes, castes and creed.—The University shall be open to persons of** either sex and of whatever caste, creed, race or class, and it shall not be lawful for the University to adopt or impose on any person, any test whatsoever of religious belief or profession in order to entitle him to be appointed as a teacher of the University or to hold any other office therein or be admitted as a student in the University or to graduate thereat or to enjoy or exercise any privilege thereof: Provided that nothing in this section shall be deemed to prevent the University from making special provisions for the employment or promotion of educational interests of women, physically handicapped or of persons belonging to the weaker sections of the society and, in particular, of the Scheduled Castes and the Scheduled Tribes. **8. Fund of the University.—(1) There shall be a University Fund which shall include—** (a) any contribution or grant made by the Central Government or an instrumentality of the Central Government; (b) any contribution or grant made by the State Governments; 7 ----- (c) any contribution from the shipping companies, off-shore construction companies and diving companies; (d) any bequests, donations, endowments or other grants made by any private individual or institution; (e) income received by the University from fees and charges; and (f) amounts received from any other source. (2) The said fund shall be utilised for such purposes of the University and in such manner as may be prescribed by the Statutes and the Ordinances. **9. The Visitor.—(1) The President of India shall be the Visitor of the University.** (2) The Visitor may, from time to time, appoint one or more persons to review the work and progress of the University, including colleges and institutions managed by it, and to submit a report thereon; and upon receipt of that report, the Visitor may, after obtaining the views of the Executive Council thereon through the Vice-Chancellor, take such action and issue such directions as he considers necessary in respect of any of the matters dealt with in the report and the University shall be bound to comply with such directions. (3) The Visitor shall have the right to cause an inspection to be made by such person or persons as he may direct, of the University, its buildings, libraries, laboratories and equipment, and of any college, institution or Campus maintained by the University or admitted to its privileges; and also of the examinations, instruction and other work conducted or done by the University and to cause an inquiry to be made in like manner in respect of any matter connected with the administration or finances of the University, colleges or institutions. (4) The Visitor shall, in every matter referred to in sub-section (3), give notice to the University of his intention to cause an inspection or inquiry to be made,— (a) to the University, if such inspection or inquiry is to be made in respect of the University or any college or institution maintained by it, or (b) to the management of the college or institution, if the inspection or inquiry is to be made in respect of the college or institution admitted to the privileges of the University, and the University or the management, as the case may be, shall have the right to make such representations to the Visitor, as it may consider necessary. (5) After considering the representations, if any, made by the University or the management, as the case may be, the Visitor may cause to be made such inspection or inquiry as is referred to in sub-section (3). (6) Where any inspection or inquiry has been caused to be made by the Visitor, the University or the management shall be entitled to appoint a representative, who shall have the right to be present in person and be heard at such inspection or inquiry. (7) The Visitor may, if the inspection or inquiry is made in respect of the University, college or institution maintained by it, address the Vice-Chancellor with reference to the result of such inspection or inquiry together with such views and advice with regard to the action to be taken thereon, as the Visitor may be pleased to offer, and on receipt of address made by the Visitor, the Vice-Chancellor shall communicate forthwith to the Executive Council the results of the inspection or inquiry, and the views of the Visitor and the advice tendered by him upon the action to be taken thereon. (8) The Visitor may, if the inspection or inquiry is made in respect of any college or institution admitted to the privileges of the University, address the management concerned through the ViceChancellor with reference to the result of such inspection or inquiry, his views thereon and such advice as he may be pleased to offer upon the action to be taken thereon. 8 ----- (9) The Executive Council or the management, as the case may be, shall communicate, through the Vice-Chancellor to the Visitor such action, if any, as it proposes to take or has been taken upon the result of such inspection or inquiry. (10) Where, the Executive Council or the management, does not, within a reasonable time, take action to the satisfaction of the Visitor, the Visitor may, after considering any explanation furnished or representation made by the Executive Council or the management, issue such directions as he may think fit and the Executive Council shall comply with such directions. (11) Without prejudice to the foregoing provisions of this section, the Visitor may, by order in writing, annul any proceeding of the University which is not in conformity with the Act, the Statutes or the Ordinances: Provided that before making any such order, the Visitor shall call upon the Registrar to show cause why such an order should not be made, and, if any cause is shown within a reasonable time, he shall consider the same. (12) Notwithstanding anything contained in the foregoing provisions, the Visitor may give any direction to the University after giving an opportunity to the University as the circumstances warrant. (13) The Visitor shall have such other powers as may be prescribed by the Statutes. **10. Officers of the University.—The following shall be the officers of the University:—** (1) the Chancellor; (2) the Vice-Chancellor; (3) the Pro-Vice-Chancellor; (4) the Deans of Schools; (5) the Directors; (6) the Registrars; (7) the Finance Officer; and (8) such other officers as may be declared by the Statutes to be officers of the University. **11. The Chancellor.—(1) The Chancellor shall be appointed by the Visitor in such manner as may be** prescribed by the Statutes. (2) The Chancellor shall, by virtue of his office, be the Head of the University. (3) The Chancellor shall, if present, preside at the convocations of the University held for conferring degrees. **12. The Vice-Chancellor.—(1) The Vice-Chancellor shall be appointed by the Visitor in such** manner as may be prescribed by the Statutes. (2) The Vice-Chancellor shall be the principal executive and academic officer of the University, and shall exercise general supervision and control over the affairs of the University and give effect to the decisions of all the authorities of the University. (3) The Vice-Chancellor may, if he is of opinion that immediate action is necessary on any matter, exercise any power conferred on any authority of the University by or under this Act and shall report to such authority the action taken by him on such matter: Provided that if the authority concerned is of opinion that such action ought not to have been taken, it may refer the matter to the Visitor whose decision thereon shall be final: Provided further that any person in the service of the University who is aggrieved by the action taken by the Vice-Chancellor under this sub-section shall have the right to appeal against such action to the Executive Council within three months from the date on which decision on such action is communicated to him and thereupon the Executive Council may confirm, modify or reverse the action taken by the Vice-Chancellor. 9 ----- (4) The Vice-Chancellor, if he is of the opinion that any decision of any authority of the University is beyond the powers of the authority conferred by the provisions of this Act, the Statutes or the Ordinances or that any decision taken is not in the interest of the University, may ask the authority concerned to review its decision within sixty days of such decision and if the authority refuses to review the decision either in whole or in part or no decision is taken by it within the said period of sixty days, the matter shall be referred to the Visitor whose decision thereon shall be final. (5) The Vice-Chancellor may cause an inspection to be made by such person or persons as he may direct, of a college or an institution not being maintained by the University, its buildings, libraries, laboratories and equipment, and also examinations, teaching and other work conducted or done by the college or the institution and cause an inquiry, to be made in the like manner, in respect of any matter connected with the administration or finance of the college or the institutions. (6) The Vice-Chancellor shall exercise such other powers and perform such other duties as may be prescribed by the statutes or the Ordinances. **13. The Pro-Vice-Chancellor.—The Pro-Vice-Chancellor shall be appointed in such manner, on** such terms and conditions of service, and shall exercise such powers and perform such duties, as may be prescribed by the Statutes. **14. Deans of Schools.—Every Dean of a School shall be appointed in such manner and shall exercise** such powers and perform such duties, as may be prescribed by the Statutes. **15. Directors.—Every Director shall be appointed in such manner, on such terms and conditions of** service, and perform such duties, as may be prescribed by the Statutes. **16. Registrars.—(1) Every Registrar shall be appointed in such manner, as may be prescribed by the** Statutes. (2) The Registrar shall have the power to enter into agreement, sign documents and authenticate records on behalf of the University. (3) Every Registrar shall exercise such powers and perform such duties, as may be prescribed by the Statutes. **17. The Finance Officer.—The Finance Officer shall be appointed in such manner and shall exercise** such powers and perform such duties, as may be prescribed by the Statutes. **18. Other officers.—The manner of appointment and powers and duties of the other officers of the** University shall be prescribed by the Statutes. **19. Authorities of the University.—The following shall be the authorities of the University:—** (1) the Court; (2) the Executive Council; (3) the Academic Council; (4) the Planning Board; (5) the Board of Affiliation and Recognition; (6) the Boards of Schools; (7) the Finance Committee; and (8) such other authorities as may be declared by the Statutes to be the authorities of the University. **20. The Court.—(1) The constitution of the Court and the term of office of its members shall be** prescribed by the Statutes. 10 ----- (2) Subject to the provisions of this Act, the Court shall have the following powers and functions, namely:— (a) to review, from time to time, the broad policies and programmes of the University and to suggest measures for the improvement and development of the University; (b) to consider and pass resolutions on the annual report and the annual accounts of the University and the audit report on such accounts; (c) to advise the Visitor in respect of any matter which may be referred to it for advice; and (d) to perform such other functions as may be prescribed by the Statutes. **21. The Executive Council.—(1) The Executive Council shall be the principal executive body of the** University. (2) The constitution of the Executive Council, the term of office of its members and its powers and functions shall be prescribed by the Statutes. **22. The Academic Council.—(1) The Academic Council shall be the principal academic body of the** University and shall, subject to the provisions of this Act, the Statutes and the Ordinances, have the control and supervision over, and be responsible for, the maintenance of standards of instruction, education and examination within the University and shall exercise such other powers and perform such other duties as may be conferred or imposed upon it. (2) The Academic Council shall have the right to advise the Executive Council on all academic matters. (3) The constitution of the Academic Council and the term of office of its members shall be such as may be prescribed by the Statutes. **23. The Board of affiliation and recognition.—(1) The Board of affiliation and recognition shall be** responsible for admitting colleges and institutions to the privileges of the University. (2) The constitution of the Board of Affiliation and Recognition, the term of office of its members and its powers and duties shall be such as may be prescribed by the Statutes. **24. The Planning Board.—(1) The Planning Board shall be the principal planning body of the** University. (2) The Planning Board shall be responsible for monitoring the development of the University. (3) The constitution of the Planning Board, term of office of its members and its powers and functions shall be prescribed by the Statutes. **25. The Boards of Schools.—(1) There shall be such number of Boards of Schools as the University** may determine from time to time. (2) The constitution, powers and functions of the Boards of Schools shall be such as may be prescribed by the Statutes. **26. The Finance Committee.—The constitution, powers and functions of the Finance Committee** shall be prescribed by the Statutes. **27. Other authorities of the University.—The constitution, powers and functions of other** authorities, as may be declared by the Statutes to be the authorities of the University, shall be prescribed by the Statutes. **28. Power to make statutes.—Subject to the provisions of this Act, the Statutes may provide for all** or any of the following matters, namely:— (a) the constitution, powers and functions of the authorities and other bodies of the University, as may be constituted from time to time; (b) the election and continuance in office of the members of the said authorities and bodies, the filling up of vacancies of members, and all other matters relating to those authorities and other bodies for which it may be necessary or desirable to provide; (c) the manner of appointment of the officers of the University, terms and conditions of service, their powers and duties and emoluments; 11 ----- (d) the manner of appointment of teachers, academic staff and other employees of the University and their emoluments; (e) the manner of appointment of teachers and academic staff working in any other University or organisation for a specific period for undertaking a joint project, their terms and conditions of service and emoluments; (f) the conditions of service of employees including provision for pension, insurance and provident fund, the manner of termination of service and disciplinary action; (g) the principles governing the seniority of service of the employees of the University; (h) the procedure for arbitration in cases of dispute between employees or students and the University; (i) the procedure for appeal to the Executive Council by any employee or student against the action of any officer or authority of the University; (j) the conferment of autonomous status on a college or an institution or a Department; (k) the establishment and abolition of Schools, Departments, Centres, Halls, colleges and institutions; (l) the conferment of honorary degrees; (m) the withdrawal of degrees, diplomas, certificates and other academic distinctions; (n) the conditions under which colleges and institutions may be admitted to the privileges of the University and the withdrawal of such privileges; (o) the institution of fellowships, scholarships, studentships, assistantships, medals and prizes; (p) the delegation of powers vested in the authorities or officers of the University; (q) the maintenance of the discipline among the employees and students; and (r) all other matters which by this Act are to be or may be provided for by the Statutes. **29. Statutes how to be made.—(1) The first Statutes are those set out in the Schedule.** (2) The Executive Council may, from time to time, make new or additional Statutes or may amend or repeal the Statutes referred to in sub-section (1): Provided that the Executive Council shall not make, amend or repeal any Statutes affecting the status, powers or constitution of any authority of the University until such authority has been given an opportunity of expressing an opinion in writing on the proposed changes, and any opinion so expressed shall be considered by the Executive Council. (3) Every new Statute or addition to the Statutes or any amendment or repeal of a Statute shall require the assent of the Visitor who may assent thereto or withhold assent or remit to the Executive Council for consideration. (4) A new Statute or a Statute amending or repealing an existing Statute shall have no validity unless it has been assented to by the Visitor. (5) Notwithstanding anything contained in the foregoing sub-sections, the Visitor may make new or additional Statutes or amend or repeal the Statutes referred to in sub-section (1), during the period of three years immediately after the commencement of this Act: Provided that the Visitor may, on the expiry of the said period of three years, make, within one year from the date of such expiry, such detailed Statutes as he may consider necessary and such detailed Statutes shall be laid before both Houses of Parliament. (6) Notwithstanding anything contained in the foregoing sub-section, the Visitor may direct the University to make provisions in the Statutes in respect of any matter specified by him and if the Executive Council is unable to implement such direction within sixty days of its receipt, the Visitor may, 12 ----- after considering the reasons, if any, communicated by the Executive Council for its inability to comply with such direction, make or amend the Statutes suitably. **30. Power to make Ordinances.—(1) Subject to the provisions of this Act and the Statutes, the** Ordinances may provide for all or any of the following matters, namely:— (a) the admission of students to the University and their enrolment as such; (b) the courses of study to be laid down for all degrees, diplomas and certificates of the University; (c) the medium of instruction and examination; (d) the award of degrees, diplomas, certificates and other academic distinctions, the qualifications for the same and the means to be taken relating to the granting and obtaining of the same; (e) the fees to be charged for courses of study in the University and for admission to the examinations, degrees and diplomas of the University; (f) the conditions for award of fellowships, scholarships, studentships, assistantships, medals and prizes; (g) the conduct of examinations, including the term of office and manner of appointment and the duties of examining bodies, examiners and moderators; (h) the conditions of residence of the students of the University; (i) the special arrangements, if any, which may be made for the residence, discipline and teaching of women students and the prescribing of special courses of studies for them; (j) the appointment and emoluments of employees other than those for whom provision has been made in the Statutes; (k) the establishment of centre of Studies, Board of Studies, Special centre, Specialised Laboratories and other Committees; (l) the manner of co-operation and collaboration with other Universities in India or abroad and authorities including learned bodies or associations; (m) the creation, composition and functions of any other body which is considered necessary for improving the academic life of the University; (n) such other terms and conditions of service of teachers and other academic staff as are not prescribed by the Statutes; (o) the management of colleges and institution maintained by the University; (p) the supervision and management of colleges and institutions admitted to the privileges of the University; (q) the setting up of a machinery for redressal of grievances of employees; and (r) all other matters which by this Act or the Statutes may be provided for by the Ordinances. (2) The first Ordinances shall be made by the Vice-Chancellor with the previous approval of the Central Government and the Ordinances so made may be amended, repealed or added to at any time by the Executive Council in the manner prescribed by the Statutes. **31. Regulations.—The authorities of the University may make Regulations, consistent with this Act,** the Statutes and the Ordinances in the manner prescribed by the Statutes, for the conduct of their own business and that of the Committees, if any, appointed by them and not provided for by this Act, the Statutes or the Ordinances. **32. Annual report.—(1) The annual report of the University shall be prepared under the direction of** the Executive Council, which shall include, among other matters, the steps taken by the University towards the fulfilment of its objects and shall be submitted to the Court on or after such date as may be prescribed by the Statutes and the Court shall consider the report in its annual meeting. 13 ----- (2) The Court shall submit the annual report to the visitor along with its comments, if any. (3) A copy of the annual report, as prepared under sub-section (1), shall also be submitted to the Central Government, which shall, as soon as may be, cause the same to be laid before both Houses of Parliament. **33. Annual accounts.—(1) The annual accounts and balance sheet of the University shall be** prepared under the directions of the Executive Council and shall, once at least every year and at intervals of not more than fifteen months, be audited by the Comptroller and Auditor-General of India or by such persons as he may authorise in this behalf. (2) A copy of the annual accounts together with the audit report thereon shall be submitted to the visitor and the Court along with the observations, if any, of the Executive Council. (3) Any observation made by the Visitor on the annual accounts shall be brought to the notice of the Court and the observations of the Court, if any, shall, after being considered by the Executive Council, be submitted to the Visitor. (4) A copy of the annual accounts together with the audit report as submitted to the Visitor, shall also be submitted to the Central Government, which shall, as soon as may be, cause the same to be laid before both Houses of Parliament. (5) The audited annual accounts after having been laid before both Houses of Parliament shall be published in the Gazette of India. **34. Conditions of service of employees.—(1) The University shall enter into written contract of** service with every employee of the University appointed on regular basis or otherwise and the terms and conditions of the contract shall not be inconsistent with the provisions of this Act, the Statutes and the Ordinances. (2) A copy of the contract referred to in sub-section (1) shall be kept with the University and a copy thereof shall also be furnished to the employee concerned. **35. Tribunal of Arbitration.—(1) Any dispute arising out of the contract between the University and** any employee shall, at the request of the employee, be referred to a Tribunal of Arbitration consisting of one member appointed by the Executive Council, one member nominated by the employee concerned and an umpire appointed by the Visitor. (2) The decision of the Tribunal of Arbitration shall be final and binding on the parties. (3) Every request made by the employee under sub-section (1), shall be deemed to be a submission to arbitration upon the terms of this section within the meaning of the Arbitration and Conciliation Act, 1996 (26 of 1996). (4) The procedure for regulating the work of the Tribunal shall be prescribed by the Statutes. **36. Procedure of appeal and arbitration in disciplinary cases against students.—(1) Any student** or candidate for an examination whose name has been removed from the rolls of the University by the orders or resolution of the Vice-Chancellor and who has been debarred from appearing at the examinations of the University for more than one year, may, within ten days of the date of receipt of such orders or copy of such resolution by him, appeal to the Executive Council and the Executive Council may confirm, modify or reverse the decision of the Vice-Chancellor or the Committee, as the case may be. (2) Any dispute arising out of any disciplinary action taken by the University against a student shall, at the request of such student, be referred to a Tribunal of Arbitration and the provisions of section 35 shall, as far as may be, apply to a reference made under this sub-section. **37. Right to appeal.—Every employee or student of the University or of a college or institution** maintained by the University shall, notwithstanding anything contained in this Act, have a right to appeal within such time as may be prescribed by the Statutes to the Executive Council against the decision of any officer or authority of the University or of the Principal of any college or institution, as the case may be, and thereupon the Executive Council may confirm, modify or reverse the decision appealed against. 14 ----- **38. Provident and pension funds.—(1) The University shall constitute for the benefit of its** employees such provident or pension fund or provide such insurance schemes as it may deem fit in such manner and subject to such conditions as may be prescribed by the Statutes. (2) Where such provident fund or pension fund has been so constituted, the Central Government may declare that the provision of the Provident Funds Act, 1925 (19 of 1925) shall apply to such fund, as if it were a Government provident fund. **39. Disputes as to constitution of University authorities and bodies.—If any question arises as to** whether any person has been duly elected or appointed as, or is entitled to be, a member of any authority or other body of the University, the matter shall be referred to the Visitor whose decision thereon shall be final. **40. Constitution of Committees.—Where any authority of the University is given power by this Act** or the Statutes to appoint Committees, such Committees shall, save as otherwise provided, consist of the members of the authority concerned and of such other person, if any, as the authority in each case may think fit. **41. Filling of casual vacancies.—All casual vacancies among the members (other than** _ex officio_ members) of any authority or other body of the University shall be filled, as soon as may be, by the person or body who appointed, elected or co-opted the member whose place has become vacant and the person appointed, elected or co-opted to a casual vacancy shall be a member of such authority or body for the residue of the term for which the person of whose place he fills would have been a member. **42. Proceedings of University authorities or bodies not invalidated by vacancies.—No act or** proceedings of any authority or other body of the University shall be invalid merely by reason of the existence of a vacancy or vacancies among its members. **43. Protection of action taken in good faith.—No suit or other legal proceedings shall lie against** any officer or other employee of the University for anything which is in good faith done or intended to be done in pursuance of any of the provisions of this Act, the Statutes or the Ordinances. **44. Mode of proof of University record.—A copy of any receipt, application, notice, order,** proceedings, resolution of any authority or Committee of the University, or other documents in possession of the University, or any entry in any register duly maintained by the University, if certified by the Registrar, shall be received as _prima facie evidence of such receipt, application, notice, order,_ proceeding, resolution or documents or the existence of entry in the register and shall be admitted as evidence of the matters and transactions therein where the original thereof would, if produced, have been admissible in evidence, notwithstanding anything contained in the Indian Evidence Act, 1872 (1 of 1872) or in any other law for the time being in force. **45. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made under this section after the expiry of three years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **46. Transitional provisions.—Notwithstanding anything contained in this Act and the Statutes,—** (a) the first Chancellor and the first Vice-Chancellor shall be appointed by the Visitor and each of the said officers shall hold office for a term of three years; (b) the first Registrar and the first Finance Officer shall be appointed by the Visitor on the recommendation of the Vice-Chancellor and each of the said officers shall hold office for a term of two years; 15 ----- (c) the first Court and the first Executive Council shall consist of not more than fifteen members, who shall be nominated by the Visitor and they shall hold office for a term of two years; (d) (i) the first Planning Board shall consist of not more than fifteen members, who shall be nominated by the Visitor out of a panel submitted by the Vice-Chancellor and they shall hold office for a term of two years; and (ii) the first Planning Board shall, in addition to the powers and functions conferred on it by this Act, exercise the powers of the Academic Council, until the Academic Council is constituted under the provisions of this Act and the Statutes, and in the exercise of such powers, the Planning Board may co-opt such members as it may decide: Provided that if any vacancy occurs in the above offices or authorities, the same shall be filled by appointment or nomination, as the case may be, by the Visitor, and the person so appointed or nominated shall hold office for so long as the officer or member in whose place he is appointed or nominated would have held that office, if such vacancy had not occurred. **47. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid** **before Parliament.—(1) Every Statute, Ordinance or Regulation made under this Act shall be published** in the Official Gazette. (2) Every Statute, Ordinance or Regulation made under this Act shall be laid as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the Statute, Ordinance or Regulation or both Houses agree that the Statute, Ordinance or Regulation should not be made, the Statute, Ordinance or Regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that Statute, Ordinance or Regulation. (3) The power to make Statutes, Ordinances or Regulations shall include the power to give retrospective effect from a date not earlier than the date of commencement of this Act, to the Statutes, Ordinances or Regulations or any of them but no retrospective effect shall be given to any Statute, Ordinance or Regulation so as to prejudicially affect the interests of any person to whom such Statute, Ordinance or Regulation may be applicable. **48. Completion of courses of studies in colleges or institutions affiliated to the** **University.—Notwithstanding anything contained in this Act, or in the Statutes or the Ordinances, any** student of a college or an institution, who, immediately before the admission of such college or institution to the privileges of the University, was studying for a degree, diploma or certificate of any University constituted under any Act, shall be permitted by the University, to complete his course for that degree, diploma or certificate, as the case may be, and the University shall provide for the instructions and examination of such student in accordance with the syllabus of studies of such college or institution or University, as the case may be. **49. Transfer of assets and options of the employees.—Notwithstanding anything contained in this** Act, or in the Statutes or the Ordinances, consequent upon merger of the Training Ship Chanakay, Mumbai, the Marine Engineering and Research Institute, Mumbai, the Marine Engineering and Research Institute, Kolkata, Lal Bahadur Shastri College of Advance Maritime Studies, Mumbai, the National Maritime Academy, Chennai, Indian Institute of Port Management, Kolkata and the National Ship Design and Research Centre, Visakhapatnam into the Indian Maritime University, all the assets and employees shall stand transferred to the University and such employees shall have the following options:— (i) the employees of the four training institutes under Indian Institute of Maritime Studies who shall stand transferred to Indian Maritime University shall have the option to continue on deemed deputation in Indian Maritime University on the terms and conditions in force of the Central Government and also continue to retain or to be allotted government residential accommodation on turn and avail of the Central Government Health Scheme facilities till their retirement; 16 ----- (ii) the employees of the National Maritime Academy, Chennai, Indian Institute of Port Management, Kolkata and the National Ship Design and Research Centre, Visakhapatnam shall have the option to continue on the terms and conditions of their respective institutes till their retirement; and (iii) all employees shall have the option to join University as per the service conditions of the University. **50. Role of Central Government and Director-General of Shipping.—(1) The University shall, in** discharge of its functions under this Act, be bound by such directions on questions of policy as the Central Government may give in writing to it from time to time. (2) The decision of the Central Government as to whether a question is one of policy or not shall be final. 17 ----- THE SCHEDULE (See section 29) THE STATUTES OF THE UNIVERSITY **1. The Chancellor.—(1) The Chancellor shall be appointed by the Visitor recommended by the** Executive Council from amongst three persons of eminence in the field of academic, maritime, public administration, or public life of the country: Provided that if the Visitor does not approve of any of the persons so recommended, he may call for fresh recommendations from the Executive Council. (2) The Chancellor shall hold office for a term of three years and shall be eligible for re-appointment: Provided that notwithstanding the expiry of his term of office, the Chancellor shall continue to hold office until his successor enters upon his office. **2. The Vice-Chancellor.—(1) The Vice-Chancellor shall be appointed by the Visitor from a panel of** not less than three persons having experience in the field of human resource management, maritime, public administration, marine or port administration: Provided that if the Visitor does not approve of any of the persons included in the panel, he may call for a fresh panel. (2) The Committee referred to in clause (1), shall consist of three persons, none of whom shall be an employee of the University or the Academic Council or a member of the Court, the Executive Council, Planning Board or member of any authority of the University or connected with an institution recognised by or associated with the University and out of the three persons, one shall be nominated by the Executive Council, one by the Court and one by the Visitor and the nominee of the Visitor shall be the convener of the Committee. (3) The Vice-Chancellor shall be a whole-time salaried officer of the University. (4) The Vice-Chancellor shall hold office for a term of five years from the date on which he enters upon his office, or until he attains the age of sixty-five years, whichever is earlier, and he shall not be eligible for re-appointment: Provided that notwithstanding the expiry of the said period of five years, he shall continue in office until his successor is appointed and enters upon his office: Provided further that the Visitor may direct any Vice-Chancellor after his term has expired, to continue in office for such period, not exceeding a total period of one year, as may be specified by him. (5) The emoluments and other conditions of service of the Vice-Chancellor shall be as follows:— (i) The Vice-Chancellor shall be paid a monthly salary and allowances other than the house rent allowance, at the rates fixed by the Central Government from time to time and he shall be entitled, without payment of rent, to use a furnished residence throughout his term of office and no charge shall fall on the Vice-Chancellor in respect of the maintenance of such residence. (ii) The Vice-Chancellor shall be entitled to such terminal benefits and allowances as may be fixed by the Executive Council with the approval of the Visitor from time to time: Provided that where an employee of the University or a college or an institution maintained by or affiliated to it, or of any other University or any institution maintained by or affiliated to such other University, is appointed as the Vice-Chancellor, he may be allowed to continue to any provident fund of which he is a member and the University shall contribute to the account of such person in that provident fund at the same rate at which the person had been contributing immediately before his appointment as the Vice-Chancellor: Provided further that where such employee had been a member of any pension scheme, the University shall make the necessary contribution to such scheme. 18 ----- (iii) The Vice-Chancellor shall be entitled to travelling allowance at such rate as may be fixed by the Executive Council. (iv) The Vice-Chancellor shall be entitled to leave on full pay at the rate of thirty days in a calendar year and the leave shall be credited to his account in advance in two half-yearly instalments of fifteen days each on the 1st day of January and July every year: Provided that if the Vice-Chancellor assumes or relinquinshes charges of the office of the Vice Chancellor during the currency of a half year, the leave shall be credited proportionately at the rate of two and-a-half days for each completed month of service. (v) In addition to the leave referred to in sub-clause (iv), the Vice-Chancellor shall also be entitled to half pay leave at the rate of twenty days for each completed year of service. This half pay leave may also be availed of as commuted leave on full pay on medical certificate. When commuted leave is availed, twice the amount of half pay leave shall be debited against half pay leave due. (6) If the office of the Vice-Chancellor becomes vacant due to death, resignation or otherwise, of if he is unable to perform his duties due to ill health or any other cause, the Pro-Vice-Chancellor shall perform the duties of the Vice-Chancellor: Provided that if the Pro-Vice-Chancellor is not available, the senior-most Professor shall perform the duties of the Vice-Chancellor until a new Vice-Chancellor assumes office or until the existing ViceChancellor attends to the duties of his office, as the case may be. **3. Powers and duties of the Vice-Chancellor.—(1) The** Vice-Chancellor shall be _ex officio_ Chairman of the Executive Council, the Academic Council, the Planning Board, Board of Affiliation and Recognition and the Finance Committee and shall, in the absence of the Chancellor, preside at the convocations held for conferring degrees. (2) The Vice-Chancellor shall be entitled to be present at, and address, any meeting of any authority or other body of the University, but shall not be entitled to vote thereat unless he is a member of such authority or body. (3) It shall be the duty of the Vice-Chancellor to see that this Act, the Statutes, the Ordinances and the Regulations are duly observed, and he shall have all the powers necessary to ensure such observance. (4) The Vice-Chancellor shall exercise control over the affairs of the University and shall give effect to the decisions of all the authorities of the University. (5) The Vice-Chancellor shall have all the powers necessary for the proper maintenance of discipline in the University and he may delegate any such powers to such person or persons as he may deem fit. (6) The Vice-Chancellor shall have the power to convene or cause to be convened the meeting of the Executive Council, the Academic Council, the Planning Board and the Finance Committee. (7) The Vice-Chancellor shall have the power to make a short-term appointment with the approval of the Executive Council, for a period of six months of such persons as he may consider necessary for the functioning of the University. **4. Pro-Vice-Chancellor.—(1) Every Pro-Vice-Chancellor shall be appointed by the Executive** Council on the recommendation of the Vice-Chancellor: Provided that where the recommendation of the Vice-Chancellor is not accepted by the Executive Council, the matter shall be referred to the Visitor who may either appoint the person recommended by the Vice-Chancellor or ask the Vice-Chancellor to recommend another person to the Executive Council: Provided further that the Executive Council may, on the recommendation of the Vice-Chancellor, appoint a Professor to discharge the duties of a Pro-Vice-Chancellor in addition to his own duties as a Professor. (2) The term of office of a Pro-Vice-Chancellor shall be such as may be decided by the Executive Council but it shall not in any case exceed five years or until the expiration of the term of office of the Vice-Chancellor, whichever is earlier: 19 ----- Provided that a Pro-Vice-Chancellor whose term of office has expired shall be eligible for reappointment: Provided further that, in any case, a Pro-Vice-Chancellor shall retire on attaining the age of sixty-five years: Provided also that the Pro-Vice-Chancellor shall, while discharging the duties of the Vice-Chancellor under clause (6) of Statute 2, continue in office notwithstanding the expiration of his term of office as Pro-Vice-Chancellor, until a new Vice-Chancellor or the Vice-Chancellor, as the case may be, assumes office: Provided also that when the office of the Vice-Chancellor becomes vacant and there is no Pro-Vice-Chancellor to perform the functions of the Vice-Chancellor, the Executive Council may appoint Pro-Vice-Chancellor and the Pro-Vice-Chancellor so appointed shall cease to hold office as such as soon as a Vice-Chancellor is appointed and enters upon his office. (3) (a) The emoluments and other terms and conditions of service of a Pro-Vice-Chancellor shall be such as may be laid down by the Ordinances. (b) The salary of the Pro-Vice-Chancellor shall be decided by the Executive Council with the approval of the Visitor. (c) The Pro-Vice-Chancellor shall be entitled without payment of rent, to the use of a furnished residence throughout his tenure of office and no charge shall fall on the Pro-Vice-Chancellor personally in respect of maintenance of such residence. (d) In addition to the salary specified in sub-clause (b), a Pro-Vice-Chancellor shall be entitled to such leave, benefits and other allowances as admissible to the employees of the University from time to time. (e) The Pro-Vice-Chancellor shall be entitled to such terminal benefits as may be fixed by the Executive Council from time to time. (f) The Pro-Vice-Chancellor shall be entitled to subscribe to the contributory provident fund of the University till the end of his tenure: Provided that when an employee of the University or a college or an institution or of any other University or institution maintained or affiliated to such other University is appointed as Pro-Vice-Chancellor, his salary shall be fixed after taking into consideration the salary of such person. (4) A Pro-Vice-Chancellor shall assist the Vice-Chancellor in respect of such matters as may be specified by the Vice-Chancellor in this behalf, from time to time, and shall also exercise such powers and perform such duties as may be assigned or delegated to him by the Vice-Chancellor. **5. Registrars.—(1) Every Registrar shall be appointed by the Executive Council on the** recommendation of a Selection Committee constituted for the purpose and shall be a whole-time salaried officer of the University: Provided that a nominee of the Court shall also be included in the Selection Committee. (2) He shall be appointed for a term of five years and shall be eligible for reappointment for one more term. (3) The emoluments and other terms and conditions of service of the Registrar shall be such as may be prescribed by the Ordinances: Provided that the Registrar shall retire on attaining the age of sixty-two years. (4) When the office of the Registrar is vacant or when the Registrar is, by reason of illness, absence, or any other cause, unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) (a) The Registrar shall have power to take disciplinary action against such of the employees, excluding teachers and academic staff, as may be specified in the order of the Executive Council and to 20 ----- suspend them pending inquiry, to administer warnings to them or to impose upon them the penalty of censure or the withholding of increment: Provided that no such penalty shall be imposed unless the person concerned has been given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. (b) An appeal shall lie to the Vice-Chancellor against any order of the Registrar imposing any of the penalties specified in sub-clause (a). (c) In a case where the inquiry discloses that a punishment beyond the power of the Registrar is called for, the Registrar shall, upon conclusion of the inquiry, make a report to the Vice-Chancellor along with his recommendations: Provided that an appeal shall lie to the Executive Council against an order of the Vice-Chancellor imposing any penalty on an employee. (6) The Executive Council shall designate any Registrar to act _ex officio in one or more of the_ following capacities, namely:— (i) Secretary to the Court; (ii) Secretary to the Executive Council; (iii) Secretary to the Academic Council; (iv) Secretary to the Board of Affiliation and Recognition; and (v) Secretary to the Planning Board. (7) It shall be the duty of the Registrar so designated in relation to the authority concerned to— (a) be the custodian of the records, the common seal and such other property of the University as the Executive Council shall commit to his charge; (b) issue all notices convening meetings of that authority and the Committees appointed by it; (c) keep the minutes of all the meetings of that authority and the Committees appointed by it; (d) conduct the official correspondence of the Court, the Executive Council, the Academic Council, the Planning Board and the Board of Affiliation and Recognition; (e) arrange for and superintend the examinations of the University in accordance with the manner prescribed by the Ordinances; (f) supply to the Visitor copies of the agenda of meetings of the authorities of the University as soon as they are issued; and the minutes of such meetings; (g) represent the University in suits or proceedings by or against the University, sign powers-of attorney and verify pleadings or depute his representative for the purpose; and (h) perform such other duties as may be specified in the Statutes, the Ordinances or the Regulations or as may be required, from time to time, by the Executive Council or the ViceChancellor. **6. The Finance Officer.—(1) The Finance Officer shall be appointed by the Executive Council on** the recommendations of a Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. (2) He shall be appointed for a term of five years and shall be eligible for reappointment for one more term. (3)The emoluments and other terms and conditions of service of the Finance Officer shall be such as may be laid down by the Ordinances: Provided that a Finance Officer shall retire on attaining the age of sixty-two years. 21 ----- (4) When the office of the Finance Officer is vacant or when the Finance Officer is, by reason of illness, absence or any other cause, unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) The Finance Officer shall be _ex officio Secretary of the Finance Committee but shall not be_ deemed to be a member of such Committee. (6) The Finance Officer shall— (a) exercise general supervision over the funds of the University and shall advise it as regards its financial policy; and (b) perform such other financial functions as may be assigned to him by the Executive Council or as may be prescribed by the Statutes or the Ordinances: Provided that the Finance Officer shall not make any expenditure or make any investment exceeding one lakh rupees without the prior approval of the Executive Council. (7) Subject to the control of the Executive Council, the Finance Officer shall— (a) hold and manage the property and investments of the University including trust and endowed property; (b) ensure that the limits fixed by the Executive Council for recurring and non-recurring expenditure for a year are not exceeded and that all moneys are expended on the purpose for which they are granted or allotted; (c) be responsible for the preparation of annual accounts and the budget of the University and for their presentation to the Executive Council after they have been considered by the Finance Committee; (d) keep a constant watch on the state of the cash and balances and on the state of investments; (e) watch the progress of the collection of revenue and advise on the methods of collection employed; (f) ensure that the registers of buildings, land, furniture and equipment are maintained up-to-date and that stock-checking is conducted, of equipment and other consumable materials in all offices, Special Centres, Specialised Laboratories, colleges and institutions maintained by the University; (g) bring to the notice of the Vice-Chancellor, unauthorised expenditure or any other financial irregularities and suggest appropriate action against persons at fault; and (h) call for from any office, Centre, Laboratory, college or institution maintained by the University any information that he may consider necessary for the performance of his duties. (8) Any receipt given by the Finance Officer or the person or persons duly authorised in this behalf by the Executive Council for any money payable to the University shall be sufficient discharge for payment of such money. **7. Deans of Schools of Studies.—(1) Every Dean of a School of Studies shall be appointed by the** Vice-Chancellor from among the Professors in the School for a period of three years and he shall be eligible for reappointment: Provided that a Dean on attaining the age of sixty years shall cease to hold office as such: Provided further that if at any time there is no Professor in a School, the Vice-Chancellor, or a Dean authorised by the Vice-Chancellor in this behalf, shall exercise the powers of the Dean of the School. (2) When the office of the Dean is vacant or when the Dean is, by reason of illness, absence or any other cause, unable to perform duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (3) The Dean shall be the Head of the School and shall be responsible for the conduct and maintenance of the standards of teaching and research in the School and shall have such other functions as may be prescribed by the Ordinances. 22 ----- (4) The Dean shall have the right to be present and to speak at any meeting of the Boards of Studies or Committees of the School, as the case may be, but shall not have the right to vote thereat unless he is a member thereof. **8. Heads of Departments.—(1) In the case of Departments which have more than one Professor, the** Head of the Department shall be appointed by the Executive Council on the recommendation of the ViceChancellor from among the Professors on rotation basis. (2) In the case of Departments where there is only one Professor, the Executive Council shall have the option to appoint, on the recommendation of the Vice-Chancellor, either the Professor or a Reader as the Head of the Department: Provided that it shall be open to a Professor or Reader to decline the offer of appointment as the Head of the Department. (3) A person appointed as the Head of the Department shall hold office as such for a period of three years and shall be eligible for reappointment. (4) A Head of a Department may resign his office at any time during his tenure of office. (5) A Head of a Department shall perform such duties as may be prescribed by the Ordinances. **9. Proctors.—(1) Every Proctor shall be appointed by the Executive Council on the recommendation** of the Vice-Chancellor and shall exercise such powers and perform such duties as may be assigned to him by the Vice-Chancellor. (2) Every Proctor shall hold office for a term of two years and shall be eligible for reappointment. **10. Librarian.—(1) The Librarian shall be appointed by the Executive Council on the** recommendations of the Selection Committee constituted for the purpose and he shall be a whole-time officer of the University. (2) The Librarian shall exercise such powers and perform such duties as may be assigned to him by the Executive Council. **11. Membership, Constitution, Quorum and Tenure of the Executive Council.—(1) The** Executive Council shall consist of the following members, namely:— (a) the Vice-Chancellor, who shall be the Chairperson, ex officio; (b) the Pro-Vice-Chancellor, ex officio; (c) the Secretary of Ministry of Shipping, Road Transport and Highways (Department of Shipping), Government of India, or his nominee not below the rank of a Joint Secretary; (d) the Director-General of Shipping or his nominee not below the rank of a Joint Secretary; (e) The Chairman, Indian Port Association, New Delhi; (f) the Financial Adviser, Ministry of Shipping, Road Transport and Highways (Department of Shipping), Government of India, or his nominee not below the rank of a Joint Secretary; (g) five members to be nominated by the Visitor having special knowledge and/or practical experience in respect of maritime-education, industry, science or technology and other related subjects on the recommendation of the Vice-Chancellor, out of a panel of at least ten persons; (h) one member not below the rank of Joint Secretary to be appointed by the Central Government to represent the Ministry of Defence of the Central Government; (i) one Dean of Schools of Studies nominated by the Vice- Chancellor by rotation on the basis of seniority; (j) two Directors nominated by the Vice-Chancellor by rotation on the basis of seniority; (k) three Principals of the affiliated colleges and academic institutions nominated by the Executive Council by rotation; 23 ----- (l) one Vice-Chancellor present or former, of any technical University; and (m) one representative of the Government of the State where University is located. (2) The Registrar shall be ex officio Secretary of the Executive Council. (3) Seven members of the Executive Council shall form a quorum for a meeting of the Executive Council. (4) The members of the Executive Council other than ex officio members shall hold office for a term of three years. (5) There shall be not less than four meetings of the Executive Council in a year and the rules of procedure for conduct of business to be followed at a meeting and such other matters in relation to meeting as may be necessary shall be such as may be prescribed by the Statutes. **12. Powers and functions of the Executive Council.—(1) The Executive Council shall have the** power of management and administration of the revenue and property of the University and the conduct of all administrative affairs of the University not otherwise provided for. (2) Subject to the provisions of this Act, the Statutes and the Ordinances, the Executive Council shall, in addition to all other powers vested in it, have the following powers, namely:— (i) to create teaching and academic posts, to determine the number and emoluments of such posts and to define the duties and conditions of service of Professors, Associate Professors, Assistant Professors and other academic staff and Principals of colleges and institutions maintained by the University: Provided that no action shall be taken by the Executive Council in respect of the number, qualifications and the emoluments of teachers and academic staff otherwise than after consideration of the recommendations of the Academic Council; (ii) to appoint such Professors, Associate Professors, Assistant Professors and other academic staff, as may be necessary, and the Principals of colleges and institutions maintained by the University on the recommendation of the Selection Committee constituted for the purpose and to fill the temporary vacancies therein; (iii) to create administrative, ministerial and other necessary posts and to make appointments thereto in the manner prescribed by the Ordinances; (iv) to grant leave of absence to any officer of the University other than the Chancellor and the Vice-Chancellor, and to make necessary arrangements for the discharge of the functions of such officer during his absence; (v) to regulate and enforce discipline among employees in accordance with the Statutes and the Ordinances; (vi) to manage and regulate the finances, accounts, investments, property, business and all other administrative affairs of the University, and for that purpose to appoint such agents as it may think fit; (vii) to fix limits on the total recurring and the total non-recurring expenditure for a year on the recommendations of the Finance Committee; (viii) to invest any money belonging to the University, including any unapplied income, in such stocks, funds, share or securities, from time to time, as it may think fit or in the purchase of immovable property in India, with the like powers of varying such investment from time to time; (ix) to transfer or accept transfers of any movable or immovable property on behalf of the University; (x) to provide buildings, premises, furniture and apparatus and other means needed for carrying on the work of the University; (xi) to enter into, vary, carry out and cancel contracts on behalf of the University; 24 ----- (xii) to entertain, adjudicate upon, and, if thought fit, to redress any grievances of the employees and students of the University who may, for any reason, feel aggrieved; (xiii) to appoint examiners and moderators and, if necessary, to remove them, and to fix their fees, emoluments and travelling and other allowances, after consulting the Academic Council; (xiv) to select a common seal for the University and provide for the custody and use of such seal; (xv) to make such special arrangements as may be necessary for the residence and discipline of women students; (xvi) to delegate any of its powers to the Vice-Chancellor, the Pro-Vice-Chancellor, the Deans, the Registrar or the Finance Officer or such other employee or authority of the University or to a committee appointed by it as it may deem fit; (xvii) to institute fellowships, scholarships, studentships, assistantships, medals and prizes; (xviii) to provide for the appointment of Visiting Professors, Emeritus Professors, Consultants and Scholars and determine the terms and conditions of such appointments; and (xix) to exercise such other powers and perform such other duties as may be conferred or imposed on it by the Act, or the Statutes. **13. Meetings of the Court.—(1) An annual meeting of the Court shall be held on a date to be fixed** by the Executive Council unless some other date has been fixed by the Court in respect of any year. (2) At an annual meeting of the Court, a report on the working of the University during the previous year, together with a statement of the receipts and expenditure, the balance-sheet as audited, and the financial estimates for the next year shall be presented. (3) A copy of the statement of receipts and expenditure, the balance-sheet and the financial estimates referred to in clause (2), shall be sent to every Member of the Court at least seven days before the date of the annual meeting. (4) Twelve Members of the Court shall form a quorum for a meeting of the Court. (5) Special meetings of the Court may be convened by the Executive Council or the Vice-Chancellor or if there is no Vice-Chancellor, Pro-Vice-Chancellor or if there is no Pro-Vice-Chancellor, by the Registrar. (6) The Court shall consist of the following members, namely:— _Ex Officio Members:_ (i) the Vice-Chancellor; (ii) the Pro-Vice-Chancellor; (iii) the Deans of Schools of Studies; (iv) the Heads of teaching Departments who are not the Deans; (v) the Dean of students' Welfare; (vi) the Registrar; (vii) the Librarian; (viii) the Proctor; (ix) the Finance Officer. _Representatives of Teachers:_ (x) All Professors who are not Heads of teaching Departments; (xi) Two Readers who are not Heads of teaching Departments, by rotation according to seniority, to be appointed by the Vice-Chancellor; 25 ----- (xii) Two Lecturers by rotation according to seniority, to be appointed by the Vice-Chancellor. _Representatives of Non-Teaching Staff:_ (xiii) Two members of the non-teaching staff, one from among group 'D' Staff and the other from the rest, to be nominated by the Vice-Chancellor. _Representatives of Institutions affiliated to the University:_ (xiv) One representative from the affiliated institutions who shall be the head of the institution, to be nominated by the Vice-Chancellor. _Representatives of Parliament:_ (xv) Five representatives of Parliament out of which three to be nominated by the Speaker of the Lok Sabha and two by the Chairman of the Rajya Sabha from amongst the Members thereof. However, consequent upon a Member of Parliament becoming a Minister or Speaker or Deputy Speaker, of the Lok Sabha or Deputy Chairman of the Rajya Sabha, his/her nomination or election to the Court of the University shall be deemed to have been terminated. _Persons representing Industry:_ (xvi) Eleven persons representing the Maritime Industries, to be nominated by Visitor out of which one each from,- Indian National Ship Owners' Association, Maritime Association of Ship Owners and Ship Managers Association, Foreign Owners Representatives and Ship Managers Association, Ship Building Industries, Dredging Industries, Offshore Industries, Unions representing Seamen, Association of Multimodal Transport Operators of India, Indian Register of Shipping, Major and Minor Ports; (xvii) Ten representatives of maritime States, out of which one each to be nominated by the States or Union territories. _Other Members:_ (xviii) Members of the Executive Council, who are not authorised members of the Court. (7) All members of the Court, other than the ex officio members, shall hold office for a term of three years: Provided that a Member of Parliament shall hold office for three years or so long as he continues to be a member of the House which he represents, whichever is less. **14. Membership, Constitution, Quorum and Tenure of the Academic Council.—(1) The** Academic Council shall consist of the following members, namely:— (a) the Vice-Chancellor, who shall be the Chairperson, ex officio; (b) the Pro-Vice-Chancellor; (c) the Chief Surveyor, Directorate-General of Shipping, Ministry of Shipping, Road Transport and Highways (Department of Shipping), Government of India, or his nominee; (d) the Nautical Advisor, Directorate-General of Shipping, Ministry of Shipping, Road Transport and Highways (Department of Shipping), Government of India, or his nominee; (e) the Deans of Schools of Studies; (f) all Directors of University maintained Campuses; (g) all Heads of University teaching Departments; (h) one Professor from each University teaching Department by rotation on the basis of seniority to be nominated by the Vice-Chancellor; (i) three eminent experts in the field of maritime studies and related subjects, nominated by the Vice-Chancellor; and (j) two Principals of recognised colleges. 26 ----- (2) The Registrar shall be _ex officio Secretary to the Academic Council, but shall have no right to_ vote. (3) Nine members of the Academic Council shall form a quorum for a meeting of the Academic Council. (4) The members of the Academic Council other than ex officio members, shall hold office for a term of three years. (5) The Academic Council shall meet at least twice a year. **15. Powers of the Academic Council.—Subject to the Act, the Statutes and the Ordinances, the** Academic Council shall, in addition to all other powers vested in it, have the following powers, namely:— (a) to exercise general supervision over the academic policies of the University and to give directions regarding methods of instructions, co-operative teaching among colleges and institutions, evaluation of research or improvements in academic standards; (b) to bring about inter-School co-ordination, to establish or appoint committees or boards, for taking up projects on an inter-School basis; (c) to consider matters of general academic interest either on its own initiative or on a reference by a School or the Executive Council and to take appropriate action thereon; (d) to frame such regulations and rules consistent with the Statutes and the Ordinances regarding the academic functioning of the University, discipline, residences, admissions, award of fellowship assistantship, research assistantship and studentships, fees, concessions, corporate life and attendance; (e) to recommend the Executive Council, the number, qualification and the emolument of the teacher and other academic staff; (f) to recommend the Executive Council, examiners and moderators; (g) to recommend the Executive Council, persons for award of honorary degrees; and (h) to recommend the executive council, setting up of Chairs. **16. Membership, Constitution, Quorum and Tenure of the Planning Board.—(1) The Planning** Board shall consist of the following members, namely:— (a) the Vice-Chancellor, who shall be the Chairperson ex officio; (b) the Pro-Vice-Chancellor; (c) the Secretary, Department of Shipping, in the Government of India or his nominee not below the rank of a Joint Secretary; (d) the Secretary, Ministry of Defence in the Government of India, or his nominee not below the rank of a Joint Secretary; (e) the Director-General of Shipping, Department of Shipping, in the Government of India; (f) the Financial Adviser, Department of Shipping, in the Government of India, or his nominee not below the rank of a Joint Secretary; (g) two members to be nominated by the Visitor having special knowledge and/or practical experience in respect of maritime-education, industry, science or technology and other related subjects on the recommendation of the Vice-Chancellor out of a panel of at least six persons; (h) one Dean of Schools of Studies nominated by the Vice-Chancellor by rotation on the basis of seniority; (i) one Director of the University Campus nominated by the Vice-Chancellor by rotation on the basis of seniority; (j) one Principal of the affiliated colleges nominated by the Executive Council by rotation; and 27 ----- (k) one Vice-Chancellor present or former, of any Technical University: Provided that the members nominated under sub-clauses (e) to (i) above shall, as far as practicable, be drawn from different faculties. (2) The Registrar shall be the ex officio Secretary of the Planning Board. (3) The conduct of the meetings of the Planning Board and the quorum required for such meetings shall be prescribed by the Ordinances. (4) The members of the Planning Board other than ex officio members, shall hold office for a term of three years. **17. The Planning Board.—(1) The Planning Board shall be the principal planning body of the** University and shall be responsible for— (a) reviewing the educational programmes offered by the University; (b) organising the structure of education in the University so as to provide opportunities to students to offer different combinations of subjects appropriate for the development of personality and skills for useful work in society; (c) creating an atmosphere and environment conducive to value oriented education; and (d) developing new teaching-learning processes which will combine the lectures, tutorials, seminars, demonstrations, self-studies and collective practical projects. (2) The Planning Board shall have the power to advise on the development of the University and review the progress implementation of programmes so as to ascertain whether they are on the lines recommended by it and shall also have the power to advise the Executive Council and the Academic Council on any matter in connection therewith. (3) The Academic Council and the Executive Council shall be bound to consider the recommendations of the Planning Board and shall implement such of the recommendations as are accepted by it. (4) Recommendations of the Planning Board as have not been accepted by the Executive Council or the Academic Council under clause (3) shall be submitted by the Vice-Chancellor along with the recommendations of the Executive Council or the Academic Council, to the Visitor for advice and the advice of the Visitor shall be implemented by the Executive Council or the Academic Council, as the case may be. (5) The Planning Board may constitute such committees as may be necessary for planning and monitoring the programmes of the University. **18. Schools of Studies and Departments.—(1) The University shall have such Schools of Studies as** may be specified by the Ordinances. (2) Every School shall have a School Board and the members of the first School Board shall be nominated by the Executive Council and shall hold office for a period of three years. (3) The powers and functions of a School Board shall be prescribed by the Ordinances. (4) The conduct of the meetings of a School Board and the quorum required for such meetings shall be prescribed by the Ordinances. (5) (a) Each School shall consist of such Departments as may be assigned to it by the Ordinances. (b) No Department shall be established or abolished except by the Statutes: Provided that the Executive Council may, on the recommendation of the Academic Council, establish Centres of Studies to which may be assigned such teachers of the University as the Executive Council may consider necessary. (c) Each Department shall consist of the following members, namely:— (i) Teachers of the Department; 28 ----- (ii) Persons conducting research in the Department; (iii) Dean of the School; (iv) Honorary Professors, if any, attached to the Department; and (v) Such other persons as may be members of the Department in accordance with the provisions of the Ordinances. **19. Boards of Studies.—(1) Each Department shall have a Board of Post-graduate Studies and a** Board of Under-graduate Studies. (2) The Constitution of a Board of Post-graduate Studies and the term of office of its members shall be prescribed by the Ordinances. (3)The functions of a Board of Post-graduate Studies shall be to approve subjects for research for various degrees and other requirements of research degrees and to recommend to the concerned School Board in the manner prescribed by the Ordinances— (a) courses of studies and appointment of examiners for Post-graduate courses, but excluding research degrees; (b) appointment of supervisors of research; and (c) measures for the improvement of the standard of Post-graduate teaching and research: Provided that the above functions of a Board of Post-graduate Studies shall, during the period of three years immediately after the commencement of the Act, be performed by the Department. (4) The constitution and functions of a Board of Under-graduate, Post-graduate and Vocational Studies and the term of its members shall be prescribed by the Ordinances. **20. Finance Committee.—(1) The Finance Committee shall consist of the following members,** namely:— (i) the Vice-Chancellor; (ii) the Pro-Vice-Chancellor; (iii) three persons nominated by the Executive Council, out of whom at least one shall be a member of the Executive Council; (iv) three persons nominated by the Visitor; and (v) atleast one person to be nominated by the Court. (2) Five members of the Finance Committee shall form a quorum for a meeting of the Finance Committee. (3) All the members of the Finance Committee, other than ex officio members, shall hold office for a term of three years. (4) A member of the Finance Committee shall have the right to record a minute of dissent if he does not agree with any decision of the Finance Committee. (5) The Finance Committee shall meet at least thrice every year to examine the accounts and to scrutinise proposals for expenditure. (6) All proposals relating to creation of posts, and those items which have not been included in the Budget, should be examined by the Finance Committee before they are considered by the Executive Council. (7) The annual accounts and the financial estimates of the University prepared by the Finance Officer shall be laid before the Finance Committee for consideration and comments and thereafter submitted to the Executive Council for approval. 29 ----- (8) The Finance Committee shall recommend limits for the total recurring expenditure and the total non-recurring expenditure for the year, based on the income and resources of the University (which, in the case of productive works, may include the proceeds of loans). **21. Selection Committees.—(1) There shall be Selection Committees for making recommendations** to the Executive Council for appointment to the posts of Professor, Reader, Lecturer, Registrar, Finance Officer, Librarian and Principals of colleges and institutions maintained by the University. (2) The Selection Committee for appointment to the posts specified in column 1 of the Table below shall consist of the Vice-Chancellor, Pro-Vice-Chancellor, a nominee of the Visitor and the persons specified in the corresponding entry in column 2 of the said Table: TABLE 1 2 Professor (i) The Head of Department concerned, if he is a Professor. (ii) One Professor to be nominated by the Vice-Chancellor. (iii) Three persons not in the service of the University, nominated by the Executive Council, out of a panel of names recommended by the Academic Council for their special knowledge of, or interest in, the subject with which the Professor will be concerned. Reader/Lecturer (i) The Head of the Department concerned. (ii) One Professor to be nominated by the Vice-Chancellor. (iii) Two persons not in the service of the University, nominated by the Executive Council, out of a panel of names recommended by the Academic Council for their special knowledge of, or interest in the subject with which the Reader or a Lecturer will be concerned. Registrar, Finance Officer (i) Two members of the Executive Council nominated by it. (ii) One person not in the service of the University nominated by the Executive Council. Librarian (i) Two persons not in the service of the University, who have special knowledge of the subject of the Library Science/ Library Administration to be nominated by the Executive Council. (ii) One person not in the service of the University, nominated by the Executive Council. Principal of college or institution maintained by the University Three persons not in the service of the University of whom two shall be nominated by the Executive Council and one by the Academic Council for their special knowledge of, or interest in, a subject in which instruction is being provided by the college or institution. _NOTE: 1. Where the appointment is being made for an inter-disciplinary project, the head of the_ project shall be deemed to be the Head of the Department concerned. 2. The Professor to be nominated shall be Professor concerned with the speciality for which the selection is being made and that the Vice-Chancellor shall consult the Head of the Department and the Dean of School before nominating the Professor. (3) The Vice-Chancellor, or in his absence, the Pro-Vice-Chancellor shall preside at the meetings of a Selection Committee: Provided that the meetings of the Selection Committee shall be fixed after prior consultation with, and subject to the convenience of Visitor's nominee and the persons nominated by the Executive Council under clause (2): 30 ----- Provided further that the proceedings of the Selection Committee shall not be valid unless,— (a) where the number of Visitor's nominee and the persons nominated by the Executive Council is four in all, at least three of them attend the meeting; and (b) where the number of Visitor's nominee and the persons nominated by the Executive Council is three in all, at least two of them attend the meeting. (4) The meeting of a Selection Committee shall be convened by the Vice-Chancellor or in his absence by the Pro-Vice-Chancellor. (5) The procedure to be followed by a Selection Committee in making recommendations shall be laid down in the Ordinances. (6) If the Executive Council is unable to accept the recommendations made by a Selection Committee, it shall record its reasons and submit the case to the Visitor for final orders. (7) Appointments to temporary posts shall be made in the manner indicated below:— (i) If the temporary vacancy is for a duration longer than one academic session, it shall be filled on the advice of the Selection Committee in accordance with the procedure indicated in the foregoing clauses: Provided that if the Vice-Chancellor is satisfied that in the interests of work it is necessary to fill the vacancy, the appointment may be made on a purely temporary basis by a local Selection Committee referred to in sub-clause (ii) for a period not exceeding six months. (ii) If the temporary vacancy is for a period less than a year, an appointment to such vacancy shall be made on the recommendation of a local Selection Committee consisting of the Dean of the School concerned, the Head of the Department and a nominee of the Vice-Chancellor: Provided that if the same person holds the offices of the Dean and the Head of the Department, the Selection Committee may contain two nominees of the Vice-Chancellor: Provided further that in case sudden casual vacancies of teaching posts caused by death or any other reason, the Dean may, in consultation with the Head of the Department concerned, make a temporary appointment for a month and report to the Vice-Chancellor and the Registrar about such appointment. (iii) No teacher appointed temporarily shall, if he is not recommended by the regular Selection Committee for appointment under the Statutes, be continued in service on such temporary employment, unless he is subsequently selected by a local Selection Committee, for a temporary or permanent appointment, as the case may be. **22. Special mode of appointment.—(1) Notwithstanding anything contained in Statute 21,** Executive Council may invite a person of high academic distinction and professional attainments to accept a post of Professor or Reader or any other academic post in the University, as the case may be, on such terms and conditions as it deems fit, and on the person agreeing to do so appoint him to the post. (2) The Executive Council may appoint a teacher or any other academic staff working in any other University or organisation for undertaking a joint project in accordance with the manner, laid down in the Ordinances. **23. Appointment for a fixed tenure.—The Executive Council may appoint a person selected in** accordance with the procedure laid down in Statute 21 for a fixed tenure on such terms and conditions as it deems fit. **24. Recognised teachers.—(1) The qualifications of recognised teachers shall be such as may be** prescribed by the Ordinances. (2) All applications for the recognition of teachers shall be made in such manner as may be laid down in the Ordinances. 31 ----- (3) No teacher shall be recognised as a teacher except on the recommendation of a Selection Committee constituted for the purpose in the manner laid down in the Ordinances. (4) The period of recognition of a teacher shall be determined by the Ordinances made in that behalf. (5) The Academic Council may, by a special resolution passed by a majority of not less than two thirds of the members present and voting, withdraw recognition from a teacher: Provided that no such resolution shall be passed until notice in writing has been given to the person concerned calling upon him to show cause, within such time as may be specified in the notice, why such resolution should not be passed and until his objections, if any, and any evidence he may produce in support of them have been considered by the Academic Council. (6) Any person aggrieved by an order of withdrawal under clause (5) may, within three months from the date of communication to him of such order, appeal to the Executive Council which may pass such orders thereon as it thinks fit. **25. Committees.—(1) Any authority of the University may appoint as many Standing, Special or** Search Committees as it may deem fit, and may appoint to such Committees, persons who are not members of such authority. (2) Any such Committee appointed under clause (1) may deal with any subject delegated to it subject to subsequent confirmation by the authority appointing. **26. Terms and conditions of service and code of conduct of the teachers, etc.—(1) All the** teachers and other academic staff of the University shall, in the absence of any agreement to the contrary, be governed by the terms and conditions of service and code of conduct as are specified in the Statutes, the Ordinances and the Regulations. (2) Every teacher and member of the academic staff of the University shall be appointed on a written contract, the form of which shall be prescribed by the Ordinances. (3) A copy of every contract referred to in clause (2) shall be deposited with the Registrar. **27. Terms and conditions of service and code of conduct of other employees.—All the employees** of the University, other than the teachers and other academic staff of the University, shall, in the absence of any contract to the contrary, be governed by the terms and conditions of service and code of conduct as are specified in the Statutes, the Ordinances and the Regulations. **28. Seniority list.—(1) Whenever, in accordance with the Statutes, any person is to hold an office or** be a member of an authority of the University by rotation according to seniority, such seniority shall be determined according to the length of continuous service of such person in his grade, and, in accordance with such other principles as the Executive Council may, from time to time prescribe. (2) It shall be the duty of the Registrar to prepare and maintain, in respect of each class of persons to whom the provisions of these Statutes apply, a complete and up-to-date seniority list in accordance with the provisions of clause (1). (3) If two or more persons have equal length of continuous service in a particular grade or the relative seniority of any person or persons is otherwise in doubt, the Registrar may, on his own motion and shall, at the request of any such person, submit the matter to the Executive Council whose decision thereon shall be final. **29. Removal of employees of the University.—(1) Where there is an allegation of misconduct** against a teacher, a member of the academic staff or other employee of the University, the Vice-Chancellor, in the case of the teacher or member of the academic staff, and the authority competent to appoint (hereinafter referred to as the appointing authority) in the case of other employee, may, by order in writing, place such teacher, member of the academic staff or other employee, as the case may be, under suspension and shall forthwith report to the Executive Council the circumstances in which the order was made: Provided that the Executive Council may, if it is of the opinion, that the circumstances of the case do not warrant the suspension of the teacher or the member of the academic staff, revoke such order. 32 ----- (2) Notwithstanding anything contained in the terms of the contract of appointment or of any other terms and conditions of service of the employees, the Executive Council in respect of teachers and other academic staff, and the appointing authority, in respect of other employees, shall have the power to remove a teacher or a member of the academic staff, or as the case may be, other employee on grounds of misconduct. (3) Save as aforesaid, the Executive Council, or as the case may be the appointing authority, shall not be entitled to remove any teacher, member of the academic staff or other employee except for a good cause and after giving three months' notice or on payment of three months' salary in lieu thereof. (4) No teacher, member of the academic staff or other employee shall be removed under clause (2) or clause (3) unless he has been given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. (5) The removal of a teacher, member of the academic staff or other employee shall take effect from the date on which the order of removal is made: Provided that where the teacher, member of the academic staff or other employee is under suspension at the time of his removal, such removal shall take effect from the date on which he was placed under suspension. (6) Notwithstanding anything contained in the foregoing provisions of this Statute, a teacher, member of the academic staff or other employee may resign,— (a) if he is a permanent employee, only after giving three months' notice in writing to the Executive Council or the appointing authority, as the case may be or by paying three months' salary in lieu thereof; and (b) if he is not a permanent employee, only after giving one month's notice in writing to the Executive Council or, as the case may be, the appointing authority or by paying one month's salary in lieu thereof: Provided that such resignation shall take effect only on the date on which the resignation is accepted by the Executive Council or the appointing authority, as the case may be. **30. Honorary Degrees.—(1) The Executive Council may, on the recommendation of the Academic** Council and by a resolution passed by a majority of not less than two-thirds of the members present and voting, make proposals to the Visitor for the conferment of honorary degrees: Provided that in case of emergency, the Executive Council may, on its own motion, make such proposals. (2) The Executive Council may, by a resolution passed by a majority of not less than two-thirds of the members present and voting, withdraw, with the previous sanction of the Visitor, any honorary degree conferred by the University. **31. Withdrawal of degrees, etc.—The Executive Council may, by a special resolution passed by a** majority of not less than two-thirds of the members present and voting, withdraw any degree or academic distinction conferred on, or any certificate or diploma granted to, any person by the University for good and sufficient cause: Provided that no such resolution shall be passed until a notice in writing has been given to that person calling upon him to show cause within such time as may be specified in the notice why such a resolution should not be passed and until his objections, if any, and any evidence he may produce in support of them, have been considered by the Executive Council. **32. Maintenance of discipline among students of the University.—(1) All powers relating to** discipline and disciplinary action in relation to students of the University shall vest in the Vice-Chancellor. (2) The Vice-Chancellor may delegate all or any of his powers as he deems proper to a Proctor and to such other officers as he may specify in this behalf. 33 ----- (3) Without prejudice to the generality of his powers relating to the maintenance of discipline and taking such action, as may seem to him appropriate for the maintenance of discipline, the Vice-Chancellor may, in exercise of his powers, by order, direct that any student be expelled, or rusticated, for a specified period, or be not admitted to a course of study in a college, institution or Department of the University for a stated period, or be punished with fine for an amount to be specified in the order, or be debarred from taking an examination or examinations conducted by the University, college, institution or Department or a School for one or more years, or that the results of the student or students concerned in the examination or examinations in which he or they have appeared be cancelled. (4) The Principals of colleges, institutions, Deans of Schools of Studies and Heads of teaching Departments in the University shall have the authority to exercise all such disciplinary powers over the students in their respective colleges, institutions, Schools and teaching Departments in the University as may be necessary for the proper conduct of such colleges, institutions, Schools and teaching Departments. (5)Without prejudice to the powers of the Vice-Chancellor, the Principals and other persons specified in clause (4), detailed rules of discipline and proper conduct shall be made by the University. The Principals of colleges, institutions, Deans of Schools of Studies and Heads of teaching Departments in the University may also make the supplementary rules as they deem necessary for the aforesaid purpose. (6) At the time of admission, every student shall be required to sign a declaration to the effect that he submits himself to the disciplinary jurisdiction of the Vice-Chancellor and other authorities of the University. **33. Maintenance of discipline among Students of colleges, etc.—All powers relating to discipline** and disciplinary action in relation to students of a college or an institution, not maintained by the University, shall vest in the Principal of the college or institution, as the case may be, in accordance with the procedure prescribed by the Ordinances. **34. Admission of colleges, etc., to the privilege of the University.—(1) Colleges and other** institutions situated within the jurisdiction of the University may be admitted to such privileges of the University as the Executive Council may decide on the following conditions, namely:— (i) Every such college or institution shall have a regularly constituted Governing Body, consisting of not more than fifteen persons approved by the Executive Council and including among others, two teachers of the University to be nominated by the Executive Council and three representatives of the teaching staff of whom the Principal of the college or institution shall be one. The procedure for appointment of members of the Governing Body and other matters affecting the management of a college or an institution shall be prescribed by the Ordinances: Provided that the said condition shall not apply in the case of colleges and institutions maintained by Government which shall, however, have an Advisory Committee consisting of not more than fifteen persons which shall consist of among others, three teachers including the Principal of the college or institution, and two teachers of the University nominated by the Executive Council. (ii) Every such college or institution shall satisfy the Executive Council on the following matters, namely:— (a) the suitability and adequacy of its accommodation and equipment for teaching; (b) the qualifications and adequacy of its teaching staff and the conditions of their service; (c) the arrangements for the residence, welfare, discipline and supervision of students; (d) the adequacy of financial provision made for the continued maintenance of the college or institution; and (e) such other matters as are essential for the maintenance of the standards of University education. (iii) No college or institution shall be admitted to any privileges of the University except on the recommendation of the Academic Council made after considering the report of a Committee of Inspection appointed for the purpose by the Academic Council. 34 ----- (iv) Colleges and institutions desirous of admission to any privileges of the University shall be required to intimate their intention to do so in writing so as to reach the Registrar not later than the 15th August, preceding the year from which permission applied for is to have effect. (v) A college or an institution shall not, without the previous permission of the Executive Council and the Academic Council, suspend instruction in any subject or course of study which it is authorised to teach and teaches. (2) Appointment to the teaching staff and Principals of colleges or institutions admitted to the privileges of the University shall be made in the manner prescribed by the Ordinances: Provided that nothing in this clause shall apply to colleges and institutions maintained by Government. (3) The service conditions of the administrative and other non-academic staff of every college or institution referred to in clause (2) shall be such as may be laid down in the Ordinances: Provided that nothing in this clause shall apply to colleges and institutions maintained by Government. (4) Every college or institution admitted to the privilege of the University shall be inspected at least once in every two academic years by a Committee appointed by the Academic Council, and the report of the Committee shall be submitted to the Academic Council, which shall forward the same to the Executive Council with such recommendations as it may deem fit to make. (5) The Executive Council, after considering the report and the recommendations, if any, of the Academic Council, shall forward a copy of the report to the Governing Body of the college or institution with such remarks, if any, as it may deem fit for suitable action. (6) The Executive Council may, after consulting the Academic Council, withdraw any privileges granted to a college or an institution, at any time it considers that the college or institution does not satisfy any of the conditions on the fulfilment of which the college or institution was admitted to such privileges: Provided that before any privileges are so withdrawn, the Governing Body of the college or institution concerned shall be given an opportunity to represent to the Executive Council why such action should not be taken. (7) Subject to the conditions set forth in clause (1), the Ordinances may prescribe— (i) such other conditions as may be considered necessary; (ii) the procedure for the admission of colleges and institutions to the privileges of the University and for the withdrawal of those privileges. (8) the constitution of Board of affiliation and recognition and the terms of office of its members shall be prescribed by the Ordinances. **35. Convocations.—Convocations of the University for the conferring of degrees or for other** purposes shall be held in such manner as may be prescribed by the Ordinances. **36. Acting Chairman of meetings.—Where no provision is made for a President or Chairman to** preside over a meeting of any authority of the University or any Committee of such authority or when the President or Chairman so provided for is absent, the members present shall elect one from among themselves to preside at such meeting. **37. Resignation.—Any member, other than an** _ex officio member of the Court, the Executive_ Council, the Academic Council or any other authority of the University or any committee of such authority may resign by letter addressed to the Registrar and the resignation shall take effect as soon as such letter is received by the Registrar. **38. Disqualifications.—(1) A person shall be disqualified for being chosen as, and for being, a** member of any of the authorities of the University,— (i) if he is of unsound mind; 35 ----- (ii) if he is an undischarged insolvent; and (iii) if he has been convicted by a court of law of an offence involving moral turpitude and sentenced in respect thereof to imprisonment for not less than six months. (2) If any question arises as to whether a person is or had been subjected to any of the disqualifications mentioned in clause (1), the question shall be referred to the Visitor and his decision shall be final and no suit or other proceeding shall lie in any civil court against such decision. **39. Residence condition for membership and office.—Notwithstanding anything contained in the** Statutes, a person who is not ordinarily resident in India shall be eligible to be an officer of the University or a member of any authority of the University. **40. Membership of authorities by virtue of membership of other bodies.—Notwithstanding** anything contained in the Statutes, a person who holds any post in the University or is a member of any authority or body of the University in his capacity as a member of a particular authority or body or as the holder of a particular appointment shall hold such office or membership only for so long as he continues to be a member of that particular authority or body or the holder of that particular appointment, as the case may be. **41. Alumni Association.—(1) There shall be an Alumni Association for the University.** (2) The subscription for membership of the Alumni Association shall be prescribed by the Ordinances. (3) No member of the Alumni Association shall be entitled to vote or stand for election unless he has been a member of the Association for at least one year prior to the date of the election and is a degree holder of the University of at least five years standing: Provided that the condition relating to the completion of one year's membership shall not apply in the case of the first election. **42. Students' Council.—(1) There shall be constituted in the University, a Students' Council for** every academic year, consisting of— (i) the Dean of Students' Welfare, who shall be the Chairman of the Students' Council; (ii) all students who have won prizes in the previous academic year in the fields of studies, fine arts, sports and extension work; (iii) ten students to be nominated by the Academic Council on the basis of merit in studies, sports activities and all-round development of personality: Provided that any student of the University shall have the right to bring up any matter concerning the University before the Students' Council if so permitted by the Chairman, and he shall have the right to participate in the discussions at any meeting when the matter is taken up for consideration. (2) The functions of the Students' Council shall be to make suggestions to the appropriate authorities of the University in regard to the programmes of studies, students' welfare and other matters of importance in regard to the working of the University in general and such suggestions shall be made on the basis of consensus of opinion. (3) The Students' Council shall meet at least once in an academic year preferably in the beginning of that year. **43. Ordinances how to be made.—(1) The first Ordinances made under sub-section (2) of section 30** may be amended, repealed or added to at any time by the Executive Council in the manner specified below. (2) No Ordinance in respect of the matters enumerated in section 30 other than those enumerated in clause (n) of sub-section (1) thereof, shall be made by the Executive Council unless a draft of such Ordinance has been proposed by the Academic Council. 36 ----- (3) The Executive Council shall not have power to amend any draft of any Ordinance proposed by the Academic Council under clause (2), but may reject the proposal or return the draft to the Academic Council for re-consideration, either in whole or in part, together with any amendment which the Executive Council may suggest. (4) Where the Executive Council has rejected or returned the draft of an Ordinance proposed by the Academic Council, the Academic Council may consider the question afresh and in case the original draft is reaffirmed by a majority of not less than two-thirds of the members present and voting and more than half the total number of members of the Academic Council, the draft may be sent back to the Executive Council which shall either adopt it or refer it to the Visitor whose decision shall be final. (5) Every Ordinance made by the Executive Council shall come into effect immediately. (6) Every Ordinance made by the Executive Council shall be submitted to the Visitor within two weeks from the date of its adoption. The Visitor shall have the power to direct the University within four weeks of the receipt of the Ordinance to suspend the operation of any such Ordinance and he shall, as soon as possible, inform the Executive Council about his objection to the proposed Ordinance. The Visitor may, after receiving the comments of the University, either withdraw the order suspending the Ordinance or disallow the Ordinance, and his decision shall be final. **44. Regulations.—(1) The authorities of the University may make Regulations consistent with the** Act, the Statutes and the Ordinances for the following matters, namely:— (i) laying down the procedure to be observed at their meetings and the number of members required to form a quorum; (ii) providing for all matters which are required by the Act, the Statutes or the Ordinances to be prescribed by Regulations; and (iii) providing for all other matters solely concerning such authorities or committees appointed by them and not provided for by the Act, the Statutes or the Ordinances. (2) Every authority of the University shall make Regulations providing for the giving of notice to the members of such authority of the dates of meeting and of the business to be considered at meetings and for the keeping of a record of the proceedings of meetings. (3) The Executive Council may direct the amendment in such manner as it may specify, of any Regulation made under the Statutes or the annulment of any such Regulation. **45. Delegation of powers.—Subject to the provisions of the Act and the Statutes, any officer or** authority of the University may delegate his or its powers to any other officer or authority or person under his or its respective control and subject to the condition that overall responsibility for the exercise of the powers so delegated shall continue to vest in the officer or authority delegating such powers. **46. Equivalence Committee.—(1) Keeping in view the outstanding nature of qualification in** maritime discipline, Ministry of Shipping, Road Transport and Highways, Government of India constituted an “Equivalence Committee” with a view to consider relativity of the existing teaching posts in four Government Maritime Institutes (Marine Engineering and Research Institute, Kolkata and Mumbai, Lal Bahadur Shastri College of Advanced Maritime Studies and Research, Mumbai, Training 37 ----- Ship Chanakya, Navi Mumbai), presently under Indian Institute of Maritime Studies with equivalent posts in the proposed University. The recommendation of the committee is given in the Table below: TABLE (1) (2) Name of the present posts and pay scale and recruitment rules as per the Gazette notification Captain Superintendent/Principal/ Director (Rs.18400-500-22400) Vice Principal/Deputy/Chief Officer/Senior Engineer Officer/Senior Nautical Officer (Rs.14300-400-18300) Engineer Officer/Nautical Officer (Rs.12000-375-16500) Senior Lecturer (Rs.12000-375-16500) Senior Lecturer (MERI) (Rs.10000-325-15000) Lecturer (Rs.8000-275-13500) Recommendation by the 'Equivalence Committee' for recognition of post in University Professor Associate Professor Assistant Professor Assistant Professor Senior Lecturer Lecturer (2) In the absence of Post-graduate and Doctoral studies in maritime discipline, the existing posts in the Institutes are deemed to be equivalent to the University posts in the appropriate scale. (3) The qualifications for future direct recruitments shall be governed by separate Ordinances to be framed by the University. **47. Review of fees.—The Fees shall be reviewed after every three years.** _________ 38 -----

5-Dec-2008

27

The Airports Economic Regulatory Authority of India Act, 2008

https://www.indiacode.nic.in/bitstream/123456789/2090/1/A2008-27.pdf

central

# THE AIRPORTS ECONOMIC REGULATORY AUTHORITY OF INDIA ACT, 2008 _________ ARRANGEMENT OF SECTIONS _________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, commencement and application. 2. Definitions. CHAPTER II THE AIRPORTS ECONOMIC REGULATORY AUTHORITY 3. Establishment of Authority. 4. Composition of Authority. 5. Constitution of Selection Committee to recommend Members. 6. Terms of office and other conditions of service, etc., of Chairperson and Members. 7. Power of Chairperson. 8. Removal and suspension of Members. 9. Appointment of Secretary, experts, professionals and officers and other employees of Authority. 10. Meetings. 11. Authentication. 12. Vacancies, etc., not to invalidate proceedings of Authority. CHAPTER III POWERS AND FUNCTIONS OF THE AUTHORITY 13. Functions of Authority. 14. Powers of Authority to call for information, conduct investigations, etc. 15. Power of Authority to issue certain directions. 16. Power of seizure. CHAPTER IV APPELLATE TRIBUNAL 17. Appellate Tribunal. 18. Application for settlement of disputes and appeals to Appellate Tribunal. 19. [Omitted.] 20. [Omitted.] 21. [Omitted.] 22. [Omitted.] 1 ----- SECTIONS 23. [Omitted.] 24. [Omitted.] 25. [Omitted.] 26. [Omitted.] 27. [Omitted.] 28. Civil court not to have jurisdiction. 29. Procedure and powers of Appellate Tribunal. 30. Right to legal representation. 31. Appeal to Supreme Court. 32. Orders passed by Appellate Tribunal to be executable as a decree. CHAPTER V FINANCE, ACCOUNTS AND AUDIT 33. Budget. 34. Grants by Central Government. 35. Annual statement of accounts. 36. Furnishing of returns, etc., to Central Government. CHAPTER VI OFFENCES AND PENALTIES 37. Penalty for wilful failure to comply with orders of Appellate Tribunal. 38. Punishment for non-compliance of orders and directions under this Act. 39. Punishment for non-compliance with order of Authority or Appellate Tribunal. 40. Offences by companies. 41. Offences by Government Departments. CHAPTER VII MISCELLANEOUS 42. Directions by Central Government. 43. Members, officers and employees of Authority to be public servants. 44. Bar of jurisdiction. 45. Protection of action taken in good faith. 46. Exemption from tax on wealth and income. 47. Cognizance of offences. 48. Delegation of powers. 49. Power of Central Government to supersede Authority. 50. Application of other laws not barred. 51. Power to make rules. 52. Power to make regulations. 2 ----- SECTIONS 53. Rules and regulations to be laid before Parliament. 54. Amendment of certain enactments. 55. Power to remove difficulties. THE SCHEDULE. 3 ----- # THE AIRPORTS ECONOMIC REGULATORY AUTHORITY OF INDIA ACT, 2008 ACT NO. 27 OF 2008 [5th December, 2008.] # An Act to provide for the establishment of an Airports Economic Regulatory Authority to regulate tariff and other charges for the aeronautical services rendered at airports and to monitor performance standards of airports [1]* * * and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-ninth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, commencement and application.—(1) This Act may be called the Airports Economic** Regulatory Authority of India Act, 2008. (2) It shall come into force on such date[2] as the Central Government may, by notification in the Official Gazette, appoint. (3) It applies to— (a) all airports whereat air transport services are operated or are intended to be operated, other than airports and airfields belonging to or subject to the control of the Armed Forces or paramilitary Forces of the Union; (b) all private airports and leased airports; (c) all civil enclaves; (d) all major airports. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) "aeronautical service" means any service provided— (i) for navigation, surveillance and supportive communication thereto for air traffic management; (ii) for the landing, housing or parking of an aircraft or any other ground facility offered in connection with aircraft operations at an airport; (iii) for ground safety services at an airport; (iv) for ground handling services relating to aircraft, passengers and cargo at an airport; (v) for the cargo facility at an airport; (vi) for supplying fuel to the aircraft at an airport; and (vii) for a stake-holder at an airport, for which the charges, in the opinion of the Central Government for the reasons to be recorded in writing, may be determined by the Authority; (b) "airport" means a landing and taking off area for aircrafts, usually with runways and aircraft maintenance and passenger facilities and includes an aerodrome as defined in clause (2) of section 2 of the Aircraft Act, 1934 (22 of 1934); (c) "airport user" means any person availing of passenger or cargo facilities at an airport; 1. The words “and also to establish Appellate Tribunal to adjudicate disputes and dispose of appeals” omitted by Act 7 of 2017, s. 170 (w.e.f. 26-5-2017). 2. 1st January, 2009 (except Chapters III and IV), vide notification No. S.O. 894(E), dated 30th December, 2008, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 4 ----- 1[(d) "Appellate Tribunal" means the Telecom Disputes Settlement and Appellate Tribunal referred to in section 17;] (e) "Authority" means the Airports Economic Regulatory Authority established under sub-section (1) of section 3; (f) "civil enclave" means an area, if any, allotted at an airport belonging to any armed force of the Union, for use by persons availing of any air transport services from such airport or for the handling of baggage or cargo by such service, and includes land comprising of any building and structure on such area; (g) "Chairperson" means the Chairperson of the Authority appointed under sub-section (2) of section 4; (h) "leased airport" means an airport in respect of which a lease has been made under section 12A of the Airports Authority of India Act, 1994 (55 of 1994); (i) "major airport" means any airport which has, or is designated to have, annual passenger throughput in excess of [2][three and a half million] or any other airport [3][or a group of airports] as the Central Government may, by notification, specify as such; (j) "Member" means a Member of the Authority and includes the Chairperson; (k) "prescribed" means prescribed by rules made under this Act; (l) "private airport" has the same meaning as assigned to it in clause (nn) of section 2 of the Airports Authority of India Act, 1994 (55 of 1994); (m) "regulations" means regulations made by the Authority under this Act; (n) "service provider" means any person who provides aeronautical services and is eligible to levy and charge user development fees from the embarking passengers at any airport and includes the authority which manages the airport; (o) "stake-holder" includes a licensee of an airport, airlines operating thereat, a person who provides aeronautical services, and any association of individuals, which in the opinion of the Authority, represents the passenger or cargo facility users; (p) words and expressions used but not defined in this Act and defined in the Airports Authority of India Act, 1994 (55 of 1994) shall have the same meanings respectively assigned to them in that Act. CHAPTER II THE AIRPORTS ECONOMIC REGULATORY AUTHORITY **3. Establishment of Authority.—(1) The Central Government shall, within three months from the** date of commencement of this Act, by notification in the Official Gazette, establish an Authority, to be known as the Airports Economic Regulatory Authority, to exercise the powers conferred on, and the functions assigned to it, by or under this Act. (2) The Authority shall be a body corporate by the name aforesaid, having perpetual succession and a common seal, with power to acquire, hold and dispose of property, both movable and immovable, and to contract and shall, by the said name, sue or be sued. (3) The head office of the Authority shall be at such place as the Central Government may, by notification in the Official Gazette, specify. **4. Composition of Authority.—(1) The Authority shall consist of a Chairperson and two other** Members to be appointed by the Central Government: 1. Subs. by Act 7 of 2017, s. 170, for clause (d) (w.e.f. 26-5-2017). 2. Subs. by Act 27 of 2019, s. 2, for “one and a half million” (w.e.f. 26-9-2019). 3. Ins. by Act 28 of 2021, s. 2 (w.e.f. 13-4-2022). 5 ----- Provided that whenever the Authority is deciding a matter involving a civil enclave in a defence airfield, there shall be an additional Member, not below the rank of Additional Secretary to the Government of India, to be nominated by the Ministry of Defence. (2) The Chairperson and Members of the Authority shall be appointed by the Central Government from amongst persons of ability and integrity having adequate knowledge of, and professional experience in, aviation, economics, law, commerce or consumer affairs: Provided that a person who is or has been in the service of Government shall not be appointed as a Member unless such person has held the post of Secretary or Additional Secretary to the Government of India or any equivalent post in the Central or State Government for a total period of not less than three years. (3) The Chairperson and other Members shall be whole-time Members. (4) The Chairperson or other Members shall not hold any other office. (5) The Chairperson shall be the Chief Executive of the Authority. (6) The Chairperson and other Members of the Authority shall be appointed by the Central Government on the recommendation of Selection Committee referred to in section 5. **5. Constitution of Selection Committee to recommend Members.—(1) The Central Government** shall, for the purpose of sub-section (6) of section 4 constitute a Selection Committee consisting of the following, namely:— (a) Cabinet Secretary **—Chairman;** (b) Secretary, in the Ministry of Civil Aviation **—Member;** (c) Secretary, Department of Legal Affairs in the Ministry of Law and Justice **—Member;** (d) Secretary, in the Ministry of Defence **—Member;** (e) One expert to be nominated by the Ministry of Civil Aviation **—Member.** (2) The Central Government shall within one month from the date of occurrence of any vacancy by reason of death, resignation or removal of the Chairperson or a Member and six months before the superannuation or end of tenure of the Chairperson or any Member, make a reference to the Selection Committee for filling up of the vacancy. (3) The Selection Committee shall finalise the selection of the Chairperson and Members within one month from the date on which the reference is made to it. (4) The Selection Committee shall recommend a panel of two names for every vacancy referred to it. (5) Before recommending any person for appointment as a Chairperson or other Member of the Authority, the Selection Committee shall satisfy itself that such person does not have any financial or other interest which is likely to affect prejudicially his functions as a Member. (6) No appointment of the Chairperson or other Member shall be invalid merely by reason of any vacancy in the Selection Committee. **6. Terms of office and other conditions of service, etc., of Chairperson and Members.—(1) The** Chairperson and other Members, shall hold office, as such, for a term of five years from the date on which he enters upon his office, but shall not be eligible for re-appointment: Provided that no Chairperson or other Member shall hold office, as such, after he attains — (a) in the case of the Chairperson, the age of sixty-five years; and (b) in the case of any other Member, the age of sixty-two years. 6 ----- _Explanation.—For the purposes of this sub-section, a Member may be appointed as Chairperson of_ the Authority, but a person who has been the Chairperson shall not be eligible for appointment as a Member. (2) The salary and allowances payable to, and the other terms and conditions of service of, the Chairperson and other Members shall be such as may be prescribed. (3) The salary, allowances and other conditions of service of the Chairperson and other Members shall not be varied to their disadvantage after their appointment. (4) Notwithstanding anything contained in sub-section (1), the Chairperson or any Member may,— (a) relinquish his office by giving, in writing to the Central Government, a notice of not less than three months; or (b) be removed from his office in accordance with the provisions of section 8. (5) The Chairperson or any Member ceasing to hold office, as such, shall— (a) be ineligible for further employment under the Central Government or any State Government for a period of two years from the date he ceases to hold such office; (b) not accept any commercial employment including private for a period of two years from the date he ceases to hold such office; or (c) not represent any person before the Authority in any other manner. _Explanation.—For the purposes of this sub-section,—_ (a) "employment under the Central Government or State Government" includes employment under any local or other authority within the territory of India or under the control of the Central Government or State Government or under any corporation or society owned or controlled by the Government; (b) "commercial employment" means employment in any capacity under, or agency of, a person engaged in trading, commercial, industrial or financial business in any field and includes also a director of a company or partner of a firm and it also includes setting up practice either independently or as partner of a firm or as an adviser or a consultant. **7. Power of Chairperson.—The Chairperson shall have powers of general superintendence and** directions in the conduct of the affairs of the Authority and he shall, in addition to presiding over the meetings of the Authority, exercise and discharge such powers and functions of the Authority and shall discharge such other powers and functions as may be prescribed. **8. Removal and suspension of Members.—(1) The Central Government may, by order, remove** from office the Chairperson or other Member, if the Chairperson or such other Member, as the case may be,— (a) has been adjudged an insolvent; or (b) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or (c) has become physically or mentally incapable of acting as a Member; or (d) has acquired such financial or other interest, as is likely to affect prejudicially his functions as a Member; or (e) has so abused his position, as to render his continuance in office prejudicial to the public interest; or (f) has engaged at any time during his term of office in any other employment. (2) The Chairperson or any other Member shall not be removed from his office except by an order of the Central Government on the ground of his proved misbehavior or incapacity after the Central 7 ----- Government, has, on an inquiry, held in accordance with the procedure prescribed in this behalf by the Central Government, come to the conclusion that the Member ought on any such ground to be removed. (3) The Central Government may suspend any Member in respect of whom an inquiry under sub-section (2) is being initiated or pending until the Central Government has passed an order on receipt of the report of the inquiry. **9. Appointment of Secretary, experts, professionals and officers and other employees of** **Authority.—(1) The Central Government may appoint a Secretary to discharge his functions under this** Act. (2) The Authority may appoint such officers and other employees as it considers necessary for the efficient discharge of its functions under this Act. (3) The salaries and allowances payable to and other terms and conditions of service of the Secretary and officers and other employees of the Authority and the number of such officers and other employees shall be such as may be prescribed. (4) The Authority may engage, in accordance with the procedure specified by regulations such number of experts and professionals of integrity and outstanding ability, who have special knowledge of, and experience in, economics, law, business or such other disciplines related to aviation as it deems necessary to assist the Authority in the discharge of its functions under this Act. **10. Meetings.—(1) The Authority shall meet at such places and times and shall observe such rules of** procedure in regard to the transaction of business at its meetings (including the quorum at its meetings), as may be determined by regulations. (2) The Chairperson shall preside at the meeting of the Authority and if for any reason the Chairperson is unable to attend a meeting of the Authority, any other Member chosen by the members present from amongst themselves at the meeting shall preside at the meeting. (3) All questions which come up before any meeting of the Authority shall be decided by a majority of votes of the Members present and voting and, in the event of an equality of votes, the Chairperson or the Member presiding shall have the right to exercise a second or casting vote. (4) Save as otherwise provided in sub-section (1), every Member shall have one vote. **11. Authentication.—All orders and decisions of the Authority shall be authenticated by signatures** of the Secretary or any other officer of the Authority, duly authorised by the Authority in this behalf. **12. Vacancies, etc., not to invalidate proceedings of Authority.—No act or proceedings of the** Authority shall be invalid merely by reason of — (a) any vacancy in, or any defect in, the constitution of the Authority; or (b) any defect in the appointment of a person acting as a Member of the Authority; or (c) any irregularity in the procedure of the Authority not affecting the merits of the case. CHAPTER III POWERS AND FUNCTIONS OF THE AUTHORITY **13. Functions of Authority.—(1) The Authority shall perform the following functions in respect of** major airports, namely:— (a) to determine the tariff for the aeronautical services taking into consideration— (i) the capital expenditure incurred and timely investment in improvement of airport facilities; (ii) the service provided, its quality and other relevant factors; (iii) the cost for improving efficiency; (iv) economic and viable operation of major airports; (v) revenue received from services other than the aeronautical services; 8 ----- (vi) the concession offered by the Central Government in any agreement or memorandum of understanding or otherwise; (vii) any other factor which may be relevant for the purposes of this Act: Provided that different tariff structures may be determined for different airports having regard to all or any of the above considerations specified at sub-clauses (i) to (vii); (b) to determine the amount of the development fees in respect of major airports; (c) to determine the amount of the passengers service fee levied under rule 88 of the Aircraft Rules, 1937 made under the Aircraft Act, 1934 (22 of 1934); (d) to monitor the set performance standards relating to quality, continuity and reliability of service as may be specified by the Central Government or any authority authorised by it in this behalf; (e) to call for such information as may be necessary to determine the tariff under clause (a); (f) to perform such other functions relating to tariff, as may be entrusted to it by the Central Government or as may be necessary to carry out the provisions of this Act. 1[(1A) Notwithstanding anything contained in sub-sections (1) and (2), the Authority shall not determine the tariff or tariff structures or the amount of development fees in respect of an airport or part thereof, if such tariff or tariff structures or the amount of development fees has been incorporated in the bidding document, which is the basis for award of operatorship of that airport: Provided that the Authority shall be consulted in advance regarding the tariff, tariff structures or the amount of development fees which is proposed to be incorporated in the said bidding document and such tariff, tariff structures or the amount of development fees shall be notified in the Official Gazette.] (2) The Authority shall determine the tariff once in five years and may if so considered appropriate and in public interest, amend, from time to time during the said period of five years, the tariff so determined. (3) While discharging its functions under sub-section (1) the Authority shall not act against the interest of the sovereignty and integrity of India, the security of the State, friendly relations with foreign States, public order, decency or morality. (4) The Authority shall ensure transparency while exercising its powers and discharging its functions, _inter alia,—_ (a) by holding due consultations with all stake-holders with the airport; (b) by allowing all stake-holders to make their submissions to the authority; and (c) by making all decisions of the authority fully documented and explained. **14. Powers of Authority to call for information, conduct investigations, etc.—(1) Where the** Authority considers it expedient so to do, it may by order in writing— (a) call upon any service provider at any time to furnish in writing such information or explanation relating to its functions as the Authority may require to access the performance of the service provider; or (b) appoint one or more persons to make an inquiry in relation to the affairs of any service provider; and (c) direct any of its officers or employees to inspect the books of account or other documents of any service provider. 1. Ins. by Act 27 of 2019, s. 3 (w.e.f. 26-9-2019). 9 ----- (2) Where any inquiry in relation to the affairs of a service provider has been undertaken under sub-section (1)— (a) every office of the Government department, if such service provider is a department of the Government; or (b) every director, manager, secretary or other officer, if such service provider is a company; or (c) every partner, manager, secretary or other officer, if such service provider is a firm; or (d) every other person or body of persons who has had dealings in the course of business with any of the persons mentioned in clauses (b) or (c), shall be bound to produce before the Authority making the inquiry, all such books of account or other documents in his custody or power relating to, or having a bearing on the subject-matter of such inquiry and also to furnish to the Authority with any such statement or information relating thereto, as the case may be, required of him, within such time as may be specified. (3) Every service provider shall maintain such books of account or other documents as may be prescribed. (4) The Authority shall have the power to issue such directions to monitor the performance of the service providers as it may consider necessary for proper functioning by service providers. **15. Power of Authority to issue certain directions.—The Authority may, for the purpose of** discharge of its functions under this Act, issue, from time to time to the service providers, such directions, as it may consider necessary. **16. Power of seizure.—The Authority or any other officer specially authorised by it in this behalf** may enter any building or place where the Authority has reason to believe that any document relating to the subject matter of the inquiry may be found, and may seize any such document or take extracts or copies therefrom subject to the provisions of section 100 of the Code of Criminal Procedure, 1973 (2 of 1974) in so far as they may be applicable. CHAPTER IV APPELLATE TRIBUNAL **17. [1][Appellate Tribunal].— [2][The Telecom Disputes Settlement and Appellate Tribunal established** under section 14 of the Telecom Regulatory Authority of India Act, 1997 (24 of 1997) shall, on and from the commencement of Part XIV of Chapter VI of the Finance Act, 2017 (7 of 2017), be the Appellate Tribunal for the purposes of this Act and the said Appellate Tribunal shall exercise the jurisdiction, powers and authority conferred on it by or under this Act] to— (a) adjudicate any dispute— (i) between two or more service providers; (ii) between a service provider and a group of consumer: Provided that the Appellate Tribunal may, if considers appropriate, obtain the opinion of the Authority on any matter relating to such dispute: Provided further that nothing in this clause shall apply in respect of matters— (i) relating to the monopolistic trade practice, restrictive trade practice and unfair trade practice which are subject to the jurisdiction of the Monopolies and Restrictive Trade Practices Commission established under sub-section (1) of section 5 of the Monopolies and Restrictive Trade Practices Act, 1969 (54 of 1969); (ii) relating to the complaint of an individual consumer maintainable before a Consumer Disputes Redressal Forum or a Consumer Disputes Redressal Commission or the National 1. Subs. by Act 7 of 2017, s. 170, for “Establishment of Appellate Tribunal” (w.e.f. 26-5-2017). 2. Subs. by s. 170, ibid., for certain words (w.e.f. 26-5-2017). 10 ----- Consumer Redressal Commission established under section 9 of the Consumer Protection Act, 1986 (68 of 1986); (iii) which are within the purview of the Competition Act, 2002 (12 of 2003); (iv) relating to an order of eviction which is appealable under section 28K of the Airports Authority of India Act, 1994 (55 of 1994). (b) hear and dispose of appeal against any direction, decision or order of the Authority under this Act. **18. Application for settlement of disputes and appeals to Appellate Tribunal.—(1) The Central** Government or a State Government or a local authority or any person may make an application to the Appellate Tribunal for adjudication of any dispute as referred to in clause (a) of section 17. (2) The Central Government or a State Government or a local authority or any person aggrieved by any direction, decision or order made by the Authority may prefer an appeal to the Appellate Tribunal. (3) Every appeal under sub-section (2) shall be preferred within a period of thirty days from the date on which a copy of the direction or order or decision made by the Authority is received by the Central Government or the State Government or the local authority or the aggrieved person and it shall be in such form, verified in such manner and be accompanied by such fee as may be prescribed: Provided that the Appellate Tribunal may entertain any appeal after the expiry of the said period of thirty days if it is satisfied that there was sufficient cause for not filing it within that period. (4) On receipt of an application under sub-section (1) or an appeal under sub-section (2), the Appellate Tribunal may, after giving the parties to the dispute or the appeal an opportunity of being heard, pass such orders thereon as it thinks fit. (5) The Appellate Tribunal shall send a copy of every order made by it to the parties to the dispute or the appeal and to the Authority, as the case may be. (6) The application made under sub-section (1) or the appeal preferred under sub-section (2) shall be dealt with by it as expeditiously as possible and endeavour shall be made by it to dispose of the application or appeal finally within ninety days from the date of receipt of application or appeal, as the case may be: Provided that where any such application or appeal could not be disposed of within the said period of ninety days, the Appellate Tribunal shall record its reasons in writing for not disposing of the application or appeal within that period. (7) The Appellate Tribunal may, for the purpose of examining the legality or propriety or correctness, of any dispute made in any application under sub-section (1), or of any direction or order or decision of the Authority referred to in the appeal preferred under sub-section (2), on its own motion or otherwise, call for the records relevant to disposing of such application or appeal and make such orders as it thinks fit. **19. [Composition of Appellate Tribunal.]** _Omitted by_ _the Finance Act, 2017 (7_ _of 2017),_ _s. 170_ (w.e.f. 26-5-2017). **20. [Qualifications for appointment of Chairperson and Members.]** _Omitted by s._ 170, ibid. (w.e.f. 26-5-2017). **21. [Term of office.] Omitted by s. 170, ibid. (w.e.f. 26-5-2017).** **22. [Terms and conditions of service.] Omitted by s. 170, ibid. (w.e.f. 26-5-2017).** **23. [Vacancies.] Omitted by s. 170, ibid. (w.e.f. 26-5-2017).** **24. [Removal and resignation.] Omitted by s. 170, ibid. (w.e.f. 26-5-2017).** **25. [Staff of Appellate Tribunal.] Omitted by s. 170, ibid. (w.e.f. 26-5-2017).** **26. [Decision to be by majority.] Omitted by s. 170, ibid. (w.e.f. 26-5-2017).** **27. [Members, etc., to be public servants.] Omitted by s. 170, ibid. (w.e.f. 26-5-2017).** 11 ----- **28. Civil court not to have jurisdiction.—No civil court shall have jurisdiction to entertain any suit** or proceeding in respect of any matter which the Appellate Tribunal is empowered by or under this Act to determine and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act. **29. Procedure and powers of Appellate Tribunal.—(1) The Appellate Tribunal shall not be bound** by the procedure laid down by the Code of Civil Procedure, 1908 (5 of 1908), but shall be guided by the principles of natural justice and, subject to the other provisions of this Act, the Appellate Tribunal shall have powers to regulate its own procedure. (2) The Appellate Tribunal shall have, for the purposes of discharging its functions under this Act, the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit, in respect of the following matters, namely:— (a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of documents; (c) receiving evidence on affidavits; (d) subject to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872 (1 of 1872), requisitioning any public record or document or a copy of such record or document, from any office; (e) issuing commissions for the examination of witnesses or documents; (f) reviewing its decisions; (g) dismissing an application for default or deciding it, ex parte; (h) setting aside any order of dismissal of any application for default or any order passed by it, _ex parte; and_ (i) any other matter which may be prescribed. (3) Every proceeding before the Appellate Tribunal shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purposes of section 196 of the Indian Penal Code (45 of 1860) and the Appellate Tribunal shall be deemed to be a civil court for the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). **30. Right to legal representation.—The applicant or appellant may either appear in person or** authorises one or more chartered accountants or company secretaries or cost accountants or legal practitioners or any of its officers to present his or its case before the Appellate Tribunal. _Explanation.—For the purposes of this section,—_ (a) "chartered accountant" means a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949 (38 of 1949) and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act; (b) "company secretary" means a company secretary as defined in clause (c) of sub-section (1) of section 2 of the Company Secretaries Act, 1980 (56 of 1980) and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act; (c) "cost accountant" means a cost accountant as defined in clause (b) of sub-section (1) of section 2 of the Cost and Works Accountants Act, 1959 (23 of 1959), and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act; (d) "legal practitioner" means an advocate, vakil or an attorney of any High Court, and includes a pleader in practice. **31. Appeal to Supreme Court.—(1) Notwithstanding anything contained in the Code of Civil** Procedure, 1908 (5 of 1908) or in any other law, an appeal shall lie against any order, not being an interlocutory order, of the Appellate Tribunal to the Supreme Court on one or more of the grounds specified in section 100 of that Code. 12 ----- (2) No appeal shall lie against any decision or order made by the Appellate Tribunal with the consent of the parties. (3) Every appeal under this section shall be preferred within a period of ninety days from the date of the decision or order appealed against: Provided that the Supreme Court may entertain the appeal after the expiry of the said period of ninety days, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal in time. **32. Orders passed by Appellate Tribunal to be executable as a decree.—(1) An order passed by** the Appellate Tribunal under this Act shall be executable by the Appellate Tribunal as a decree of civil court, and for this purpose, the Appellate Tribunal shall have all the powers of a civil court. (2) Notwithstanding anything contained in sub-section (1), the Appellate Tribunal may transmit any order made by it to a civil court having local jurisdiction and such civil court shall execute the order as if it were a decree made by that court. CHAPTER V FINANCE, ACCOUNTS AND AUDIT **33. Budget.—The Authority shall prepare, in such form and at such time in each financial year as** may be prescribed, its budget for the next financial year, showing the estimated receipts and expenditure of the Authority and forward the same to the Central Government, for information. **34. Grants by Central Government.—The Central Government may, after due appropriation made** by Parliament by law in this behalf, make to the Authority grants of such sums of money as are required to be paid for the salaries and allowances payable to the Chairperson and other Members and the administrative expenses, including the salaries and allowances and pension payable to or in respect of officers and other employees of the Authority. **35. Annual statement of accounts.— (1) The Authority shall maintain proper accounts and other** relevant records and prepare an annual statement of accounts in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India. (2) The accounts of the Authority shall be audited by the Comptroller and Auditor- General of India at such intervals as may be specified by him. (3) The Comptroller and Auditor-General of India or any person appointed by him in connection with the audit of the accounts of the Authority under this Act shall have the same rights, privileges and authority in connection with such audit, as the Comptroller and Auditor-General of India generally has, in connection with the audit of the Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Authority. (4) The accounts of the Authority, as certified by Comptroller and Auditor-General of India or any other person appointed by him in this behalf, together with the audit report thereon, shall be forwarded annually to the Central Government and the Central Government shall cause the same to be laid before each House of Parliament. **36. Furnishing of returns, etc., to Central Government.—(1) The Authority shall furnish to the** Central Government, at such time and in such form and manner as may be prescribed or as the Central Government may direct, such returns and statements and such particulars in regard to any matter under the jurisdiction of the Authority, as the Central Government may, from time to time, require. (2) The Authority shall prepare, once every year, in such form and at such time as may be prescribed, an annual report, giving a summary of its activities during the previous year and copies of the report shall be forwarded to the Central Government. (3) A copy of the report received under sub-section (2) shall be laid by the Central Government, as soon as may be after it is received, before each House of Parliament. 13 ----- CHAPTER VI OFFENCES AND PENALTIES **37. Penalty for wilful failure to comply with orders of Appellate Tribunal.—If any person** wilfully fails to comply with the order of the Appellate Tribunal, he shall be punishable with fine which may extend to one lakh rupees and in case of a second or subsequent offence with fine which may extend to two lakh rupees and in the case of continuing contravention with additional fine which may extend to two lakh rupees for every day during which such default continues. **38. Punishment for non-compliance of orders and directions under this Act.—Whoever fails to** comply with any order or direction given under this Act, or contravenes, or attempts to contravene or abets the contravention of the provisions of this Act or of any rules or regulations made thereunder shall be punishable with fine which may extend to one lakh rupees and in the case of a second or subsequent offence with fine which may extend to two lakh rupees and in the case of a continuing contravention with an additional fine which may extend to four thousand rupees for every day during which the default continues. **39. Punishment for non-compliance with order of Authority or Appellate Tribunal.—If any** person wilfully fails to comply with an order of the Authority or of the Appellate Tribunal, passed under Chapter IV, he shall be punishable with fine which may extend to one lakh rupees and, in the case of a second or subsequent offence, with fine which may extend to two lakh rupees and in the case of a continuing failure, with an additional fine which may extend to four thousand rupees for every day during which such failure continues. **40. Offences by companies.—(1) Where an offence under this Act has been committed by a** company, every person who, at the time the offence was committed, was in charge of, and was responsible to the company for the conduct of, the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company, and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section—_ (a) "company" means any body corporate and includes a firm or other association of individuals; and (b) "director" means a whole-time director in the company and in relation to a firm, means a partner in the firm. **41. Offences by Government Departments.—(1) Where an offence under this Act has been** committed by any Department of Government or any of its undertakings, the Head of the Department or its undertakings shall be deemed to be guilty of an offence and shall be liable to be proceeded against and punished accordingly unless he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by any Department of Government or its undertakings and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of any officer, other than the Head of the Department, or its undertakings, such officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. 14 ----- CHAPTER VII MISCELLANEOUS **42. Directions by Central Government.—(1) The Central Government may, from time to time,** issue to the Authority such directions as it may think necessary in the interest of the sovereignty and integrity of India, the security of the State, friendly relations with foreign States, public order, decency or morality. (2) Without prejudice to the foregoing provisions, the Authority shall, in exercise of its powers or the performance of its functions, be bound by such directions on questions of policy as the Central Government may give in writing to it from time to time: Provided that the Authority shall, as far as practicable, be given an opportunity to express its views before any direction is given under this sub-section. (3) The decision of the Central Government whether a question is one of policy or not shall be final. **43. Members, officers and employees of Authority to be public servants.—The Chairperson,** Members, officers and other employees of the Authority shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this Act, to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **44. Bar of jurisdiction.—No civil court shall have jurisdiction in respect of any matter which the** Authority is empowered by or under this Act to determine. **45. Protection of action taken in good faith.—No suit, prosecution or other legal proceedings shall** lie against the Central Government or the Authority or any Member, officer or other employees thereof for anything which is in good faith done or intended to be done under this Act or the rules and regulations made thereunder. **46. Exemption from tax on wealth and income.—Notwithstanding anything contained in the** Wealth-tax Act, 1957 (27 of 1957), the Income-tax Act, 1961 (43 of 1961), or any other enactment for the time being in force relating to tax on wealth, income, profits or gains, the Authority shall not be liable to pay wealth-tax, income-tax or any other tax in respect of their wealth, income, profits or gains derived. **47. Cognizance of offences.—No court shall take cognizance of an offence punishable under this** Act, except upon a complaint in writing made by the Authority or by any officer of the Authority duly authorised by the Authority for this purpose. **48. Delegation of powers.—The Authority may, by general or special order in writing, delegate to** the Chairperson or any Member or officer of the Authority, subject to such conditions and limitations, if any, as may be specified in the order, such of its powers and functions under this Act (except the power to settle disputes and the power to make regulations), as it may deem necessary. **49. Power of Central Government to supersede Authority.—(1) If, at any time, the Central** Government is of opinion— (a) that on account of a grave emergency, the Authority is unable to discharge the functions and duties imposed on it by or under the provisions of this Act; or (b) that the Authority has persistently made default in complying with any direction issued by the Central Government under this Act or in the discharge of the functions and duties imposed on it by or under the provisions of this Act and as a result of which default, the financial position of the Authority or the administration of any airport, heliport, airstrip, civil enclave or aeronautical communication station has deteriorated; or (c) that circumstances exist which render it necessary in the public interest so to do, the Central Government may, by notification in the Official Gazette, supersede the Authority for such period, not exceeding six months, as may be specified in the notification: 15 ----- Provided that before issuing a notification under this sub-section for the reasons mentioned in clause (b), the Central Government shall give a reasonable opportunity to the Authority to show cause as to why it should not be superseded and shall consider the explanations and objections, if any, of the Authority. (2) Upon the publication of a notification under sub-section (1) superseding the Authority,— (a) all the Members shall, as from the date of supersession, vacate their offices as such; (b) all the powers, functions and duties which may, by or under the provisions of this Act, be exercised or discharged by or on behalf of the Authority, shall until the Authority is re-constituted under sub-section (3), be exercised and discharged by such person or persons as the Central Government may direct; (c) all property owned or controlled by the Authority shall, until the Authority is re-constituted under sub-section (3), vest in the Central Government. (3) On the expiration of the period of supersession specified in the notification issued under sub section (1), the Central Government may,— (a) extend the period of supersession for such further term not exceeding six months, as it may consider necessary; or (b) re-constitute the Authority by fresh appointment and in such case the Members who vacated their offices under clause (a) of sub-section (2) shall not be deemed disqualified for appointment: Provided that the Central Government may, at any time before the expiration of the period of supersession, whether as originally specified under sub-section (1) or as extended under this sub-section, take action under clause (b) of this sub-section. (4) The Central Government shall cause a notification issued under sub-section (1) and a full report of any action taken under this section and the circumstances leading to such action to be laid before both Houses of Parliament at the earliest opportunity. **50. Application of other laws not barred.—The provisions of this Act shall be in addition to, and** not in derogation of, the provisions of any other law for the time being in force. **51. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules for carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the salary and allowances payable to, and the other conditions of service of, the Chairperson and other Members under sub-section (2) of section 6; (b) the form and manner in which and the Authority before whom the oath of office and secrecy shall be made and subscribed under sub-section (4) of section 6; (c) the powers and functions to be exercised or discharged by the Chairperson under section 7; (d) the procedure for conducting any inquiry made under sub-section (2) of section 8; (e) the salaries and allowances payable to, and the other terms and conditions of service of the Secretary, officers and other employees of the Authority under sub-section (3) of section 9; (f) the performance standards relating to the quality, continuity and reliability of service to be monitored under clause (d) of sub-section (1) of section 13; (g) the books of account or other documents which are required to be maintained by the service provider under sub-section (3) of section 14; (h) the form and manner in which the form shall be verified and fee to be accompanied by the form under sub-section (3) of section 18; 16 ----- 1* - - - (l) the form in which the Authority shall prepare, and at such time in each financial year, its budget and the time at which such budget shall be prepared under section 33; (m) the form in which proper accounts and other relevant records shall be maintained and the annual statement of accounts shall be prepared by the Authority under sub-section (1) of section 35; (n) the form, manner and the time in which the returns and statements shall be furnished by the Authority under sub-section (1) of section 36; (o) the form and time at which the annual report shall be prepared by the Authority under sub-section (2) of section 36; (p) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be made by rules. **52. Power to make regulations.— (1) The Authority may, by notification in the Official Gazette,** and with the previous approval of the Central Government, make regulations, not inconsistent with this Act, and the rules made thereunder, to carry out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:— (a) the procedure in accordance with which the experts and professionals may be engaged under sub-section (4) of section 9; (b) the places and time of meetings of the Authority and the procedure to be followed at such meetings, (including the quorum at its meetings) under sub-section (1) of section 10; (c) any other matter which is required to be, or may be, specified by regulations. **53. Rules and regulations to be laid before Parliament.—Every rule made by the Central** Government, and every regulation made by the Authority, under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days, which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. **54. Amendment of certain enactments.—The enactments specified in the Schedule to this Act shall** be amended in the manner specified therein and such amendments shall take effect on the date of establishment of the Authority. **55. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as may appear to it to be necessary for removing the difficulty: Provided that no order shall be made under this section after the expiry of two years from the date of commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. 1. Clauses (i), (j) and (k) omitted by Act 7 of 2017, s. 170 (w.e.f. 26-5-2017). 17 ----- THE SCHEDULE [See section 54] AMENDMENT TO THE AIRCRAFT ACT, 1934 (22 OF 1934) Section 5, sub-section (2), clause (ab), for "or revision on tariff of operators of air transport services", substitute "or revision on tariff of operators of air transport services [other than the tariff referred to in clause (a) of sub-section (1) of section 13 of the Airports Economic Regulatory Authority of India Act, 2008]". _______ AMENDMENT TO THE AIRPORTS AUTHORITY OF INDIA ACT, 1994 (55 OF 1994) 1. Section 22A, for the portion beginning with the words "The Authority may" and ending with the words "for the purposes of — ", substitute the following:— "The Authority may,— (i) after the previous approval of the Central Government in this behalf, levy on, and collect from, the embarking passengers at an airport other than the major airports referred to in clause (h) of section 2 of the Airports Economic Regulatory Authority of India Act, 2008 the development fees at the rate as may be prescribed; (ii) levy on, and collect from, the embarking passengers at major airport referred to in clause (h) of section 2 of the Airports Economic Regulatory Authority of India Act, 2008 the development fees at the rate as may be determined under clause (b) of sub-section (1) of section 13 of the Airports Economic Regulatory Authority of India Act, 2008, and such fees shall be credited to the Authority and shall be regulated and utilised in the prescribed manner, for the purposes of—" 2. Section 41, in sub-section (2), clause (ee), for "the rate of development fees and", substitute— "the rate of development fees in respect of airports other than major airports and”. ______ 18 -----

30-Dec-2008

33

The Unorganised Workers Social Security Act, 2008

https://www.indiacode.nic.in/bitstream/123456789/2100/1/A2008-33.pdf

central

# THE UNORGANISED WORKERS’ SOCIAL SECURITY ACT, 2008 __________ ARRANGEMENT OF SECTIONS ________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II SOCIAL SECURITY BENEFITS 3. Framing of scheme. 4. Funding of Central Government Schemes. CHAPTER III NATIONAL SOCIAL SECURITY BOARD FOR UNORGANISED WORKERS 5. National Social Security Board CHAPTER IV STATE SOCIAL SECURITY BOARD FOR UNORGANISED WORKERS 6. State Social Security Board. 7. Funding of State Government Schemes. 8. Record keeping by District Administration. 9. Workers facilitation centres. CHAPTER V REGISTRATION 10. Eligibility for registration and social security benefits. CHAPTER VI MISCELLANEOUS 11. Power of Central Government to give directions. 12. Vacancies, etc., not to invalidate proceedings. 13. Power to make rules by Central Government. 14. Power to make rules by State Government. 15. Laying of rules. 16. Saving of certain laws. 17. Power to remove difficulties. # SCHEDULE I. SCHEDULE II. 1 ----- # THE UNORGANISED WORKERS’ SOCIAL SECURITY ACT, 2008 ACT NO. 33 OF 2008 [30th December, 2008.] # An Act to provide for the social security and welfare of unorganised workers and for other matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-ninth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Unorganised Workers’** Social Security Act, 2008. (2) It extends to the whole of India. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “employer” means a person or an association of persons, who has engaged or employed an unorganised worker either directly or otherwise for remuneration; (b) “home-based worker” means a person engaged in the production of goods or services for an employer in his or her home or other premises of his or her choice other than the workplace of the employer, for remuneration, irrespective of whether or not the employer provides the equipment, materials or other inputs; (c) “identity card” means a card, document or certificate issued to an unorganised worker by the District Administration under sub-section (3) of section 10; (d) “National Board” means the National Social Security Board for unorganised workers constituted under sub-section (1) of section 5; (e) “notification” means a notification published in the Official Gazette; (f) “organised sector'' means an enterprise which is not an unorganised sector; (g) “prescribed” means prescribed by rules made under this Act by the Central Government or the State Government, as the case may be; (h) “registered worker” means an unorganised worker registered under sub-section (3) of section 10; (i) “Schedule” means the Schedule annexed to the Act; (j) “State Board” means the (name of the State) State Social Security Board for unorganised workers constituted under sub-section (1) of section 6; (k) “self-employed worker” means any person who is not employed by an employer, but engages himself or herself in any occupation in the unorganised sector subject to a monthly earning of an amount as may be notified by the Central Government or the State Government from time to time or holds cultivable land subject to such ceiling as may be notified by the State Government; (l) “unorganised sector” means an enterprise owned by individuals or self-employed workers and engaged in the production or sale of goods or providing service of any kind whatsoever, and where the enterprise employs workers, the number of such workers is less than ten; 1. 16th May, 2009, vide notification No. S.O. 1220(E), dated 14th May, 2009, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 2 ----- (m) “unorganised worker” means a home-based worker, self-employed worker or a wage worker in the unorganised sector and includes a worker in the organised sector who is not covered by any of the Acts mentioned in Schedule II to this Act; and (n) “wage worker” means a person employed for remuneration in the unorganised sector, directly by an employer or through any contractor, irrespective of place of work, whether exclusively for one employer or for one or more employers, whether in cash or in kind, whether as a home-based worker, or as a temporary or casual worker, or as a migrant worker, or workers employed by households including domestic workers, with a monthly wage of an amount as may be notified by the Central Government and State Government, as the case may be. CHAPTER II SOCIAL SECURITY BENEFITS **3. Framing of scheme.—(1) The Central Government shall formulate and notify, from time to time,** suitable welfare schemes for unorganised workers on matters relating to— (a) life and disability cover; (b) health and maternity benefits; (c) old age protection; and (d) any other benefit as may be determined by the Central Government. (2) The schemes included in the Schedule 1 to this Act shall be deemed to be the welfare schemes under sub-section (1). (3) The Central Government may, by notification, amend the Schedules annexed to this Act. (4) The State Government may formulate and notify, from time to time, suitable welfare schemes for unorganised workers, including schemes relating to— (a) provident fund; (b) employment injury benefit; (c) housing; (d) educational schemes for children; (e) skill upgradation of workers; (f) funeral assistance; and (g) old age homes. **4. Funding of Central Government Schemes.—(1) Any scheme notified by the Central** Government may be— (i) wholly funded by the Central Government; or (ii) partly funded by the Central Government and partly funded by the State Government; or (iii) partly funded by the Central Government, partly funded by the State Government and partly funded through contributions collected from the beneficiaries of the scheme or the employers as may be prescribed in the scheme by the Central Government. (2) Every scheme notified by the Central Government shall provide for such matters that are necessary for the efficient implementation of the scheme including the matters relating to,— (i) scope of the scheme; (ii) beneficiaries of the scheme; (iii) resources of the scheme; (iv) agency or agencies that will implement the scheme; 3 ----- (v) redressal of grievances; and (vi) any other relevant matter. CHAPTER III NATIONAL SOCIAL SECURITY BOARD FOR UNORGANISED WORKERS **5. National Social Security Board.—(1) The Central Government shall, by notification, constitute a** National Board to be known as the National Social Security Board to exercise the powers conferred on, and to perform the functions assigned to, it under this Act. (2) The National Board shall consist of the following members, namely:— (a) Union Minister for Labour and Employment-Chairperson, ex officio; (b) the Director General (Labour Welfare)-Member-Secretary, ex officio; and (c) thirty-four members to be nominated by the Central Government, out of whom— (i) seven representing unorganised sector workers; (ii) seven representing employers of unorganised sector; (iii) seven representing eminent persons from civil society; (iv) two representing members from Lok Sabha and one from Rajya Sabha; (v) five representing Central Government Ministries and Departments concerned; and (vi) five representing State Governments. (3) The Chairperson and other members of the Board shall be from amongst persons of eminence in the fields of labour welfare, management, finance, law and administration. (4) The number of persons to be nominated as members from each of the categories specified in clause (c) of sub-section (2), the term of office and other conditions of service of members, the procedure to be followed in the discharge of their functions by, and the manner of filling vacancies among the members of, the National Board shall be such as may be prescribed: Provided that adequate representation shall be given to persons belonging to the Scheduled Castes, the Scheduled Tribes, the Minorities and Women. (5) The term of the National Board shall be three years. (6) The National Board shall meet at least thrice a year, at such time and place and shall observe such rules of procedure relating to the transaction of business at its meetings, as may be prescribed. (7) The members may receive such allowances as may be prescribed for attending the meetings of the National Board. (8) The National Board shall perform the following functions, namely:— (a) recommend to the Central Government suitable schemes for different sections of unorganised workers; (b) advise the Central Government on such matters arising out of the administration of this Act as may be referred to it; (c) monitor such social welfare schemes for unorganised workers as are administered by the Central Government; (d) review the progress of registration and issue of identity cards to the unorganised workers; (e) review the record keeping functions performed at the State level; (f) review the expenditure from the funds under various schemes; and 4 ----- (g) undertake such other functions as are assigned to it by the Central Government from time to time. CHAPTER IV STATE SOCIAL SECURITY BOARD FOR UNORGANISED WORKERS **6. State Social Security Board.—(1) Every State Government shall, by notification, constitute a** State Board to be known as (name of the State) State Social Security Board to exercise the powers conferred on, and to perform the functions assigned to it, under this Act. (2) The State Board shall consist of the following members, namely:— (a) Minister of Labour and Employment of the concerned State—Chairperson, ex officio; (b) the Principal Secretary or Secretary (Labour) —Member—Secretary, ex officio; and (c) twenty-eight members to be nominated by the State Government, out of whom— (i) seven representing the unorganised workers; (ii) seven representing employers of unorganised workers; (iii) two representing members of Legislative Assembly of the concerned State; (iv) five representing eminent persons from civil society; and (v) seven representing State Government Departments concerned. (3) The Chairperson and other members of the Board shall be from amongst persons of eminence in the fields of labour welfare, management, finance, law and administration. (4) The number of persons to be nominated as members from each of the categories specified in clause (c) of sub-section (2), the term of office and other conditions of service of members, the procedure to be followed in the discharge of their functions by, and the manner of filling vacancies among the members of, the State Board shall be such as may be prescribed: Provided that adequate representation shall be given to persons belonging to the Scheduled Castes, the Scheduled Tribes, the Minorities and Women. (5) The term of the State Board shall be three years. (6) The State Board shall meet atleast once in a quarter at such time and place and shall observe such rules of procedure relating to the transaction of business at its meetings, as may be prescribed. (7) The members may receive such allowances as may be prescribed for attending the meetings of the State Board. (8) The State Board shall perform the following functions, namely:— _(a) recommend the State Government in formulating suitable schemes for different sections of the_ unorganised sector workers; (b) advise the State Government on such matters arising out of the administration of this Act as may be referred to it; (c) monitor such social welfare schemes for unorganised workers as are administered by the State Government; (d) review the record keeping functions performed at the District level; (e) review the progress of registration and issue of cards to unorganised sector workers; (f) review the expenditure from the funds under various schemes; and (g) undertake such other functions as are assigned to it by the State Government from time to time. 5 ----- **7. Funding of State Government Schemes.—(1) Any scheme notified by the State Government may** be— (i) wholly funded by the State Government; or (ii) partly funded by the State Government, partly funded through contributions collected from the beneficiaries of the scheme or the employers as may be prescribed in the scheme by the State Government. (2) The State Government may seek financial assistance from the Central Government for the schemes formulated by it. (3) The Central Government may provide such financial assistance to the State Governments for the purpose of schemes for such period and on such terms and conditions as it may deem fit. **8. Record keeping by District Administration.—The record keeping functions for the purpose of** this Act shall be performed by the District Administration: Provided that the State Government may direct that the record keeping function shall be performed by— (a) the District Panchayat in rural areas; and (b) the Urban Local Bodies in urban areas. **9. Workers facilitation centres.—The State Government may set up such Workers' facilitation** centres as may be considered necessary from time to time to perform the following functions, namely:— (a) disseminate information on available social security schemes for the unorganised workers; (b) facilitate the filling, processing and forwarding of application forms for registration of unorganised workers; (c) assist unorganised worker to obtain registration from the District Administration; (d) facilitate the enrollment of the registered unorganised workers in social security schemes. CHAPTER V REGISTRATION **10. Eligibility for registration and social security benefits.—(1) Every unorganised worker shall be** eligible for registration subject to the fulfilment of the following conditions, namely:— (a) he or she shall have completed fourteen years of age; and (b) a self-declaration by him or her confirming that he or she is an unorganised worker. (2) Every eligible unorganised worker shall make an application in the prescribed form to the District Administration for registration. (3) Every unorganised worker shall be registered and issued an identity card by the District Administration which shall be a smart card carrying a unique identification number and shall be portable. (4) If a scheme requires a registered unorganised worker to make a contribution, he or she shall be eligible for social security benefits under the scheme only upon payment of such contribution. (5) Where a scheme requires the Central or State Government to make a contribution, the Central or State Government, as the case may be, shall make the contribution regularly in terms of the scheme. 6 ----- CHAPTER VI MISCELLANEOUS **11. Power of Central Government to give directions.—The Central Government may give** directions to— (i) the National Board; or (ii) the Government of a State or the State Board of that State, in respect of matters relating to the implementation of the provisions of this Act. **12. Vacancies, etc., not to invalidate proceedings.—No proceedings of the National Board or any** State Board shall be invalid on the ground merely of the existence of any vacancy or defect in the constitution of the National Board or, as the case may be, the State Board. **13. Power to make rules by Central Government.—(1) The Central Government may, by** notification, make rules to carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the contributions to be collected from the beneficiaries of the scheme or the employers under sub-section (1) of section 4; (b) the number of persons to be nominated, the term of office and other conditions of service of members, the procedure to be followed in the discharge of functions by, and the manner of filling vacancies of, the National Board under sub- section (4) of section 5; (c) the rules of procedure relating to the transaction of the business at the meeting of the National Board under sub-section (6) of section 5; (d) the allowances for attending the meetings of the National Board under sub-section (7) of section 5; (e) the form for making an application for registration under sub-section (2) of section 10; and (f) any other matter which is required to be, or may be, prescribed. **14. Power to make rules by State Government.—(1) The State Government may, by notification,** make rules to carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the number of persons to be nominated, the term of office and other conditions of service of members, the procedure to be followed in the discharge of functions by, and the manner of filling vacancies of, the State Board under sub-section (4) of section 6; (b) the rules of procedure relating to the transaction of business at the meetings of the State Board under sub-section (6) of section 6; (c) the allowances for attending the meetings of the State Board under sub-section (7) of section 6; (d) the contributions to be collected from the beneficiaries of the scheme or the employers under sub-section (1) of section 7; (e) the form in which the application for registration shall be made under sub-section (2) of section 10; and (f) any other matter which is required to be, or may be, prescribed. 7 ----- **15. Laying of rules.—(1) Every rule made by the Central Government under this Act shall be laid, as** soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. (2) Every rule made under this Act by State Government shall be laid, as soon as may be after it is notified, before the State Legislature. **16. Saving of certain laws.—Nothing contained in this Act shall affect the operation of any** corresponding law in a State providing welfare schemes which are more beneficial to the unorganised workers than those provided for them by or under this Act. **17. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as may appear to it to be necessary for removing the difficulty: Provided that no such order shall be made under this section after the expiry of a period of two years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. 8 ----- SCHEDULE I [See sections 2(i) and (3)] SOCIAL SECURITY SCHEMES FOR THE UNORGANISED WORKERS **S. No.** **Name of the Scheme** 1. Indira Gandhi National Old Age Pension Scheme. 2. National Family Benefit Scheme. 3. Janani Suraksha Yojana. 4. Handloom Weavers’ Comprehensive Welfare Scheme. 5. Handicraft Artisans’ Comprehensive Welfare Scheme. 6. Pension to Master craft persons. 7. National Scheme for Welfare of Fishermen and Training and Extension. 8. Janshree Bima Yojana. 9. Aam Admi Bima Yojana. 10. Rashtriya Swasthya Bima Yojana. 9 ----- SCHEDULE II [See section 2(m)] **S. No.** **Name of the Act** 1. The Workmen’s Compensation Act, 1923 (8 of 1923). 2. The Industrial Disputes Act, 1947 (14 of 1947). 3. The Employees’ State Insurance Act, 1948 (34 of 1948). 4. The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952). 5. The Maternity Benefit Act, 1961 (53 of 1961). 6. The Payment of Gratuity Act, 1972 (39 of 1972). ____ 10 -----

31-Dec-2008

34

The National Investigation Agency Act, 2008

https://www.indiacode.nic.in/bitstream/123456789/2054/3/a2008-34.pdf

central

# THE NATIONAL INVESTIGATION AGENCY ACT, 2008 ____________ # ARRANGEMENT OF SECTIONS ____________ CHAPTER I PRELIMINARY SECTIONS # 1. Short title, extent and application. 2. Definitions. CHAPTER II NATIONAL INVESTIGATION AGENCY # 3. Constitution of National Investigation Agency. 4. Superintendence of National Investigation Agency. 5. Manner of constitution of Agency and conditions of service of members. CHAPTER III INVESTIGATION BY THE NATIONAL INVESTIGATION AGENCY # 6. Investigation of Scheduled Offences. 7. Power to transfer investigation to State Government. 8. Power to investigate connected offences. 9. State Government to extend assistance to National Investigation Agency. 10. Power of State Government to investigate Scheduled Offences. CHAPTER IV SPECIAL COURTS # 11. Power of Central Government to designate Court of Session as Special Courts. 12. Place of sitting. 13. Jurisdiction of Special Courts. 14. Powers of Special Courts with respect to other offences. 15. Public Prosecutors. 16. Procedure and powers of Special Courts. 17. Protection of witnesses. 18. Sanction for prosecution. 19. Trial by Special Court to have precedence. 20. Power to transfer cases to regular courts. 21. Appeals. 22. Power of State Government to designate Court of Session as Special Courts. 1 ----- CHAPTER V MISCELLANEOUS SECTIONS # 23. Power of High Courts to make rules. 24. Power to remove difficulties. 25. Power to make rules. 26. Laying of rules. THE SCHEDULE. 2 ----- # THE NATIONAL INVESTIGATION AGENCY ACT, 2008 ACT NO. 34 OF 2008 [31st December, 2008.] # An Act to constitute an investigation agency at the national level to investigate and prosecute offences affecting the sovereignty, security and integrity of India, security of State, friendly relations with foreign States and offences under Acts enacted to implement international treaties, agreements, conventions and resolutions of the United Nations, its agencies and other international organisations and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-ninth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and application.—(1) This Act may be called the National Investigation** Agency Act, 2008. (2) It extends to the whole of India and it applies also— (a) to citizens of India outside India; (b) to persons in the service of the Government wherever they may be; [1]*** (c) to persons on ships and aircrafts registered in India wherever they may be [2][and]. 2[(d) to persons who commit a Scheduled Offence beyond India against the Indian citizens or affecting the interest of India.] **2. Definitions.—(1) In this Act, unless the context otherwise requires,—** (a) “Agency” means the National Investigation Agency constituted under section 3; (b) “Code” means the Code of Criminal Procedure 1973 (2 of 1974); (c) “High Court” means the High Court within whose jurisdiction the Special Court is situated; (d) “prescribed” means prescribed by rules; (e) “Public Prosecutor” means a Public Prosecutor or an Additional Public Prosecutor or a Special Public Prosecutor appointed under section 15; (f) “Schedule” means the Schedule to this Act; (g) “Scheduled Offence” means an offence specified in the Schedule; (h) “Special Court” means [3][a Court of Session designated as Special Court] under section 11 or, as the case may be, under section 22; (i) words and expressions used but not defined in this Act and defined in the Code shall have the meanings respectively assigned to them in the Code. (2) Any reference in this Act to any enactment or any provision thereof shall, in relation to an area in which such enactment or such provision is not in force, be construed as a reference to the corresponding law or the relevant provision of the corresponding law, if any, in force in that area. 1. The word “and” omitted by Act 16 of 2019, s. 2 (w.e.f. 2-8-2019). 2. Ins. by s. 2, ibid. (w.e.f. 2-8-2019). 3. Subs. by s. 3, ibid., for “a Special Court Constituted” (w.e.f. 2-8-2019). 3 ----- CHAPTER II NATIONAL INVESTIGATION AGENCY **3. Constitution of National Investigation Agency.—(1) Notwithstanding anything in the Police Act,** 1861 (5 of 1861), the Central Government may constitute a special agency to be called the National Investigation Agency for investigation and prosecution of offences under the Acts specified in the Schedule. (2) Subject to any orders which the Central Government may make in this behalf, officers of the Agency shall have throughout India [1][and, subject to any international treaty or domestic law of the concerned country, outside India] in relation to the investigation of Scheduled Offences and arrest of persons concerned in such offences, all the powers, duties, privileges and liabilities which police officers have in connection with the investigation of offences committed therein. (3) Any officer of the Agency of, or above, the rank of Sub-Inspector may, subject to any orders which the Central Government may make in this behalf, exercise throughout India, any of the powers of the officer-in-charge of a police station in the area in which he is present for the time being and when so exercising such powers shall, subject to any such orders as aforesaid, be deemed to be an officer-incharge of a police station discharging the functions of such an officer within the limits of his station. **4. Superintendence of National Investigation Agency.—(1) The superintendence of the Agency** shall vest in the Central Government. (2) The administration of the Agency shall vest in an officer designated as the Director-General appointed in this behalf by the Central Government who shall exercise in respect of the Agency such of the powers exercisable by a Director-General of Police in respect of the police force in a State, as the Central Government may specify in this behalf. **5.** **Manner of constitution of Agency and conditions of service of members.—Subject to the** provisions of this Act, the Agency shall be constituted in such manner as may be prescribed and the conditions of service of persons employed in the Agency shall be such as may be prescribed. CHAPTER III INVESTIGATION BY THE NATIONAL INVESTIGATION AGENCY **6. Investigation of Scheduled Offences.—(1) On receipt of information and recording thereof under** section 154 of the Code relating to any Scheduled Offence the officer-in-charge of the police station shall forward the report to the State Government forthwith. (2) On receipt of the report under sub-section (1), the State Government shall forward the report to the Central Government as expeditiously as possible. (3) On receipt of report from the State Government, the Central Government shall determine on the basis of information made available by the State Government or received from other sources, within fifteen days from the date of receipt of the report, whether the offence is a Scheduled Offence or not and also whether, having regard to the gravity of the offence and other relevant factors, it is a fit case to be investigated by the Agency. (4) Where the Central Government is of the opinion that the offence is a Scheduled Offence and it is a fit case to be investigated by the Agency, it shall direct the Agency to investigate the said offence. (5) Notwithstanding anything contained in this section, if the Central Government is of the opinion that a Scheduled Offence has been committed which is required to be investigated under this Act, it may, _suo motu, direct the Agency to investigate the said offence._ (6) Where any direction has been given under sub-section (4) or sub-section (5), the State Government and any police officer of the State Government investigating the offence shall not proceed with the investigation and shall forthwith transmit the relevant documents and records to the Agency. 1. Ins. by Act 16 of 2019, s. 4 (w.e.f. 2-8-2019). 4 ----- (7) For the removal of doubts, it is hereby declared that till the Agency takes up the investigation of the case, it shall be the duty of the officer-in-charge of the police station to continue the investigation. 1[(8) Where the Central Government is of the opinion that a Scheduled Offence has been committed at any place outside India to which this act extends, it may direct the Agency to register the case and take up investigation as if such offence has been committed in India. (9) For the purposes of sub-section (8), the Special Court at New Delhi shall have the jurisdiction.] **7. Power to transfer investigation to State Government.—While investigating any offence under** this Act, the Agency, having regard to the gravity of the offence and other relevant factors, may— (a) if it is expedient to do so, request the State Government to associate itself with the investigation; or (b) with the previous approval of the Central Government, transfer the case to the State Government for investigation and trial of the offence. **8. Power to investigate connected offences.—While investigating any Scheduled Offence, the** Agency may also investigate any other offence which the accused is alleged to have committed if the offence is connected with the Scheduled Offence. **9. State Government to extend assistance to National Investigation Agency.—The State** Government shall extend all assistance and co-operation to the Agency for investigation of the Scheduled Offences. **10. Power of State Government to investigate Scheduled Offences.—Save as otherwise provided** in this Act, nothing contained in this Act shall affect the powers of the State Government to investigate and prosecute any Scheduled Offence or other offences under any law for the time being in force. CHAPTER IV SPECIAL COURTS **11. Power of Central Government to [2][designate Court of Session as] Special Courts.—(1) [3][The** Central Government shall, in consultation with the Chief Justice of the High Court, by notification in the Official Gazette, for the trial of Scheduled Offences, designate one or more Courts of Session as Special Court] for such area or areas, or for such case or class or group of cases, as may be specified in the notification. 4[Explanation.—For the purposes of this sub-section, the expression “High Court” means the High Court of the State in which a Court of Session to be designated as Special Court is functioning.] (2) Where any question arises as to the jurisdiction of any Special Court, it shall be referred to the Central Government whose decision in the matter shall be final. 5* - - - (8) For the removal of doubts, it is hereby provided that the attainment, [6][by the Sessions Judge of the Court of Session referred to in sub-section (1)], of the age of superannuation under the rules applicable to him in the service to which he belongs shall not affect his continuance as [7][ judge of the Special Court and the appointing authority in consultation with the Central Government] may by order direct that he shall continue as judge until a specified date or until completion of the trial of the case or cases before him [8][, whichever is earlier]. 1. Ins. by Act 16 of 2019, s. 5 (w.e.f. 2-8-2019). 2. Subs. by s. 6, ibid., for “constitute” (w.e.f. 2-8-2019). 3. Subs. by s. 6, _ibid., for “The Central Government shall, by notification in the Official Gazette, for the trial of_ Scheduled Offences, constitute one or more Special Courts” (w.e.f. 2-8-2019). 4. Ins. by s. 6, ibid. (w.e.f. 2-8-2019). 5. Sub-section (3), (4), (5), (6) and (7) omitted by s. 6, ibid. (w.e.f. 2-8-2019). 6. Subs. by s. 6, ibid., for “by a person appointed as a Judge or an additional Judge of a Special Court” (w.e.f. 2-8-2019). 7. Subs. by s. 6, ibid., for “such judge or additional judge and the Central Government” (w.e.f. 2-8-2019). 8. Subs. by s. 6, ibid., for “as may be specified in that order” (w.e.f. 2-8-2019). 5 ----- 1[(9) When more than one Special Court is designated for an area or areas, the senior-most Judge shall distribute the business among them.] **12. Place of sitting.—A Special Court may, on its own motion, or on an application made by the** Public Prosecutor and if it considers it expedient or desirable so to do, sit for any of its proceedings at any place other than its ordinary place of sitting. **13. Jurisdiction of Special Courts.—(1) Notwithstanding anything contained in the Code, every** Scheduled Offence investigated by the Agency shall be tried only by the Special Court within whose local jurisdiction it was committed. (2) If, having regard to the exigencies of the situation prevailing in a State if,— (a) it is not possible to have a fair, impartial or speedy trial; or (b) it is not feasible to have the trial without occasioning the breach of peace or grave risk to the safety of the accused, the witnesses, the Public Prosecutor or a judge of the Special Court or any of them; or (c) it is not otherwise in the interests of justice, the Supreme Court may transfer any case pending before a Special Court to any other Special Court within that State or in any other State and the High Court may transfer any case pending before a Special Court situated in that State to any other Special Court within the State. (3) The Supreme Court or the High Court, as the case may be, may act under this section either on the application of the Central Government or a party interested and any such application shall be made by motion, which shall, except when the applicant is the Attorney-General for India, be supported by an affidavit or affirmation. **14. Powers of Special Courts with respect to other offences.—(1) When trying any offence, a** Special Court may also try any other offence with which the accused may, under the Code be charged, at the same trial if the offence is connected with such other offence. (2) If, in the course of any trial under this Act of any offence, it is found that the accused person has committed any other offence under this Act or under any other law, the Special Court may convict such person of such other offence and pass any sentence or award punishment authorised by this Act or, as the case may be, under such other law. **15. Public Prosecutors.—(1) The Central Government shall appoint a person to be the Public** Prosecutor and may appoint one or more persons to be the Additional Public Prosecutor or Additional Public Prosecutors: Provided that the Central Government may also appoint for any case or class or group of cases a Special Public Prosecutor. (2) A person shall not be qualified to be appointed as a Public Prosecutor or an Additional Public Prosecutor or a Special Public Prosecutor under this section unless he has been in practice as an Advocate for not less than seven years or has held any post, for a period of not less than seven years, under the Union or a State, requiring special knowledge of law. (3) Every person appointed as a Public Prosecutor or an Additional Public Prosecutor or a Special Public Prosecutor under this section shall be deemed to be a Public Prosecutor within the meaning of clause (u) of section 2 of the Code, and the provisions of the Code shall have effect accordingly. **16. Procedure and powers of Special Courts.—(1) A Special Court may take cognizance of any** offence, without the accused being committed to it for trial, upon receiving a complaint of facts that constitute such offence or upon a police report of such facts. (2) Where an offence triable by a Special Court is punishable with imprisonment for a term not exceeding three years or with fine or with both, the Special Court may, notwithstanding anything 1. Subs. by Act 16 of 2019, s. 6, for sub-section (9) (w.e.f. 2-8-2019). 6 ----- contained in sub-section (1) of section 260 or section 262 of the Code, try the offence in a summary way in accordance with the procedure prescribed in the Code and the provisions of sections 263 to 265 of the Code shall, so far as may be, apply to such trial: Provided that when, in the course of a summary trial under this sub-section, it appears to the Special Court that the nature of the case is such that it is not desirable to try it in a summary way, the Special Court shall recall any witnesses who may have been examined and proceed to re-hear the case in the manner provided by the provisions of the Code for the trial of such offence and the said provisions shall apply to, and in relation to, a Special Court as they apply to and in relation to a Magistrate: Provided further that in the case of any conviction in a summary trial under this section, it shall be lawful for a Special Court to pass a sentence of imprisonment for a term not exceeding one year and with fine which may extend to five lakh rupees. (3) Subject to the other provisions of this Act, a Special Court shall, for the purpose of trial of any offence, have all the powers of a Court of Session and shall try such offence as if it were a Court of Session so far as may be in accordance with the procedure prescribed in the Code for the trial before a Court of Session. (4) Subject to the other provisions of this Act, every case transferred to a Special Court under sub-section (2) of section 13 shall be dealt with as if such case had been transferred under section 406 of the Code to such Special Court. (5) Notwithstanding anything contained in the Code, but subject to the provisions of section 299 of the Code, a Special Court may, if it thinks fit and for reasons to be recorded by it, proceed with the trial in the absence of the accused or his pleader and record the evidence of any witness, subject to the right of the accused to recall the witness for cross-examination. **17. Protection of witnesses.—(1) Notwithstanding anything contained in the Code, the proceedings** under this Act may, for reasons to be recorded in writing, be held _in camera if the Special Court so_ desires. (2) On an application made by a witness in any proceeding before it or by the Public Prosecutor in relation to such witness or on its own motion, if the Special Court is satisfied that the life of such witness is in danger, it may, for reasons to be recorded in writing, take such measures as it deems fit for keeping the identity and address of such witness secret. (3) In particular, and without prejudice to the generality of the provisions of sub-section (2), the measures which a Special Court may take under that sub-section may include— (a) the holding of the proceedings at a place to be decided by the Special Court; (b) the avoiding of the mention of the names and addresses of the witnesses in its orders or judgments or in any records of the case accessible to public; (c) the issuing of any directions for securing that the identity and address of the witnesses are not disclosed; and (d) a decision that it is in the public interest to order that all or any of the proceedings pending before such a Court shall not be published in any manner. (4) Any person who contravenes any decision or direction issued under sub-section (3) shall be punishable with imprisonment for a term which may extend to three years and with fine which may extend to one thousand rupees. **18. Sanction for prosecution.—No prosecution, suit or other legal proceedings shall be instituted in** any court of law, except with the previous sanction of the Central Government, against any member of the Agency or any person acting on his behalf in respect of anything done or purported to be done in exercise of the powers conferred by this Act. **19. Trial by Special Court to have precedence.—The trial under this Act of any offence by a** Special Court shall be held on day-to- day basis on all working days and have precedence over the trial of any other case against the accused in any other court (not being a Special Court) and shall be concluded in 7 ----- preference to the trial of such other case and accordingly the trial of such other case shall, if necessary, remain in abeyance. **20. Power to transfer cases to regular courts.—Where, after taking cognizance of any offence, a** Special Court is of the opinion that the offence is not triable by it, it shall, notwithstanding that it has no jurisdiction to try such offence, transfer the case for the trial of such offence to any court having jurisdiction under the Code and the Court to which the case is transferred may proceed with the trial of the offence as if it had taken cognizance of the offence. **21. Appeals.—(1) Notwithstanding anything contained in the Code, an appeal shall lie from any** judgment, sentence or order, not being an interlocutory order, of a Special Court to the High Court both on facts and on law. (2) Every appeal under sub-section (1) shall be heard by a bench of two Judges of the High Court and shall, as far as possible, be disposed of within a period of three months from the date of admission of the appeal. (3) Except as aforesaid, no appeal or revision shall lie to any court from any judgment, sentence or order including an interlocutory order of a Special Court. (4) Notwithstanding anything contained in sub-section (3) of section 378 of the Code, an appeal shall lie to the High Court against an order of the Special Court granting or refusing bail. (5) Every appeal under this section shall be preferred within a period of thirty days from the date of the judgment, sentence or order appealed from: Provided that the High Court may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that the appellant had sufficient cause for not preferring the appeal within the period of thirty days: Provided further that no appeal shall be entertained after the expiry of period of ninety days. **22. Power of State Government to** **[1][designate Court of Session as] Special Courts.—(1) The** State Government may [2][designate one or more Courts of Session as] Special Courts for the trial of offences under any or all the enactments specified in the Schedule. (2) The provisions of this Chapter shall apply to the Special Courts [3][designated] by the State Government under sub-section (1) and shall have effect subject to the following modifications, namely— (i) references to “Central Government” in sections 11 and 15 shall be construed as references to State Government; (ii) reference to “Agency” in sub-section (1) of section 13 shall be construed as a reference to the “investigation agency of the State Government”; (iii) reference to “Attorney-General for India” in sub-section (3) of section 13 shall be construed as reference to “Advocate-General of the State”. (3) The jurisdiction conferred by this Act on a Special Court shall, until a Special Court is 3[designated] by the State Government under sub-section (1) in the case of any offence punishable under this Act, notwithstanding anything contained in the Code, be exercised by the Court of Session of the division in which such offence has been committed and it shall have all the powers and follow the procedure provided under this Chapter. (4) On and from the date when the Special Court is[ 3][designated] by the State Government the trial of any offence investigated by the State Government under the provisions of this Act, which would have been required to be held before the Special Court, shall stand transferred to that Court on the date on which it is [3][designated]. 1. Subs. by Act 16 of 2019, s. 7, for “constitute” (w.e.f. 2-8-2019). 2. Subs. by s. 7, ibid., for “constitute one or more” (w.e.f. 2-8-2019). 3. Subs. by s. 7, ibid., for “constituted” (w.e.f. 2-8-2019). 8 ----- CHAPTER V MISCELLANEOUS **23. Power of High Courts to make rules.—The High Court may, by notification in the Official** Gazette, make such rules, as it may deem necessary for carrying out the provisions of this Act relating to Special Courts within its territory. **24. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of this** Act, the Central Government may, by order published in the Official Gazette make such provisions, not inconsistent with the provisions of this Act, as may appear to it to be necessary or expedient for removing the difficulty: Provided that no order shall be made, under this section after the expiration of two years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **25. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules for carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality to the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the manner of constitution of the Agency and the conditions of service of persons employed in the Agency under section 5; (b) any other matter which is required to be, or may be, prescribed. **26. Laying of rules.—Every rule made by the Central Government under this Act shall be laid, as** soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agrees in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. 9 ----- THE SCHEDULE [See section 2(1) (f)] 1[1. The Explosive Substances Act, 1908 (6 of 1908); 1A. The Atomic Energy Act, 1962 (33 of 1962);] 2. The Unlawful Activities (Prevention) Act, 1967 (37 of 1967); 3. The Anti-Hijacking Act, [2][2016 (30 of 2016)]; 4. The Suppression of Unlawful Acts against Safety of Civil Aviation Act, 1982 (66 of 1982); 5. The SAARC Convention (Suppression of Terrorism) Act, 1993 (36 of 1993); 6. The Suppression of Unlawful Acts Against Safety of Maritime Navigation and Fixed Platforms on Continental Shelf Act, 2002 (69 of 2002); 7. The Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005 (21 of 2005); 8. Offences under— (a) Chapter VI of the Indian Penal Code (45 of 1860) [sections 121 to 130 (both inclusive)]; 3[(b) Sections 370 and 370A of Chapter XVI of the Indian Penal Code (45 of 1860); (c) Sections 489-A to 489-E (both inclusive) of the Indian Penal Code (45 of 1860); (d) Sub-section (1AA) of section 25 of Chapter V of the Arms Act, 1959 (54 of 1959); (e) Section 66F of Chapter XI of the Information Technology Act, 2000 (21 of 2000).] 1. Subs. by Act 16 of 2019, s. 8, for serial number 1 (w.e.f. 2-8-2019). 2. Subs. by s. 8, ibid., for “1982 (65 of 1982)” (w.e.f. 2-8-2019). 3. Ins. by s. 8, ibid. (w.e.f. 2-8-2019). 10 -----

7-Jan-2009

06

The Limited Liability Partnership Act, 2008

https://www.indiacode.nic.in/bitstream/123456789/2023/1/A2009-06.pdf

central

# THE LIMITED LIABILITY PARTNERSHIP ACT, 2008 ________________ # ARRANGEMENT OF SECTIONS ________________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II NATURE OF LIMITED LIABILITY PARTNERSHIP 3. Limited liability partnership to be body corporate. 4. Non-applicability of the Indian Partnership Act, 1932. 5. Partners. 6. Minimum number of partners. 7. Designated partners. 8. Liabilities of designated partners. 9. Changes in designated partners. 10. Punishment for contravention of sections 7 and 9. CHAPTER III INCORPORATION OF LIMITED LIABILITY PARTNERSHIP AND MATTERS INCIDENTAL THERETO 11. Incorporation document. 12. Incorporation by registration. 13. Registered office of limited liability partnership and change therein. 14. Effect of registration. 15. Name. 16. Reservation of name. 17. Rectification of name of limited liability partnership. 18. [Omitted.]. 19. Change of registered name. 20. Penalty for improper use of words “limited liability partnership” or “LLP”. 21. Publication of name and limited liability. 1 ----- CHAPTER IV PARTNERS AND THEIR RELATIONS SECTIONS 22. Eligibility to be partners. 23. Relationship of partners. 24. Cessation of partnership interest. 25. Registration of changes in partners. CHAPTER V EXTENT AND LIMITATION OF LIABILITY OF LIMITED LIABILITY PARTNERSHIP AND PARTNERS 26. Partner as agent. 27. Extent of liability of limited liability partnership. 28. Extent of liability of partner. 29. Holding out. 30. Unlimited liability in case of fraud. 31. Whistle blowing. CHAPTER VI CONTRIBUTIONS 32. Form of contribution. 33. Obligation to contribute. CHAPTER VII FINANCIAL DISCLOSURES 34. Maintenance of books of account, other records and audit, etc. 34A. Accounting and auditing standards. 35. Annual return. 36. Inspection of documents kept by Registrar. 37. Penalty for false statement. 38. Power of Registrar to obtain information. 39. Compounding of offences. 40. Destruction of old records. 41. Enforcement of duty to make returns, etc. CHAPTER VIII ASSIGNMENT AND TRANSFER OF PARTNERSHIP RIGHTS 42. Partner’s transferable interest. 2 ----- CHAPTER IX INVESTIGATION SECTIONS 43. Investigation of the affairs of limited liability partnership. 44. Application by partners for investigation. 45. Firm, body corporate or association not to be appointed as inspector. 46. Power of inspectors to carry out investigation into affairs of related entities, etc. 47. Production of documents and evidence. 48. Seizure of documents by inspector. 49. Inspector’s report. 50. Prosecution. 51. Application for winding up of limited liability partnership. 52. Proceedings for recovery of damages or property. 53. Expenses of investigation. 54. Inspector’s report to be evidence. CHAPTER X CONVERSION INTO LIMITED LIABILITY PARTNERSHIP 55. Conversion from firm into limited liability partnership. 56. Conversion from private company into limited liability partnership. 57. Conversion from unlisted public company into limited liability partnership. 58. Registration and effect of conversion. CHAPTER XI FOREIGN LIMITED LIABILITY PARTNERSHIPS 59. Foreign limited liability partnerships. CHAPTER XII COMPROMISE, ARRANGEMENT OR RECONSTRUCTION OF LIMITED LIABILITY PARTNERSHIPS 60. Compromise, or arrangement of limited liability partnerships. 61. Power of Tribunal to enforce compromise or arrangement. 62. Provisions for facilitating reconstruction or amalgamation of limited liability partnerships. CHAPTER XIII WINDING UP AND DISSOLUTION 63. Winding up and dissolution. 64. Circumstances in which limited liability partnership may be wound up by Tribunal. 65. Rules for winding up and dissolution. 3 ----- CHAPTER XIV MISCELLANEOUS SECTIONS 66. Business transactions of partner with limited liability partnership. 67. Application of the provisions of the Companies Act. 67A. Establishment of Special Courts. 67B. Procedure and powers of Special Court. 67C. Appeal and revision. 68. Electronic filing of documents. 68A. Registration offices. 69. Payment of additional fee. 70. Enhanced punishment. 71. Application of other laws not barred. 72. Jurisdiction of Tribunal and Appellate Tribunal. 73. [Omitted.]. 74. General penalties. 75. Power of Registrar to strike defunct limited liability partnership off register. 76. Offences to limited liability partnerships. 76A. Adjudication of penalties. 77. Jurisdiction of Courts. 77A. Cognizance of offences. 78. Power to alter Schedules. 79. Power to make rules. 80. Power to remove difficulties. 81. [Omitted.]. THE FIRST SCHEDULE. THE SECOND SCHEDULE. THE THIRD SCHEDULE. THE FOURTH SCHEDULE. 4 ----- # THE LIMITED LIABILITY PARTNERSHIP ACT, 2008 ACT NO. 6 OF 2009 [7th January, 2009.] # An Act to make provisions for the formation and regulation of limited liability partnerships and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-ninth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Limited Liability** Partnership Act, 2008. (2) It extends to the whole of India. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint: Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. **2. Definitions.—(1) In this Act, unless the context otherwise requires,—** (a) "address", in relation to a partner of a limited liability partnership, means— (i) if an individual, his usual residential address; and (ii) if a body corporate, the address of its registered office; (b) "advocate" means an advocate as defined in clause (a) of sub-section (1) of section 2 of the Advocates Act, 1961 (25 of 1961); (c) "Appellate Tribunal" means the National Company Law Appellate Tribunal constituted under 2[section 410] of 3[the Companies Act, 2013 (18 of 2013)]; (d) "body corporate" means a company as defined in [4][clause (20) of section 2] of [3][the Companies Act, 2013 (18 of 2013)] and includes— (i) a limited liability partnership registered under this Act; (ii) a limited liability partnership incorporated outside India; and (iii) a company incorporated outside India, but does not include— (i) a corporation sole; (ii) a co-operative society registered under any law for the time being in force; and (iii) any other body corporate (not being a company as defined in [4][clause (20) of section 2] of [3][the Companies Act, 2013 (18 of 2013)] or a limited liability partnership as defined in this Act), which the Central Government may, by notification in the Official Gazette, specify in this behalf; (e) "business" includes every trade, profession, service [5][and occupation except any activity which the Central Government may, by notification, exclude]; 1. 31st March, 2009, _vide notification No. S.O. 891 (E), dated 31st March, 2009,_ _see_ Gazette of India, Extraordinary, Part II, Sec. 3(ii). 2. Subs. by Act 31 of 2021, s. 3, for “sub-section (1) of section 10FR” (w.e.f. 1-4-2022). 3. Subs. by s. 2, ibid., for “the Companies Act, 1956 (1 of 1956)” (w.e.f. 1-4-2022). 4. Subs. by s. 3, ibid., for “section 3” (w.e.f. 1-4-2022). 5. Subs. by s. 4, ibid., for “and occupation” (w.e.f. 1-4-2022). 5 ----- (f) "chartered accountant" means a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949 (38 of 1949) and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act; (g) "company secretary" means a company secretary as defined in clause (c) of sub-section (1) of section 2 of the Company Secretaries Act, 1980 (56 of 1980) and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act; (h) "cost accountant" means a cost accountant as defined in clause (b) of sub-section (1) of section 2 of the Cost and Works Accountants Act, 1959 (23 of 1959) and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act; (i) "Court", with respect to any offence under this Act, means the Court having jurisdiction as per the provisions of section 77; (j) "designated partner" means any partner designated as such pursuant to section 7; (k) ''entity" means any body corporate and includes, for the purposes of sections 18, 46, 47, 48, 49, 50, 52 and 53, a firm setup under the Indian Partnership Act, 1932 (9 of 1932); (l) "financial year", in relation to a limited liability partnership, means the period from the 1st day of April of a year to the 31st day of March of the following year: Provided that in the case of a limited liability partnership incorporated after the 30th day of September of a year, the financial year may end on the 31st day of March of the year next following that year; (m)"foreign limited liability partnership" means a limited liability partnership formed, incorporated or registered outside India which establishes a place of business within India; (n) "limited liability partnership" means a partnership formed and registered under this Act; (o) "limited liability partnership agreement" means any written agreement between the partners of the limited liability partnership or between the limited liability partnership and its partners which determines the mutual rights and duties of the partners and their rights and duties in relation to that limited liability partnership; (p) "name", in relation to a partner of a limited liability partnership, means— (i) if an individual, his forename, middle name and surname; and (ii) if a body corporate, its registered name; (q) "partner", in relation to a limited liability partnership, means any person who becomes a partner in the limited liability partnership in accordance with the limited liability partnership agreement; (r) "prescribed" means prescribed by rules made under this Act; 1[(ra) “Regional Director” means a person appointed as such by Central Government for the purpose of this Act or the Companies Act, 2013 (18 of 2013), as the case may be.] 2[(s) "Registrar" means a person appointed by the Central Government as Registrar, an Additional Registrar, a Joint Registrar, a Deputy Registrar or an Assistant Registrar, for the purpose of this Act or the Companies Act, 2013 (18 of 2013)]; (t) "Schedule'' means a Schedule to this Act; 1[(ta) “small limited liability partnership” means a limited liability partnership- (i) the contribution of which, does not exceed twenty-five lakh rupees or such higher amount, not exceeding five crore rupees, as may be prescribed; and 1. Ins. by Act 31 of 2021, s. 3, for clause (s) (w.e.f. 1-4-2022). 2. Subs. by s. 3, for clause (s) (w.e.f. 1-4-2022). 6 ----- (ii) the turnover of which, as per the Statement of Accounts and Solvency for the immediately preceding financial year, does not exceed forty lakh rupees or such higher amount, not exceeding fifty crore rupees, as may be prescribed; or (iii) which meets such other requirements as may be prescribed, and fulfils such terms and conditions as may be prescribed;] (u) "Tribunal" means the National Company Law Tribunal constituted under [1][section 408] of 2[the Companies Act, 2013 (18 of 2013)]. (2) Words and expressions used and not defined in this Act but defined in [2][the Companies Act, 2013 (18 of 2013)]. shall have the meanings respectively assigned to them in that Act. CHAPTER II NATURE OF LIMITED LIABILITY PARTNERSHIP **3. Limited liability partnership to be body corporate.—(1) A limited liability partnership is a body** corporate formed and incorporated under this Act and is a legal entity separate from that of its partners. (2) A limited liability partnership shall have perpetual succession. (3) Any change in the partners of a limited liability partnership shall not affect the existence, rights or liabilities of the limited liability partnership. **4. Non-applicability of the Indian Partnership Act, 1932.—Save as otherwise provided, the** provisions of the Indian Partnership Act, 1932 (9 of 1932) shall not apply to a limited liability partnership. **5. Partners.—Any individual or body corporate may be a partner in a limited liability partnership:** Provided that an individual shall not be capable of becoming a partner of a limited liability partnership, if— (a) he has been found to be of unsound mind by a Court of competent jurisdiction and the finding is in force; (b) he is an undischarged insolvent; or (c) he has applied to be adjudicated as an insolvent and his application is pending. **6. Minimum number of partners.—(1) Every limited liability partnership shall have at least two** partners. (2) If at any time the number of partners of a limited liability partnership is reduced below two and the limited liability partnership carries on business for more than six months while the number is so reduced, the person, who is the only partner of the limited liability partnership during the time that it so carries on business after those six months and has the knowledge of the fact that it is carrying on business with him alone, shall be liable personally for the obligations of the limited liability partnership incurred during that period. **7. Designated partners.—(1) Every limited liability partnership shall have at least two designated** partners who are individuals and at least one of them shall be a resident in India: Provided that in case of a limited liability partnership in which all the partners are bodies corporate or in which one or more partners are individuals and bodies corporate, at least two individuals who are partners of such limited liability partnership or nominees of such bodies corporate shall act as designated partners. 1. Subs. by Act 31 of 2021, s. 3 “sub-section (1) of section 10FB” (w.e.f. 1-4-2022). 2. Subs. by s. 2, ibid., for “the Companies Act, 1956 (1 of 1956)” (w.e.f. 1-4-2022). 7 ----- _Explanation.—For the purposes of this section, the term "resident in India" means a person who has_ stayed in India for a period of not less than one hundred and [1][twenty days during the financial year]. (2) Subject to the provisions of sub-section (1),— (i) if the incorporation document— (a) specifies who are to be designated partners, such persons shall be designated partners on incorporation; or (b) states that each of the partners from time to time of limited liability partnership is to be designated partner, every such partner shall be a designated partner; (ii) any partner may become a designated partner by and in accordance with the limited liability partnership agreement and a partner may cease to be a designated partner in accordance with limited liability partnership agreement. (3) An individual shall not become a designated partner in any limited liability partnership unless he has given his prior consent to act as such to the limited liability partnership in such form and manner as may be prescribed. (4) Every limited liability partnership shall file with the registrar the particulars of every individual who has given his consent to act as designated partner in such form and manner as may be prescribed within thirty days of his appointment. (5) An individual eligible to be a designated partner shall satisfy such conditions and requirements as may be prescribed. (6) Every designated partner of a limited liability partnership shall obtain a Designated Partner Identification Number (DPIN) from the Central Government and the provisions of [2][sections 153 to 159] (both inclusive) of [3][the Companies Act, 2013 (18 of 2013)] shall apply _mutatis mutandis for the said_ purpose. **8. Liabilities of designated partners.—Unless expressly provided otherwise in this Act, a** designated partner shall be— (a) responsible for the doing of all acts, matters and things as are required to be done by the limited liability partnership in respect of compliance of the provisions of this Act including filing of any document, return, statement and the like report pursuant to the provisions of this Act and as may be specified in the limited liability partnership agreement; and (b) liable to all penalties imposed on the limited liability partnership for any contravention of those provisions. **9. Changes in designated partners.—A limited liability partnership may appoint a designated** partner within thirty days of a vacancy arising for any reason and provisions of sub-section (4) and sub-section (5) of section 7 shall apply in respect of such new designated partner: Provided that if no designated partner is appointed, or if at any time there is only one designated partner, each partner shall be deemed to be a designated partner. **10. Punishment for contravention of sections 7, [4]*** and 9.—(1) If the limited liability partnership** contravenes the provisions of sub-section (1) of section 7, the limited liability partnership and its every partner shall be [5][liable to a penalty of ten thousand rupees and in case of continuing contravention, with a further penalty of one hundred rupees for each day after the first during which such contravention continues, subject to a maximum of one lakh rupees for the limited liability partnership and fifty thousand rupees for every partner of such limited liability partnership]. 1. Subs. by Act 31 of 2021, s. 4, for “eighty-two days during the immediately preceding one year” (w.e.f. 1-4-2022). 2. Subs. by s. 4, ibid., for “sections 266A to 266G” (w.e.f. 1-4-2022). 3. Subs. by s. 2, ibid., for “the Companies Act, 1956 (1 of 1956)” (w.e.f. 1-4-2022). 3. The figure “8” omitted by s. 5, ibid., for “(w.e.f. 1-4-2022). 4. Subs. by s. 5, ibid., for “punishable with fine which shall not be less than ten thousand rupees, but which may extend to five lakh rupees” (w.e.f. 1-4-2022). 8 ----- 1[(2) If the limited liability partnership contravenes the provision of sub-section (4) of section 7, such limited liability partnership and its every designated partner shall be liable to a penalty of five thousand rupees and in case of continuing contravention, with a further penalty of one hundred rupees for each day after the first during which such contravention continues, subject to a maximum of fifty thousand rupees for the limited liability partnership and twenty-five thousand rupees for its every designated partner. (3) If the limited liability partnership contravenes the provisions of sub-section (5) of section 7 or section 9, such limited liability partnership and its every partner shall be liable to a penalty of ten thousand rupees, and in case of continuing contravention, with a further penalty of one hundred rupees for each day after the first during which such contravention continues, subject to a maximum of one lakh rupees for the limited liability partnership and fifty thousand rupees for its every partner.] CHAPTER III INCORPORATION OF LIMITED LIABILITY PARTNERSHIP AND MATTERS INCIDENTAL THERETO **11. Incorporation document.—(1) For a limited liability partnership to be incorporated,—** (a) two or more persons associated for carrying on a lawful business with a view to profit shall subscribe their names to an incorporation document; (b) the incorporation document shall be filed in such manner and with such fees, as may be prescribed with the Registrar of the State in which the registered office of the limited liability partnership is to be situated; and (c) there shall be filed along with the incorporation document, a statement in the prescribed form, made by either an advocate, or a Company Secretary or a Chartered Accountant or a Cost Accountant, who is engaged in the formation of the limited liability partnership and by any one who subscribed his name to the incorporation document, that all the requirements of this Act and the rules made thereunder have been complied with, in respect of incorporation and matters precedent and incidental thereto. (2) The incorporation document shall— (a) be in a form as may be prescribed; (b) state the name of the limited liability partnership; (c) state the proposed business of the limited liability partnership; (d) state the address of the registered office of the limited liability partnership; (e) state the name and address of each of the persons who are to be partners of the limited liability partnership on incorporation; (f) state the name and address of the persons who are to be designated partners of the limited liability partnership on incorporation; (g) contain such other information concerning the proposed limited liability partnership as may be prescribed. (3) If a person makes a statement under clause (c) of sub-section (1) which he— (a) knows to be false; or (b) does not believe to be true, shall be punishable with imprisonment for a term which may extend to two years and with fine which shall not be less than ten thousand rupees but which may extend to five lakh rupees. **12. Incorporation by registration.—(1) When the requirements imposed by clauses (b) and (c) of** sub-section (1) of section 11 have been complied with, the Registrar shall retain the incorporation 1. Subs. by Act 31of 2021, s. 5, for sub-section (2) (w.e.f. 1-4-2022). 9 ----- document and, unless the requirement imposed by clause (a) of that sub-section has not been complied with, he shall, within a period of fourteen days— (a) register the incorporation document; and (b) give a certificate that the limited liability partnership is incorporated by the name specified therein. (2) The Registrar may accept the statement delivered under clause (c) of sub-section (1) of section 11 as sufficient evidence that the requirement imposed by clause (a) of that sub-section has been complied with. (3) The certificate issued under clause (b) of sub-section (1) shall be signed by the Registrar and authenticated by his official seal. (4) The certificate shall be conclusive evidence that the limited liability partnership is incorporated by the name specified therein. **13. Registered office of limited liability partnership and change therein.—(1) Every limited** liability partnership shall have a registered office to which all communications and notices may be addressed and where they shall be received. (2) A document may be served on a limited liability partnership or a partner or designated partner thereof by sending it by post under a certificate of posting or by registered post or by any other manner, as may be prescribed, at the registered office and any other address specifically declared by the limited liability partnership for the purpose in such form and manner as may be prescribed. (3) A limited liability partnership may change the place of its registered office and file the notice of such change with the Registrar in such form and manner and subject to such conditions as may be prescribed and any such change shall take effect only upon such filing. 1[(4) If any default is made in complying with the requirements of this section, the limited liability partnership and its every partner shall be liable to a penalty of five hundred rupees for each day during which the default continues, subject to a maximum of fifty thousand rupees for the limited liability partnership and its every partner.] **14. Effect of registration.—On registration, a limited liability partnership shall, by its name, be** capable of— (a) suing and being sued; (b) acquiring, owning, holding and developing or disposing of property, whether movable or immovable, tangible or intangible; (c) having a common seal, if it decides to have one; and (d) doing and suffering such other acts and things as bodies corporate may lawfully do and suffer. **15. Name.—(1) Every limited liability partnership shall have either the words "limited liability** partnership" or the acronym "LLP" as the last words of its name. (2) No limited liability partnership shall be registered by a name which, in the opinion of the Central Government is— (a) undesirable; or 2[(b) identical or too nearly resembles to that of any other limited liability partnership or a company or a registered trade mark of any other person under the Trade Marks Act, 1999 (47 of 1999).] **16. Reservation of name.—(1) A person may apply in such form and manner and accompanied by** such fee as may be prescribed to the Registrar for the reservation of a name set out in the application as— 1. Subs. by Act 31 of 2021, s. 6, for sub-section (4) (w.e.f. 1-4-2022). 2. Subs. by s. 7, ibid., for clause (b) (w.e.f. 1-4-2022). 10 ----- (a) the name of a proposed limited liability partnership; or (b) the name to which a limited liability partnership proposes to change its name. (2) Upon receipt of an application under sub-section (1) and on payment of the prescribed fee, the Registrar may, if he is satisfied, subject to the rules prescribed by the Central Government in the matter, that the name to be reserved is not one which may be rejected on any ground referred to in sub-section (2) of section 15, reserve the name for a period of three months from the date of intimation by the Registrar. **1[17. Rectification of name of limited liability partnership.—(1) Notwithstanding anything** contained in sections 15 and 16, if through inadvertence or otherwise, a limited liability partnership, on its first registration or on its registration by a new name, is registered by a name which is identical with or too nearly resembles to- (a) that of any other limited liability partnership or a company; or (b) a registered trade mark of a proprietor under the Trade Marks Act, 1999 (47 of 1999), as is likely to be mistaken for it, then on an application of such limited liability partnership or proprietor referred to in clauses (a) and (b) respectively or a company, the Central Government may direct that such limited liability partnership to change its name or new name within a period of three months from the date of issue of such direction: Provided that an application of the proprietor of the registered trade marks shall be maintainable within a period of three years from the date of incorporation or registration or change of name of the limited liability partnership under this Act. (2) Where a limited liability partnership changes its name or obtains a new name under sub-section (1), it shall within a period of fifteen days from the date of such change, give notice of the change to Registrar along with the order of the Central Government, who shall carry out necessary changes in the certificate of incorporation and within thirty days of such change in the certificate of incorporation, such limited liability partnership shall change its name in the limited liability partnership agreement. (3) If the limited liability partnership is in default in complying with any direction given under sub-section (1), the Central Government shall allot a new name to the limited liability partnership in such manner as may be prescribed and the Registrar shall enter the new name in the register of limited liability partnerships in place of the old name and issue a fresh certificate of incorporation with new name, which the limited liability partnership shall use thereafter: Provided that nothing contained in this sub-section shall prevent a limited liability partnership from subsequently changing its name in accordance with the provisions of section 16.] **18.** [Application for direction to change name in certain circumstances]. _Omitted by the Limited_ _liability Partnership (Amendment) Act, 2021 (31 of 2021), s. 9 (w.e.f. 1-4-2022)._ **19. Change of registered name.—Any limited liability partnership may change its name registered** with the Registrar by filing with him a notice of such change in such form and manner and on payment of such fees as may be prescribed. **20. Penalty for improper use of words "limited liability partnership" or "LLP".—If any person** or persons carry on business under any name or title of which the words "Limited Liability Partnership" or "LLP" or any contraction or imitation thereof is or are the last word or words, that person or each of those persons shall, unless duly incorporated as limited liability partnership, be punishable with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees. 1. Subs. by Act 31 of 2021, s. 8, for section 17 (w.e.f. 1-4-2022). 11 ----- **21. Publication of name and limited liability.—(1) Every limited liability partnership shall ensure** that its invoices, official correspondence and publications bear the following, namely:— (a) the name, address of its registered office and registration number of the limited liability partnership; and (b) a statement that it is registered with limited liability. 1[(2) If the limited liability partnership contravenes the provisions of this section, the limited liability partnership shall be liable to a penalty of ten thousand rupees.] CHAPTER IV PARTNERS AND THEIR RELATIONS **22. Eligibility to be partners.—On the incorporation of a limited liability partnership, the persons** who subscribed their names to the incorporation document shall be its partners and any other person may become a partner of the limited liability partnership by and in accordance with the limited liability partnership agreement. **23. Relationship of partners.—(1) Save as otherwise provided by this Act, the mutual rights and** duties of the partners of a limited liability partnership, and the mutual rights and duties of a limited liability partnership and its partners, shall be governed by the limited liability partnership agreement between the partners, or between the limited liability partnership and its partners. (2) The limited liability partnership agreement and any changes, if any, made therein shall be filed with the Registrar in such form, manner and accompanied by such fees as may be prescribed. (3) An agreement in writing made before the incorporation of a limited liability partnership between the persons who subscribe their names to the incorporation document may impose obligations on the limited liability partnership, provided such agreement is ratified by all the partners after the incorporation of the limited liability partnership. (4) In the absence of agreement as to any matter, the mutual rights and duties of the partners and the mutual rights and duties of the limited liability partnership and the partners shall be determined by the provisions relating to that matter as are set-out in the First Schedule. **24. Cessation of partnership interest.—(1) A person may cease to be a partner of a limited liability** partnership in accordance with an agreement with the other partners or, in the absence of agreement with the other partners as to cessation of being a partner, by giving a notice in writing of not less than thirty days to the other partners of his intention to resign as partner. (2) A person shall cease to be a partner of a limited liability partnership— (a) on his death or dissolution of the limited liability partnership; or (b) if he is declared to be of unsound mind by a competent court; or (c) if he has applied to be adjudged as an insolvent or declared as an insolvent. (3) Where a person has ceased to be a partner of a limited liability partnership (hereinafter referred to as "former partner"), the former partner is to be regarded (in relation to any person dealing with the limited liability partnership) as still being a partner of the limited liability partnership unless— (a) the person has notice that the former partner has ceased to be a partner of the limited liability partnership; or (b) notice that the former partner has ceased to be a partner of the limited liability partnership has been delivered to the Registrar. 1. Subs. by Act 31 of 2021, s. 10, for sub-section (2) (w.e.f. 1-4-2022). 12 ----- (4) The cessation of a partner from the limited liability partnership does not by itself discharge the partner from any obligation to the limited liability partnership or to the other partners or to any other person which he incurred while being a partner. (5) Where a partner of a limited liability partnership ceases to be a partner, unless otherwise provided in the limited liability partnership agreement, the former partner or a person entitled to his share in consequence of the death or insolvency of the former partner, shall be entitled to receive from the limited liability partnership— (a) an amount equal to the capital contribution of the former partner actually made to the limited liability partnership; and (b) his right to share in the accumulated profits of the limited liability partnership, after the deduction of accumulated losses of the limited liability partnership, determined as at the date the former partner ceased to be a partner. (6) A former partner or a person entitled to his share in consequence of the death or insolvency of the former partner shall not have any right to interfere in the management of the limited liability partnership. **25. Registration of changes in partners.—(1) Every partner shall inform the limited liability** partnership of any change in his name or address within a period of fifteen days of such change. (2) A limited liability partnership shall— (a) where a person becomes or ceases to be a partner, file a notice with the Registrar within thirty days from the date he becomes or ceases to be a partner; and (b) where there is any change in the name or address of a partner, file a notice with the Registrar within thirty days of such change. (3) A notice filed with the Registrar under sub-section (2)— (a) shall be in such form and accompanied by such fees as may be prescribed; (b) shall be signed by the designated partner of the limited liability partnership and authenticated in a manner as may be prescribed; and (c) if it relates to an incoming partner, shall contain a statement by such partner that he consents to becoming a partner, signed by him and authenticated in the manner as may be prescribed. 1[(4) If the limited liability partnership contravenes the provisions of sub-section (2), the limited liability partnership and its every designated partner shall be liable to a penalty of ten thousand rupees. (5) If the contravention referred to in sub-section (1) is made by any partner of the limited liability partnership, such partner shall be liable to a penalty of ten thousand rupees.] (6) Any person who ceases to be a partner of a limited liability partnership may himself file with the Registrar the notice referred to in sub-section (3) if he has reasonable cause to believe that the limited liability partnership may not file the notice with the Registrar and in case of any such notice filed by a partner, the Registrar shall obtain a confirmation to this effect from the limited liability partnership unless the limited liability partnership has also filed such notice: Provided that where no confirmation is given by the limited liability partnership within fifteen days, the registrar shall register the notice made by a person ceasing to be a partner under this section. CHAPTER V EXTENT AND LIMITATION OF LIABILITY OF LIMITED LIABILITY PARTNERSHIP AND PARTNERS **26. Partner as agent.—Every partner of a limited liability partnership is, for the purpose of the** business of the limited liability partnership, the agent of the limited liability partnership, but not of other partners. 1. Subs. by Act 31 of 2021, s. 11, for sub-sections (4) and (5) (w.e.f. 1-4-2022). 13 ----- **27. Extent of liability of limited liability partnership.—(1) A limited liability partnership is not** bound by anything done by a partner in dealing with a person if— (a) the partner in fact has no authority to act for the limited liability partnership in doing a particular act; and (b) the person knows that he has no authority or does not know or believe him to be a partner of the limited liability partnership. (2) The limited liability partnership is liable if a partner of a limited liability partnership is liable to any person as a result of a wrongful act or omission on his part in the course of the business of the limited liability partnership or with its authority. (3) An obligation of the limited liability partnership whether arising in contract or otherwise, shall be solely the obligation of the limited liability partnership. (4) The liabilities of the limited liability partnership shall be met out of the property of the limited liability partnership. **28. Extent of liability of partner.—(1) A partner is not personally liable, directly or indirectly for an** obligation referred to in sub-section (3) of section 27 solely by reason of being a partner of the limited liability partnership. (2) The provisions of sub-section (3) of section 27 and sub-section (1) of this section shall not affect the personal liability of a partner for his own wrongful act or omission, but a partner shall not be personally liable for the wrongful act or omission of any other partner of the limited liability partnership. **29. Holding out.—(1) Any person, who by words spoken or written or by conduct, represents** himself, or knowingly permits himself to be represented to be a partner in a limited liability partnership is liable to any person who has on the faith of any such representation given credit to the limited liability partnership, whether the person representing himself or represented to be a partner does or does not know that the representation has reached the person so giving credit: Provided that where any credit is received by the limited liability partnership as a result of such representation, the limited liability partnership shall, without prejudice to the liability of the person so representing himself or represented to be a partner, be liable to the extent of credit received by it or any financial benefit derived thereon. (2) Where after a partner's death the business is continued in the same limited liability partnership name, the continued use of that name or of the deceased partner's name as a part thereof shall not of itself make his legal representative or his estate liable for any act of the limited liability partnership done after his death. **30. Unlimited liability in case of fraud.—(1) In the event of an act carried out by a limited liability** partnership, or any of its partners, with intent to defraud creditors of the limited liability partnership or any other person, or for any fraudulent purpose, the liability of the limited liability partnership and partners who acted with intent to defraud creditors or for any fraudulent purpose shall be unlimited for all or any of the debts or other liabilities of the limited liability partnership: Provided that in case any such act is carried out by a partner, the limited liability partnership is liable to the same extent as the partner unless it is established by the limited liability partnership that such act was without the knowledge or the authority of the limited liability partnership. (2) Where any business is carried on with such intent or for such purpose as mentioned in sub-section (1), every person who was knowingly a party to the carrying on of the business in the manner aforesaid shall be punishable with imprisonment for a term which may extend to [1][five years] and with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees. (3) Where a limited liability partnership or any partner or designated partner or employee of such limited liability partnership has conducted the affairs of the limited liability partnership in a fraudulent 1. Subs. by Act 31 of 2021, s. 12, for “two years” (w.e.f. 1-4-2022). 14 ----- manner, then without prejudice to any criminal proceedings which may arise under any law for the time being in force, the limited liability partnership and any such partner or designated partner or employee shall be liable to pay compensation to any person who has suffered any loss or damage by reason of such conduct: Provided that such limited liability partnership shall not be liable if any such partner or designated partner or employee has acted fraudulently without knowledge of the limited liability partnership. **31. Whistle blowing.—(1) The Court or Tribunal may reduce or waive any penalty leviable against** any partner or employee of a limited liability partnership, if it is satisfied that— (a) such partner or employee of a limited liability partnership has provided useful information during investigation of such limited liability partnership; or (b) when any information given by any partner or employee (whether or not during investigation) leads to limited liability partnership or any partner or employee of such limited liability partnership being convicted under this Act or any other Act. (2) No partner or employee of any limited liability partnership may be discharged, demoted, suspended, threatened, harassed or in any other manner discriminated against the terms and conditions of his limited liability partnership or employment merely because of his providing information or causing information to be provided pursuant to sub-section (1). CHAPTER VI CONTRIBUTIONS **32. Form of contribution.—(1) A contribution of a partner may consist of tangible, movable or** immovable or intangible property or other benefit to the limited liability partnership, including money, promissory notes, other agreements to contribute cash or property, and contracts for services performed or to be performed. (2) The monetary value of contribution of each partner shall be accounted for and disclosed in the accounts of the limited liability partnership in the manner as may be prescribed. **33. Obligation to contribute.—(1) The obligation of a partner to contribute money or other property** or other benefit or to perform services for a limited liability partnership shall be as per the limited liability partnership agreement. (2) A creditor of a limited liability partnership, which extends credit or otherwise acts in reliance on an obligation described in that agreement, without notice of any compromise between partners, may enforce the original obligation against such partner. CHAPTER VII FINANCIAL DISCLOSURES **34. Maintenance of books of account, other records and audit, etc.—(1) The limited liability** partnership shall maintain such proper books of account as may be prescribed relating to its affairs for each year of its existence on cash basis or accrual basis and according to double entry system of accounting and shall maintain the same at its registered office for such period as may be prescribed. (2) Every limited liability partnership shall, within a period of six months from the end of each financial year, prepare a Statement of Account and Solvency for the said financial year as at the last day of the said financial year in such form as may be prescribed, and such statement shall be signed by the designated partners of the limited liability partnership. (3) Every limited liability partnership shall file within the prescribed time, the Statement of Account and Solvency prepared pursuant to sub-section (2) with the Registrar every year in such form and manner and accompanied by such fees as may be prescribed. (4) The accounts of limited liability partnerships shall be audited in accordance with such rules as may be prescribed: 15 ----- Provided that the Central Government may, by notification in the Official Gazette, exempt any class or classes of limited liability partnerships from the requirements of this sub-section. 1[(5) Any limited liability partnership which fails to comply with the provisions of sub-section (3), such limited liability partnership and its designated partners shall be liable to a penalty of one hundred rupees for each day during which such failure continues, subject to a maximum of one lakh rupees for the limited liability partnership and fifty thousand rupees for every designated partner. (6) Any limited liability partnership which fails to comply with the provisions of sub-section (1), sub-section (2) and sub-section (4), such limited liability partnership shall be punishable with fine which shall not be less than twenty-five thousand rupees, but may extend to five lakh rupees and every designated partner of such limited liability partnership shall be punishable with fine which shall not be less than ten thousand rupees, but may extend to one lakh rupees.] **2[34A. Accounting and auditing standards.—The Central Government may, in consultation with** the National Financial Reporting Authority constituted under section 132 of the Companies Act, 2013 (18 of 2013),- (a) prescribe the standards of accounting; and (b) prescribe the standards of auditing, as recommended by the Institute of Chartered Accountants of India constituted under section 3 of the Chartered Accountants Act, 1949 (38 of 1949), for a class or classes of limited liability partnerships.] **35. Annual return.—(1) Every limited liability partnership shall file an annual return duly** authenticated with the Registrar within sixty days of closure of its financial year in such form and manner and accompanied by such fee as may be prescribed. 3[(2) If any limited liability partnership fails to file its annual return under sub-section (1) before the expiry of the period specified therein, such limited liability partnership and its designated partners shall be liable to a penalty of one hundred rupees for each day during which such failure continues, subject to a maximum of one lakh rupees for the limited liability partnership and fifty thousand rupees for designated partners.] **36. Inspection of documents kept by Registrar.—The incorporation document, names of partners** and changes, if any, made therein, Statement of Account and Solvency and annual return filed by each limited liability partnership with the Registrar shall be available for inspection by any person in such manner and on payment of such fee as may be prescribed. **37. Penalty for false statement.—If in any return, statement or other document required by or for the** purposes of any of the provisions of this Act, any person makes a statement— (a) which is false in any material particular, knowing it to be false; or (b) which omits any material fact knowing it to be material, he shall, save as otherwise expressly provided in this Act, be punishable with imprisonment for a term which may extend to two years, and shall also be liable to fine which may extend to five lakh rupees but which shall not be less than one lakh rupees. **38. Power of Registrar to obtain information.—(1) In order to obtain such information as the** Registrar may consider necessary for the purposes of carrying out the provisions of this Act, the Registrar may require any person including any present or former partner or designated partner or employee of a limited liability partnership to answer any question or make any declaration or supply any details or particulars in writing to him within a reasonable period. (2) In case any person referred to in sub-section (1) does not answer such question or make such declaration or supply such details or particulars asked for by the Registrar within a reasonable time or 1. Subs. by Act 31 of 2021, s. 13, for sub-section (5) (w.e.f. 1-4-2022). 2. Ins. by s. 14, ibid., (w.e.f. 1-4-2022). 3. Subs. by s. 15, ibid., for sub-sections (2) and (3) (w.e.f. 1-4-2022). 16 ----- time given by the Registrar or when the Registrar is not satisfied with the reply or declaration or details or particulars provided by such person, the Registrar shall have power to summon that person to appear before him or an inspector or any other public officer whom the Registrar may designate, to answer any such question or make such declaration or supply such details, as the case may be. (3) Any person who, without lawful excuse, fails to comply with any summons or requisition of the Registrar under this section shall be punishable with fine which shall not be less than two thousand rupees but which may extend to twenty-five thousand rupees. **1[39. Compounding of offences.—(1) Notwithstanding anything contained in the Code of Criminal** Procedure, 1973 (2 of 1974), the Regional Director or any other officer not below the rank of Regional Director authorised by the Central Government may compound any offence under this Act which is punishable with fine only, by collecting from a person reasonably suspected of having committed the offence, a sum which may extend to the amount of the maximum fine provided for the offence but shall not be lower than the minimum amount provided for the offence. (2) Nothing contained in sub-section (1) shall apply to an offence committed by a limited liability partnership or its partner or its designated partner within a period of three years from the date on which similar offence committed by it or him was compounded under this section. _Explanation.--For the removal of doubts, it is hereby clarified that any second or subsequent offence_ committed after the expiry of the period of three years from the date on which the offence was previously compounded, shall be deemed to be the first offence. (3) Every application for the compounding of an offence shall be made to the Registrar who shall forward the same, together with his comments thereon, to the Regional Director or any other officer not below the rank of Regional Director authorised by the Central Government, as the case may be. (4) Where any offence is compounded under this section, whether before or after the institution of any prosecution, intimation thereof shall be given to the Registrar within a period of seven days from the date on which the offence is so compounded. (5) Where any offence is compounded before the institution of any prosecution, no prosecution shall be instituted in relation to such offence. (6) Where the compounding of any offence is made after the institution of any prosecution, such compounding shall be brought by the Registrar in writing, to the notice of the court in which prosecution is pending and on such notice of the compounding of the offence being given, the offender in relation to which the offence is so compounded shall be discharged. (7) The Regional Director or any other officer not below the rank of Regional Director authorised by the Central Government, while dealing with the proposal for compounding of an offence may, by an order, direct any partner, designated partner or other employee of the limited liability partnership to file or register, or on payment of fee or additional fee as required to be paid under this Act, such return, account or other document within such time as may be specified in the order. (8) Notwithstanding anything contained in this section, if any partner or designated partner or other employee of the limited liability partnership who fails to comply with any order made by the Regional Director or any other officer not below the rank of Regional Director authorised by the Central Government, under sub-section (7), the maximum amount of fine for the offence, which was under consideration of Regional Director or such authorised officer for compounding under this section shall be twice the amount provided in the corresponding section in which punishment for such offence is provided.] **40. Destruction of old records.—The Registrar may destroy any document filed or registered with** him in physical form or in electronic form in accordance with such rules as may be prescribed. **41. Enforcement of duty to make returns, etc.—(1) If any limited liability partnership is in default** in complying with— 1. Subs. by Act 31 of 2021, s. 16, for section 39 (w.e.f. 1-4-2022). 17 ----- (a) any provisions of this Act or of any other law which requires the filing in any manner with the Registrar of any return, account or other document or the giving of notice to him of any matter; or (b) any request of the Registrar to amend or complete and resubmit any document or to submit a fresh document, and fails to make good the default within fourteen days after the service on the limited liability partnership of a notice requiring it to be done, the Tribunal may, on application by the Registrar, make an order directing that limited liability partnership or its designated partners or its partners to make good the default within such time as specified in the order. (2) Any such order may provide that all the costs of and incidental to the application shall be borne by that limited liability partnership. (3) Nothing in this section shall limit the operation of any other provision of this Act or any other law imposing penalties in respect of any default referred to in this section on that limited liability partnership. CHAPTER VIII ASSIGNMENT AND TRANSFER OF PARTNERSHIP RIGHTS **42. Partner's transferable interest.—(1) The rights of a partner to a share of the profits and losses** of the limited liability partnership and to receive distributions in accordance with the limited liability partnership agreement are transferable either wholly or in part. (2) The transfer of any right by any partner pursuant to sub-section (1) does not by itself cause the disassociation of the partner or a dissolution and winding up of the limited liability partnership. (3) The transfer of right pursuant to this section does not, by itself, entitle the transferee or assignee to participate in the management or conduct of the activities of the limited liability partnership, or access information concerning the transactions of the limited liability partnership. CHAPTER IX INVESTIGATION **43. Investigation of the affairs of limited liability partnership.—(1) The Central Government shall** appoint one or more competent persons as inspectors to investigate the affairs of a limited liability partnership and to report thereon in such manner as it may direct if— (a) the Tribunal, either suo motu, or on an application received from not less than one-fifth of the total number of partners of limited liability partnership, by order, declares that the affairs of the limited liability partnership ought to be investigated; or (b) any Court, by order, declares that the affairs of a limited liability partnership ought to be investigated. (2) The Central Government may appoint one or more competent persons as inspectors to investigate the affairs of a limited liability partnership and to report on them in such manner as it may direct. (3) The appointment of inspectors pursuant to sub-section (2) may be made,— (a) if not less than one-fifth of the total number of partners of the limited liability partnership make an application along with supporting evidence and security amount as may be prescribed; or (b) if the limited liability partnership makes an application that the affairs of the limited liability partnership ought to be investigated; or (c) if, in the opinion of the Central Government, there are circumstances suggesting— (i) that the business of the limited liability partnership is being or has been conducted with an intent to defraud its creditors, partners or any other person, or otherwise for a fraudulent or unlawful purpose, or in a manner oppressive or unfairly prejudicial to some or any of its partners, or that the limited liability partnership was formed for any fraudulent or unlawful purpose; or 18 ----- (ii) that the affairs of the limited liability partnership are not being conducted in accordance with the provisions of this Act; or (iii) that, on receipt of a report of the Registrar or any other investigating or regulatory agency, there are sufficient reasons that the affairs of the limited liability partnership ought to be investigated. **44. Application by partners for investigation.—An application by partners of the limited liability** partnership under clause (a) of sub-section (1) of section 43 shall be supported by such evidence as the Tribunal may require for the purpose of showing that the applicants have good reason for requiring the investigation and the Central Government may, before appointing an inspector, require the applicants to give security, of such amount as may be prescribed, for payment of costs of the investigation. **45. Firm, body corporate or association not to be appointed as inspector.—No firm, body** corporate or other association shall be appointed as an inspector. **46. Power of inspectors to carry out investigation into affairs of related entities, etc.—(1) If an** inspector appointed by the Central Government to investigate the affairs of a limited liability partnership thinks it necessary for the purposes of his investigation to investigate also the affairs of an entity which has been associated in the past or is presently associated with the limited liability partnership or any present or former partner or designated partner of the limited liability partnership, the inspector shall have the power to do so and shall report on the affairs of the other entity or partner or designated partner, so far as he thinks that the results of his investigation thereof are relevant to the investigation of the affairs of the limited liability partnership. (2) In the case of any entity or partner or designated partner referred to in sub-section (1), the inspector shall not exercise his power of investigating into, and reporting on, its or his affairs without obtaining the prior approval of the Central Government thereto: Provided that before according approval under this sub-section, the Central Government shall give the entity or partner or designated partner a reasonable opportunity to show cause why such approval should not be accorded. **47. Production of documents and evidence.—(1) It shall be the duty of the designated partner and** partners of the limited liability partnership— (a) to preserve and to produce before an inspector or any person authorised by him in this behalf with the previous approval of the Central Government, all books and papers of, or relating to, the limited liability partnership or, as the case may be, the other entity, which are in their custody or power; and (b) otherwise to give to the inspector all assistance in connection with the investigation which they are reasonably able to give. (2) The inspector may, with the previous approval of the Central Government, require any entity other than an entity referred to in sub-section (1) to furnish such information to, or produce such books and papers before him or any person authorised by him in this behalf, with the previous approval of that Government, as he may consider necessary, if the furnishing of such information or the production of such books and papers is relevant or necessary for the purposes of his investigation. (3) The inspector may keep in his custody any books and papers produced under sub-section (1) or sub-section (2) for thirty days and thereafter shall return the same to the limited liability partnership, other entity or individual by whom or on whose behalf the books and papers are produced: Provided that the inspector may call for the books and papers if they are needed again: Provided further that if certified copies of the books and papers produced under sub-section (2) are furnished to the inspector, he shall return those books and papers to the entity or person concerned. (4) An inspector may examine on oath— (a) any of the persons referred to in sub-section (1); 19 ----- (b) with the previous approval of the Central Government, any other person in relation to the affairs of the limited liability partnership or any other entity, as the case may be; and (c) may administer an oath accordingly and for that purpose may require any of those persons to appear before him personally. (5) If any person fails without reasonable cause or refuses— (a) to produce before an inspector or any person authorised by him in this behalf with the previous approval of the Central Government any book or paper which it is his duty under sub-section (1) or sub-section (2) to produce; or (b) to furnish any information which is his duty under sub-section (2) to furnish; or (c) to appear before the inspector personally when required to do so under sub-section (4) or to answer any question which is put to him by the inspector in pursuance of that sub-section; or (d) to sign the notes of any examination, he shall be punishable with fine which shall not be less than two thousand rupees but which may extend to twenty-five thousand rupees and with a further fine which shall not be less than fifty rupees but which may extend to five hundred rupees for every day after the first day after which the default continues. (6) The notes of any examination under sub-section (4) shall be taken down in writing and signed by the person whose examination was made on oath and a copy of such notes shall be given to the person so examined on oath and thereafter be used as an evidence by the inspector. **48. Seizure of documents by inspector.—(1) Where in the course of investigation, the inspector has** reasonable ground to believe that the books and papers of, or relating to, the limited liability partnership or other entity or partner or designated partner of such limited liability partnership may be destroyed, mutilated, altered, falsified or secreted, the inspector may make an application to the Judicial Magistrate of the first class, or, as the case may be, the Metropolitan Magistrate, having jurisdiction, for an order for the seizure of such books and papers. (2) After considering the application and hearing the inspector, if necessary, the Magistrate may, by order, authorise the inspector— (a) to enter, with such assistance, as may be required, the place or places where such books and papers are kept; (b) to search that place or those places in the manner specified in the order; and (c) to seize books and papers which the inspector considers it necessary for the purposes of his investigation. (3) The inspector shall keep in his custody the books and papers seized under this section for such period not later than the conclusion of the investigation as he considers necessary and thereafter shall return the same to the concerned entity or person from whose custody or power they were seized and inform the Magistrate of such return: Provided that the books and papers shall not be kept seized for a continuous period of more than six months: Provided further that the inspector may, before returning such books and papers as aforesaid, place identification marks on them or any part thereof. (4) Save as otherwise provided in this section, every search or seizure made under this section shall be carried out in accordance with the provisions of the Code of Criminal Procedure, 1973 (2 of 1974) relating to searches or seizures made under that Code. **49. Inspector's report.—(1) The Inspector may, and if so directed by the Central Government, shall** make interim reports to that Government, and on the conclusion of the investigation, shall make a final report to the Central Government and any such report shall be written or printed, as the Central Government may direct. 20 ----- (2) The Central Government— (a) shall forward a copy of any report (other than an interim report) made by the inspectors to the limited liability partnership at its registered office, and also to any other entity or person dealt with or related to the report; and (b) may, if it thinks fit, furnish a copy thereof, on request and on payment of the prescribed fee, to any person or entity related to or affected by the report. **50. Prosecution.—If, from the report under section 49, it appears to the Central Government that any** person in relation to the limited liability partnership or in relation to any other entity whose affairs have been investigated, has been guilty of any offence for which he is liable, the Central Government may prosecute such person for the offence; and it shall be the duty of all partners, designated partners and other employees and agents of the limited liability partnership or other entity, as the case may be, to give the Central Government all assistance in connection with the prosecution which they are reasonably able to give. **51. Application for winding up of limited liability partnership.—If any such limited liability** partnership is liable to be wound up under this Act or any other law for the time being in force, and it appears to the Central Government from any such report under section 49 that it is expedient to do so by reason of any such circumstances as are referred to in sub-clause (i) or sub-clause (ii) of clause (c) of sub-section (3) of section 43, the Central Government may, unless the limited liability partnership is already being wound up by the Tribunal, cause to be presented to the Tribunal by any person authorised by the Central Government in this behalf, a petition for the winding up of the limited liability partnership on the ground that it is just and equitable that it should be wound up. **52. Proceedings for recovery of damages or property.—If, from any report under section 49, it** appears to the Central Government that proceedings ought, in the public interest, to be brought by the limited liability partnership or any entity whose affairs have been investigated,— (a) for the recovery of damages in respect of any fraud, misfeasance or other misconduct in connection with the promotion or formation, or the management of the affairs, of such limited liability partnership or such other entity; or (b) for the recovery of any property of such limited liability partnership or such other entity, which has been misapplied or wrongfully retained, the Central Government may itself bring proceedings for that purpose. **53. Expenses of investigation.—(1) The expenses of, and incidental to, an investigation by an** inspector appointed by the Central Government under this Act shall be defrayed in the first instance by the Central Government; but the following persons shall, to the extent mentioned below, be liable to reimburse the Central Government in respect of such expenses, namely:— (a) any person who is convicted on a prosecution, or who is ordered to pay damages or restore any property in proceedings brought by virtue of section 52, may, in the same proceedings, be ordered to pay the said expenses to such extent as may be specified by the court convicting such person, or ordering him to pay such damages or restore such property, as the case may be; (b) any entity in whose name proceedings are brought as aforesaid shall be liable, to the extent of the amount or value of any sums or property recovered by it as a result of the proceedings; and (c) unless, as a result of the investigation, a prosecution is instituted in pursuance of section 50,— (i) any entity, a partner or designated partner or any other person dealt with by the report of the inspector shall be liable to reimburse the Central Government in respect of the whole of the expenses, unless and except in so far as, the Central Government otherwise directs; and (ii) the applicants for the investigation, where the inspector was appointed in pursuance of the provisions of clause (a) of sub-section (1) of section 43, shall be liable to such extent, if any, as the Central Government may direct. 21 ----- (2) Any amount for which a limited liability partnership or other entity is liable by virtue of clause (b) of sub-section (1) shall be a first charge on the sums or property mentioned in that clause. (3) The amount of expenses in respect of which any limited liability partnership, other entity, a partner or designated partner or any other person is liable under sub-clause (i) of clause (c) of sub-section (1) to reimburse the Central Government shall be recoverable as arrears of land revenue. (4) For the purposes of this section, any costs or expenses incurred by the Central Government or in connection with the proceedings brought by virtue of section 52 shall be treated as expenses of the investigation giving rise to the proceedings. **54. Inspector's report to be evidence.—A copy of any report of any inspector or inspectors** appointed under the provisions of this Act, authenticated in such manner, if any, as may be prescribed, shall be admissible in any legal proceeding as evidence in relation to any matter contained in the report. CHAPTER X CONVERSION INTO LIMITED LIABILITY PARTNERSHIP **55. Conversion from firm into limited liability partnership.—A firm may convert into a limited** liability partnership in accordance with the provisions of this Chapter and the Second Schedule. **56. Conversion from private company into limited liability partnership.—A private company** may convert into a limited liability partnership in accordance with the provisions of this Chapter and the Third Schedule. **57. Conversion from unlisted public company into limited liability partnership.—An unlisted** public company may convert into a limited liability partnership in accordance with the provisions of this Chapter and the Fourth Schedule. **58. Registration and effect of conversion.—(1) The Registrar, on satisfying that a firm, private** company or an unlisted public company, as the case may be, has complied with the provisions of the Second Schedule, the Third Schedule or the Fourth Schedule, as the case may be, shall, subject to the provisions of this Act and the rules made thereunder, register the documents submitted under such Schedule and issue a certificate of registration in such form as the Registrar may determine stating that the limited liability partnership is, on and from the date specified in the certificate, registered under this Act: Provided that the limited liability partnership shall, within fifteen days of the date of registration, inform the concerned Registrar of Firms or Registrar of Companies, as the case may be, with which it was registered under the provisions of the Indian Partnership Act, 1932 (9 of 1932) or [1][the Companies Act, 2013 (18 of 2013)] as the case may be, about the conversion and of the particulars of the limited liability partnership in such form and manner as may be prescribed. (2) Upon such conversion, the partners of the firm, the shareholders of private company or unlisted public company, as the case may be, the limited liability partnership to which such firm or such company has converted, and the partners of the limited liability partnership shall be bound by the provisions of the Second Schedule, the Third Schedule or the Fourth Schedule, as the case may be, applicable to them. (3) Upon such conversion, on and from the date of certificate of registration, the effects of the conversion shall be such as specified in the Second Schedule, the Third Schedule or the Fourth Schedule, as the case may be. (4) Notwithstanding anything contained in any other law for the time being in force, on and from the date of registration specified in the certificate of registration issued under the Second Schedule, the Third Schedule or the Fourth Schedule, as the case may be,— (a) there shall be a limited liability partnership by the name specified in the certificate of registration registered under this Act; 1. Subs. by Act 31 of 2021, s. 2, for “the Companies Act, 1956 (1 of 1956)” (w.e.f. 1-4-2022). 22 ----- (b) all tangible (movable or immovable) and intangible property vested in the firm or the company, as the case may be, all assets, interests, rights, privileges, liabilities, obligations relating to the firm or the company, as the case may be, and the whole of the undertaking of the firm or the company, as the case may be, shall be transferred to and shall vest in the limited liability partnership without further assurance, act or deed; and (c) the firm or the company, as the case may be, shall be deemed to be dissolved and removed from the records of the Registrar of Firms or Registrar of Companies, as the case may be. CHAPTER XI FOREIGN LIMITED LIABILITY PARTNERSHIPS **59. Foreign limited liability partnerships.—The Central Government may make rules for** provisions in relation to establishment of place of business by foreign limited liability partnerships within India and carrying on their business therein by applying or incorporating, with such modifications, as appear appropriate, the provisions of [1][the Companies Act, 2013 (18 of 2013)] or such regulatory mechanism with such composition as may be prescribed. CHAPTER XII COMPROMISE, ARRANGEMENT OR RECONSTRUCTION OF LIMITED LIABILITY PARTNERSHIPS **60. Compromise, or arrangement of limited liability partnerships.—(1) Where a compromise or** arrangement is proposed— (a) between a limited liability partnership and its creditors; or (b) between a limited liability partnership and its partners, the Tribunal may, on the application of the limited liability partnership or of any creditor or partner of the limited liability partnership, or, in the case of a limited liability partnership which is being wound up, of the liquidator, order a meeting of the creditors or of the partners, as the case may be, to be called, held and conducted in such manner as may be prescribed or as the Tribunal directs. (2) If a majority representing three-fourths in value of the creditors, or partners, as the case may be, at the meeting, agree to any compromise or arrangement, the compromise or arrangement shall, if sanctioned by the Tribunal, by order be binding on all the creditors or all the partners, as the case may be, and also on the limited liability partnership, or in the case of a limited liability partnership which is being wound up, on the liquidator and contributories of the limited liability partnership: Provided that no order sanctioning any compromise or arrangement shall be made by the Tribunal unless the Tribunal is satisfied that the limited liability partnership or any other person by whom an application has been made under sub-section (1) has disclosed to the Tribunal, by affidavit or otherwise, all material facts relating to the limited liability partnership, including the latest financial position of the limited liability partnership and the pendency of any investigation proceedings in relation to the limited liability partnership. (3) An order made by the Tribunal under sub-section (2) shall be filed by the limited liability partnership with the Registrar within thirty days after making such an order and shall have effect only after it is so filed. 2[(4) If default is made in complying with the provisions of sub-section (3), the limited liability partnership and its every designated partner shall be liable to a penalty of ten thousand rupees, and in case of continuing default, with a further penalty of one hundred rupees for each day after the first during which such default continues, subject to a maximum of one lakh rupees for limited liability partnership and fifty thousand rupees for every designated partner.] 1. Subs. by Act 31 of 2021, s. 2, for “the Companies Act, 1956 (1 of 1956)” (w.e.f. 1-4-2022). 2. Subs. by Act 31 of 2021, s. 17, for sub-section (4) (w.e.f. 1-4-2022). 23 ----- (5) The Tribunal may, at any time after an application has been made to it under this section, stay the commencement or continuation of any suit or proceeding against the limited liability partnership on such terms as the Tribunal thinks fit, until the application is finally disposed of. **61. Power of Tribunal to enforce** **compromise or arrangement.—(1) Where the Tribunal makes an** order under section 60 sanctioning a compromise or an arrangement in respect of a limited liability partnership, it— (a) shall have power to supervise the carrying out of the compromise or an arrangement; and (b) may, at the time of making such order or at any time thereafter, give such directions in regard to any matter or make such modifications in the compromise or arrangement as it may consider necessary for the proper working of the compromise or arrangement. (2) If the Tribunal aforesaid is satisfied that a compromise or an arrangement sanctioned under section 60 cannot be worked satisfactorily with or without modifications, it may, either on its own motion or on the application of any person interested in the affairs of the limited liability partnership, make an order for winding up the limited liability partnership, and such an order shall be deemed to be an order made under section 64 of this Act. **62. Provisions for facilitating reconstruction or amalgamation of limited liability** **partnerships.—(1) Where an application is made to the Tribunal under section 60 for sanctioning of a** compromise or arrangement proposed between a limited liability partnership and any such persons as are mentioned in that section, and it is shown to the Tribunal that— (a) compromise or arrangement has been proposed for the purposes of, or in connection with, a scheme for the reconstruction of any limited liability partnership or limited liability partnerships, or the amalgamation of any two or more limited liability partnerships; and (b) under the scheme the whole or any part of the undertaking, property or liabilities of any limited liability partnership concerned in the scheme (in this section referred to as a "transferor limited liability partnership") is to be transferred to another limited liability partnership (in this section referred to as the "transferee limited liability partnership"), the Tribunal may, either by the order sanctioning the compromise or arrangement or by a subsequent order, make provisions for all or any of the following matters, namely:— (i) the transfer to the transferee limited liability partnership of the whole or any part of the undertaking, property or liabilities of any transferor limited liability partnership; (ii) the continuation by or against the transferee limited liability partnership of any legal proceedings pending by or against any transferor limited liability partnership; (iii) the dissolution, without winding up, of any transferor limited liability partnership; (iv) the provision to be made for any person who, within such time and in such manner as the Tribunal directs, dissent from the compromise or arrangement; and (v) such incidental, consequential and supplemental matters as are necessary to secure that the reconstruction or amalgamation shall be fully and effectively carried out: Provided that no compromise or arrangement proposed for the purposes of, or in connection with, a scheme for the amalgamation of a limited liability partnership, which is being wound up, with any other limited liability partnership or limited liability partnerships, shall be sanctioned by the Tribunal unless the Tribunal has received a report from the Registrar that the affairs of the limited liability partnership have not been conducted in a manner prejudicial to the interests of its partners or to public interest: Provided further that no order for the dissolution of any transferor limited liability partnership under clause (iii) shall be made by the Tribunal unless the Official Liquidator has, on scrutiny of the books and papers of the limited liability partnership, made a report to the Tribunal that the affairs of the limited liability partnership have not been conducted in a manner prejudicial to the interests of its partners or to public interest. 24 ----- (2) Where an order under this section provides for the transfer of any property or liabilities, then, by virtue of the order, that property shall be transferred to and vest in, and those liabilities shall be transferred to and become the liabilities of, the transferee limited liability partnership; and in the case of any property, if the order so directs, freed from any charge which is, by virtue of the compromise or arrangement, to cease to have effect. (3) Within thirty days after the making of an order under this section, every limited liability partnership in relation to which the order is made shall cause a certified copy thereof to be filed with the Registrar for registration. 1[(4) If default is made in complying with the provisions of sub-section (3), the limited liability partnership and its every designated partner shall be liable to a penalty of ten thousand rupees, and in case of the continuing default, with a further penalty of one hundred rupees for each day, after the first during which such default continues, subject to a maximum of one lakh rupees for limited liability partnership and fifty thousand rupees for every designated partner. _Explanation.—For the purposes of this section,—_ (i) “property” includes property, rights and powers of every description and “liabilities” includes duties of every description; (ii) a “limited liability partnership” shall not be amalgamated with a company.] CHAPTER XIII WINDING UP AND DISSOLUTION **63. Winding up and dissolution.—The winding up of a limited liability partnership may be either** voluntary or by the Tribunal and limited liability partnership, so wound up may be dissolved. **64. Circumstances in which limited liability partnership may be wound up by Tribunal.—A** limited liability partnership may be wound up by the Tribunal,— (a) if the limited liability partnership decides that limited liability partnership be wound up by the Tribunal; **(b) if, for a period of more than six months, the number of partners of the limited liability** partnership is reduced below two; 2* - - - (d) if the limited liability partnership has acted against the interests of the sovereignty and integrity of India, the security of the State or public order; (e) if the limited liability partnership has made a default in filing with the Registrar the Statement of Account and Solvency or annual return for any five consecutive financial years; or (f) if the Tribunal is of the opinion that it is just and equitable that the limited liability partnership be wound up. **65. Rules for winding up and dissolution.—The Central Government may make rules for the** provisions in relation to winding up and dissolution of limited liability partnerships. CHAPTER XIV MISCELLANEOUS **66. Business transactions of partner with limited liability partnership.—A partner may lend** money to and transact other business with the limited liability partnership and has the same rights and obligations with respect to the loan or other transactions as a person who is not a partner. 1. Subs. by Act 31 of 2021, s. 18, for sub-section (4) (w.e.f. 1-4-2022). 2. Clause (c) Omitted by Act 31 of 2016, s. 254 and the tenth Schedule (w.e.f. 15-11-2016). 25 ----- **67. Application of the provisions of the Companies Act.—(1) The Central Government may, by** notification* in the Official Gazette, direct that any of the provisions of [1][the Companies Act, 2013 (18 of 2013)] specified in the notification— (a) shall apply to any limited liability partnership; or (b) shall apply to any limited liability partnership with such exception, modification and adaptation, as may be specified, in the notification. (2) A copy of every notification proposed to be issued under sub-section (1) shall be laid in draft before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in disapproving the issue of the notification or both Houses agree in making any modification in the notification, the notification shall not be issued or, as the case may be, shall be issued only in such modified form as may be agreed upon by both the Houses. 2[67A. **Establishment of Special Courts.—(1) The Central Government may, for the purpose of** providing speedy trial of offences under this Act, by notification, establish or designate as many Special Courts as may be necessary for such area or areas, as may be specified in the notification. (2) The Special Court shall consist of— (a) a single Judge holding office as Sessions Judge or Additional Sessions Judge, in case of offences punishable under this Act with imprisonment of three years or more; and (b) a Metropolitan Magistrate or a Judicial Magistrate of the first class, in the case of other offences, who shall be appointed by the Central Government with the concurrence of the Chief Justice of the High Court: Provided that until Special Courts are designated or established under sub-section (1), the Courts designated as Special Courts in terms of section 435 of the Companies Act, 2013 (18 of 2013) shall be deemed to be Special Courts for the purpose of trial of offences punishable under this Act: Provided further that notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), any offence committed under this Act, which is triable by a Special Court shall, until a Special Court is established under this Act or the Companies Act, 2013 (18 of 2013), be tried by a Court of Sessions or the Court of Metropolitan Magistrate or a Judicial Magistrate of the first class, as the case may be, exercising jurisdiction over the area. **67B.** **Procedure and powers of Special Court.—(1) Notwithstanding anything contained in the** Code of Criminal Procedure, 1973 (2 of 1974), all offences specified under sub-section (1) of section 67A shall be triable only by the Special Court established or designated for the area in which the registered office of the limited liability partnership is situated in relation to which the offence is committed or where there are more than one Special Courts for such area, by such one of them as may be specified in this behalf by the High Court concerned. (2) While trying an offence under this Act, a Special Court may also try an offence other than an offence under this Act with which the accused may, under the Code of Criminal Procedure, 1973 (2 of 1974) be charged at the same trial. 1. Subs. by Act 31 of 2021, s. 2, for “the Companies Act, 1956 (1 of 1956)” (w.e.f. 1-4-2022). 2. Ins. by s. 19, ibid., (w.e.f. 1-4-2022). ***** _Vide Notification No. G.S.R. 59(E), dated 30th January, 2020, Central Government hereby directs that the provisions of_ section 460 of the Company Act, 2013 (18 of 2013), shall apply to a limited partnership from 30th January, 2020. 26 ----- (3) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), the Special Court may, if it thinks fit, try in a summary way any offence under this Act which is punishable with imprisonment for a term not exceeding three years: Provided that in the case of any conviction in a summary trial, no sentence of imprisonment for a term exceeding one year shall be passed: Provided further that, when at the commencement of or in the course of a summary trial, it appears to the Special Court that the nature of the case is such that the sentence of imprisonment for a term exceeding one year may have to be passed or that it is, for any other reason, undesirable to try the case summarily, the Special Court shall, after hearing the parties, record an order to that effect and thereafter recall any witnesses who may have been examined and proceed to hear or re-hear the case in accordance with the procedure for the regular trial. **67C. Appeal and revision.—** The High Court may exercise, so far as may be applicable, all the powers conferred by Chapters XXIX and XXX of the Code of Criminal Procedure, 1973 (2 of 1974) on a High Court, as if a Special Court within the local limits of the jurisdiction of the High Court were a Court of Sessions trying cases within the local limits of the jurisdiction of the High Court.] **68. Electronic filing of documents.—(1) Any document required to be filed, recorded or registered** under this Act may be filed, recorded or registered in such manner and subject to such conditions as may be prescribed. (2) A copy of or an extract from any document electronically filed with or submitted to the Registrar which is supplied or issued by the Registrar and certified through affixing digital signature as per the Information Technology Act, 2000 (21 of 2000) to be a true copy of or extract from such document shall, in any proceedings, be admissible in evidence as of equal validity with the original document. (3) Any information supplied by the Registrar that is certified by the Registrar through affixing digital signature to be a true extract from any document filed with or submitted to the Registrar shall, in any proceedings, be admissible in evidence and be presumed, unless evidence to the contrary is adduced, to be a true extract from such document. 1[68A. Registration offices.—(1) For the purpose of exercising such powers and discharging such functions as are conferred on the Central Government by or under this Act or under rules made thereunder and for the purpose of registration of limited liability partnerships under this Act, the Central Government shall, by notification, establish such number of registration offices at such places as it thinks fit, specifying their jurisdiction. (2) The Central Government may appoint such Registrars, Additional Registrars, Joint Registrars, Deputy Registrars and Assistant Registrars as it considers necessary, for the registration of limited liability partnerships and discharge of various functions under this Act. (3) The powers and duties of the Registrars referred to in sub-section (2) and the terms and conditions of their service shall be such as may be prescribed. (4) The Central Government may direct the Registrar to prepare a seal or seals for the authentication of documents required for, or connected with the registration of limited liability partnerships.] **2[69. Payment of additional fee.—Any document or return required to be registered or filed under** this Act with Registrar, if, is not registered or filed in time provided therein, may be registered or filed after that time, on payment of such additional fee as may be prescribed in addition to any fee as is payable for filing of such document or return: Provided that such document or return shall be filed after the due date of filing, without prejudice to any other action or liability under this Act: 1. Ins. by Act 31 of 2021, s. 20 (w.e.f. 1-4-2022). 2. Subs. by s. 21, ibid., for section 69 (w.e.f. 1-4-2022). 27 ----- Provided further that a different fee or additional fee may be prescribed for different classes of limited liability partnerships or for different documents or returns required to be filed under this Act or rules made thereunder.] **70. Enhanced punishment.—In case a limited liability partnership or any partner or designated** partner of such limited liability partnership commits any offence, the limited liability partnership or any partner or designated partner shall, for the second or subsequent offence, be punishable with imprisonment as provided, but in case of offences for which fine is prescribed either along with or exclusive of imprisonment, with fine which shall be twice the amount of fine for such offence. **71. Application of other laws not barred.—The provisions of this Act shall be in addition to, and** not in derogation of, the provisions of any other law for the time being in force. **72. Jurisdiction of Tribunal and Appellate Tribunal.—(1) The Tribunal shall exercise such powers** and perform such functions as are, or may be, conferred on it by or under this Act or any other law for the time being in force. 1[(2) Any person aggrieved by an order of Tribunal may prefer an appeal to the Appellate Tribunal: Provided that no appeal shall lie to the Appellate Tribunal from an order made by the Tribunal with the consent of parties. (3) Every appeal preferred under sub-section (2) shall be filed within a period of sixty days from the date on which the copy of the order of the Tribunal is made available to the person aggrieved and shall be in such form, and accompanied by such fees, as may be prescribed: Provided that the Appellate Tribunal may entertain an appeal after the expiry of the said period of sixty days, but within a further period of not exceeding sixty days, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within the period so specified. (4) On the receipt of an appeal under sub-section (2), the Appellate Tribunal shall, after giving the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or setting aside the order appealed against. (5) The Appellate Tribunal shall send a copy of every order made by it to the Tribunal and the parties to the appeal.] **73.[Penalty on non-compliance of any order passed by Tribunal.]** _Omitted by the Limited Liability_ _Partnership (Amendment) Act, 2021 (31 of 2021), s. 23_ (w.e.f. 1-4-2022). 2[74. General penalties.— If a limited liability partnership or any partner or any designated partner or any other person contravenes any of the provisions of this Act or the rules made thereunder, or any condition, limitation or restriction subject to which any approval, sanction, consent, confirmation, recognition, direction or exemption in relation to any matter has been accorded, given or granted, and for which no penalty or punishment is provided elsewhere in this Act, the limited liability partnership or any partner or any designated partner or any other person, who is in the default, shall be liable to a penalty of five thousand rupees and in case of a continuing contravention with a further penalty of one hundred rupees for each day after the first during which such contravention continues, subject to a maximum of one lakh rupees.] **75. Power of Registrar to strike defunct limited liability partnership off register.—Where the** Registrar has reasonable cause to believe that a limited liability partnership is not carrying on business or its operation, in accordance with the provisions of this Act, the name of limited liability partnership may be struck off the register of limited liability partnerships in such manner as may be prescribed: Provided that the Registrar shall, before striking off the name of any limited liability partnership under this section, give such limited liability partnership a reasonable opportunity of being heard. **76. Offences to limited liability partnerships.—Where an offence under this Act committed by a** limited liability partnership is proved— 1. Subs. by Act 31 of 2021, s. 22, for sub-section (2) (w.e.f. 1-4-2022). 2. Subs. by s. 24, ibid., for section 74 (w.e.f. 1-4-2022). 28 ----- (a) to have been committed with the consent or connivance of a partner or partners or designated partner or designated partners of the limited liability partnership; or (b) to be attributable to any neglect on the part of the partner or partners or designated partner or designated partners of that limited liability partnership, the partner or partners or designated partner or designated partners of the limited liability partnership, as the case may be, as well as that limited liability partnership shall be guilty of the offence and shall be liable to be proceeded against and punished accordingly. 1[76A. Adjudication of penalties.— (1) For the purposes of adjudging penalties under this Act, the Central Government may, by an order published in the Official Gazette, appoint as many officers of the Central Government, not below the rank of Registrar, as adjudicating officers in such manner as may be prescribed. (2) The Central Government shall, while appointing adjudicating officers, specify their jurisdiction in the order under sub-section (1). (3) The adjudicating officer may, by an order- (a) impose the penalty on the limited liability partnership or its partners or designated partners or any other person, as the case may be, stating therein any non-compliance or default under the relevant provisions of this Act: Provided that in case default relates to non-compliance of sub-section (3) of section 34 or sub section (1) of section 35 and such default has been rectified either prior to or within thirty days of the issue of the notice by the adjudicating officer, no penalty shall be imposed in this regard and proceedings under this section in respect of such default shall be deemed to be concluded: Provided further that notwithstanding anything contained in this Act, if penalty is payable for non-compliance of any of the provisions of this Act by a small limited liability partnership or a startup limited liability partnership or by its partner or designated partner or any other person in respect of such limited liability partnership, then such limited liability partnership or its partner or designated partner or any other person, shall be liable to a penalty which shall be one-half of the penalty specified in such provisions subject to a maximum of one lakh rupees for limited liability partnership and fifty thousand rupees for every partner or designated partner or any other person, as the case may be. _Explanation.--For the purposes of this proviso, the expression “start-up limited liability_ partnership” means a limited liability partnership incorporated under this Act and recognised as such in accordance with the notifications issued by the Central Government from time to time. (b) direct such limited liability partnership or its partner or designated partner or any other person, as the case may be, to rectify the default, wherever he considers fit for reasons to be recorded in writing. (4) The adjudicating officer shall, before imposing any penalty, give an opportunity of being heard to such limited liability partnership or its partner or designated partner or any other person, who is in default. (5) Any person aggrieved by an order made by the adjudicating officer under sub-section (3) may prefer an appeal to the Regional Director having jurisdiction in the matter. (6) Every appeal made under sub-section (5) shall be filed within a period of sixty days from the date on which the copy of the order made by the adjudicating officer is received by the aggrieved person and shall be in such form, manner and accompanied by such fees as may be prescribed: Provided that the Regional Director may, for the reasons to be recorded in writing, extend the period of filing an appeal, under this sub-section, by not more than thirty days. (7) The Regional Director may, after giving an opportunity of being heard to the parties to the appeal, pass such order as he thinks fit, confirming, modifying or setting aside the order appealed against. 1. Ins by Act 31 of 2021, s. 25 (w.e.f. 1-4-2022). 29 ----- (8) Where a limited liability partnership fails to comply with the order made under sub-section (3) or sub-section (7), as the case may be, within a period of ninety days from the date of receipt of the copy of the order, such limited liability partnership shall be punishable with fine which shall not be less than twenty-five thousand rupees, but may extend to five lakh rupees. (9) Where a partner or designated partner of a limited liability partnership or any other person who is in default fails to comply with an order made under sub-section (3) or sub-section (7), as the case may be, within a period of ninety days from the date of receipt of the copy of the order, such partner or designated partner or any other person shall be punishable with imprisonment which may extend to six months or with fine which shall not be less than twenty-five thousand rupees but may extend to one lakh rupees, or with both.] **1[77. Jurisdiction of Court.— Subject to the provisions contained in section 67A and section 67B,** on and from the date of establishment or designation of Special Courts under this Act,- (i) the Special Court referred to in clause (a) of sub-section (2) of section 67A shall have jurisdiction and power to impose punishment under section 30 of the Act; and (ii) the criminal cases against the limited liability partnership or its partners or designated partners or any other person in default filed under this Act and pending before the court of Judicial Magistrate of the first class or Metropolitan Magistrate, as the case may be, shall be transferred to the Special Court referred to in clause (b) of sub-section (2) of section 67A. **77A. Cognizance of offences.— No court, other than the Special Courts referred to in section 67A,** shall take cognizance of any offence punishable under this Act or the rules made thereunder save on a complaint in writing made by the Registrar or by any officer not below the rank of Registrar duly authorised by the Central Government for this purpose.] **78. Power to alter Schedules.—(1) The Central Government may, by notification in the Official** Gazette, alter any of the provisions contained in any of the Schedules to this Act. (2) Any alteration notified under sub-section (1) shall have effect as if enacted in the Act and shall come into force on the date of the notification, unless the notification otherwise directs. (3) Every alteration made by the Central Government under sub-section (1) shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the alteration, or both Houses agree that the alteration should not be made, the alteration shall, thereafter, have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done in pursuance of that alteration. **79. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules for carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— 2[(a) the contribution of such higher amount under sub-clauses (i) and (ii) of clause (ta) of section 2; (aa) the terms and conditions to be fulfilled by class or classes of limited liability partnerships under long line to clause (ta) of section 2; (ab) the form and manner of prior consent to be given by designated partner under sub-section (3) of section 7;] 1.Subs. by Act 31of 2021, s. 26, for section 77 (w.e.f. 1-4-2022). 2. Subs. by s. 27, ibid., for clause (a) (w.e.f. 1-4-2022). 30 ----- (b) the form and manner of particulars of every individual agreeing to act as designated partner of limited liability partnership under sub-section (4) of section 7; (c) the conditions and requirements relating to the eligibility of an individual to become a designated partner under sub-section (5) of section 7; (d) the manner of filing the incorporation document and payment of fees payable thereof under clause (b) of sub-section (1) of section 11; (e) the form of statement to be filed under clause (c) of sub-section (1) of section 11; (f) the form of incorporation document under clause (a) of sub-section (2) of section 11; (g) the information to be contained in the incorporation document concerning the proposed limited liability partnership under clause (g) of sub-section (2) of section 11; (h) the manner of serving the documents on a limited liability partnership or a partner or a designated partner and the form and manner in which any other address may be declared by the limited liability partnership under sub-section (2) of section 13; (i) the form and manner of notice to the Registrar and the conditions in respect of change of registered office under sub-section (3) of section 13; (j) the form and manner of application and amount of fee payable to the Registrar under sub-section (1) of section 16; (k) the manner in which names will be reserved by the Registrar under sub-section (2) of section 16; 1[(ka) the manner of allotting a new name to the limited liability partnership under sub-section (3) of section 17;] (l) the manner in which an application may be made by an entity under sub-section (1) of section 18; (m) the form and manner of notice of change of name of limited liability partnership and the amount of fee payable under section 19; (n) the form and manner of the limited liability partnership agreement and the changes made therein and the amount of fee payable under sub-section (2) of section 23; (o) the form of notice, the amount of fee payable and the manner of authentication of the statement under clauses (a), (b) and (c) of sub-section (3) of section 25; (p) the manner of accounting and disclosure of monetary value of contribution of a partner under sub-section (2) of section 32; (q) the books of account and the period of their maintenance under sub-section (1) of section 34; (r) the form of Statement of Account and Solvency under sub-section (2) of section 34; (s) the form, manner, fee and time of filing of Statement of Account and Solvency under sub-section (3) of section 34; (t) the audit of accounts of a limited liability partnership under sub-section (4) of section 34; 1[(ta) the standards of accounting and auditing under section 34A;] (u) the form and manner of annual return and fee payable under sub-section (1) of section 35; (v) the manner and amount of fee payable for inspection of incorporation document, names of partners and changes made therein, Statement of Account and Solvency and annual return under section 36; 1. Ins. by Act 31 of 2021, s. 27 (w.e.f. 1-4-2022) . 31 ----- (w) the destruction of documents by Registrar in any form under section 40; (x) the amount required as security under clause (a) of sub-section (3) of section 43; (y) the amount of security to be given under section 44; (z) the fee payable for furnishing a copy under clause (b) of sub-section (2) of section 49; (za) the manner of authentication of report of inspector under section 54; (zb) the form and manner of particulars about conversion under the proviso to sub-section (1) of section 58; (zc) in relation to establishment of place of business and carrying on business in India by foreign limited liability partnerships and regulatory mechanism and composition under section 59; (zd) the manner of calling, holding and conducting meeting under sub-section (1) of section 60; (ze) in relation to winding up and dissolution of limited liability partnerships under section 65; (zf) the manner and conditions for filing document electronically under sub-section (1) of section 68; 1[(zfa) the powers and duties to be discharged by the Registrars and the terms and conditions of their service under sub-section (3) of section 68A; (zfb) the payment of additional fee for filing of document or return and the payment of different fee or additional fee under section 69; (zfc) the form and fee for filing of appeal under sub-section (3) of section 72;] (zg) the manner for striking off the names of limited liability partnerships from the register under section 75; 1[(zga) the manner of appointing adjudicating officers for adjudging penalty under sub-section (1) of section 76A; (zgb) the form, manner and fee for filing an appeal against the order made by the adjudicating officer under sub-section (6) of section 76A;] (zh) the form and manner of statement containing particulars and amount of fee payable under sub-paragraph (a) of paragraph 4 of the Second Schedule; (zi) the form and manner of particulars about conversion under the proviso to paragraph 5 of the Second Schedule; (zj) the form and manner of the statement and the amount of fee payable under sub-paragraph (a) of paragraph 3 of the Third Schedule; (zk) the form and manner of particulars about conversion under the proviso to paragraph 4 of the Third Schedule; (zl) the form and manner of the statement and amount of fee payable under sub-paragraph (a) of paragraph 4 of the Fourth Schedule; [2]*** (zm) the form and manner of particulars about conversion under the proviso to paragraph 5 of the Fourth Schedule. 1[(zn) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be made by rules.] (3) Every rule made under this Act by the Central Government shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the 1. Ins. by Act 31 of 2021, s. 27. (w.e.f. 1-4-2022) 2. The word “and” omitted by s. 27, ibid., (w.e.f 1-4-2022). 32 ----- session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule, or both Houses agree that the rule should not be made, the rule shall, thereafter, have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **80. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act as may appear to it to be necessary for removing the difficulty: Provided that no such order shall be made under this section after the expiry of a period of two years from the commencement of this Act. 1[(1A) Notwithstanding anything contained in sub-section (1), if any difficulty arises in giving effect to the provisions of this Act as amended by the Limited Liability Partnership (Amendment) Act, 2021, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act, as may appear to it to be necessary for removing the difficulty: Provided that no such order shall be made under this section after the expiry of a period of three years from the date of commencement of the Limited Liability Partnership (Amendment) Act, 2021.] (2) Every order made under this section shall be laid, as soon as may be, after it is made, before each House of Parliament. **81. [Transitional provisions.]** _Omitted by the Limited Liability Partnership (Amendment)_ _Act, 2021 (31 of_ 2021), s. 29 (w.e.f. 1-4-2022)]. 1. Ins. by Act 31 of 2021, s. 28(w.e.f. 1-4-2022). 33 ----- THE FIRST SCHEDULE [See section 23(4)] PROVISIONS REGARDING MATTERS RELATING TO MUTUAL RIGHTS AND DUTIES OF PARTNERS AND LIMITED LIABILITY PARTNERSHIP AND ITS PARTNERS APPLICABLE IN THE ABSENCE OF ANY AGREEMENT ON SUCH MATTERS 1. The mutual rights and duties of the partners and the mutual rights and duties of the limited liability partnership and its partners shall be determined, subject to the terms of any limited liability partnership agreement or in the absence of any such agreement on any matter, by the provisions in this Schedule. 2. All the partners of a limited liability partnership are entitled to share equally in the capital, profits and losses of the limited liability partnership. 3. The limited liability partnership shall indemnify each partner in respect of payments made and personal liabilities incurred by him— (a) in the ordinary and proper conduct of the business of the limited liability partnership; or (b) in or about anything necessarily done for the preservation of the business or property of the limited liability partnership. 4. Every partner shall indemnify the limited liability partnership for any loss caused to it by his fraud in the conduct of the business of the limited liability partnership. 5. Every partner may take part in the management of the limited liability partnership. 6. No partner shall be entitled to remuneration for acting in the business or management of the limited liability partnership. 7. No person may be introduced as a partner without the consent of all the existing partners. 8. Any matter or issue relating to the limited liability partnership shall be decided by a resolution passed by a majority in number of the partners, and for this purpose, each partner shall have one vote. However, no change may be made in the nature of business of the limited liability partnership without the consent of all the partners. 9. Every limited liability partnership shall ensure that decisions taken by it are recorded in the minutes within thirty days of taking such decisions and are kept and maintained at the registered office of the limited liability partnership. 10. Each partner shall render true accounts and full information of all things affecting the limited liability partnership to any partner or his legal representatives. 11. If a partner, without the consent of the limited liability partnership, carries on any business of the same nature as and competing with the limited liability partnership, he must account for and pay over to the limited liability partnership all profits made by him in that business. 12. Every partner shall account to the limited liability partnership for any benefit derived by him without the consent of the limited liability partnership from any transaction concerning the limited liability partnership, or from any use by him of the property, name or any business connection of the limited liability partnership. 13. No majority of the partners can expel any partner unless a power to do so has been conferred by express agreement between the partners. 14. All disputes between the partners arising out of the limited liability partnership agreement which cannot be resolved in terms of such agreement shall be referred for arbitration as per the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996). 34 ----- THE SECOND SCHEDULE (See section 55) CONVERSION FROM FIRM INTO LIMITED LIABILITY PARTNERSHIP **1. Interpretation.—In this Schedule, unless the context otherwise requires,—** (a) "firm" means a firm as defined in section 4 of the Indian Partnership Act, 1932 (9 of 1932); (b) "convert", in relation to a firm converting into a limited liability partnership, means a transfer of the property, assets, interests, rights, privileges, liabilities, obligations and the undertaking of the firm to the limited liability partnership in accordance with this Schedule. **2. Conversion from firm into limited liability partnership.—(1) A firm may convert into a limited** liability partnership by complying with the requirements as to the conversion set out in this Schedule. (2) Upon such conversion, the partners of the firm shall be bound by the provisions of this Schedule that are applicable to them. **3. Eligibility for conversion.—A firm may apply to convert into a limited liability partnership in** accordance with this Schedule if and only if the partners of the limited liability partnership into which the firm is to be converted, comprise, all the partners of the firm and no one else. **4. Statements to be filed.—A firm may apply to convert into a limited liability partnership by filing** with the Registrar— (a) a statement by all of its partners in such form and manner and accompanied by such fee as the Central Government may prescribe, containing the following particulars, namely:— (i) the name and registration number, if applicable, of the firm; and (ii) the date on which the firm was registered under the Indian Partnership Act, 1932 (9 of 1932) or under any other law, if applicable, and (b) incorporation document and statement referred to in section 11. **5. Registration of conversion.—On receiving the documents referred to in paragraph 4, the Registrar** shall subject to the provisions of this Act, register the documents and issue a certificate of registration in such form as the Registrar may determine stating that the limited liability partnership is, on and from the date specified in the certificate, registered under this Act: Provided that the limited liability partnership shall, within fifteen days of the date of registration, inform, the concerned Registrar of Firms with which it was registered under the provisions of the Indian Partnership Act, 1932 (9 of 1932) about the conversion and of the particulars of the limited liability partnership in such form and manner as the Central Government may prescribe. **6. Registrar may refuse to register.—(1) Nothing in this Schedule shall be construed as to require** the Registrar to register any limited liability partnership if he is not satisfied with the particulars or other information furnished under the provisions of this Act: Provided that an appeal may be made before the Tribunal in case of refusal of registration by the Registrar. (2) The Registrar may, in any particular case, require the documents referred to in paragraph 4 to be verified in such manner, as he considers fit. **7. Effect of registration.—On and from the date of registration specified in the certificate of** registration issued under paragraph 5,— (a) there shall be a limited liability partnership by the name specified in the certificate of registration registered under this Act; (b) all tangible (movable and immovable) property as well as intangible property vested in the firm, all assets, interests, rights, privileges, liabilities, obligations relating to the firm and the whole of 35 ----- the undertaking of the firm shall be transferred to and shall vest in the limited liability partnership without further assurance, act or deed; and (c) the firm shall be deemed to be dissolved and if earlier registered under the Indian Partnership Act, 1932 (9 of 1932) removed from the records maintained under that Act. **8. Registration in relation to property.—If any property to which sub-paragraph (b) of paragraph 7** applies is registered with any authority, the limited liability partnership shall, as soon as practicable after the date of registration, take all necessary steps as required by the relevant authority to notify the authority of the conversion and of the particulars of the limited liability partnership in such medium and form as the authority may specify. **9. Pending proceedings.—All proceedings by or against the firm which are pending in any Court or** Tribunal or before any authority on the date of registration may be continued, completed and enforced by or against the limited liability partnership. **10. Continuance of conviction, ruling, order or judgment.—Any conviction, ruling, order or** judgment of any Court, Tribunal or other authority in favour of or against the firm may be enforced by or against the limited liability partnership. **11. Existing agreements.—Every agreement to which the firm was a party immediately before the** date of registration, whether or not of such nature that the rights and liabilities thereunder could be assigned, shall have effect as from that date as if— (a) the limited liability partnership were a party to such an agreement instead of the firm; and (b) for any reference to the firm, there were substituted in respect of anything to be done on or after the date of registration a reference to the limited liability partnership. **12. Existing contracts, etc.—All deeds, contracts, schemes, bonds, agreements, applications,** instruments and arrangements subsisting immediately before the date of registration relating to the firm or to which the firm is a party, shall continue in force on and after that date as if they relate to the limited liability partnership and shall be enforceable by or against the limited liability partnership as if the limited liability partnership were named therein or were a party thereto instead of the firm. **13. Continuance of employment.—Every contract of employment to which paragraph 11 or** paragraph 12 applies shall continue to be in force on or after the date of registration as if the limited liability partnership were the employer thereunder instead of the firm. **14. Existing appointment, authority or power.—(1) Every appointment of the firm in any role or** capacity which is in force immediately before the date of registration shall take effect and operate from that date as if the limited liability partnership were appointed. (2) Any authority or power conferred on the firm which is in force immediately before the date of registration shall take effect and operate from that date as if it were conferred on the limited liability partnership. **15. Application of paragraphs 7 to 14.—The provisions of paragraphs 7 to 14 (both inclusive) shall** apply to any approval, permit or licence issued to the firm under any other Act which is in force immediately before the date of registration of the limited liability partnership, subject to the provisions of such other Act under which such approval, permit or licence has been issued. **16. Partner liable for liabilities and obligations of firm before conversion.—(1) Notwithstanding** anything in paragraphs 7 to 14 (both inclusive), every partner of a firm that has converted into a limited liability partnership shall continue to be personally liable (jointly and severally with the limited liability partnership) for the liabilities and obligations of the firm which were incurred prior to the conversion or which arose from any contract entered into prior to the conversion. (2) If any such partner discharges any liability or obligation referred to in sub-paragraph (1), he shall be entitled (subject to any agreement with the limited liability partnership to the contrary) to be fully indemnified by the limited liability partnership in respect of such liability or obligation. 36 ----- **17. Notice of conversion in correspondence.— (1) The limited liability partnership shall ensure that** for a period of twelve months commencing not later than fourteen days after the date of registration, every official correspondence of the limited liability partnership bears the following: (a) a statement that it was, as from the date of registration, converted from a firm into a limited liability partnership; and (b) the name and registration number, if applicable, of the firm from which it was converted. (2) Any limited liability partnership which contravenes the provisions of sub-paragraph (1) shall be punishable with fine which shall not be less than ten thousand rupees but which may extend to one lakh rupees and with a further fine which shall not be less than fifty rupees but which may extend to five hundred rupees for every day after the first day after which the default continues. 37 ----- THE THIRD SCHEDULE (See section 56) CONVERSION FROM PRIVATE COMPANY INTO LIMITED LIABILITY PARTNERSHIP **1. Interpretation.—In this Schedule, unless the context otherwise requires,—** (a) "company" means a private company as defined in clause (iii) of sub-section (1) of section 3 of [1][the Companies Act, 2013(18 of 2013)]; (b) "convert", in relation to a private company converting into a limited liability partnership, means a transfer of the property, assets, interests, rights, privileges, liabilities, obligations and the undertaking of the private company to the limited liability partnership in accordance with this Schedule. **2. Eligibility for conversion of private companies into limited liability partnership.—(1) A** company may convert into a limited liability partnership by complying with the requirements as to the conversion set out in this Schedule. (2) A company may apply to convert into a limited liability partnership in accordance with this Schedule if and only if— (a) there is no security interest in its assets subsisting or in force at the time of application; and (b) the partners of the limited liability partnership to which it converts comprise all the shareholders of the company and no one else. (3) Upon such conversion, the company, its shareholders, the limited liability partnership into which the company has converted and the partners of that limited liability partnership shall be bound by the provisions of this Schedule that are applicable to them. **3. Statements to be filed.—A company may apply to convert into a limited liability partnership by** filing with the Registrar— (a) a statement by all its shareholders in such form and manner to be accompanied by such fees as the Central Government may prescribe, containing the following particulars, namely:— (i) the name and registration number of the company; (ii) the date on which the company was incorporated; and (b) incorporation document and statement referred to in section 11. **4. Registration of conversion.—On receiving the documents referred to in paragraph 3, the Registrar** shall, subject to the provisions of this Act and the rules made thereunder, register the documents and issue a certificate of registration in such form as the Registrar may determine stating that the limited liability partnership is, on and from the date specified in the certificate, registered under this Act: Provided that the limited liability partnership shall, within fifteen days of the date of registration, inform the concerned Registrar of Companies with which it was registered under the provisions of [1][the Companies Act, 2013 (18 of 2013)] about the conversion and of the particulars of the limited liability partnership in such form and manner as the Central Government may prescribe. **5. Registrar may refuse to register.—(1) Nothing in this Schedule shall be construed as to require** the Registrar to register any limited liability partnership if he is not satisfied with the particulars or other information furnished under the provisions of this Act: Provided that an appeal may be made before the Tribunal in case of refusal of registration by the Registrar. (2) The Registrar may, in any particular case, require the documents referred to in paragraph 3 to be verified in such manner, as he considers fit. 1. Subs. by Act 31 of 2021, s. 2 for “the Companies Act, 1956 (1 of 1956)” (w.e.f. 1-4-2022). 38 ----- **6. Effect of registration.—On and from the date of registration specified in the certificate of** registration issued under paragraph 4— (a) there shall be a limited liability partnership by the name specified in the certificate of registration registered under this Act; (b) all tangible (movable or immovable) and intangible property vested in the company, all assets, interests, rights, privileges, liabilities, obligations relating to the company and the whole of the undertaking of the company shall be transferred to and shall vest in the limited liability partnership without further assurance, act or deed; and (c) the company shall be deemed to be dissolved and removed from the records of the Registrar of Companies. **7. Registration in relation to property.—If any property to which clause (b) of paragraph 6 applies** is registered with any authority, the limited liability partnership shall, as soon as practicable, after the date of registration, take all necessary steps as required by the relevant authority to notify the authority of the conversion and of the particulars of the limited liability partnership in such form and manner as the authority may determine. **8. Pending proceedings.—All proceedings by or against the company which are pending before any** Court, Tribunal or other authority on the date of registration may be continued, completed and enforced by or against the limited liability partnership. **9. Continuance of conviction, ruling, order or judgment.—Any conviction, ruling, order or** judgment of any Court, Tribunal or other authority in favour of or against the company may be enforced by or against the limited liability partnership. **10.Existing agreements.—Every agreement to which the company was a party immediately before** the date of registration, whether or not of such nature that the rights and liabilities thereunder could be assigned, shall have effect as from that date as if— (a) the limited liability partnership were a party to such an agreement instead of the company; and (b) for any reference to the company, there were substituted in respect of anything to be done on or after the date of registration a reference to the limited liability partnership. **11. Existing contracts, etc.—All deeds, contracts, schemes, bonds, agreements, applications,** instruments and arrangements subsisting immediately before the date of registration relating to the company or to which the company is a party shall continue in force on and after that date as if they relate to the limited liability partnership and shall be enforceable by or against the limited liability partnership as if the limited liability partnership were named therein or were a party thereto instead of the company. **12. Continuance of employment.—Every contract of employment to which paragraph 10 or** paragraph 11 applies shall continue in force on or after the date of registration as if the limited liability partnership were the employer thereunder instead of the company. **13. Existing appointment, authority or power.—(1) Every appointment of the company in any role** or capacity which is in force immediately before the date of registration shall take effect and operate from that date as if the limited liability partnership were appointed. (2) Any authority or power conferred on the company which is in force immediately before the date of registration shall take effect and operate from that date as if it were conferred on the limited liability partnership. **14. Application of paragraphs 6 to 13.—The provisions of paragraphs 6 to 13 (both inclusive) shall** apply to any approval, permit or licence issued to the company under any other Act which is in force immediately before the date of registration of the limited liability partnership, subject to the provisions of such other Act under which such approval, permit or licence has been issued. 39 ----- **15. Notice of conversion in correspondence.—(1) The limited liability partnership shall ensure that** for a period of twelve months commencing not later than fourteen days after the date of registration, every official correspondence of the limited liability partnership bears the following, namely:— (a) a statement that it was, as from the date of registration, converted from a company into a limited liability partnership; and (b) the name and registration number of the company from which it was converted. (2) Any limited liability partnership which contravenes the provisions of sub-paragraph (1) shall be punishable with fine which shall not be less than ten thousand rupees but which may extend to one lakh rupees and with a further fine which shall not be less than fifty rupees but which may extend to five hundred rupees for every day after the first day after which the default continues. 40 ----- THE FOURTH SCHEDULE (See section 57) CONVERSION FROM UNLISTED PUBLIC COMPANY INTO LIMITED LIABILITY PARTNERSHIP **1. Interpretation.— (1) In this Schedule, unless the context otherwise requires,—** (a) "company" means an unlisted public company; (b) "convert", in relation to a company converting into a limited liability partnership, means a transfer of the property, assets, interests, rights, privileges, liabilities, obligations and the undertaking of the company to the limited liability partnership in accordance with the provisions of this Schedule; (c) "listed company" means a listed company as defined in the Securities Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000 issued by the Securities and Exchange Board of India under section 11 of the Securities and Exchange Board of India Act, 1992 (15 of 1992); (d) "unlisted public company" means a company which is not a listed company. **2. Conversion of company into a limited liability partnership.—(1) A company may convert into a** limited liability partnership by complying with the requirements as to the conversion set out in this Schedule. (2) Upon such conversion, the company, its shareholders, the limited liability partnership into which the company has converted and the partners of that limited liability partnership shall be bound by the provisions of this Schedule that are applicable to them. **3. Eligibility for conversion.—A company may apply to convert into a limited liability partnership** in accordance with the provisions of this Schedule if and only if— (a) there is no security interest in its assets subsisting or in force at the time of application; and (b) the partners of the limited liability partnership to which it converts comprise all the shareholders of the company and no one else. **4. Statements to be filed.—A company may apply to convert into a limited liability partnership by** filing with the Registrar— (a) a statement by all its shareholders in such form and manner to be accompanied by such fee as the Central Government may prescribe containing the following particulars, namely:— (i) the name and registration number of the company; (ii) the date on which the company was incorporated; and (b) incorporation document and statement referred to in section 11. **5. Registration of conversion.—On receiving the documents referred to in paragraph 4, the Registrar** shall, subject to the provisions of this Act, and the rules made thereunder, register the documents and issue a certificate of registration in such form as the Registrar may determine stating that the limited liability partnership is, on and from the date specified in the certificate, registered under this Act: Provided that the limited liability partnership shall, within fifteen days of the date of registration, inform the concerned Registrar of Companies with which it was registered under the provisions of [1][the Companies Act, 2013 (18 of 2013)] about the conversion and of the particulars of the limited liability partnership in such form and manner as the Central Government may prescribe. **6. Registrar may refuse to register.—(1) Nothing in this Schedule shall be construed as to require** the Registrar to register any limited liability partnership if he is not satisfied with the particulars or other information furnished under the provisions of this Act: 1. Subs. by Act 31 of 2021, s. 2 for “the Companies Act, 1956 (1 of 1956)” (w.e.f. 1-4-2022). 41 ----- Provided that an appeal may be made before the Tribunal in case of refusal of registration by the Registrar. (2) The Registrar may, in any particular case, require the documents referred to in paragraph 4 to be verified in such manner, as he considers fit. **7. Effect of registration.—On and from the date of registration specified in the certificate of** registration issued under paragraph 5— (a) there shall be a limited liability partnership by the name specified in the certificate of registration registered under this Act; (b) all tangible (movable or immovable) and intangible property vested in the company, all assets, interests, rights, privileges, liabilities, obligations relating to the company and the whole of the undertaking of the company shall be transferred to and shall vest in the limited liability partnership without further assurance, act or deed; and (c) the company shall be deemed to be dissolved and removed from the records of the Registrar of Companies. **8. Registration in relation to property.—If any property to which clause (b) of paragraph 7 applies** is registered with any authority, the limited liability partnership shall, as soon as practicable, after the date of registration, take all necessary steps as required by the relevant authority to notify the authority of the conversion and of the particulars of the limited liability partnership in such form and manner as the authority may determine. **9. Pending proceedings.—All proceedings by or against the company which are pending in any** Court or Tribunal or before an authority on the date of registration may be continued, completed and enforced by or against the limited liability partnership. **10. Continuance of conviction, ruling, order or judgment.—Any conviction, ruling, order or** judgment of any Court, Tribunal or other authority in favour of or against the company may be enforced by or against the limited liability partnership. **11. Existing agreements.—Every agreement to which the company was a party immediately before** the date of registration, whether or not of such nature that the rights and liabilities thereunder could be assigned, shall have effect as from that date as if— (a) the limited liability partnership were a party to such an agreement instead of the company; and (b) for any reference to the company, there were substituted in respect of anything to be done on or after the date of registration a reference to the limited liability partnership. **12. Existing contracts, etc.—All deeds, contracts, schemes, bonds, agreements, applications,** instruments and arrangements subsisting immediately before the date of registration relating to the company or to which the company is a party shall continue in force on and after that date as if they relate to the limited liability partnership and shall be enforceable by or against the limited liability partnership as if the limited liability partnership were named therein or were a party thereto instead of the company. **13. Continuance of employment.—Every contract of employment to which paragraph 11 or** paragraph 12 applies shall continue in force on or after the date of registration as if the limited liability partnership were the employer thereunder instead of the company. **14. Existing appointment, authority or power.—(1) Every appointment of the company in any role** or capacity which is in force immediately before the date of registration shall take effect and operate from that date as if the limited liability partnership were appointed. (2) Any authority or power conferred on the company which is in force immediately before the date of registration shall take effect and operate from that date as if it were conferred on the limited liability partnership. **15. Application of paragraphs 7 to 14.—The provisions of paragraphs 7 to 14 (both inclusive) shall** apply to any approval, permit or licence issued to the company under any other Act which is in force 42 ----- immediately before the date of registration of the limited liability partnership, subject to the provisions of such other Act under which such approval, permit or licence has been issued. **16. Notice of conversion in correspondence.—(1) The limited liability partnership shall ensure that** for a period of twelve months commencing not later than fourteen days after the date of registration, every official correspondence of the limited liability partnership bears the following, namely:— (a) a statement that it was, as from the date of registration, converted from a company into a limited liability partnership; and (b) the name and registration number of the company from which it was converted. (2) Any limited liability partnership which contravenes the provisions of sub-paragraph (1) shall be punishable with fine which shall not be less than ten thousand rupees but which may extend to one lakh rupees and with a further fine which shall not be less than fifty rupees but which may extend to five hundred rupees for every day after the first day after which the default continues. ______________ 43 -----

7-Jan-2009

04

The Gram Nyayalayas Act, 2008

https://www.indiacode.nic.in/bitstream/123456789/2060/3/A2009-04.pdf

central

## THE GRAM NYAYALAYAS ACT, 2008 __________________ ## ARRANGEMENT OF SECTIONS __________________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II GRAM NYAYALAYA 3. Establishment of Gram Nyayalayas. 4. Headquarters of Gram Nyayalayas. 5. Appointment of Nyayadhikari. 6. Qualifications for appointment of Nyayadhikari. 7. Salary, allowances and other terms and conditions of service of Nyayadhikari. 8. Nyayadhikari not to preside over proceedings in which he is interested. 9. Nyayadhikari to hold mobile courts and conduct proceedings in villages. 10. Seal of Gram Nyayalaya. CHAPTER III JURISDICTION, POWERS AND AUTHORITY OF GRAM NYAYALAYA 11. Jurisdiction of Gram Nyayalaya. 12. Criminal jurisdiction. 13. Civil jurisdiction. 14. Power to amend Schedules. 15. Limitation. 16. Transfer of pending proceedings. 17. Duties of ministerial officers. CHAPTER IV PROCEDURE IN CRIMINAL CASES 18. Overriding effect of Act in criminal trial. 19. Gram Nyayalaya to follow summary trial procedure. 20. Plea bargaining before Gram Nyayalaya. 21. Conduct of cases in Gram Nyayalaya and legal aid to parties. 22. Pronouncement of judgment. CHAPTER V PROCEDURE IN CIVIL CASES 23. Overriding effect of Act in civil proceedings. 24. Special procedure in civil disputes. 1 ----- SECTIONS 25. Execution of decrees and orders or Gram Nyayalaya. 26. Duty of Gram Nyayalaya to make efforts for conciliation and settlement of civil disputes. 27. Appointment of Conciliators. 28. Transfer of civil disputes. CHAPTER VI PROCEDURE GENERALLY 29. Proceedings to be in the official language of the State. 30. Application of Indian Evidence Act, 1872. 31. Record of oral evidence. 32. Evidence of formal character on affidavit. CHAPTER VII APPEALS 33. Appeal in criminal cases. 34. Appeal in civil cases. CHAPTER VIII MISCELLANEOUS 35. Assistance of police to Gram Nyayalayas. 36. Nyayadhikaris and employees, etc., to be public servants. 37. Inspection of Gram Nyayalayas. 38. Power to remove difficulties. 39. Power of High Court to make rules. 40. Power of State Government to make rules. THE FIRST SCHEDULE. THE SECOND SCHEDULE. 2 ----- ## THE GRAM NYAYALAYAS ACT, 2008 ACT NO. 4 OF 2009 [7th _January, 2009.]_ # An Act to provide for the establishment of Gram Nyayalayas at the grass roots level for the purposes of providing access to justice to the citizens at their doorsteps and to ensure that opportunities for securing justice are not denied to any citizen by reason of social, economic or other disabilities and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-ninth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.— (1) This Act may be called the Gram Nyayalayas Act,** 2008. (2) It extends to the whole of India except [1]***, the State of Nagaland, the State of Arunachal Pradesh, the State of Sikkim and to the tribal areas. _Explanation.—In this sub-section, the expression “tribal areas” means the areas specified in Parts I,_ II, IIA and III of the Table below paragraph 20 of the Sixth Schedule to the Constitution within the State of Assam, the State of Meghalaya, the State of Tripura and the State of Mizoram, respectively. (3) It shall come into force on such date[2] as the Central Government may, by notification published in the Official Gazette, appoint; and different dates may be appointed for different States. **2. Definitions.— In this Act, unless the context otherwise requires,—** (a) “Gram Nyayalaya” means a court established under sub-section (1) of section 3; (b) “Gram Panchayat” means an institution (by whatever name called) of self-government constituted, at the village level, under article 243B of the Constitution, for the rural areas; (c) “High Court” means,— (i) in relation to any State, the High Court for that State; (ii) in relation to a Union territory to which the jurisdiction of the High Court for a State has been extended by law, that High Court; (iii) in relation to any other Union territory, the highest Court of criminal appeal for that territory other than the Supreme Court of India; (d) “notification” means a notification published in the Official Gazette and the expression “notified” shall be construed accordingly; (e) “Nyayadhikari” means the presiding officer of a Gram Nyayalaya appointed under section 5; (f) “Panchayat at intermediate level” means an institution (by whatever name called) of self government constituted, at the intermediate level, under article 243B of the Constitution, for the rural areas in accordance with the provisions of Part IX of the Constitution; (g) “prescribed” means prescribed by rules made under this Act; (h) “Schedule” means the Schedule appended to this Act; 1. The words “the State of Jammu and Kashmir” omitted by Act 34 of 2019, s. 95 and the Fifth Schedule (w.e.f. 31-10- 2019). 2. 2nd October, 2009, _vide notification No. S.O. 2313(E), dated 11th November, 2009, see Gazette of India,_ Extraordinary, Part II, sec. 3(ii). 3 ----- (i) “State Government”, in relation to a Union territory, means the administrator thereof appointed under article 239 of the Constitution; (j) words and expressions used herein and not defined but defined in the Code of Civil Procedure, 1908 (5 of 1908) or the Code of Criminal Procedure, 1973 (2 of 1974) shall have the meanings respectively assigned to them in those Codes. CHAPTER II GRAM NYAYALAYA **3. Establishment of Gram Nyayalayas.— (1) For the purpose of exercising the jurisdiction and** powers conferred on a Gram Nyayalaya by this Act, the State Government, after consultation with the High Court, may, by notification, establish one or more Gram Nyayalayas for every Panchayat at intermediate level or a group of contiguous Panchayats at intermediate level in a district or where there is no Panchayat at intermediate level in any State, for a group of contiguous Gram Panchayats. (2) The State Government shall, after consultation with the High Court, specify, by notification, the local limits of the area to which the jurisdiction of a Gram Nyayalaya shall extend and may, at any time, increase, reduce or alter such limits. (3) The Gram Nyayalayas established under sub-section (1) shall be in addition to the courts established under any other law for the time being in force. **4. Headquarters of Gram Nyayalaya.—** The headquarters of every Gram Nyayalaya shall be located at the headquarters of the intermediate Panchayat in which the Gram Nyayalaya is established or such other place as may be notified by the State Government. **5. Appointment of Nyayadhikari.—** The State Government shall, in consultation with the High Court, appoint a Nyayadhikari for every Gram Nyayalaya. **6. Qualifications for appointment of Nyayadhikari.— (1) A person shall not be qualified to be** appointed as a Nyayadhikari unless he is eligible to be appointed as a Judicial Magistrate of the first class. (2) While appointing a Nyayadhikari, representation shall be given to the members of the Scheduled Castes, the Scheduled Tribes, women and such other classes or communities as may be specified by notification, by the State Government from time to time. **7. Salary, allowances and other terms and conditions of service of Nyayadhikari.— The salary** and other allowances payable to, and the other terms and conditions of service of, a Nyayadhikari shall be such as may be applicable to the Judicial Magistrate of the first class. **8. Nyayadhikari not to preside over proceedings in which he is interested.— The Nyayadhikari** shall not preside over the proceedings of a Gram Nyayalaya in which he has any interest or is otherwise involved in the subject matter of the dispute or is related to any party to such proceedings and in such a case, the Nyayadhikari shall refer the matter to the District Court or the Court of Session, as the case may be, for transferring it to any other Nyayadhikari. **9. Nyayadhikari to hold mobile courts and conduct proceedings in villages.— (1) The** Nyayadhikari shall periodically visit the villages falling under his jurisdiction and conduct trial or proceedings at any place which he considers is in close proximity to the place where the parties ordinarily reside or where the whole or part of the cause of action had arisen: Provided that where the Gram Nyayalaya decides to hold mobile court outside its headquarters, it shall give wide publicity as to the date and place where it proposes to hold mobile court. (2) The State Government shall extend all facilities to the Gram Nyayalaya including the provision of vehicles for holding mobile court by the Nyayadhikari while conducting trial or proceedings outside its headquarters. **10. Seal of Gram Nyayalaya.— Every Gram Nyayalaya established under this Act shall use a seal of** the court in such form and dimensions as may be prescribed by the High Court with the approval of the State Government. 4 ----- CHAPTER III JURISDICTION, POWERS AND AUTHORITY OF GRAM NYAYALAYA **11. Jurisdiction of Gram Nyayalaya.—** Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974) or the Code of Civil Procedure, 1908 (5 of 1908) or any other law for the time being in force, the Gram Nyayalaya shall exercise both civil and criminal jurisdiction in the manner and to the extent provided under this Act. **12. Criminal jurisdiction.— (1) Notwithstanding anything contained in the Code of Criminal** Procedure, 1973 (2 of 1974) or any other law for the time being in force, the Gram Nyayalaya may take cognizance of an offence on a complaint or on a police report and shall— (a) try all offences specified in Part I of the First Schedule; and (b) try all offences and grant relief, if any, specified under the enactments included in Part II of that Schedule. (2) Without prejudice to the provisions of sub-section (1), the Gram Nyayalaya shall also try all such offences or grant such relief under the State Acts which may be notified by the State Government under sub-section (3) of section 14. **13. Civil jurisdiction.— (1) Notwithstanding anything contained in the Code of Civil Procedure,** 1908 (5 of 1908) or any other law for the time being in force, and subject to sub-section (2), the Gram Nyayalaya shall have jurisdiction to— (a) try all suits or proceedings of a civil nature falling under the classes of disputes specified in Part I of the Second Schedule; (b) try all classes of claims and disputes which may be notified by the Central Government under sub-section (1) of section 14 and by the State Government under sub-section (3) of the said section. (2) The pecuniary limits of the Gram Nyayalaya shall be such as may be specified by the High Court, in consultation with the State Government, by notification, from time to time. **14. Power to amend Schedules.— (1) Where the Central Government is satisfied that it is necessary** or expedient so to do, it may, by notification, add to or omit any item in Part I or Part II of the First Schedule or Part II of the Second Schedule, as the case may be, and it shall be deemed to have been amended accordingly. (2) Every notification issued under sub-section (1) shall be laid before each House of Parliament. (3) If the State Government is satisfied that it is necessary or expedient so to do, it may, in consultation with the High Court, by notification, add to any item in Part III of the First Schedule or Part III of the Second Schedule or omit from it any item in respect of which the State Legislature is competent to make laws and thereupon the First Schedule or the Second Schedule, as the case may be, shall be deemed to have been amended accordingly. (4) Every notification issued under sub-section (3) shall be laid before the State Legislature. **15. Limitation.— (1) The provisions of the Limitation Act, 1963 (36 of 1963) shall be applicable to** the suits triable by the Gram Nyayalaya. (2) The provisions of Chapter XXXVI of the Code of Criminal Procedure, 1973 (2 of 1974) shall be applicable in respect of the offences triable by the Gram Nyayalaya. **16. Transfer of pending proceedings.— (1) The District Court or the Court of Session, as the case** may be, with effect from such date as may be notified by the High Court, may transfer all the civil or criminal cases, pending before the courts subordinate to it, to the Gram Nyayalaya competent to try or dispose of such cases. (2) The Gram Nyayalaya may, in its discretion, either retry the cases or proceed from the stage at which it was transferred to it. 5 ----- **17. Duties of ministerial officers.— (1) The State Government shall determine the nature and** categories of the officers and other employees required to assist a Gram Nyayalaya in the discharge of its functions and provide the Gram Nyayalaya with such officers and other employees as it may think fit. (2) The salaries and allowances payable to, and other conditions of service of, the officers and other employees of the Gram Nyayalaya shall be such as may be prescribed by the State Government. (3) The officers and other employees of a Gram Nyayalaya shall perform such duties as may, from time to time, be assigned to them by the Nyayadhikari. CHAPTER IV PROCEDURE IN CRIMINAL CASES **18. Overriding effect of Act in criminal trial.—** The provisions of this Act shall have effect notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974) or any other law, but save as expressly provided in this Act, the provisions of the Code shall, in so far as they are not inconsistent with the provisions of this Act, apply to the proceedings before a Gram Nyayalaya; and for the purpose of the said provisions of the Code, the Gram Nyayalaya shall be deemed to be a Court of Judicial Magistrate of the first class. **19. Gram Nyayalaya to follow summary trial procedure.— (1) Notwithstanding anything** contained in sub-section (1) of section 260 or sub-section (2) of section 262 of the Code of Criminal Procedure, 1973 (2 of 1974) the Gram Nyayalaya shall try the offences in a summary way in accordance with the procedure specified in Chapter XXI of the said Code and the provisions of sub-section (1) of section 262 and sections 263 to 265 of the said Code, shall, so far as may be, apply to such trial. (2) When, in the course of a summary trial, it appears to the Nyayadhikari that the nature of the case is such that it is undesirable to try it summarily, the Nyayadhikari shall recall any witness who may have been examined and proceed to re-hear the case in the manner provided under the Code of Criminal Procedure, 1973 (2 of 1974). **20. Plea bargaining before Gram Nyayalaya.—** A person accused of an offence may file an application for plea bargaining in Gram Nyayalaya in which such offence is pending trial and the Gram Nyayalaya shall dispose of the case in accordance with the provisions of Chapter XXIA of the Code of Criminal Procedure, 1973 (2 of 1974). **21. Conduct of cases in Gram Nyayalaya and legal aid to parties.— (1) For the purpose of** conducting criminal cases in the Gram Nyayalaya on behalf of the Government, the provisions of section 25 of the Code of Criminal Procedure, 1973 (2 of 1974) shall apply. (2) Notwithstanding anything contained in sub-section (1), in a criminal proceeding before the Gram Nyayalaya, the complainant may engage an advocate of his choice at his expense to present the case of prosecution with the leave of the Gram Nyayalaya. (3) The State Legal Services Authority, constituted under section 6 of the Legal Services Authorities Act, 1987 (39 of 1987) shall prepare a panel of advocates and assign at least two of them to be attached to each Gram Nyayalaya so that their services may be provided by the Gram Nyayalaya to the accused unable to engage an advocate. **22. Pronouncement of judgment.— (1) The judgment in every trial shall be pronounced by the** Nyayadhikari in open court immediately after the termination of the trial or at any subsequent time, not exceeding fifteen days, of which notice shall be given to the parties. (2) The Gram Nyayalaya shall deliver a copy of its judgment immediately to both the parties free of cost. CHAPTER V PROCEDURE IN CIVIL CASES **23. Overriding effect of Act in civil proceedings.—** The provisions of this Act shall have effect notwithstanding anything contained in the Code of Civil Procedure, 1908 (5 of 1908) or any other law, 6 ----- but save as expressly provided in this Act, the provisions of the Code shall, in so far as they are not inconsistent with the provisions of this Act, apply to the proceedings before a Gram Nyayalaya; and for the purpose of the said provisions of the Code, the Gram Nyayalaya shall be deemed to be a civil court. **24. Special procedure in civil disputes.— (1) Notwithstanding anything contained in any other law** for the time being in force, every suit, claim or dispute under this Act shall be instituted by making an application to the Gram Nyayalaya in such form, in such manner, and accompanied by such fee, not exceeding rupees one hundred, as may be prescribed by the High Court, from time to time, in consultation with the State Government. (2) Where a suit, claim or dispute has been duly instituted, a summons shall be issued by the Gram Nyayalaya, accompanied by a copy of the application made under sub-section (1), to the opposite party to appear and answer the claim by such date as may be specified therein and the same shall be served in such manner as may be prescribed by the High Court. (3) After the opposite party files his written statement, the Gram Nyayalaya shall fix a date for hearing and inform all the parties to be present in person or through their advocates. (4) On the date fixed for hearing, the Gram Nyayalaya shall hear both the parties in regard to their respective contentions and where the dispute does not require recording of any evidence, pronounce the judgment; and in case where it requires recording of evidence, the Gram Nyayalaya shall proceed further. (5) The Gram Nyayalaya shall also have the power— (a) to dismiss any case for default or to proceed ex parte; and (b) to set aside any such order of dismissal for default or any order passed by it for hearing the case ex parte. (6) In regard to any incidental matter that may arise during the course of the proceedings, the Gram Nyayalaya shall adopt such procedure as it may deem just and reasonable in the interest of justice. (7) The proceedings shall, as far as practicable, be consistent with the interests of justice and the hearing shall be continued on a day-to-day basis until its conclusion, unless the Gram Nyayalaya finds the adjournment of the hearing beyond the following day to be necessary for reasons to be recorded in writing. (8) The Gram Nyayalaya shall dispose of the application made under sub-section (1) within a period of six months from the date of its institution. (9) The judgment in every suit, claim or dispute shall be pronounced in open court by the Gram Nyayalaya immediately after conclusion of hearing or at any subsequent time, not exceeding fifteen days, of which notice shall be given to the parties. (10) The judgment shall contain a concise statement of the case, the point for determination, the decision thereon and the reasons for such decision. (11) A copy of the judgment shall be delivered free of cost to both the parties within three days from the date of pronouncement of the judgment. **25. Execution of decrees and orders of Gram Nyayalaya.— (1) Notwithstanding anything** contained in the Code of Civil Procedure, 1908 (5 of 1908) the judgment passed by a Gram Nyayalaya shall be deemed to be a decree and it shall be executed by a Gram Nyayalaya as a decree of the civil court and for this purpose, the Gram Nyayalaya shall have all the powers of a civil court. (2) The Gram Nyayalaya shall not be bound by the procedure in respect of execution of a decree as provided in the Code of Civil Procedure, 1908 (5 of 1908) and it shall be guided by the principles of natural justice. (3) A decree may be executed either by the Gram Nyayalaya which passed it or by the other Gram Nyayalaya to which it is sent for execution. **26. Duty of Gram Nyayalaya to make efforts for conciliation and settlement of civil disputes.—** (1) In every suit or proceeding, endeavour shall be made by the Gram Nyayalaya in the first instance, where it is possible to do so, consistent with the nature and circumstances of the case, to assist, persuade and conciliate the parties in arriving at a settlement in respect of the subject matter of the suit, claim or 7 ----- dispute and for this purpose, a Gram Nyayalaya shall follow such procedure as may be prescribed by the High Court. (2) Where in any suit or proceeding, it appears to the Gram Nyayalaya at any stage that there is a reasonable possibility of a settlement between the parties, the Gram Nyayalaya may adjourn the proceeding for such period as it thinks fit to enable them to make attempts to effect such a settlement. (3) Where any proceeding is adjourned under sub-section (2), the Gram Nyayalaya may, in its discretion, refer the matter to one or more Conciliators for effecting a settlement between the parties. (4) The power conferred by sub-section (2) shall be in addition to, and not in derogation of, any other power of the Gram Nyayalaya to adjourn the proceeding. **27. Appointment of Conciliators.— (1) For the purposes of section 26, the District Court shall, in** consultation with the District Magistrate, prepare a panel consisting of the names of social workers at the village level having integrity for appointment as Conciliators who possess such qualifications and experience as may be prescribed by the High Court. (2) The sitting fee and other allowances payable to, and the other terms and conditions for engagement of, Conciliators shall be such as may be prescribed by the State Government. **28. Transfer of civil disputes.— The District Court having jurisdiction may, on an application made** by any party or when there is considerable pendency of cases in one Gram Nyayalaya or whenever it considers necessary in the interests of justice, transfer any case pending before a Gram Nyayalaya to any other Gram Nyayalaya within its jurisdiction. CHAPTER VI PROCEDURE GENERALLY **29. Proceedings to be in the official language of the State.—** The proceedings before the Gram Nyayalaya and its judgment shall, as far as practicable, be in one of the official languages of the State other than the English language. **30. Application of Indian Evidence Act, 1872.— A Gram Nyayalaya may receive as evidence any** report, statement, document, information or matter that may, in its opinion, assist it to deal effectually with a dispute, whether or not the same would be otherwise relevant or admissible under the Indian Evidence Act, 1872 (1 of 1872). **31. Record of oral evidence.—** In suits or proceedings before a Gram Nyayalaya, it shall not be necessary to record the evidence of witnesses at length, but the Nyayadhikari, as the examination of each witness proceeds, shall, record or cause to be recorded, a memorandum of substance of what the witness deposes, and such memorandum shall be signed by the witness and the Nyayadhikari and it shall form part of the record. **32. Evidence of formal character on affidavit.— (1) The evidence of any person where such** evidence is of a formal character, may be given by affidavit and may, subject to all just exceptions, be read in evidence in any suit or proceeding before a Gram Nyayalaya. (2) The Gram Nyayalaya may, if it thinks fit, and shall, on the application of any of the parties to the suit or proceeding, summon and examine any such person as to the facts contained in his affidavit. CHAPTER VII APPEALS **33. Appeal in criminal cases.— (1) Notwithstanding anything contained in the Code of Criminal** Procedure, 1973 (2 of 1974) or any other law, no appeal shall lie from any judgment, sentence or order of a Gram Nyayalaya except as provided hereunder. (2) No appeal shall lie where— (a) an accused person has pleaded guilty and has been convicted on such plea; (b) the Gram Nyayalaya has passed only a sentence of fine not exceeding one thousand rupees. 8 ----- (3) Subject to sub-section (2), an appeal shall lie from any other judgment, sentence or order of a Gram Nyayalaya to the Court of Session. (4) Every appeal under this section shall be preferred within a period of thirty days from the date of judgment, sentence or order of a Gram Nyayalaya: Provided that the Court of Session may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that the appellant had sufficient cause for not preferring the appeal within the said period. (5) An appeal preferred under sub-section (3) shall be heard and disposed of by the Court of Session within six months from the date of filing of such appeal. (6) The Court of Session may, pending disposal of the appeal, direct the suspension of the sentence or order appealed against. (7) The decision of the Court of Session under sub-section (5) shall be final and no appeal or revision shall lie from the decision of the Court of Session: Provided that nothing in this sub-section shall preclude any person from availing of the judicial remedies available under articles 32 and 226 of the Constitution. **34. Appeal in civil cases.— (1) Notwithstanding anything contained in the Code of Civil Procedure,** 1908 (5 of 1908) or any other law, and subject to sub-section (2), an appeal shall lie from every judgment or order, not being an interlocutory order, of a Gram Nyayalaya to the District Court. (2) No appeal shall lie from any judgment or order passed by the Gram Nyayalaya— (a) with the consent of the parties; (b) where the amount or value of the subject matter of a suit, claim or dispute does not exceed rupees one thousand; (c) except on a question of law, where the amount or value of the subject matter of such suit, claim or dispute does not exceed rupees five thousand. (3) Every appeal under this section shall be preferred within a period of thirty days from the date of the judgment or order of a Gram Nyayalaya: Provided that the District Court may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that the appellant had sufficient cause for not preferring the appeal within the said period. (4) An appeal preferred under sub-section (1) shall be heard and disposed of by the District Court within six months from the date of filing of the appeal. (5) The District Court may, pending disposal of the appeal, stay execution of the judgment or order appealed against. (6) The decision of the District Court under sub-section (4) shall be final and no appeal or revision shall lie from the decision of the District Court: Provided that nothing in this sub-section shall preclude any person from availing of the judicial remedies available under articles 32 and 226 of the Constitution. CHAPTER VIII MISCELLANEOUS **35. Assistance of police to Gram Nyayalayas.— (1) Every police officer functioning within the** local limits of jurisdiction of a Gram Nyayalaya shall be bound to assist the Gram Nyayalaya in the exercise of its lawful authority. (2) Whenever the Gram Nyayalaya, in the discharge of its functions, directs a revenue officer or police officer or Government servant to provide assistance to the Gram Nyayalaya, he shall be bound to provide such assistance. 9 ----- **36. Nyayadhikaris and employees, etc., to be public servants.—** The Nyayadhikaris and the officers and other employees of the Gram Nyayalayas shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this Act, to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **37. Inspection of Gram Nyayalayas.— The High Court may authorise any judicial officer superior** in rank to the Nyayadhikari to inspect the Gram Nyayalayas within his jurisdiction once in every six months or such other period as the High Court may prescribe and issue such instructions, as he considers necessary and submit a report to the High Court. **38. Power to remove difficulties.— (1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act, as may appear to it to be necessary or expedient for removing the difficulty: Provided that no order shall be made under this section after the expiry of a period of three years from the date of commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **39. Power of High Court to make rules.— (1) The High Court may, by notification, make rules for** carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the form and dimensions of the seal of the Gram Nyayalaya under section 10; (b) the form, the manner and the fee for institution of suit, claim or proceeding under sub-section (1) of section 24; (c) manner of service on opposite party under sub-section (2) of section 24; (d) procedure for conciliation under sub-section (1) of section 26; (e) qualifications and experience of Conciliators under sub-section (1) of section 27; (f) the period for inspection of Gram Nyayalayas under section 37. (3) Every notification issued by the High Court shall be published in the Official Gazette. **40. Power of State Government to make rules.— (1) The State Government may, by notification,** make rules for carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the salaries and allowances payable to, and the other terms and conditions of service of, the officers and other employees of the Gram Nyayalayas under sub-section (2) of section 17; (b) the sitting fee and other allowances payable to, and the other terms and conditions for engagement of, Conciliators under sub-section (2) of section 27. (3) Every rule made by the State Government under this Act shall be laid as soon as may be after it is made, before the State Legislature. 10 ----- THE FIRST SCHEDULE (See sections 12 and 14) PART I OFFENCES UNDER THE INDIAN PENAL CODE (45 OF 1860), ETC. (i) offences not punishable with death, imprisonment for life or imprisonment for a term exceeding two years; (ii) theft, under section 379, section 380 or section 381 of the Indian Penal Code (45 of 1860), where the value of the property stolen does not exceed rupees twenty thousand; (iii) receiving or retaining stolen property, under section 411 of the Indian Penal Code (45 of 1860), where the value of the property does not exceed rupees twenty thousand; (iv) assisting in the concealment or disposal of stolen property, under section 414 of the Indian Penal Code (45 of 1860), where the value of such property does not exceed rupees twenty thousand; (v) offences under sections 454 and 456 of the Indian Penal Code (45 of 1860); (vi) insult with intent to provoke a breach of the peace, under section 504, and criminal intimidation, punishable with imprisonment for a term which may extend to two years, or with fine, or with both, under section 506 of the Indian Penal Code (45 of 1860); (vii) abetment of any of the foregoing offences; (viii) an attempt to commit any of the foregoing offences, when such attempt is an offence. PART II OFFENCES AND RELIEF UNDER THE OTHER CENTRAL ACTS (i) any offence constituted by an act in respect of which a complaint may be made under section 20 of the Cattle-trespass Act, 1871(1 of 1871); (ii) the Payment of Wages Act, 1936 (4 of 1936); (iii) the Minimum Wages Act, 1948 (11 of 1948); (iv) the Protection of Civil Rights Act, 1955 (22 of 1955); (v) order for maintenance of wives, children and parents under Chapter IX of the Code of Criminal Procedure, 1973 (2 of 1974); (vi) the Bonded Labour System (Abolition) Act, 1976 (19 of 1976); (vii) the Equal Remuneration Act, 1976 (25 of 1976); (viii) the Protection of Women from Domestic Violence Act, 2005 (43 of 2005). PART III OFFENCES AND RELIEF UNDER THE STATE ACTS (To be notified by the State Government) 11 ----- THE SECOND SCHEDULE (See sections 13 and 14) PART I SUITS OF A CIVIL NATURE WITHIN THE JURISDICTION OF GRAM NYAYALAYAS (i) Civil Disputes: (a) right to purchase of property; (b) use of common pasture; (c) regulation and timing of taking water from irrigation channel. (ii) Property Disputes: (a) village and farm houses (Possession); (b) water channels; (c) right to draw water from a well or tube well. (iii) Other Disputes: (a) claims under the Payment of Wages Act, 1936 (4 of 1936); (b) claims under the Minimum Wages Act, 1948 (11 of 1948); (c) money suits either arising from trade transaction or money lending; (d) disputes arising out of the partnership in cultivation of land; (e) disputes as to the use of forest produce by inhabitants of Gram Panchayats. PART II CLAIMS AND DISPUTES UNDER THE CENTRAL ACTS NOTIFIED UNDER SUB-SECTION (1) OF SECTION 14 BY THE CENTRAL GOVERNMENT (To be notified by the Central Government) PART III CLAIMS AND DISPUTES UNDER THE STATE ACTS NOTIFIED UNDER SUB-SECTION (3) OF SECTION 14 BY THE STATE GOVERNMENT (To be notified by the State Government) 12 -----

7-Jan-2009

07

The Collection of Statistics Act, 2008

https://www.indiacode.nic.in/bitstream/123456789/2081/1/A2009_07.pdf

central

# THE COLLECTION OF STATISTICS ACT, 2008 –––––––––– ARRANGEMENT OF SECTIONS –––––––––– CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II COLLECTION OF STATISTICS 3. Collection of statistics. 3A. Nodal officer. 4. Powers of appropriate Government to appoint statistics officer, etc. 5. Power of statistics officer to call for information. 6. Duty of informants. 7. All agencies to assist. 8. Right of access to records or documents. CHAPTER III DISCLOSURE OF INFORMATION IN CERTAIN CASES AND RESTRICTIONS OF THEIR USE 9. Security of information. 10. Appropriate Government authorised to disclose certain information. 11. Disclosure of information schedules for bona fide research or statistical purposes. 12. Disclosure of historical documents. 13. Security of recorded information. 14. Restrictions on use of information. CHAPTER IV OFFENCES AND PENALTIES 15. Penalty for neglect or refusal to supply particulars. 16. Penalty for making false statement. 17. Penalty for mutilation or defacement of information schedule. 18. Penalty for obstruction of employees. 19. Penalty for other offences. 20. Penalty for failure to carry out duties and functions by employees. 21. Penalty for impersonation of employee. 22. General penalty. 23. Offences by companies. 24. Cognizance of offences. 25. Sanction for prosecution for offence. 26. Power of court to try cases summarily. 1 ----- CHAPTER V POWER IN RESPECT OF CORE STATISTICS SECTIONS 27. Power in respect of core statistics. CHAPTER VI MISCELLANEOUS 28. Power to give directions. 29. Public servants. 30. Bar of jurisdiction. 31. Protection of action taken in good faith. 32. Overriding effect. 33. Power to make rules. 34. Repeal and savings. 2 ----- # THE COLLECTION OF STATISTICS ACT, 2008 ACT No. 7 OF 2009 [7th _January, 2009.]_ # An Act to facilitate the collection of statistics on economic, demographic, social, scientific and environmental aspects, and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-ninth Year of the Republic of India as follows:– CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Collection of** Statistics Act, 2008. 1[(2) It extends to the whole of India: 2* - - - *] (3) It shall come into force on such date[3] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.–In this Act, unless the context otherwise requires,–** (a) “agency” includes a person or persons engaged by the appropriate Government, directly or by outsourcing, for collection of statistics; (b) “appropriate Government” means– (i) any Ministry or Department in the Central Government; or (ii) any Ministry or Department in a State Government or Union territory Administration; or (iii) any local government that is to say, Panchayats or Municipalities, as the case may be, in relation to the collection of statistics under a direction issued by it under section 3; (c) “informant” means any person, who supplies or is required to supply statistical information and includes a owner or occupier or person in-charge or his authorised representative in respect of persons or a firm registered under the Indian Partnership Act, 1932 (9 of 1932) or a co-operative society registered under any Co-operative Societies Act or a company registered under the Companies Act, 1956 (1 of 1956) or a society registered under the Societies Registration Act, 1860 (21 of 1860) or any association recognised or registered under any law for the time being in force; (d) “information schedule” means any book, document, form, card, tape, disc or any storage media on which information required is entered or recorded or is required to be entered or recorded for statistical purposes under this Act; 4[(da) “nodal officer” means the officer designated as a nodal officer under sub-section (1) of section 3A;]. (e) “prescribed” means prescribed by rules made under this Act; 1. Subs. by Act 21 of 2017, s. 2 ( w.e.f. 3-10-2017). 2. The proviso omitted by the Jammu and Kashmir Reorganization (Adaptation of Central Laws) Order, 2020, vide notification No. S.O. 1123(E) dated (18-3-2020) and vide Union Territory of Ladakh Reorganisation (Adaptation of Central Laws) Order, 2020, Notification No. S.O. 3774(E), dated (23-10-2020). 3. 11th June, 2010, vide notification No. S.O. 1416(E), dated 9th June, 2010, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 4. Ins. by Act 21 of 2017, s. 3 (w.e.f. 3-10-2017). 3 ----- (f) “sampling” means a statistical procedure by which information relating to a particular field of inquiry is derived by applying statistical techniques to information obtained in respect of a proportion of the total number of persons or units concerned relevant to the field of inquiry; (g) “statistical survey” means a census or a survey, whereby information is collected from all the informants in the field of inquiry or from a sample thereof, by an appropriate Government under this Act or any other relevant Act, wholly or primarily for the purposes of processing and summarising by appropriate statistical procedures; (h) “statistics” means statistics derived by collecting, classifying and using statistics, specially in or for large quantities or numbers by appropriate Government from statistical surveys, administrative and registration records, and other forms and papers, the statistical analysis of which are, whether in a published or unpublished form; (i) “statistics officer” means any officer appointed under section 4 for the purposes of any direction issued under section 3 of this Act. CHAPTER II COLLECTION OF STATISTICS **3. Collection of statistics.–The appropriate Government may, by notification in the Official** Gazette, direct that the statistics on economic, demographic, social, scientific and environmental aspects shall be collected through a statistical survey or otherwise, and thereupon the provisions of this Act shall apply in relation to those statistics: Provided that– (a) nothing contained in this section shall be deemed to authorise a State Government or Union territory Administration or any local government to issue any direction with respect to the collection of statistics relating to any matter falling under any of the entries specified in List I (Union List) in the Seventh Schedule to the Constitution; or (b) where the Central Government has issued any direction under this section for the collection of statistics relating to any matter, no State Government or Union territory Administration or any local government shall, except with the previous approval of the Central Government, issue any similar direction for so long as the collection of such statistics by the Central Government remain to be completed; or (c) where a State Government or Union territory Administration or any local government has issued a direction under this section for the collection of statistics relating to any matter, the Central Government shall not issue any similar direction for so long as the collection of such statistics by the State Government remain to be completed, except in cases where such statistics have to be collected with reference to two or more States or Union territories. 1[3A. Nodal officer.–(1) The Central Government or a State Government or Union territory Administration shall designate one of its officers as a nodal officer for the purposes of statistics under this Act. (2) The nodal officer shall coordinate and supervise such statistical activities in the Central Government or the State Government or Union territory Administration, as the case may be, in which he is designated, and shall exercise such other powers and perform such other duties, as may be prescribed.]. **4. Powers of appropriate Government to appoint statistics officer, etc.–(1) The appropriate** Government may appoint or cause to appoint an officer to be the statistics officer for any geographical unit for the purpose of collecting any statistics directed by it. 1. Ins. by Act 21 of 2017, s. 4 (w.e.f. 3-10-2017). 4 ----- (2) The appropriate Government may appoint any agency or persons working in such agencies to take, or aid in, or supervise the collection of the statistics within any specified geographical unit and such agencies or persons, when so appointed, shall be bound to serve accordingly. (3) The appropriate Government may employ on contract basis any agency or company or organisation or association or person, on such terms and conditions and on such safeguards as may be prescribed, for the purpose of collecting the statistics directed by it. (4) The appropriate Government may delegate to any statistics officer, as it thinks fit, the power of appointing agencies or persons working in such agencies or employing on contract basis any agency or company or organisation or association of persons, conferred on it by sub-sections (2) and (3) within the geographical unit for which such statistics officer is appointed. (5) The appropriate Government may, by order specify the form, the particulars required or the interval within which, and the statistics officer to whom, the statistical information by the informants shall be furnished. (6) The appropriate Government may, by order published in the Official Gazette, delegate to any statistics officer, as it thinks fit, any power conferred under sub-section (5) for the purpose of the collection of statistics under a direction issued by it under section 3. **5. Power of statistics officer to call for information.–The statistics officer may, for the purpose** of collection of statistics on any specified subject in any geographical unit for which the said officer was appointed– (a) serve or cause to be served on any informant a notice in writing asking him to furnish the information specified under sub-section (5) of section 4 or cause a information schedule to be given to any informant for the purpose of its being filled up; or (b) cause all questions relating to the subject to be asked from any informant; or (c) seek information through tele fax or telephone or e-mail or in any other electronic mode or in a combination of different modes for different sets of information so specified. **6. Duty of informants.–The informants who are asked to furnish any information under the** provisions of this Act shall be bound to furnish the information so asked in the prescribed manner to the best of knowledge or belief; and in cases where only a portion of a particular class or group of persons or units is asked to furnish information because of any sampling procedure, it shall not be a defence in failure on the part of any informant to furnish that information, if so asked. **7. All agencies to assist.–Every agency shall render such help and assistance and furnish such** information to the statistics officer or a person or an agency authorised by him in writing, as he may require for the discharge of his functions, and shall make available for inspection and examination of such records, plans and other documents, as may be necessary. **8. Right of access to records or documents.–The statistics officer or any person authorised by** him in writing in this behalf shall, for the purposes of collection of any statistics under this Act, have access to any relevant record or document in the possession of any informant required to furnish any information under this Act, and may enter at any reasonable time any premises where he believes such record or document is kept and may inspect or take copies of relevant records or documents or ask any question necessary for obtaining any information required to be furnished under this Act. CHAPTER III DISCLOSURE OF INFORMATION IN CERTAIN CASES AND RESTRICTIONS OF THEIR USE **9. Security of information.–[1][“(1) The statistics officer or any person or agencies authorised** under this Act shall, for statistical purposes, use any information furnished under section 6 in such manner as may be prescribed.]. 1. Subs. by Act 21 of 2017, s. 5, for “sub-section (1)” (w.e.f. 3-10-2017). 5 ----- (2) No person other than a person engaged in the work of collection of statistics under this Act or preparation of statistics resultant to such collection shall be permitted to see any information schedule or any answer to a question asked, except for the purposes of a prosecution under this Act. (3) No information contained in any information schedule and no answer to any question asked shall, except for the purposes of a prosecution under this Act, be separately published, or disclosed without suppressing the identification of informants to any agency. (4) All statistical information published by any agency shall be arranged in such a manner so as to prevent any particulars becoming identifiable by any person (other than the informant by whom those particulars were supplied) as the particulars relating to the informant who supplied it, even through the process of elimination, unless– (a) that informant has consented to their publication in that manner; or (b) their publication in that manner could not reasonably have been foreseen by the concerned agency or any employee thereof. (5) For the purposes of sub-section (4), the Central Government may make such rules or make such arrangement, as it may consider necessary. **10. Appropriate Government authorised to disclose certain information.–Notwithstanding the** provisions contained in section 9 of this Act, the appropriate Government may disclose the following information, namely:– (a) information supplied by informant in respect of which disclosure is consented to in writing by the informant or by any person authorised by the said informant; (b) information otherwise available to the public under any Act or as a public document; (c) information in the form of an index or list of the names and addresses of informants together with the classification, if any, allotted to them and the number of persons engaged. **11. Disclosure of information schedules for** **_bona fide research or statistical purposes.–(1)_** Notwithstanding the provisions contained in section 9 of this Act, the appropriate Government may disclose individual returns or formats or information schedules to other agency or person or institutions or universities solely for _bona fide research or statistical purposes pursuant to their_ functions and duties. (2) No individual return or information schedule shall be disclosed pursuant to this section unless– (a) the name and address of the informant by whom the schedule or related information was supplied is deleted; (b) every agency or person or institutions or Universities involved in the research or statistical project makes a declaration to use the schedules disclosed to them only for _bona fide research or_ statistical purposes; and (c) the appropriate Government, making such disclosure is satisfied that the security of the schedules and any information contained therein shall not be impaired. (3) The published results of any research or statistical project shall not divulge any more information than what the agency authorised for collection of statistics could publish under this Act. (4) Every agency or person or institutions or universities to whom any individual return or information schedule is disclosed under this section shall comply with directions given by the agency authorised for collection of statistics making the disclosure relating to the schedules and any information contained therein. **12. Disclosure of historical documents.–Notwithstanding anything contained in section 9 of this** Act, the appropriate Government may release such documents relating to information schedules, which in its opinion have attained historical importance. **13. Security of recorded information.–The statistics officer or any person or agency authorised** for collection of statistics shall, while copying or recording any statistical information collected 6 ----- pursuant to this Act from individual returns, information schedules, worksheets or any other confidential source by means of cards, tapes, discs, film or any other method, whether using encoded or plain language symbols for processing, storage or reproduction of particulars, take and cause to take such steps as are necessary to ensure that the security provisions of this Act are complied with. **14. Restrictions on use of information.–Save as otherwise provided under this Act,–** (a) no information obtained pursuant to this Act and no copy of the information in the possession of any informant shall be disclosed or used as evidence in any proceedings whatsoever; and (b) no person who has access to any information because of his official position in the collection of any statistics shall be compelled in any proceedings whatsoever to give oral testimony regarding the information or to produce any schedule, document, or record with respect to any information obtained in the course of administering this Act, except in the manner provided under this Act. CHAPTER IV OFFENCES AND PENALTIES **15. Penalty for neglect or refusal to supply particulars.–(1) Whoever, fails to produce any** books of account, vouchers, documents or other business records or whoever neglects or refuses to fill in and supply the particulars required in any information schedule or return given or sent to him or whoever neglects or refuses to answer any question or inquiry addressed to him as may be required under or for the purposes of any provision of this Act and the rules made thereunder, shall be punishable with a fine which may extend to one thousand rupees or, in the case of a company, with a fine which may extend to five thousand rupees. (2) The conviction of a person or company for an offence shall not relieve him or it of the obligations under sub-section (1) and if after the expiry of fourteen days from the date of conviction, he or it still fails to give the required particulars or continues to neglect or refuses to fill in and supply the particulars or to answer the question or inquiry, then he or it shall be punishable with a further fine which may extend to one thousand rupees or, in the case of a company, with a fine which may extend to five thousand rupees, for each day after the first during which the failure continues. **16. Penalty for making false statement.–Whoever, wilfully makes any false or misleading** statement or material omission in any information schedule or return filled in or supplied, or in answer to any question asked to him under this Act or the rules made thereunder, shall be punishable with simple imprisonment for a term which may extend to six months or with a fine which may extend to one thousand rupees or, in the case of a company, with a fine which may extend to five thousand rupees or with both. **17. Penalty for mutilation or defacement of information schedule.–Whoever, destroys, defaces,** removes, or mutilates any information schedule, form, or other document containing particulars collected under this Act or requesting any such particulars, shall be punishable with simple imprisonment for a term which may extend to six months or with a fine which may extend to two thousand rupees or, in the case of a company with a fine which may extend to ten thousand rupees or with both. **18. Penalty for obstruction of employees.–Whoever, interferes with, hinders, or obstructs any** employee in the exercise of any power or duty conferred by this Act, shall be punishable with simple imprisonment for a term which may extend to six months or with a fine which may extend to two thousand rupees or, in the case of a company with a fine which may extend to ten thousand rupees or with both. **19. Penalty for other offences.–Whoever–** (a) acts in contravention of or fails to comply with any provision of this Act or any requirement imposed under this Act; or 7 ----- (b) wilfully deceives or attempts to deceive any statistics officer or any agency or any employee thereof, shall be punishable with simple imprisonment for a term which may extend to six months or with a fine which may extend to two thousand rupees or, in the case of a company, with a fine which may extend to ten thousand rupees or with both. **20. Penalty for failure to carry out duties and functions by employees.–If any person employed** in the execution of any duty or functions under this Act,– (a) omits without lawful excuse to carry out his duty, or knowingly makes any false declaration, statement or return; or (b) pretends performance of his duties or obtains or seeks to obtain information which he is not authorised to obtain; or (c) fails to keep inviolate the secrecy of the information gathered or entered in the information schedules collected pursuant to this Act and, except as permitted under this Act, divulges the contents of any schedule filled in or any information furnished by any informant under this Act, shall be punishable with simple imprisonment for a term which may extend to six months or with a fine which may extend to two thousand rupees or, in the case of a company, with a fine which may extend to ten thousand rupees or with both. **21. Penalty for impersonation of employee.–Whoever, not being authorised to collect statistics** under the provisions of this Act, by words, conduct or demeanor pretends that he is authorised to do so, shall be punishable with simple imprisonment for a term which may extend to six months or with a fine which may extend to two thousand rupees or, in the case of a company, with a fine which may extend to ten thousand rupees or with both. **22. General penalty.–Whoever, commits an offence under this Act for which no penalty is** prescribed elsewhere than in this section, shall be punishable with simple imprisonment for a term which may extend to six months or with a fine which may extend to two thousand rupees or, in the case of a company, with a fine which may extend to ten thousand rupees or with both. **23. Offences by companies.–(1) Where an offence under this Act has been committed by a** company, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly. _Explanation.–For the purpose of this section–_ (a) ''company'' means any body corporate and includes a firm or other association of individuals; and (b) ''Director'', in relation to a firm, means a partner in the firm. **24. Cognizance of offences.–No court shall take cognizance of any offence under this Act except** on a complaint made by the appropriate Government or an officer authorised in this behalf by such appropriate Government or, as the case may be, the statistics officer, and no court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence punishable under this Act. 8 ----- **25. Sanction for prosecution for offence.–No prosecution for an offence committed by any** informant shall be instituted except by or with the sanction of the statistics officer, and no prosecution for an offence committed by persons other than informants shall be instituted except by or with the consent of the appropriate Government. **26. Power of court to try cases summarily.–Notwithstanding anything contained in the Code of** Criminal Procedure, 1973 (2 of 1974), all offences under this Act shall be tried in a summary way by a Judicial Magistrate of the first class or by a Metropolitan Magistrate and the provisions of sections 262 to 265 (both inclusive) of the said Code shall, as far as may be, apply to such trial: Provided that when in the course of, a summary trial under this section it appears to the Magistrate that the nature of the case is such that it is, for any reason, undesirable to try the case summarily, the Magistrate shall after hearing the parties, record an order to that effect and thereafter recall any witness who may have been examined and proceed to hear or rehear the case in the manner provided by the said Code. CHAPTER V POWER IN RESPECT OF CORE STATISTICS **27. Power in respect of core statistics.–Without prejudice to the provisions contained in this Act,** the Central Government may, by notification in the Official Gazette, declare from time to time any subject for the collection of statistics of national importance as „core statistics‟ and make such arrangement, as it may consider necessary, for regulating the collection and dissemination of statistics on the subject so declared. CHAPTER VI MISCELLANEOUS **28. Power to give directions.–The Central Government may give directions to any State** Government or Union territory Administration or to any local government that is to say Panchayats or Municipalities, as to the carrying into execution of this Act in the State or Union territory or Panchayats or Municipalities, as the case may be. **29. Public servants.–Any statistics officer and any person authorised for the collection of statistics** or preparation of official statistics under the provisions of this Act shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860). **30. Bar of jurisdiction.–No civil court shall have jurisdiction to entertain any suit or proceeding** in respect of any matter which the appropriate Government or the statistics officer or the agency is empowered by or under this Act to determine, and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act. **31. Protection of action taken in good faith.–No suit or other legal proceedings shall lie against** the appropriate Government or agency or any statistics officer or other officers or employees in respect of anything which is in good faith done or intended to be done in pursuance of this Act or the rules or directions issued thereunder. **32. Overriding effect.–The provisions of this Act shall have effect notwithstanding anything** inconsistent therewith contained in any other law for the time being in force except in relation to the conduct of human population census as per the directions, if any, issued under the Census Act, 1948 (37 of 1948). **33. Power to make rules.–(1) The Central Government may, [1][subject to the condition of previous** publication] by notification in the Official Gazette, make rules for carrying out the provisions of this Act. 1. Ins. by Act 21 of 2017, s. 6 (w.e.f. 3-10-2017). 9 ----- (2) In particular, and without prejudice to the generality of the foregoing power, the Central Government may make rules under this section for all or any of the following matters, namely:– (a) principles for coordinating as effectively as possible to achieve the objectives of section 3 including nomination and registration of statistics officers by the Central Government and also to avoid unnecessary duplication in the collection of statistics; 1[(aa) the coordination and supervision of statistical activities by the nodal officer and the powers and duties of the nodal officer under sub-section (2) of section 3A;]; (b) the terms, conditions and safeguards under which any person or agency or company or organisation or association may be engaged by the appropriate Government for the purpose of collection of statistics under sub-section (3) of section 4; (c) principles for prescribing the form and manner in which the information may be required to be furnished; (d) principles for prescribing the manner in which the right of access to documents and the right of entry conferred by section 8 may be exercised; 1[(da) the manner of use of information under sub-section (1) of section 9;] and (e) any other matter which is to be or may be prescribed under this Act. (3) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **34. Repeal and savings.–(1) The Collection of Statistics Act, 1953 (32 of 1953) is hereby** repealed. (2) Notwithstanding such repeal, anything done or any action taken under the said Act shall be deemed to have been done or taken under the corresponding provisions of this Act. (3) All rules made under the said Act shall continue to be in force and operate till new rules are made under this Act. ______ 1. Ins. by Act 21 of 2017, s. 6 (3-10-2017). 10 -----

11-Jan-2009

08

The South Asian University Act, 2008

https://www.indiacode.nic.in/bitstream/123456789/2095/1/200908.pdf

central

# THE SOUTH ASIAN UNIVERSITY ACT, 2008 _____________ ARRANGEMENT OF SECTIONS ____________ SECTIONS 1. Short title, extent and commencement. 2. Definitions. 3. Provisions of Agreement to have force of law. 4. Incorporation of South Asian University. 5. Jurisdiction. 6. Governing Board. 7. Objectives of University. 8. Powers of University. 9. University open to all persons. 10. Visitor. 11. Officers of University. 12. President and its powers. 13. Other officers. 14. Privileges and immunities of President and academic staff. 15. Authorities of University. 16. Executive Council. 17. Academic Council. 18. Constitution of other authorities. 19. Faculties and Departments. 20. Statutes. 21. Regulations. 22. Bye-laws. 23. Power to give retrospective effect to Statutes and Regulations. 24. Annual report. 25. Audit of accounts. 26. Conditions of service of employees. 27. Procedure of arbitration in disciplinary cases against students. 28. Proceedings of University authorities or bodies not invalidated by vacancies. 29. Protection of action taken in good faith. 30. Reference to SAARC Arbitration Council. 31. Statutes and Regulations and bye-laws to be published in Official Gazette and to be laid before Parliament. 32. Power to remove difficulties. THE SCHEDULE 1 ----- # THE SOUTH ASIAN UNIVERSITY ACT, 2008 ACT NO. 8 OF 2009 [11th January, 2009.] # An Act to give effect to the Agreement for the establishment of South Asian University and for matters connected therewith or incidental thereto. WHEREAS an Agreement for the establishment of the South Asian University was signed on behalf of the respective Governments of the Member States of the South Asian Association for Regional Co-operation (SAARC) on the 4th day of April, 2007; AND WHEREAS Article 1 of the said Agreement provides that the main campus of the University shall be located in India, therefore, it is expedient to make provisions for giving effect to the said Agreement; BE it enacted by Parliament in the Fifty-ninth Year of the Republic of India as follows:— **1. Short title, extent and commencement.—(1) This Act may be called the South Asian University** Act, 2008. (2) It extends to the whole of India and to campuses and centres established outside India in the SAARC region. (3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “Academic Council” means the Academic Council of the University; (b) “academic staff” means such categories of staff as are designated as academic staff by the Statutes; (c) “Agreement” means the Agreement for the establishment of the South Asian University; (d) “bye-laws” means the bye-laws of the University; (e) “Centre” means a unit of the University or of a University Institute providing teaching, consultancy and research facilities and includes a Regional Centre; (f) “employee” means any person appointed by the University and includes teachers and other staff of the University; (g) “Executive Council” means the Executive Council of the University; (h) “Faculty” means a Faculty of the University; (i) “Governing Board” means a Governing Board of the University constituted under section 6; (j) “Hall” means a unit of residence, by whatever name called, for students of the University provided, maintained or recognised by it; (k) “Host Country” means the Republic of India; (l) “Host Government” means the Government of the Host Country; (m) “Member States” means the Member States of the SAARC; (n) “prescribed” means prescribed by Statutes, Regulations or bye-laws; (o) “President” means the President of the University appointed under section 12; (p) “Project Office” means the project office set up for the purpose of carrying out necessary tasks for establishing the main campus of the University; (q) “Recognised institution” means an institution of higher learning maintained or recognised by, or associated with, the University; 2 ----- (r) “Regional Centre” means a centre established or maintained by the University at any place in the SAARC region for the purpose of coordinating and supervising the work of campuses or centres in such region and for performing such functions as may be conferred on such centre by the Governing Board; (s) “Regulations” means the Regulations of the University; (t) “SAARC” means an organisation known as the South Asian Association for Regional Co-operation established by the Charter of the South Asian Association for Regional Co-operation signed on eighth day of December, 1985; (u) “SAARC region” means the region comprising the territories of the Member States; _(v) “Schedule” means the Schedule of the Act;_ (w) “Statutes” means the Statutes of the University; (x) “teacher” means professor, reader, lecturer and research staff of the University appointed or recognised by the University for imparting instructions in the University or for giving guidance to students for pursuing any course of study of the University; and (y) “University” means the South Asian University incorporated under section 4. **3. Provisions of Agreement to have force of law.—Notwithstanding anything contrary contained in** any other law, the provisions of the Agreement set out in the Schedule shall have the force of law in India. **4. Incorporation of South Asian University.—(1) With effect from such date as the Central** Government may, by notification in the Official Gazette, appoint in this behalf, there shall be established, for the purposes of giving effect to provisions of the Agreement, a University to be called as South Asian University. (2) The University shall be a body corporate having perpetual succession and a common seal and shall sue and be sued by the said name. (3) The Headquarters of the University shall be at Delhi. (4) The University may establish or maintain campuses and centres at such other places within India and outside India in the SAARC region as it may deem fit. **5. Jurisdiction.—The jurisdiction of the University shall extend to whole of India and to campuses** and centres established outside India in the SAARC region: Provided that where the University establishes and maintains any campus or centre outside India at any place in the SAARC region, then the jurisdiction of the University shall extend to such campus or centre, subject to the provision of the Agreement and laws in force in any of the Member States within which such campus or centre is situated. **6. Governing Board.—(1) There shall be a Governing Board of the University consisting of two** members from each of the Member States of the SAARC and the President of the University: Provided that until the first Governing Board is formed, the Inter-Governmental Steering Committee of the SAARC shall function as an interim Governing Board. (2) The Governing Board shall be headed by the Chairperson who shall be elected from amongst the members of the Governing Board. (3) The members of the Governing Board shall be selected in such manner and for such term as provided in Article 5 of the Schedule. (4) The President of the University shall be the ex officio member of the Governing Board. (5) The Governing Board shall be responsible for all the policies and directions of the University and management of its affairs. (6) The Chairperson of the Board shall exercise such powers as may be prescribed by the Statutes. 3 ----- **7. Objectives of University.—The objectives of the University shall be—** (a) to disseminate and advance knowledge, wisdom and understanding by providing instructional and research facilities in such branches of learning as it may deem fit; (b) to take appropriate measures for promoting innovations in teaching-learning process, inter-disciplinary studies and application of knowledge to social advancement, and human welfare and to the promotion of regional peace and security; (c) to impart liberal and humane education towards capacity building of the South Asian nations in the domain of science, technology and other areas of higher learning vital for improving their quality of life and to give students the analytical tools needed for the pursuit of profession and inculcate in them the quality of leadership; (d) to foster in the students sound civic sense and to train them to become useful citizens of democratic societies; (e) to build a South Asian community of learning where students from countries of South Asia are able to develop their fullest intellectual potential and to create a South Asian community by strengthening regional consciousness; and (f) to harmonise the academic standards and accreditation norms in teaching, research and curriculum that are acceptable to all Member States. **8. Powers of University.—The University shall have the following powers, namely:—** (i) to provide for instruction in such branches of learning as the University may, from time to time, determine and to make provisions for research and for the advancement and dissemination of knowledge; (ii) to establish such special centres and specialised laboratories and such other units for research and instruction as are necessary for the furtherance of its objects; (iii) to plan and prescribe courses of study for degrees, diplomas, certificates or for any other purpose; (iv) to grant, subject to such conditions as the University may determine, diplomas or certificates and confer degrees or other academic distinctions on the basis of examinations, evaluation or any other method of testing and to withdraw any such diplomas, certificates, degrees or other academic distinctions for good and sufficient cause; (v) to confer honorary degrees or other distinctions in the manner prescribed by the Statutes; (vi) to organise and to undertake open learning programmes, extramural studies, training and extension services; (vii) to institute Chairs, principalships, professorships, readerships and lecturerships and other teaching and academic positions, required by the University and to appoint persons to such Chairs, Principalships, Professorships, Readerships and lecturerships and other teaching and academic positions; (viii) to appoint visiting professors, Emeritus professors, consultants, scholars and such other persons who may contribute to the advancement of the objects of the University; (ix) to recognise persons as Professors, Readers or Lecturers or otherwise as teachers of the University; (x) to create administrative and other posts as the University may deem necessary from time to time and to make appointments thereto; (xi) to lay down conditions of service of all categories of employees, including their code of conduct; (xii) to establish and maintain campuses, Centres, Regional Centres as may be determined from time to time; 4 ----- (xiii) to admit to its privileges institutions situated within its jurisdiction as the University institutions and to withdraw all or any of those privileges in accordance with such conditions as may be prescribed by the Statutes; (xiv) to co-operate or collaborate or associate with any other University or authority or institution of higher learning or any other public or private body, having in view the promotion of purposes and objects similar to those of the University, in such manner as may be prescribed and for such purposes as may be determined or agreed upon by the University; (xv) to determine standards of admission, including examination, evaluation or any other method of testing, to the University, and the institutions maintained by or admitted to the privileges of the University; (xvi) to demand and receive payment of fees and other charges as may be prescribed; (xvii) to establish Halls and to recognise, guide, supervise and control Halls not maintained by the University and other accommodation for students, and to withdraw any such recognition; (xviii) to make arrangements for promoting health and general welfare of students and employees of the University; (xix) to regulate and enforce discipline among the students and the employees, and to take such disciplinary measures in this regard as may be deemed by the University to be necessary; (xx) to institute and award Fellowships, Scholarships, Studentships and prizes; (xxi) to receive benefactions, donations and gifts in accordance with the regulations made by the Governing Board as per norms of the SAARC and to acquire, hold, manage and dispose of any property, movable or immovable, including trust and endowment properties, for the purposes or objects of the University and to invest funds in such manner as it deems fit; (xxii) to borrow, with the approval of the Governing Board, on the security of the University property, money for purposes of the University; (xxiii) to recognise for any purpose, either in whole or in part, any institution or members or students thereof on such terms and conditions as may, from time to time, be prescribed and to withdraw such recognition; (xxiv) to enter into any agreement for the incorporation of any other institution in the University and for taking its rights, properties and liabilities and for any other purpose not repugnant to this Act; (xxv) to make provision for research and advisory services and for that purpose to enter into such arrangements with other institutions or bodies as it may deem necessary; (xxvi) to provide for the printing, reproduction and publication of research and other work which may be issued by the University; (xxvii) to exercise such other powers accorded to it under the Agreement; and (xxviii) to do all such other acts as may be necessary, incidental or conducive to the promotion of all or any of the objects of the University. **9. University open to all persons.—The University shall be open to all persons irrespective of** gender, caste, creed, disability, ethnicity or socio-economic background and it shall not be lawful for the University to adopt or impose on any person, any test whatsoever of religious belief or profession in order to entitle him to be appointed as a teacher of the University or to hold any office therein or be admitted as a student in the University or to graduate thereat or to enjoy or exercise any privilege thereof. **10. Visitor.—(1) The Foreign Minister of the current Chair of the SAARC shall be the Visitor of the** University. (2) The Visitor shall have such powers as may be prescribed by the Statutes. 5 ----- **11. Officers of University.—(1) There shall be a President of the University, and such other officers** appointed in such manner as may be prescribed, who shall exercise such powers and functions as may be prescribed. (2) The President shall be the Chief Executive Officer of the University. **12. President and its powers.—(1) The President shall be appointed by the Governing Board in such** manner as may be prescribed by the Statutes: Provided that until the President is appointed, the Chief Executive Officer of the Project Office shall exercise the powers of the President and function as Chief Executive Officer of the University. (2) The President shall, as the Chief Executive Officer, exercise general supervision and control over the affairs of the University and shall be responsible for implementing the objectives of the University and fulfilling the policy directives of the Governing Board. (3) The President may, if he is of the opinion that immediate action is necessary on any matter, exercise any power conferred on any authority of the University by or under this Act and shall report to such authority at its next meeting the action taken by him on such matter: Provided that such exercise of power shall be made only in emergent situations and in no case in respect of creation and upgradation of posts, and appointments thereto: Provided further that if the authority concerned is of the opinion that such action ought not to have been taken, it may refer the matter to the Governing Board whose decision thereon shall be final. (4) The President, if he is of the opinion that any decision of any authority of the University is beyond the powers of the authority conferred by the provisions of this Act and the Statutes or that any decision taken is not in the interest of the University, may ask the authority concerned to review its decision within sixty days of such decision and if the authority refuses to review the decision either in whole or in part or no decision is taken by it within the said period of sixty days, the matter shall be referred to the Governing Board whose decision thereon shall be final. (5) The President or any officer of the University, authorised by him in this behalf, shall have the power to enter into agreements, sign documents and authenticate records on behalf of the University. (6) The President shall exercise such other powers as may be prescribed by the Statutes. **13. Other officers.—The manner of appointment and powers and duties of other officers of the** University shall be such as may be prescribed by the Statutes. **14. Privileges and immunities of President and academic staff.—The University, the President and** the members of the academic staff and, where applicable, their dependents or members of the family, shall enjoy such privileges and immunities as the Central Government may notify under section 3 of the United Nations (Privileges and Immunities) Act, 1947 (46 of 1947). **15. Authorities of University.—The following shall be the authorities of the University—** (a) the Executive Council, (b) the Academic Council, and (c) such other authorities as may be declared by the Governing Board in the Statutes to be the authorities of the University. **16. Executive Council.—(1) The Executive Council shall be the executive body of the University** and shall exercise powers to give effect to the directions or decisions of the President and the Governing Board. (2) The constitution of the Executive Council, the term of office of its members and its powers and functions shall be such as may be prescribed by the Statutes. **17. Academic Council.—(1) The Academic Council shall be the principal academic body of the** University and shall, subject to the provisions of this Act, the Statutes and Regulations, co-ordinate and exercise general supervision over the academic policies of the University. 6 ----- (2) The constitution of the Academic Council, the term of office of its members and its powers and functions shall be such as may be prescribed by the Statutes. **18. Constitution of other authorities.—The constitution of the authorities under clause (c) of** section 15, the terms of the office of the members of such authorities and their powers and duties shall be such as may be prescribed by the Statutes. **19. Faculties and Departments.—(1) The University shall have such faculties as may be prescribed** by the Statutes. (2) Each Faculty shall have such Departments or Schools of Studies as are prescribed by the Statutes, and each Department or Schools of Studies shall have such subjects of study as may be assigned to it by Regulations. **20. Statutes.—(1) Subject to the provisions of this Act, the Statutes may provide for all or any of the** following matters, namely:— (a) powers of the Visitor; (b) powers of the Chairperson of the Governing Board; (c) manner of appointment of the President and its powers; (d) the constitution, powers and functions of the Executive Council, Academic Council and other authorities and bodies of the University; (e) categories of academic staff; (f) appointment of teachers, academic staff and other employees of the University; (g) establishment of faculties of the University; (h) the conditions under which institution may be admitted to the privileges of the University and the withdrawal of such privileges; (i) the conferment of honorary degrees; (j) delegation of powers vested in the authorities or officers of the University; (k) setting up of a machinery for redressal of grievances between employees or the students and the University; and (l) all other matters which by this Act are to be or may be provided for by the Statutes. (2) The First Statutes shall be those as may be made for the operation of the University by the Inter-Governmental Steering Committee of the SAARC. (3) The Governing Board may, from time to time, make new or additional Statutes or may amend or repeal the Statutes referred to in sub-section (2): Provided that the Governing Board shall not make, amend or repeal any Statute affecting the status, powers or constitution of any authority of the University until such authority has been given an opportunity of expressing an opinion in writing on the proposed changes, and any opinion so expressed has been considered by the Governing Board. **21. Regulations.—(1) Subject to the provisions of this Act and the Statutes, the Regulations may** provide for all or any of the following matters, namely:— (a) the admission and enrolment of students to the University and institutions maintained by, or admitted to, the privileges of the University; (b) the courses of study to be laid down for all degrees, diplomas and certificates of the University; (c) the medium of instruction and examination; 7 ----- (d) the award of degrees, diplomas, certificates and other academic distinctions, the qualifications for the same and the means to be taken relating to the granting and obtaining of the same; (e) the fees to be charged for courses of study in the University and for admission to the examinations, degrees and diplomas of the University; (f) the institution of, and conditions for award of, fellowships, scholarships, studentships and prizes; (g) the conduct of examinations, including the term of office and manner of appointment and the duties of examining bodies, examiners and moderators; (h) the conditions of residence of students of the University; (i) the special arrangements, if any, which may be made for the residence, discipline and teaching of women students and the prescribing of special courses of studies for them; (j) the establishment of Centres, University Institutes, Departments, Schools of Studies, Boards of Studies, specialised laboratories and Committees; (k) the creation, composition and functions of any other body which is considered necessary for improving the academic life of the University; (l) the manner of co-operation and collaboration with other Universities, institutions and other bodies or associations; and (m) all other matters which by this Act or the Statutes are to be or may be provided for by the Regulations. (2) The First Regulations shall be made by the Chief Executive Officer of the Project Office with the prior approval of the Inter-Governmental Steering Committee and the Regulations so made may be amended, repealed or added to any time by the Governing Board in the manner prescribed by the Statutes. **22. Bye-laws.—The authorities of the University may make bye-laws consistent with this Act, the** Statutes and the Regulations for the conduct of their own business and not provided for by this Act, the Statutes or the Regulations, in the manner as may be prescribed by Statutes. **23. Power to give retrospective effect to Statutes and Regulations.—The power to make Statutes** or Regulations shall include the power to give retrospective effect, from a date not earlier than the date of commencement of this Act, to the Statutes or Regulations or any of them but no retrospective effect shall be given to any Statute or Regulation so as to prejudicially affect the interests of any person to whom such Statute or Regulation may be applicable. **24. Annual report.—(1) The annual report of the University shall be prepared under the direction of** the Governing Board and shall be considered by the University at its annual meeting. The annual report of the University shall also be presented to the session of the Council of Ministers of the SAARC. (2) The annual report of the University shall be circulated to all the SAARC Member States through the SAARC Secretariat. **25. Audit of accounts.—(1) The accounts of the University shall, once at least in every year and at** intervals of not more than fifteen months, be audited by any person or firm authorised by the Governing Board. (2) The accounts of the University shall be audited, as per existing norms as laid down by the SAARC. (3) The accounts, when audited shall be published, and a copy of the accounts together with the audited report shall be submitted to the Secretary-General of the SAARC. **26. Conditions of service of employees.—(1) Every employee of the University shall be appointed** under a written contract, which shall be lodged with the University and a copy of which shall be furnished to the employee concerned. 8 ----- (2) Any dispute arising out of the contract between the University and any employee shall be referred to the Tribunal for Arbitration constituted for that purpose. (3) The decision of the Tribunal shall be final and no suit shall lie in any court in respect of the matters decided by the Tribunal. (4) The procedure for regulating the work of the Tribunal under sub-section (2) shall be prescribed by the Statutes. **27. Procedure of arbitration in disciplinary cases against students.—Any dispute arising out of** any disciplinary action taken by the University against a student shall, at the request of such student, be referred to a Tribunal for Arbitration and the provisions of sub-sections (2), (3) and (4) of section 26 shall, as far as may be, apply to the reference made under this section. **28. Proceedings of University authorities or bodies not invalidated by vacancies.—No act or** proceedings of the University or any of its authorities or bodies shall be invalid merely by reason of the existence of a vacancy or vacancies among its members. **29. Protection of action taken in good faith.—No suit or other legal proceeding shall lie against the** University, any of its officers or employees for anything which is in good faith done or intended to be done in pursuance of any of the provisions of this Act. **30. Reference to SAARC Arbitration Council.—All differences arising out of the interpretation or** application of the Agreement shall be referred to the SAARC Arbitration Council, unless in any case it is agreed by the parties to have recourse to another mode of settlement. **31. Statutes and Regulations and bye-laws to be published in Official Gazette and to be laid** **before Parliament.—(1) The Statutes, Regulations and bye-laws made under this Act shall be published** in the Official Gazette. (2) Every Statute, Regulation or bye-law made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament. **32. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made under this section after the expiry of the period of three years from the commencement of this Act. (2) Every order made under sub-section (1) shall be laid, as soon as may be after it is made, before each House of Parliament. 9 ----- THE SCHEDULE (See section 3) PROVISIONS OF THE AGREEMENT TO HAVE THE FORCE OF LAW **Article 1** **Establishment of the South Asian University** 1. There is hereby established an institution to be known as the South Asian University (hereinafter referred to as the “University”), which shall be a non-state, non-profit self governing international educational institution with a regional focus for the purposes set forth in this agreement and shall have full academic freedom for the attainment of its objectives. 2. The main campus of the University shall be located in India. 3. The University shall have full legal Personality. 4. The legal capacity of the University shall, inter alia, include: (a) the power to confer degrees, diplomas and certificates; (b) the capacity to contract; (c) to sue and be sued in its name; (d) to acquire, hold and dispose of properties; (e) to establish campuses and centres in the region; and (f) to make rules, regulations and bye-laws for the operation of the University. **Article 2** **Objectives and Functions of the South Asian University** The objectives and functions of the University shall, inter alia, include: 1. To create a world class institution of learning that will bring together the brightest and the most dedicated students from all countries of South Asia irrespective of gender, caste, creed, disability, ethnicity or socio-economic background to impart to them liberal and humane education and to give them the analytical tools needed for the pursuit of a profession and inculcate in them the qualities of leadership. 2. To build a South Asian community of learning where every student will be able to develop her/his fullest intellectual potential and to create a South Asian community by strengthening regional consciousness. 3. To impart education towards capacity building of the South Asian nations in the domain of science, technology and other areas of higher learning vital for improving their quality of life. 4. To contribute to the promotion of regional peace and security by bringing together the future leaders of South Asia, and enhancing their understanding of each others' perspectives. 5. To foster in the students sound civic sense and to train them to become useful citizens of democratic societies. **Article 3** **Funding** The University shall be non-profit public-private partnership, which will seek support from each of the national Governments of member states and from other sources but will be autonomous and accountable to its board of trustees/governors. 10 ----- **Article 4** **The Fiscal Status** 1. The University and its campuses and centres shall be exempted, in the state where it is located, from paying and from collecting all direct and indirect forms of taxes and duties for the establishment and operations of the University. 2. The University shall enjoy treatment in relation to priorities, rates and charges for utilities that are not less favourable than that accorded to state owned enterprises and universities. 3. The University has the right to accept inter vivos as well as testamentary gifts, contributions, and donations in cash or in kind for the objectives of the University. All such gifts and donations from any legal or physical person are fully deductible without any limit against the income of such donor or contributor in the respective Founding States. 4. Taxation and social protection of the citizens of the Founding States employed by the University shall be regulated in accordance with the respective national legislation of the respective States. The employees of the University from countries other than the host country will be governed by the incometax laws of the home countries and will not be taxed as per the laws of the host country. **Article 5** **Governance Structure** 1. The University shall be governed by a Governing Board, composed of two members from each member state, and will be headed by a Chairperson. The Chairperson shall be elected from among the members of the Governing Board. 2. Each member of the Governing Board shall serve office for a fixed term of three years and shall not hold office for more than two consecutive terms. The members shall be selected from amongst the distinguished persons from the region and shall be responsible for the overall policies and directions of the University. The powers and functions of the Chairperson of the Governing Board and the role of the Board shall be decided as per the rules and regulations of the University. 3. The University shall be headed by a President, appointed by the Governing Board. The appointment, tenure, powers and functions shall be decided as per the rules and regulations of the University. 4. The President shall also be the Chief Executive Officer (CEO) and an _ex officio member of the_ Governing Board. The President as the CEO of the University, will report to the Board and hold office at the pleasure of the Board. He will be responsible for implementing the vision and the foundation statement of the University, ensuring the purpose and objectives of the University, upholding uniformly high academic standards, and fulfilling the policy directives of the Board of the University. 5. The President as the Chief Executive Officer of the University shall act under direction of the Governing Board. The President shall be assisted by an Executive Council. The President shall constitute the Academic Council, different committees and appoint the principal officers of the University as per bye-laws. **Article 6** **Visa and Resident Permit** The Member States shall provide appropriate visas to the students, faculty and staff for travel in all the SAARC Member States and grant necessary resident permit for students, faculty and administrative staff to work in the University and its different campuses, centres and collaborative educational institutions. 11 ----- **Article 7** **Recognition of the Degrees** This Agreement shall facilitate the mutual recognition of degrees and certificates awarded by the University in all the SAARC Member States at par with the degrees and certificates issued by their respective national universities/institutions. 12 -----

12-Feb-2009

12

The National Jute Board Act, 2008

https://www.indiacode.nic.in/bitstream/123456789/2092/1/A2009-12.pdf

central

## THE NATIONAL JUTE BOARD ACT, 2008 _____________ ARRANGEMENT OF SECTIONS ____________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II THE NATIONAL JUTE BOARD 3. Constitution and incorporation of Board. 4. Secretary and other officers. CHAPTER III FUNCTIONS OF THE BOARD 5. Functions of Board. CHAPTER IV PROPERTY AND CONTRACT 6. The Council and Society to vest in Board. 7. General effect of vesting of Council and Society in Board. 8. Licences, etc., to be deemed to have been granted to Board. 9. Tax exemption or benefits to continue have effect. 10. Guarantee to be operative. 11. Provisions in respect of officers and other employees of Council and Society. CHAPTER V POWERS OF THE CENTRAL GOVERNMENT 12. Directions by Central Government. 13. Supersession of Board. CHAPTER VI FINANCE, ACCOUNTS AND AUDIT 14. Grants and loans by Central Government. 15. Budget. 16. Annual report. 1 ----- SECTIONS 17. Accounts and audit. 18. Laying of annual and auditor’s report before Parliament. CHAPTER VII MISCELLANEOUS 19. Protection of action taken in good faith. 20. Officers and employees of Board to be public servants. 21. Power to make rules. 22. Power to make regulations. 23. Rules and regulations to be laid before Parliament. 24. Power to remove difficulties. 25. Amendment of Act 28 of 1983. 26. Repeal and savings. 2 ----- ## THE NATIONAL JUTE BOARD ACT, 2008 ACT NO. 12 OF 2009 [12th February 2009.] ## An Act to provide for the establishment of a National Jute Board for the development of the cultivation, manufacture and marketing of jute and jute products and for matters connected therewith and incidental thereto. BE it enacted by Parliament in the Fifty-ninth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the National Jute Board Act,** 2008. (2) It extends to the whole of India. (3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “appointed day” means such date[1] as the Central Government may, by notification in the Official Gazette, appoint for the purpose of section 3; (b) “Board” means the National Jute Board constituted under section 3; (c) “Chairperson” means the Chairperson of the Board; (d) “Council” means the Jute Manufactures Development Council established under section 3 of the Jute Manufactures Development Council Act, 1983 (27 of 1983); (e) “Jute” means the plants of jute, kenaf and mesta; (f) “jute manufacture” shall have the same meaning as assigned to it in the Jute Manufactures Cess Act, 1983(28 of 1983); (g) “member” means a member of the Board and includes the Chairperson; (h) “prescribed” means prescribed by rules made under this Act; (i) “regulations” means regulations made by the Board under this Act; (j) “Society” means the National Centre for Jute Diversification, a society set up by the Central Government in the Ministry of Textiles and registered under the Societies Registration Act,1860 (21 of 1860); (k) “year” means the year commencing on the 1st day of April and ending on the 31st day of March next following. CHAPTER II THE NATIONAL JUTE BOARD **3. Constitution and incorporation of Board.—(1) With effect from the appointed day, the Central** Government shall, by notification in the Official Gazette, constitute, for the purposes of this Act, a Board to be called the National Jute Board. (2) The Board shall be a body corporate by the name aforesaid, having perpetual succession and a common seal, with power to acquire, hold and dispose of property, both movable and immovable, and to contract, and shall by the said name sue and be sued. 1. 1st April 2011, vide notification F. No. 3/6/2007-Jute, 30th March, 2010, see Gazette of India, Extraordinary, Part I, sec. 2 3 ----- (3) The head office of the Board shall be at Kolkata in the State of West Bengal or such other place as the Central Government may, by notification in the Official Gazette, specify and the Board may, with the previous approval of the Central Government, establish offices or agencies at other places in or outside India. (4) The Board shall consist of the following members, namely:— (a) the Secretary in charge of the ministry of the Central Government dealing with textiles, who shall be the ex officio Chairperson of the Board; (b) three Members of Parliament of whom two shall be elected from among themselves by the members of the House of the People and one from among themselves by the members of the Council of States; (c) the Additional Secretary and Financial Adviser, Ministry of Textiles, Government of India, _ex officio;_ (d) the Joint Secretary (Jute) in the Ministry of Textiles, Government of India, ex officio; (e) two members of the rank of Joint Secretary to be nominated by the Central Government to represent respectively the ministries of the Central Government dealing with— (i) agriculture, and (ii) food and public distribution; (f) three members to be nominated by the Central Government by rotation in the alphabetical order to represent respectively the Governments of the States of Andhra Pradesh, Assam, Bihar, Meghalaya, Orissa, Tripura and West Bengal; the nomination shall be from officials of the State Government holding the rank of Secretary to the State Government and dealing with Jute or Textile matters; (g) three members of jute farmers of which one from State of West Bengal and two from other States on rotational basis to be nominated by the Central Government; (h) three members of jute workers of which one from State of West Bengal and two from other States nominated by the Central Government on rotational basis; (i) two experts from the field of jute technology and related field to be nominated by the Central Government; (j) two members from the “micro enterprises”, “small enterprises” and “medium enterprises” dealing in jute industry to be nominated by the Central Government. _Explanation.—For the purpose of this clause, the expressions “medium enterprise”, “micro_ enterprise” and “small enterprise” shall have the meanings respectively assigned to them in clause (g), clause (h) and clause (m) of section 2 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006); (k) two members to be appointed by the Central Government to represent the jute industry in the organised sector; (l) two members to be appointed by the Central Government to represent the jute industry in the decentralised sector; (m) two members to be appointed by the Central Government to represent the exporters of jute products; (n) the Director, Indian Jute Industries Research Association, ex officio; (o) the Principal, Institute of Jute Technology, ex officio; (p) the Director, National Institute of Research on Jute and Allied Fibre Technology, Kolkata, _ex officio;_ (q) the Director, Central Research Institute for Jute and Allied Fibres, ex officio; 4 ----- (r) the Chairman and Managing Director, Jute Corporation of India, ex officio; (s) the Jute Commissioner, ex officio; (t) the Secretary, National Jute Board, who shall be the ex officio Member-Secretary of the Board. (5) The term of office of the members, other than the _ex officio members, and the manner of filling_ vacancies among, and the procedure to be followed in the discharge of their functions by, such members shall be as may be prescribed. (6) The office of members of the Board shall not disqualify its holder for being chosen as, or for being a member of either House of Parliament. (7) The Chairperson shall, in addition to presiding over the meetings of the Board, exercise and discharge such powers and duties of the Board as may be assigned to him by the Board and such other powers and duties as may be prescribed. (8) The Board shall elect from among its members a Vice-Chairperson who shall exercise such of the powers and perform such of the functions of the Chairperson as may be prescribed or as may be delegated to him by the Chairperson. (9) The Board shall meet at such times and places and shall observe such procedure in regard to the transaction of business at its meetings (including the quorum at meetings) as may be determined by regulations. **4. Secretary and other officers.—(1) The Central Government may appoint the Secretary and such** other officers and employees as it considers necessary, for the efficient discharge of the functions of the Board under this Act. (2) The terms and conditions of service of the Secretary and other officers and employees of the Board shall be such as may be determined by regulations. CHAPTER III FUNCTIONS OF THE BOARD **5. Functions of Board.—(1) It shall be the duty of the Board to promote the development of jute and** jute products by such measures as it thinks fit. (2) Without prejudice to the generality of the foregoing provision, the Board may undertake measures to— (i) evolve an integrated approach to jute cultivation in the matters of formulation of schemes, extension work, implementation and evaluation of schemes aimed at increasing the yield of jute and improving the quality thereon; (ii) promote production of better quality raw jute; (iii) enhance productivity of raw jute; (iv) promote or undertake arrangements for better marketing and stabilisation of the prices of raw jute; (v) promote standardisation of raw jute and jute products; (vi) suggest norms of efficiency for jute industry with a view to eliminating waste, obtaining optimum production, improving quality and reducing costs; (vii) propagate information useful to the growers of raw jute and manufacturers of jute products; (viii) promote and undertake measures for quality control of raw jute and jute products; (ix) assist and encourage studies and research for improvement of processing, quality, techniques of grading and packaging of raw jute; (x) promote or undertake surveys or studies aimed at collection and formulation of statistics regarding raw jute and jute products; 5 ----- (xi) promote standardisation of jute manufactures; (xii) promote the development of production of jute manufactures by increasing the efficiency and productivity of the jute industry; (xiii) sponsor, assist, coordinate, encourage or undertake scientific, technological, economic and marketing research pertaining to the jute sector; (xiv) maintain and improve existing markets and to develop new markets within the country and outside for jute manufactures and to devise marketing strategies in consonance with the demand for such manufactures in the domestic and international markets; (xv) sponsor, assist, coordinate or encourage scientific, technological and economic research in the matters related to materials, equipment, methods of production, product development including discovery and development of new materials, equipment and methods and improvements in those already in use in the jute industry; (xvi) provide and create necessary infrastructural facilities and conditions conducive to the development of diversified jute products by way of assisting the entrepreneurs, artisans, craftsman, designers, manufacturers, exporters, non-Governmental agencies in the following manner, namely:— (a) transfer of technology from research and development institutions and other organisations in India and abroad; (b) providing support services to the entrepreneurs for the implementation of their projects including technical guidance and training; (c) organising entrepreneurial development programmes; (d) planning and executing market promotion strategies including exhibitions, demonstrations, media campaigns in India and abroad; (e) providing financial assistance by way of subsidy or seed capital; (f) providing a forum to the people engaged or interested in diversified jute products for interacting with various national and international agencies, engaged in the jute and jute textile sector; (xvii) organise workshops, conferences, lectures, seminars, refresher courses and set up study groups and conduct training programmes for the purpose of promotion and development of jute and jute products; (xviii) undertake research on jute seed to improve quality and to shorten the gestation period of jute crop; (xix) incorporate measures for sustainable Human Resource Development of the jute sector and to provide necessary funds for the same; (xx) modernisation of jute sector and technology development; (xxi) take steps to protect the interests of jute growers and workers and to promote their welfare by improving their livelihood avenues; (xxii) secure better working conditions and provisions and improvement of amenities and incentives for workers engaged in the jute industry; (xxiii) register jute growers and manufacturers on optional basis; (xxiv) collect statistics with regard to jute and jute products for compilation and publication; (xxv) subscribe to the share capital of or enter into any arrangement (whether by way of partnership, joint venture or any other manner) with any other body corporate for the purpose of promoting the jute sector or for promotion and marketing of jute and jute products in India and abroad. 6 ----- (3) It shall be the duty of the Board— (a) to advise the Central Government on all matters relating to the development of raw jute and the jute industry, including import and export of jute and jute products; (b) to prepare and furnish reports relating to the jute sector as may be required by the Central Government from time to time. CHAPTER IV PROPERTY AND CONTRACT **6. The Council and Society to vest in Board.—(1) On and from the appointed day, there shall be** transferred to, and vest in, the Board constituted under section 3, the Council and the Society. (2) The Council and the Society which is transferred to, and which vests in, the Board under sub section (1) shall be deemed to include all assets, rights, powers, authorities and privileges and all property movable and immovable, real or personal, corporeal or incorporeal, present or contingent, of whatever nature and wheresoever situate, including lands, buildings, machinery, equipments, cash balances, capital, reserves, reserve funds, investments, tenancies, leases and book debts and all other rights and interests arising out of such property as were immediately before the appointed day in the ownership or possession or power of the Council, or as the case may be, the Society, whether within or outside India, all books of account and documents relating thereto and shall also be deemed to include all borrowings, liabilities and obligations of whatever kind then subsisting of the Society, or as the case may be, the Council. **7. General effect of vesting of Council and Society in Board.—(1) All contracts, agreements and** working arrangements subsisting immediately before the appointed day and affecting the Council, or, as the case may be, the Society shall, in so far as they relate to the Council, or, as the case may be, the Society, cease to have effect or be enforceable against the Council, or, as the case may be, the Society and shall be of as full force and effect against or in favour of the Board in which the Council and the Society have vested by virtue of this Act and enforceable as fully and effectively as if, instead of the Council, or, as the case may be, the Society, the Board had been named therein or had been a party thereto. (2) Any proceeding, suit or cause of action pending or existing immediately before the appointed day by or against the Council or the Society may, as from that day, be continued and enforced by or against the Board in which it has vested by virtue of this Act, as it might have been enforced by or against the Council or the Society if this Act had not been passed, and shall cease to be enforceable by or against the Council or, as the case may be, the Society. **8. Licences, etc., to be deemed to have been granted to Board.—With effect from the appointed** day, all licences, permits, quotas and exemptions, granted to the Council or the Society in connection with the affairs and business of the Council, or, as the case may be, the Society, under any law for the time being in force, shall be deemed to have been granted to the Board in which the Council and the Society have vested by virtue of this Act. **9. Tax exemption or benefit to continue have effect.—(1) Where any exemption from, or any** assessment with respect to, any tax has been granted or made or any benefit by way of set off or carry forward, as the case may be, of any unabsorbed depreciation or investment allowance or other allowance or loss has been extended or is available to the Council or the Society, under the Income-tax Act, 1961 (43 of 1961), such exemption, assessment or benefit shall continue to have effect in relation to the Board in which the Council and the Society have vested by virtue of this Act. (2) Where any payment made by the Council or the Society is exempted from deduction of tax at source under any provision of the Income-tax Act, 1961(43 of 1961) the exemption from tax will continue to be available as if the provisions of the said Act made applicable to the Council or the Society were operative in relation to the Board in which the Council and the Society have vested by virtue of this Act. (3) The transfer and vesting of the Council or the Society in terms of section 6 shall not be construed as a transfer within the meaning of the Income-tax Act, 1961(43 of 1961) for the purposes of capital gains. 7 ----- **10. Guarantee to be operative.—Any guarantee given for or in favour of the Council or the Society** with respect to any loan or lease finance shall continue to be operative in relation to the Board in which the Council and the Society have vested by virtue of this Act. **11. Provisions in respect of officers and other employees of Council and Society.—(1) (a) Every** officer or other employee of the Council serving in its employment immediately before the appointed day shall, in so far as such officer or other employee is employed in connection with the Council which has vested in the Board by virtue of this Act, becomes, as from the appointed day, an officer, or, as the case may be, other employee of the Board. (b) Every officer or other employee of the Society serving in its employment immediately before the appointed day shall, in so far as such officer or other employee is employed in connection with the Society which has vested in the Board by virtue of this Act, becomes, as from the appointed day, an officer, or, as the case may be, other employee of the Board. (2) Every officer or other employee of the Council or the Society who becomes an officer, or as the case may be, other employee of the Board, as referred to in sub-section (1), shall hold his office or service therein by the same tenure, at the same remuneration, upon the same terms and conditions, with the same obligations and rights and privileges as to leave, insurance, superannuation scheme, provident fund, other funds, retirement, pension, gratuity and other benefits as he would have held under the Council, or, as the case may be, the Society, if it had not vested in the Board and shall continue to do so as an officer or other employee, as the case may be, of the Board, or until the expiry of a period of one year from the appointed day if such officer or other employee opts not to be the officer or other employee of the Board within such period: Provided that if the Board thinks it expedient to extend the period so fixed, it may extend the same up to a maximum period of one year. (3) Where an officer or other employee of the Council or the Society opts under sub-section (2) not to be in the employment or service of the Board in which the Council and the Society have vested, such officer or other employee shall be deemed to have resigned from the respective cadre. (4) Notwithstanding anything contained in the Industrial Disputes Act, 1947(14 of 1947) or in any other law for the time being in force, the transfer of the services of any officer or other employee of the Council or the Society to the Board shall not entitle such officer or other employee to any compensation under this Act or any other law for the time being in force and no such claim shall be entertained by any court, tribunal or other authority. (5) The officers and other employees who have retired before the appointed day from the service of the Council or the Society and are entitled to any benefits, rights or privileges shall be entitled to receive the same benefits, rights or privileges from the Board in which the Council and the Society have vested. (6) The trusts of the Provident Fund and Group Insurance and Superannuation Scheme of the Council or the Society for the welfare of officers or employees would continue to discharge their functions in the Board as was being done hitherto in the Council or the Society and tax exemption granted to Provident Fund or Group Insurance and Superannuation Scheme would continue to be applied to the Board. (7) After the expiry of the period of one year, or the extended period, as referred to in sub-section (2), all the officers and other employees transferred and appointed to the Board, other than those opting not to be the officers or employees of the Board within such period, shall be governed by the rules and regulations made by the Board in respect of the service conditions of the officers and other employees of the said Board. CHAPTER V POWERS OF THE CENTRAL GOVERNMENT **12. Directions by Central Government.—(1) The Board shall, in the discharge of its functions and** duties under the relevant statute, be bound by the directions on questions of policy as the Central Government may give in writing to it from time to time: 8 ----- Provided that the Board shall, as far as practicable, be given an opportunity to express its views before any direction is given. (2) The decision of the Central Government, whether a question is one of policy or not, shall be final. **13. Supersession of Board.—(1) If at any time the Central Government is of the opinion that—** (a) on account of grave emergency, the Board is unable to discharge the functions and duties imposed on it by or under the provisions of this Act; or (b) the Board has persistently made default in complying with any direction issued by the Central Government under this Act or in the discharge of the functions and duties imposed on it by or under the provisions of this Act and as a result of such default, the financial position of the Board or the administration of the Board has deteriorated; or (c) the circumstances exist which render it necessary in the public interest so to do, the Central Government may, by notification in the Official Gazette, supersede the Board for such period, not exceeding six months, as may be specified in the notification. (2) Upon the publication of a notification— (a) all the members of the Board shall, as from the date of supersession vacate their offices as such; (b) all the powers, functions and duties which may, by or under the provisions of the relevant Act, be exercised or discharged by or on behalf of the Board shall, until the Board is reconstituted under sub-section (3), be exercised and discharged by such person or persons as the Central Government may direct; and (c) all property owned or controlled by the Board shall, until the Board is reconstituted, vest in the Central Government. (3) On the expiration of the period of supersession specified in the notification issued under sub-section (1), the Central Government may reconstitute the Board by a fresh appointment and in such case any person or persons who vacated their offices under clause (a) of sub-section (2), shall not be deemed disqualified for appointment: Provided that the Central Government may, at any time, before the expiration of the period of supersession, take action under this sub-section. (4) The Central Government shall cause a notification to be issued under sub-section (1) and a full report of any action taken under this section and the circumstances leading to such action will be laid before each House of Parliament at the earliest. CHAPTER VI FINANCE, ACCOUNTS AND AUDIT **14. Grants and loans by Central Government.—(1) The Central Government may, after due** appropriation made by Parliament by law, in this behalf, make to the Board grants and loans of such sums of money as that Government may consider necessary. (2) There shall be constituted a fund to be called the Jute Board Fund and there shall be credited thereto— (a) any grants and loans made to the Board by the Central Government; (b) all sums received by the Board from such other sources as may be decided upon by the Central Government. (3) The Fund shall be applied for meeting— (a) salary, allowances and other remuneration of the members, officers and other employees of the Board; 9 ----- (b) expenses of the Board in the discharge of its functions; and (c) expenses on objects and for purposes authorised by this Act. **15. Budget.—The Board shall prepare in such form and at such time during each financial year, as** may be prescribed, its budget for the next financial year, showing the estimated receipts and expenditure of the Board, and forward the same to the Central Government. **16. Annual report.—The Board shall prepare in such form and at such time, each financial year, as** may be prescribed, its annual report, giving a full account of its activities during the previous financial year and submit a copy thereof to the Central Government. **17. Accounts and audit.—The accounts of the Board shall be maintained and audited in such manner** as may, in consultation with the Comptroller and Auditor-General of India, be prescribed and the Board shall furnish to the Central Government before such date, as may be prescribed, an audited copy of its accounts, together with the auditor's report thereon. **18. Laying of annual and auditor’s report before Parliament.—The Central Government shall** cause the annual report and auditor's report to be laid, as soon as may be after they are received, before each House of Parliament. CHAPTER VII MISCELLANEOUS **19. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall** lie against the Central Government, or the Board or any member of the Board, or any officer or other employee of the Central Government or of the Board or any other person authorised by the Central Government or the Board, for anything which is in good faith done or intended to be done under this Act or the rules or regulations made thereunder. **20. Officers and employees of Board to be public servants.—All officers and employees of the** Board shall, while acting or purporting to act in pursuance of the provisions of this Act or of any rule or regulation made thereunder, be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **21. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules to carry out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the term of office and other conditions of service of the members of the Board under sub-section (5) of section 3; (b) the powers and duties of the Chairperson under sub-section (7) of section 3; (c) the powers and functions of the Vice-Chairperson under sub-section (8) of section 3; (d) the form in which, and the time at which, the Board shall prepare its budget under section 15; (e) the form in which, and the time at which, the Board shall prepare its annual report under section 16; (f) the manner in which the accounts of the Board shall be maintained and audited, and the date before which the audited copy of the accounts may be furnished to the Central Government under section 17; (g) any other matter which is to be, or may be, prescribed or in respect of which provision is to be, or may be, made by the rules. **22. Power to make regulations.—(1) The Board may, with the previous approval of the Central** Government, by notification in the Official Gazette, make regulations consistent with the provisions of this Act and the rules generally to carry out the purposes of this Act. 10 ----- (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:— (a) the manner in which the business of the Board shall be conducted under sub-section (9) of section 3; and (b) the terms and conditions of service of the Secretary and other officers and employees of the Board under section 4. **23. Rules and regulations to be laid before Parliament.—Every rule and every regulation made** under this Act shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. **24. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order, published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty: Provided that no such order shall be made after the expiry of a period of two years from the commencement of this Act. (2) Every order made under sub-section (1) shall be laid, as soon as may be after it is made, before each House of Parliament. **25. Amendment of Act 28 of 1983.—In the Jute Manufactures Cess Act, 1983,—** (a) in section 3,— (i) in sub-section (1), for the words and figures “the Jute Manufactures Development Council Act, 1983”, the words and figures “the National Jute Board Act, 2008 (12 of 2009)” shall be substituted; (ii) in sub-section (2), the words “and Salt” shall be omitted; (iii) in sub-section (4), the words “and Salt” shall be omitted; (b) in section 4, for the words, brackets and figures “the Jute Manufactures Development Council, from time to time, from out of such proceeds (after deducting the cost of collection which shall not exceed four per cent. of such proceeds) such sums of money as it may think fit for being utilised for the purposes of the Jute Manufactures Development Council Act, 1983 (27 of 1983), the words, brackets and figures “the National Jute Board from time to time, from out of such proceeds (after deducting the cost of collection which shall not exceed four per cent. of such proceeds) such sums of money as it may think fit for being utilised for the purposes of the National Jute Board Act, 2008 (28 of 1983), shall be substituted. **26. Repeal and savings.—(1) On and from the appointed day, the Jute Manufactures Development** Council Act, 1983 (27 of 1983) shall stand repealed. (2) Notwithstanding such repeal, anything done or any action taken or purported to have been done or taken under the Act so repealed shall, in so far as it is not inconsistent with the provisions of this Act, be deemed to have been done or taken under the corresponding provisions of this Act. 11 -----

16-Mar-2009

24

The National Capital Territory of Delhi Laws (Special Provisions) Act, 2009

https://www.indiacode.nic.in/bitstream/123456789/2106/5/a2009-24.pdf

central

# THE NATIONAL CAPITAL TERRITORY OF DELHI LAWS (SPECIAL PROVISIONS) ACT, 2009 ________ ARRANGEMENT OF SECTIONS _______ SECTIONS 1. Short title, extent, commencement and duration. 2. Definitions. 3. Enforcement to be kept in abeyance. 4. Provisions of this Act not to apply in certain cases. 5. Power of Central Government to give directions. 6. Validation of acts done or omitted to be done, etc., during 1st January, 2009 up to the date of commencement of this Act. 1 ----- # THE NATIONAL CAPITAL TERRITORY OF DELHI LAWS (SPECIAL PROVISIONS) ACT, 2009 ACT NO. 24 OF 2009 [16th March, 2009.] # An Act to make special provisions for the National Capital Territory of Delhi for a further period up to the 31st day of December, 2009 and for matters connected therewith or incidental thereto. WHEREAS there had been phenomenal increase in the population of the National Capital Territory of Delhi owing to migration and other factors resulting in tremendous pressure on land and infrastructure leading to encroachment or unauthorised developments which are not in consonance with the concept of planned development as provided in the Master Plan of Delhi, 2001 and the relevant Acts and building bye-laws made thereunder; AND WHEREAS the Master Plan of Delhi, 2001 was extensively modified and notified by the Central Government on the 7th day of February, 2007 with the perspective for the year 2021 keeping in view the emerging new dimensions in urban development vis-a-vis the social, financial and other ground realities; AND WHEREAS the Master Plan of Delhi with the perspective for the year 2021 specifically provides for strategies for housing for urban poor as well as to deal with the informal sector; AND WHEREAS a strategy and a scheme has been prepared by the local authorities in the National Capital Territory of Delhi for regulation of urban street vendors in accordance with the National Policy for Urban Street Vendors and the Master Plan for Delhi, 2021; AND WHEREAS based on the policy finalised by the Central Government regarding regularisation of unauthorised colonies, village abadi area and its extension, the guidelines and regulations for this purpose have been issued; AND WHEREAS more time is required for orderly implementation of scheme regarding hawkers and urban street vendors and for regularisation of unauthorised colonies, village abadi area and its extension; AND WHEREAS the revised policy and orderly arrangements for relocation and rehabilitation of slum dwellers and Jhuggi-Jhompri clusters in the National Capital Territory of Delhi is under consideration of the Government; AND WHEREAS policy regarding existing farm houses involving construction beyond permissible building limits, schools, dispensaries, religious institutions and cultural institutions and storages, warehouses and godowns used for agricultural inputs or produce (including dairy and poultry) in rural areas built on agricultural land is under consideration of the Central Government; AND WHEREAS the National Capital Territory of Delhi Laws (Special Provisions) Act,2007 (43 of 2007) was enacted on the 5th day of December, 2007 to make special provisions for the areas of National Capital Territory of Delhi for a period up to the 31st day of December, 2008and has ceased to operate after the 31st day of December, 2008; AND WHEREAS it is expedient to have a law in terms of the Master Plan of Delhi,2021, in continuation of the said Act for a period up to the 31st day of December, 2009 to provide temporary relief and to minimise avoidable hardships and irreparable loss to the people of the National Capital Territory of Delhi against any action by the concerned agency in respect of persons covered by the policies referred to above. BE it enacted by Parliament in the Sixtieth Year of the Republic of India as follows:— **1. Short title, extent, commencement and duration.—(1) This Act may be called the National** Capital Territory of Delhi Laws (Special Provisions) Act, 2009. 2 ----- (2) It extends to the National Capital Territory of Delhi. (3) It shall be deemed to have come into force on the 1st day of January, 2009. (4) It shall cease to have effect on the 31st day of December, 2009, except as respects things done or omitted to be done before such cesser, and upon such cesser section 6 of the General Clauses Act, 1897, (10 of 1897) shall apply as if this Act had then been repealed by a Central Act. **2. Definitions.—(1) In this Act, unless the context otherwise requires,—** (a) “building bye-laws” means bye-laws made under section 481 of the Delhi Municipal Corporation Act, 1957 (66 of 1957) or the bye-laws made under section 188, sub-section (3) of section 189 and sub-section (1) of section 190 of the Punjab Municipal Act, 1911 (Punjab Act 3 of 1911) as in force in New Delhi or the regulations made under sub-section (1) of section 57 of the Delhi Development Act, 1957 (61 of 1957), relating to buildings; (b) “Delhi” means the entire area of the National Capital Territory of Delhi except the Delhi Cantonment as defined in clause (11) of section 2 of the Delhi Municipal Corporation Act, 1957 (66 of 1957); (c) “encroachment” means unauthorised occupation of Government land or public land by way of putting temporary, semi-permanent or permanent structure for residential use or commercial use or any other use; (d) “local authority” means the Delhi Municipal Corporation established under the Delhi Municipal Corporation Act, 1957 (66 of 1957), or the New Delhi Municipal Council established under the New Delhi Municipal Council Act, 1994 (44 of 1994) or the Delhi Development Authority established under the Delhi Development Act, 1957 (61 of 1957), legally entitled to exercise control in respect of the areas under their respective jurisdiction; (e) “Master Plan” means the Master Plan for Delhi with the perspective for the year 2021, notified _vide notification number S.O.141 (E), dated the 7th February, 2007, under the Delhi_ Development Act, 1957 (61 of 1957); (f) “notification” means a notification published in the Official Gazette; (g) “punitive action” means action taken by a local authority under the relevant law against unauthorised development and shall include demolition, sealing of premises and displacement of persons or their business establishment from their existing location, whether in pursuance of court orders or otherwise; (h) “relevant law” means in case of— (i) the Delhi Development Authority, the Delhi Development Act, 1957 (61 of 1957); (ii) the Municipal Corporation of Delhi, the Delhi Municipal Corporation Act, 1957 (66 of 1957); and (iii) the New Delhi Municipal Council, the New Delhi Municipal Council Act, 1994 (44 of 1994); (i) “unauthorised development” means use of land or use of building or construction of building or development of colonies carried out in contravention of the sanctioned plans or without obtaining the sanction of plans, or in contravention of the land use as permitted under the Master Plan or Zonal Plan or layout plan, as the case may be, and includes any encroachment. (2) Words and expressions used but not defined herein shall have the meanings respectively assigned to them in the Delhi Development Act, 1957 (61 of 1957), the Delhi Municipal Corporation Act, 1957 (66 of 1957) and the New Delhi Municipal Council Act, 1994 (44 of 1994). **3. Enforcement to be kept in abeyance.—(1) Notwithstanding anything contained in any relevant** law or any rules, regulations or bye-laws made thereunder, the Central Government shall before the expiry of this Act, take all possible measures to finalise norms, policy guidelines, feasible strategies and make orderly arrangements to deal with the problem of encroachment or unauthorised development in the form of encroachment by slum dwellers and Jhuggi-Jhompri clusters, hawkers and urban street vendors, 3 ----- unauthorised colonies, village _abadi area (including urban villages) and its extension, existing farm_ houses involving construction beyond permissible building limits and schools, dispensaries, religious institutions, cultural institutions, storages, warehouses and godowns used for agricultural inputs or produce (including dairy and poultry) in rural areas built on agricultural land, as mentioned below: (a) policy for relocation and rehabilitation of slum dwellers and _Jhuggi-Jhompri clusters in_ accordance with the provisions of the Master Plan of Delhi, 2021 to ensure development of Delhi in a sustainable, planned and humane manner; (b) scheme and orderly arrangements for regulation of urban street vendors in consonance with the national policy for urban street vendors and hawkers as provided in the Master Plan of Delhi, 2021; (c) orderly arrangements pursuant to guidelines and regulations for regularisation of unauthorised colonies, village abadi area (including urban villages) and its extension, as existed on the 31st day of March, 2002, and where construction took place even beyond that date and up to the 8th day of February, 2007; (d) policy regarding existing farm houses involving construction beyond permissible building limits; and (e) policy regarding schools, dispensaries, religious institutions, cultural institutions, storages, warehouses and godowns used for agricultural inputs or produce (including dairy and poultry) in rural areas built on agricultural land. (2) Subject to the provisions contained in sub-section (1) and notwithstanding any judgment, decree or order of any court, status quo— (i) as on the 1st day of January, 2006, in respect of encroachment or unauthorised development; and (ii) in respect of unauthorised colonies, village _abadi area (including urban villages) and its_ extension, which existed on the 31st day of March, 2002 and where construction took place even beyond that date and up to the 8th day of February, 2007, mentioned in sub-section (1), shall be maintained. (3) All notices issued by any local authority for initiating action against encroachment or unauthorised development referred to in sub-section (1), shall be deemed to have been suspended and no punitive action shall be taken till the 31st day of December, 2009. (4) Notwithstanding any other provision contained in this Act, the Central Government may, at any time before the 31st day of December, 2009, withdraw the exemption by notification in respect of encroachment or unauthorised development mentioned in sub-section (2) or sub-section (3), as the case may be. **4. Provisions of this Act not to apply in certain cases.—During the period of operation of this Act,** no relief shall be available under the provisions of section 3 in respect of the following encroachment or unauthorised development, namely:— (a) encroachment on public land except in those cases which are covered under clauses (a), (b) and (c) of sub-section (1) of section 3; (b) removal of slums and _Jhuggi-Jhompri dwellers, hawkers and urban street vendors,_ unauthorised colonies or part thereof, village abadi area (including urban villages) and its extension in accordance with the relevant policies approved by the Central Government for clearance of land required for specific public projects. **5. Power of Central Government to give directions.—The Central Government may, from time to** time, issue such directions to the local authorities as it may deem fit, for giving effect to the provisions of this Act and it shall be the duty of the local authorities, to comply with such directions. 4 ----- **6. Validation of acts done or omitted to be done, etc., during 1st January, 2009 up to the date of** **commencement of this Act.—Notwithstanding any judgment, decree or order of any court, all things** done, or, omitted to be done, and all action taken, or, not taken, during the period beginning on or after the 1st day of January, 2009 and ending immediately before the date of commencement of this Act, shall, in so far as they are in conformity with the provisions of this Act, be deemed to have been done, or, omitted to be done, or, taken, or, not taken, under these provisions as if such provisions were in force at the time such things were done or omitted to be done and action taken or not taken during the aforesaid period. ________ 5 -----

20-Mar-2009

27

The Prevention and Control of Infectious and Contagious Diseases in Animals Act, 2009

https://www.indiacode.nic.in/bitstream/123456789/2101/1/AAa2009__27.pdf

central

# THE PREVENTION AND CONTROL OF INFECTIOUS AND CONTAGIOUS DISEASES IN ANIMALS ACT, 2009 ____________ ARRANGEMENT OF SECTIONS ___________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II CONTROL OF SCHEDULED DISEASES 3. Appointment of Veterinary Officers. 4. Reporting scheduled diseases obligatory. 5. Duty to segregate infected animals. 6. Notification of controlled areas and free areas. 7. Prohibition of movement of animals from controlled area. 8. Vaccination, marking and issue of vaccination certificate. 9. Contents of vaccination certificate. 10. Entry and exit of animals into controlled area and free area. 11. Precautionary measures in relation to controlled areas. 12. Prohibition of markets, fairs, exhibition, etc., in the controlled areas. 13. Prohibition of bringing of infected animals into market and other places. 14. Check Posts and Quarantine Camps. 15. Inspection and detention of animals at Check Posts and Quarantine Camps. 16. Entry and exit of vaccinated animals into controlled and free areas. 17. Appointment of Competent Officers. 18. Cleaning and disinfection of carriers. 19. Powers of entry and inspection. CHAPTER III INFECTED AREAS 20. Declaration of infected areas. 21. Effect of declaration of infected areas. 22. Denotification of infected area. CHAPTER IV INFECTED ANIMALS 23. Segregation, examination and treatment of infected animals. 24. Drawing samples from animals. 25. Resort to euthanasia for infected animals. 26. Disposal of carcass. 27. Powers of Veterinary Officer and Veterinarian to hold post-mortem examinations. 28. Seizure and removal of certain animals. 1 ----- CHAPTER V ENFORCEMENTAND PENALTIES SECTIONS 29. Enforcement of orders and recovery of expenses. 30. Village Officers, etc., to assist. 31. Penalty for issuing vaccination certificate without authority or administering defective vaccine. 32. Penalties. 33. Penalty for placing infected animal or carcass in river, etc. 34. Offences by companies. CHAPTER VI PRECAUTIONARY MEASURES ON CAUSATIVE ORGANISM, ETC. 35. Prevention of escape of causative organism. CHAPTER VII MISCELLANEOUS 36. Power to delegate. 37. Officers and authorities to function subject to Government control. 38. Power to amend the Schedule. 39. Power to issue directions. 40. Certain persons to be public servants. 41. Power to remove difficulties. 42. Power of Central Government to make rules. 43. Power of State Government to make rules. 44. Laying of rules. 45. Repeal and savings. THE SCHEDULE. 2 ----- # THE PREVENTION AND CONTROL OF INFECTIOUS AND CONTAGIOUS DISEASES IN ANIMALS ACT, 2009 ACT NO. 27 OF 2009 [20th March, 2009.] # An Act to provide for the prevention, control and eradication of infectious and contagious diseases affecting animals, for prevention of outbreak or spreading of such diseases from one State to another, and to meet the international obligations of India for facilitating import and export of animals and animal products and for matters connected therewith or incidental thereto. WHEREAS economic losses due to infectious and contagious diseases of animals are enormous in the country with some of these diseases constituting a serious threat to the public; AND WHEREAS many of such animal diseases can be largely prevented by judicious implementation of vaccination programmes or by taking other appropriate and timely measures on scientific lines; AND WHEREAS such measures are necessary to facilitate the import and export of animals and animal products and to keep in tune with international practices; AND WHEREAS it has been realised that the prevention, control and eradication of infectious and contagious diseases of animals from India has to be tackled on a national basis so as to avoid adverse impact of such diseases on the economy of the country and for this purpose harmonise the control procedures and to prevent inter-State transmission of animal diseases; AND WHEREAS the national level handling has to be done with the active involvement of the State Governments, particularly in regard to the precautionary measures required to be taken within their jurisdiction in respect of certain infectious and contagious diseases and the regulation of movement of animals outside their respective areas by timely adoption of appropriate measures; AND WHEREAS India is a Member Country of the Office International Des Epizooties, Paris and it is necessary to implement the general obligations, decisions and recommendations of the said Organisation and abide by the International Animal Health Code stipulated by the said Organisation; BE it enacted by Parliament in the Sixtieth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Prevention and Control** of Infectious and Contagious Diseases in Animals [1][Act, 2009]. (2) It shall come into force on such date[2] as the Central Government may, by notification, appoint; and different dates may be appointed for different States or for different areas therein as well as for different provisions of this Act, and any reference in any such provision of this Act to the commencement of this Act shall be construed in relation to any State or area or provision as a reference to the coming into force of this Act or, as the case may be, of that provision, in such State or area. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “animal” means,— (i) cattle, buffalo, sheep, goat, yak, mithun; (ii) dog, cat, pig, horse, camel, ass, mule, poultry, bees; and (iii) any other animal or bird as the Central Government may, by notification, [3]specify; (b) “Check Post” means any place established as such by the Director to carry out checking of animals for the purpose of this Act; 1. Subs. by Act 2 of 2018, s. 3 and the Second Schedule, for “Bill, 2009” (w.e.f. 5-1-2018). 2. 25th August, 2009, vide notification No S.O. 2158(E), dated 24th August, 2009, see Gazette of India, Extraordinary, Part II, sec. 3(ii). This Act shall come into force in all the States and Union territories except the State of Uttar Pradesh. 3. The ‘fish, molluse, crustacean and amphibian’ shall be aquatic animals within the definition of ‘animal’ defined under clause (a) vide notification No. S.O. 995(E), dated 1st April, 2014. 3 ----- (c) “Competent Officer” means any person or officer of the Government notified as a Competent Officer under section 17; (d) “compulsory vaccination” means vaccination of any animal against any scheduled disease in respect of which vaccination is made mandatory under the provisions of this Act; (e) “controlled area” means any local area which has been declared as such by the State Government under sub-section (1) of section 6; (f) “defective vaccine” means any vaccine which is expired, breach in seal, contaminated, improperly stored, unlabelled or with mutilated label; (g) “Director”, in relation to a State, means any officer in charge of the Department of Animal Husbandry or Veterinary Services, or both, notified by the State Government as such for the purpose of this Act; (h) “free area” means any controlled area which has been declared as such under sub-section (5) of section 6; (i) “infected animal” means an animal which is infected with any scheduled disease; (j) “infected area” means an area declared as such under section 20; (k) “notification” means notification published in the Official Gazette; (l) “prescribed” means prescribed by rules made under this Act; (m) “publication” includes propagation of information through the media or newspaper or any other mass media and the means of local communication such as declaration in loud voice and by beating drums in the area; (n) “Quarantine Camp” means any place declared to carry out quarantine of animals and birds for the purpose of this Act; (o) “scheduled disease” means any disease included in the Schedule; (p) “Veterinarian” means a person having a recognised veterinary qualification who, under the law for the time being in force, is allowed to treat animal diseases; (q) “Veterinary Officer” means any officer, appointed as such by the State Government under clause (b) of section 3; (r) “Village Officer”, in relation to a village, means any person who is authorised or designated as such in accordance with the qualifications prescribed by the State Government. CHAPTER II CONTROL OF SCHEDULED DISEASES **3. Appointment of Veterinary Officers.—The State Government may, by notification, appoint—** (a) such number of persons, as it deems proper, to be Veterinarians to undertake inspection and specifying the local limits of their respective jurisdiction; and (b) such number of Veterinarians, as it deems proper, to be Veterinary Officers, who shall exercise their powers and discharge their duties within the local limits of their jurisdiction as may be specified in the said notification. **4. Reporting scheduled diseases obligatory.—(1) Every owner, or any other person,** non-governmental organisation, public bodies or the village panchayat, in charge of any animal which he or it has reason to believe to be infective of a scheduled disease shall report the fact to the Village Officer or village panchayat in-charge, who may report the same in writing to the nearest available Veterinarian. (2) The Village Officer shall visit the area falling within his jurisdiction for reporting any outbreak of the disease. 4 ----- (3) Every Veterinarian shall, on receipt of a report under sub-section (1), or otherwise, if he has reason to believe that any animal is infected with a scheduled disease, report the matter to the Veterinary Officer. (4) Where in any State there is any occurrence of scheduled disease in relation to any animal, the Director shall send an intimation to the Directors of the States which are in the immediate neighbourhood of the place where there is such occurrence, for taking appropriate preventive measures against the spread of the disease. **5. Duty to segregate infected animals.—(1) Every owner or person in charge of an animal, which he** has reason to believe is infective of a scheduled disease, shall segregate such animal and have it kept in a place away from all other animals which are healthy, and take all possible steps to prevent the infected animal from coming in contact with any other animal. (2) The owner or other person in charge of, or having control over, the animal referred to in sub-section (1) shall confine that animal and prevent it from grazing in a common place or to drink water from any common source including a vessel, pond, lake or river. (3) All other infected animals shall be segregated by the Municipality, Panchayat or other local administration. **6. Notification of controlled areas and free areas.—(1) The State Government may, with the object** of preventing, controlling or eradicating any scheduled disease, by notification, declare any area to be a controlled area in respect of any scheduled disease affecting any species of animal and any other species that may be susceptible to the disease specified in the said notification. (2) The State Government shall also cause the substance of the notification issued under sub-section (1) to be published in a local newspaper in the vernacular language and by declaration in loud voice and by beating drums in the area. (3) Where a notification has been issued under sub-section (1), all animals of the species in the controlled area shall be subjected to compulsory vaccination against that disease, and be subjected to such other measures against the disease, in such manner and within such time as the State Government, may, by public notice, direct. (4) The State Government shall make available necessary vaccine and it shall be obligatory on the part of every owner, or the person in charge of an animal which is required to be vaccinated under sub-section (3), to get the animal compulsorily vaccinated. (5) Where the State Government is satisfied, on a report received from the Director or otherwise, that, in any controlled area, any of the scheduled diseases affecting any species of animal is no longer prevalent, it may, by notification, declare the area to be a free area in respect of that disease in relation to the particular species of animal. (6) Where a notification has been issued under sub-section (5), no animal of the species or of any other susceptible species with regard to which it is a free area shall be allowed to enter the free area unless duly immunized by vaccination against that particular disease. **7. Prohibition of movement of animals from controlled area.—(1) Where a notification has been** issued under sub-section (1) of section 6 declaring any area as a controlled area in relation to any disease affecting any species of animals, no animal belonging to that species shall be moved from the place where it is kept. (2) The Director may, for the purpose of control, prevention or eradication of any scheduled disease, in respect of any area, by order published in the Official Gazette, prohibit the movement of all animals belonging to any species specified therein, from the place where it is kept, to any other place. 5 ----- (3) Nothing contained in sub-sections (1) and (2) shall be deemed to prohibit— (a) the movement of any animal referred to therein, from the place where it is kept, to the nearest place where it can be got vaccinated, so long as the animal is being moved for the purpose of its immunization by vaccination; or (b) the movement of any such animal, so long as it is accompanied by a valid certificate of vaccination to indicate that the animal is duly immunized against the particular disease and it bears proper mark of such vaccination. **8. Vaccination, marking and issue of vaccination certificate.—(1) The vaccine to an animal may** be administered by any person competent under the law for the time being in force to administer it, and issue a certificate of administration of vaccination. (2) Where any animal has been vaccinated for any scheduled disease in compliance with the provisions of sub-section (1), the person vaccinating the animal shall cause to put a mark by branding, tattooing or ear tagging, or in such other manner as the Director may, by general or special order, direct and the same shall, unless otherwise specified by the Director, shall not be removed. (3) The authority issuing a certificate of vaccination shall specify the date of vaccination, dates of manufacture and expiry of the vaccine and the date up to which the vaccination of the animal with the particular vaccine shall be valid. **9. Contents of vaccination certificate.—Every vaccination certificate issued under this Act shall be** in such form and shall contain such particulars as may be prescribed by the Central Government. **10. Entry and exit of animals into controlled area and free area.—(1) Where any area has been** declared as a controlled area under sub-section (1) of section 6 in respect of any disease affecting any species of animals, no animal belonging to that species shall be taken out of, or brought into that area save as provided in section 16. (2) The Director may, by notice duly published in the Official Gazette and at least in one daily local newspaper in vernacular language, extend the prohibition contained in sub-section (1) to any other species of animals, if animals belonging to that species are also likely to be infected with that disease. (3) No carrier of goods or animal shall carry any animal from or out of a controlled area, free area or infected area by land, sea or air unless he complies with the provisions of section 16. (4) Nothing contained in sub-sections (1) to (3) shall apply to the carriage by railway of any animal referred to in those sub-sections through any area which, for the time being, is declared as a controlled area or infected area so long as the animal is not unloaded (for whatsoever purpose or duration) in any place within that area: Provided that the State Government may, by notification, declare that any species of animal so carried through any local area within the State shall be duly immunized against such scheduled disease, in such manner and within such time as may be specified in that notification and a certificate of vaccination shall be a pre-requisite for the transportation of the animals by the railways through that area: Provided further that, where any notification as referred to in the first proviso has been issued, it shall be incumbent on the State Government to intimate that fact to the concerned railway authorities so as to enable them to satisfy themselves about the immunization of the animal before transporting it through the local area of the State. **11. Precautionary measures in relation to controlled areas.—No person shall take out of the** controlled area— (a) any animal, alive or dead, which is infected with, or reasonably suspected to have been infected with, any scheduled disease notified under sub-section (1) of section 6; (b) any kind of fodder, bedding or other material which has come into contact with any animal infected with such disease or could, in any manner, carry the infection of the notified disease; or (c) the carcass, skin or any other part or product of such animal. 6 ----- **12. Prohibition of markets, fairs, exhibition, etc., in the controlled areas.—No person,** organisation or institution shall hold any animal market, animal fair, animal exhibition and carry on any other activity which involves grouping or gathering of any species of animals within a controlled area: Provided that the Competent Officer may, _suo motu_ or on application made to him in this behalf, relax the prohibition in relation to any species of animals, in a case where animals belonging to that species are not susceptible to the scheduled disease and are incapable of carrying it, if he is satisfied that in the public interest it is necessary to accord such relaxation. **13. Prohibition of bringing of infected animals into market and other places.—No person shall** bring or attempt to bring into market, fair, exhibition or other congregation of animals or to any public place, any animal which is known to be infected with a scheduled disease. **14. Check Posts and Quarantine Camps.—(1) The Director may establish as many Quarantine** Camps and Check Posts within the State as may be required— (a) for the detention of animals suffering from any scheduled disease or of animals which have come into contact with or have been kept in the proximity of any such infected animal; (b) for ensuring the prevention of entry into or exit from any controlled area or infected area or free area, of any animal belonging to the species of animals in respect of which a notification, issued under sub-section (1) of section 6, or an order issued under sub-section (2) of section 7, is in force. (2) Any animal which is required to be detained, inspected, vaccinated, or marked, may be kept in the Quarantine Camp for such period as the Competent Officer may direct. (3) Every animal detained at a Quarantine Camp shall be under the custody of the person in charge of the camp, and shall be vaccinated and marked. (4) The officer in charge of the Quarantine Camp shall, at the time of release of an animal from the station, grant a permit, in such form as may be prescribed by the State Government, to the person taking charge of the animal, and every such person shall be bound to produce the permit whenever required to do so by any Competent Officer. **15. Inspection and detention of animals at Check Posts and Quarantine Camps.—(1) Every** person in charge of any Check Post or Quarantine Camp shall inspect any animal stopped at the Check Post, or detained therein or at the Quarantine Camp. (2) The manner of inspection and the period of detention of the animal at the Check Post or at the Quarantine Camp for the purpose of inspection or for the administration of compulsory vaccination, the marking of animals and the form and manner in which permit for entry in respect of any animal may be issued, shall be such as may be prescribed by the State Government. **16. Entry and exit of vaccinated animals into controlled and free areas.—Notwithstanding** anything contained in section 10, an animal belonging to the species of animals in respect of which an area has been declared as a controlled or free area in relation to any scheduled disease, which has been duly vaccinated against that disease, shall be allowed to enter into or be taken out of the controlled area or free area, or to be taken out of any other place on the production of a certificate to the effect that vaccine against that disease has been administered and a period of not less than twenty-one days has elapsed thereafter. **17. Appointment of Competent Officers.—The State Government may, for the proper** implementation of the provisions of this Act, by notification, authorise any person to exercise any power or discharge any duty as a Competent Officer, under this Act, who shall exercise such powers and such duties within the local limits of his jurisdiction as may be specified in the notification. **18. Cleaning and disinfection of carriers.—(1) Every common carrier whether a vessel or vehicle** shall be cleaned and disinfected immediately before and after the transportation of any animal in that vessel or vehicle, and so also any other place where the animal has been kept in transit. 7 ----- (2) Where any area has been declared as a controlled area or free area in respect of any scheduled disease affecting any species of animal, the Director may, by an order duly published in the Official Gazette and in a local newspaper in the vernacular language, direct the owner of every vehicle in which any animal belonging to that species is carried, to have the vehicle properly cleaned and disinfected. **19. Powers of entry and inspection.—Any Veterinary Officer or other Competent Officer may enter** upon and inspect any land or building or place, vessel or vehicle, for the purpose of ensuring compliance of the provisions of this Act or the rules or orders made thereunder, by the persons responsible for such compliance. CHAPTER III INFECTED AREAS **20. Declaration of infected areas.—If the Veterinary Officer, upon receipt of a report from a** Veterinarian or otherwise, is satisfied that, in any place or premises falling within his jurisdiction, an animal has been infected with any scheduled disease, or that an animal, which he has reason to believe has been so infected, is kept, may, by notification and publication in at least one local newspaper in the vernacular language and by declaration in loud voice and by beating drums, declare such area as he may deem fit (including the place or premises aforesaid) to be an infected area. **21. Effect of declaration of infected areas.—(1) Where an area has been declared as an infected** area under section 20, all provisions of this Act which are applicable in relation to a controlled area shall _mutatis mutandis apply thereto as if for the words “controlled area”, the words “infected area” have been_ substituted. (2) Without prejudice to the generality of the provisions contained in sub-section (1), the following further provisions shall apply in relation to an infected area, namely:— (a) in respect of every animal in that area which is infected or reasonably believed to be infected, with any scheduled disease, the owner or other person in charge of the animal, shall forthwith get it treated by a Veterinarian; (b) all articles, which are likely to have come into contact with any animal referred to in clause (a), shall be treated or disposed off in such a manner as the Veterinarian may direct; (c) every Veterinarian shall, for the purpose of inspection, have the power to enter any place or premises where any animal is kept or is likely to be kept; (d) the owner or any other person in charge of the animal referred to in clause (a) shall keep the animal in isolation forthwith, and also take such other measures as may be necessary for the prevention, treatment and control of the disease as the Veterinarian may direct. **22. Denotification of infected area.—If the Veterinary Officer, after such enquiry as he may deem** fit, is satisfied that there is no longer the threat or danger of any animal being infected with the scheduled disease in any infected area, by notification and publication in a local newspaper in vernacular language, declare that the area is no longer an infected area as aforesaid, whereupon all the restrictions referred to in section 21 shall cease to apply. CHAPTER IV INFECTED ANIMALS **23. Segregation, examination and treatment of infected animals.—(1) Where the Veterinarian** has, on receipt of a report or otherwise, reason to believe that any animal is infected with a scheduled disease, he may, by order in writing, direct the owner or any other person in charge of such animal— (a) to keep it segregated from other apparently healthy animals; or (b) to subject it to such treatment as may be required under the circumstances. 8 ----- (2) Where any action has been taken in pursuance of sub-section (1), the Veterinarian shall forthwith give a detailed report of the incidence of the disease to the Veterinary Officer. (3) On receipt of a report from the Veterinarian, the Veterinary Officer shall, as soon as possible, examine that animal as well as any other animal which could have come in contact with it, and for that purpose, submit the animal to such test and medical examination as may be required under the circumstances. (4) If, after such test and examination, the Veterinary Officer is of the opinion that an animal is not infected with any of the scheduled diseases, he shall issue a certificate in writing that the animal is not infected with any such disease. **24. Drawing samples from animals.—(1) Where the Veterinary Officer considers it necessary for** the purpose of ascertaining whether the animal which is suspected to have been infected with any scheduled disease or susceptible to such infection is actually infected, or for the purpose of ascertaining the nature of the scheduled disease with which an animal is infected, he may draw such samples, as may be required, from the animal for the purpose of carrying out such investigations as he may deem necessary under the circumstances. (2) The Veterinary Officer or any other Competent Officer shall draw samples from any animal for the purposes of ascertaining whether the animal has been vaccinated against any disease, or whether the vaccination of the animal has been effective in conferring it immunity and have the samples examined, in such manner as he may deem necessary. **25. Resort to euthanasia for infected animals.—If the Veterinary Officer deems it necessary that an** animal, which is infected with a scheduled disease, euthanasia has to be resorted to, for preventing the spread of the disease to other animals in the area or to protect public health if the disease is of zoonotic importance, he may, notwithstanding anything contained in any other law for the time being in force, by an order in writing, direct euthanasia of the animal and the carcass disposed of immediately to his satisfaction. **26. Disposal of carcass.—Every person in possession of carcass (or any part thereof) of any animal,** which, at the time of its death, was infected with any scheduled disease or was suspected to have been infected, shall dispose it of in such manner as may be prescribed. **27. Powers of Veterinary Officer and Veterinarian to hold post-mortem examination.—(1)** Where the Veterinary Officer or any Veterinarian has reason to believe that the death of an animal has been caused by an infection of any scheduled disease, he may make or cause to be made a post-mortem examination of the animal and for that purpose he may cause the carcass of any such animal to be exhumed where required followed by proper disposal after necessary examination and post-mortem. (2) Every examination and post-mortem referred to in sub-section (1) shall be conducted in such manner, and the report of post-mortem shall be in such form, as may be prescribed. **28. Seizure and removal of certain animals.—Where any animal which is infected or suspected to** have been infected is found without any person claiming to be its owner, or where a valid order or direction given in relation to any such animal is not promptly complied with by the owner or other person in control of the animal, it shall be open to the Veterinary Officer or any other Competent Officer, to seize the animal and remove it to a place of isolation or segregation, as he may deem proper. CHAPTER V ENFORCEMENT AND PENALTIES **29. Enforcement of orders and recovery of expenses.—(1) Where by any rule, notification, notice,** requisition, order or direction made under this Act, any person is required to take any measure or to do anything— (a) in respect of any animal, carcass of any animal or other thing in his custody or charge, the same shall be promptly complied with by that person; 9 ----- (b) in case of any stray or ownerless animal, carcass of such animal or parts thereof, the same shall be promptly complied with by the municipality or Panchayat, as the case may be, at its cost. (2) If the measures as referred to in sub-section (1) are not taken within such time as may be allowed for the purpose, the authority issuing the notice, requisition, order or direction, may cause the measures to be taken at the cost of the person or municipality or Panchayat, as the case may be, who or which was required to take the measures. (3) The costs of any measures taken under sub-section (2), shall be recoverable from the person or the municipality or Panchayat, as the case may be, concerned in the manner provided by the Code of Criminal Procedure, 1973 (2 of 1974) for the recovery of fines imposed by a Court, as if such costs were a fine imposed by a Court. **30. Village Officers, etc., to assist.—All Municipal, Panchayat or Village Officers and all officers of** the rural and dairy development, revenue, agriculture, animal husbandry and veterinary departments of the State Government, shall be bound— (a) to give immediate information to the Veterinary Officer and to the Veterinarian having jurisdiction in the area regarding the prevalence of a scheduled disease amongst any animal or species of animals, in the area; (b) to take all necessary measures to prevent the outbreak or spread of any scheduled disease; and (c) to assist the Veterinary Officer and the Veterinarian in the discharge of their duties or in the exercise of their powers under this Act. **31. Penalty for issuing vaccination certificate without authority or administering defective** **vaccine.—If any person issues a vaccination certificate,—** (a) without authority or competence in that behalf, or (b) after administering the vaccine which is known to be defective in any manner, he shall be guilty of an offence punishable with a fine of five thousand rupees or in case of non-payment of fine with imprisonment which may extend to one month, and in the case of any subsequent offence, with fine of ten thousand rupees or with imprisonment which may extend to three months. **32. Penalties.—Any person who contravenes the provisions of this Act or obstructs the Competent** Officer in performing his duties shall be guilty of an offence punishable with fine which may extend to one thousand rupees, and in case of failure to pay the penalty with imprisonment for a term which may extend to one month; and in the case of any subsequent offence (whether under the same provision or any other provision of this Act except in case of sections 31 and 33) with a fine of two thousand rupees, or with imprisonment for a term which may extend to two months in case of non-payment of the penalty. **33. Penalty for placing infected animal or carcass in river, etc.—Whoever places or causes or** permits to be placed in any river, lake, canal or any other water body, the carcass or any part of the carcass of any animal which at the time of its death was known to be infected, shall be guilty of an offence and, on conviction, be punished, in the case of a first offence with fine of two thousand rupees or with imprisonment of one month in case of non-payment of fine and in the case of subsequent conviction with a fine of five thousand rupees or imprisonment for a term which may extend to three months or with both. **34. Offences by companies.—(1) Where an offence under this Act has been committed by a** company, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded and punished accordingly: Provided that nothing contained in this sub-section shall render such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. 10 ----- (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section,—_ (a) “company” means any body corporate and includes a co-operative society registered or deemed to be registered under any law for the time being in force, a firm or other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm. CHAPTER VI PRECAUTIONARY MEASURES ON CAUSATIVE ORGANISM, ETC. **35. Prevention of escape of causative organism.—(1) In every institution, laboratory or clinic,** engaged in the manufacture, testing or research, related to vaccines, sera, diagnostics or chemotherapeutic drugs and aimed at the prevention or treatment of any scheduled disease, adequate precautionary measures shall be taken— (a) to ensure that the causative organism of any scheduled disease does not escape or otherwise get released; (b) to guard against any such escape or release; and (c) to warn and to protect everyone concerned in the event of any escape. (2) Notwithstanding anything contained in any other law for the time being in force, every animal— (a) used for the manufacture, testing or research as referred to sub-section (1), or (b) which is likely to carry or transmit any scheduled disease, shall be promptly administered euthanasia and disposed of by the person in charge of or having control of the institution, laboratory or clinic, as the case may be, referred to in that sub-section. (3) Every person who is in charge of or having control of an institution, laboratory or clinic referred to in sub-section (1) comply with the provisions of sub-section (1) and sub-section (2); and in the event of non-compliance he shall be guilty of an offence punishable with fine which may extend to twenty thousand rupees or imprisonment for a term which may extend to six months or with both, and in case the establishment is in commercial manufacturing of vaccines or medicine, a temporary suspension of licence up to a period of one year may also be imposed. CHAPTER VII MISCELLANEOUS **36. Power to delegate.—The State Government may, by notification, delegate to any officer or** authority subordinate to it, all or any of the powers conferred on it by or under this Act, except the powers to make rules under sub-section (2) of section 42. **37. Officers and authorities to function subject to Government control.—All officers and** authorities under this Act shall exercise their powers and discharge their duties conferred or imposed on them by or under this Act, in accordance with such orders, not inconsistent with the provisions of this Act, as the Central Government or the State Government may, from time to time, make. **38. Power to amend the Schedule.—(1) The Central Government may, by notification, add to, or** omit from the Schedule any animal disease and the said disease shall, as from the date of the notification, be deemed to have been added to, or omitted from, the Schedule. (2) Every notification issued under sub-section (1) shall, as soon as may be after it is issued, be laid before each House of Parliament. 11 ----- **39. Power to issue directions.—The Central Government may, with the object of prevention, control** and eradication of any infectious or contagious disease of animals, issue such directions to the State Government or other authorities under this Act, from time to time, including directions for furnishing such returns and statistics on scheduled diseases, and vaccination, as it may deem fit and every such direction shall be complied with. **40. Certain persons to be public servants.—Every Competent Officer, Director and Veterinary** Officer, while exercising any power or performing any duty under this Act, shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860). **41. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made after the expiry of a period of two years from the date of commencement of this Act. (2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament. **42. Power of Central Government to make rules.—(1) The Central Government may, subject to** the condition of previous publication, by notification, make rules for carrying out the provisions of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the form of vaccination certificate and the particulars which such certificate shall contain, under section 9; (b) the manner of disposal of carcass, under section 26; (c) the manner of conducting examination and post-mortem under sub-section (1) and the form of report of post-mortem under sub-section (2) of section 27; (d) any other matter which may be prescribed or in respect of which rules are required to be made by the Central Government. **43. Power of State Government to make rules.—(1) The State Government may, by notification** and with the prior approval of the Central Government, make rules for carrying out the purposes of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the form of permit to be granted by the officer in charge of a Quarantine Camp, under sub-section (4) of section 14; (b) the manner of inspection and the period of detention of an animal at a Check Post or at a Quarantine Camp for the administration of compulsory vaccination and marking of animals and the form and manner of issue of entry permit, under sub-section (2) of section 15; (c) any other matter in respect of which rule is to be or may be made by the State Government. **44. Laying of rules.—(1) Every rule made by the Central Government under this Act shall be laid, as** soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may 12 ----- be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. (2) Every rule made by the State Government under this Act shall be laid, as soon as may be after it is made, before the State Legislature. **45. Repeal and savings.—On the commencement of this Act—** (i) The Glanders and Farcy Act, 1899 (13 of 1899); (ii) The Dourine Act, 1910 (5 of 1910); and (iii) any other corresponding law of any State, so far as it is inconsistent with the provisions of this Act, shall stand repealed: Provided that nothing contained in this section shall— (a) affect the previous operation of any such provision of law or anything duly done or suffered thereunder; (b) affect any right, privilege, obligation or liability acquired, accrued or incurred under any such provision of law; (c) affect any penalty, forfeiture or punishment incurred in respect of any offence committed against any such provision of law; or (d) affect any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid; and every such investigation, legal proceeding or remedy may be continued, instituted or enforced, and any such penalty, forfeiture and punishment may be imposed, as if the aforesaid provisions of law had continued: Provided further that, anything done or any action taken under any such provision of law, including any notification, order, notice or receipt issued or declaration made, shall in so far as it is not inconsistent with the provisions of this Act, be deemed to have been done, taken, issued or made under the corresponding provisions of this Act, and shall continue in force accordingly, unless and until superseded by anything done or any action taken under this Act. 13 ----- THE SCHEDULE [See sections 2 (o) and 38] **(a) Multiple species diseases** 1. Anthrax. 2. Aujeszky's disease. 3. Bluetongue. 4. Brucellosis. 5. Crimean Congo haemorrhagic fever. 6. Echinococcosis/hydatidosis. 7. Foot and mouth disesase. 8. Heartwater. 9. Japanese encephalitis. 10. Leptospirosis. 11. New world screwworm (Cochliomyia hominivorax). 12. Old world screwworm (Chrysomya bezziana). 13. Paratuberculosis. 14. Q fever. 15. Rabies. 16. Rift Valley fever. 17. Rinderpest. 18. Trichinellosis. 19. Tularemia. 20. Vesicular stomatitis. 21. West Nile fever. **(b) Cattle diseases** 1. Bovine anaplasmosis. 2. Bovine babesiosis. 3. Bovine genital campylobacteriosis. 4. Bovine spongiform encephalopathy. 5. Bovine tuberculosis. 6. Bovine viral diarrhoea. 7. Contagious bovine pleuropneumonia. 8. Enzootic bovine leucosis. 9. Haemorrhagic septicaemia. 10. Infectious bovine rhinotracheitis/infectious pustular vulvovaginitis. 11. Lumpy skin disease. 14 ----- 12. Malignant catarrhal fever. 13. Theileriosis. 14. Trichomonosis. 15. Trypanosomosis. **(c) Sheep and goat diseases** 1. Caprine arthritis/encephalitis. 2. Contagious agalactia. 3. Contagious caprine pleuropneumonia. 4. Enzootic abortion of ewes (ovine chlamydiosis). 5. Maedi-visna. 6. Nairobi sheep disease. 7. Ovine epididymitis (Brucella ovis). 8. Peste des petits ruminants. 9. Salmonellosis (S. abortusovis). 10. Scrapie. 11. Sheep pox and goat pox. **(d) Equine diseases** 1. African horse sickness. 2. Contagious equine metritis. 3. Dourine. 4. Equine encephalomyelitis (Eastern). 5. Equine encephalomyelitis (Western). 6. Equine infectious anaemia. 7. Equine Influenza. 8. Equine piroplasmosis. 9. Equine rhinopneumonitis. 10. Equine viral arteritis. 11. Glanders. 12. Surra (Trypanosoma evansi). 13. Venezuelan equine encephalomyelitis. **(e) Swine diseases** 1. African swine fever. 2. Classical swine fever. 3. Nipah virus encephalitis. 4. Porcine cysticercosis. 5. Porcine reproductive and respiratory syndrome. 6. Swine vesicular disease. 15 ----- 7. Transmissible gastroenteritis. **(f) Avian diseases** 1. Avian chlamydiosis. 2. Avian infectious bronchitis. 3. Avian infectious laryngotracheitis. 4. Avian mycoplasmosis (M. gallisepticum). 5. Avian mycoplasmosis (M. synoviae). 6. Duck virus hepatitis. 7. Fowl cholera. 8. Fowl typhoid. 9. Highly pathogenic avian influenza and low pathogenic avian influenza in poultry. 10. Infectious bursal disease (Gumboro disease). 11. Marek's disease. 12. Newcastle disease. 13. Pullorum disease. 14. Turkey rhinotracheitis. **(g) Lagomorph diseases** 1. Myxomatosis. 2. Rabbit haemorrhagic disease. **(h) Bee diseases** 1. Acarapisosis of honey bees. 2. American foulbrood of honey bees. 3. European foulbrood of honey bees. 4. Small hive bettle infestation (Aethina tumida). 5. Tropilaelaps infestation of honey bees. 6. Varroosis of honey bees. **1[(i) Fish diseases** 1. Epizootic haematopoietic necrosis 2. Infectious haematopoietic necrosis 3. Spring viraemia of carp (SVC) 4. Viral haemorrhagic septicaemia (VHS) 5. Epizootic ulcerative syndrome (EUS) 6. Red seabream iridoviral disease (RSID) 7. Koi herpesvirus disease (KHV) 8. Grouper iridoviral disease 9. Viral encephalopathy and retinopathy 1. Subs. by notification No. S.O. No. 996(E), dated 1st April, 2014. 16 ----- 10. Enteric septicaemia of catfish 11. Infection with Aeromonas hydrophila 12. Infection with Edwardsiella tarda 13. Infection with Vibrio anguillarum 14. Infection with Flavobacterium columnare 15. Infection with Streptococus iniae in Tilapia 16. Infectious pancreatic necrosis (cold water) 17. Infection with Myxobolus spp. 18. Infection with Ichthyophthirius multifilis 19. Infection with Saprolegnia parasitica 20. Infestation with Argulus spp. 21. Infestation with Dactylogyrus spp. 22. Infestation with Lernaea spp 23. Infestation with Caligus spp. **(j) Mollusc diseases** 1. Infection with Bonamia exitiosa 2. Infection with Perkinsus olseni 3. Infection with abalone herpesvirus 4. Infection with Xenohaliotis californiensis 5. Infection with Marteilioides chungmuensis 6. Acute viral necrosis (in scallops) 7. Akoya oyster disease 8. Infection with Bomania ostreae 9. Infection with Marteilia regringens 10. Infection with Perkinsus marinus 11. Infection with ostreid herpes virus **(k) Crustacean diseases** 1. Taura syndrome (TS). 2. White spot disease (WSD). 3. Yellowhead disease (YHD). 4. Infectious hypodermal and haematopoietic necrosis (IHHN). 5. Infectious myonecrosis (IMN). 6. White tail disease (MrNV). 7. Necrotising hepatopancreatitis (NHP) 8. Milky haemolymph disease of spiny lobster (Panulirus spp.) 9. Monodon slow growth syndrome 10. Acute hepatopancreatic necrosis syndrome (AHPNS) 17 ----- 11. Hepatopancreatic parvovirus 12. Monodon baculovirus 13. Loose shell syndrome 14. Soft shell syndrome 15. Gaffkemia **(l) Amphibian disease** 1. Infection with Ranavirus. 2. Infection with Batrachochytrium dendrobatidis **(m) Other disease** 1. Camel pox. 2. Leishmaniosis.] 18 -----

20-Mar-2009

25

The Central Universities Act, 2009

https://www.indiacode.nic.in/bitstream/123456789/2080/7/a2009-25.pdf

central

# THE CENTRAL UNIVERSITIES ACT, 2009 _________ ARRANGEMENT OF SECTIONS _________ SECTIONS 1. Short title and commencement. 2. Definitions. 3. Establishment of Universities. 3A. Special provision with respect to the union Territory of Jammu and Kashmir. 3B. Special provision with respect to State of Bihar. 3C. Establishment of Central University of Andhra Pradesh. 3D. Establishment of Central Tribal University of Andhra Pradesh. 3E. Establishment of Sindhu Central University. 3F. Establishment of Gati Shakti Vishwavidyalaya in Gujarat. 3G. Establishment of Sammakka Sarakka Central Tribal University. 4. Effect of establishment of Universities. 5. Objects of University. 6. Powers of University. 7. University open to all castes, creed, race or class. 8. Visitor of University. 9. Officers of University. 10. Chancellor. 11. Vice-Chancellor. 12. Pro-Vice-Chancellor. 13. Deans of Schools. 14. Registrar. 15. Finance Officer. 16. Controller of Examinations. 17. Librarian. 18. Other officers. 19. Authorities of University. 20. The Court. 21. Executive Council. 22. Academic Council. 23. Boards of Studies. 24. Finance Committee. 25. Other authorities of University. 26. Powers to make Statutes. 27. Statutes, how to be made. 28. Power to make Ordinances. 29. Regulations. 30. Annual report. 31. Annual accounts. 32. Returns and information. 33. Conditions of service of employees, etc. 34. Procedure of appeal and arbitration in disciplinary cases against students. 35. Right to appeal. 36. Provident and pension funds. 37. Disputes as to constitution of authorities and bodies. 38. Filling of casual vacancies. 39. Proceedings of authorities or bodies not invalidated by vacancies. 40. Protection of action taken in good faith. ----- # SECTIONS 41. Mode of proof of University record. 42. Power to remove difficulties. 43. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid before Parliament. 44. Transitional provisions. 45. Amendment of Madhya Pradesh Act 22 of 1973. 46. Amendment of President’s Act 10 of 1973. 47. Repeal and savings. THE FIRST SCHEDULE. THE SECOND SCHEDULE. ----- # THE CENTRAL UNIVERSITIES ACT, 2009 ACT NO. 25 OF 2009 [20th March, 2009.] # An Act to establish and incorporate universities for teaching and research in the various States and to provide for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Sixtieth Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the Central Universities Act, 2009.** (2) It shall be deemed to have come into force on the 15th day of January, 2009. **2.** **Definitions.—In this Act, and in all Statutes made hereunder, unless the context otherwise** requires,— (a) “Academic Council” means the Academic Council of the University; (b) “academic staff” means such categories of staff as are designated as academic staff by the Ordinances; (c) “Board of Studies” means the Board of Studies of a Department of the University; (d) “College” means a college maintained by the University; (e) “Chancellor”, “Vice-Chancellor” and “Pro-Vice-Chancellor” mean, respectively, the Chancellor, Vice-Chancellor and Pro-Vice-Chancellor of the University; (f) “Court” means the Court of the University; (g) “Department” means a Department of Studies and includes a Centre of Studies; (h) “distance education system” means the system of imparting education through any means of communication, such as broadcasting, telecasting, internet, correspondence courses, seminars, contact programmes or the combination of any two or more such means; (i) “employee” means any person appointed by the University and include teachers and other staff of the University; (j) “Executive Council” means the Executive Council of the University; 1[(ja) “Gati Shakti Vishwavidyalaya” means the University established under section 3F;] (k) “Hall” means a unit of residence or of corporate life for the student of the University, or of a College or an Institution, maintained by the University; (l) “Institution” means an academic institution, not being a College, maintained by the University; (m) “Principal” means the Head of a College or an Institution maintained by the University and includes, where there is no principal, the person for the time being duly appointed to act as Principal, and in the absence of the Principal, or the acting Principal, a Vice- Principal duly appointed as such; (n) “Regulations” means the Regulations made by any authority of the University under this Act for the time being in force; (o) “School” means a School of Studies of the University; (p) “Statutes” and “Ordinances” mean, respectively, the Statutes and the Ordinances of the University for the time being in force; (q) “teachers of the University” means Professors, Associate Professors, Assistant Professors and such other persons as may by appointed for imparting instruction or conducting research in the University or in any College or Institution maintained by the University and are designated as teachers by the Ordinances; and (r) “University” means a University established and incorporated as a University under this Act. 1. Ins. by Act 17 of 2022, s. 2 (w.e.f. 6-12-2022). ----- **3. Establishment of Universities.—(1)The Guru Ghasidas Vishwavidyalaya in the State of** Chhattisgarh and Doctor Harisingh Gour Vishwavidyalaya in the State of Madhya Pradesh, established under the Madhya Pradesh Vishwavidyalaya Adhiniyam, 1973 (Madhya Pradesh Act 22 of 1973), and Hemvati Nandan Bahuguna Garhwal University in the State of Uttarakhand, established under the Uttar Pradesh State Universities Act,1973 (President’s Act 10 of 1973), shall be established as bodies corporate under this Act by the same names of “Guru Ghasidas Vishwavidyalaya”, “Doctor Harisingh Gour Vishwavidyalaya” and “Hemvati Nandan Bahuguna Garhwal University ”, respectively. (2) The headquarters of Guru Ghasidas Vishwavidyalaya, Doctor Harisingh Gour Vishwavidyalaya and Hemvati Nandan Bahuguna Garhwal University shall be at Bilaspur, Sagar and Srinagar, respectively. (3) The jurisdiction of Guru Ghasidas Vishwavidyalaya, Doctor Harisingh Gour Vishwavidyalaya and Hemvati Nandan Bahuguna Garhwal University, shall extend to the Bilaspur, Raigarh and Surguja districts of the State of Chhattisgarh, the Sagar, Tikamgarh, Chhatarpur, Panna, Chhindwara and Damoh districts of the State of Madhya Pradesh, and the Chamoli, Dehradun, Garhwal, Hardwar, Rudraprayag, Tehri Garhwal and Uttarkashi districts of the State of Uttarakhand, respectively. (4) There shall be established, the Universities in the various States as bodies corporate, by such names and territorial jurisdiction, as specified in the First Schedule to this Act. (5) The headquarters of each of the University, referred to in sub-section (4), shall be such as may be specified by the Central Government by notification in the Official Gazette. (6) The first Chancellor, the first Vice-Chancellor and the first members of the Court, the Executive Council and the Academic Council of each University, and all persons who may hereafter become such officers or members, so long as they continue to hold such office or membership, are hereby constituted a body corporate by the name of the University. (7) The University shall have perpetual succession and a common seal, and shall sue and be sued by the said name. 1[3A. Special provision with respect to the 2[Union Territory of Jammu and Kashmir]*.—(1) The Central University of Jammu and Kashmir established under sub-section (4) of section 3 shall be known as the Central University of Kashmir and its territorial jurisdiction shall be limited to the Kashmir Division of the [2][Union Territory of Jammu and Kashmir]*. (2) There shall be established a university, which shall be a body corporate, to be known as the Central University of Jammu having its territorial jurisdiction extending to the Jammu Division of the 2[Union Territory of Jammu and Kashmir]*. (3) All assets and liabilities of the Central University of Jammu and Kashmir in respect of the territory of Jammu Division of the [2][Union Territory of Jammu and Kashmir]* shall stand transferred to be the assets and liabilities of the Central University of Jammu. (4) Anything done or any action taken by the University of Jammu and Kashmir in respect of the territory of Jammu Division of the [2][Union Territory of Jammu and Kashmir]* shall be deemed to have been done or taken by the Central University of Jammu. (5) Any suit or legal proceedings instituted or continued by or against the Central University of Jammu and Kashmir in respect of the territory of Jammu Division of the [2][Union Territory of Jammu and Kashmir]* shall be deemed to have been instituted or continued by or against the Central University of Jammu]. 3[3B. Special provision with respect to State of Bihar.—(1) The Central University of Bihar established under sub-section (4) of section 3 shall be known as the Central University of South Bihar, having its territorial jurisdiction extending to the territory in the south of River Ganges in the State of Bihar, as specified in the First Schedule to this Act. 1. Ins. by Act 38 of 2009, s. 2 (w.e.f. 20-10-2009). 2. Subs. by Act 27 of 2021, s. 2, for “State of Jammu and Kashmir” (w.e.f. 6-7-2022). 3. Ins. by Act 35 of 2014, s. 2, (date to be notified). *. Vide Notification No. S.O. 3912 (E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and Kashmir and the Union territory of Ladakh. ----- (2) There shall be established a University, which shall be a body corporate, to be known as the Mahatma Gandhi Central University, having its territorial jurisdiction extending to the territory in the north of the River Ganges in the State of Bihar, as specified in the First Schedule to this Act.] 1[3C. Establishment of Central University of Andhra Pradesh.—There shall be established a University, which shall be a body corporate, to be known as the Central University of Andhra Pradesh, having its territorial jurisdiction extending to the whole of the State of Andhra Pradesh, as specified in the First Schedule to this Act. **3D. Establishment of Central Tribal University of Andhra Pradesh.—There shall be established a** Tribal University, which shall be a body corporate, to be known as the Central Tribal University of Andhra Pradesh, as specified in the First Schedule to this Act, to provide avenues of higher education and research facilities primarily for the tribal population of India.] 2[3E. Establishment of Sindhu Central University.—There shall be established a University, which shall be a body corporate, to be known as the Sindhu Central University, having its territorial jurisdiction extending to the whole of the Union territory of Ladakh, as specified in the First Schedule to this Act.] 3[3F. Establishment of Gati Shakti Vishwavidyalaya in Gujarat.—(1) The National Rail and Transportation Institute, Vadodara, Gujarat, declared as a deemed to be University under section 3 of the University Grants Commission Act, 1956 (3 of 1956), shall be established as a body corporate under this Act by the name Gati Shakti Vishwavidyalaya. (2) The territorial jurisdiction of Gati Shakti Vishwavidyalaya shall extend to the whole of India, as specified in the First Schedule to this Act. (3) The Gati Shakti Vishwavidyalaya shall be sponsored and funded by the Central Government in the Ministry of Railways.] **4[3G. Establishment of Sammakka Sarakka Central Tribal University.—There shall be** established a Tribal University, which shall be a body corporate, to be known as the Sammakka Sarakka Central Tribal University, having its territorial jurisdiction extending to the whole of the State of Telangana, as specified in the First Schedule to this Act, to provide avenues of higher education and research facilities primarily for the tribal population of India.] **4. Effect of establishment of Universities.—On and from the dated of commencement of this** Act,—(a) any reference to Guru Ghasidas Vishwavidyalaya, Doctor Harisingh Gour Vishwavidyalaya or Hemvati Nandan Bahuguna Garhwal University, in any contract or other instrument shall be deemed as a reference to Guru Ghasidas Vishwavidyalaya, Doctor Harisingh Gour Vishwavidyalaya, and Hemvati Nandan Bahuguna Garhwal University, respectively, established under this Act; (b) all properties, movable and immovable, of or belonging to Guru Ghasidas Vishwavidyalaya, Doctor Harisingh Gour Vishwavidyalaya and Hemvati Nandan Bahuguna Garhwal University, shall vest in Guru Ghasidas Vishwavidyalaya, Doctor Harisingh Gour Vishwavidyalaya or Hemvati Nandan Bahuguna Garhwal University, as the case may be, established under this Act; (c) all rights and liabilities of Guru Ghasidas Vishwavidyalaya, Doctor Harisingh Gour Vishwavidyalaya and Hemvati Nandan Bahuguna Garhwal University, shall be transferred to, and be the rights and liabilities of, Guru Ghasidas Vishwavidyalaya, Doctor Harisingh Gour Vishwavidyalaya and Hemvati Nandan Bahuguna Garhwal University, respectively, established under this Act; (d) every person employed by Guru Ghasidas Vishwavidyalaya, Doctor Harisingh Gour Vishwavidyalaya and Hemvati Nandan Bahuguna Garhwal University, immediately before the commencement of this Act shall hold his office or service in Guru Ghasidas Vishwavidyalaya, Doctor Harisingh Gour Vishwavidyalaya and Hemvati Nandan Bahuguna Garhwal University, respectively, 1. Ins. by Act 15 of 2019, s. 2 (w.e.f. 5-8-2019). 2. Ins. by Act 27 of 2021, s. 3 (w.e.f. 6-7-2022). 3. Ins. by Act 17 of 2022, s. 3 (w.e.f. 6-12-2022). 4. Ins. by Act 36 of 2023, s. 2 (w.e.f. 24-1-2024). ----- established under this Act by the same tenure, at the same remuneration and upon the same terms and conditions and with the same rights and privileges as to pension, leave, gratuity, provident fund and other matters as he would have held the same if this Act had not been enacted and shall continue to do so unless and until his employment is terminated or until such tenure, remuneration and terms and conditions are duly altered by the Statutes: Provided that if the alteration so made is not acceptable to such employee, his employment may be terminated by the University in accordance with the terms of the contract with the employee or, if no provision is made therein in this behalf, on payment, to him by the University, of compensation equivalent to three months' remuneration in case of permanent employees and one month's remuneration in the case of other employees: Provided further that every person employed before the commencement of this Act, pending the execution of a contract under section 33, shall be deemed to have been appointed in accordance with the provisions of a contract consistent with the provisions of this Act and the Statutes: Provided also that any reference, by whatever form of words, to the Vice-Chancellor and Pro-Vice-Chancellor of Guru Ghasidas Vishwavidyalaya, Doctor Harisingh Gour Vishwavidyalaya or Hemvati Nandan Bahuguna Garhwal University, in any law for the time being in force, or in any instrument or other document, shall be Construed as a reference to the Vice-Chancellor and the Pro-Vice-Chancellor of Guru Ghasidas Vishwavidyalaya, Doctor Harisingh Gour Vishwavidyalaya or Hemvati Nandan Bahuguna Garhwal University, as the case may be, established under this Act; (e) the Vice-Chancellors of Guru Ghasidas Vishwavidyalaya and Doctor Harisingh Gour Vishwavidyalaya, appointed under the provisions of the Madhya Pradesh Vishwavidyalaya Adhiniyam, 1973 (Madhya Pradesh Act 22 of 1973), and the Vice-Chancellor of Hemvati Nandan Bahuguna Garhwal University, appointed under the provisions of the Uttar Pradesh State Universities Act, 1973 (President’s Act 10 of 1973), shall be deemed to have been appointed as the Vice-Chancellor under this Act, and shall hold office for a period of three months or till such time the first Vice-Chancellor is appointed under section 44 of the Act, [1][whichever is earlier;] (f) all colleges, Institutions, Schools or Faculties, and Departments affiliated to, or admitted to the privileges of, or maintained by, Guru Ghasidas Vishwavidyalaya, Doctor Harisingh Gour Vishwavidyalaya and Hemvati Nandan Bahuguna Garhwal University shall stand affiliated to, or admitted to the privileges of, or maintained by, Guru Ghasidas Vishwavidyalaya, Doctor Harisingh Gour Vishwavidyalaya and Hemvati Nandan Bahuguna Garhwal University, respectively, established under this Act. 2[(g) any reference to the National Rail and Transportation Institute, Vadodara, in any contract or other instrument shall be deemed as a reference to Gati Shakti Vishwavidyalaya established under this Act; (h) all properties, movable and immovable, of or belonging to the National Rail and Transportation Institute, Vadodara, shall vest in Gati Shakti Vishwavidyalaya established under this Act; (i) all rights and liabilities of the National Rail and Transportation Institute, Vadodara, shall be transferred to, and be the rights and liabilities of Gati Shakti Vishwavidyalaya established under this Act; (j) every person employed by the National Rail and Transportation Institute, Vadodara, immediately before the commencement of the Central Universities (Amendment) Act, 2022 (17 of 2022) shall hold his office or service in Gati Shakti Vishwavidyalaya established under this Act with the same tenure, at the same remuneration and upon the same terms and conditions and with the same rights and privileges as to pension, leave, gratuity, provident fund and other matters as he would have held the same if the Central Universities (Amendment) Act, 2022 had not been enacted and shall continue to do so unless and until his employment is terminated or until such tenure, remuneration and terms and conditions are duly altered by the Statutes: 1. Subs. by Act 17 of 2022, s. 4, for “Whichever is earlier; and” (w.e.f. 6-12-2022). 2. Ins. by ibid, s. 4 (w.e.f. 6-12-2022). ----- Provided that if the alteration so made is not acceptable to such employee, his employment may be terminated by the University in accordance with the terms of the contract with the employee or, if no provision is made therein in this behalf, on payment, to him by the University, of compensation equivalent to three months’ remuneration in case of permanent employees and one month’s remuneration in the case of other employees; (k) any reference, by whatever form of words, to the Vice-Chancellor and Pro-Vice-Chancellor of the National Rail and Transportation Institute, Vadodara, in any law for the time being in force, or in any instrument or other document, shall be construed as reference to the Vice-Chancellor and Pro-Vice-Chancellor of Gati Shakti Vishwavidyalaya; and (l) the incumbent Vice-Chancellor of the National Rail and Transportation Institute, Vadodara, shall hold office for a period of six months from the date of coming into force of the Central Universities (Amendment) Act, 2022 (17 of 2022) or till such time the first Vice-Chancellor of Gati Shakti Vishwavidyalaya is appointed under section 44, whichever is earlier.] **5. Objects of University.—The objects of the University shall be to disseminate and advance** knowledge by providing instructional and research facilities in such branches of learning as it may deem fit; to make special provisions for integrated courses in humanities, social sciences, science and technology in its educational programmes; to take appropriate measures for promoting innovations in teaching-learning process and inter-disciplinary studies and research; to educate and train manpower for the development of the country; to establish linkages with industries for the promotion of science and technology; and to pay special attention to the improvement of the social and economic conditions and welfare of the people, their intellectual, academic and cultural development. 1[Provided that the Tribal University established under section 3D shall take additional measures for paying special attention to the tribal centric higher education and research, including art, culture and customs:] 2[Provided further that the Gati Shakti Vishwavidyalaya established as an University under section 3F shall take additional measures for providing high quality teaching, research and skill development in diverse disciplines related to transportation, technology and management including establishing centres in India and abroad, as may be required in the opinion of the said University.] **6. Powers of University.—The University shall have the following powers, namely: —** (i) to provide for instructions in such branches of learning like natural sciences, social sciences, humanities, engineering, technology and medicine as the University may, from time to time, determine and to make provisions for research and for the advancement and dissemination of knowledge; (ii) to grant, subject to such conditions as the University may determine, diplomas or certificates to, and confer degrees or other academic distinctions on, persons, on the basis of examination, evaluation or any other method of testing, and to withdraw any such diplomas, certificates, degrees or other academic distinction for good and sufficient cause; (iii) to organise and to undertake extramural studies, training and extension services; (iv) to confer honorary degrees or other distinctions in the manner prescribed by the Statutes; (v) to provide facilities through the distance education system to such persons as it may determine; (vi) to institute Principalships, Professorships, Associate Professorships, Assistant Professorships and other teaching or academic positions, required by the University and to appoint persons to such Principalships, Professorships, Associate Professorships, Assistant Professorships or other teaching or academic positions; (vii) to recognise an institution of higher learning for such purposes as the University may determine and to withdraw such recognition; 1. Ins. by Act 15 of 2019, s. 3 (w.e.f. 5-8-2019). 2. Ins. by Act 17 of 2022, s. 5 (w.e.f. 6-12-2022). ----- (viii) to appoint persons working in any other University or academic institution, including those located outside the country, as teachers of the University for a specified period; (ix) to create administrative, ministerial and other posts and to make appointments thereto; (x) to co-operate or collaborate or associate with any other University or authority or institution of higher learning, including those located outside the country, in such manner and for such purposes as the University may determine; (xi) to establish such centers and specialised laboratories or other units for research and instruction as are, in the opinion of the University, necessary for the furtherance of its objects; (xii) to institute and award fellowships, scholarships, studentships, medals and prizes; (xiii) to establish and maintain colleges, Institutions and Halls; (xiv) to make provision for research and advisory services and for that purpose to enter into such arrangements with other institutions, industrial or other organisations, as the University may deem necessary; (xv) to organise and conduct refresher courses, workshops, seminars and other programmes for teachers, evaluators and other academic staff; (xvi) to appoint on contract or otherwise visiting Professors, Emeritus Professors, Consultants and such other persons who may contribute to the advancement of the objects of the University; (xvii) to confer autonomous status on a College or an Institution or a Department, as the case may be, in accordance with the Statutes; (xviii) to determine standards of admission to the University, which may include examination, evaluation or any other method of testing; (xix) to demand and receive payment of fees and other charges; (xx) to supervise the residences of the students of the University and to make arrangements for promoting their health and general welfare; (xxi) to lay down conditions of service of all categories of employees, including their code of conduct; (xxii) to regulate and enforce discipline among the students and the employees, and to take such disciplinary measures in this regard as may be deemed by the University to be necessary; (xxiii) to make arrangements for promoting the health and general welfare of the employees; (xxiv) to receive benefactions, donations and gifts and to acquire, hold and manage, and to dispose of, with the previous approval of the Central Government, any property, movable or immovable, including trust and endowment properties, for the purposes of the University; (xxv) to borrow, with the previous approval of the Central Government, on the security of the Property of the University, money for the purposes of the University; and (xxvi) to do all such other acts and things as may be necessary, incidental or conducive to the attainment of all or any of its objects. (2) in exercising its powers referred to in sub-section (1), it shall be the endeavour of the University to maintain an all-India character and high standards of teaching and research, and the University shall, among other measures which may be necessary for the said purpose, take, in particular, the following measures, namely:– (i) admission of students and recruitment of faculty shall be made on all-India basis; (ii) admissions of students shall be made on merit, either through Common Entrance Tests conducted individually by the University or in combination with other Universities, or on the basis of marks obtained in the qualifying examination in such courses where the intake of students is small; ----- (iii) inter-University mobility of faculty, with portable pensions and protection of seniority, shall be encouraged; (iv) semester system, continuous evaluation and choice-based credit system shall be introduced and the University shall enter into agreements with other Universities and academic institutions for credit transfer and joint degree programmes; (v) innovative courses and programmes of studies shall be introduced with a provision for periodic review and restructuring; (vi) active participation of students shall be ensured in all academic activities of the University, including evaluation of teachers; (vii) accreditation shall be obtained from the National Assessment and Accreditation Council or any other accrediting agency at the national level; and (viii) e-governance shall be introduced with an effective management information system. **7. University open to all castes, creed, race or class.—The University shall be open to the persons** of either sex and of whatever caste, creed, race or class, and it shall not be lawful for the University to adopt or impose on any person, any test whatsoever of religious belief or profession in order to entitle him to be appointed as a teacher of the University or to hold any other office therein or to be admitted as a student in the University or to graduate thereat or to enjoy or exercise any privilege thereof: Provided that nothing in this section shall be deemed to prevent the University from making special provision for the employment or admission of women, persons with disabilities or of persons belonging to the weaker sections of the society and, in particular, of the Scheduled Castes, the Scheduled Tribes and the other socially and educationally backward classes of citizens: Provide further that no such special provision shall be made on the ground of domicile. **8. Visitor of University.—(1) The President of India shall be the Visitor of the University.** (2) The Visitor may, from time to time, appoint one or more persons to review the work and progress of the University, including Colleges and Institutions maintained by it, and to submit a report thereon; and upon receipt of that report, the Visitor may, after obtaining the views of the Executive Council thereon through the Vice-Chancellor, take such action and issue such directions, as he considers necessary, in respect of any of the matters dealt with in the report and the University shall abide by such action and be bound to comply with such directions. (3) The Visitor shall have the right to cause an inspection to be made by such person or persons, as he may direct, of the University, its buildings, libraries, laboratories and equipment, and of any College or Institution maintained by the University; and also of the examinations, teaching and other work conducted or done by the University and to cause an inquiry to be made in like manner in respect of any matter connected with the administration or finances of the University, Colleges or Institutions. (4) The Visitor shall, in every matter referred to in sub-section (3), give notice of his intention to cause an inspection or inquiry to be made, to the University, and the University shall have the right to make such representations to the Visitor, as it may consider necessary. (5) After considering the representations, if any, made by the University, the Visitor may cause to be made such inspection or inquiry as is referred to in sub- section (3). (6) Where any inspection or inquiry has been caused to be made by the Visitor, the University shall be entitled to appoint a representative, who shall have the right to be present and be heard at such inspection or inquiry. (7) The Visitor may, if the inspection or inquiry is made in respect of the University or any College or Institution maintained by it, address the Vice-Chancellor with reference to the result of such inspection or inquiry together with such views and advice with regard to the action to be taken thereon, as the Visitor may be pleased to offer, and on receipt of address made by the Visitor, the Vice-Chancellor shall communicate, to the Executive Council, the views of the Visitor with such advice as the Visitor may offer upon the action to be taken thereon. ----- (8) The Executive Council shall communicate through the Vice-Chancellor to the Visitor such action, if any, as it proposes to take or has been taken upon the result of such inspection or inquiry. (9) Where, the Executive Council does not, within a reasonable time, take action to the satisfaction of the Visitor, the Visitor may, after considering any explanation furnished or representation made by the Executive Council, issue such directions, as he may think fit, and the Executive Council shall comply with such directions. (10) Without prejudice to the foregoing provisions of this section, the Visitor may, by order in writing, annul any proceeding of the University which is not in conformity with this Act, the Statutes or the Ordinances: Provided that before making any such order, he shall call upon the Registrar to show cause why such an order should not be made, and, if any cause is shown within a reasonable time, he shall consider the same. (11) The Visitor shall have such other powers as may be prescribed by the Statutes. **9. Officers of University. —The following shall be the officers of the University, namely:–** 1. the Chancellor; 2. the Vice-Chancellor; 3. the Pro-Vice-Chancellor; 4. the Deans of Schools; 5. the Registrar; 6. the Finance Officer; 7. the Controller of Examination; 8. the Librarian; and 9. such other officers as may be declared by the Statutes to be the officers of the University. **10. Chancellor. — (1) The Chancellor shall be appointed by the Visitor in such manner as may be** prescribed by the Statutes. (2) The Chancellor shall, by virtue of his office, be the head of the University and shall, if present, preside at the Convocations of the University held for conferring degrees and meetings of the Court. **11. Vice-Chancellor. — (1) The Vice-Chancellor shall be appointed by the Visitor in such manner as** may be prescribed by the Statutes. (2) The Vice-Chancellor shall be the principal executive and academic officer of the University and shall exercise general supervision and control over the affairs of the University and give effect to the decisions of all authorities of the University. (3) The Vice-Chancellor may, if he is of the opinion that immediate action is necessary on any matter, exercise any power conferred on any authority of the University by or under this Act and shall report to such authority at its next meeting the action taken by him on such matter: Provided that if the authority concerned is of the opinion that such action ought not to have been taken, it may refer the matter to the Visitor whose decision thereon shall be final: Provided further that any person in the service of the University who is aggrieved by the action taken by the Vice-Chancellor under this sub-section shall have the right to represent against such action to the Executive Council within three months from the date on which decision on such action is communicated to him and thereupon the Executive Council may confirm, modify or reverse the action taken by the Vice-Chancellor. (4) The Vice-Chancellor, if he is of the opinion that any decision of any authority of the University is beyond the powers of the authority conferred by the provisions of this Act, the Statutes or the Ordinances ----- or that any decision taken is not in the interest of the University, may ask the authority concerned to review its decision within sixty days of such decision and if the authority refuses to review the decision either in whole or in part or no decision is taken by it within the said period of sixty days, the matter shall be referred to the Visitor whose decision thereon shall be final. (5) The Vice-Chancellor shall exercise such other powers and perform such other duties as may be prescribed by the Statutes or the Ordinances. **12. Pro-Vice-Chancellor. —The Pro-Vice-Chancellor shall be appointed in such manner and on such** terms and condition of service, and shall exercise such powers and perform such duties, as may be prescribed by the Statutes. **13. Deans of Schools. —Every Dean of School shall be appointed in such manner, and shall exercise** such powers and perform such duties, as may be prescribed by the Statutes. **14. Registrar.–(1) The Registrar shall be appointed in such manner, and on such terms and** conditions of service, as may be prescribed by the Statutes. (2) The Registrar shall have the power to enter into agreements, sign documents and authenticate records on behalf of the University, and shall exercise such powers and perform such duties, as may be prescribed by the Statutes. **15. Finance Officer. —The Finance Officer shall be appointed in such manner, and shall exercise** such powers and perform such duties, as may be prescribed by the Statutes. **16. Controller of Examination. —The Controller of Examination shall be appointed in such manner** and shall exercise such power and perform such duties, as may be prescribed by the Statutes. **17. Librarian. —The Librarian shall be appointed in such manner and on such terms and conditions** of service, and shall exercise such powers and perform such duties, as may be prescribed by the Statutes. **18. Other officers. —The manner of appointment and powers and duties of other officers of the** University shall be prescribed by the Statutes. **19. Authorities of University. —The following shall be the authorities of the University, namely:–** (1) the Court; (2) the Executive Council; (3) the Academic Council; (4) the Board of Studies; (5) the Finance Committee; and (6) such other authorities as may be declared by the Statutes to be the authorities of the University. **20. The Court.—(1) The constitution of the Court and the term of office of its members shall be** prescribed by the Statutes: Provided that such number of members, as may be prescribed by the Statutes, shall be elected from among the teachers, employees and students of the University. (2) Subject to the provisions of this Act, the Court shall have the following powers and functions, namely:– (a) to review, from time to time, the broad policies and programmes of the University, and to suggest measures for the improvement and development of the University; (b) to consider and pass resolutions on the annual report and the annual accounts of the University and the audit report on such accounts; (c) to advise the Visitor in respect of any matter which may be referred to it for advise; and (d) to perform such other functions as may be prescribed by the Statutes. ----- **21. Executive Council. — (1) The Executive Council shall be the principal executive body of the** University. (2) The constitution of the Executive Council, the term of office of its members and its powers and functions shall be prescribed by the Statutes: Provided that such number of members as may be prescribed by the Statutes shall be from among the elected members of the Court. **22. Academic Council.— (1) The Academic Council shall be the principal academic body of the** University and shall, subject to the provisions of this Act, the Statutes and the Ordinances, co-ordinate and exercise general supervision over the academic policies of the University. _(2) The constitution of the Academic Council, the term of office of its members and its powers and_ functions shall be prescribed by the Statutes: Provided that such number of members as may be prescribed by the Statutes shall be from among the elected members of the Court. **23. Boards of Studies. —The constitution, powers and function of the Boards of Studies shall be** prescribed by the Statutes. **24. Finance Committee. —The constitution, powers and functions of the Finance Committee shall** be prescribed by the Statutes. **25. Other authorities of University. —The constitution, powers and functions of other authorities,** as may be declared by the Statutes to be the authorities of the University, shall be prescribed by the Statutes. **26. Powers to make Statutes. —Subject to the provision of this Act, the Statutes may provide for all** or any of the following matters, namely:– (a) the constitution, powers and functions of authorities and other bodies of the University, as may be constituted from time to time; (b) the appointment and continuance in office of the members of the said authorities and bodies, the filling up of vacancies of members, and all other matters relating to those authorities and other bodies for which it may be necessary or desirable to provide; (c) the appointment, powers and duties of the officers of the University and their emoluments; (d) the appointment of teachers, academic staff and other employees of the University, their emoluments and conditions of service; (e) the appointment of teachers and academic staff working in any other University or organisation for a specific period for undertaking a joint project; (f) the conditions of service of employees including provisions for pension, insurance, provident fund, the manner of termination of service and disciplinary action; (g) the principles governing the seniority of service of the employees of the University; (h) the procedure for arbitration in cases of dispute between employees or students and the University; (i) the procedure for appeal to the Executive Council by any employee or student against the action of any officer or authority of the University; (j) the conferment of autonomous status on a College or an Institution or a Department; (k) the establishment and abolition of Schools, Departments, Centres, Halls, Colleges and Institutions; (l) the conferment of honorary degrees; ----- (m) the withdrawal of degrees, diplomas, certificates and other academic distinctions; (n) the management of Colleges and Institutions established by the University; (o) the delegation of powers vested in the authorities or officers of the University; (p) the maintenance of discipline among the employees and students; and (q) all other matters which by this Act are to be, or may be, provided for by the Statutes. **27. Statutes, how to be made. — (1) The first Statutes are those set out in the Second Schedule to** this Act. (2) The Executive Council may, from time to time, make new or additional Statutes or may amend or repeal the Statutes referred to in sub-section (1): Provided that the Executive Council shall not make, amend or repeal any Statutes affecting the status, powers or constitution of any authority of the University until such authority has been given an opportunity of expressing an opinion in writing on the proposed changes, and any opinion so expressed shall be considered by the Executive Council. (3) Every new Statute or addition to the Statutes or any amendment or repeal of a Statute shall require the assent of the Visitor who may assent thereto or withhold assent or remit to the Executive Council for re-consideration. (4) A new Statute or a Statute amending or repealing an existing Statute shall have no validity unless it has been assented to by the Visitor. (5) Notwithstanding anything contained in the foregoing sub-sections, the Visitor may make new or additional Statutes or amend or repeal the Statutes referred to in sub-section (1) during the period of three years immediately after the commencement of this Act: Provided that the Visitor may, on the expiry of the said period of three years, make, within one year from the date of such expiry, such detailed Statutes as he may consider necessary and such detailed Statutes shall be laid before both Houses of Parliament. (6) Notwithstanding anything contained in this section, the Visitor may direct the University to make provisions in the Statutes in respect of any matter specified by him and if the Executive Council is unable to implement such direction within sixty days of its receipt, the Visitor may, after considering the reasons, if any, communicated by the Executive Council for its inability to comply with such direction, make or amend the Statutes suitably. **28. Power to make Ordinances. — (1) Subject to the provisions of this Act and the Statutes, the** Ordinances may provide for all or any of the following matters, namely:– (a) the admission of students to the University and their enrolment as such; (b) the courses of study to be laid down for all degrees, diplomas and certificates of the University; (c) the medium of instruction and examination; (d) the award of degrees, diplomas, certificates and other academic distinctions, the qualifications for the same and the means to be taken relating to the granting and obtaining of the same; (e) the fees to be charged for courses of study in the University and for admission to examinations, degrees and diplomas to the University; (f) the conditions for award of fellowships, scholarships, studentships, medals and prizes; (g) the conduct of examination, including the term of office and manner of appointment and the duties of examining bodies, examiners and moderators; (h) the conditions of residence of the students of the University; ----- (i) the special arrangements, if any, which may be made for the residence and teaching of women students and the prescribing of special courses of studies for them; (j) the establishment of Centres of Studies, Boards of Studies, Specialised Laboratories and other Committees; (k) the manner of co-operation and collaboration with other Universities, Institutions and other agencies including learned bodies or associations; (l) the creation, composition and functions of any other body which is considered necessary for improving the academic life of the University; (m) the institution of fellowships, scholarships, studentships, medals and prizes; (n) the setting up of machinery for redressal of grievances of employees and students; and (o) all other matters which by this Act, or, the Statutes, are to be, or, may be, provided for by the Ordinances. (2) The first Ordinances shall be made by the Vice-Chancellor with the previous approval of the Executive Council and the Ordinances so made may also be amended, repealed or added to at any time by the Executive Council in the manner prescribed by the Statutes: Provided that in the case of Guru Ghasidas Vishwavidyalaya and Doctor Harisingh Gour Vishwavidyalaya, and Hemvati Nandan Bahuguna Garhwal University, till such time as the first Ordinances are not so made, in respect of the matters that are to be provided for by the Ordinances under this Act and the Statutes, the relevant provisions of the Statutes and the Ordinances made immediately before the commencement of this Act under the provisions of the Madhya Pradesh Vishwavidyalaya Adhiniyam, 1973 (Madhya Pradesh Act 22 of 1973.), and the Utter Pradesh State Universities Act, 1973 (President’s Act 10 of 1973.), respectively, shall be applicable in so for as they are not inconsistent with the provisions of this Act and the Statutes. **29. Regulations. —The authorities of the University may make Regulations, consistent with this Act,** the Statutes and the Ordinances, for the conduct of their own business and that of the Committees, if any, appointed by them and not provided for by this Act, the Statutes or the Ordinances, in the manner prescribed by the Statutes. **30. Annual report. — (1) The annual report of the University shall be prepared under the direction of** the Executive Council, which shall include, among other matters, the steps taken by the University towards the fulfilment of its objects and shall be submitted to the Court on or before such date as may be prescribed by the Statutes and the Court shall consider the report in its annual meeting. (2) The Court shall submit the annual report to the Visitor along with its comments, if any. (3) A copy of the annual report, as prepared under sub-section (1), shall also be submitted to the Central Government, which shall, as soon as may be, cause the same to be laid before both Houses of Parliament. **31. Annual accounts. — (1) The annual accounts and balance-sheet of the University shall be** prepared under the direction of the Executive Council and shall, once at least every year and at intervals of not more them fifteen months, be audited by the Comptroller and Auditor-General of India or by such persons as he may authorise in this behalf. (2) A copy of the annual accounts together with the audit report thereon shall be submitted to the Court and the Visitor along with the observations of the Executive Council. (3) Any observations made by the Visitor on the annual accounts shall be brought to the notice of the Court and the observations of the Court, if any, shall, after being considered by the Executive Council, be submitted to the Visitor. (4) A copy of the annual accounts together with the audit report, as submitted to the Visitor, shall also be submitted to the Central Government, which shall, as soon as may be, cause the same to be laid before both Houses of Parliament. ----- (5) The audited annual accounts after having been laid before both Houses of Parliament shall be published in the Gazette of India. **32. Returns and information. —The University shall furnish to the Central Government such** returns or other information with respect to its property or activities as the Central Government may, from time to time, require, within such period as may be specified by the Central Government. **33. Conditions of service of employees, etc. — (1) Every employee of the University shall be** appointed under a written contract, which shall be lodged with the University and a copy of which shall be furnished to the employee concerned. (2) Any dispute arising out of the contract between the University and any employee shall, at the request of the employee, be referred to a Tribunal of Arbitration consisting of one member appointed by the Executive Council, one member nominated by the employee concerned and an umpire appointed by the Visitor. (3) The decision of the Tribunal shall be final and no suit shall lie in any civil court in respect of the matters decided by the Tribunal: Provided that nothing in this sub-section shall preclude the employee from availing of the judicial remedies available under articles 32 and 226 of the Constitution. (4) Every request made by the employee under sub-section (2) shall be deemed to be a submission to arbitration upon the terms of this section within the meaning of the Arbitration and Conciliation Act, 1996 (26 of 1996). (5) The procedure for regulating the work of the Tribunal shall be prescribed by the Statutes. **34. Procedure of appeal and arbitration in disciplinary cases against students. — (1) Any student** or candidate for an examination whose name has been removed from the rolls of the University by the orders or resolution of the Vice-Chancellor, Discipline Committee or Examination Committee, as the case may be, and who has been debarred from appearing at the examinations of the University for more than one year, may, within ten days of the date of receipt of such orders or copy of such resolution by him, appeal to the Executive Council and the Executive Council may confirm, modify or reverse the decision of the Vice-Chancellor or the Committee, as the case may be. (2) Any dispute arising out of any disciplinary action taken by the University against a student shall, at the request of such student, be referred to a Tribunal of Arbitration and the provisions of sub-sections (2), (3), (4) and (5) of section 33 shall, as far as may be, apply to a reference made under this sub-section. **35. Right to appeal. —Every employee or student of the University or of a College or Institution** maintained by the University shall, notwithstanding anything contained in this Act, have a right to appeal within such time as may be prescribed by the Statutes, to the Executive Council against the decision of any officer or authority of the University, or, the Principal or the management of any College or an Institution, as the case may be, and thereupon the Executive Council may confirm, modify or reverse the decision appealed against. **36. Provident and pension funds. — (1) The University shall constitute for the benefit of its** employees such provident or pension fund or provide such insurance schemes as it may deem fit in such manner and subject to such conditions as may be prescribed by the Statutes. (2) Where such provident fund or pension fund has been so constituted, the Central Government may declare that the provisions of the Provident Funds Act, 1925 (19 of 1925), shall apply to such fund, as if it were a Government provident fund. **37. Disputes as to constitution of authorities and bodies. —If any question arises as to whether any** person has been duly elected or appointed as, or is entitled to be, a member of any authority or other body of the University, the matter shall be referred to the Visitor whose decision thereon shall be final. **38. Filling of casual vacancies. —All casual vacancies among the members (other than** _ex officio_ members) of any authority or other body of the University shall be filled, as soon as may be, by the person or body who appoints, elects or co-opts the member whose place has become vacant and the ----- person appointed, elected or co-opted to a casual vacancy shall be a member of such authority or body for the residue of the term for which the person whose place he fills would have been a member. **39. Proceedings of authorities or bodies not invalidated by vacancies.—No act or proceedings of** any authority or other body of the University shall be invalid merely by reason of the existence of a vacancy or vacancies among its members. **40. Protection of action taken in good faith.—No suit or other legal proceedings shall lie against** any officer or other employee of the University for anything which is in good faith done or intended to be done in pursuance of any of the provisions of this Act, the Statutes or the Ordinances. **41. Mode of proof of University record.—Notwithstanding anything contained in the Indian** Evidence Act, 1872 (1 of 1872.) or in any other law for the time being in force, a copy of any receipt, application, notice, order, proceeding or resolution of any authority or other body of the University, or any other document in possession of the University, or any entry in any register duly maintained by the University, if certified by the Registrar, shall be received as _prima facie evidence of such receipt,_ application, notice, order, proceeding, resolution or document or the existence of entry in the register and shall be admitted as evidence of the matters and transactions therein where the original thereof would, if produced, have been admissible in evidence. **42. Power to remove difficulties.— (1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made under this section after the expiry of three years from the commencement of this Act. (2) Every order made under sub-section (1) shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the order or both Houses agree that the order should not be made, the order shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that order. **43. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid** **before Parliament.—(1) Every Statute, Ordinances or Regulation made under this Act shall be published** in the Official Gazette. (2) Every Statute, Ordinances or Regulation made under this Act, shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the Statute, Ordinances or Regulation or both Houses agree that the Statute, Ordinances or Regulation should not be made, the Statute, Ordinances or Regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that Statute, Ordinances or Regulation. (3) The power to make Statutes, Ordinances or Regulations shall include the power to give retrospective effect, from a date not earlier than the date of commencement of this Act, to the Statutes, Ordinances or Regulation or any of them but no retrospective effect shall be given to any Statutes, Ordinances or Regulations so as to prejudicially affect the interests of any person to whom such Statutes, Ordinances or Regulations may be applicable. ----- **44. Transitional provisions.—Notwithstanding anything contained on this Act and the Statutes,–** (a) the first Chancellor and the first Vice-Chancellor shall be appointed by the Visitor in such manner and on such conditions as may be deemed fit and each of the said officers shall hold office for such term, not exceeding five years, as may be specified by the Visitor; (b) the first Registrar and the first Finance Officer shall be appointed by the Visitor and each of the said officers shall hold office for a term of three years; (c) the first Court and the first Executive Council shall consist of not more than thirty-one members and eleven members, respectively, who shall be nominated by the Central Government and shall hold office for a term of three years; and (d) the first Academic Council shall consist of not more than twenty-one members, who shall be nominated by the Central Government and shall hold office for a term of three years: Provided that if any vacancy occurs in the above offices or authorities, the same shall be filled by appointment by the Visitor or nomination by the Central Government, as the case may be, and the person so appointed or nominated shall hold office for so long as the officer or member in whose place he is appointed or nominated would have held office, if such vacancy had not occurred. **45. Amendment of Madhya Pradesh Act 22 of 1973.—(1) In the Madhya Pradesh Vishwavidyalaya** Adhiniyam, 1973, in the Second Schedule, the entries relating to Guru Ghasidas Vishwavidyalaya and Doctor Harisingh Gour Vishwavidyalaya shall be omitted. (2) Notwithstanding such omission, — (a) all appointments made, orders issued, degrees and other academic distinctions conferred, diplomas and certificates awarded, privileges granted, or other things done under the Madhya Pradesh Vishwavidyalaya Adhiniyam, 1973 (Madhya Pradesh Act 22 of 1973.), shall be deemed to have been respectively made, issued, conferred, awarded, granted or done under the corresponding provisions of this Act and, except as otherwise provided by this Act or the Statutes, continue in force unless and until they are superseded by any order made under this Act or the Statutes; and (b) all proceedings of Selection Committees for the appointment or promotion of teachers that took place before the commencement of this Act and all actions of the Executive Council in respect of the recommendations of such Selection Committees where no orders of appointment on the basis thereof were passed before the commencement of this Act shall, notwithstanding that the procedure for selection has been modified by this Act, be deemed to have been valid but further proceeding in connection with such pending selections shall be taken in accordance with the provisions of this Act and be continued from the stage where they stood immediately before such commencement, except if the concerned authorities take, with the approval of the Visitor, a decision to the contrary. **46. Amendment of President’s Act 10 of 1973. — (1) In the Uttar Pradesh State Universities** Act, 1973,– (a) in sub-section (1) of section 4, the words, figures and brackets “and a University of Garhwal which shall from April 25, 1989 be called the Hemvati Nandan Bahuguna Garhwal University at Srinagar (District Garhwal)” shall be omitted; (b) in clause (d) of sub-section (1) of section 20, the words “the Hemvati Nandan Bahuguna Garhwal University” shall be omitted; (c) in sub-section (2) of section 52, for the words “the Universities of Kumaun and Garhwal” the words “the University of Kumaun” shall be substituted; (d) section 72B shall be omitted; (e) in the Schedule, Serial No. 8 and the entries relating thereto shall be omitted. (2) Notwithstanding the omission and substitution referred to in sub-section (1),– ----- (a) all appointments made, orders issued, degrees and other academic distinctions conferred, diplomas and certificates awarded, privileges granted, or other things done under the Uttar Pradesh State Universities Act, 1973 (President’s Act 10 of 1973.), shall be deemed to have been respectively made, issued, conferred, awarded, granted or done under the corresponding provisions of this Act and, except as otherwise provided by this Act or the Statutes, continue in force unless and until they are superseded by and order made under this Act or the Statutes; and (b) all proceedings of Selection Committees for the appointment or promotion of teachers that took place before the commencement of this Act and all actions of the Executive Council in respect of the recommendations of such Selection Committees where no orders of appointment on the basis thereof were passed before the commencement of this Act shall, notwithstanding that the procedure for selection has been modified by this Act, be deemed to have been valid but further proceeding in connection with such pending selections shall be taken in accordance with the provisions of this Act and be continued from the stage where they stood immediately before such commencement, except if the concerned authorities take, with the approval of the Visitor, a decision to the contrary. **47. Repeal and savings.—(1) The Central Universities Ordinance, 2009 (Ord. 3 of 2009.) is hereby** repealed. (2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act, and— (a) all appointments made, orders issued, degrees and other academic distinctions conferred, diplomas and certificates awarded, privileges granted, or other things done under the Central Universities Ordinance, 2009 (Ord. 3 of 2009.), shall be deemed to have been respectively made, issued, conferred, awarded, granted or done under the corresponding provisions of this Act and, except as otherwise provided by, or under this Act or the Statutes, continue in force unless and until they are superseded by any order made under this Act or the Statutes; and (b) all proceedings of Selection Committees for the appointment or promotion of teachers that took place before the commencement of this Act and all actions of the Executive Council in respect of the recommendations of such Selection Committees where no orders of appointment on the basis thereof were passed before the commencement of this Act shall, notwithstanding that the procedure for selection has been modified by this Act, be deemed to have been valid but further proceeding in connection with such pending selections shall be taken in accordance with the provisions of this Act and be continued from the stage where they stood immediately before such commencement, except if the concerned authorities take, with the approval of the Visitor, a decision to the contrary. ----- Serial No. 1[THE FIRST SCHEDULE [See section 3(4)] Name of the State Name of the University Territorial jurisdiction 1. Andhra Pradesh Central University of Andhra Pradesh 2. Andhra Pradesh Central Tribal University of Andhra Pradesh Whole of the State of Andhra Pradesh. Whole of the State of Andhra Pradesh. 3. Bihar Central University of South Bihar Territory in the south of the River Ganges in the State of Bihar. 4. Bihar Mahatma Gandhi Central University Territory in the north of the River Ganges in the State of Bihar. 5. Gujarat Central University of Gujarat Whole of the State of Gujarat. 2[5A. Gujarat Gati Shakti Vishwavidyalaya Whole of India.] 6. Haryana Central University of Haryana Whole of the State of Haryana. 7. Himachal Pradesh 8. Jammu and Kashmir Central University of Himachal Pradesh. Central University of Kashmir Kashmir Division of the State of Jammu and Kashmir. Whole of the State of Himachal Pradesh. 9. Jammu and Kashmir Central University of Jammu Jammu Division of the State of Jammu and Kashmir. 10. Jharkhand Central University of Jharkhand Whole of the State of Jharkhand 11. Karnataka Central University of Karnataka Whole of the State of Karnataka. 12. Kerala Central University of Kerala Whole of the State of Kerala. 13. Odisha Central University of Odisha Whole of the State of Odisha. 14. Punjab Central University of Punjab Whole of the State of Punjab. 15. Rajasthan Central University of Rajasthan Whole of the State of Rajasthan. 16. Tamil Nadu Central University of Tamil Nadu Whole of the State of Tamil Nadu.] 3[17. Telangana Sammakka Sarakka Central Tribal University 1. Subs. by Act 15 of 2019, s. 4, the First Schedule (w.e.f. 5-8-2019). 2. Ins. by Act 17 of 2022, s. 6 (w.e.f. 6-12-2022). 3. Ins. by Act 36 of 2023, s. 3 (w.e.f. 24-1-2024). Whole of the State of Telangana.] ----- THE SECOND SCHEDULE (See section 27) The Statutes of the University **1. Chancellor.—(1) The Chancellor shall be appointed by the Visitor from a panel of not less than** three persons recommended by the Executive Council from amongst persons of eminence in the academic or public life of the country: Provided that if the Visitor does not approve of any of the persons so recommended, he may call for fresh recommendations from the Executive Council. (2) The Chancellor shall hold office for a term of five years and shall not be eligible for re-appointment: Provided that notwithstanding the expiry of his term of office, the Chancellor shall continue to hold office until his successor enters upon his office. **2. Vice-Chancellor.—(1) The Vice-Chancellor shall be appointed by the Visitor from out of a panel** recommended by a Committee as constituted under clause (2): Provided that if the Visitor does not approve any of the persons included in the panel, he may call for an extended fresh panel. (2) The Committee referred to in clause (1) shall consist of five persons, out of whom three shall be nominated by the Executive Council and two by the Visitor, and one of the nominees of the Visitor shall be the convener of the Committee: Provided that none of the members of the Committee shall be an employee of the University or a College or an Institution maintained by the University or a member of any authority of the University. (3) The Vice-Chancellor shall be a whole-time salaried officer of the University. (4) The Vice-Chancellor shall hold office for a term of five years from the date on which he enters upon his office, or until he attains the age of seventy years, whichever is earlier, and he shall not be eligible for re-appointment: Provided that notwithstanding the expiry of the said period of five years, he shall continue in office until his successor in appointed and enters upon his office: Provided further that the Visitor may direct any Vice-Chancellor after his term has expired, to continue in office for such period, not exceeding a total period of one year, as may be specified by him. (5) Notwithstanding anything contained in clause (4), the Visitor may, at any time after the Vice-Chancellor has entered upon his office, by order in writing, remove the Vice-Chancellor from office on grounds of incapacity, misconduct or violation of statutory provisions: Provided that no such order shall be made by the Visitor unless the Vice-Chancellor has been given a reasonable opportunity of showing cause against the action proposed to be taken against him: Provided further that the Visitor shall consult the Chancellor also before making such order: Provided also that the Visitor may, at any time before making such order, place the Vice-Chancellor under suspension, pending enquiry. (6) The emoluments and other conditions of service of the Vice-Chancellor shall be as follows:– (i) The Vice-Chancellor shall be paid a monthly salary and allowances, other than house rent allowance, at the rates fixed by the Central Government from time to time and he shall be entitled, without payment of rent, to use a furnished residence throughout his term of office and no charge shall fall on the Vice-Chancellor in respect of the maintenance of such residence. (ii) The Vice-Chancellor shall be entitled to such terminal benefits and allowances as may be fixed by the Central Government from time to time: Provided that where an employee of the University, or a College or an Institution maintained by the University, or of any other University or any College or Institution maintained by or admitted to ----- the privileges of, such other University, is appointed as the Vice-Chancellor, he may be allowed to continue to contribute to any provident fund of which he is a member and the University shall contribute to the account of such person in that provident fund at the same rate at which the person had been contributing immediately before his appointment as the Vice-Chancellor: Provided further that where such employee had been a member of any pension scheme, the University shall make the necessary contribution to such scheme. (iii) The Vice-Chancellor shall be entitled to travelling allowance at such rates as may be fixed by the Executive Council. (iv) The Vice-Chancellor shall be entitled to leave on full pay at the rate of thirty days in a calendar year and the leave shall be credited to his account in advance in two half-yearly instalments of fifteen days each on the first day of January and July every year: Provided that if the Vice-Chancellor assumes or relinquishes charge of the office of the Vice-Chancellor during the currency of a half year, the leave shall be credited proportionately at the rate of two and-a-half days for each completed month of service. (v) In addition to the leave referred to in sub-clause (iv), the Vice-Chancellor shall also be entitled to half-pay leave at the rate of twenty days for each completed year of service, and half-pay leave may also be availed of as commuted leave on full pay on medical certificate: Provided that when such commuted leave is availed of, twice the amount of half-pay leave shall be debited against half-pay leave due. (7) If the office of the Vice-Chancellor becomes vacant due to death, resignation or otherwise, or if he is unable to perform his duties due to ill-health or any other cause, the Pro-Vice-Chancellor shall perform the duties of the Vice-Chancellor: Provided that if the Pro-Vice-Chancellor is not available, the senior-most Professor shall perform the duties of the Vice-Chancellor until a new Vice-Chancellor assumes office or the existing Vice-Chancellor resumes the duties of his office, as the case may be. **3. Powers and duties of Vice-Chancellor.—(1) The Vice-Chancellor shall be ex officio Chairman of** the Executive Council, the Academic Council and the Finance Committee and shall, in the absence of the Chancellor, preside at the Convocations held for conferring degrees and at meetings of the Court. (2) The Vice-Chancellor shall be entitled to be present at, and address, any meeting of any authority or other body of the University, but shall not be entitled to vote thereat unless he is a member of such authority or body. (3) It shall be the duty of the Vice-Chancellor to see that this Act, the Statutes, the Ordinances and the Regulations are duly observed and he shall have all the powers necessary to ensure such observance. (4) The Vice-Chancellor shall have all the powers necessary for the proper maintenance of discipline in the University and he may delegate any such powers to such person or persons as he deems fit. (5) The Vice-Chancellor shall have the power to convene or cause to be convened the meetings of the Executive Council, the Academic Council and the Finance Committee. **4. Pro-Vice-Chancellor.—(1) The Pro-Vice-Chancellor shall be appointed by the Executive Council** on the recommendation of the Vice-Chancellor: Provided that where the recommendation of the Vice-Chancellor is not accepted by the Executive Council, the matter shall be referred to the Visitor who may either appoint the person recommended by the Vice-Chancellor or ask the Vice-Chancellor to recommend another person to the Executive Council: Provided further that the Executive Council may, on the recommendation of the Vice-Chancellor, appoint a Professor to discharge the duties of the Pro-Vice-Chancellor in addition to his own duties as a Professor. (2) The term of office of the Pro-Vice-Chancellor shall be such as may be decided by the Executive Council but it shall not in any case exceed five years or until the expiration of the term of office of the Vice-Chancellor, whichever is earlier: Provided that the Pro-Vice-Chancellor whose term of office has expired shall be eligible for ----- re-appointment: Provided further that, in any case, the Pro-Vice-Chancellor shall retire on attaining the age of seventy years: Provided also that the Pro-Vice-Chancellor shall, while discharging the duties of the Vice-Chancellor under clause (7) of Statute 2, continue in office, notwithstanding the expiration of his term of office as Pro-Vice-Chancellor, until the Vice-Chancellor resumes office or a new Vice-Chancellor assumes office, as the case may be. (3) The emoluments and other terms and conditions of service of the Pro-Vice-Chancellor shall be such as may be prescribed by the Ordinances. (4) The Pro-Vice-Chancellor shall assist the Vice-Chancellor in respect of such matters as may be specified by the Vice-Chancellor in this behalf, from time to time, and shall also exercise such powers and perform such duties as may be assigned or delegated to him by the Vice-Chancellor. **5. Deans of Schools.—(1) Every Dean of School shall be appointed by the Vice-Chancellor from** amongst the Professors in the School by rotation in order of seniority for a period of three years: Provided that in case there is only one Professor or no Professor in a School, the Dean shall be appointed, for the time being, from amongst the Professor, if any, and the Associate Professors in the School by rotation in the order of seniority: Provided further that a Dean on attaining the age of sixty-five years shall cease to hold office as such. (2) When the office of the Dean is vacant or when the Dean is, by reason of illness, absence or any other cause, unable to perform duties of his office, the duties of the office shall be performed by the senior-most Professor or Associate Professor, as the case may be, in the School. (3) The Dean shall be the Head of the School and shall be responsible for the conduct and maintenance of the standards of teaching and research in the School and shall have such other functions as may be prescribed by the Ordinances. (4) The Dean shall have the right to be present and to speak at any meeting of the Boards of Studies or Committees of the School, as the case may be, but shall not have the right to vote thereat unless he is a member thereof. **6. Registrar.—(1) The Registrar shall be appointed by the Executive Council on the recommendation** of a Selection Committee constituted for the purpose and shall be whole-time salaried officer of the University. (2) He shall be appointed for a term of five years and shall be eligible for re-appointment. (3) The emoluments and other terms and conditions of service of the Registrar shall be such as may be prescribed by the Executive Council from time to time: Provided that the Registrar shall retire on attaining the age of sixty-two years. (4) When the office of the Registrar is vacant or when the Registrar is, by reason of illness, absence or any other cause, unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) (a) The Registrar shall have power to take disciplinary action against such of the employees, excluding teachers and other academic staff, as may be specified in the order of the Executive Council and to suspend them pending inquiry, to administer warnings to them or to impose on them the penalty of censure or the withholding of increment: Provided that no such penalty shall be imposed unless the person has been given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. (b) An appeal shall lie to the Vice-Chancellor against any order of the Registrar imposing any of the penalties specified in sub-clause (a). (c) In a case where the inquiry discloses that a punishment beyond the power of the Registrar is called ----- for, the Registrar shall, upon the conclusion of the inquiry, make a report to the Vice-Chancellor along with his recommendations: Provided that an appeal shall lie to the Executive Council against an order of the Vice-Chancellor imposing any penalty. (6) The Registrar shall be ex officio Secretary of the Executive Council and the Academic Council, but shall not be deemed to be member of either of these authorities and he shall be _ex officio_ Member-Secretary of the Court. (7) It shall be the duty of the Registrar— (a) to be the custodian of the records, the common seal and such other property of the University as the Executive Council shall commit to his charge; (b) to issue all notices convening meetings of the Court, the Executives Council, the Academic Council and of any Committees appointed by those authorities; (c) to keep the minutes of all the meetings of the Court, the Executive Council, the Academic Council and of any Committees appointed by those authorities; (d) to conduct the official correspondence of the Court, the Executive Council and the Academic Council; (e) to supply to the Visitor, copies of the agenda of the meetings of the authorities of the University as soon as they are issued and the minutes of such meetings; (f) to represent the University in suits or proceedings by or against the University, sign powers of attorney and verify pleadings or depute his representative for the purpose; and (g) to perform such other duties as may be specified in the Statutes, the Ordinances or the Regulations or as may be required from time to time by the Executive Council or Vice-Chancellor. **7. Finance Officer.—(1) The Finance Officer shall be appointed by the Executive Council on the** recommendations of Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. (2) The Finance Officer shall be appointed for a term of five years and shall be eligible for re-appointment. (3) The emoluments and other terms and conditions of service of the Finance Officer shall be such as may be prescribed by the Executive Council from time to time: Provided that the Finance Officer shall retire on attaining the age of sixty-two years. (4) When the office of the Finance Officer is vacant or when the Finance Officer is, by reason of illness, absence or any other cause, unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) The Finance Officer shall be _ex officio Secretary of the Finance Committee, but shall not be_ deemed to be a member of such Committee. (6) The Finance Officer shall— (a) exercise general supervision over the funds of the University and shall advise it as regards its financial policy; and (b) perform such other financial functions as may be assigned to him by the Executive Council or as may be prescribed by the Statutes or the Ordinances. (7) Subject to the control of the Executive Council, the Finance Officer shall— (a) hold and manage the property and investments of the University including trust and endowed property; (b) ensure that the limits fixed by the Executive Council for recurring and non-recurring ----- expenditure for a year are not exceeded and that all moneys are expended on the purpose for which they are granted or allotted; (c) be responsible for the preparation of annual accounts and the budget of the University and for their presentation to the Executive Council; (d) keep a constant watch on the state of the cash and bank balances and on the state of investments; (e) watch the progress of the collection of revenues and advise on the methods of collection employed; (f) ensure that the registers of buildings, land, furniture and equipment are maintained up-to-date and that stock-checking is conducted, of equipment and other consumable materials in all offices, Departments, Centres and Specialised Laboratories; (g) bring to the notice of the Vice-Chancellor unauthorised expenditure and other financial irregularities and suggest disciplinary action against persons at fault; and (h) call for from any office, Department, Centre, Laboratory, College or Institution maintained by the University any information or returns that he may consider necessary for the performance of his duties. (8) Any receipt given by the Finance Officer or the person or persons duly authorised in this behalf by the Executive Council for any money payable to the University shall be sufficient discharge for payment of such money. **8. Controller of Examinations.—(1) The Controller of Examinations shall be appointed by the** Executive Council on the recommendations of a Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. (2) The Controller of Examinations shall be appointed for a term of five years and shall be eligible for re-appointment. (3) The emoluments and other terms and conditions of service of the Controller of Examinations shall be such as may be prescribed by the Executive Council from time to time: Provided that the Controller of Examinations shall retire on attaining the age of sixty-two years. (4) When the office of the Controller of Examinations is vacant or when the Controller of Examinations is, by reason of illness, absence or any other cause, unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (5) The Controller of Examinations shall arrange for and superintend the examinations of the University in the manner prescribed by the Ordinances. **9. Librarian.—(1) The Librarian shall be appointed by the Executive Council on the** recommendations of the Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. (2) The Librarian shall exercise such powers and perform such duties as may be assigned to him by the Executive Council. **10. Meetings of Court.—(1) An annual meeting of the Court shall be held on a date to be fixed by** the Executive Council unless some other date has been fixed by the Court in respect of any year. (2) At an annual meeting of the Court, a report on the working of the University during the previous year, together with a statement of the receipts and expenditure, the balance-sheet as audited, and the financial estimates for the next year shall be presented. ----- (3) A copy of the statement of receipts and expenditure, the balance-sheet and the financial estimates referred to in clause (2) shall be sent to every member of the Court at least seven days before the date of the annual meeting. (4) Special meetings of the Court may be convened by the Executive Council or the Vice-Chancellor or if there is no Vice-Chancellor, the Pro-Vice-Chancellor or if there is no Pro-Vice-Chancellor, by the Registrar. (5) Eleven members of the Court shall form a quorum for a meeting of the Court. **11. Quorum for meeting of Executive Council.—Seven member of the Executive Council shall** form a quorum for a meeting of the Executive Council. **12. Powers and functions of Executive Council.—(1) The Executive Council shall have the power** of management and administration of the revenues and property of the University and the conduct of all administrative affairs of the University not otherwise provided for. (2) Subject to the provisions of this Act, the Statutes and the Ordinances, the Executives Council shall, in addition to all other powers vested in it, have the following powers, namely:– (i) to create teaching and other academic posts including Chairs, to determine the number and emoluments of such posts and to define the duties and conditions of service of Professors, Associate Professors, Assistant Professors and other academic staff: Provided that no action shall be taken by the Executive Council in respect of the number and qualifications of teachers and other academic staff otherwise than after consideration of the recommendations of the Academic Council; (ii) to appoint such Professors, Associate Professors, Assistant Professors and other academic staff including Chairs, as may be necessary, on the recommendation of the Selection Committee constituted for the purpose and to fill up temporary vacancies therein; (iii) to promote inter-facial research by making joint appointments of teaching staff in different Schools, Departments and Centres; (iv) to create administrative, ministerial and other necessary posts and to define their duties and conditions of their service and to make appointments thereto in the manner prescribed by the Ordinances; (v) to grant leave of absence to any officer of the University other than the Chancellor and the Vice-Chancellor, and to make necessary arrangements for the discharge of the functions of such officer during his absence; (vi) to regulate and enforce discipline among employees in accordance with the Statutes and the Ordinances; (vii) to manage and regulate the finances, accounts, investments, property, business and all other administrative affairs of the University and for that purpose to appoint such agents as it may think fit; (viii) to fix limits on the total recurring and the total non-recurring expenditure for a year on the recommendation of the Finance Committee; (ix) to invest any money belonging to the University, including any unapplied income, in such stocks, funds, share or securities, from time to time, as it may think fit or in the purchase of immovable property in India, with the like powers of varying such investment from time to time; (x) to transfer or accept transfers of any movable or immovable property on behalf of the University; (xi) to provide buildings, premises, furniture and apparatus and other means needed for carrying on the work of the University; (xii) to enter into, vary, carry out and cancel contracts on behalf of the University; ----- (xiii) to entertain, adjudicate upon, and if thought fit, to redress any grievances of the employees and students of the University who may, for any reason, feel aggrieved; (xiv) to appoint examiners and moderators and, if necessary, to remove them, and to fix their fees, emoluments and travelling and other allowances, after consulting the Academic Council; (xv) to select a common seal for the University and provide for the use of such seal; (xvi) to make such special arrangements as may be necessary for the residence of women students; (xvii) to institute fellowships, scholarships, studentships, medals and prizes; (xviii) to provide for the appointment of Visiting Professors, Emeritus Professors, Consultants and Scholars and determine the terms and conditions of such appointments; (xix) to enter into partnership with industry and non-governmental agencies for the advancement of knowledge and establish a corpus of funds out of the profits of such partnership; and (xx) to exercise such other powers and perform such other duties as may be conferred or imposed on it by this Act or the Statutes. **13. Quorum of meeting of Academic Council.—Nine members of the Academic Council shall form** a quorum for a meeting of the Academic Council. **14. Powers and functions of Academic Council.—Subject to the provisions of this Act, the Statutes** and the Ordinances, the Academic Council shall, in addition to all other powers vested in it, have the following powers, namely:– (a) to exercise general supervision over the academic policies of the University and to give directions regarding methods of instruction, co-ordination of teaching among the Colleges and the Institutions, evaluation of research and improvement of academic standards; (b) to bring about and promote inter-School co-ordination and to establish or appoint such committees or boards as may deemed necessary for the purpose; (c) to consider matters of general academic interest either on its own initiative, or on a reference by a School or the Executive Council, and to take appropriate action thereon; and (d) to frame such Regulations and rules consistent with the Statutes and the Ordinances regarding the academic functioning of the University, discipline, residence, admissions, award of fellowships and studentships, fees, concessions, corporate life and attendance. **15. Schools of Studies and Departments.—(1) The University shall have such Schools of Studies as** may be specified in the Statutes. (2) Every School shall have a School Board and the members of the first School Board shall be nominated by the Executive Council for a period of three years. (3) The composition, powers and functions of a School Board shall be prescribed by the Ordinances. (4) The conduct of the meetings of a School Board and the quorum required for such meetings shall be prescribed by the Ordinances. (5) (a) Every School shall consist of such Departments as may be assigned to it by the Ordinances: Provided that the Executive Council may, on the recommendation of the Academic Council, establish Centres of Studies to which may be assigned such teachers of the University as the Executive Council may consider necessary. (b) Each Department shall consist of the following members, namely:— (i) teachers of the Department; (ii) persons conducting research in the Department; ----- (iii) Dean of the School; (iv) Honorary Professors, if any, attached to the Department; and (v) such other persons as may be members of the Department in accordance with the provisions of the Ordinances. **16. Board of Studies.—(1) Each Department shall have a Board of Studies.** (2) The constitution of the Board of Studies and the term of office of its members shall be prescribed by the Ordinances. (3) Subject to the overall control and supervision of the Academic Council, the functions of a Board of Studies shall be to approve subjects for research for various degrees and other requirements of research degrees and to recommend to the concerned School Board in the manner prescribed by the Ordinances— (a) courses of studies and appointment of examiners for courses, but excluding research degrees; (b) appointment of supervisors for research; and (c) measures for the improvement of the standard of teaching and research: Provided that the above functions of a Board of Studies shall, during the period of three years immediately after the commencement of this Act, be performed by the Department. **17. Finance Committee.—(1) The Finance Committee shall consist of the following members,** namely:— (i) the Vice-Chancellor; (ii) the Pro-Vice-Chancellor; (iii) one person to be nominated by the Court; (iv) three persons to be nominated by the Executive Council, out of whom at least one shall be a member of the Executive Council; and (v) three persons to be nominated by the Visitor. (2) Five members of the Finance Committee shall form a quorum for a meeting of the Finance Committee. (3) All the members of the Finance Committee, other than ex officio members, shall hold office for a term of three years. (4) A member of the Finance Committee shall have the right to record a minute of dissent if he does not agree with any decision of the Finance Committee. (5) The Finance Committee shall meet at least thrice every year to examine the accounts and to scrutinise proposals for expenditure. (6) All proposals relating to creation of posts, and those items which have not been included in the budget, shall be examined by the Finance Committee before they are considered by the Executive Council. (7) The annual accounts and the financial estimates of the University prepared by the Finance Officer shall be laid before the Finance Committee for consideration and comments and thereafter submitted to the Executive Council for approval. (8) The Finance Committee shall recommend limits for the total recurring expenditure and the total non-recurring expenditure for the year, based on the income and resources of the University (which, in the case of productive works, may include the proceeds of loans). **18. Selection Committees.—(1) There shall be Selection Committees for making recommendations** to the Executive Council for appointment to the post of Professor, Associate Professor, Assistant Professor, Registrar, Finance Officer, Controller of Examinations, Librarian and Principals of Colleges and Institutions maintained by the University. ----- (2) The Selection Committee for appointment to the posts specified in Column 1 of the Table below shall consist of the Vice-Chancellor, a nominee of the Visitor and the persons specified in the corresponding entry in Column 2 of the said Table: TABLE 1 2 Professor (i) The Dean of the School. (ii) The Head of the Department, if he is a Professor. (iii) Three persons not in the service of the University, nominated by the Executive Council, out of a panel of names recommended by the Academic Council for their special knowledge of, or interest in, the subject with which the Professor will be concerned. Associate Professor/Assistant Professor Registrar/Finance Officer/Controller of Examinations (i) The Head of the Department. (ii) One Professor nominated by the Vice-Chancellor. (iii) Two persons not in the service of the University, nominated by the Executive Council, out of a panel of names recommended by the Academic Council for their special knowledge of, or interest in, the subject with which the Associate Professor or Assistant Professor will be concerned. (i) Two members of the Executive Council nominated by it. (ii) One person not in the service of the University nominated by the Executive Council. Librarian (i) Two persons not in the service of the University who have special knowledge of the subject of the Library Science or Library Administration nominated by the Executive Council. (ii) One person not in the service of the University nominated by the Executive Council. Principal of College or Institution maintained by the University Three persons not in the service of the University of whom two shall be nominated by the Executive Council and one by the Academic Council for their special knowledge of, or interest in, a subject in which instruction is being provided by the College or Institution. Note 1.– Where the appointment is being made for an inter-disciplinary project, the head of the project shall be deemed to be the Head of the Department concerned. Note 2.– The Professor to be nominated by the Vice-Chancellor shall be a Professor concerned with the speciality for which the selection is being made and the Vice-Chancellor shall consult the Head of the Department and the Dean of School before nominating the Professor. (3) The Vice-Chancellor, or in his absence the Pro-Vice-Chancellor, shall convene and preside at the meeting of the Selection Committee: Provided that the meeting of the Selection Committee shall be fixed after prior consultation with, and subject to the convenience of Visitor’s nominee and the experts nominated by the Executive Council: Provided further that the proceedings of the Selection Committee shall not be valid unless,— (a) where the number of Visitor’s nominee and the persons nominated by the Executive Council is four in all, at least three of them attend the meeting; and (b) where the number of Visitor’s nominee and the persons nominated by the Executive Council is three in all, at least two of them attend the meeting. ----- (4) The procedure to be followed by the Selection Committee shall be laid down in the Ordinances. (5) If the Executive Council is unable to accept the recommendations made by the Selection Committee, it shall record its reasons and submit the case to the Visitor for final orders. (6) Appointments to temporary posts shall be made in the manner indicated below:— (i) If the temporary vacancy is for duration longer than one academic session, it shall be filled on the advice of the Selection Committee in accordance with the procedure indicated in the foregoing clauses: Provided that if the Vice-Chancellor is satisfied that in the interests of work it is necessary to fill the vacancy, the appointment may be made on a purely temporary basis on the advice of a local Selection Committee referred to in sub-clause (ii) for a period not exceeding six months. (ii) If the temporary vacancy is for a period less than a year, an appointment to such vacancy shall be made on the recommendation of a local Selection Committee consisting of the Dean of the School concerned, the Head of the Department and a nominee of the Vice-Chancellor: Provided that if the same person holds the offices of the Dean and the Head of the Department, the Selection Committee may contain two nominees of the Vice-Chancellor: Provided further that in the case of sudden casual vacancies of teaching posts caused by death or any other reason, the Dean may, in consultation with the Head of the Department concerned, make a temporary appointment for a month and report to the Vice-Chancellor and the Registrar about such appointment. (iii) No teacher appointed temporarily shall, if he is not recommended by a regular Selection Committee for appointment under the Statutes, be continued in service on such temporary employment, unless he is subsequently selected by a local Selection Committee or a regular Selection Committee, for a temporary or permanent appointment, as the case may be. **19. Special mode of appointment.—(1) Notwithstanding anything contained in Statute 18, the** Executive Council may invite a person of high academic distinction and professional attainments to accept a post of Professor or Associate Professor or any other equivalent academic post in the University on such terms and conditions as it deems fit and on the person agreeing to do so appoint him to the post: Provided that the Executive Council may also create supernumerary post for a specified period for appointment of such persons: Provided further that the number of supernumerary post so created should not exceed five per cent. of the total posts in the University. (2) The Executive Council may appoint a teacher or any other academic staff working in any other University or organistion for undertaking a joint project in accordance with the manner laid down in the Ordinances. **20. Appointment for fixed tenure.—The Executive Council may appoint a person selected in** accordance with the procedure laid down in Statute 18 for a fixed tenure on such terms and conditions as it deems fit. **21. Committees.—(1) An authority of the University may appoint as many standing or special** Committees as it may deem fit, and may appoint to such Committees persons who are not members of such authority. (2) A Committee appointed under clause (1) may deal with any subject delegated to it subject to subsequent confirmation by the authority appointing it. **22. Terms and conditions of service and code of conduct of teachers, etc.—(1) All the teachers** and other academic staff of the University shall, in the absence of any agreement to the contrary, be governed by the terms and conditions of service and code of conduct as are specified in the Statutes, the Ordinances and the Regulations. ----- (2) The emoluments of members of the academic staff shall be such as may be prescribed by the Ordinances. (3) Every teacher and member of the academic staff of the University shall be appointed on a written contract, the form of which shall be prescribed by the Ordinances. (4) A copy of every contract referred to in clause (3) shall be deposited with the Registrar. **23. Terms and conditions of service and code of conduct of other employees.—(1) All the** employees of the University, other than the teachers and other academic staff shall, in the absence of any contract to the contrary, be governed by the terms and conditions of service and code of conduct as are specified in the Statutes, the Ordinances and the Regulations. (2) The manner of appointment and emoluments of employees, other than the teachers and other academic staff, shall be such as may be prescribed by the Ordinances. **24. Seniority list.—(1) Whenever, in accordance with the Statutes, any person is to hold an office or** be a member of an authority of the University by rotation according to seniority, such seniority shall be determined according to the length of continuous service of such person in his grade and in accordance with such other principles as the Executive Council may, from time to time, prescribe. (2) It shall be the duty of the Registrar to prepare and maintain in respect of each class of persons to whom the provisions of these Statutes apply, a complete and up-to-date seniority list in accordance with the provisions of clause (1). (3) If two or more persons have equal length of continuous service in a particular grade or the relative seniority of any person or persons in otherwise in doubt, the Registrar may, on his own motion and shall, at the request of any such person, submit the matter to the Executive Council whose decision thereon shall be final. **25. Removal of employees of University.—(1) Where there is an allegation of misconduct against a** teacher, a member of the academic staff or other employee of the University, the Vice-Chancellor, in the case of the teacher or a member of the academic staff, and the authority competent to appoint (hereinafter referred to as the appointing authority) in the case of other employee may, by order in writing, place such teacher, member of the academic staff or other employee, as the case may be, under suspension and shall forthwith report to the Executive Council the circumstances in which the order was made: Provided that the Executive Council may, if it is of the opinion, that the circumstances of the case do not warrant the suspension of the teacher or a member of the academic staff, revoke such order. (2) Notwithstanding anything contained in the terms of the contract of appointment or of any other terms and conditions of service of the employees, the Executive Council in respect of teachers and other academic staff, and the appointing authority in respect of other employees, shall have the power to remove a teacher or a member of the academic staff or other employee, as the case may be, on grounds of misconduct. (3) Save as aforesaid, the Executive Council, or as the case may be, the appointing authority, shall not be entitled to remove any teacher, member of the academic staff or other employee except for a good cause and after giving three months’ notice or on payment of three months’ salary in lieu thereof. (4) No teacher, member of the academic staff or other employee shall be removed under clause (2) or clause (3) unless he has been given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. (5) The removal of a teacher, member of the academic staff or other employee shall take effect from the date on which the order of removal is made: Provided that where the teacher, member of the academic staff or other employee is under suspension at the time of his removal, such removal shall take effect from the date on which he was placed under suspension. ----- (6) Notwithstanding anything contained in the foregoing provisions of this Statute, a teacher, member of the academic staff or other employee may resign— (a) if he is permanent employee, only after giving three months’ notice in writing to the Executive Council or the appointing authority, as the case may be, or by paying three months’ salary in lieu thereof; (b) if he is not a permanent employee, only after given one month’s notice in writing to the Executive Council or, as the case may be, the appointing authority or by paying one month’s salary in lieu thereof: Provide that such resignation shall take effect only on the date on which the resignation is accepted by the Executive Council or the appointing authority, as the case may be. **26. Honorary degrees.—(1) The Executive Council may, on the recommendation of the Academic** Council and by a resolution passed by a majority of not less than two-thirds of the members present and voting, make proposals to the Visitor for the conferment of honorary degrees: Provided that in case of emergency, the Executive Council may, on its own motion, make such proposals. (2) The Executive Council may, by a resolution passed by a majority of not less than two-thirds of the members present and voting, withdraw, with the previous sanction of the Visitor, any honorary degree conferred by the University. **27. Withdrawal of degrees, etc.—The Executive Council may, by a resolution passed by a majority** of not less than two-thirds of the members present and voting, withdraw a degree or academic distinction conferred on, or any certificate or diploma granted to, any person by the University for good and sufficient cause: Provided that no such resolution shall be passed until a notice in writing has been given to that person calling upon him to show cause within such time as may be specified in the notice as to why such a resolution should not be passed and until his objections, if any, and any evidence he may produce in support of them, have been considered by the Executive Council. **28. Maintenance of discipline amongst students of University.—(1) All powers relating to the** maintenance of discipline and disciplinary action in relation to the students of the University shall vest in the Vice-Chancellor. (2) There shall be a Proctor of the University to assist the Vice-Chancellor in the exercise of the powers referred to in clause (1), who shall be appointed by the Executive Council from amongst the Professors and Associate Professors in the manner prescribed by the Ordinances. (3) The Vice-Chancellor may delegate all or any of the powers referred to in clause (1), as he deems proper, to the Proctor and to such other officers as he may specify in this behalf. (4) Without prejudice to the generality of his powers relating to the maintenance of discipline and taking such action, as may seem to him appropriate for the maintenance of discipline, the Vice-Chancellor may, in exercise of such powers, by order, direct that any student or students be expelled or rusticated, for a specified period, or be not admitted to a course or courses of study in a College, Institution or Department or a School of the University for a stated period, or be punished with fine for an amount to be specified in the order, or be debarred from taking an examination or examinations conducted by the University, College, Institution or Department or a School for one or more years, or that the results of the student or students concerned in the examination or examinations in which he or they have appeared be withheld or cancelled. (5) The Principals of Colleges, Institutions, Deans of Schools of Studies and Heads of teaching Departments in the University shall have the authority to exercise all such disciplinary powers over the students in their respective Colleges, Institutions, Schools and teaching Departments in the University, as may be necessary for the proper conduct of such Colleges, Institutions, Schools and teaching Departments. ----- (6) Without prejudice to the powers of the Vice-Chancellor and the Principals and other persons specified in clause (5), detailed rules of discipline and proper conduct shall be made by the University and the Principals of Colleges, Institutions, Deans of Schools of Studies and Heads of teaching Departments in the University may also make such supplementary rules as they deem necessary for the purposes stated therein. (7) At the time of admission, every student shall be required to sign a declaration to the effect that he submits himself to the disciplinary jurisdiction of the Vice-Chancellor and other authorities of the University. **29. Convocations.—Convocations of the University for the conferring of degrees or for other** purposes shall be held in such manner as may be prescribed by the Ordinances. **30. Acting Chairman of meetings.—Where no provision is made for a President or Chairman to** preside over a meeting of any authority of the University or any Committee of such authority or when the President or Chairman so provided for is absent, the members present shall elect one from among themselves to preside at such meeting. **31. Resignation.—Any member, other than an** _ex officio member of the Court, the Executive_ Council, the Academic Council or any other authority of the University or any Committee of such authority may resign by letter addressed to the Registrar and the resignation shall take effect as soon as such letter is received by the Registrar. **32. Disqualification.—(1) A person shall be disqualified for being chosen as, and for being, a** member of any of the authorities, or for being appointed as, and for being, an officer, of the University if– (i) he is of unsound mind; or (ii) he is an undischarged insolvent; or (iii) he has been convicted by a court of law of an offence involving moral turpitude and sentenced in respect thereof to imprisonment for not less than six months. (2) If any question arises as to whether a person is or had been subjected to any of the disqualifications mentioned in clause (1), the question shall be referred to the Visitor and his decision shall be final and no suit or other proceeding shall lie in any civil court against such decision. **33. Residence condition for membership and office.—Notwithstanding anything contained in the** Statutes, a person who is not ordinarily resident in India shall not be eligible to be an officer of the University or a member of any authority of the University. **34. Membership of authorities by virtue of membership of other bodies.—Notwithstanding** anything contained in the Statutes, a person who holds any post in the University or is a member of any authority or body of the University in his capacity as a member of a particular authority or body or as the holder of a particular appointment shall hold such office or membership only for so long as he continues to be a member of that particular authority or body or the holder of that particular appointment, as the case may be. **35. Alumni Association.—(1) There shall be an Alumni Association for the University.** (2) The subscription for membership of the Alumni Association shall be prescribed by the Ordinances. (3) No member of the Alumni Association shall be entitled to vote or stand for election unless he has been a member of the Association for at least one year prior to the date of election and is a degree holder of the University of at least five years standing: Provided that the condition relating to the completion of one year’s membership shall not apply in the case of the first election. **36. Students Council.—(1) There shall be constituted in the University, a Students’ Council for** every academic year, consisting of— (i) the Dean of Students’ Welfare who shall be the Chairman of the Students’ Council; ----- (ii) twenty students to be nominated by the Academic Council on the basis of merit in studies, sports and extra-curricular activities; and (iii) twenty students to be elected by the students as their representatives: Provided that any student of the University shall have the right to bring up any matter concerning the University before the Students’ Council, if so permitted by the Chairman, and he shall have the right to participate in the discussions at any meeting when the matter is taken up for consideration. (2) The functions of the Students’ Council shall be to make suggestions to the appropriate authorities of the University in regard to the programmes of studies, students’ welfare and other matters of importance, in regard to the working of the University in general and such suggestions shall be made on the basis of consensus of opinion. (3) The Students’ Council shall meet at least twice in every academic year and the first meeting of the Council be held in the beginning of the academic session. **37. Ordinances, how to be made.—(1) The first Ordinances made under sub-section (2) of section** 28 may be amended, repealed or added to at any time by the Executive Council in the manner specified in the following sub-clauses. (2) No Ordinances in respect of the matters enumerated in sub-section (1) of section 28 of this Act shall be made by the Executive Council unless a draft of such Ordinances has been proposed by the Academic Council. (3) The Executive Council shall not have power to amend any draft of any Ordinances proposed by the Academic Council under clause (2), but may reject the proposal or return the draft to the Academic Council for re-consideration, either in whole or in part, together with any amendment which the Executive Council may suggest. (4) Where the Executive Council has rejected or returned the draft of an Ordinances proposed by the Academic Council, the Academic Council may consider the question afresh and in case the original draft is reaffirmed by a majority of not less than two-thirds of the members present and voting and more than half the total number of members of the Academic Council, the draft may be sent back to the Executive Council which shall either adopt it or refer it to the Visitor whose decision shall be final. (5) Every Ordinances made by the Executive Council shall come into effect immediately. (6) Every Ordinances made by the Executive Council shall be submitted to the Visitor within two weeks from the date of its adoption. (7) The Visitor shall have the power to direct the University to suspend the operation of any Ordinances. (8) The Visitor shall inform the Executive Council about his objection to the Ordinances referred to in clause (7) and may, after receiving the comments of the University, either withdraw the order suspending the Ordinances or disallow the Ordinances, and his decision shall be final. **38. Regulations.—(1) The authorities of the University may make Regulations consistent with this** Act, the Statutes and the Ordinances for the following matters, namely:— (i) laying down the procedure to be observed at their meetings and the number of members required to form a quorum; (ii) providing for all matters which are required by this Act, the Statutes or the Ordinances to be prescribed by Regulations; and (iii) providing for all other matters solely concerning such authorities or committees appointed by them and not provided for by this Act, the Statutes or the Ordinances. (2) Every authority of the University shall make Regulations providing for the giving of notice to the members of such authority of the dates of meeting and of the business to be considered at meetings and for the keeping of a record of the proceedings of meetings. ----- (3) The Executive Council may direct the amendment in such manner as it may specify of any Regulation made under the Statutes or the annulment of any such Regulation. **39. Delegation of Powers.—Subject to the provisions of this Act and the Statutes, any officer or** authority of the University may delegate his or its powers to any other officer or authority or person under his or its respective control and subject to the condition that overall responsibility for the exercise of the power so delegated shall continue to vest in the officer or authority delegating such powers. -----

26-Aug-2009

35

The Right of Children to Free and Compulsory Education Act, 2009

https://www.indiacode.nic.in/bitstream/123456789/2086/5/a2009-35.pdf

central

# THE RIGHT OF CHILDREN TO FREE AND COMPULSORY EDUCATION ACT, 2009 _______________ # ARRANGEMENT OF SECTIONS _______________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent, application and commencement. 2. Definitions. CHAPTER II RIGHT TO FREE AND COMPULSORY EDUCATION 3. Right of child to free and compulsory education. 4. Special provisions for children not admitted to, or who have not completed, elementary education. 5. Right of transfer to other school. CHAPTER III DUTIES OF APPROPRIATE GOVERNMENT, LOCAL AUTHORITY AND PARENTS 6. Duty of appropriate Government and local authority to establish school. 7. Sharing of financial and other responsibilities. 8. Duties of appropriate Government. 9. Duties of local authority. 10. Duty of parents and guardian. 11. Appropriate Government to provide for pre-school education. CHAPTER IV RESPONSIBILITIES OF SCHOOLS AND TEACHERS 12. Extent of school’s responsibility for free and compulsory education. 13. No capitation fee and screening procedure for admission. 14. Proof of age for admission. 15. No denial of admission. 16. Examination and holding back in certain cases. 17. Prohibition of physical punishment and mental harassment to child. 18. No school to be established without obtaining certificate of recognition. 19. Norms and standards for school. 20. Power to amend Schedule. 21. School Management Committee. 22. School Development Plan. 23. Qualifications for appointment and terms and conditions of service of teachers. 1 ----- SECTIONS 24. Duties of teachers and redressal of grievances. 25. Pupil-Teacher Ratio. 26. Filling up vacancies of teachers. 27. Prohibition of deployment of teachers for non-educational purposes. 28. Prohibition of private tuition by teacher. CHAPTER V CURRICULUM AND COMPLETION OF ELEMENTARY EDUCATION 29. Curriculum and evaluation procedure. 30. Examination and completion certificate. CHAPTER VI PROTECTION OF RIGHT OF CHILDREN 31. Monitoring of child’s right to education. 32. Redressal of grievances. 33. Constitution of National Advisory Council. 34. Constitution of State Advisory Council. CHAPTER VII MISCELLANEOUS 35. Power to issue directions. 36. Previous sanction for prosecution. 37. Protection of action taken in good faith. 38. Power of appropriate Government to make rules. 39. Power of Central Government to remove difficulties. THE SCHEDULE. 2 ----- # THE RIGHT OF CHILDREN TO FREE AND COMPULSORY EDUCATION ACT, 2009 ACT NO. 35 OF 2009 [26th August, 2009.] # An Act to provide for free and compulsory education to all children of the age of six to fourteen years. BE it enacted by Parliament in the Sixtieth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. [1][Short title, extent, application and commencement].—(1) This Act may be called the Right of** Children to Free and Compulsory Education Act, 2009. (2) It shall extend to the whole of India [2]***. (3) It shall come into force on such date[3] as the Central Government may, by notification in the Official Gazette, appoint. 4[(4) Subject to the provisions of articles 29 and 30 of the Constitution, the provisions of this Act shall apply to conferment of rights on children to free and compulsory education. (5) Nothing contained in this Act shall apply to Madrasas, Vedic Pathsalas and educational institutions primarily imparting religious instruction.] **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “appropriate Government” means— (i) in relation to a school established, owned or controlled by the Central Government, or the administrator of the Union territory, having no legislature, the Central Government; (ii) in relation to a school, other than the school referred to in sub-clause (i), established within the territory of— (A) a State, the State Government; (B) a Union territory having legislature, the Government of that Union territory; (b) “capitation fee” means any kind of donation or contribution or payment other than the fee notified by the school; (c) “child” means a male or female child of the age of six to fourteen years; (d) “child belonging to disadvantaged group” means [5][a child with disability or] a child belonging to the Scheduled Caste, the Scheduled Tribe, the socially and educationally backward class or such other group having disadvantage owing to social, cultural, economical, geographical, linguistic, gender or such other factor, as may be specified by the appropriate Government, by notification; (e) “child belonging to weaker section” means a child belonging to such parent or guardian whose annual income is lower than the minimum limit specified by the appropriate Government, by notification; 5[(ee) “child with disability” includes,— (A) a child with “disability” as defined in clause (i) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996); 1. Subs. by Act 2 of 2018, s. 3 and The Second Schedule, for “the marginal heading” (w.e.f. 5-1-2018). 2. The words “except the State of Jammu and Kashmir” omitted by Act 34 of 2019, s. 95 and the Fifth Schedule (w.e.f. 31-10-2019). 3. 1st April, 2010, _vide_ notification No. S.O. 428(E), dated 16th February, 2010, _see_ Gazette of India, Extraordinary, Part II, sec. 3(ii). 4. Ins. by Act 30 of 2012, s. 2 (w.e.f. 1-8- 2012). 5. Ins. by s. 3, ibid. (w.e.f. 1-8-2012). 3 ----- (B) a child, being a person with disability as defined in clause (j) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999); (C) a child with “severe disability” as defined in clause (o) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999).] (f) “elementary education” means the education from first class to eighth class; (g) “guardian”, in relation to a child, means a person having the care and custody of that child and includes a natural guardian or guardian appointed or declared by a court or a statute; (h) “local authority” means a Municipal Corporation or Municipal Council or Zila Parishad or Nagar Panchayat or Panchayat, by whatever name called, and includes such other authority or body having administrative control over the school or empowered by or under any law for the time being in force to function as a local authority in any city, town or village; (i) “National Commission for Protection of Child Rights” means the National Commission for Protection of Child Rights constituted under section 3 of the Commissions for Protection of Child Rights Act, 2005 (4 of 2006); (j) “notification” means a notification published in the Official Gazette; (k) “parent” means either the natural or step or adoptive father or mother of a child; (l) “prescribed” means prescribed by rules made under this Act; (m) “Schedule” means the Schedule annexed to this Act; (n) “school” means any recognised school imparting elementary education and includes— (i) a school established, owned or controlled by the appropriate Government or a local authority; (ii) an aided school receiving aid or grants to meet whole or part of its expenses from the appropriate Government or the local authority; (iii) a school belonging to specified category; and (iv) an unaided school not receiving any kind of aid or grants to meet its expenses from the appropriate Government or the local authority; (o) “screening procedure” means the method of selection for admission of a child, in preference over another, other than a random method; (p) “specified category”, in relation to a school, means a school known as Kendriya Vidyalaya, Navodaya Vidyalaya, Sainik School or any other school having a distinct character which may be specified, by notification, by the appropriate Government; (q) “State Commission for Protection of Child Rights” means the State Commission for Protection of Child Rights constituted under section 3 of the Commissions for Protection of Child Rights Act, 2005 (4 of 2006). CHAPTER II RIGHT TO FREE AND COMPULSORY EDUCATION **3. Right of child to free and compulsory education.—[1][(1) Every child of the age of six to fourteen** years, including a child referred to in clause (d) or clause (e) of section 2, shall have the right to free and compulsory education in a neighbourhood school till the completion of his or her elementary education.] (2) For the purpose of sub-section (1), no child shall be liable to pay any kind of fee or charges or expenses which may prevent him or her from pursuing and completing the elementary education. 1. Subs. by Act 30 of 2012, s. 4, for sub-section (1) (w.e.f. 1-8-2012). 4 ----- 1* ***** ***** ***** ***** 2[(3) A child with disability referred to in sub-clause (A) of clause (ee) of section 2 shall, without prejudice to the provisions of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996), and a child referred to in sub-clauses (B) and (C) of clause (ee) of section 2, have the same rights to pursue free and compulsory elementary education which children with disabilities have under the provisions of Chapter V of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995: Provided that a child with “multiple disabilities” referred to in clause (h) and a child with “severe disability” referred to in clause (o) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999) may also have the right to opt for home-based education.] **4. Special provisions for children not admitted to, or who have not completed, elementary** **education.—Where a child above six years of age has not been admitted in any school or though** admitted, could not complete his or her elementary education, then, he or she shall be admitted in a class appropriate to his or her age: Provided that where a child is directly admitted in a class appropriate to his or her age, then, he or she shall, in order to be at par with others, have a right to receive special training, in such manner, and within such time-limits, as may be prescribed: Provided further that a child so admitted to elementary education shall be entitled to free education till completion of elementary education even after fourteen years. **5. Right of transfer to other school.—(1) Where in a school, there is no provision for completion of** elementary education, a child shall have a right to seek transfer to any other school, excluding the school specified in sub-clauses (iii) and (iv) of clause (n) of section 2, for completing his or her elementary education. (2) Where a child is required to move from one school to another, either within a State or outside, for any reason whatsoever, such child shall have a right to seek transfer to any other school, excluding the school specified in sub-clauses (iii) and (iv) of clause (n) of section 2, for completing his or her elementary education. (3) For seeking admission in such other school, the Head-teacher or in-charge of the school where such child was last admitted, shall immediately issue the transfer certificate: Provided that delay in producing transfer certificate shall not be a ground for either delaying or denying admission in such other school: Provided further that the Head-teacher or in-charge of the school delaying issuance of transfer certificate shall be liable for disciplinary action under the service rules applicable to him or her. CHAPTER III DUTIES OF APPROPRIATE GOVERNMENT, LOCAL AUTHORITY AND PARENTS **6. Duty of appropriate Government and local authority to establish school.—For carrying out the** provisions of this Act, the appropriate Government and the local authority shall establish, within such area or limits of neighbourhood, as may be prescribed, a school, where it is not so established, within a period of three years from the commencement of this Act. **7. Sharing of financial and other responsibilities.—(1) The Central Government and the State** Governments shall have concurrent responsibility for providing funds for carrying out the provisions of this Act. (2) The Central Government shall prepare the estimates of capital and recurring expenditure for the implementation of the provisions of the Act. 1. Proviso omitted by Act 30 of 2012, s. 4 (w.e.f. 1-8-2012). 2. Ins. by s. 4, ibid. (w.e.f. 1-8-2012). 5 ----- (3) The Central Government shall provide to the State Governments, as grants-in-aid of revenues, such percentage of expenditure referred to in sub-section (2) as it may determine, from time to time, in consultation with the State Governments. (4) The Central Government may make a request to the President to make a reference to the Finance Commission under sub-clause (d) of clause (3) of article 280 to examine the need for additional resources to be provided to any State Government so that the said State Government may provide its share of funds for carrying out the provisions of the Act. (5) Notwithstanding anything contained in sub-section (4), the State Government shall, taking into consideration the sums provided by the Central Government to a State Government under sub-section (3), and its other resources, be responsible to provide funds for implementation of the provisions of the Act. (6) The Central Government shall— (a) develop a framework of national curriculum with the help of academic authority specified under section 29; (b) develop and enforce standards for training of teachers; (c) provide technical support and resources to the State Government for promoting innovations, researches, planning and capacity building. **8. Duties of appropriate Government.—The appropriate Government shall—** (a) provide free and compulsory elementary education to every child: Provided that where a child is admitted by his or her parents or guardian, as the case may be, in a school other than a school established, owned, controlled or substantially financed by funds provided directly or indirectly by the appropriate Government or a local authority, such child or his or her parents or guardian, as the case may be, shall not be entitled to make a claim for reimbursement of expenditure incurred on elementary education of the child in such other school. _Explanation.—The term “compulsory education” means obligation of the appropriate_ Government to— (i) provide free elementary education to every child of the age of six to fourteen years; and (ii) ensure compulsory admission, attendance and completion of elementary education by every child of the age of six to fourteen years; (b) ensure availability of a neighbourhood school as specified in section 6; (c) ensure that the child belonging to weaker section and the child belonging to disadvantaged group are not discriminated against and prevented from pursuing and completing elementary education on any grounds; (d) provide infrastructure including school building, teaching staff and learning equipment; (e) provide special training facility specified in section 4; (f) ensure and monitor admission, attendance and completion of elementary education by every child; (g) ensure good quality elementary education conforming to the standards and norms specified in the Schedule; (h) ensure timely prescribing of curriculum and courses of study for elementary education; and (i) provide training facility for teachers. **STATE AMENDMENT** Rajasthan **Amendment of section 8, Central Act No. 35 of 2009.—After the existing clause (ii) of the** explanation to clause (a) of section 8 of the Right of Children to Free and Compulsory Education Act, 6 ----- 2009 (Central Act No. 35 of 2009), hereinafter in this Act referred to as the principal Act, the following new clause shall he added, namely: “(iii) ensure achievement of class appropriate learning level by every child of the age of six to fourteen years;”. [Vide Rajasthan Act 32 of 2017, s. 2]. **9. Duties of local authority.—Every local authority shall—** (a) provide free and compulsory elementary education to every child: Provided that where a child is admitted by his or her parents or guardian, as the case may be, in a school other than a school established, owned, controlled or substantially financed by funds provided directly or indirectly by the appropriate Government or a local authority, such child or his or her parents or guardian, as the case may be, shall not be entitled to make a claim for reimbursement of expenditure incurred on elementary education of the child in such other school; (b) ensure availability of a neighbourhood school as specified in section 6; (c) ensure that the child belonging to weaker section and the child belonging to disadvantaged group are not discriminated against and prevented from pursuing and completing elementary education on any grounds; (d) maintain records of children up to the age of fourteen years residing within its jurisdiction, in such manner as may be prescribed; (e) ensure and monitor admission, attendance and completion of elementary education by every child residing within its jurisdiction; (f) provide infrastructure including school building, teaching staff and learning material; (g) provide special training facility specified in section 4; (h) ensure good quality elementary education conforming to the standards and norms specified in the Schedule; (i) ensure timely prescribing of curriculum and courses of study for elementary education; (j) provide training facility for teachers; (k) ensure admission of children of migrant families; (l) monitor functioning of schools within its jurisdiction; and (m) decide the academic calendar. **10. Duty of parents and guardian.—It shall be the duty of every parent or guardian to admit or** cause to be admitted his or her child or ward, as the case may be, to an elementary education in the neighbourhood school. **11. Appropriate Government to provide for pre-school education.—With a view to prepare** children above the age of three years for elementary education and to provide early childhood care and education for all children until they complete the age of six years, the appropriate Government may make necessary arrangement for providing free pre-school education for such children. CHAPTER IV RESPONSIBILITIES OF SCHOOLS AND TEACHERS **12. Extent of school's responsibility for free and compulsory education.—(1) For the purposes of** this Act, a school,— (a) specified in sub-clause (i) of clause (n) of section 2 shall provide free and compulsory elementary education to all children admitted therein; 7 ----- (b) specified in sub-clause (ii) of clause (n) of section 2 shall provide free and compulsory elementary education to such proportion of children admitted therein as its annual recurring aid or grants so received bears to its annual recurring expenses, subject to a minimum of twenty-five per cent.; (c) specified in sub-clauses (iii) and (iv) of clause (n) of section 2 shall admit in class I, to the extent of at least twenty-five per cent. of the strength of that class, children belonging to weaker section and disadvantaged group in the neighbourhood and provide free and compulsory elementary education till its completion: Provided further that where a school specified in clause (n) of section 2 imparts pre-school education, the provisions of clauses (a) to (c) shall apply for admission to such pre-school education. (2) The school specified in sub-clause (iv) of clause (n) of section 2 providing free and compulsory elementary education as specified in clause (c) of sub-section (1) shall be reimbursed expenditure so incurred by it to the extent of per-child-expenditure incurred by the State, or the actual amount charged from the child, whichever is less, in such manner as may be prescribed: Provided that such reimbursement shall not exceed per-child-expenditure incurred by a school specified in sub-clause (i) of clause (n) of section 2: Provided further that where such school is already under obligation to provide free education to a specified number of children on account of it having received any land, building, equipment or other facilities, either free of cost or at a concessional rate, such school shall not be entitled for reimbursement to the extent of such obligation. (3) Every school shall provide such information as may be required by the appropriate Government or the local authority, as the case may be. **13. No capitation fee and screening procedure for admission.—(1) No school or person shall,** while admitting a child, collect any capitation fee and subject the child or his or her parents or guardian to any screening procedure. (2) Any school or person, if in contravention of the provisions of sub-section (1),— (a) receives capitation fee, shall be punishable with fine which may extend to ten times the capitation fee charged; (b) subjects a child to screening procedure, shall be punishable with fine which may extend to twenty-five thousand rupees for the first contravention and fifty thousand rupees for each subsequent contraventions. **14. Proof of age for admission.—(1) For the purposes of admission to elementary education, the age** of a child shall be determined on the basis of the birth certificate issued in accordance with the provisions of the Births, Deaths and Marriages Registration Act, 1886 (6 of 1886) or on the basis of such other document, as may be prescribed. (2) No child shall be denied admission in a school for lack of age proof. **15. No denial of admission.—A child shall be admitted in a school at the commencement of the** academic year or within such extended period as may be prescribed: Provided that no child shall be denied admission if such admission is sought subsequent to the extended period: Provided further that any child admitted after the extended period shall complete his studies in such manner as may be prescribed by the appropriate Government. 1[16. Examination and holding back in certain cases.—(1) There shall be a regular examination in the fifth class and in the eighth class at the end of every academic year. 1. Subs. by Act 1 of 2019, s. 2 (w.e.f. 1-3-2019). 8 ----- (2) If a child fails in the examination referred to in sub-section (1), he shall be given additional instruction and granted opportunity for re-examination within a period of two months from the date of declaration of the result. (3) The appropriate Government may allow schools to hold back a child in the fifth class or in the eighth class or in both classes, in such manner and subject to such conditions as may be prescribed, if he fails in the re-examination referred to in sub-section (2): Provided that the appropriate Government may decide not to hold back a child in any class till the completion of elementary education. (4) No child shall be expelled from a school till the completion of elementary education.] **STATE AMENDMENT** Rajasthan **Amendment of section 16, Central Act No. 35 of 2009.-In section 16 of the principal Act, for the** existing punctuation mark”. “appearing at the end, the punctuation mark”: “shall be substituted and thereafter the following proviso shall be added, namely: “Provided that if a child has not achieved class appropriate learning level in a class, he may be held back in that class.” [Vide Rajasthan Act 32 of 2017, s. 3] **17. Prohibition of physical punishment and mental harassment to child.—(1) No child shall be** subjected to physical punishment or mental harassment. (2) Whoever contravenes the provisions of sub-section (1) shall be liable to disciplinary action under the service rules applicable to such person. **18. No School to be established without obtaining certificate of recognition.—(1) No school, other** than a school established, owned or controlled by the appropriate Government or the local authority, shall, after the commencement of this Act, be established or function, without obtaining a certificate of recognition from such authority, by making an application in such form and manner, as may be prescribed. (2) The authority prescribed under sub-section (1) shall issue the certificate of recognition in such form, within such period, in such manner, and subject to such conditions, as may be prescribed: Provided that no such recognition shall be granted to a school unless it fulfils norms and standards specified under section 19. (3) On the contravention of the conditions of recognition, the prescribed authority shall, by an order in writing, withdraw recognition: Provided that such order shall contain a direction as to which of the neighbourhood school, the children studying in the derecognised school, shall be admitted: Provided further that no recognition shall be so withdrawn without giving an opportunity of being heard to such school, in such manner, as may be prescribed. (4) With effect from the date of withdrawal of the recognition under sub-section (3), no such school shall continue to function. (5) Any person who establishes or runs a school without obtaining certificate of recognition, or continues to run a school after withdrawal of recognition, shall be liable to fine which may extend to one lakh rupees and in case of continuing contraventions, to a fine of ten thousand rupees for each day during which such contravention continues. **19. Norms and standards for school.—(1) No school shall be established, or recognised, under** section 18, unless it fulfils the norms and standards specified in the Schedule. 9 ----- (2) Where a school established before the commencement of this Act does not fulfil the norms and standards specified in the Schedule, it shall take steps to fulfil such norms and standards at its own expenses, within a period of three years from the date of such commencement. (3) Where a school fails to fulfil the norms and standards within the period specified under sub-section (2), the authority prescribed under sub-section (1) of section 18 shall withdraw recognition granted to such school in the manner specified under sub-section (3) thereof. (4) With effect from the date of withdrawal of recognition under sub-section (3), no school shall continue to function. (5) Any person who continues to run a school after the recognition is withdrawn, shall be liable to fine which may extend to one lakh rupees and in case of continuing contraventions, to a fine of ten thousand rupees for each day during which such contravention continues. **20. Power to amend Schedule.—The Central Government may, by notification, amend the Schedule** by adding to, or omitting therefrom, any norms and standards. **21. School Management Committee.—(1) A school, other than a school specified in sub-clause (iv)** of clause (n) of section 2, shall constitute a School Management Committee consisting of the elected representatives of the local authority, parents or guardians of children admitted in such school and teachers: Provided that atleast three-fourth of members of such Committee shall be parents or guardians: Provided further that proportionate representation shall be given to the parents or guardians of children belonging to disadvantaged group and weaker section: Provided also that fifty per cent. of Members of such Committee shall be women. (2) The School Management Committee shall perform the following functions, namely:— (a) monitor the working of the school; (b) prepare and recommend school development plan; (c) monitor the utilisation of the grants received from the appropriate Government or local authority or any other source; and (d) perform such other functions as may be prescribed. 1[Provided that the School Management Committee constituted under sub-section (1) in respect of,— (a) a school established and administered by minority whether based on religion or language; and (b) all other aided schools as defined in sub-section (ii) of clause (n) of section 2, shall perform advisory function only.] **STATE AMENDMENT** Rajasthan **Amendment of section 21, Central Act No. 35 of 2009.—In sub-section (2) of section 21 of the** principal Act,— (i) in clause (c), the existing word “and”, appearing at the end, shall be deleted; and (ii) after the existing clause (c), so amended, and before the existing clause (d), the following new clause shall be inserted, namely:— “(ca) ensure that teachers perform their duties specified by or under section 24; and”. [Vide Rajasthan Act 32 of 2017, s. 4]. **22. School Development Plan.—(1) Every** [2][School Management Committee, except the School Management Committee in respect of a school established and administered by minority, whether based 1. Ins. by Act 30 of 2012, s. 5 (w.e.f. 1-8-2012). 2. Subs. by s. 6, ibid., for “School Management Committee, constituted” (w.e.f. 1-8-2012). 10 ----- on religion or language and an aided school as defined in sub-clause (ii) of clause (n) of section 2, constituted] under sub-section (1) of section 21, shall prepare a School Development Plan, in such manner as may be prescribed. (2) The School Development Plan so prepared under sub-section (1) shall be the basis for the plans and grants to be made by the appropriate Government or local authority, as the case may be. **23. Qualifications for appointment and terms and conditions of service of teachers.—(1) Any** person possessing such minimum qualifications, as laid down by an academic authority, authorised by the Central Government, by notification, shall be eligible for appointment as a teacher. (2) Where a State does not have adequate institutions offering courses or training in teacher education, or teachers possessing minimum qualifications as laid down under sub-section (1) are not available in sufficient numbers, the Central Government may, if it deems necessary, by notification, relax the minimum qualifications required for appointment as a teacher, for such period, not exceeding five years, as may be specified in that notification: Provided that a teacher who, at the commencement of this Act, does not possess minimum qualifications as laid down under sub-section (1), shall acquire such minimum qualifications within a period of five years. 1[Provided further that every teacher appointed or in position as on the 31st March, 2015, who does not possess minimum qualifications as laid down under sub-section (1), shall acquire such minimum qualifications within a period of four years from the date of commencement of the Right of Children to Free and Compulsory Education (Amendment) Act, 2017 (24 of 2017).] (3) The salary and allowances payable to, and the terms and conditions of service of, teachers shall be such as may be prescribed. **24. Duties of teachers and redressal of grievances.—(1) A teacher appointed under sub-section (1)** of section 23 shall perform the following duties, namely:— (a) maintain regularity and punctuality in attending school; (b) conduct and complete the curriculum in accordance with the provisions of sub-section (2) of section 29; (c) complete entire curriculum within the specified time; (d) assess the learning ability of each child and accordingly supplement additional instructions, if any, as required; (e) hold regular meetings with parents and guardians and apprise them about the regularity in attendance, ability to learn, progress made in learning and any other relevant information about the child; and (f) perform such other duties as may be prescribed. (2) A teacher committing default in performance of duties specified in sub-section (1), shall be liable to disciplinary action under the service rules applicable to him or her: Provided that before taking such disciplinary action, reasonable opportunity of being heard shall be afforded to such teacher. (3) The grievances, if any, of the teacher shall be redressed in such manner as may be prescribed. 1. Ins. by Act 24 of 2017, s. 2 (w.e.f. 1-4-2015). 11 ----- **STATE AMENDMENT** Rajasthan **Amendment of section 24, Central Act No. 35 of 2009.-In clause (d) of sub-section (1) of** section 24 of the principal Act, for the existing expression “as required”, the expression “required for achieving class appropriate learning level” shall be substituted. [Vide Rajasthan Act 32 of 2017, s. 5]. **25. Pupil-Teacher Ratio.—(1) [1][Within three years] from the date of commencement of this Act, the** appropriate Government and the local authority shall ensure that the Pupil-Teacher Ratio, as specified in the Schedule, is maintained in each school. (2) For the purpose of maintaining the Pupil-Teacher Ratio under sub-section (1), no teacher posted in a school shall be made to serve in any other school or office or deployed for any non-educational purpose, other than those specified in section 27. **26. Filling up vacancies of teachers.—The appointing authority, in relation to a school established,** owned, controlled or substantially financed by funds provided directly or indirectly by the appropriate Government or by a local authority, shall ensure that vacancy of teacher in a school under its control shall not exceed ten per cent. of the total sanctioned strength. **27. Prohibition of deployment of teachers for non-educational purposes.—No teacher shall be** deployed for any non-educational purposes other than the decennial population census, disaster relief duties or duties relating to elections to the local authority or the State Legislatures or Parliament, as the case may be. **28. Prohibition of private tuition by teacher.—No teacher shall engage himself or herself in private** tuition or private teaching activity. CHAPTER V CURRICULUM AND COMPLETION OF ELEMENTARY EDUCATION **29. Curriculum and evaluation procedure.—(1) The curriculum and the evaluation procedure for** elementary education shall be laid down by an academic authority to be specified by the appropriate Government, by notification. (2) The academic authority, while laying down the curriculum and the evaluation procedure under sub-section (1), shall take into consideration the following, namely:— (a) conformity with the values enshrined in the Constitution; (b) all round development of the child; (c) building up child's knowledge, potentiality and talent; (d) development of physical and mental abilities to the fullest extent; (e) learning through activities, discovery and exploration in a child friendly and child-centered manner; (f) medium of instructions shall, as far as practicable, be in child's mother tongue; (g) making the child free of fear, trauma and anxiety and helping the child to express views freely; (h) comprehensive and continuous evaluation of child's understanding of knowledge and his or her ability to apply the same. 1. Subs. by Act 30 of 2012, s. 7, for “Within six months” (w.e.f. 1-8-2012). 12 ----- **STATE AMENDMENT** Rajasthan **Amendment of section 29, Central Act No. 35 of 2009.—In sub-section (1) of section 29 of the** principal Act, after the existing expression “curriculum” and before the existing expression “and the evaluation procedure”, the expression”, class appropriate learning level” shall be inserted. [Vide Rajasthan Act 32 of 2017, s. 6]. **30. Examination and completion certificate.—(1) No child shall be required to pass any Board** examination till completion of elementary education. (2) Every child completing his elementary education shall be awarded a certificate, in such form and in such manner, as may be prescribed. CHAPTER VI PROTECTION OF RIGHT OF CHILDREN **31. Monitoring of child's right to education.—(1) The National Commission for Protection of Child** Rights constituted under section 3, or, as the case may be, the State Commission for Protection of Child Rights constituted under section 17, of the Commissions for Protection of Child Rights Act, 2005 (4 of 2006), shall, in addition to the functions assigned to them under that Act, also perform the following functions, namely:— (a) examine and review the safeguards for rights provided by or under this Act and recommend measures for their effective implementation; (b) inquire into complaints relating to child's right to free and compulsory education; and (c) take necessary steps as provided under sections 15 and 24 of the said Commissions for Protection of Child Rights Act. (2) The said Commissions shall, while inquiring into any matters relating to child's right to free and compulsory education under clause (c) of sub-section (1), have the same powers as assigned to them respectively under sections 14 and 24 of the said Commissions for Protection of Child Rights Act. (3) Where the State Commission for Protection of Child Rights has not been constituted in a State, the appropriate Government may, for the purpose of performing the functions specified in clauses (a) to (c) of sub-section (1), constitute such authority, in such manner and subject to such terms and conditions, as may be prescribed. **32. Redressal of grievances.—(1) Notwithstanding anything contained in section 31, any person** having any grievance relating to the right of a child under this Act may make a written complaint to the local authority having jurisdiction. (2) After receiving the complaint under sub-section (1), the local authority shall decide the matter within a period of three months after affording a reasonable opportunity of being heard to the parties concerned. (3) Any person aggrieved by the decision of the local authority may prefer an appeal to the State Commission for Protection of Child Rights or the authority prescribed under sub-section (3) of section 31, as the case may be. (4) The appeal preferred under sub-section (3) shall be decided by State Commission for Protection of Child Rights or the authority prescribed under sub-section (3) of section 31, as the case may be, as provided under clause (c) of sub-section (1) of section 31. **33. Constitution of National Advisory Council.—(1) The Central Government shall constitute, by** notification, a National Advisory Council, consisting of such number of Members, not exceeding fifteen, as the Central Government may deem necessary, to be appointed from amongst persons having knowledge and practical experience in the field of elementary education and child development. 13 ----- (2) The functions of the National Advisory Council shall be to advise the Central Government on implementation of the provisions of the Act in an effective manner. (3) The allowances and other terms and conditions of the appointment of Members of the National Advisory Council shall be such as may be prescribed. **34. Constitution of State Advisory Council.—(1) The State Government shall constitute, by** notification, a State Advisory Council consisting of such number of Members, not exceeding fifteen, as the State Government may deem necessary, to be appointed from amongst persons having knowledge and practical experience in the field of elementary education and child development. (2) The functions of the State Advisory council shall be to advise the State Government on implementation of the provisions of the Act in an effective manner. (3) The allowances and other terms and conditions of appointment of Members of the State Advisory Council shall be such as may be prescribed. CHAPTER VII MISCELLANEOUS **35. Power to issue directions.—(1) The Central Government may issue such guidelines to the** appropriate Government or, as the case may be, the local authority, as it deems fit for the purposes of implementation of the provisions of this Act. (2) The appropriate Government may issue guidelines and give such directions, as it deems fit, to the local authority or the School Management Committee regarding implementation of the provisions of this Act. (3) The local authority may issue guidelines and give such directions, as it deems fit, to the School Management Committee regarding implementation of the provisions of this Act. **36. Previous sanction for prosecution.—No prosecution for offences punishable under** sub-section (2) of section 13, sub-section (5) of section 18 and sub-section (5) of section 19 shall be instituted except with the previous sanction of an officer authorised in this behalf, by the appropriate Government, by notification. **37. Protection of action taken in good faith.—No suit or other legal proceeding shall lie against the** Central Government, the State Government, the National Commission for Protection of Child Rights, the State Commission for Protection of Child Rights, the local authority, the School Management Committee or any person, in respect of anything which is in good faith done or intended to be done, in pursuance of this Act, or any rules or order made thereunder. **38. Power of appropriate Government to make rules.—(1) The appropriate Government may, by** notification, make rules, for carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing powers, such rules may provide for all or any of the following matters, namely:— (a) the manner of giving special training and the time-limit thereof, under first proviso to section 4; (b) the area or limits for establishment of a neighbourhood school, under section 6; (c) the manner of maintenance of records of children up to the age of fourteen years, under clause (d) of section 9; (d) the manner and extent of reimbursement of expenditure, under sub-section (2) of section 12; (e) any other document for determining the age of child under sub-section (1) of section 14; (f) the extended period for admission and the manner of completing study if admitted after the extended period, under section 15; 1[(fa) the manner and the conditions subject to which a child may be held back under sub-section (3) of section 16;] 1. Ins. by Act 1 of 2019, s. 2 (w.e.f. 1-3-2019). 14 ----- (g) the authority, the form and manner of making application for certificate of recognition, under sub-section (1) of section 18; (h) the form, the period, the manner and the conditions for issuing certificate of recognition, under sub-section (2) of section 18; (i) the manner of giving opportunity of hearing under second proviso to sub-section (3) of section 18; (j) the Other functions to be performed by School Management Committee under clause (d) of sub-section (2) of section 21; (k) the manner of preparing School Development Plan under sub-section (1) of section 22; (l) the salary and allowances payable to, and the terms and conditions of service of, teacher, under sub-section (3) of section 23; (m) the duties to be performed by the teacher under clause (f) of sub-section (1) of section 24; (n) the manner of redressing grievances of teachers under sub-section (3) of section 24; (o) the form and manner of awarding certificate for completion of elementary education under sub-section (2) of section 30; (p) the authority, the manner of its constitution and the terms and conditions therefor, under sub-section (3) of section 31; (q) the allowances and other terms and conditions of appointment of Members of the National Advisory Council under sub-section (3) of section 33; (r) the allowances and other terms and conditions of appointment of Members of the State Advisory Council under sub-section (3) of section 34. (3) Every rule made under this Act and every notification issued under sections 20 and 23 by the Central Government shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or notification or both Houses agree that the rule or notification should not be made, the rule or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification. (4) Every rule or notification made by the State Government under this Act shall be laid, as soon as may be after it is made; before the State Legislatures. **1[39. Power of Central Government to remove difficulties.—(1) If any difficulty arises in giving** effect to the provisions of this Act, the Central Government may, by order, published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act, as may appear to it to be necessary for removing the difficulty: Provided that no order shall be made under this section after the expiry of three years from the commencement of the Right of Children to Free and Compulsory Education (Amendment) Act, 2012 (30 of 2012). (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.] 1. Ins. by Act 30 of 2012, s. 8 (w.e.f. 1-8-2012). 15 ----- THE SCHEDULE (See sections 19 and 25) NORMS AND STANDARDS FOR A SCHOOL Sl. No. Item Norms and Standards 1. Numbers of teachers: (a) For first class to fifth class Admitted children Number of teachers Up to Sixty Two Between sixty-one to ninety Between Ninety-one to one hundred and twenty Between One hundred and twenty-one to two hundred Above One hundred and fifty children Above Two hundred children Three Four Five Five plus one Headteacher Pupil-Teacher Ratio (excluding Head-teacher) shall not exceed forty. (b) For sixth class to eighth class (1) At least one teacher per class so that there shall be at least one teacher each for— (i) Science and Mathematics; (ii) Social Studies; (iii) Languages. (2) At least one teacher for every thirty-five children. (3) Where admission of children is above one hundred— (i) a full time head-teacher; (ii) part time instructors for— (A) Art Education; (B) Health and Physical Education; (C) Work Education. 2. Building All-weather building consisting of— (i) at least one class-room for every teacher and an office-cum-store-cum-Head teacher’s room; (ii) barrier-free access; (iii) separate toilets for boys and girls; (iv) safe and adequate drinking water facility to all children; 16 ----- Sl. No. Item Norms and Standards (v) a kitchen where mid-day meal is cooked in the school; (vi) Playground; (vii) arrangements for securing the school building by boundary wall or fencing. 3. Minimum number of working days/instructional hours in an academic year 4. Minimum number of working hours per week for the teacher (i) two hundred working days for first class to fifth class; (ii) two hundred and twenty working days for sixth class to eighth class; (iii) eight hundred instructional hours per academic year for first class to fifth class; (iv) one thousand instructional hours per academic year for sixth class to eighth class. forty-five teaching including preparation hours. 5. Teaching learning equipment Shall be provided to each class as required. 6. Library There shall be a library in each school providing newspaper, magazines and books on all subjects, including story-books. 7. Play material, games and sports equipment Shall be provided to each class as required. 17 -----

22-Dec-2009

40

The National Capital Territory of Delhi Laws (Special Provisions) Second Act, 2009

https://www.indiacode.nic.in/bitstream/123456789/2097/5/a2009-40.pdf

central

# THE NATIONAL CAPITAL TERRITORY OF DELHI LAWS (SPECIAL PROVISIONS) SECOND ACT, 2009 __________ ARRANGEMENT OF SECTIONS _________ SECTIONS 1. Short title, extent, commencement and duration. 2. Definitions. 3. Enforcement to be kept in abeyance. 4. Provisions of this Act not to apply in certain cases. 5. Power of Central Government to give directions. 1 ----- # THE NATIONAL CAPITAL TERRITORY OF DELHI LAWS (SPECIAL PROVISIONS) SECOND ACT, 2009 ACT NO. 40 OF 2009 [22nd December, 2009.] # An Act to make special provisions for the National Capital Territory of Delhi for a further period up to the 31st day of December, 2010 and for matters connected therewith or incidental thereto. WHEREAS there had been phenomenal increase in the population of the National Capital Territory of Delhi owing to migration and other factors resulting in tremendous pressure on land and infrastructure leading to encroachment or unauthorised developments which are not in consonance with the concept of planned development as provided in the Master Plan for Delhi, 2001 and the relevant Acts and building bye-laws made thereunder; AND WHEREAS the Master Plan of Delhi, 2001 was extensively modified and notified by the Central Government on the 7th day of February, 2007 with the perspective for the year 2021 keeping in view the emerging new dimensions in urban development vis-a-vis the social, financial and other ground realities; AND WHEREAS the Master Plan of Delhi with the perspective for the year 2021 specifically provides for strategies for housing for urban poor as well as to deal with the in formal sector; AND WHEREAS a strategy and a scheme has been prepared by the local authorities in the National Capital Territory of Delhi for regulation of urban street vendors in accordance with the National Policy for Urban Street Vendors and the Master Plan for Delhi, 2021, and is being implemented; AND WHEREAS based on the policy finalised by the Central Government regarding regularisation of unauthorised colonies, village abadi area and its extension, the guidelines and regulations for this purpose have been issued; AND WHEREAS in pursuance of the guidelines and regulations for regularisation of unauthorised colonies, necessary steps are being taken which, inter alia, involve scrutiny of layout plans, assessment of built up percentage existed as on the 31st day of March, 2002, identification of mixed use of streets, approval of layout plans, fixation of boundaries, change of land use and identification of colonies not eligible for regularisation; AND WHEREAS more time is required for orderly implementation of scheme regarding hawkers and urban street vendors and for regularisation of unauthorised colonies, village abadi area and its extension; AND WHEREAS the revised policy and orderly arrangements for relocation and rehabilitation of slum dwellers and Jhuggi-Jhompri clusters in the National Capital Territory of Delhi has been considered and a Bill, namely, the Delhi Urban Shelter Improvement Board Bill, 2009 has been prepared by the Government of National Capital Territory of Delhi to provide for implementation of schemes for improvement of _Jhuggi-Jhompri_ clusters and its redevelopment with a view to bring improvement in environment and living conditions, and preparing housing scheme for resettlement of persons; AND WHEREAS the draft policy regarding farm houses has been formulated by the Delhi Development Authority and has been forwarded to major stakeholders for their views and comments; AND WHEREAS in pursuance of the Master Plan for Delhi, 2021, the policy or plan regarding schools, dispensaries, religious institutions, cultural institutions, storages, warehouses and godowns used for agricultural inputs or produce (including dairy and poultry) in rural areas built on agricultural land is under consideration of the Central Government; 2 ----- AND WHEREAS the National Capital Territory of Delhi Laws (Special Provisions) Act, 2007 (43 of 2007) was enacted on the 5th day of December, 2007 to make special provisions for the areas of National Capital Territory of Delhi for a period up to the 31st day of December, 2008 which ceased to operate after the 31st December, 2008; AND WHEREAS the National Capital Territory of Delhi Laws (Special Provisions) Act, 2009 (24 of 2009) was enacted in continuation of the aforesaid Act referred to in the preceding paragraph for a period up to the 31st day of December, 2009 to make special provisions for the areas of the National Capital Territory of Delhi and that Act ceased to operate after the 31st day of December, 2009; AND WHEREAS it is expedient to have a law in terms of the Master Plan for Delhi, 2021, in continuation of the said Act for a period up to the 31st day of December, 2010 to provide for temporary relief and to minimise avoidable hardships and irreparable loss to the people of the National Capital Territory of Delhi against any action by the concerned agency in respect of persons covered by the policies referred to above. BE it enacted by Parliament in the Sixtieth Year of the Republic of India as follows:— **1. Short title, extent, commencement and duration.—(1) This Act may be called the National** Capital Territory of Delhi Laws (Special Provisions) Second Act, 2009. (2) It extends to the National Capital Territory of Delhi. (3) It shall come into force on the 1st day of January, 2010. (4) It shall cease to have effect on the 31st day of December, 2010, except as respects things done or omitted to be done before such cesser, and upon such cesser section 6 of the General Clauses Act, 1897 (10 of 1897), shall apply as if this Act had then been repealed by a Central Act. **2. Definitions.—(1) In this Act, unless the context otherwise requires,—** (a) “building bye-laws” means bye-laws made under section 481 of the Delhi Municipal Corporation Act, 1957 (66 of 1957) or the bye-laws made under section 188, sub-section (3) of section 189 and sub-section (1) of section 190 of the Punjab Municipal Act, 1911 (Punjab Act 3 of 1911), as in force in New Delhi or the regulations made under sub-section (1) of section 57 of the Delhi Development Act, 1957 (61 of 1957) relating to buildings; (b) “Delhi” means the entire area of the National Capital Territory of Delhi except the Delhi Cantonment as defined in clause (11) of section 2 of the Delhi Municipal Corporation Act, 1957 (66 of 1957); (c) “encroachment” means unauthorised occupation of Government land or public land by way of putting temporary, semi-permanent or permanent structure for residential use or commercial use or any other use; (d) “local authority” means the Delhi Municipal Corporation established under the Delhi Municipal Corporation Act, 1957 (66 of 1957), or the New Delhi Municipal Council established under the New Delhi Municipal Council Act, 1994 (44 of 1994) or the Delhi Development Authority established under the Delhi Development Act, 1957 (61 of 1957), legally entitled to exercise control in respect of the areas under their respective jurisdiction; (e) “Master Plan” means the Master Plan for Delhi with the perspective for the year 2021, notified _vide notification number S.O.141(E), dated the 7th day of February, 2007, under the Delhi_ Development Act, 1957 (61 of 1957); (f) “notification” means a notification published in the Official Gazette; (g) “punitive action” means action taken by a local authority under the relevant law against unauthorised development and shall include demolition, sealing of premises and displacement of persons or their business establishment from their existing location, whether in pursuance of court orders or otherwise; 3 ----- (h) “relevant law” means in case of— (i) the Delhi Development Authority, the Delhi Development Act, 1957 (61 of 1957); (ii) the Municipal Corporation of Delhi, the Delhi Municipal Corporation Act, 1957 (66 of 1957); and (iii) the New Delhi Municipal Council, the New Delhi Municipal Council Act, 1994 (44 of 1994); (i) “unauthorised development” means use of land or use of building or construction of building or development of colonies carried out in contravention of the sanctioned plans or without obtaining the sanction of plans, or in contravention of the land use as permitted under the Master Plan or Zonal Plan or layout plan, as the case may be, and includes any encroachment. (2) Words and expressions used but not defined herein shall have the meanings respectively assigned to them in the Delhi Development Act, 1957 (61 of 1957) the Delhi Municipal Corporation Act, 1957 (66 of 1957) and the New Delhi Municipal Council Act, 1994 (44 of 1994). **3. Enforcement to be kept in abeyance.—(1) Notwithstanding anything contained in any relevant** law or any rules, regulations or bye-laws made thereunder, the Central Government shall before the expiry of this Act, take all possible measures to finalise norms, policy guidelines, feasible strategies and make orderly arrangements to deal with the problem of encroachment or unauthorised development in the form of encroachment by slum dwellers and Jhuggi-Jhompri clusters, hawkers and urban street vendors, unauthorised colonies, village _abadi_ area (including urban villages) and its extension, existing farm houses involving construction beyond permissible building limits and schools, dispensaries, religious institutions, cultural institutions, storages, warehouses and go downs used for agricultural inputs or produce (including dairy and poultry) in rural areas built on agricultural land, as mentioned below: (a) policy for relocation and rehabilitation of slum dwellers and _Jhuggi-Jhompri_ clusters in accordance with the provisions of the Master Plan of Delhi, 2021 to ensure development of Delhi in a sustainable, planned and humane manner; (b) scheme and orderly arrangements for regulation of urban street vendors in consonance with the national policy for urban street vendors and hawkers as provided in the Master Plan of Delhi, 2021; (c) orderly arrangements pursuant to guidelines and regulations for regularisation of unauthorised colonies, village abadi area (including urban villages) and its extension, as existed on the 31st day of March, 2002, and where construction took place even beyond that date and up to the 8th day of February, 2007; (d) policy regarding existing farm houses involving construction beyond permissible building limits; and (e) policy or plan regarding schools, dispensaries, religious institutions, cultural institutions, storages, warehouses and go downs used for agricultural inputs or produce (including dairy and poultry) in rural areas built on agricultural land. (2) Subject to the provisions contained in sub-section (1) and notwithstanding any judgment, decree or order of any court, status quo— (i) as on the 1st day of January, 2006 in respect of encroachment or unauthorised development; and (ii) in respect of unauthorised colonies, village _abadi_ area (including urban villages) and its extension, which existed on the 31st day of March, 2002 and where construction took place even beyond that date and up to the 8th day of February, 2007, mentioned in sub-section (1), shall be maintained. 4 ----- (3) All notices issued by any local authority for initiating action against encroachment or unauthorised development referred to in sub-section (1), shall be deemed to have been suspended and no punitive action shall be taken till the 31st day of December, 2010. (4) Notwithstanding any other provision contained in this Act, the Central Government may, at any time before the 31st day of December, 2010, withdraw the exemption by notification in respect of encroachment or unauthorised development mentioned in sub-section (2) or sub-section (3), as the case may be. **4. Provisions of this Act not to apply in certain cases.—During the period of operation of this Act,** no relief shall be available under the provisions of section 3 in respect of the following encroachment or unauthorised development, namely:— (a) encroachment on public land except in those cases which are covered under clauses (a), (b) and (c) of sub-section (1) of section 3; (b) removal of slums and _Jhuggi-Jhompri_ dwellers, hawkers and urban street vendors, unauthorised colonies or part thereof, village abadi area (including urban villages) and its extension in accordance with the relevant policies approved by the Central Government for clearance of land required for specific public projects. **5. Power of Central Government to give directions.—The Central Government may, from time to** time, issue such directions to the local authorities as it may deem fit, for giving effect to the provisions of this Act and it shall be the duty of the local authorities, to comply with such directions. 5 -----

13-Jan-2010

01

The Legal Metrology Act, 2009

https://www.indiacode.nic.in/bitstream/123456789/2102/4/A2010-1.pdf

central

# THE LEGAL METROLOGY ACT, 2009 ___________ # ARRANGEMENT OF SECTIONS ___________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. 3. Provisions of this Act to override provisions of any other law. CHAPTER II STANDARD WEIGHTS AND MEASURES 4. Units of weights and measures to be based on metric system. 5. Base unit of weights and measures. 6. Base unit of numeration. 7. Standard units of weights and measures. 8. Standard weight, measures or numeral. 9. Reference, secondary and working standard. 10. Use of weight or measure for particular purposes. 11. Prohibition of quotation, etc., otherwise than in terms of standard units of weight, measure or numeration. 12. Any custom, usage, etc., contrary to standard weight, measure or numeration to be void. CHAPTER III APPOINTMENT AND POWERS OF DIRECTOR, CONTROLLER AND LEGAL METROLOGY OFFICERS 13. Appointment of Director, legal metrology officers and other employees. 14. Appointment of Controller, legal metrology officers and other employees. 15. Power of inspection, seizure, etc. 16. Forfeiture. 17. Manufacturers, etc., to maintain records and registers. 18. Declarations on prepackaged commodities. 19. Registration for importer of weight or measure. 20. Non-standard weights and measures not to be imported. 21. Training in Legal Metrology. 22. Approval of model. 23. Prohibition on manufacture, repair or sale of weight or measure without licence. CHAPTER IV VERIFICATION AND STAMPING OF WEIGHT OR MEASURE 24. Verification and stamping of weight or measure. 1 ----- CHAPTER V OFFENCES AND PENALTIES SECTIONS 25. Penalty for use of non-standard weight or measure. 26. Penalty for alteration of weight and measure. 27. Penalty for manufacture or sale of non-standard weight or measure. 28. Penalty for making any transaction, deal or contract in contravention of the prescribed standards. 29. Penalty for quoting or publishing, etc., of non-standard units. 30. Penalty for transactions in contravention of standard weight or measure. 31. Penalty for non-production of documents, etc. 32. Penalty for failure to get model approved. 33. Penalty for use of unverified weight or measure. 34. Penalty for sale or delivery of commodities. etc., by non-standard weight or measure. 35. Penalty for rendering services by non-standard weight, measure or number. 36. Penalty for selling, etc., of non-standard packages. 37. Penalty for contravention by Government approved Test Centre. 38. Penalty for non-registration by importer of weight or measure. 39. Penalty for import of non-standard weight or measure. 40. Penalty for obstructing Director, Controller or legal metrology officer. 41. Penalty for giving false information or false return. 42. Vexatious search. 43. Penalty for verification in contravention of Act and rules. 44. Penalty for counterfeiting of seals, etc. 45. Penalty for manufacture of weight and measure without licence. 46. Penalty for repair, sale, etc., of weight and measure without licence. 47. Penalty for tampering with licence. 48. Compounding of offences. 49. Offences by companies and power of court to publish name, place of business, etc., for companies convicted. 50. Appeals. 51. Provisions of Indian Penal Code and Code of Criminal Procedure not to apply. 52. Power of the Central Government to make rules. 53. Power of State Government to make rules. 54. Delegation of Powers. 55. Act not to apply in certain cases. 56. Existing Director, Controller and legal metrology officer not to be affected by the new qualification to be prescribed. 57. Repeal of the Standards of Weights and Measures Act, 1976 and Standards of Weights and Measures (Enforcement) Act, 1985. 2 ----- # THE LEGAL METROLOGY ACT, 2009 ACT NO. 1 OF 2010 [13th January, 2010.] # An Act to establish and enforce standards of weights and measures, regulate trade and commerce in weights, measures and other goods which are sold or distributed by weight, measure or number and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Sixtieth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Legal Metrology Act,** 2009. (2) It extends to the whole of India. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “Controller” means the Controller of Legal Metrology appointed under section 14; (b) “dealer”, in relation to any weight or measure, means a person who, carries on, directly or otherwise, the business of buying, selling, supplying or distributing any such weight or measure, whether for cash or for deferred payment or for commission, remuneration or other valuable consideration, and includes a commission agent, an importer, a manufacturer, who sells, supplies, distributes or otherwise delivers any weight or measure manufactured by him to any person other than a dealer; (c) “Director” means the Director of Legal Metrology appointed under section 13; (d) “export” with its grammatical variations and cognate expressions, means taking out of India to a place outside India; (e) “import” with its grammatical variations and cognate expressions, means bringing into India from a place outside India; (f) “label” means any written, marked, stamped, printed or graphic matter affixed to, or appearing upon any pre-packaged commodity; (g) “Legal Metrology” means that part of metrology which treats units of weighment and measurement, methods of weighment and measurement and weighing and measuring instruments, in relation to the mandatory technical and legal requirements which have the object of ensuring public guarantee from the point of view of security and accuracy of the weighments and measurements; (h) “legal metrology officer” means Additional Director, Additional Controller, Joint Director, Joint Controller, Deputy Director, Deputy Controller, Assistant Director, Assistant Controller and Inspector appointed under sections 13 and 14; (i) “manufacturer” in relation to any weight or measure, means a person who— (i) manufactures weight or measure, (ii) manufactures one or more parts, and acquires other parts, of such weight or measure and, after assembling those parts, claims the end product to be a weight or measure manufactured by himself or itself, as the case may be, 1. 1st April, 2011, vide notification No. S.O. 210(E), dated 31st January, 2011, see Gazette of India, Extraordinary, Part II, Sec. 3(ii). 3 ----- (iii) does not manufacture any part of such weight or measure but assembles parts thereof manufactured by others and claims the end product to be a weight or measure manufactured by himself or itself, as the case may be, (iv) puts, or causes to be put, his own mark on any complete weight or measure made or manufactured by any other person and claims such product to be a weight or measure made or manufactured by himself or itself, as the case may be; (j) “notification” means a notification published in the Official Gazette; (k) “protection” means the utilisation of reading obtained from any weight or measure, for the purpose of determining any step which is required to be taken to safeguard the well-being of any human being or animal, or to protect any commodity, vegetation or thing, whether individually or collectively; (l) “pre-packaged commodity” means a commodity which without the purchaser being present is placed in a package of whatever nature, whether sealed or not, so that the product contained therein has a pre-determined quantity; (m) “person” includes,— (i) a Hindu undivided family, (ii) every department or office, (iii) every organisation established or constituted by Government, (iv) every local authority within the territory of India, (v) a company, firm and association of individuals, (vi) trust constituted under an Act, (vii) every co-operative society, constituted under an Act, (viii) every other society registered under the Societies Registration Act, 1860 (21 of 1860); (n) “premises” includes— (i) a place where any business, industry, production or transaction is carried on by a person, whether by himself or through an agent, by whatever name called, including the person who carries on the business in such premises, (ii) a warehouse, godown or other place where any weight or measure or other goods are stored or exhibited, (iii) a place where any books of account or other documents pertaining to any trade or transaction are kept, (iv) a dwelling house, if any part thereof is used for the purpose of carrying on any business, industry, production or trade, (v) a vehicle or vessel or any other mobile device, with the help of which any transaction or business is carried on; (o) “prescribed” means prescribed by rules made under this Act; (p) “repairer'' means a person who repairs a weight or measure and includes a person who adjusts, cleans, lubricates or paints any weight or measure or renders any other service to such weight or measure to ensure that such weight or measure conforms to the standards established by or under this Act; (q) “State Government”, in relation to a Union territory, means the Administrator thereof; (r) “sale”, with its grammatical variations and cognate expressions, means transfer of property in any weight, measure or other goods by one person to another for cash or for deferred payment or for any other valuable consideration and includes a transfer of any weight, measure or other goods on the 4 ----- hire-purchase system or any other system of payment by instalments, but does not include a mortgage or hypothecation of, or a charge or pledge on, such weight, measure or other goods; (s) “seal” means a device or process by which a stamp is made, and includes any wire or other accessory which is used for ensuring the integrity of any stamp; (t) “stamp” means a mark, made by impressing, casting, engraving, etching, branding, affixing pre-stressed paper seal or any other process in relation to, any weight or measure with a view to— (i) certifying that such weight or measure conforms to the standard specified by or under this Act, or (ii) indicating that any mark which was previously made thereon certifying that such weight or measure conforms to the standards specified by or under this Act, has been obliterated; (u) “transaction” means,— (i) any contract, whether for sale, purchase, exchange or any other purpose, or (ii) any assessment of royalty, toll, duty or other dues, or (iii) the assessment of any work done, wages due or services rendered; (v) “verification”, with its grammatical variations and cognate expressions, includes, in relation to any weight or measure, the process of comparing, checking, testing or adjusting such weight or measure with a view to ensuring that such weight or measure conforms to the standards established by or under this Act and also includes re-verification and calibration; (w) “weight or measure” means a weight or measure specified by or under this Act and includes a weighing or measuring instrument. **3. Provisions of this Act to override provisions of any other law.—The provisions of this Act shall** have effect notwithstanding anything inconsistent therewith contained in any enactment other than this Act or in any instrument having effect by virtue of any enactment other than this Act. CHAPTER II STANDARD WEIGHTS AND MEASURES **4. Units of weights and measures to be based on metric system.—Every unit of weight or measure** shall be in accordance with the metric system based on the international system of units. **5. Base unit of weights and measures.—(1) The base unit of—** (i) length shall be the metre; (ii) mass shall be the kilogram; (iii) time shall be the second; (iv) electric current shall be the ampere; (v) thermodynamic temperature shall be the kelvin; (vi) luminous intensity shall be the candela; and (vii) amount of substance shall be the mole. (2) The specifications of the base units mentioned in sub-section (1), derived units and other units shall be such as may be prescribed. **6. Base unit of numeration.—(1) The base unit of numeration shall be the unit of the international** form of Indian numerals. (2) Every numeration shall be made in accordance with the decimal system. (3) The decimal multiples and sub-multiples of the numerals shall be of such denominations and be written in such manner as may be prescribed. 5 ----- **7. Standard units of weights and measures.—(1) The base units of weights and measures specified** in section 5 shall be the standard units of weights and measures. (2) The base unit of numeration specified in section 6 shall be the standard unit of numeration. (3) For the purpose of deriving the value of base, derived and other units mentioned in section 5, the Central Government shall prepare or cause to be prepared objects or equipments in such manner as may be prescribed. (4) The physical characteristics, configuration, constructional details, materials, equipments, performance, tolerances, period of re-verification, methods or procedures of tests shall be such as may be prescribed. **8. Standard weight, measure or numeral.—(1) Any weight or measure which conforms to the** standard unit of such weight or measure and also conforms to such of the provisions of section 7 as are applicable to it shall be the standard weight or measure. (2) Any numeral which conforms to the provisions of section 6 shall be the standard numeral. (3) No weight, measure or numeral, other than the standard weight, measure or numeral, shall be used as a standard weight, measure or numeral. (4) No weight or measure, shall be manufactured or imported unless it conforms to the standards of weight or measure specified under section 8: Provided that provisions of this section shall not apply for manufacture done exclusively for export or for the purpose of any scientific investigation or research. **9. Reference, secondary and working standard.—(1) The reference standards, secondary standards** and working standards of weights and measures shall be such as may be prescribed. (2) Every reference standard, secondary standard and working standard shall be verified and stamped in such manner and after payment of such fee as may be prescribed. (3) Every reference standard, secondary standard and working standard which is not verified and stamped in accordance with the provisions of sub-section (2) shall not be deemed to be a valid standard. **10. Use of weight or measure for particular purposes.—Any transaction, dealing or contract in** respect of any goods, class of goods or undertakings shall be made by such weight, measure or number as may be prescribed. **11. Prohibition of quotation, etc., otherwise than in terms of standard units of weight, measure** **or numeration.—(1) No person shall, in relation to any goods, things or service,—** (a) quote, or make announcement of, whether by word of mouth or otherwise, any price or charge, or (b) issue or exhibit any price list, invoice, cash memo or other document, or (c) prepare or publish any advertisement, poster or other document, or (d) indicate the net quantity of a pre-packaged commodity, or (e) express in relation to any transaction or protection, any quantity or dimension, otherwise than in accordance with the standard unit of weight, measure or numeration. (2) The provisions of sub-section (1) shall not be applicable for export of any goods, things or service. **12. Any custom, usage, etc., contrary to standard weight, measure or numeration to be void.—** Any custom, usage, practice or method of whatever nature which permits a person to demand, receive or cause to be demanded or received, any quantity of article, thing or service in excess of or less than, the quantity specified by weight, measure or number in the contract or other agreement in relation to the said article, thing or service, shall be void. 6 ----- CHAPTER III APPOINTMENT AND POWERS OF DIRECTOR, CONTROLLER AND LEGAL METROLOGY OFFICERS **13. Appointment of Director, legal metrology officers and other employees.—(1) The Central** Government may, by notification, appoint a Director of legal metrology, Additional Director, Joint Director, Deputy Director, Assistant Director and other employees for exercising the powers and discharging the duties conferred or imposed on them by or under this Act in relation to inter-State trade and commerce. (2) The qualifications of the Director and legal metrology officers appointed under sub-section (1) shall be such as may be prescribed. (3) The Director and every legal metrology officer, appointed under sub-section (1), shall exercise such powers and discharge such functions in respect of such local limits as the Central Government may, by notification, specify. (4) Every legal metrology officer appointed under sub-section (1) shall exercise powers and discharge duties under the general superintendence, direction and control of the Director. (5) The Director, the Controller and every legal metrology officer authorised to perform any duty by or under this Act shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860). (6) No suit, prosecution or other legal proceeding shall lie against the Director, the Controller and legal metrology officer authorised to perform any duty by or under this Act in respect of anything which is in good faith done or intended to be done under this Act or any rule or order made thereunder. (7) The Central Government may, with the consent of the State Government and subject to such conditions, limitations and restrictions as it may specify in this behalf, delegate such of the powers of the Director under this Act as it may think fit to the Controller of legal metrology in the State, and such Controller may, if he is of opinion that it is necessary or expedient in the public interest so to do, delegate such of the powers delegated to him as he may think fit to any legal metrology officer and where any such delegation of powers is made by such Controller, the person to whom such powers are delegated shall exercise those powers in the same manner and with the same effect as if they had been conferred on him directly by this Act and not by way of delegation. (8) Where any delegation of powers is made under sub-section (7), the powers so delegated shall be exercised under the general superintendence, direction and guidance of the Director. **14. Appointment of Controller, legal metrology officers and other employees.—(1) The State** Government may, by notification, appoint a Controller of legal metrology, Additional Controller, Joint Controller, Deputy Controller, Assistant Controller, Inspector and other employees for the State for exercising the powers and discharging the duties conferred or imposed on them by or under this Act in relation to intra State trade and commerce. (2) The qualifications of the Controller and legal metrology officers appointed under sub-section (1) shall be such as may be prescribed. (3) The Controller and every legal metrology officer, appointed under sub-section (1), shall exercise such powers and discharge such functions in respect of such local limits as the State Government may, by notification, specify. (4) Every legal metrology officer appointed under sub-section (1) shall exercise and discharge the duties under the general superintendence, direction and control of the Controller. **15. Power of inspection, seizure, etc.—(1) The Director, Controller or any legal metrology officer** may, if he has any reason to believe, whether from any information given to him by any person and taken down in writing or from personal knowledge or otherwise, that any weight or measure or other goods in relation to which any trade and commerce has taken place or is intended to take place and in respect of 7 ----- which an offence punishable under this Act appears to have been, or is likely to be, committed are either kept or concealed in any premises or are in the course of transportation,— (a) enter at any reasonable time into any such premises and search for and inspect any weight, measure or other goods in relation to which trade and commerce has taken place, or is intended to take place and any record, register or other document relating thereto; (b) seize any weight, measure or other goods and any record, register or other document or article which he has reason to believe may furnish evidence indicating that an offence punishable under this Act has been, or is likely to be, committed in the course of, or in relation to, any trade and commerce. (2) The Director, Controller or any legal metrology officer may also require the production of every document or other record relating to the weight or measure referred to in sub-section (1) and the person having the custody of such weight or measure shall comply with such requisition. (3) Where any goods seized under sub-section (1) are subject to speedy or natural decay, the Director, Controller or legal metrology officer may dispose of such goods in such manner as may be prescribed. (4) Every search or seizure made under this section shall be carried out in accordance with the provisions of the Code of Criminal Procedure, 1973 (2 of 1974), relating to searches and seizures. **16. Forfeiture.—(1) Every non-standard or unverified weight or measure, and every package made in** contravention of section 18, used in the course of, or in relation to, any trade and commerce and seized under section 15, shall be liable to be forfeited to the State Government: Provided that such unverified weight or measure shall not be forfeited to the State Government if the person from whom such weight or measure was seized gets the same verified and stamped within such time as may be prescribed. (2) Every weight, measure or other goods seized under section 15 but not forfeited under sub-section (1), shall be disposed of by such authority and in such manner as may be prescribed. **17. Manufacturers, etc., to maintain records and registers.—(1) Every manufacturer, repairer or** dealer of weight or measure shall maintain such records and registers as may be prescribed. (2) The records and registers maintained under sub-section (1) shall be produced at the time of inspection to the persons authorised for the said purpose under sub-section (1) of section 15. **18. Declarations on pre-packaged commodities.—(1) No person shall manufacture, pack, sell,** import, distribute, deliver, offer, expose or possess for sale any pre-packaged commodity unless such package is in such standard quantities or number and bears thereon such declarations and particulars in such manner as may be prescribed. (2) Any advertisement mentioning the retail sale price of a pre-packaged commodity shall contain a declaration as to the net quantity or number of the commodity contained in the package in such form and manner as may be prescribed. **19. Registration for importer of weight or measure.—No person shall import any weight or** measure unless he is registered with the Director in such manner and on payment of such fees, as may be prescribed. **20. Non-standard weights and measures not to be imported.—No weight or measure, whether** singly or as a part or component of any machine shall be imported unless it conforms to the standards of weight or measure established by or under this Act. **21. Training in Legal Metrology.—(1) For imparting training in Legal Metrology and other allied** branches of knowledge the “Indian Institute of Legal Metrology” (hereinafter referred to as the “Institute”) established under the provisions of the Standards of Weights and Measures Act, 1976 (60 of 1976), shall be deemed to have been established under the corresponding provisions of this Act. (2) The management and control of the Institute, the teaching staff and other employees, the courses and curricula for training thereat, the qualifications, which a person shall possess in order to be eligible for admission thereto shall be such as may be prescribed. 8 ----- **22. Approval of model.—Every person, before manufacturing or importing any weight or measure** shall seek the approval of model of such weight or measure in such manner, on payment of such fee and from such authority as may be prescribed: Provided that such approval of model may not be required in respect of any cast iron, brass, bullion, or carat weight or any beam scale, length measures (not being measuring tapes) which are ordinarily used in retail trade for measuring textiles or timber, capacity measures, not exceeding twenty litre in capacity, which are ordinarily used in retail trade for measuring kerosene, milk or potable liquors: Provided further that the prescribed authority may, if he is satisfied that the model of any weight or measure which has been approved in a country outside India conforms to the standards established by or under this Act, approve such model without any test or after such test as he may deem fit. **23. Prohibition on manufacture, repair or sale of weight or measure without licence.—(1) No** person shall manufacture, repair or sell, or offer, expose or possess for repair or sale, any weight or measure unless he holds a licence issued by the Controller under sub-section (2): Provided that no licence to repair shall be required by a manufacturer for repair of his own weight or measure in a State other than the State of manufacture of the same. (2) For the purpose of sub-section (1), the Controller shall issue a licence in such form and manner, on such conditions, for such period and such area of jurisdiction and on payment of such fee as may be prescribed. CHAPTER IV VERIFICATION AND STAMPING OF WEIGHT OR MEASURE **24. Verification and stamping of weight or measure.—(1) Every person having any weight or** measure in his possession, custody or control in circumstances indicating that such weight or measure is being, or is intended or is likely to be, used by him in any transaction or for protection, shall, before putting such weight or measure into such use, have such weight or measure verified at such place and during such hours as the Controller may, by general or special order, specify in this behalf, on payment of such fees as may be prescribed. (2) The Central Government may prescribe the kinds of weights and measures for which the verification is to be done through the Government approved Test Centre. (3) The Government approved Test Centre shall be notified by the Central Government or the State Government, as the case may be, in such manner, on such terms and conditions and on payment of such fee as may be prescribed. (4) The Government approved Test Centre shall appoint or engage persons having such qualifications and experience and collect such fee on such terms and conditions for the verification of weights and measures specified under sub-section (2) as may be prescribed. CHAPTER V OFFENCES AND PENALTIES **25. Penalty for use of non-standard weight or measure.—Whoever uses or keeps for use any** weight or measure or makes use of any numeration otherwise than in accordance with the standards of weight or measure or the standard of numeration, as the case may be, specified by or under this Act, shall be punished with fine which may extend to [1][one lakh rupees and for the second offence with fine which may extend to two lakh rupees and for the third and subsequent offence, with fine which may extend to five lakh rupees]. **26. Penalty for alteration of weight and measure.—Whoever tampers with, or alters in any way,** any reference standard, secondary standard or working standard or increases or decreases or alters any weight or measure with a view to deceiving any person or knowing or having reason to believe that any person is likely to be deceived thereby, except where such alteration is made for the correction of any 1. Subs. by Act 18 of 2023, s. 2 and the Schedule, for certain words (w.e.f. 1-10-2023). 9 ----- error noticed therein on verification, shall be punished with fine which may extend to fifty thousand rupees and for the second and subsequent offence with imprisonment for a term which shall not be less than six months but which may extend to one year or with fine or with both. **27. Penalty for manufacture or sale of non-standard weight or measure.—Every person who** manufactures or causes to be manufactured or sells or offers, exposes or possesses for sale, any weight or measure which,— (a) does not conform to the standards of weight or measure specified by or under this Act; or (b) which bears thereon any inscription of weight, measure or number which does not conform to the standards of weight, measure or numeration specified by or under this Act, except where he is permitted to do so under this Act, shall be punished with a fine which may extend to [1][one lakh rupees and for the second offence with fine which may extend to two lakh rupees and for the third and subsequent offence, with fine which may extend to four lakh rupees]. **28. Penalty for making any transaction, deal or contract in contravention of the prescribed** **standards.—Whoever makes any transaction, deal or contract in contravention of the standards of** weights and measures specified under section 10 shall be punished with fine which may extend to [1][fifty thousand rupees and for the second offence with fine which may extend to one lakh rupees and for the third and subsequent offence with fine which may extend to two lakh rupees]. **29. Penalty for quoting or publishing, etc., of non-standard units.—Whoever violates section 11** shall be punished with fine which may extend to [1][fifty thousand rupees for the second offence with fine which may extend to one lakh rupees and for the third and subsequent offence with a fine which may extend to two lakh rupees]. **30. Penalty for transactions in contravention of standard weight or measure.—Whoever—** (a) in selling any article or thing by weight, measure or number, delivers or causes to be delivered to the purchaser any quantity or number of that article or thing less than the quantity or number contracted for or paid for; or (b) in rendering any service by weight, measure or number, renders that service less than the service contracted for or paid for; or (c) in buying any article or thing by weight, measure or number, fraudulently receives, or causes to be received any quantity or number of that article or thing in excess of the quantity or number contracted for or paid for; or (d) in obtaining any service by weight, measure or number, obtains that service in excess of the service contracted for or paid for, shall be punished with fine which may extend to ten thousand rupees, and, for the second or subsequent offence, with imprisonment for a term which may extend to one year, or with fine, or with both. **31. Penalty for non-production of documents, etc.—Whoever, being required by or under this Act** or the rules made thereunder to submit returns, maintain any record or register, or being required by the Director or the Controller or any legal metrology officer to produce before him for inspection any weight or measure or any document, register or other record relating thereto, omits or fails without any reasonable excuse, so to do, shall be punished with fine which may extend to [1][twenty-five thousand rupees and for the second offence with fine which may extend to fifty thousand rupees and for the third and subsequent offence, with fine which may extend to one lakh rupees]. **32. Penalty for failure to get model approved.—Whoever fails or omits to submit model of any** weight or measure for approval, shall be punished with fine which may extend to twenty thousand rupees and for the second or subsequent offence, with imprisonment for a term which may extend to one year and also with fine. 1. Subs. by Act 18 of 2023, s. 2 and the Schedule for certain words (w.e.f. 1-10-2023). 10 ----- **33. Penalty for use of unverified weight or measure.—Whoever, sells, distributes, delivers or** otherwise transfers or uses any unverified weight or measure shall be punished with fine which shall not be less than two thousand rupees but which may extend to ten thousand rupees and, for the second or subsequent offence, with imprisonment for a term which may extend to one year and also with fine. **34. Penalty for sale or delivery of commodities, etc., by non-standard weight or measure.—** Whoever sells, or causes to be sold, delivers, or causes to be delivered, any commodity, article or thing by any means other than the standard weight or measure or number, shall be punished with [1][fine which may extend to twenty-five thousand rupees and for the second offence with fine which may extend to fifty thousand rupees and for the third and subsequent offence, with fine which may extend to one lakh rupees]. **35. Penalty for rendering services by non-standard weight, measure or number.—Whoever** renders or causes to be rendered, any service through means other than the weight or measure or numeration or in terms of any weight, measure or number other than the standard weight or measure, shall be punished with [1][fine which may extend to twenty-five thousand rupees and for the second offence with fine which may extend to fifty thousand rupees and for the third and subsequent offence, with fine which may extend to one lakh rupees]. **36. Penalty for selling, etc., of non-standard packages.—(1) Whoever manufactures, packs,** imports, sells, distributes, delivers or otherwise transfers, offers, exposes or possesses for sale, or causes to be sold, distributed, delivered or otherwise transferred, offered, exposed for sale any pre-packaged commodity which does not conform to the declarations on the package as provided in this Act, shall be punished with fine which may extend to twenty-five thousand rupees, for the second offence, with fine which may extend to fifty thousand rupees and for the subsequent offence, with fine which shall not be less than fifty thousand rupees but which may extend to one lakh rupees or with imprisonment for a term which may extend to one year or with both. (2) Whoever manufactures or packs or imports or causes to be manufactured or packed or imported, any pre-packaged commodity, with error in net quantity as may be prescribed shall be punished with fine which shall not be less than ten thousand rupees but which may extend to fifty thousand rupees and for the second and subsequent offence, with fine which may extend to one lakh rupees or with imprisonment for a term which may extend to one year or with both. **37. Penalty for contravention by Government approved Test Centre.—(1) Where any** Government approved Test Centre contravenes any of the provisions of this Act or the rules made thereunder, or the conditions of the licence, it shall be punished with fine which may extend to one lakh rupees. (2) Where any owner or employee of a Government Approved Test Centre performing duties in accordance with the provisions of this Act or the rules made thereunder, wilfully verifies or stamps any weight or measure in contravention of the provisions of this Act or the rules made thereunder, he shall, for every such contravention, be punishable with imprisonment for a term which may extend to one year or with fine which may extend to ten thousand rupees or with both. **38. Penalty for non-registration by importer of weight or measure.—Whoever imports any** weight or measure without being registered under this Act shall be punished with fine which may extend to twenty-five thousand rupees and for the second or subsequent offence, with imprisonment for a term which may extend to six months, or with fine, or with both. **39. Penalty for import of non-standard weight or measure.—Whoever imports any non-standard** weight or measure shall be punished with fine, which may extend to fifty thousand rupees and for the second or subsequent offence, with imprisonment for a term which may extend to one year and also with fine. **40. Penalty for obstructing Director, Controller or legal metrology officer.—Whoever obstructs** the Director, the Controller or any legal metrology officer with intent to prevent or deter the Director or 1. Subs. by Act 18 of 2023, s. 2 and the Schedule for certain words (w.e.f. 1-10-2023). 11 ----- the Controller or any legal metrology officer from exercising his powers or discharging his functions, or in consequence of anything done or attempted to be done by the Director or the Controller or any legal metrology officer in the lawful exercise of his powers or discharge of his functions as such, or whoever obstructs the entry of the Director or the Controller or any legal metrology officer into any premises for inspection and verification of any weight or measure or any document or record relating thereto or the net contents of any packaged commodity or for any other purpose shall be punished with imprisonment for a term which may extend to two years and for the second or subsequent offence, with imprisonment for a term which may extend to five years. **41. Penalty for giving false information or false return.—(1) Whoever gives any information to** the Director, the Controller or any legal metrology officer, which he may require or ask for in the course of his duty, and which such person either knows or has reason to believe to be false, shall be punished with fine which may extend to five thousand rupees and for the second or subsequent offence with imprisonment for a term which may extend to six months and also with fine. (2) Whoever, being required by or under this Act so to do, submits a return or maintains any record or register which is false in material particulars, shall be punished with fine which may extend to five thousand rupees and for the second or subsequent offence, with imprisonment for a term which may extend to one year and also with fine. **42. Vexatious search.—The Director, the Controller or any legal metrology officer, exercising** powers under this Act or any rule made thereunder, who knows that there are no reasonable grounds for so doing, and yet— (a) searches, or causes to be searched, any house, conveyance or place; or (b) searches any person; or (c) seizes any weight, measure or other movable property; shall, for every such offence, be punished with imprisonment for a term which may extend to one year, or with fine which may extend to ten thousand rupees or with both. **43. Penalty for verification in contravention of Act and rules.—Where the Controller or any legal** metrology officer exercising powers under this Act or any rule made thereunder, wilfully verifies or stamps any weight or measure, in contravention of the provisions of this Act or of any rule made thereunder, he shall, for every such offence, be punished with imprisonment for a term which may extend to one year, or with fine which may extend to ten thousand rupees or with both. **44. Penalty for counterfeiting of seals, etc.—(1) Whoever—** (i) counterfeits any seal specified by or under this Act or the rules made thereunder, or (ii) sells or otherwise disposes of any counterfeit seal, or (iii) possesses any counterfeit seal, or (iv) counterfeits or removes or tampers with any stamp, specified by or under this Act or rules made thereunder, or (v) affixes the stamp so removed on, or inserts the same into, any other weight or measure, shall be punished with imprisonment for a term which shall not be less than six months but which may extend to one year and for the second or subsequent offence, with imprisonment for a term which shall not be less than six months but which may extend to five years. _Explanation.—In this sub-section, “counterfeit” shall have the meaning assigned to it in section 28 of_ the Indian Penal Code (45 of 1860). (2) Whoever obtains, by unlawful means, any seal specified by or under this Act or the rules made thereunder and uses, or causes to be used, any such seal for making any stamp on any weight or measure with a view to representing that the stamp made by such seal is authorised by or under this Act or the rules made thereunder shall be punished with imprisonment for a term which shall not be less than six 12 ----- months but which may extend to one year and for the second or subsequent offence, with imprisonment for a term which shall not be less than six months but which may extend to five years. (3) Whoever, being in lawful possession of a seal specified by or under this Act or the rules made thereunder, uses, or causes to be used, such seal without any lawful authority for such use, shall be punished with imprisonment for a term which shall not be less than six months but which may extend to one year and for the second or subsequent offence, with imprisonment for a term which shall not be less than six months but which may extend to five years. (4) Whoever sells or offers or exposes for sale or otherwise disposes of any weight or measure which, he knows or has reason to believe, bears thereon a counterfeit stamp, shall be punished with imprisonment for a term which shall not be less than six months but which may extend to one year and for the second or subsequent offence, with imprisonment for a term which shall not be less than six months but which may extend to five years. **45. Penalty for manufacture of weight and measure without licence.—Whoever, being required to** obtain a licence under this Act or the rules made thereunder, manufactures, without being in possession of a valid licence, any weight or measure, shall be punished with fine which may extend to twenty thousand rupees and for the second or subsequent offence, with imprisonment for a term which may extend to one year, or with fine, or with both. **46. Penalty for repair, sale, etc., of weight and measure without licence.—Whoever, being** required to obtain a licence under this Act or the rules made thereunder repairs or sells or offers, exposes or possesses for repair or sale, any weight or measure, without being in possession of a valid licence, shall be punished with fine which may extend to five thousand rupees and for the second or subsequent offence, with imprisonment for a term which may extend to one year, or with fine, or with both. **47. Penalty for tampering with licence.—Whoever alters or otherwise tampers, with any licence** issued or renewed under this Act or rules made thereunder, otherwise than in accordance with any authorisation made by the Controller in this behalf, shall be punished with fine which may extend to twenty thousand rupees, or with imprisonment for a term which may extend to one year or with both. **48. Compounding of offences.—(1) Any offence punishable under section 25,** [1][sections 27 to 39, section 41], sections 45 to 47, or any rule made under sub-section (3) of section 52 may, either before or after the institution of the prosecution, be compounded, on payment for credit to the Government of such sum as may be prescribed. (2) The Director or legal metrology officer as may be specially authorised by him in this behalf, may compound offences punishable under section 25, [1][sections 27 to 39, section 41], or any rule made under sub-section (3) of section 52. (3) The Controller or legal metrology officer specially authorised by him, may compound offences punishable under section 25, sections 27 to 31, sections 33 to 37, [2][section 41,] sections 45 to 47, and any rule made under sub-section (3) of section 52: Provided that such sum shall not, in any case, exceed the maximum amount of the fine, which may be imposed under this Act for the offence so compounded. (4) Nothing in sub-section (1) shall apply to person who commits the same or similar offence, within a period of three years from the date on which the first offence, committed by him, was compounded. _Explanation.—For the purposes of this sub-section, any second or subsequent offence committed_ after the expiry of a period of three years from the date on which the offence was previously compounded, shall be deemed to be a first offence. (5) Where an offence has been compounded under sub-section (1), no proceeding or further proceeding, as the case may be, shall be taken against the offender in respect of the offence so compounded. 1. Subs. by Act 18 of 2023, s. 2 and the schedule for “sections 27 to 39” (w.e.f. 1-10-2023). 2. Ins. by s. 2 and the schedule, ibid, (w.e.f. 1-10-2023). 13 ----- (6) No offence under this Act shall be compounded except as provided by this section. **49. Offences by companies and power of court to publish name, place of business, etc., for** **companies convicted.—(1) Where an offence under this Act has been committed by a company,—** (a) (i) the person, if any, who has been nominated under sub-section (2) to be in charge of, and responsible to, the company for the conduct of the business of the company (hereinafter in this section referred to as a person responsible); or (ii) where no person has been nominated, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company; and (b) the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act if he proves that the offence was committed without his knowledge and that he exercised all due diligence to prevent the commission of such offence. (2) Any company may, by order in writing, authorise any of its directors to exercise all such powers and take all such steps as may be necessary or expedient to prevent the commission by the company of any offence under this Act and may give notice to the Director or the concerned Controller or any legal metrology officer authorised in this behalf by such Controller (hereinafter in this section referred to as the authorised officer) in such form and in such manner as may be prescribed, that it has nominated such director as the person responsible, along with the written consent of such director for being so nominated. _Explanation.—Where a company has different establishments or branches or different units in any_ establishment or branch, different persons may be nominated under this sub-section in relation to different establishments or branches or units and the person nominated in relation to any establishment, branch or unit shall be deemed to be the person responsible in respect of such establishment, branch or unit. (3) The person nominated under sub-section (2) shall, until— (i) further notice cancelling such nomination is received from the company by the Director or the concerned Controller or the authorised officer; or (ii) he ceases to be a director of the company; or (iii) he makes a request in writing to the Director or the concerned Controller or the legal metrology officer under intimation to the company, to cancel the nomination, which request shall be complied with by the Director or the concerned Controller or the legal metrology officer, whichever is the earliest, continue to be the person responsible: Provided that where such person ceases to be a director of the company, he shall intimate the fact of such cessation to the Director or the concerned Controller or the authorised officer: Provided further that where such person makes a request under clause (iii) the Director or the concerned Controller or the authorised officer shall not cancel such nomination with effect from a date earlier than the date on which the request is made. (4) Notwithstanding anything contained in the foregoing sub-sections, where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to the neglect on the part of, any director, manager, secretary or other officer, not being a person nominated under sub-section (2), such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. (5) Where any company is convicted under this Act for contravention of any of the provisions thereof, it shall be competent for the court convicting the company to cause the name and place of business of the company, nature of the contravention, the fact that the company has been so convicted and such other 14 ----- particulars as the court may consider to be appropriate in the circumstances of the case, to be published at the expense of the company in such newspaper or in such other manner as the court may direct. (6) No publication under sub-section (5) shall be made until the period for preferring an appeal against the orders of the court has expired without any appeal having been preferred, or such an appeal, having been preferred, has been disposed of. (7) The expenses of any publication under sub-section (5) shall be recoverable from the company as if it were a fine imposed by the court. _Explanation.—For the purposes of this section,—_ (a) “company” means any body corporate and includes a firm or other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm but excludes nominated directors, honorary directors, Government nominated directors. **50. Appeals.—(1) Subject to the provisions of sub-section (2), an appeal shall lie,—** (a) from every decision or order under sections 15 to 20, section 22, section 25, sections 27 to 39, section 41 or any rule made under sub-section (3) of section 52 by the legal metrology officer appointed under section 13, to the Director; (b) from every decision or order made by the Director of Legal Metrology under sections 15 to 20, section 22, section 25, sections 27 to 39, section 41 or any rule made under sub-section (3) of section 52, to the Central Government or any officer specially authorised in this behalf by that Government; (c) from every decision given by the Controller of Legal Metrology under delegated powers of Director Legal Metrology to the Central Government; (d) from every decision given or order made under sections 15 to 18, sections 23 to 25, sections 27 to 37, sections 45 to 47 or any rule made under sub-section (3) of section 53 by any legal metrology officer appointed under section 14, to the Controller; and (e) from every decision given or order made by the Controller under sections 15 to 18, sections 23 to 25, sections 27 to 37, sections 45 to 47 or any rule made under sub-section (3) of section 53 not being an order made in appeal under clause (d), to the State Government or any officer specially authorised in this behalf by that Government. (2) Every such appeal shall be preferred within sixty days from the date on which the impugned order was made: Provided that the appellate authority may, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal within the said period of sixty days, permit the appellant to prefer the appeal within a further period of sixty days. (3) On receipt of any such appeal, the appellate authority shall, after giving the parties to the appeal, a reasonable opportunity of being heard and after making such inquiry as it deems proper, make such order, as it may think fit, confirming, modifying or reversing the decision or order appealed against or may send back the case with such direction as it may think fit for a fresh decision or order after taking additional evidence, if necessary. (4) Every appeal shall be preferred on payment of such fees, as may be prescribed. (5) The Central Government or the State Government, as the case may be, may on its own motion or otherwise, call for and examine the record of any proceeding including a proceeding in appeal in which any decision or order has been made, for the purpose of satisfying itself as to the correctness, legality or propriety of such decision or order and may pass such orders thereon as it may think fit: Provided that no decision or order shall be varied under this sub-section so as to prejudicially affect any person unless such person has been given a reasonable opportunity of showing cause against the proposed action. 15 ----- **51. Provisions of Indian Penal Code and Code of Criminal Procedure not to apply.—The** provisions of the Indian Penal Code (45 of 1860) and section 153 of the Code of Criminal Procedure, 1973 (2 of 1974) in so far as such provisions relate to offences with regard to weight or measure, shall not apply to any offence which is punishable under this Act. **52. Power of the Central Government to make rules.—(1) The Central Government may, by** notification, make rules for carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the specification of the base units of measures and base unit of mass under sub-section (2) of section 5; (b) the manner of preparation of objects and equipments under sub-section (3) of section 7; (c) physical characteristics, configuration, constructional details, materials, equipment, performance, tolerances, period of re-verification, methods or procedures of tests under sub-section (4) of section 7; (d) reference standards, secondary standards and working standards of weights and measures under sub-section (1) of section 9; (e) reference standards, secondary standards and working standards shall be verified and stamped and the fee under sub-section (2) of section 9; (f) the weight or measure or number in which any transaction, dealing, or contract in respect of any goods, class of goods or undertakings shall be made under section 10; (g) the qualifications of the Director and legal metrology officers under sub-section (2) of section 13; (h) the qualification of the Controller and legal metrology officers under sub-section (2) of section 14; (i) the manner of disposal of goods under sub-section (3) of section 15; (j) the standard quantities or number and the manner in which the packages shall bear the declarations and the particulars under sub-section (1) of section 18; (k) the manner and registration and the fee under section 19; (l) the management and control of the Institute, the teaching staff and other employees, the courses and curricula for training thereat, the qualifications, which a person shall possess in order to be eligible for admission thereto under sub-section (2) of section 21; (m) the manner, fee and authority for approval of models under section 22; (n) the kinds of weights or measures under sub-section (2) of section 24; (o) the manner in which, terms and conditions on which and fee on payment which the Central Government shall notify the Government approved Test Centre under sub-section (3) of section 24; (p) the qualifications and experience of persons appointed or engaged and the fee and terms and conditions on which Government approved Test Centre shall verify the weight or measure under sub-section (4) of section 24; (q) the error in net quantity under sub-section (2) of section 36; (r) fee for compounding of offence under sub-section (1) of section 48; (s) form and manner in which notice to the Director or the Controller or any other officer authorised by him shall be given under sub-section (2) of section 49. (3) In making any rule under this section, the Central Government may provide that a breach thereof shall be punishable with fine which may extend to five thousand rupees. 16 ----- (4) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **53. Power of State Government to make rules.—(1) The State Government may, by notification,** and after consultation with the Central Government, make rules to carry out the provisions of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the time within which the weight or measure may be got verified under proviso to sub-section (1) of section 16; (b) registers and records to be maintained by persons referred to under sub-section (1) of section 17; (c) the form, manner, conditions, period, area of jurisdiction and fees for issuance of licence under sub-section (2) of section 23; (d) fee for verification and stamping of any weight or measure under sub-section (1) of section 24; (e) manner of notifying Government approved Test Centre, terms and conditions and fee to be paid under sub-section (3) of section 24; (f) fee for compounding of offences under sub-section (1) of section 48. (3) In making any rule under this section, the State Government may provide that a breach thereof shall be punishable with fine which may extend to five thousand rupees. (4) The power to make rules under this section shall be subject to the condition of the rules being made after previous publication in Official Gazette. (5) Every rule made under this section shall, as soon as may be after it is made, be laid before each House of State Legislature, where there are two Houses and where there is one House of State Legislature, before that House. **54. Delegation of Powers.—(1) The Central Government may, in consultation with the State** Government and by notification, direct that any power exercisable by it under this Act or any rule made thereunder, not being a power conferred by section 50 relating to appeal or section 52 relating to power to make rules, in relation to such matters and subject to such conditions as may be specified, may be exercised also by such officer subordinate to it as may be specified in the notification. (2) Subject to any general or special direction or condition imposed by the State Government, any person authorised by the Central Government to exercise any powers may exercise those powers in the same manner and to the same extent as if they had been conferred on that person directly by this Act and not by way of delegation. **55. Act not to apply in certain cases.—The provisions of this Act, in so far as they relate to** verification and stamping of weights and measures, shall not apply to any weight or measure,— (a) used in any factory exclusively engaged in the manufacture of any arms, ammunition or both, for the use of the Armed Forces of the Union; (b) used for scientific investigation or for research; (c) manufactured exclusively for export. 17 ----- **56. Existing Director, Controller and legal metrology officer not to be affected by the new** **qualification to be prescribed.—(1) Every Director, Controller and legal metrology officer appointed** immediately before the commencement of the rules made under this Act, shall be deemed to have been appointed under sub-section (1) of sections 13 and 14, notwithstanding any rule prescribing different qualifications. (2) The rules made by a State Government under the Standards of Weights and Measures (Enforcement) Act, 1985 (54 of 1985) which are in force immediately before the commencement of this Act shall remain in force until the State Government, makes rules in that behalf. **57. Repeal of the Standards of Weights and Measures Act, 1976 and Standards of Weights and** **Measures (Enforcement) Act, 1985.—(1) The Standards of Weights and Measures Act, 1976** (60 of 1976) and the Standards of Weights and Measures (Enforcement) Act, 1985 (54 of 1985), is hereby repealed. (2) Without prejudice to the provisions contained in the General Clauses Act, 1897 (10 of 1897), with respect to repeals, any notification, rule or order made under the Standards of Weights and Measures Act, 1976 (60 of 1976) and the Standards of Weights and Measures (Enforcement) Act, 1985 (54 of 1985), shall, if in force, at the commencement of this Act, continue to be in force and have effect as if it was made under the corresponding provision of this Act. (3) Notwithstanding such repeal, any appointment, notification, rule, order, registration, licence, certificate, notice, decision, approval, authorisation or consent made, issued or given under such law shall, if in force at the commencement of this Act, continue to be in force and have effect as if it were made, issued or given under the corresponding provisions of this Act. __________ 18 -----

18-May-2010

16

The Tamil Nadu Legislative Council Act, 2010

https://www.indiacode.nic.in/bitstream/123456789/2015/1/A2010-16.pdf

central

# THE TAMIL NADU LEGISLATIVE COUNCIL ACT, 2010 __________ ARRANGEMENT OF SECTIONS __________ SECTIONS 1. Short title. 2. Definition. 3. Creation of Legislative Council for Tamil Nadu. 4. Amendment of Third Schedule and Fourth Schedule to Act 43 of 1950. 5. Amendment of section 15A of Act 43 of 1951. 1 ----- # THE TAMIL NADU LEGISLATIVE COUNCIL ACT, 2010 ACT NO. 16 OF 2010 [18th May, 2010.] # An Act to provide for the creation of Legislative Council for the State of Tamil Nadu and for matters supplemental, incidental and consequential thereto. BE it enacted by Parliament in the Sixty-first Year of the Republic of India as follows:— **1. Short title.—This Act may be called the Tamil Nadu Legislative Council Act, 2010.** **2. Definition.—In this Act, unless the context otherwise requires, each of the words and expressions** used herein and not defined but defined in the Representation of the People Act, 1950 (43 of 1950) shall have the same meaning as in that Act. **3. Creation of Legislative Council for Tamil Nadu.—(1) As from such date as the President may,** by order appoint, there shall be a Legislative Council for the State of Tamil Nadu; and as from that date, in sub-clause (a) of clause (1) of article 168, after the word “Karnataka,”, the words “Tamil Nadu” shall be inserted. (2) In the said Council, there shall be 78 seats of which— (a) the numbers to be filled by persons elected by the electorates referred to in sub-clauses (a), (b) and (c) of clause (3) of article 171 shall be 26, 7 and 7 respectively; (b) the number to be filled by persons elected by the members of the Legislative Assembly of Tamil Nadu in accordance with the provisions of sub-clause (d) of the said clause shall be 26; and (c) the number to be filled by persons nominated by the Governor of Tamil Nadu in accordance with the provisions of sub-clause (e) of that clause shall be 12. (3) As soon as may be after the commencement of this Act, the President, after consultation with the Election Commission, shall, by order, determine,— (a) the constituencies into which the State of Tamil Nadu shall be divided for the purpose of elections to the said Council under each of the sub-clauses (a), (b) and (c) of clause (3) of article 171; (b) the extent of each constituency; and (c) the number of seats to be allotted to each constituency. (4) As soon as may be after such determination, steps shall be taken to constitute the said Council in accordance with the provisions of this Act, the Representation of the People Act, 1950 (43 of 1950) and the Representation of the People Act, 1951 (43 of 1951). **4. Amendment of Third Schedule and Fourth Schedule to Act 43 of 1950.—In the Representation** of the People Act, 1950,— (a) in the Third Schedule, after entry No. 6 relating to Karnataka, the following entry shall be inserted, namely:— “7. Tamil Nadu 78 26 7 7 26 12”; (b) in the Fourth Schedule, after the heading “KARNATAKA” and the entries thereunder, the following heading and entries shall be inserted, namely:— “TAMIL NADU 1. Municipalities, as referred to in article 243Q of the Constitution. 2. Panchayat Union Councils. 3. Cantonment Boards. 2 ----- 4.District Panchayats referred to in the Tamil Nadu Panchayat Act, 1994 (Tamil Nadu Act 21 of 1994).”. **5. Amendment of section 15A of Act 43 of 1951.—In section 15A of the Representation of the** People Act, 1951, after the words and figures “under the Andhra Pradesh Legislative Council Act, 2005 (1 of 2006)”, the words and figures “and constituting the Legislative Council of the State of Tamil Nadu under the Tamil Nadu Legislative Council Act, 2010” shall be inserted. _________ 3 -----

2-Jun-2010

19

The National Green Tribunal Act, 2010

https://www.indiacode.nic.in/bitstream/123456789/2025/1/AA2010__19green.pdf

central

# THE NATIONAL GREEN TRIBUNAL ACT, 2010 _________________ ARRANGEMENT OF SECTIONS Last Updated: 17-9-2021 __________________ CHAPTER I PRELIMINARY SECTIONS 1. Short title and commencement. 2. Definitions. CHAPTER II ESTABLISHMENT OF THE TRIBUNAL 3. Establishment of Tribunal. 4. Composition of Tribunal. 5. Qualifications for appointment of Chairperson, Judicial Member and Expert Member. 6. Appointment of Chairperson, Judicial Member and Expert Member. 7. Term of office and other conditions of service of Chairperson, Judicial Member and Expert Member. 8. Resignation. 9. Salaries, allowances and other terms and conditions of service. 10. Removal and suspension of Chairperson, Judicial Member and Expert Member. 10A. Qualifications, terms and conditions of service of Chairperson, Judicial Member and Expert Member. 11. To act as Chairperson of Tribunal or to discharge his functions in certain circumstances. 12. Staff of Tribunal. 13. Financial and administrative powers of Chairperson. CHAPTER III JURISDICTION, POWERS AND PROCEEDINGS OF THE TRIBUNAL 14. Tribunal to settle disputes. 15. Relief, compensation and restitution. 16. Tribunal to have appellate jurisdiction. 17. Liability to pay relief or compensation in certain cases. 18. Application or appeal to Tribunal. 19. Procedure and powers of Tribunal. 20. Tribunal to apply certain principles. 21. Decision to be taken by majority. 22. Appeal to Supreme Court. 23. Cost. 24. Deposit of amount payable for damage to environment. 25. Execution of award or order or decision of Tribunal. CHAPTER IV PENALTY 26. Penalty for failure to comply with orders of Tribunal. 27. Offences by companies. 28. Offences by Government Department. 1 ----- CHAPTER V MISCELLANEOUS SECTIONS 29. Bar of jurisdiction. 30. Cognizance of offences. 31. Members and staff of Tribunal to be public servants. 32. Protection of action taken in good faith. 33. Act to have overriding effect. 34. Power to amend Schedule I. 35. Power to make rules. 36. Amendment of certain enactments. 37. Power to remove difficulties. 38. Repeal and savings. SCHEDULE I. SCHEDULE II. SCHEDULE III. 2 ----- # THE NATIONAL GREEN TRIBUNAL ACT, 2010 ACT NO. 19 OF 2010 [2nd June, 2010.] # An Act to provide for the establishment of a National Green Tribunal for the effective and expeditious disposal of cases relating to environmental protection and conservation of forests and other natural resources including enforcement of any legal right relating to environment and giving relief and compensation for damages to persons and property and for matters connected therewith or incidental thereto. AND WHEREAS India is a party to the decisions taken at the United Nations Conference on the Human Environment held at Stockholm in June, 1972, in which India participated, calling upon the States to take appropriate steps for the protection and improvement of the human environment; AND WHEREAS decisions were taken at the United Nations Conference on Environment and Development held at Rio de Janeiro in June, 1992, in which India participated, calling upon the States to provide effective access to judicial and administrative proceedings, including redress and remedy and to develop national laws regarding liability and compensation for the victims of pollution and other environmental damage; AND WHEREAS in the judicial pronouncement in India, the right to healthy environment has been construed as a part of the right to life under article 21 of the Constitution; AND WHEREAS it is considered expedient to implement the decisions taken at the aforesaid conferences and to have a National Green Tribunal in view of the involvement of multi-disciplinary issues relating to the environment. BE it enacted by Parliament in the Sixty-first Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title and commencement.—(1) This Act may be called the National Green Tribunal Act,** 2010. (2) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.—(1) In this Act, unless the context otherwise requires,—** (a) "accident" means an accident involving a fortuitous or sudden or unintended occurrence while handling any hazardous substance or equipment, or plant, or vehicle resulting in continuous or intermittent or repeated exposure to death, of, or, injury to, any person or damage to any property or environment but does not include an accident by reason only of war or civil disturbance; (b) "Chairperson" means the Chairperson of the National Green Tribunal; (c) "environment" includes water, air and land and the inter-relationship, which exists among and between water, air and land and human beings, other living creatures, plants, micro-organism and property; (d) "Expert Member" means a member of the Tribunal who, is appointed as such, and holds qualifications specified in sub-section (2) of section 5, and, is not a Judicial Member; (e) "handling", in relation to any hazardous substance, means the manufacture, processing, treatment, package, storage, transportation, use, collection, destruction, conversion, offering for sale, transfer or the like of such hazardous substance; 1. 18th October, 2010, _vide notification No. S.O 2569(E), dated 18th October, 2010,_ _see Gazette of India,_ Extraordinary, Part II, sec. 3(ii). 3 ----- (f) "hazardous substance" means any substance or preparation which is defined as hazardous substance in the Environment (Protection) Act, 1986 (29 of 1986), and exceeding such quantity as specified or may be specified by the Central Government under the Public Liability Insurance Act, 1991 (6 of 1991); (g) "injury" includes permanent, partial or total disablement or sickness resulting out of an accident; (h) "Judicial Member" means a member of the Tribunal who is qualified to be appointed as such under sub-section (1) of section 5 and includes the Chairperson; (i) "notification" means a notification published in the Official Gazette; (j) "person" includes— (i) an individual, (ii) a Hindu undivided family, (iii) a company, (iv) a firm, (v) an association of persons or a body of individuals, whether incorporated or not, (vi) trustee of a trust, (vii) a local authority, and (viii) every artificial juridical person, not falling within any of the preceding sub-clauses; (k) "prescribed" means prescribed by rules made under this Act; (l) "Schedule" means Schedules I, II and III appended to this Act; (m) "substantial question relating to environment" shall include an instance where,— (i) there is a direct violation of a specific statutory environmental obligation by a person by which,— (A) the community at large other than an individual or group of individuals is affected or likely to be affected by the environmental consequences; or (B) the gravity of damage to the environment or property is substantial; or (C) the damage to public health is broadly measurable; (ii) the environmental consequences relate to a specific activity or a point source of pollution; (n) "Tribunal" means the National Green Tribunal established under section 3; (o) "workman" has the meaning assigned to it in the Workmen's Compensation Act, 1923 (8 of 1923). (2) The words and expressions used in this Act but not defined herein and defined in the Water (Prevention and Control of Pollution) Act, 1974 (6 of 1974), the Water (Prevention and Control of Pollution) Cess Act, 1977 (36 of 1977), the Forest (Conservation) Act, 1980 (69 of 1980), the Air (Prevention and Control of Pollution) Act, 1981 (14 of 1981), the Environment (Protection) Act, 1986 (29 of 1986), the Public Liability Insurance Act, 1991 (6 of 1991) and the Biological Diversity Act, 2002 (18 of 2003) and other Acts relating to environment shall have the meaning, respectively, assigned to them in those Acts. CHAPTER II ESTABLISHMENT OF THE TRIBUNAL **3. Establishment of Tribunal.—The Central Government shall, by notification, establish, with effect** from such date[1] as may be specified therein, a Tribunal to be known as the National Green Tribunal to exercise the jurisdiction, powers and authority conferred on such Tribunal by or under this Act. 1. 18th October, 2010, _vide notification No. S.O 2570(E), dated 18th October, 2010,_ _see Gazette of India,_ Extraordinary, Part II, sec. 3(ii). 4 ----- **4. Composition of Tribunal.—(1) The Tribunal shall consist of—** (a) a full time Chairperson; (b) not less than ten but subject to maximum of twenty full time Judicial Members as the Central Government may, from time to time, notify; (c) not less than ten but subject to maximum of twenty full time Expert Members, as the Central Government may, from time to time, notify. (2) The Chairperson of the Tribunal may, if considered necessary, invite any one or more person having specialised knowledge and experience in a particular case before the Tribunal to assist the Tribunal in that case. (3) The Central Government may, by notification, specify the ordinary place or places of sitting of the Tribunal, and the territorial jurisdiction falling under each such place of sitting. (4) The Central Government may, in consultation with the Chairperson of the Tribunal, make rules regulating generally the practices and procedure of the Tribunal including— (a) the rules as to the persons who shall be entitled to appear before the Tribunal; (b) the rules as to the procedure for hearing applications and appeals and other matters [including the circuit procedure for hearing at a place other than the ordinary place of its sitting falling within the jurisdiction referred to in sub-section (3)], pertaining to the applications and appeals; (c) the minimum number of Members who shall hear the applications and appeals in respect of any class or classes of applications and appeals: Provided that the number of Expert Members shall, in hearing an application or appeal, be equal to the number of Judicial Members hearing such application or appeal; (d) rules relating to transfer of cases by the Chairperson from one place of sitting (including the ordinary place of sitting) to other place of sitting. **5. Qualifications for appointment of Chairperson, Judicial Member and Expert Member.—(1)** A person shall not be qualified for appointment as the Chairperson or Judicial Member of the Tribunal unless he is, or has been, a Judge of the Supreme Court of India or Chief Justice of a High Court: Provided that a person who is or has been a Judge of the High Court shall also be qualified to be appointed as a Judicial Member. (2) A person shall not be qualified for appointment as an Expert Member, unless he,— (a) has a degree in Master of Science (in physical sciences or life sciences) with a Doctorate degree or Master of Engineering or Master of Technology and has an experience of fifteen years in the relevant field including five years practical experience in the field of environment and forests (including pollution control, hazardous substance management, environment impact assessment, climate change management, biological diversity management and forest conservation) in a reputed National level institution; or (b) has administrative experience of fifteen years including experience of five years in dealing with environmental matters in the Central or a State Government or in a reputed National or State level institution. (3) The Chairperson, Judicial Member and Expert Member of the Tribunal shall not hold any other office during their tenure as such. (4) The Chairperson and other Judicial and Expert Members shall not, for a period of two years from the date on which they cease to hold office, accept any employment in, or connected with the management or administration of, any person who has been a party to a proceeding before the Tribunal under this Act: Provided that nothing contained in this section shall apply to any employment under the Central Government or a State Government or local authority or in any statutory authority or any corporation 5 ----- established by or under any Central, State or Provincial Act or a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956). **6. Appointment of Chairperson, Judicial Member and Expert Member.—(1) Subject to the** provisions of section 5, the Chairperson, Judicial Members and Expert Members of the Tribunal shall be appointed by the Central Government. (2) The Chairperson shall be appointed by the Central Government in consultation with the Chief Justice of India. (3) The Judicial Members and Expert Members of the Tribunal shall be appointed on the recommendations of such Selection Committee and in such manner as may be prescribed. **7. Term of office and other conditions of service of Chairperson, Judicial Member and Expert** **Member.—The Chairperson, Judicial Member and Expert Member of the Tribunal shall hold office as** such for a term of five years from the date on which they enter upon their office, but shall not be eligible for re-appointment: Provided that in case a person, who is or has been a Judge of the Supreme Court, has been appointed as Chairperson or Judicial Member of the Tribunal, he shall not hold office after he has attained the age of seventy years: Provided further that in case a person, who is or has been the Chief Justice of a High Court, has been appointed as Chairperson or Judicial Member of the Tribunal, he shall not hold office after he has attained the age of sixty-seven years: Provided also that in case a person, who is or has been a Judge of a High Court, has been appointed as Judicial Member of the Tribunal, he shall not hold office after he has attained the age of sixty-seven years: Provided also that no Expert Member shall hold office after he has attained the age of sixty-five years. **8. Resignation.—The Chairperson, Judicial Member and Expert Member of the Tribunal may, by** notice in writing under their hand addressed to the Central Government, resign their office. **9. Salaries, allowances and other terms and conditions of service.—The salaries and allowances** payable to, and the other terms and conditions of service (including pension, gratuity and other retirement benefits) of, the Chairperson, Judicial Member and Expert Member of the Tribunal shall be such as may be prescribed: Provided that neither the salary and allowances nor the other terms and conditions of service of the Chairperson, Judicial Member and Expert Member shall be varied to their disadvantage after their appointment. **10. Removal and suspension of Chairperson, Judicial Member and Expert Member.—(1) The** Central Government may, in consultation with the Chief Justice of India, remove from office of the Chairperson or Judicial Member of the Tribunal, who,— (a) has been adjudged an insolvent; or (b) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or (c) has become physically or mentally incapable; or (d) has acquired such financial or other interest as is likely to affect prejudicially his functions; or (e) has so abused his position as to render his continuance in office prejudicial to the public interest. (2) The Chairperson or Judicial Member shall not be removed from his office except by an order made by the Central Government after an inquiry made by a Judge of the Supreme Court in which such Chairperson or Judicial Member has been informed of the charges against him and given a reasonable opportunity of being heard in respect of those charges. 6 ----- (3) The Central Government may suspend from office the Chairperson or Judicial Member in respect of whom a reference of conducting an inquiry has been made to the Judge of the Supreme Court under sub-section (2), until the Central Government passes an order on receipt of the report of inquiry made by the Judge of the Supreme Court on such reference. (4) The Central Government may, by rules, regulate the procedure for inquiry referred to in sub-section (2). (5) The Expert Member may be removed from his office by an order of the Central Government on the grounds specified in sub-section (1) and in accordance with the procedure as may be notified by the Central Government: Provided that the Expert Member shall not be removed unless he has been given an opportunity of being heard in the matter. 1[10A. **Qualifications, terms and conditions of service of Chairperson, Judicial Member and** **Expert Member** **.—** Notwithstanding anything contained in this Act, the qualifications, appointment, term of office, salaries and allowances, resignation, removal and other terms and conditions of service of the Chairperson, Judicial Member and Expert Member of the Tribunal appointed after the commencement of [2][the Tribunals Reforms Act, 2021, shall be governed by the provisions of Chapter II of the said Act]: Provided that the Chairperson, Judicial Member and Expert Member appointed before the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall continue to be governed by the provisions of this Act, and the rules made thereunder as if the provisions of section 184 of the Finance Act, 2017 had not come into force.] **11. To act as Chairperson of Tribunal or to discharge his functions in certain circumstances.—** In the event of the occurrence of any vacancy in the office of the Chairperson of the Tribunal, by reason of his death, resignation or otherwise, such Judicial Member of the Tribunal as the Central Government may, by notification, authorise in this behalf, shall act as the Chairperson until the date on which a new Chairperson is appointed in accordance with the provisions of this Act. **12. Staff of Tribunal.—(1) The Central Government shall determine the nature and categories of the** officers and other employees required to assist the Tribunal in the discharge of its functions. (2) The recruitment of the officers and other employees of the Tribunal shall be made by the Chairperson in such manner as may be prescribed. (3) The officers and other employees of the Tribunal shall discharge their functions under the general superintendence of the Chairperson. (4) The salaries and allowances and conditions of service of the officers and other employees of the Tribunal shall be such as may be prescribed. **13. Financial and administrative powers of Chairperson.—The Chairperson of the Tribunal shall** exercise such financial and administrative powers as may be vested in him under the rules made by the Central Government: Provided that the Chairperson may delegate such of his financial and administrative powers, as he may think fit, to any Judicial Member or Expert Member or officer of the Tribunal subject to the condition that the Member or such officer, while exercising such delegated power, continues to act under the direction, control and supervision of the Chairperson. CHAPTER III JURISDICTION, POWERS AND PROCEEDINGS OF THE TRIBUNAL **14. Tribunal to settle disputes.—(1) The Tribunal shall have the jurisdiction over all civil cases** where a substantial question relating to environment (including enforcement of any legal right relating to 1. Ins. by Act 7 of 2017, s. 182 (w.e.f. 26-5-2017). 2. Subs. by Act 33 of 2021, s. 27, for “Part XIV of Chapter VI of the Finance Act, 2017 (7 of 2017), shall be governed by the provisions of the section 184 of that Act” (w.e.f. 4-4-2021). 7 ----- environment), is involved and such question arises out of the implementation of the enactments specified in Schedule I. (2) The Tribunal shall hear the disputes arising from the questions referred to in sub-section (1) and settle such disputes and pass order thereon. (3) No application for adjudication of dispute under this section shall be entertained by the Tribunal unless it is made within a period of six months from the date on which the cause of action for such dispute first arose: Provided that the Tribunal may, if it is satisfied that the applicant was prevented by sufficient cause from filing the application within the said period, allow it to be filed within a further period not exceeding sixty days. **15. Relief, compensation and restitution.—(1) The Tribunal may, by an order, provide,—** (a) relief and compensation to the victims of pollution and other environmental damage arising under the enactments specified in the Schedule I (including accident occurring while handling any hazardous substance); (b) for restitution of property damaged; (c) for restitution of the environment for such area or areas, as the Tribunal may think fit. (2) The relief and compensation and restitution of property and environment referred to in clauses (a), (b) and (c) of sub-section (1) shall be in addition to the relief paid or payable under the Public Liability Insurance Act, 1991 (6 of 1991). (3) No application for grant of any compensation or relief or restitution of property or environment under this section shall be entertained by the Tribunal unless it is made within a period of five years from the date on which the cause for such compensation or relief first arose: Provided that the Tribunal may, if it is satisfied that the applicant was prevented by sufficient cause from filing the application within the said period, allow it to be filed within a further period not exceeding sixty days. (4) The Tribunal may, having regard to the damage to public health, property and environment, divide the compensation or relief payable under separate heads specified in Schedule II so as to provide compensation or relief to the claimants and for restitution of the damaged property or environment, as it may think fit. (5) Every claimant of the compensation or relief under this Act shall intimate to the Tribunal about the application filed to, or, as the case may be, compensation or relief received from, any other court or authority. **16. Tribunal to have appellate jurisdiction.—Any person aggrieved by,—** (a) an order or decision, made, on or after the commencement of the National Green Tribunal Act, 2010, by the appellate authority under section 28 of the Water (Prevention and Control of Pollution) Act, 1974 (6 of 1974); (b) an order passed, on or after the commencement of the National Green Tribunal Act, 2010, by the State Government under section 29 of the Water (Prevention and Control of Pollution) Act, 1974 (6 of 1974); (c) directions issued, on or after the commencement of the National Green Tribunal Act, 2010, by a Board, under section 33A of the Water (Prevention and Control of Pollution) Act, 1974 (6 of 1974); (d) an order or decision made, on or after the commencement of the National Green Tribunal Act, 2010, by the appellate authority under section 13 of the Water (Prevention and Control of Pollution) Cess Act, 1977 (36 of 1977); 8 ----- (e) an order or decision made, on or after the commencement of the National Green Tribunal Act, 2010, by the State Government or other authority under section 2 of the Forest (Conservation) Act, 1980 (69 of 1980); (f) an order or decision, made, on or after the commencement of the National Green Tribunal Act, 2010, by the Appellate Authority under section 31 of the Air (Prevention and Control of Pollution) Act, 1981 (14 of 1981); (g) any direction issued, on or after the commencement of the National Green Tribunal Act, 2010, under section 5 of the Environment (Protection) Act, 1986 (29 of 1986); (h) an order made, on or after the commencement of the National Green Tribunal Act, 2010, granting environmental clearance in the area in which any industries, operations or processes or class of industries, operations and processes shall not be carried out or shall be carried out subject to certain safeguards under the Environment (Protection) Act, 1986 (29 of 1986); (i) an order made, on or after the commencement of the National Green Tribunal Act, 2010, refusing to grant environmental clearance for carrying out any activity or operation or process under the Environment (Protection) Act, 1986 (29 of 1986); (j) any determination of benefit sharing or order made, on or after the commencement of the National Green Tribunal Act, 2010, by the National Biodiversity Authority or a State Biodiversity Board under the provisions of the Biological Diversity Act, 2002 (18 of 2003), may, within a period of thirty days from the date on which the order or decision or direction or determination is communicated to him, prefer an appeal to the Tribunal: Provided that the Tribunal may, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within the said period, allow it to be filed under this section within a further period not exceeding sixty days. **17. Liability to pay relief or compensation in certain cases.—-(1) Where death of, or injury to, any** person (other than a workman) or damage to any property or environment has resulted from an accident or the adverse impact of an activity or operation or process, under any enactment specified in Schedule I, the person responsible shall be liable to pay such relief or compensation for such death, injury or damage, under all or any of the heads specified in Schedule II, as may be determined by the Tribunal. (2) If the death, injury or damage caused by an accident or the adverse impact of an activity or operation or process under any enactment specified in Schedule I cannot be attributed to any single activity or operation or process but is the combined or resultant effect of several such activities, operations and processes, the Tribunal may, apportion the liability for relief or compensation amongst those responsible for such activities, operations and processes on an equitable basis. (3) The Tribunal shall, in case of an accident, apply the principle of no fault. **18. Application or appeal to Tribunal.—-(1) Each application under sections 14 and 15 or an** appeal under section 16 shall, be made to the Tribunal in such form, contain such particulars, and, be accompanied by such documents and such fees as may be prescribed. (2) Without prejudice to the provisions contained in section 16, an application for grant of relief or compensation or settlement of dispute may be made to the Tribunal by— (a) the person, who has sustained the injury; or (b) the owner of the property to which the damage has been caused; or (c) where death has resulted from the environmental damage, by all or any of the legal representatives of the deceased; or (d) any agent duly authorised by such person or owner of such property or all or any of the legal representatives of the deceased, as the case may be; or (e) any person aggrieved, including any representative body or organisation; or 9 ----- (f) the Central Government or a State Government or a Union territory Administration or the Central Pollution Control Board or a State Pollution Control Board or a Pollution Control Committee or a local authority, or any environmental authority constituted or established under the Environment (Protection) Act, 1986 (29 of 1986) or any other law for the time being in force: Provided that where all the legal representatives of the deceased have not joined in any such application for compensation or relief or settlement of dispute, the application shall be made on behalf of, or, for the benefit of all the legal representatives of the deceased and the legal representatives who have not so joined shall be impleaded as respondents to the application: Provided further that the person, the owner, the legal representative, agent, representative body or organisation shall not be entitled to make an application for grant of relief or compensation or settlement of dispute if such person, the owner, the legal representative, agent, representative body or organisation have preferred an appeal under section 16. (3) The application, or as the case may be, the appeal filed before the Tribunal under this Act shall be dealt with by it as expeditiously as possible and endeavour shall be made by it to dispose of the application, or, as the case may be, the appeal, finally within six months from the date of filing of the application, or as the case may be, the appeal, after providing the parties concerned an opportunity to be heard. **19. Procedure and powers of Tribunal.—-(1) The Tribunal shall not be bound by the procedure laid** down by the Code of Civil Procedure, 1908 (5 of 1908) but shall be guided by the principles of natural justice. (2) Subject to the provisions of this Act, the Tribunal shall have power to regulate its own procedure. (3) The Tribunal shall also not be bound by the rules of evidence contained in the Indian Evidence Act, 1872 (1 of 1872). (4) The Tribunal shall have, for the purposes of discharging its functions under this Act, the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit, in respect of the following matters, namely:— (a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of documents; (c) receiving evidence on affidavits; (d) subject to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872 (1 of 1872), requisitioning any public record or document or copy of such record or document from any office; (e) issuing commissions for the examination of witnesses or documents; (f) reviewing its decision; (g) dismissing an application for default or deciding it ex parte; (h) setting aside any order of dismissal of any application for default or any order passed by it _ex parte;_ (i) pass an interim order (including granting an injunction or stay) after providing the parties concerned an opportunity to be heard, on any application made or appeal filed under this Act; (j) pass an order requiring any person to cease and desist from committing or causing any violation of any enactment specified in Schedule I; (k) any other matter which may be prescribed. (5) All proceedings before the Tribunal shall be deemed to be the judicial proceedings within the meaning of sections 193, 219 and 228 for the purposes of section 196 of the Indian Penal Code (45 of 1860) and the Tribunal shall be deemed to be a civil court for the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). 10 ----- **20. Tribunal to apply certain principles.—The Tribunal shall, while passing any order or decision** or award, apply the principles of sustainable development, the precautionary principle and the polluter pays principle. **21. Decision to be taken by majority.—-The decision of the Tribunal by majority of Members shall** be binding: Provided that if there is a difference of opinion among the Members hearing an application or appeal, and the opinion is equally divided, the Chairperson shall hear (if he has not heard earlier such application or appeal) such application or appeal and decide: Provided further that where the Chairperson himself has heard such application or appeal along with other Members of the Tribunal, and if there is a difference of opinion among the Members in such cases and the opinion is equally devided, he shall refer the matter to other Members of the Tribunal who shall hear such application or appeal and decide. **22. Appeal to Supreme Court.—-Any person aggrieved by any award, decision or order of the** Tribunal, may, file an appeal to the Supreme Court, within ninety days from the date of communication of the award, decision or order of the Tribunal, to him, on any one or more of the grounds specified in section 100 of the Code of Civil Procedure, 1908 (5 of 1908): Provided that the Supreme Court may entertain any appeal after the expiry of ninety days, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal. **23. Cost.—-(1) While disposing of an application or an appeal under this Act, the Tribunal shall have** power to make such order as to costs, as it may consider necessary. (2) Where the Tribunal holds that a claim is not maintainable, or is false or vexatious, and such claim is disallowed, in whole or in part, the Tribunal may, if it so thinks fit, after recording its reasons for holding such claim to be false or vexatious, make an order to award costs, including lost benefits due to any interim injunction. **24. Deposit of amount payable for damage to environment.—-(1) Where any amount by way of** compensation or relief is ordered to be paid under any award or order made by the Tribunal on the ground of any damage to environment, that amount shall be remitted to the authority specified under sub-section (3) of section 7A of the Public Liability Insurance Act, 1991 (6 of 1991) for being credited to the Environmental Relief Fund established under that section. (2) The amount of compensation or relief credited to the Environmental Relief Fund under sub-section (1), may, notwithstanding anything contained in the Public Liability Insurance Act, 1991 (6 of 1991) be utilised by such persons or authority, in such manner and for such purposes relating to environment, as may be prescribed. **25. Execution of award or order or decision of Tribunal.—-(1) An award or order or decision of** the Tribunal under this Act shall be executable by the Tribunal as a decree of a civil court, and for this purpose, the Tribunal shall have all the powers of a civil court. (2) Notwithstanding anything contained in sub-section (1), the Tribunal may transmit any order or award made by it to a civil court having local jurisdiction and such civil court shall execute the order or award as if it were a decree made by that court. (3) Where the person responsible, for death of, or injury to any person or damage to any property and environment, against whom the award or order is made by the Tribunal, fails to make the payment or deposit the amount as directed by the Tribunal within the period so specified in the award or order, such amount, without prejudice to the filing of complaint for prosecution for an offence under this Act or any other law for the time being in force, shall be recoverable from the aforesaid person as arrears of land revenue or of public demand. 11 ----- CHAPTER IV PENALTY **26. Penalty for failure to comply with orders of Tribunal.—-(1) Whoever, fails to comply with** any order or award or decision of the Tribunal under this Act, he shall be punishable with imprisonment for a term which may extend to three years, or with fine which may extend to ten crore rupees, or with both and in case the failure or contravention continues, with additional fine which may extend to twentyfive thousand rupees for every day during which such failure or contravention continues after conviction for the first such failure or contravention: Provided that in case a company fails to comply with any order or award or a decision of the Tribunal under this Act, such company shall be punishable with fine which may extend to twenty-five crore rupees, and in case the failure or contravention continues, with additional fine which may extend to one lakh rupees for every day during which such failure or contravention continues after conviction for the first such failure or contravention. (2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974) every offence under this Act shall be deemed to be non-cognizable within the meaning of the said Code. **27. Offences by companies.—-(1) Where any offence under this Act has been committed by a** company, every person who, at the time the offence was committed, was directly in charge of, and was responsible to the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by the company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section,—_ (a) "company" means any body corporate and includes a firm or other association of individuals; and (b) "director" in relation to a firm means a partner in the firm. **28. Offences by Government Department.—-(1) Where any Department of the Government fails to** comply with any order or award or decision of the Tribunal under this Act, the Head of the Department shall be deemed to be guilty of such failure and shall be liable to be proceeded against for having committed an offence under this Act and punished accordingly: Provided that nothing contained in this section shall render such Head of the Department liable to any punishment if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a Department of the Government and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of any officer, other than the Head of the Department, such officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. 12 ----- CHAPTER V MISCELLANEOUS **29. Bar of jurisdiction.—-(1) With effect from the date of establishment of the Tribunal under this** Act, no civil court shall have jurisdiction to entertain any appeal in respect of any matter, which the Tribunal is empowered to determine under its appellate jurisdiction. (2) No civil court shall have jurisdiction to settle dispute or entertain any question relating to any claim for granting any relief or compensation or restitution of property damaged or environment damaged which may be adjudicated upon by the Tribunal, and no injunction in respect of any action taken or to be taken by or before the Tribunal in respect of the settlement of such dispute or any such claim for granting any relief or compensation or restitution of property damaged or environment damaged shall be granted by the civil court. **30. Cognizance of offences.—-(1) No court shall take cognizance of any offence under this Act** except on a complaint made by— (a) the Central Government or any authority or officer authorised in this behalf by that Government; or (b) any person who has given notice of not less than sixty days in such manner as may be prescribed, of the alleged offence and of his intention to make a complaint, to the Central Government or the authority or officer authorised as aforesaid. (2) No court inferior to that of a Metropolitan Magistrate or, a Judicial Magistrate of the first class shall try any offence punishable under this Act. **31. Members and staff of Tribunal to be public servants.—-The Chairperson, the Judicial and** Expert Members, officers and other employees of the Tribunal shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **32. Protection of action taken in good faith.—-(1) No suit or other legal proceeding shall lie against** the employees of the Central Government or a State Government or any statutory authority, for anything which is in good faith done or intended to be done in pursuance of this Act or any rule or order made thereunder. (2) No suit, prosecution or other legal proceeding shall lie against the Chairperson or, Judicial Member or Expert Member of the Tribunal or any other person authorised by the Chairperson or Judicial Member or the Expert Member for anything which is in good faith done or intended to be done in pursuance of this Act or any rule or order made thereunder. **33. Act to have overriding effect.—The provisions of this Act, shall have effect notwithstanding** anything inconsistent contained in any other law for the time being in force or in any instrument having effect by virtue of any law other than this Act. **34. Power to amend Schedule I.—(1) The Central Government may, by notification, amend the** Schedule I by including therein any other Act, enacted by Parliament having regard to the objective of environmental protection and conservation of natural resources, or omitting therefrom any Act already specified therein and on the date of publication of such notification, such Act shall be deemed to be included in or, as the case may be, omitted from the Schedule I. (2) A copy of every notification proposed to be issued under sub-section (1), shall be laid in draft before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in disapproving the issue of the notification or both Houses agree in making any modification in the notification, the notification shall not be issued or, as the case may be, shall be issued only in such modified form as may be agreed upon by both the Houses. **35. Power to make rules.—-(1) The Central Government may, by notification in the Official** Gazette, make rules for carrying out the provisions of this Act. 13 ----- (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) rules as to the persons who shall be entitled to appear before the Tribunal under clause (a) of sub-section (4) of section 4; (b) the procedure for hearing applications and appeals and other matters pertaining to the applications and appeals under clause (b) of sub-section (4) of section 4; (c) the minimum number of members who shall hear the applications and appeals in respect of any class or classes of applications and appeals under clause (c) of sub-section (4) of section 4; (d) the transfer of cases by the Chairperson from one place of sitting (including the ordinary place of sitting) to other place of sitting; (e) the selection committee and the manner of appointment of the Judicial Member and Expert Member of the Tribunal under sub-section (3) of section 6; (f) the salaries and allowances payable to, and other terms and conditions of service (including pension, gratuity and other retirement benefits) of, the Chairperson, Judicial Member and Expert Member of the Tribunal under section 9; (g) the procedure for inquiry of the charges against the Chairperson or Judicial Member of the Tribunal under sub-section (4) of section 10; (h) the recruitment of officers and other employees of the Tribunal under sub-section (2) of section 12; and the salaries and allowances and other conditions of service of the officers and other employees of the Tribunal under sub-section (4) of that section; (i) the financial and administrative powers to be exercised by the Chairperson of the Tribunal under section 13; (j) the form of application or appeal, the particulars which it shall contain and the documents to be accompanied by and the fees payable under sub-section (1) of section 18; (k) any such matter in respect of which the Tribunal shall have powers of a civil court under clause (k) of sub-section (4) of section 19; (l) the manner and the purposes for which the amount of compensation or relief credited to the Environment Relief Fund shall be utilised under sub-section (2) of section 24; (m) the manner of giving notice to make a complaint under clause (b) of sub-section (1) of section 30; (n) any other matter which is required to be, or may be, specified by rules or in respect of which provision is to be made by rules. (3) Every rule made under this Act by the Central Government shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **36. Amendment of certain enactments.—-The enactments specified in the Schedule III to this Act** shall be amended in the manner specified therein and such amendments shall take effect on the date of establishment of the Tribunal. **37. Power to remove difficulties.—-(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government, may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act as may appear to it to be necessary for removing the difficulty: 14 ----- Provided that no such order shall be made after the expiry of a period of two years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **38. Repeal and savings.—-(1) The National Environment Tribunal Act, 1995 (27 of 1995) and the** National Environment Appellate Authority Act, 1997 (22 of 1997) are hereby repealed (hereinafter referred to as the repealed Act). (2) Notwithstanding such repeal, anything done or any action taken under the said Acts shall be deemed to have been done or taken under the corresponding provisions of this Act. (3) The National Environment Appellate Authority established under sub-section (1) of section 3 of the National Environment Appellate Authority Act, 1997 (22 of 1997), shall, on the establishment of the National Green Tribunal under the National Green Tribunal Act, 2010, stand dissolved. (4) On the dissolution of the National Environment Appellate Authority established under sub-section (1) of section 3 of the National Environment Appellate Authority Act, 1997 (22 of 1997), the persons appointed as the Chairperson, Vice-chairperson and every other person appointed as Member of the said National Environment Appellate Authority and holding office as such immediately before the establishment of the National Green Tribunal under the National Green Tribunal Act, 2010, shall vacate their respective offices and no such Chairperson, Vice-chairperson and every other person appointed as Member shall be entitled to claim any compensation for the premature termination of the term of his office or of any contract of service. (5) All cases pending before the National Environment Appellate Authority established under sub-section (1) of section 3 of the National Environment Appellate Authority Act, 1997 (22 of 1997) on or before the establishment of the National Green Tribunal under the National Green Tribunal Act, 2010, shall, on such establishment, stand transferred to the said National Green Tribunal and the National Green Tribunal shall dispose of such cases as if they were cases filed under that Act. (6) The officers or other employees who have been, immediately before the dissolution of the National Environment Appellate Authority appointed on deputation basis to the National Environment Appellate Authority, shall, on such dissolution, stand reverted to their parent cadre, Ministry or Department, as the case may be. (7) On the dissolution of the National Environment Appellate Authority, the officers and other employees appointed on contract basis under the National Environment Appellate Authority and holding office as such immediately before such dissolution, shall vacate their respective offices and such officers and other employees shall be entitled to claim compensation for three months' pay and allowances or pay and allowances for the remaining period of service, whichever is less, for the premature termination of term of their office under their contract of service. (8) The mention of the particular matters referred to in sub-sections (2) to (7) shall not be held to prejudice or affect the general application of section 6 of the General Clauses Act, 1897 (10 of 1897) with regard to the effect of repeal. 15 ----- SCHEDULE I [See sections 14(1), 15(1), 17(1)(a), 17(2), 19(4) (j) and 34(1)] 1. The Water (Prevention and Control of Pollution) Act, 1974; 2. The Water (Prevention and Control of Pollution) Cess Act, 1977; 3. The Forest (Conservation) Act, 1980; 4. The Air (Prevention and Control of Pollution) Act, 1981; 5. The Environment (Protection) Act, 1986; 6. The Public Liability Insurance Act, 1991; 7. The Biological Diversity Act, 2002. 16 ----- SCHEDULE II [See sections 15(4) and 17(1)] HEADS UNDER WHICH COMPENSATION OR RELIEF FOR DAMAGE MAY BE CLAIMED (a) Death; (b) Permanent, temporary, total or partial disability or other injury or sickness; (c) Loss of wages due to total or partial disability or permanent or temporary disability; (d) Medical expenses incurred for treatment of injuries or sickness; (e) Damages to private property; (f) Expenses incurred by the Government or any local authority in providing relief, aid and rehabilitation to the affected persons; (g) Expenses incurred by the Government for any administrative or legal action or to cope with any harm or damage, including compensation for environmental degradation and restoration of the quality of environment; (h) Loss to the Government or local authority arising out of, or connected with, the activity causing any damage; (i) Claims on account of any harm, damage or destruction to the fauna including milch and draught animals and aquatic fauna; (j) Claims on account of any harm, damage or destruction to flora including aquatic flora, crops, vegetables, trees and orchards; (k) Claims including cost of restoration on account of any harm or damage to environment including pollution of soil, air, water, land and eco-systems; (l) Loss and destruction of any property other than private property; (m) Loss of business or employment or both; (n) Any other claim arising out of, or connected with, any activity of handling of hazardous substance. 17 ----- SCHEDULE III (See section 36) AMENDMENT TO CERTAIN ENACTMENTS PART I AMENDMENT TO THE WATER (PREVENTION AND CONTROL OF POLLUTION) ACT, 1974 (6 OF 1974) Insertion of new section 33B.—After section 33A, the following section shall be inserted, namely:— Appeal to National Green Tribunal.—"33B. Any person aggrieved by,— (a) an order or decision of the appellate authority under section 28, made on or after the commencement of the National Green Tribunal Act, 2010; or (b) an order passed by the State Government under section 29, on or after the commencement of the National Green Tribunal Act, 2010; or (c) directions issued under section 33A by a Board, on or after the commencement of the National Green Tribunal Act, 2010, may file an appeal to the National Green Tribunal established under section 3 of the National Green Tribunal Act, 2010, in accordance with the provisions of that Act.". PART II AMENDMENTS TO THE WATER (PREVENTION AND CONTROL OF POLLUTION) CESS ACT, 1977 (36 OF 1977) 1. Amendment of section 13.—In section 13, in sub-section (4), for the words "shall be final", the words, figures and letters "shall, if no appeal has been filed under section 13A, be final" shall be substituted. 2. Insertion of new section 13A.—After section 13, the following section shall be inserted, namely:— "13A. Appeal to National Green Tribunal.— Any person aggrieved, by an order or decision of the appellate authority made under section 13, on or after the commencement of the National Green Tribunal Act, 2010, may file an appeal to the National Green Tribunal established under section 3 of the National Green Tribunal Act, 2010, in accordance with the provisions of that Act.". PART III AMENDMENT TO THE FOREST (CONSERVATION) ACT, 1980 (69 OF 1980) Insertion of new section 2A.—After section 2, the following section shall be inserted, namely:— "2A. Appeal to National Green Tribunal.—Any person aggrieved, by an order or decision of the State Government or other authority made under section 2, on or after the commencement of the National Green Tribunal Act, 2010, may file an appeal to the National Green Tribunal established under section 3 of the National Green Tribunal Act, 2010, in accordance with the provisions of that Act.". PART IV AMENDMENT TO THE AIR (PREVENTION AND CONTROL OF POLLUTION) ACT, 1981 (14 OF 1981) Insertion of new section 31B.—After section 31A, the following section shall be inserted, namely:— "31B. Appeal to National Green Tribunal.—Any person aggrieved by an order or decision of the Appellate Authority under section 31, made on or after the commencement of the National Green 18 ----- Tribunal Act, 2010, may file an appeal to the National Green Tribunal established under section 3 of the National Green Tribunal Act, 2010, in accordance with the provisions of that Act.". PART V AMENDMENT TO THE ENVIRONMENT (PROTECTION) ACT, 1986 (29 OF 1986) Insertion of new section 5A.—After section 5, the following section shall be inserted, namely:— "5A. Appeal to National Green Tribunal.—Any person aggrieved by any directions issued under section 5, on or after the commencement of the National Green Tribunal Act, 2010, may file an appeal to the National Green Tribunal established under section 3 of the National Green Tribunal Act, 2010, in accordance with the provisions of that Act.". PART VI AMENDMENTS TO THE BIOLOGICAL DIVERSITY ACT, 2002 (18 OF 2003) 1. Amendment of section 52.—In section 52, after the proviso, the following provisos shall be inserted, namely:— "Provided further that nothing contained in this section shall apply on and from the commencement of the National Green Tribunal Act, 2010: Provided also that any appeal pending before the High Court, before the commencement of the National Green Tribunal Act, 2010, shall continue to be heard and disposed of by the High Court as if the National Green Tribunal had not been established under section 3 of the National Green Tribunal Act, 2010.". 2. Insertion of new section 52A.—After section 52, the following section shall be inserted, namely:— "52A. Appeal to National Green Tribunal.—Any person aggrieved by any determination of benefit sharing or order of the National Biodiversity Authority or a State Biodiversity Board under this Act, on or after the commencement of the National Green Tribunal Act, 2010, may file an appeal to the National Green Tribunal established under section 3 of the National Green Tribunal Act, 2010, in accordance with the provisions of that Act.". 19 -----

18-Aug-2010

23

The Clinical Establishments (Registration and Regulation) Act, 2010

https://www.indiacode.nic.in/bitstream/123456789/2048/1/A2010-23.pdf

central

# THE CLINICAL ESTABLISHMENTS (REGISTRATION AND REGULATION) ACT, 2010 ____________________ ARRANGEMENT OF SECTIONS ________________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, application and commencement. 2. Definitions. CHAPTER II THE NATIONAL COUNCIL FOR CLINICAL ESTABLISHMENTS 3. Establishment of National Council. 4. Disqualifications for appointment as member. 5. Functions of National Council. 6. Power to seek advice or assistance. 7. National Council to follow consultative process. CHAPTER III REGISTRATION AND STANDARDS FOR CLINICAL ESTABLISHMENTS 8. State Council of clinical establishments. 9. Providing information to National Council. 10. Authority for registration. 11. Registration for clinical establishments. 12. Condition for registration. 13. Classification of clinical establishments. CHAPTER IV PROCEDURE FOR REGISTRATION 14. Application for provisional certificate of registration. 15. Provisional certificate. 16. No inquiry prior to provisional registration. 17. Validity of provisional registration. 18. Display of certificate of registration. 19. Duplicate certificate. 20. Certificate to be non-transferable. 21. Publication of expiry of registration. 22. Renewal of registration. 23. Time limit for provisional registration. 1 ----- SECTIONS 24. Application for permanent registration. 25. Verification of application. 26. Display of information for filing objections. 27. Communication of objections. 28. Standards for permanent registration. 29. Allowing or disallowing of registration. 30. Certificate of permanent registration. 31. Fresh application for permanent registration. 32. Cancellation of registration. 33. Inspection of registered clinical establishments. 34. Power to enter. 35. Levy of fee by State Government Appeal. 36. Appeal. CHAPTER V REGISTER OF CLINICAL ESTABLISHMENTS 37. Register of clinical establishments. 38. Maintenance of State Register of clinical establishments. 39. Maintenance of National Register of clinical establishments. CHAPTER VI PENALTIES 40. Penalty. 41. Monetary penalty for non-registration. 42. Disobedience of direction, obstruction and refusal of information. 43. Penalty for minor deficiencies. 44. Contravention by companies. 45. Offences by Government Departments. 46. Recovery of fine. CHAPTER VII MISCELLANEOUS 47. Protection of action taken in good faith. 48. Furnishing of returns, etc. 49. Power to give directions. 50. Employees of the authority, etc., to be public servants. 51. Power to remove difficulties. 52. Power of Central Government to make rules. 53. Laying of rules. 54. Power of State Government to make rules. 55. Laying of rules. 56. Savings. THE SCHEDULE. 2 ----- # THE CLINICAL ESTABLISHMENTS (REGISTRATION AND REGULATION) ACT, 2010 ACT NO. 23 OF 2010 [18th August, 2010.] # An Act to provide for the registration and regulation of clinical establishments in the country and for matters connected therewith or incidental thereto. WHEREAS, it is considered expedient to provide for the registration and regulation of clinical establishments with a view to prescribe minimum standards of facilities and services which may be provided by them so that mandate of article 47 of the Constitution for improvement in public health may be achieved; ANDWHEREAS, Parliament has no power to make laws for the States with respect to any of the matters aforesaid except as provided in articles 249 and 250 of the Constitution; ANDWHEREAS, in pursuance of clause (1) of article 252 of the Constitution, resolutions have been passed by all the Houses of the Legislatures of the States of Arunachal Pradesh, Himachal Pradesh, Mizoram and Sikkim to the effect that the matters aforesaid should be regulated in those States by Parliament by law; BE it enacted by Parliament in the Sixty-first Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, application and commencement.—(1) This Act may be called the Clinical** Establishments (Registration and Regulation) Act, 2010. (2) It applies, in the first instance, to the whole of the States of Arunachal Pradesh, Himachal Pradesh, Mizoram and Sikkim and the Union territories; and it shall apply to such other State which adopts this Act by resolution passed in that behalf under clause (1) of article 252 of the Constitution. (3) It shall come into force at once in the States of Arunachal Pradesh, Himachal Pradesh, Mizoram and Sikkim and the Union territories, on such date as the Central Government may, by notification, appoint and in any other State which adopts this Act under clause (1) of article 252 of the Constitution, on the date of such adoption; and any reference in this Act to the commencement of this Act shall, in relation to any State or Union territory, mean the date on which this Act comes into force in such State or Union territory: Provided that different dates may be appointed for different categories of clinical establishments and for different recognised systems of medicine. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “authority” means the district registering authority set-up under section 10; (b) “certificate” means certificate of registration issued under section 30; 3 ----- (c) “clinical establishment” means— (i) a hospital, maternity home, nursing home, dispensary, clinic, sanatorium or an institution by whatever name called that offers services, facilities requiring diagnosis, treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicine established and administered or maintained by any person or body of persons, whether incorporated or not; or (ii) a place established as an independent entity or part of an establishment referred to in sub-clause (i), in connection with the diagnosis or treatment of diseases where pathological, bacteriological, genetic, radiological, chemical, biological investigations or other diagnostic or investigative services with the aid of laboratory or other medical equipment, are usually carried on, established and administered or maintained by any person or body of persons, whether incorporated or not, and shall include a clinical establishment owned, controlled or managed by— (a) the Government or a department of the Government; (b) a trust, whether public or private; (c) a corporation (including a society) registered under a Central, Provincial or State Act, whether or not owned by the Government; (d) a local authority; and (e) a single doctor, but does not include the clinical establishments owned, controlled or managed by the Armed Forces. _Explanation.—For the purpose of this clause “Armed Forces” means the forces constituted under the_ Army Act, 1950 (46 of 1950), the Air Force Act, 1950 (45 of 1950) and the Navy Act, 1957 (62 of 1957); (d) “emergency medical condition” means a medical condition manifesting itself by acute symptoms of sufficient severity (including severe pain) of such a nature that the absence of immediate medical attention could reasonably be expected to result in— (i) placing the health of the individual or, with respect to a pregnant women, the health of the woman or her unborn child, in serious jeopardy; or (ii) serious impairment to bodily functions; or (iii) serious dysfunction of any organ or part of a body; (e) “National Council” means the National Council for clinical establishments established under section 3; (f) “notification” means a notification published in the Official Gazette; (g) “prescribed” means prescribed by rules made under this Act by the Central Government or, as the case may be, the State Government; (h) “recognised system of medicine” means Allopathy, Yoga, Naturopathy, Ayurveda, Homoeopathy, Siddha and Unani System of medicines or any other system of medicine as may be recognised by the Central Government; (i) “register” means the register maintained by the authority, State Government and the Central Government under sections 37, 38 and 39 respectively of this Act containing the number of clinical establishments registered; (j) “registration” means to register under section 11 and the expression registration or registered shall be construed accordingly; 4 ----- (k) “rules” means rules made under this Act; (l) “Schedule” means the Schedule appended to this Act; (m) “standards” means the conditions that the Central Government may prescribe under section 12, for the registration of clinical establishments; (n) “State Government”, in relation to a Union territory, means the Administrator thereof appointed under article 239 of the Constitution; and (o) “to stabilise (with its grammatical variations and cognate expressions)” means, with respect to an emergency medical condition specified in clause (d), to provide such medical treatment of the condition as may be necessary to assure, within reasonable medical probability, that no material deterioration of the condition is likely to result from or occur during the transfer of the individual from a clinical establishment. CHAPTER II THE NATIONAL COUNCIL FOR CLINICAL ESTABLISHMENTS **3. Establishment of National Council.—(1) With effect from such date as the Central Government** may, by notification appoint in this behalf, there shall be established for the purposes of this Act, a Council to be called the National Council for clinical establishments. (2) The National Council shall consist of— (a) Director-General of Health Service, Ministry of Health and Family Welfare, ex officio, who shall be the Chairperson; (b) four representatives out of which one each to be elected by the— (i) Dental Council of India constituted under section 3 of the Dentists Act, 1948 (16 of 1948); (ii) Medical Council of India constituted under section 3 of the Indian Medical Council Act, 1956 (102 of 1956); (iii) Nursing Council of India constituted under section 3 of the Indian Nursing Council Act, 1947 (48 of 1947); (iv) Pharmacy Council of India constituted under section 3 of the Pharmacy Act, 1948 (8 of 1948); (c) three representatives to be elected by the Central Council of Indian Medicine representing the Ayurveda, Siddha and Unani systems of medicine constituted under section 3 of the Indian Medicine Central Council Act, 1970 (48 of 1970); (d) one representative to be elected by the Central Council of Homoeopathy constituted under section 3 of the Homoeopathy Central Council Act, 1973 (59 of 1973); (e) one representative to be elected by the Central Council of the Indian Medical Association; (f) one representative of Bureau of the Indian Sandards constituted under section 3 of the Bureau of Indian Standards Act, 1986 (63 of 1986); (g) two representatives from the Zonal Council set-up under section 15 of the States Reorganisation Act, 1956 (37 of 1956); (h) two representatives from the North-Eastern Council set-up under section 3 of the North-Eastern Council Act, 1971 (84 of 1971); (i) one representative from the line of paramedical systems excluding systems that have been given representation under clause (b); 5 ----- (j) two representatives from National Level Consumer Group to be nominated by the Central Government; (k) one representative from the Associations of Indian Systems of Medicines relating to Ayurveda, Siddha and Unani to be nominated by the Central Government; (l) the Secretary-General of the Quality Council of India, ex officio. (3) The nominated members of the National Council shall hold office for three years but shall be eligible for re-nomination for maximum of one more term of three years. (4) The elected members of the National Council shall hold office for three years, but shall be eligible for re-election: Provided that the person nominated or elected, as the case may be, shall hold office for such period till he holds appointment of the office by virtue of which he was nominated or elected to the council. (5) The members of the National Council shall be entitled for such allowances as may be prescribed by the Central Government. (6) The National Council may, subject to the previous approval of the Central Government, make bye-laws fixing a quorum and regulating its own procedure and the conduct of all business to be transacted by it. (7) The National Council shall meet at least once in three months. (8) The National Council may constitute sub-committees and may appoint to such sub-committee, as it deems fit, persons, who are not members of the National Council, for such period, not exceeding two years, for the consideration of particular matters. (9) The functions of the National Council may be exercised notwithstanding any vacancy therein. (10) The Central Government shall appoint such person to be the Secretary of the National Council as the Central Government may prescribe, and may provide the National Council with such other secretarial and other staff as the Central Government considers necessary. **4. Disqualifications for appointment as member.—A person shall be disqualified for being** appointed as a member of the National Council if he— (a) has been convicted and sentenced to imprisonment for an offence which, in the opinion of the Central Government, involves moral turpitude; or (b) is an undischarged insolvent; or (c) is of unsound mind and stands so declared by a competent court; or (d) has been removed or dismissed from the service of the Government or a Corporation owned or controlled by the Government; or (e) has, in the opinion of the Central Government, such financial or other interest in the Council as is likely to affect prejudicially the discharge by him of his functions as a member. **5. Functions of National Council.—The National Council shall—** _(a) compile and publish a National Register of clinical establishments within two years from the_ date of the commencement of this Act; (b) classify the clinical establishments into different categories; (c) develop the minimum standards and their periodic review; 6 ----- (d) determine within a period of two years from its establishment, the first set of standards for ensuring proper healthcare by the clinical establishments; (e) collect the statistics in respect of clinical establishments; (f) perform any other function determined by the Central Government from time to time. **6. Power to seek advice or assistance.—The National Council may associate with itself any person** or body whose assistance or advice it may desire in carrying out any of the provisions of this Act. **7. National Council to follow consultative process.—The National Council shall follow a** consultative process for determining the standards and for classification of clinical establishments in accordance with such procedure as may be prescribed. CHAPTER III REGISTRATION AND STANDARDS FOR CLINICAL ESTABLISHMENTS **8. State Council of clinical establishments.—(1) Every State Government shall by notification** constitute a State Council for clinical establishments or the Union territory Council for clinical establishments, as the case may be. (2) The State Council or the Union territory Council, as the case may be, shall consist of the following members, namely:— (a) Secretary, Health—ex officio, who shall be the Chairman; (b) Director of Health Services—ex officio member-secretary; (c) Directors of different streams of Indian Systems of Medicine—ex officio members; (d) one representative each to be elected by the executive committee of— (i) State Medical Council of India; (ii) State Dental Council of India; (iii) State Nursing Council of India; (iv) State Pharmacy Council of India; (e) three representatives to be elected by the Executive of the State Council or the Union territory Council, as the case may be, of Indian Medicine representing the Ayurveda, Siddha and Unani systems of medicine; (f) one representative to be elected by the State Council of the Indian Medical Association; (g) one representative from the line of paramedical systems; (h) two representatives from State level consumer groups or reputed non-Governmental organisations working in the field of health. (3) The nominated member of the State Council or the Union territory Council, as the case may be, shall hold office for a term of three years, but shall be eligible for re-nomination for maximum of one more term of three years. (4) The elected members of the State Council or the Union territory Council, as the case may be, shall hold office for three years, but shall be eligible for re-election: Provided that the person nominated or elected, as the case may be, shall hold office for so long as he holds the appointment of the office by virtue of which he was nominated or elected to the State Council or the Union territory Council, as the case may be. 7 ----- (5) The State Council or the Union territory Council shall perform the following functions, namely:— (a) compiling and updating the State Registers of clinical establishment; (b) sending monthly returns for updating the National Register; (c) representing the State in the National Council; (d) hearing of appeals against the orders of the authority; and (e) publication on annual basis a report on the state of implementation of standards within their respective States. **9. Providing information to National Council.—It shall be the responsibility of the State Council** for clinical establishments to compile and update the State Register of clinical establishments of the State and further to send monthly returns in digital format for updating the National Register. **10. Authority for registration.—(1) The State Government shall, by notification, set-up an authority** to be called the district registering authority for each district for registration of clinical establishments, with the following members, namely:— (a) District Collector— Chairperson; (b) District Health Officer—Convenor; (c) three members with such qualifications and on such terms and conditions as may be prescribed by the Central Government. (2) Notwithstanding anything contained in sub-section (1), for the purposes of provisional registration of clinical establishments under section 14, the District Health Officer or the Chief Medical Officer (by whatever name called) shall exercise the powers of the authority as per procedure that may be prescribed. **11. Registration for clinical establishments.—No person shall run a clinical establishment unless it** has been duly registered in accordance with the provisions of this Act. **12. Condition for registration.—(1) For registration and continuation, every clinical establishment** shall fulfil the following conditions, namely:— (i) the minimum standards of facilities and services as may be prescribed; (ii) the minimum requirement of personnel as may be prescribed; (iii) provisions for maintenance of records and reporting as may be prescribed; (iv) such other conditions as may be prescribed. (2) The clinical establishment shall undertake to provide within the staff and facilities available, such medical examination and treatment as may be required to stabilise the emergency medical condition of any individual who comes or is brought to such clinical establishment. **13. Classification of clinical establishments.—(1) Clinical establishment of different systems shall** be classified into such categories, as may be prescribed by the Central Government, from time to time. (2) Different standards may be prescribed for classification of different categories referred to in sub-section (1): Provided that in prescribing the standards for clinical establishments, the Central Government shall have regard to the local conditions. 8 ----- CHAPTER IV PROCEDURE FOR REGISTRATION **14. Application for provisional certificate of registration.—(1) For the purposes of registration of** the clinical establishment under section 10, an application in the prescribed proforma along with the prescribed fee shall be made to the authority. (2) The application shall be filed in person or by post or online. (3) The application shall be made in such form and shall be accompanied by such details as may be prescribed under this Act or rules made thereunder. (4) If any clinical establishment is in existence at the time of the commencement of this Act, an application for its registration shall be made within one year from the date of the commencement of this Act and a clinical establishment which comes into existence after commencement of this Act, shall apply for permanent registration within a period of six months from the date of its establishment. (5) If any clinical establishment is already registered under any existing law requiring registration of such establishments, even then it shall apply for registration as referred to in sub-section (1). **15. Provisional certificate.—The authority shall, within a period of ten days from the date of receipt** of such application, grant to the applicant a certificate of provisional registration in such form and containing such particulars and such information, as may be prescribed. **16. No inquiry prior to provisional registration.—(1) The authority shall not conduct any inquiry** prior to the grant of provisional registration. (2) Notwithstanding the grant of the provisional certificate of registration, the authority shall, within a period of forty-five days from the grant of provisional registration, cause to be published in such manner, as may be prescribed, all particulars of the clinical establishment so registered provisionally. **17. Validity of provisional registration.—Subject to the provisions of section 23, every provisional** registration shall be valid to the last day of the twelfth month from the date of issue of the certificate of registration and such registration shall be renewable. **18. Display of certificate of registration.—The certificate shall be kept affixed in a conspicuous** place in the clinical establishment in such manner so as to be visible to every one visiting such establishment. **19. Duplicate certificate.—In case the certificate is lost, destroyed, mutilated or damaged, the** authority shall issue a duplicate certificate on the request of the clinical establishment and on the payment of such fees as may be prescribed. **20. Certificate to be non-transferable.—(1) The certificate of registration shall be non-transferable.** (2) In the event of change of ownership or management, the clinical establishment shall inform the authority of such change in such manner as may be prescribed. (3) In the event of change of category, or location, or on ceasing to function as a clinical establishment, the certificate of registration in respect of such clinical establishment shall be surrendered to the authority and the clinical establishment shall apply afresh for grant of certificate of registration. **21. Publication of expiry of registration.—The authority shall cause to be published within such** time and in such manner, as may be prescribed, the names of clinical establishments whose registration has expired. **22. Renewal of registration.—The application for renewal of registration shall be made thirty days** before the expiry of the validity of the certificate of provisional registration and, in case the application 9 ----- for renewal is made after the expiry of the provisional registration, the authority shall allow renewal of registration on payment of such enhanced fees, as may be prescribed. **23. Time limit for provisional registration.—Where the clinical establishments in respect of which** standards have been notified by the Central Government, provisional registration shall not be granted or renewed beyond,— (i) the period of two years from the date of notification of the standards in case of clinical establishments which came into existence before the commencement of this Act; (ii) the period of two years from the date of notification of the standards for clinical establishments which come into existence after the commencement of this Act but before the notification of the standards; and _(iii) the period of six months from the date of notification of standards for clinical establishments_ which come into existence after standards have been notified. **24. Application for permanent registration.—Application for permanent registration by a clinical** establishment shall be made to the authority in such form and be accompanied by such fees, as may be prescribed. **25. Verification of application.—The clinical establishment shall submit evidence of having** complied with the prescribed minimum standards in such manner, as may be prescribed. **26. Display of information for filing objections.—As soon as the clincial establishment submits the** required evidence of having complied with the prescribed minimum standards, the authority shall cause to be displayed for information of the public at large and for filing objections, if any, in such manner, as may be prescribed, all evidence submitted by the clinical establishment of having complied with the prescribed minimum standards for a period of thirty days before processing for grant of permanent registration. **27. Communication of objections.—If objections are received within the period referred to in the** preceding section, such objections shall be communicated to the clinical establishment for response within a period of forty-five days. **28. Standards for permanent registration.—Permanent registration shall be granted only when a** clinical establishment fulfils the prescribed standards for registration by the Central Government. **29. Allowing or disallowing of registration.—The authority shall pass an order immediately after** the expiry of the prescribed period and within the next thirty days thereafter either— (a) allowing the application for permanent registration; or (b) disallowing the application: Provided that the authority shall record its reasons, if it disallows an application, for permanent registration. **30. Certificate of permanent registration.—(1) The authority shall, if it, allows an application of** the clinical establishment, issue a certificate of permanent registration in such form and containing such particulars, as may be prescribed. (2) The certificate shall be valid for a period of five years from the date of issue. (3) For the purposes of sub-section (1), the provisions of sections 18, 19, 20 and 21 shall also apply. (4) The applications for renewal of permanent registration shall be made within six months before the expiry of the validity of the certificate of permanent registration and, in case the application of renewal is not submitted within the stipulated period, the authority may allow renewal of registration on payment of such enhanced fees and penalties as may be prescribed. 10 ----- **31. Fresh application for permanent registration.—The disallowing of an application for** permanent registration shall not debar a clinical establishment from applying afresh for permanent registration under section 24 and after providing such evidence, as may be required, of having rectified the deficiences on which grounds the earlier application was disallowed. **32. Cancellation of registration.—(1) If, at any time after any clinical establishment has been** registered, the authority is satisfied that,— (a) the conditions of the registration are not being complied with; or (b) the person entrusted with the management of the clinical establishment has been convicted of an offence punishable under this Act, it may issue a notice to the clinical establishment to show cause within three months' time as to why its registration under this Act should not be cancelled for the reasons to be mentioned in the notice. (2) If after giving a reasonable opportunity to the clinical establishment, the authority is satisfied that there has been a breach of any of the provisions of this Act or the rules made thereunder, it may, by an order, without prejudice to any other action that it may take against such clinical establishment, cancel its registration. (3) Every order made under sub-section (2) shall take effect— (a) where no appeal has been preferred against such order immediately on the expiry of the period prescribed for such appeal; and (b) where such appeal has been preferred and it has been dismissed from the date of the order of such dismissal: Provided that the authority, after cancellation of registration for reasons to be recorded in writing, may restrain immediately the clinical establishment from carrying on if there is imminent danger to the health and safety of patients. **33. Inspection of registered clinical establishments.—(1) The authority or an officer authorised by** it shall have the right to cause an inspection of, or inquiry in respect of any registered clinical establishment, its building, laboratories and equipment and also of the work conducted or done by the clinical establishment, to be made by such multi-member inspection team as it may direct and to cause an inquiry to be made in respect of any other matter connected with the clinical establishment and that establishment shall be entitled to be represented thereat. (2) The authority shall communicate to the clinical establishment the views of that authority with reference to the results of such inspection or inquiry and may, after ascertaining the opinion of the clinical establishment thereon, advise that establishment upon the action to be taken. (3) The clinical establishment shall report to the authority, the action, if any, which is proposed to be taken or has been taken upon the results of such inspection or inquiry and such report shall be furnished within such time, as the authority may direct. (4) Where the clinical establishment does not, within a reasonable time, take action to the satisfaction of the authority, it may, after considering any explanation furnished or representation made by the clinical establishment, issue such directions within such time as indicated in the direction, as that authority deems fit, and the clinical establishment shall comply with such directions. **34. Power to enter.—The authority or an officer authorised by it may, if there is any reason to** suspect that anyone is carrying on a clinical establishment without registration, enter and search in the manner prescribed, at any reasonable time and the clinical establishment, shall offer reasonable facilities for inspection or inquiry and be entitled to be represented thereat: 11 ----- Provided that no such person shall enter the clinical establishment without giving notice of his intention to do so. **35. Levy of fee by State Government.—The State Government may charge fees for different** categories of clinical establishments, as may be prescribed. **36. Appeal.—(1) Any person, aggrieved by an order of the registering authority refusing to grant or** renew a certificate of registration or revoking a certificate of registration may, in such manner and within such period as may be prescribed, prefer an appeal to the State Council: Provided that the State Council may entertain an appeal preferred after the expiry of the prescribed period if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal in time. (2) Every appeal under sub-section (1) shall be made in such form and be accompanied by such fee as may be prescribed. CHAPTER V REGISTER OF CLINICAL ESTABLISHMENTS **37. Register of clinical establishments.—(1) The authority shall within a period of two years from** its establishment, compile, publish and maintain in digital format a register of clinical establishments, registered by it and it shall enter the particulars of the certificate so issued in a register to be maintained in such form and manner, as may be prescribed by the State Government. (2) Each authority, including any other authority set-up for the registration of clinical establishments under any other law for the time being in force, shall supply in digital format to the State Council of clinical establishments a copy of every entry made in the register of clinical establishments in such manner, as may be prescribed to ensure that the State Register is constantly up-to-date with the registers maintained by the registering authority in the State. **38. Maintenance of State Register of clinical establishments.—(1) Every State Government shall** maintain in digital and in such form and containing such particulars, as may be prescribed by the Central Government a register to be known as the State Register of clinical establishments in respect of clinical establishments of that State. (2) Every State Government shall supply in digital format to the Central Government, a copy of the State Register of clinical establishments and shall inform the Central Government all additions to and other amendments in such register made, for a particular month by the 15th day of the following month. **39. Maintenance of National Register of clinical establishments.—The Central Government shall** maintain in digital format an All India Register to be called as the National Register of clinical establishments that shall be an amalgam of the State Register of clinical establishments maintained by the State Governments and shall cause the same to be published in digital format. CHAPTER VI PENALTIES **40. Penalty.—Whoever contravenes any provision of this Act shall, if no penalty is provided** elsewhere, be punishable for the first offence with fine which may extend to ten thousand rupees, for any second offence with fine which may extend to fifty thousand rupees and for any subsequent offence with fine which may extend to five lakh rupees. 12 ----- **41. Monetary penalty for non-registration.—(1) Whoever carries on a clinical establishment** without registration shall, on first contravention, be liable to a monetary penalty up to fifty thousand rupees, for second contravention with a monetary penalty which may extend to two lakh rupees and for any subsequent contravention with a monetary penalty which may extend to five lakh rupees. (2) Whoever knowingly serves in a clinical establishment which is not duly registered under this Act, shall be liable to a monetary penalty which may extend to twenty-five thousand rupees. (3) For the purpose of adjudging under sub-sections (1) and (2), the authority shall hold an inquiry in the prescribed manner after giving any person concerned a reasonable opportunity of being heard for the purpose of imposing any monetary penalty. (4) While holding an inquiry the authority shall have power to summon and enforce the attendance of any person acquainted with the facts and circumstances of the case to give evidence or to produce any document which in the opinion of the authority, may be useful for or relevant to the subject matter of the inquiry and if, on such inquiry, it is satisfied that the person has failed to comply with the provisions specified in sub-sections (1) and (2), it may by order impose the monetary penalty specified in those sub-sections to be deposited within thirty days of the order in the account referred to in sub-section (8) of section 42. (5) While determining the quantum of monetary penalty, the authority shall take into account the category, size and type of the clinical establishment and local conditions of the area in which the establishment is situated. (6) Any person aggrieved by the decision of the authority may prefer an appeal to the State Council within a period of three months from the date of the said decision. (7) The manner of filing the appeal referred to in sub-section (6) shall be such as may be prescribed. **42. Disobedience of direction, obstruction and refusal of information.—(1) Whoever wilfully** disobeys any direction lawfully given by any person or authority empowered under this Act to give such direction, or obstructs any person or authority in the discharge of any functions which such person or authority is required or empowered under this Act to discharge, shall be liable to a monetary penalty which may extend to five lakh rupees. (2) Whoever being required by or under this Act to supply any information wilfully withholds such information or gives information which he knows to be false or which he does not believe to be true, shall be liable to a monetary penalty which may extend to five lakh rupees. (3) For the purpose of adjudging under sub-sections (1) and (2), the authority shall hold an inquiry in the prescribed manner after giving any person concerned a reasonable opportunity of being heard for the purpose of imposing any monetary penalty. (4) While holding an inquiry the authority shall have power to summon and enforce the attendance of any person acquainted with the facts and circumstances of the case to give evidence or to produce any document which in the opinion of the authority, may be useful for or relevant to the subject matter of the inquiry and if, on such inquiry, it is satisfied that the person has failed to comply with the provisions specified in sub-sections (1) and (2), it may by order impose the monetary penalty specified in those sub-sections to be deposited within thirty days of the order in the account referred to in sub-section (8). (5) While determining the quantum of monetary penalty, the authority shall take into account the category, size and type of the clinical establishment and local conditions of the area in which the establishment is situated. (6) Any person aggrieved by the decision of the authority may prefer an appeal to the State Council within a period of three months from the date of the said decision. (7) The manner of filing the appeal referred to in sub-section (6) shall be such as may be prescribed. 13 ----- (8) The monetary penalty levied under sections 41 and 42 shall be credited to such account as the State Government may by order specify in this behalf. **43. Penalty for minor deficiencies.—Whoever contravenes any provision of this Act or any rule** made thereunder resulting in deficiencies that do not pose any imminent danger to the health and safety of any patient and can be rectified within a reasonable time, shall be punishable with fine which may extend to ten thousand rupees. **44. Contravention by companies.—(1) Where a person committing contravention of any of the** provisions of this Act or of any rule made thereunder is a company, every person who, at the time the contravention was committed, was in charge of, and was responsible to the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the contravention and shall be liable to fine: Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the contravention was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such contravention. (2) Notwithstanding anything contained in sub-section (1), where a contravention of any of the provisions of this Act or of any rule made thereunder has been committed by a company and it is proved that the contravention has taken place with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that contravention and shall be liable to fine. _Explanation.—For the purpose of this section,—_ (a) “company” means a body corporate and includes a firm or other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm. **45. Offences by Government Departments.—(1) Where an offence under this Act has been** committed by any Department of Government within a period of six months after the commencement of this Act, the Head of the Department shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this section shall render such Head of the Department liable to any punishment if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a Department of Government and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any officer, other than the Head of the Department, such officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. **46. Recovery of fine.—Whoever fails to pay the fine, the State Council of clinical establishment may** prepare a certificate signed by an officer authorised by it specifying the fine due from such person and send it to the Collector of the District in which such person owns any property or resides or carries on his business and the said Collector, on receipt of such certificate, shall proceed to recover from such person the amount specified thereunder, as if it were an arrear of land revenue. CHAPTER VII MISCELLANEOUS **47. Protection of action taken in good faith.—(1) No suit, prosecution or other legal proceedings** shall lie against any authority or any member of the National Council or State Council or any officer 14 ----- authorised in this behalf in respect of anything, which is in good faith done or intended to be done in pursuance of the provisions of this Act or any rule made thereunder. (2) No suit or other legal proceedings shall lie against a State Government or the Central Government in respect of any loss or damage caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance of the provisions of this Act or any rule made thereunder. **48. Furnishing of returns, etc.—Every clinical establishment shall, within such time or within such** extended time, as may be prescribed in that behalf, furnish to the authority or the State Council or the National Council such returns or the statistics and other information in such manner, as may be prescribed by the State Government, from time to time. **49. Power to give directions.—Without prejudice to the foregoing provisions of this Act, the** authority shall have the power to issue such directions, including furnishing returns, statistics and other information for the proper functioning of clinical establishments and such directions shall be binding. **50. Employees of the authority, etc., to be public servants.—Every employee of the authority, the** National Council and the State Council shall be deemed to, when acting or purporting to act in pursuance of any of the provisions of this Act, be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **51. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to it to be necessary or expedient for removal of the difficulty: Provided that no such order shall be made after the expiry of a period of two years from the date of commencement of this Act. (2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament. **52. Power of Central Government to make rules.—(1) The Central Government may, by** notification, make rules for carrying out all or any of the provisions of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) allowances for the members of the National Council under sub-section (5) of section 3; (b) appointment of such person to be the Secretary of the State Council by the Central Government under sub-section (10) of section 3; (c) the determination of standards and for classification of clinical establishments under section 7; (d) the qualification and the terms and conditions for the members of the authority under clause (c) of sub-section (1) of section 10; (e) the procedure under which the powers of the authority may be exercised by the District Health Officer or Chief Medical Officer for the purpose of provisional registration of clinical establishment under sub-section (2) of section 10; (f) the minimum standards of facilities and services under clause (i) of sub-section (1) of section 12; (g) the minimum number of personnel under clause (ii) of sub-section (1) of section 12; (h) the maintenance of records and reporting by the clinical establishment under clause _(iii) of_ sub-section (1) of section 12; 15 ----- (i) other conditions for registration and continuation of clinical establishment under clause (iv) of sub-section (1) of section 12; (j) classification of clinical establishment under sub-section (1) of section 13; (k) the different standards for classification of clinical establishments under sub-section (2) of section 13; (l) the minimum standards for permanent registration under section 28; (m) the form and particulars to be contained in the register to be maintained under section 38. **53. Laying of rules.—Every rule made by the Central Government under this Act shall be laid, as** soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **54. Power of State Government to make rules.—(1) The State Government may, by notification,** make rules for carrying out in respect of matters which do not fall within the purview of section 52. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— _(a) the proforma and the fee to be paid for registration under sub-section (1) of section 14;_ (b) the form and details of application under sub-section (3) of section 14; (c) the particulars and information contained in certificate of provisional registration under section 15; (d) the manner of publication of all particulars of the clinical establishments proposed to be registered under sub-section (2) of section 16; (e) the fees to be paid to issue a duplicate certificate under section 19; _(f) the change of ownership or management to be informed by the clinical establishment to the_ authority under sub-section (2) of section 20; (g) the manner in which the authority shall publish the names of the clinical establishments whose registration expired under section 21; (h) the enhanced fees to be charged for renewal after expiry of the provisional registration under section 22; (i) the form of the application and fees to be charged by the State Government under section 24; (j) the manner of submitting evidence of the clinical establishments having complied with the minimum standards under section 25; (k) the manner of displaying information of the clinical establishments having complied with the minimum standards for filing objection under section 26; _(l) the expiry of period specified in section 29;_ (m) the form and particulars of the certificate of registration under section 30; (n) the period within which an appeal shall be preferred under clause (a) of sub-section (3) of section 32; 16 ----- (o) the manner of entry and search of clinical establishment under section 34; (p) the fees to be charged by the State Government for different categories of clinical establishments under section 35; (q) the manner and the period within which an appeal may be preferred to the State Council under sub-section (1) of section 36; (r) the form and the fee to be paid for an appeal under sub-section (2) of section 36; (s) the form and the manner in which the register to be maintained under sub-section (1) of section 37; (t) the manner of supply to the State Council in digital format the entry made in the register of clinical establishment under sub-section (2) of section 37; (u) the manner of holding an inquiry by the authority under sub-section (3) of sections 41 and 42; (v) the manner of filing the appeal under sub-section (7) of sections 41 and 42; (w) the manner and the time within which the information is to be furnished to the authority or the State Council or the National Council as the case may be, under section 48; (x) any other matter which is required to be or may be prescribed by the State Government. **55. Laying of rules.—Every rule made by the State Government under this section shall be laid, as** soon as may be after it is made, before each House of the State Legislature where it consists of two Houses, or where such Legislature consists of one House, before that House. **56. Savings.—(1) The provisions of this Act shall not apply to the States in which the enactments** specified in the Schedule are applicable: Provided that the States in which the enactments referred to in sub-section (1) are applicable, and such States subsequent to the commencement of this Act, adopts this Act under clause (1) of article 252 of the Constitution, the provisions of this Act shall, subsequent to such adoption, apply in that State. (2) The Central Government may, as and when consider necessary, by notification amend the Schedule. 17 ----- THE SCHEDULE [See section 56] 1. The Andhra Pradesh Private Medical Care Establishments (Registration and Regulation) Act, 2002. 2. The Bombay Nursing Homes Registration Act, 1949. 3. The Delhi Nursing Homes Registration Act, 1953. 4. The Madhya Pradesh Upcharya Griha Tatha Rujopchar Sanbabdu Sthapamaue (Ragistrikaran Tatha Anugyapan) Adhiniyam, 1973. 5. The Manipur Homes and Clinics Registration Act, 1992. 6. The Nagaland Health Care Establishments Act, 1997. 7. The Orissa Clinical Establishments (Control and Regulation) Act, 1990. 8. The Punjab State Nursing Home Registration Act, 1991. 9. The West Bengal Clinical Establishments Act, 1950. 18 -----

31-Aug-2010

31

The Land Ports Authority of India Act, 2010

https://www.indiacode.nic.in/bitstream/123456789/2105/1/201031.pdf

central

# THE LAND PORTS AUTHORITY OF INDIA ACT, 2010 ______________ ARRANGEMENT OF SECTIONS __________ CHAPTER I PRELIMINARY SECTIONS 1. Short title and commencement. 2. Definitions. CHAPTER II THE LAND PORTS AUTHORITY OF INDIA 3. Constitution of Authority. 4. Disqualification for office of member. 5. Term of office and conditions of service of members. 6. Vacation of office of members. 7. Eligibility of member for re-appointment. 8. Meetings. 9. Vacancies, etc., not to invalidate proceedings of Authority. 10. Officers and other employees of Authority. CHAPTER III FUNCTIONS OF AUTHORITY 11. Functions of Authority. 12. Responsibilities and powers of other agencies. CHAPTER IV PROPERTY AND CONTRACT 13. Assets and liabilities to vest in Authority. 14. General effect of vesting of undertakings in Authority. 15. Guarantee to be operative. 16. Compulsory acquisition of land for Authority. 17. Contracts by Authority. 18. Mode of executing contracts on behalf of Authority. CHAPTER V FINANCE, ACCOUNTS AND AUDIT 19. Power of Authority to charge fees, rent, etc. 20. Additional capital and grant to Authority by Central Government. 21. Fund of Authority and its investment. 22. Allocation of surplus funds. 23. Submission of programme of activities and financial estimates. 24. Borrowing powers of Authority. 1 ----- SECTIONS 25. Accounts and audit. CHAPTER VI MISCELLANEOUS 26. Submission of annual report. 27. Delegation. 28. Authentication of orders and other instruments of Authority. 29. Officers and employees of Authority to be public servants. 30. Protection of action taken in good faith. 31. Custody and disposal of lost property. 32. Power of Central Government to supersede Authority. 33. Power of Central Government to issue directions. 34. Power to make rules. 35. Power to make regulations. 36. Rules, regulations and notifications to be laid before Parliament. 37. Power to remove difficulties. 2 ----- # THE LAND PORTS AUTHORITY OF INDIA ACT, 2010 ACT NO. 31 OF 2010 [31st August, 2010.] # An Act to provide for the establishment of the Land Ports Authority of India to put in place systems which address security imperatives and for the development and management of facilities for cross border movement of passengers and goods at designated points along the international borders of India and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Sixty-first Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title and commencement.—(1) This Act may be called the Land Ports Authority of India** Act, 2010. (2) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act, and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “Authority” means the Land Ports Authority of India constituted under section 3; (b) “Chairperson” means the Chairperson of the Authority appointed under clause (a) of sub-section (3) of section 3; (c) “immigration check post” means any port or place of departure on the land as notified under the Foreigners' Act, 1946 (31 of 1946); (d) “integrated check post” means any land port, as the Central Government may, by notification in the Official Gazette, specify; (e) “land customs station” means any place notified as such by the Central Government under clause (b) of sub-section (1) of section 7 of the Customs Act, 1962 (52 of 1962) for the clearance of goods imported or to be exported by land or inland water; (f) “land port” means an area on the international borders of India including portions of national highways, State highways and other roads, notified as land customs station or immigration check post under the Customs Act, 1962 (52 of 1962) or the Foreigners' Act, 1946 (31 of 1946), and includes railways, with facilities for clearance and transport of passengers and goods across the borders of India; (g) “notification” means a notification published in the Official Gazette; (h) “prescribed” means prescribed by rules made under this Act; and (i) “regulations” means regulations made by the Authority under this Act. CHAPTER II THE LAND PORTS AUTHORITY OF INDIA **3. Constitution of Authority.—(1) With effect from such date as the Central Government may, by** notification in the Official Gazette, appoint, there shall be constituted an Authority to be known as the Land Ports Authority of India. 1.1st March, 2012, vide notification No. S.O. 328(E), dated 24th February, 2012, _see Gazette of India, Extraordinary,_ Part II, sec. 3(ii). 3 ----- (2) The Authority shall be a body corporate by the name aforesaid, having perpetual succession and a common seal, with power, subject to the provisions of this Act, to acquire, hold and dispose of property both movable and immovable, and to contract and shall by the said name sue and be sued. (3) The Authority shall consist of— (a) a Chairperson; (b) two Members, out of whom one shall be Member (Planning and Development) and other shall be Member (Finance); (c) not more than nine members, _ex officio, to be appointed by the Central Government from_ amongst the officers, not below the rank of the Joint Secretary to the Government of India, representing the ministries or departments of the Government of India dealing with Home Affairs, External Affairs, Revenue, Commerce, Road Transport and Highways, Railways, Defence, Agriculture and Cooperation, Law and Justice; (d) the Chief Secretary or his nominee not below the rank of the Secretary to the Government of the respective State where the integrated check posts are located; (e) two representatives, one of whom shall be from recognised bodies of workers and the other shall be from traders, to be appointed by the Central Government; and (f) such other representatives as the Central Government may co-opt for functional purposes. (4) The Chairperson and the members referred to in clause (b) shall be appointed by the Central Government and shall be whole-time members. (5) The Chairperson shall be chosen from among persons who have special knowledge and experience in the field of security, transport, industry, commerce, law, finance or public administration. **4. Disqualification for office of member.—A person shall be disqualified for being appointed as a** member if, he— (a) has been convicted and sentenced to imprisonment for an offence, which, in the opinion of the Central Government, involves moral turpitude; or (b) is an undischarged insolvent; or (c) is of unsound mind and stands so declared by a competent court; or (d) has been removed or dismissed from the service of the Government or a body corporate owned or controlled by the Government; or (e) has in the opinion of the Central Government such financial or other interest in the Authority as is likely to affect prejudicially the discharge by him of his functions as a member. **5. Term of office and conditions of service of members.—(1) Subject to the provisions of section 6,** every whole-time member shall hold office for a period of five years from the date on which he assumes office or till he attains the age of sixty years, whichever is earlier: Provided that the Central Government may— (a) terminate the appointment of any whole-time member, after giving him notice of a period of not less than three months or, in lieu thereof, on payment of an amount equal to his salary and allowances, if any, for a period of three months; (b) terminate at any time the appointment of any member who is a servant of the Government. (2) The other conditions of service of the members shall be such as may be prescribed. (3) Any member may resign his office by giving notice in writing for such period as may be prescribed, to the Central Government and, on such resignation being notified in the Official Gazette by that Government, such member shall be deemed to have vacated his office. 4 ----- **6. Vacation of office of members.—The Central Government shall remove a member if, he—** (a) becomes subject to any of the disqualifications mentioned in section 4: Provided that no member shall be removed on the ground that he has become subject to the disqualification mentioned in clause (e) of that section, unless he has been given a reasonable opportunity of being heard in the matter; or (b) refuses to act or becomes incapable of acting; or (c) is, without obtaining leave of absence from the Authority, absent from three consecutive meetings of the Authority; or (d) in the opinion of the Central Government, has so abused his position as to render his continuance in office detrimental to the public interest: Provided that no member shall be removed under this clause unless he has been given a reasonable opportunity of being heard in the matter. **7. Eligibility of member for re-appointment.—Any person ceasing to be a member shall, unless** disqualified under section 4, be eligible for re-appointment. **8. Meetings.—(1) The Authority shall meet at such times and places, and shall observe such rules of** procedure in regard to the transaction of business at its meetings (including the quorum at such meetings) as may be provided by regulations. (2) The Chairperson, or, if for any reason, he is unable to attend any meeting of the Authority, any other member chosen by the members present at the meeting shall preside at the meeting. (3) All questions which come up before any meeting of the Authority shall be decided by a majority of the votes of the members present and voting, and in the event of an equality of votes, the Chairperson, or in his absence the person presiding, shall have and exercise a second or casting vote. **9. Vacancies, etc., not to invalidate proceedings of Authority.—No act or proceeding of the** Authority shall be invalid merely by reason of— (a) any vacancy in, or any defect in the constitution of, the Authority; or (b) any defect in the appointment of a person acting as a member of the Authority; or (c) any irregularity in the procedure of the Authority not affecting the merits of the case. **10. Officers and other employees of Authority.—(1) For the purpose of enabling it to efficiently** discharge its functions under this Act, the Authority shall appoint such number of officers and other employees as it may consider necessary: Provided that the appointment of such category of officers, as may be specified, shall be subject to the approval of the Central Government. (2) Every officer or other employee appointed by the Authority shall be subject to such conditions of service and shall be entitled to such remuneration as may be determined by regulations. CHAPTER III FUNCTIONS OF AUTHORITY **11. Functions of Authority.—(1) Subject to the provisions of this Act, the Authority shall have** powers to develop, sanitize and manage the facilities for cross border movement of passengers and goods at designated points along the international borders of India. (2) Without prejudice to the generality of the provisions contained in sub-section (1), the Authority may— (a) put in place systems, which address security imperatives at the integrated check posts on the border; 5 ----- (b) plan, construct and maintain roads, terminals and ancillary buildings other than national highways, State highways and railways, at an integrated check post; (c) plan, procure, install and maintain communication, security, goods handling and scanning equipment at an integrated check post; (d) provide appropriate space and facilities for immigration, customs, security, taxation authorities, animal and plant quarantine, warehouses, cargo and baggage examination yards, parking zones, banks, post offices, communication facilities, tourist information centres, waiting halls, canteen, refreshment stalls, public conveniences, health services and such other services, as may be deemed necessary; (e) construct residential buildings for its employees as well as residential accommodation for staff deployed at integrated check posts; (f) establish and maintain hotels, restaurants and restrooms; (g) establish and maintain warehouses, container depots and cargo complexes for the storage or processing of goods; (h) arrange for postal, money exchange, insurance and telephone facilities for the use of passengers and other persons at integrated check posts; (i) make appropriate arrangements for the security of integrated check posts and provide for regulation and control of movement of vehicles, entry and exit of passengers and goods in accordance with the respective law concerning them; (j) ensure prevention and control of fire and other hazards and other facilities as deemed necessary; (k) regulate and control the movement of vehicles, and the entry and exit of passengers, transportation workers, handling agents, clearing and forwarding agents and goods at the integrated check post with due regard to the law, security and protocol of the Government of India; (l) co-ordinate and facilitate the working of agencies who have been engaged to undertake various activities at the integrated check posts, in accordance with the respective law, for the time being in force; (m) develop and provide consultancy, construction or management services, and undertake operations in India and abroad in relation to an integrated check post; (n) form one or more companies under the Companies Act, 1956 (1 of 1956) or under any other law relating to companies for efficient discharge of the functions imposed on it by this Act; (o) take all such steps as may be necessary or expedient for, or may be incidental to, the exercise of any power or the discharge of any function conferred or imposed on it by this Act: Provided that sovereign functions of the Authority shall not be assigned to any private entity; (p) set up joint ventures for the discharge of any of the functions assigned to the Authority; and (q) undertake any other activity at the integrated check post in the best commercial interests of the Authority. (3) In the discharge of its functions under this section, the Authority may consult such ministry or department of the Government of India or of the State Government as it deems necessary, and shall have due regard to the development of land port services and to the efficiency, economy and safety of such service. (4) Nothing contained in this section shall be construed as— (a) authorising the disregard by the Authority of any law for the time being in force; or (b) authorising any person to institute any proceeding in respect of duty or liability to which the Authority or its officers or other employees would not otherwise be subject to. 6 ----- **12. Responsibilities and powers of other agencies.—(1) The respective border guarding forces** deployed at the borders of India shall be responsible for security around an integrated check post. (2) The Authority may, whenever considered necessary so to do for ensuring the peace and security at an integrated check post, seek the assistance of armed force, Central para military force or State police as per the provisions of the law for the time being in force. (3) The Customs, immigration, quarantine and other officials shall co-ordinate with the Authority for the effective discharge of its functions. (4) Notwithstanding anything contained in any provisions of this Act, the Customs, immigration, quarantine officials, the border guarding forces and the police shall discharge their functions in accordance with the law for the time being in force. CHAPTER IV PROPERTY AND CONTRACT **13. Assets and liabilities to vest in Authority.—(1) On the date of notification issued under** clause (d) of section 2, all such assets, rights, powers, authorities and privileges and such property movable and immovable, real or personal, corporeal or incorporeal, present or contingent, of whatever nature, including lands, buildings, machinery, equipments, works, workshops, cash balances, capital, reserves, reserve funds, investments, tenancies, losses and book debts and all other rights and interests arising out of such property, as immediately before the issue of that notification, were in the ownership or possession of the Government of India in any of the land port, as the Central Government may, in such notification, specify, shall vest in the Authority and such vesting shall also be deemed to include all borrowings, liabilities and obligations of whatever kind then subsisting. (2) The notification under sub-section (1) shall be issued only after the concurrence of the concerned ministries or departments of the Government of India, in case where such properties are owned or controlled by such ministries or departments. **14. General effect of vesting of undertakings in Authority.—All contracts, agreements and** working arrangements subsisting immediately before the date of notification issued under clause (d) of section 2, and affecting the land ports shall be of full force and effect as regards the Authority. **15. Guarantee to be operative.—Any guarantee given for or in favour of land customs stations or** immigration check posts with respect to a loan, lease or finance shall continue to be operative in relation to such stations or check posts which have been vested in the Authority by virtue of this Act. **16. Compulsory acquisition of land for Authority.—Any land required by the Authority for the** discharge of its functions under this Act shall be deemed to be needed for a public purpose and such land may be acquired for the Authority under the provisions of the National Highways Act, 1956 (48 of 1956) or any other law for the time being in force. **17. Contracts by Authority.—Subject to the provisions of section 18, the Authority shall be** competent to enter into and perform any contract necessary for the discharge of its functions under this Act. **18. Mode of executing contracts on behalf of Authority.—(1) Every contract on behalf of the** Authority, shall be made by the Chairperson or such officer of the Authority as may be generally or specially empowered in this behalf by the Authority and such contracts as may be specified, in the regulations, shall be sealed with the common seal of the Authority: Provided that no contract exceeding such value or amount as the Central Government may, by order fix in this behalf, shall be made unless it has been previously approved by the Central Government: Provided further that no contract for the acquisition or sale of immovable property or for the lease of any such property for a term exceeding thirty years and no other contract exceeding such value or amount as the Central Government may, by order fix in this behalf, shall be made unless it has been previously approved by the Central Government. 7 ----- (2) Subject to the provisions of sub-section (1), the form and manner in which any contract shall be made under this Act shall be such as may be provided by regulations. (3) Any contract which is not in accordance with the provisions of this Act and the rules and regulations made thereunder shall not be binding on the Authority. CHAPTER V FINANCE, ACCOUNTS AND AUDIT **19. Power of Authority to charge fees, rent, etc.—The Authority may, determine and charge such** fees or rent, not being a statutory levy under any other Act, as may be provided by regulations, separately for each integrated check post,— (a) for the cargo handling, warehousing, parking of trucks or for any other service or facility offered in connection with transport operations; (b) for the parking of passenger vehicles and other amenities given to the passengers and visitors; and; (c) for the availing of facilities and other services provided by the Authority. **20. Additional capital and grant to Authority by Central Government.—The Central** Government may, after the appropriation made by Parliament by law in this behalf,— (a) provide any capital that may be required by the Authority for the discharge of its functions under this Act or for any purpose connected therewith on such terms and conditions as that Government may determine; (b) pay to the Authority, on such terms and conditions as the Central Government may determine, by way of loans or grants such sums of money as that Government may consider necessary for the efficient discharge of its functions under this Act. **21. Fund of Authority and its investment.—(1) The Authority shall establish its own fund and all** receipts of the Authority shall be credited thereto and all payments by the Authority shall be made there from. (2) The Authority shall have the power, subject to the provisions of this Act, to spend such sums as it thinks fit to cover all administrative expenses of the Authority or for purposes authorised by this Act and such sums shall be treated as expenditure out of the fund of the Authority. (3) All moneys standing at the credit of the Authority which cannot immediately be applied as provided in sub-section (2), shall be— (a) deposited in the State Bank of India or any such scheduled bank or banks or other public financial institutions subject to such conditions as may, from time to time, be specified by the Central Government; (b) invested in the securities of the Central Government or in such manner as may be prescribed. _Explanation.—_ In this sub-section, “scheduled bank” has the same meaning as in clause (e) of section 2 of the Reserve Bank of India Act, 1934 (2 of 1934). **22. Allocation of surplus funds.—(1) The Authority may, from time to time, set apart such amounts** as it thinks fit, as a reserve fund or funds for the purpose of expanding existing facilities or services or creating new facilities or services at any integrated check post or increase of expenditure from transient causes or for purposes of replacement or meeting expenditure arising from loss or damage due to any natural calamity or accident or meeting any liability arising out of any act of omission or commission in the discharge of its functions under this Act: Provided that the Authority shall also have the power to establish specific reserves for specific purposes: Provided further that the sums set apart annually in respect of each or any of the specific and general reserves and the aggregate at any time of such sums shall not exceed such limits as may, from time to time, be fixed in that behalf by the Central Government. 8 ----- (2) After making provision for such reserve fund or funds and for bad and doubtful debts, depreciation in assets and all other matters which are usually provided for by companies registered and incorporated under the Companies Act, 1956 (1 of 1956), the Authority shall pay the balance of its annual net profits to the Central Government. **23. Submission of programme of activities and financial estimates.—The Authority shall, before** the commencement of each financial year prepare a statement of the programme of its activities during the forthcoming financial year as well as financial estimate in respect thereof and submit it for the approval of the Central Government. **24. Borrowing powers of Authority.—(1) The Authority may, with the consent of the Central** Government or in accordance with the terms of any general or special authority given to it by the Central Government, borrow money from any source by the issue of bonds, debentures or such other instruments as it may deem fit for discharging all or any of its functions under this Act. (2) The Central Government may guarantee in such manner as it thinks fit, the repayment of the principal and the payment of interest thereon with respect to the loans taken by the Authority under subsection (1). (3) Subject to such limits as the Central Government may, from time to time, lay down, the Authority may borrow temporarily by way of overdraft or otherwise, such amount as it may require for discharging its functions under this Act. **25. Accounts and audit.—(1) The Authority shall maintain proper accounts and other relevant** records and prepare an annual statement of accounts including the profit and loss account and the balance sheet in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India. (2) The accounts of the Authority shall be audited annually by the Comptroller and Auditor-General of India and any expenditure incurred by him in connection with such audit shall be reimbursed to him by the Authority. (3) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Authority shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General has in connection with the audit of Government accounts and, in particular shall have the right to demand the production of books, accounts, connected vouchers, documents and papers and inspect any of the offices of the Authority. (4) The accounts of the Authority as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before both Houses of Parliament. CHAPTER VI MISCELLANEOUS **26. Submission of annual report.—(1) The Authority shall, as soon as may be, after the end of each** financial year, prepare and submit to the Central Government in such form as may be prescribed, a report giving an account of its activities during that financial year and the report shall also give an account of the activities which are likely to be undertaken by the Authority during the next financial year. (2) The Central Government shall cause such report to be laid before both Houses of Parliament, as soon as may be, after it is submitted. **27. Delegation.—The Authority may, by general or special order in writing, delegate to the** Chairperson or any other member or to any officer of the Authority, subject to such conditions and limitations, if any, as may be specified in the order, such of its powers and functions under this Act (except the powers under section 35), as it may deem necessary. **28. Authentication of orders and other instruments of Authority.—All orders and decisions of the** Authority shall be authenticated by the signature of the Chairperson or any other member authorised by 9 ----- the Authority in this behalf and all other instruments executed by the Authority shall be authenticated by the signature of an officer of the Authority authorised by it in this behalf. **29. Officers and employees of Authority to be public servants.—All officers and employees of** Authority shall, while acting or purporting to act in pursuance of the provisions of this Act or of any rule or regulation made thereunder, be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **30. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall** lie against the Authority or any member or any officer or other employee of the Authority for anything which is in good faith done or intended to be done in pursuance of this Act or of any rule or regulation made thereunder. **31. Custody and disposal of lost property.—Subject to such regulations as the Authority may make** in this behalf, the Authority shall provide for securing the safe custody and restoration of any property which, while not in proper custody, is found on any premises belonging to the Authority or under its overall control. **32. Power of Central Government to supersede Authority.—(1) If, at any time, the Central** Government is of opinion— (a) that on account of a grave emergency, the Authority is unable to discharge the functions and duties imposed on it by or under the provisions of this Act; or (b) that the Authority has persistently defaulted in complying with any direction issued by the Central Government under this Act or in the discharge of the functions and duties imposed on it by or under the provisions of this Act and as a result of default the financial position of the Authority or the administration of an integrated check post has deteriorated; or (c) that circumstances exist which render it necessary in the public interest so to do, the Central Government may, by notification in the Official Gazette, supersede the Authority for such period, not exceeding six months, as may be specified in the notification: Provided that before issuing a notification under this sub-section for the reasons mentioned in clause (b), the Central Government shall give a reasonable opportunity to the Authority to show cause why it should not be superseded and shall consider the explanations and objections, if any, of the Authority. (2) Upon the publication of a notification under sub-section (1) superseding the Authority,— (a) all the members shall, as from the date of supersession, vacate their offices as such; (b) all the powers, functions and duties which may, by or under the provisions of this Act, be exercised or discharged by or on behalf of the Authority, shall until the Authority is reconstituted under sub-section (3), be exercised and discharged by such person or persons as the Central Government may direct; and; (c) all property owned or controlled by the Authority shall, until the Authority is reconstituted under sub-section (3), vest in the Central Government. (3) On the expiration of the period of supersession specified in the notification issued under sub-section (1), the Central Government may,— (a) extend the period of supersession for such further term not exceeding six months, as it may consider necessary, or (b) reconstitute the Authority by fresh appointment and in such case the members who vacated their offices under clause (a) of sub-section (2) shall not be deemed disqualified for appointment: Provided that the Central Government may, at any time before the expiration of the period of supersession, whether as originally specified under sub-section (1) or as extended under this sub-section, take action under clause (b) of this sub-section. (4) The Central Government shall cause a notification issued under sub-section (1) and a full report of any action taken under this section and the circumstances leading to such action to be laid before both Houses of Parliament in the immediate subsequent session of Parliament. 10 ----- **33. Power of Central Government to issue directions.—(1) Without prejudice to the foregoing** provisions of this Act, the Authority shall, in the discharge of its functions and duties under this Act, be bound by such directions on questions of policy as the Central Government may give in writing to it from time to time: Provided that the Authority shall, as far as practicable, be given opportunity to express its views before any direction is given under this sub-section. (2) The decision of the Central Government whether a question is one of policy or not shall be final. (3) The Central Government may, from time to time, issue directions to the Authority regarding the discharge of any functions by it under the clauses of sub-section (2) of section 11 and the Authority shall be bound to comply with such directions. **34. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules for carrying out the provisions of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for— (a) the other conditions of service of members of the Authority under sub-section (2) of section 5; (b) the period of notice as may be given by any member to resign his office under sub-section (3) of section 5; (c) the manner in which the Authority may invest the funds under clause (b) of sub-section (3) of section 21; (d) the form in which the annual statement of accounts shall be prepared by the Authority under sub-section (1) of section 25; (e) the form in which a report giving an account of its activities shall be prepared and submitted by the Authority to the Central Government under sub-section (1) of section 26; and (f) any other matter which is to be, or may be, prescribed. **35. Power to make regulations.—(1) The Authority may, with the previous approval of the Central** Government, make regulations not inconsistent with this Act and the rules made thereunder for the purpose of giving effect to the provisions of this Act. (2) Without prejudice to the generality of the foregoing power, such regulations may provide for— (a) the time and places of meetings of the Authority and the procedure to be followed for transaction of business including the quorum at such meetings under sub-section (1) of section 8; (b) the conditions of service and the remuneration of officers and other employees to be appointed by the Authority under sub-section (2) of section 10; (c) the contracts which are to be sealed with the common seal of the Authority under sub-section (1), and the form and manner in which a contract may be made by the Authority under sub-section (2) of section 18; (d) the fees and rent to be charged by the Authority under sub-section (1) of section 19; (e) the custody and restoration of lost property and the terms and conditions under which lost property may be restored to the persons entitled thereto under section 31. **36. Rules, regulations and notifications to be laid before Parliament.—Every rule and every** regulation made or notification issued under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule, regulation or notification, as the case may be, or both Houses agree that the rule, regulation or notification, as the case may be, should not be made or issued, the rule, regulation or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; 11 ----- so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule, regulation or notification. **37. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by general or special order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for the removal of the difficulty: Provided that no such order shall be made after the expiry of a period of two years from the date of the commencement of this Act. (2) Every order made under this section shall as soon as may be after it is made, be laid before each House of Parliament. 12 -----

21-Sep-2010

39

The Nalanda University Act, 2010

https://www.indiacode.nic.in/bitstream/123456789/2109/1/201039.pdf

central

# THE NALANDA UNIVERSITY ACT, 2010 _____________ # ARRANGEMENT OF SECTIONS _____________ SECTIONS 1. Short title and commencement. 2. Declaration of Nalanda University as an institution of national importance. 3. Definitions. 4. Establishment and incorporation of Nalanda University. 5. Effect of establishment of University. 6. Jurisdiction. 7. Governing Board. 8. Powers and functions of Governing Board. 9. Objectives of University. 10. Powers of University. 11. University open to all persons. 12. Visitor. 13. Officers of University. 14. The Chancellor. 15. The Vice-Chancellor. 16. The Registrar. 17. The Finance Officer. 18. The Controller of Examinations. 19. The Librarian. 20. Other officers. 21. Privileges and immunities of academic staff, etc. 22. Authorities of the University. 23. The Academic Council. 24. The School of Studies. 25. The Finance Committee. 26. Other authorities. 27. Statutes. 28. Statutes how made. 29. Ordinances. 30. Regulations. 31. Annual report. 32. Annual accounts, etc. 33. Conditions of service of employees. 34. Procedure of appeal and arbitration in disciplinary cases against students. 35. Right to appeal. 36. Provident and pension funds. 37. Disputes as to the constitution of authorities and bodies. 38. Filling of casual vacancies. 39. Proceedings of authorities or bodies not invalidated by vacancies. 40. Protection of action taken in good faith. 41. Power to remove difficulties. 42. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid before Parliament. 43. Transitional provisions. 44. Repeal of University of Nalanda Act. 1 ----- # THE NALANDA UNIVERSITY ACT, 2010 ACT NO. 39 OF 2010 [21st September, 2010.] # An Act to implement the decisions arrived at the Second East Asia Summit held on the 15th January, 2007, at Philippines and subsequently at the Fourth East Asia Summit held on the 25th October, 2009, at Thailand for the establishment of the Nalanda University in the State of Bihar as an international institution for pursuit of intellectual, philosophical, historical and spiritual studies and for matters connected therewith or incidental thereto. WHEREAS, the Second East Asia Summit held on the15th January, 2007 in the city of Cebu, Republic of Philippines, agreed to strengthen regional educational co-operation by tapping the East Asia Region’s centres of excellence in education and for the revival of the Nalanda University located in the State of Bihar to improve regional understanding and the appreciation of one another’s heritage and history; AND WHEREAS, the Fourth East Asia Summit held on the 25th October, 2009 in Hua Hin, Thailand, supported the establishment of the Nalanda University and encouraged the networking and collaboration between the proposed Nalanda University and existing centres of excellence in the East Asia Summit so as to participating countries to build a community of learning where students, scholars, researchers and academicians can work together symbolising the spirituality that unites all mankind; AND WHEREAS, it is considered expedient to make provision for implementing the decisions arrived at in the aforesaid East Asia Summits for establishment of the Nalanda University in the State of Bihar and declare it to be an institution of national importance. BE it enacted by Parliament in the Sixty-first Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the Nalanda University Act, 2010.** (2) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act. **2. Declaration of Nalanda University as an institution of national importance.—Whereas the** objects of the institution known as the Nalanda University are such as to make the institution one of national importance, it is hereby declared that the institution known as the Nalanda University is an institution of national importance. **3. Definitions.—In this Act, unless the context otherwise requires,—** (a) “Academic Council” means the Academic Council of the University; (b) “academic staff” means such categories of staff as are designated as academic staff by the Statutes; (c) “Centre” means a centre established or maintained by the University in any place in India or in East Asia region for the purposes of coordinating and supervising the work of centres in such place or region and for performing such functions as may be conferred on such centre by the Governing Board; (d) “East Asia region” means the region comprising the territories of the Member States of the East Asia Summit; (e) “employee” means any person appointed by the University and includes teachers and other staff of the University; (f) “Faculty” means a Faculty of the University; (g) “Finance Officer” means the Finance Officer of the University appointed under section 17; 1. 25th November, 2010, _vide notification No. S.O. 2809(E), dated 18th November, 2010,_ _see Gazette of India,_ Extraordinary, Part II, sec. 3(ii). 2 ----- (h) “Governing Board” means the Governing Board of the University constituted under section 7; (i) “Hall” means a unit of residence, by whatever name called, for students of the University provided, maintained or recognised by it; (j) “Member States” means the Member States of the East Asia Summit; (k) “Nalanda Mentor Group” means the group of persons constituted by the communication dated the 28th June, 2007 of the Government of India in the Ministry of External Affairs, _inter alia, to_ examine the framework and structure of International co-operation and partnership which would govern the establishment of the University; (l) “Ordinances” means the Ordinances of the University; (m) “prescribed” means prescribed by Statutes, Ordinances or by Regulations; (n) “recognised institution” means an institution of higher learning maintained or recognised by, or associated with, the University; (o) “Registrar” means the Registrar of the University appointed under section 16; (p) “Regulations” means the Regulations of the University; (q) “School” means a school of studies of the University; (r) “Statutes” means the Statutes of the University; (s) “teacher” means professor, associate professor, assistant professor and research staff of the University appointed or recognised by the University for imparting instructions or conducting research in the University or for giving guidance to students for pursuing any course of study of the University and are designated as teachers by the Statutes; (t) “University” means the Nalanda University established and incorporated under section 4. **4. Establishment and incorporation of Nalanda University.—(1) The University of Nalanda in the** State of Bihar, established under the University of Nalanda Act, 2007 (Bihar Act 18 of 2007), shall be established as a body corporate under this Act by the name of “Nalanda University”. (2) The first Visitor, the first Chancellor, the first Vice-Chancellor, the first members of the Governing Board and the Academic Council, and all persons who may hereafter become such officers or members, so long as they continue to hold such office or membership, shall constitute the University. (3) The University shall have perpetual succession and a common seal and shall sue and be sued by the said name. (4) The Headquarters of the University shall be in the district of Nalanda in the State of Bihar. (5) The University may establish or maintain centres at such other places in India as it may deem fit: Provided that the University may, with the approval of the Governing Board, establish study centres outside India. **5. Effect of establishment of University.—On and from the date of commencement of this Act,—** (a) any reference to the University of Nalanda in any contract or other instrument shall be deemed as a reference to the University; (b) all property, movable and immovable, of or belonging to the University of Nalanda shall vest in the University; (c) all rights and liabilities of the University of Nalanda shall be transferred to, and be the rights and liabilities of, the University; (d) every person employed by the University of Nalanda immediately before the commencement of this Act shall hold his office or service in the University by the same tenure, at the same remuneration and upon the same terms and conditions and with the same rights and privileges as to pension, leave, gratuity, provident fund and other matters as he would have held the same if this Act 3 ----- had not been enacted, and shall continue to do so unless and until his employment is terminated or until such tenure, remuneration and terms and conditions are duly altered by the Statutes: Provided that if the alteration so made is not acceptable to such employee, his employment may be terminated by the University in accordance with the term of the contract with the employee or, if no provision is made therein in this behalf, on payment to him by the University of compensation equivalent to three months’ remuneration in case of permanent employees and one month’s remuneration in the case of other employees: Provided further that every person employed before the commencement of this Act, pending the execution of a contract under section 33, shall be deemed to have been appointed in accordance with the provisions of a contract consistent with the provisions of this Act and the Statutes: Provided also that any reference, by whatever form of words, to the Visitor, Chancellor or Vice-Chancellor of the University of Nalanda in any law for the time being in force, or in any instrument or other document, shall be construed as a reference respectively to the Visitor, Chancellor or Vice-Chancellor of the University; (e) the Visitor of the University of Nalanda, appointed under the provisions of the University of Nalanda Act, 2007 (Bihar Act 18 of 2007) shall be deemed to have been appointed to be the nominee of the Visitor and such nominee be also the first Visitor under this Act for a period of five years from the date of commencement of this Act; (f) the Chancellor of the University of Nalanda, appointed under the provisions of the University of Nalanda Act, 2007 (Bihar Act 18 of 2007) shall be deemed to have been appointed as the Chancellor under section 14 of this Act, and shall hold office for a period of three years from the date of commencement of this Act; (g) the Vice-Chancellor of the University of Nalanda, appointed under the provisions of the University of Nalanda Act, 2007 (Bihar Act 18 of 2007) shall be deemed to have been appointed as the first Vice-Chancellor under this Act, and shall hold office for a period of five years from the date of commencement of this Act; and (h) all Colleges, Institutions, Faculties and Departments affiliated to, or admitted to the privileges of, or maintained by, the University of Nalanda shall stand affiliated to, or admitted to the privilege of, or maintained by, the University. **6. Jurisdiction.—The jurisdiction of the University shall extend to whole of India and to centres** established within or outside India. **7. Governing Board.—(1) There shall be a Governing Board of the University consisting of the** following persons as its members, namely: — (a) the Chancellor; (b) the Vice-Chancellor; (c) five members from amongst the Member States which provide maximum financial assistance during a period of three years to be nominated by the Member States; (d) one member, not below the rank of Secretary in the Ministry of External Affairs, to be nominated by the Central Government; (e) two members, representing the State Government of Bihar, to be nominated by the State Government; (f) one member not below the rank of Additional Secretary in the Ministry of Human Resource Development, to be nominated by the Central Government; (g) three members from amongst the persons being renowned academician or educationist, to be nominated by the Central Government. (2) Each member of the Governing Board referred to in clauses (c) to (g) of sub-section (1), shall hold office for a fixed term of three years. 4 ----- (3) The Chancellor shall be the Chairperson of the Governing Board. (4) The member, being the Secretary in the Ministry of External Affairs, nominated under clause (d) of sub-section (1), shall be the Member-Secretary of the Governing Board. (5) Subject to the provisions of this Act, the Statutes and the Ordinances made thereunder, the Governing Board may regulate its own procedure (including quorum) for the conduct of its meetings. **8. Powers and functions of Governing Board.—(1) The Governing Board shall be responsible for** all the policies and directions of the University and management of its affairs. (2) The Governing Board shall exercise such powers as may be prescribed by the Statutes: Provided that the Nalanda Mentor Group shall exercise the powers and discharge the functions of the Governing Board for a period of one year or till such time the members referred to in clauses (c) to (g) of sub-section (1) of section 7 are nominated, whichever is earlier. **9. Objectives of University.—(1) The objectives of the University shall be—** (a) to impart education and to enable research towards capacity building of the Member States in the domain of ancient science (in particular, practised in the Nalanda several centuries ago), philosophy, language, history and other areas of higher learning vital for improving the quality of life; (b) to contribute to the promotion of regional peace and vision by bringing together the future leaders of the East Asia, who by relating to their past history can enhance their understanding of each others’ perspectives and to share that understanding globally; (c) to harmonise the academic standards and accreditation norms in teaching, research and curriculum that are acceptable to all Member States; (d) to create a unique partnership between the scholars and interested persons from the Member States; (e) to understand Buddha’s teachings in the contemporary context without excluding any other thoughts and practices from any other parts of the world; (f) to enhance research for greater interaction between Asian countries, particularly between East Asia, bound by strong historical commonalities in areas like trade, science, mathematics, astronomy, religion, philosophy and cross-cultural current; (g) to foster in the students and scholars the spirit of accommodation, understanding and thus to train them to become exemplary citizens of democratic societies; (h) to contribute to the improvement of the educational system of the Member States in view of the teaching in Nalanda several centuries ago; (i) to provide education and training in various arts, crafts and skills of the Member States, raising their quality and improving their availability to the people. (2) The University shall be non-profit public-private partnership, which shall seek support from each of the Member States and from other sources but shall be autonomous and accountable to the Governing Board. **10. Powers of University.—The University shall have the following powers, namely:—** (i) to make provision for providing, upgrading and promoting holistic and inclusive education and training and research in such education as set out in the objects, and to create an enabling and conducive environment for the pursuit of such education in close co-operation with other experts, scholars and interested persons in India, Asian countries and other countries; (ii) to set up a consortium of international partners and friendly countries in furtherance of the objects of the University; (iii) to generate and maintain resources through consultancy services, continuing education programmes, national and international collaborations and intellectual property rights; 5 ----- (iv) to provide for instruction in such branches of learning as the University may, from time to time, determine and to make provisions for research and for the advancement and dissemination of knowledge; (v) to establish such special centres and specialised laboratories and such other units for research and instruction as are necessary for the furtherance of its objects; (vi) to plan and prescribe courses of study for degrees, diplomas, certificates or for any other purpose; (vii) to hold examinations and grant diplomas or certificates to, and confer degrees and other academic distinctions on, persons who have pursued a course of study or conducted research, in the manner laid down by the Statutes and Ordinances; (viii) to confer honorary degrees or other academic distinctions in the manner prescribed by the Statutes; (ix) to institute Professorships, Readerships and Lecturerships and other teaching and academic positions, required by the University and to appoint persons to such Chairs, Professorships, Readerships and Lecturerships and other teaching and academic positions; (x) to appoint visiting professors, Emeritus professors, consultants, scholars and such other persons who may contribute to the advancement of the objects of the University; (xi) to recognise persons as professors, associate professors, or assistant professors or otherwise as teachers of the University; (xii) to create administrative and other posts as the University may deem necessary from time to time and to make appointments thereto; (xiii) to lay down conditions of service of all categories of employees, including their code of conduct; (xiv) to establish and maintain centres in India or outside India, as may be determined from time to time; (xv) to admit to its privileges institutions situated within its jurisdiction as the University institutions and to withdraw all or any of those privileges in accordance with such conditions as may be prescribed by the Statutes; (xvi) to co-operate or collaborate or associate with any other University or authority or institution of higher learning or any other public or private body, having in view the promotion of purposes and objects similar to those of the University, in such manner as may be prescribed and for such purposes as may be determined or agreed upon by the University; (xvii) to determine standards of admissions, including examination, evaluation or any other method of testing, to the University, and the institutions maintained by or admitted to the privileges of the University; (xviii) to demand and receive payment of fees and other charges as may be prescribed; (xix) to establish Halls and to recognise, guide, supervise and control Halls not maintained by the University and other accommodation for students, and to withdraw any such recognition; (xx) to make arrangements for promoting health and general welfare of students and employees of the University; (xxi) to regulate and enforce discipline among the students and the employees, and to take such disciplinary measures in this regard as may be deemed by the University to be necessary; (xxii) to institute and award Fellowships, Scholarships and Prizes; (xxiii) to receive benefactions, donations and gifts in accordance with the Ordinances and to acquire, hold, manage and dispose of any property, movable or immovable, including trust and 6 ----- endowment properties, for the purposes or objects of the University and to invest funds in such manner as it deems fit; (xxiv) to borrow, with the approval of the Governing Board; (xxv) to recognise for any purpose, either in whole or in part, any institution or members or students thereof on such terms and conditions as may, from time to time, be prescribed and to withdraw such recognition; (xxvi) to make provision for research and advisory services and for that purpose to enter into such arrangements with other institutions or bodies as it may deem necessary; (xxvii) to provide for the printing, reproduction and publication or research and other work which may be required by the University; (xxviii) to exercise such other powers accorded to it and to do all such other acts as may be necessary, incidental or conducive to the promotion of all or any of the objects of the University. **11. University open to all persons.—The University shall be open to all persons irrespective of** gender, caste, creed, disability, ethnicity or socio-economic background. **12. Visitor.—(1) The President of India shall be the Visitor of the University:** Provided that the President may, by order, nominate any person to be the Visitor and such person so nominated shall hold office for such term, not exceeding five years as may be specified in the order and the person so nominated shall exercise the powers and discharge duties of the Visitor. (2) The Visitor may, from time to time, appoint one or more persons to review the work and progress of the University and to submit a report thereon; and upon receipt of that report, the Visitor may, after obtaining the views of the Governing Board thereon through the Vice-Chancellor, take such action and issue such directions as he considers necessary in respect of any of the matters dealt with in the report and the University shall be bound to comply with such directions. (3) The Visitor shall have the right to cause an inspection to be made, by such person or persons as he may direct, of the University, its buildings, libraries, laboratories and equipments, and of any institution or centre maintained by the University or admitted to its privileges, and also of the examinations, teaching and other work conducted or done by the University and to cause an inquiry to be made in respect of any matter connected with the University. (4) The Visitor shall, in every case give notice to the University of his intention to cause an inspection or inquiry to be made, and the University shall be entitled to appoint a representative within thirty days or such other period as the Visitor may determine who shall have the right to be present and be heard at such inspection or inquiry. (5) The Visitor may address the Vice-Chancellor with reference to the result of inspection and inquiry, and the Vice-Chancellor shall communicate to the Governing Board the views of the Visitor with such advice as the Visitor may offer upon the action to be taken thereon. (6) The Governing Board shall communicate through the Vice-Chancellor to the Visitor, such action, if any, as it proposes to take or has been taken upon the result of such inspection or inquiry. (7) Where the Governing Board does not, within a reasonable time, take action to the satisfaction of the Visitor, he may, after considering any explanation furnished or representation made by the Governing Board, issue such directions as he may think fit and the Governing Board shall be bound to comply with such directions. (8) Without prejudice to the foregoing provisions of this section, the Visitor may, by order in writing, annul any proceeding of the University which is not in conformity with this Act, the Statutes, the Ordinances or the Regulations. (9) The Visitor shall have such other powers as may be prescribed by the Statutes. 7 ----- **13. Officers of University.—The following shall be the officers of the University:—** (1) the Chancellor; (2) the Vice-Chancellor; (3) the Registrars; (4) the Finance Officer; and (5) such other officers as may be declared by the Statutes to be the officers of the University. **14. The Chancellor.—(1) The Chancellor shall be appointed by the Visitor for such term and in such** manner as may be prescribed by the Statutes. (2) The Chancellor shall, by virtue of his office, be the head of the University and shall, if present, preside at the Convocations of the University held for conferring degrees and meetings of the Governing Board. **15. The Vice-Chancellor.—(1) The Vice-Chancellor shall be appointed by the Visitor in such** manner, for such term and on such emoluments and other conditions of service as may be prescribed by the Statutes. (2) The Vice-Chancellor shall be the principal academic and executive officer of the University, and shall exercise supervision and control over the affairs of the University and give effect to the decisions of all the authorities of the University. (3) The Vice-Chancellor may, if he is of the opinion that immediate action is necessary on any matter, exercise any power conferred on any authority of the University by or under this Act and shall report to such authority the action taken by him on such matter: Provided that if the authority concerned is of the opinion that such action ought not to have been taken, it may refer the matter to the Visitor whose decision thereon shall be final: Provided further that any person in the service of the University who is aggrieved by any action taken by the Vice-Chancellor under this sub-section shall have the right to represent against such action to the Governing Board within ninety days from the date on which such action is communicated to him and thereupon the Governing Board may confirm, modify or reverse the action taken by the Vice-Chancellor. (4) The Vice-Chancellor, if he is of the opinion that a decision of any authority is beyond the powers of the authority conferred by the provisions of this Act, the Statutes or the Ordinances or that any decision taken is not in the interest of the University, may ask the authority concerned to review its decision within sixty days of such decision and if the authority refuses to review its decision either in whole or in part or no decision is taken by it within the said period of sixty days, the matter shall be referred to the Visitor whose decision thereon shall be final: Provided that the decision of the authority concerned shall remain suspended during the period of review of such decision by the authority or the Visitor, as the case may be, under this sub-section. (5) The Vice-Chancellor shall exercise such other powers and perform such other functions as may be prescribed by the Statutes and the Ordinances. **16. The Registrar.—(1) The Registrar shall be appointed in such manner and on such terms and** conditions of service as may be prescribed by the Statutes. (2) The Registrar shall have the power to enter into, and sign agreements and authenticate records on behalf of the University. (3) The Registrar shall exercise such powers and perform such functions as may be prescribed by the Statutes. **17. The Finance Officer.—The Finance Officer shall be appointed in such manner and on such terms** and conditions of service and shall exercise such powers and perform such functions as may be prescribed by the Statutes. 8 ----- **18. The Controller of Examinations.—The Controller of Examinations shall be appointed in such** manner and on such terms and conditions of service and shall exercise such powers and perform such duties, as may be prescribed by the Statutes. **19. The Librarian.—The Librarian shall be appointed in such manner and on such terms and** conditions of service, and shall exercise such powers and perform such duties, as may be prescribed by the Statutes. **20. Other officers.—The manner of appointment, emoluments, powers and duties of the other** officers of the University shall be prescribed by the Statutes. **21. Privileges and immunities of academic staff, etc.—The members of the academic staff and,** where applicable, their dependents or members of the family, shall enjoy such privileges and immunities as the Central Government may, after entering into an agreement with the University, notify under section 3 of the United Nations (Privileges and Immunities) Act, 1947 (46 of 1947). **22. Authorities of the University.—The following shall be the authorities of the University:—** (1) the Governing Board; (2) the Academic Council; (3) the Boards of Schools of Studies; (4) the Finance Committee; and (5) such other authorities as may be declared by the Statutes to be the authorities of the University. **23. The Academic Council.—(1) The Academic Council shall be the principal academic body of the** University and shall, subject to the provisions of this Act, the Statutes and the Ordinances, have the control and general regulation of, and be responsible for, the maintenance of standards of learning, education, instruction, evaluation and examination within the University and shall exercise such other powers and perform such other functions as may be conferred or imposed upon it by the Statutes. (2) The constitution of the Academic Council and the term of office of its members shall be prescribed by the Statutes. **24. The School of Studies.—(1) There shall be such number of Schools of Studies as the University** may determine from time to time. (2) Without prejudice to the generality of the foregoing provision contained in sub-section (1), the University shall have the following Schools, namely:— (i) Buddhist Studies, Philosophy and Comparative Religions; (ii) Historical Studies; (iii) International Relations and Peace Studies; (iv) Business Management in relation to Public Policy and Development Studies; (v) Languages and Literature; (vi) Ecology and Environment Studies; (vii) any other school as may be prescribed by the Statutes. (3) Every School of Studies shall have a Board comprising of such members as may be prescribed by the Statutes. (4) The powers and functions of the Boards of School of Studies shall be prescribed by the Statutes. **25. The Finance Committee.—The constitution, powers and functions of the Finance Committee** shall be prescribed by the Statutes. 9 ----- **26. Other authorities.—The constitution, powers and functions of the other authorities which may** be declared by the Statutes to be authorities of the University shall be prescribed by the Statutes. **27. Statutes.—Subject to the provisions of this Act, the Statutes may provide for all or any of the** following matters, namely:— (a) the manner of appointment of the Chancellor; (b) the manner of appointment of the Vice-Chancellor, the term of his appointment, the emoluments and other conditions of his service and the powers and functions that may be exercised and performed by him; (c) the manner of appointment of the Registrar, the Finance Officer, the Controller of Examinations and other officers and terms and conditions of their service and the powers and functions that may be exercised and performed by such officers; (d) the other authorities of the University, the terms of office of the members of such authorities and the powers and functions that may be exercised and performed by such authorities; (e) the appointment of teachers and other employees of the University, their emoluments and other conditions of service: Provided that the terms and conditions of teachers and employees shall not be varied to their disadvantage; (f) the constitution of a pension or provident fund and the establishment of an insurance scheme for the benefit of the employees of the University; (g) the principles governing the seniority of service of the employees of the University; (h) the procedure for regulating the work of the Tribunal of Arbitration; (i) the procedure for the settlement of disputes between the employees or students of the University, and the University; (j) the co-ordination and determination of standards in the University; (k) Schools of Studies, members of its Board and the power and functions of such Board; (l) all other matters which by this Act are to be, or may be, provided by the Statutes. **28. Statutes how made.—(1) The first Statutes shall be made by the Governing Board, with the prior** approval of the Visitor, within six months of the commencement of this Act, for operation of University. (2) The Governing Board may, from time to time, make new or additional Statutes or may amend or repeal the Statutes referred to in sub-section (1): Provided that the Governing Board shall not make, amend or repeal any Statute affecting the status, powers or constitution of any authority of the University until such authority has been given a reasonable opportunity to express its opinion in writing on the proposed changes and any opinion so expressed has been considered by the Governing Board. (3) Every new Statute or addition to the Statutes or any amendment or repeal thereof shall require the assent of the Visitor, who may assent thereto or withhold assent or remit to the Governing Board for reconsideration in the light of the observations, if any, made by him. (4) A new Statute or a Statute amending or repealing an existing Statute shall not be valid unless it has been assented to by the Visitor. (5) Notwithstanding anything contained in the foregoing sub-sections, the Visitor may direct the University to make provisions in the Statutes in respect of any matter specified by him and if the Governing Board is unable to implement such a direction within sixty days of its receipt, the Visitor may, after considering the reasons, if any, communicated by the Governing Board for its inability to comply with such directions, make or amend the Statutes suitably. 10 ----- **29. Ordinances.—(1) Subject to the provisions of this Act and the Statutes, the Ordinances may** provide for all or any of the following matters, namely:— (a) the admission of students, the courses of study and fees therefor, the qualifications pertaining to degrees, diplomas, certificates and other courses, the conditions for the grant of fellowships, awards and the like; (b) the conduct of examinations, including the terms and conditions and manner of appointment of examiners; (c) any other matter which by this Act or the Statutes is to be, or may be, provided for by the Ordinances. (2) The first Ordinances shall be made by the Vice-Chancellor with the previous approval of the Governing Board and the Ordinances so made may be amended, repealed or added to at any time by the Governing Board, in the manner prescribed by the Statutes. **30. Regulations.—The authorities of the University may make regulations consistent with this Act,** the Statutes and the Ordinances for the conduct of their own business and that of the committees, if any, appointed by them and not provided for by this Act, the Statutes or the Ordinances, in the manner prescribed by the Statutes. **31. Annual report.—(1) The annual report of the University shall be prepared under the directions of** the Governing Board which shall include, among other matters, the steps taken by the University towards the fulfilment of its objectives. (2) The annual report so prepared shall be submitted to the Visitor on or before such date as may be prescribed by the Statutes. (3) A copy of the annual report so prepared shall also be submitted to the Member States and exhibited on the website of the University. **32. Annual accounts, etc.—(1) The annual accounts and the balance sheet of the University shall be** prepared under the directions of the Governing Board and shall, once at least every year, and at intervals of not more than fifteen months, be audited by the Comptroller and Auditor-General of India. (2) A copy of the accounts together with the audit report shall be submitted to the Visitor along with the observations, if any, of the Governing Board. (3) Any observations made by the Visitor on the annual accounts shall be brought to notice of the Governing Board and the views of the Governing Board, if any, on such observations shall be submitted to the Visitor. (4) A copy of the annual report and annual accounts together with the audit report, as submitted to the Visitor, shall also be submitted to the Central Government, which shall, as soon as may be, cause the same to be laid before both the Houses of Parliament. (5) The audited annual accounts, after having been laid before both the Houses of Parliament, shall be published in the Gazette of India. (6) A copy of the audited annual accounts shall also be submitted to the Member States. **33. Conditions of service of employees.—(1) Every employee of the University shall be appointed** under a written contract, which shall be lodged with the University and a copy of which shall be furnished to the employee concerned. (2) Any dispute arising out of the contract between the University and any employee shall, at the request of the employee, be referred to a Tribunal of Arbitration consisting of one member appointed by the Governing Board, one member nominated by the employee concerned and an umpire appointed by the Visitor. (3) The decision of the Tribunal shall be final, and no suit shall lie in any civil court in respect of the matters decided by the Tribunal. 11 ----- (4) Every request made by an employee under sub-section (2), shall be deemed to be a submission to arbitration upon the terms of this section within the meaning of the Arbitration and Conciliation Act, 1996 (26 of 1996). (5) The procedure for regulating the work of the Tribunal shall be prescribed by the Statutes. **34. Procedure of appeal and arbitration in disciplinary cases against students.—(1) Any student** or candidate for an examination whose name has been removed from the rolls of the University by the orders or resolution of the Vice-Chancellor, Disciplinary Committee or Examination Committee, as the case may be, and who has been debarred from appearing at the examinations of the University for more than one year, may, within ten days of the date of receipt of such orders or copy of such resolution by him, appeal to the Governing Board and the Governing Board may confirm, modify or reverse the decision of the Vice-Chancellor or the Committee, as the case may be. (2) Any dispute arising out of any disciplinary action taken by the University against a student shall, at the request of such student, be referred to a Tribunal of Arbitration and the provisions of sub-sections (2), (3), (4) and (5) of section 33 shall, as far as may be, apply to a reference made under this sub-section. **35. Right to appeal.—Every employee or student of the University or of a School of Studies or** Centre or Institution maintained by the University or admitted to its privileges shall, notwithstanding anything contained in this Act, have a right to appeal within such time as may be prescribed by the Statutes, to the Governing Board against the decision of any officer or authority of the University or of the Principal or the management of any School of Studies or Centre or an Institution, as the case may be, and thereupon the Governing Board may confirm, modify or reverse the decision appealed against. **36. Provident and pension funds.—The University shall constitute for the benefit of its employees** such provident or pension fund or provide such insurance schemes as it may deem fit in such manner and subject to such conditions as may be prescribed by the Statutes. **37. Disputes as to the constitution of authorities and bodies.—If any question arises as to whether** any person has been duly nominated or appointed as, or is entitled to be a member of any authority or other body of the University, the matter shall be referred to the Visitor whose decision thereon shall be final. **38. Filling of casual vacancies.—All the casual vacancies among the members (other than ex officio** members) of any authority or other body of the University shall be filled, as soon as may be convenient, by the person or body who appoints, nominates or co-opts the members whose place has become vacant and any person so appointed, elected or co-opted to a casual vacancy shall be a member of such authority or body for the residue of the term for which the person whose place he fills would have been a member. **39. Proceedings of authorities or bodies not invalidated by vacancies.—No act or proceedings of** any authority or any other body of the University shall be invalid merely by reason of the existence of any vacancy or vacancies among its members. **40. Protection of action taken in good faith.—No suit or other legal proceedings shall lie against** any officer or employee of the University for anything which is in good faith done or intended to be done in pursuance of any of the provisions of this Act, the Statutes or the Ordinances. **41. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order, published in the Gazette of India, make such provisions, not inconsistent with the provisions of this Act, as appears to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made under this section after the expiry of a period of three years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **42. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid** **before Parliament.—(1) Every Statute, Ordinance or Regulation made under this Act shall be published** in the Gazette of India and the website of the University. 12 ----- (2) Every Statute, Ordinance or Regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or successive sessions aforesaid, both the Houses agree in making any modification in the Statute, Ordinance or Regulation or both Houses agree that the Statute, Ordinance or Regulation should not be made, the Statute, Ordinance or Regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that Statute, Ordinance or Regulation. **43. Transitional provisions.—Notwithstanding anything contained in this Act and the Statutes,—** (a) the first Registrar and the first Finance Officer shall be appointed by the Governing Board and each of the said officers shall hold office for a term of three years; (b) the first Board of School of Studies shall consist of not more than eleven members, who shall be nominated by the Governing Board and they shall hold office for a term of three years; (c) the first Academic Council shall consist of not more than nineteen members, who shall be nominated by the Governing Board and they shall hold office for a term of three years: Provided that if any vacancy occurs in the above offices or authorities, the same shall be filled by appointment or nomination, as the case may be, by the Governing Board, and the person so appointed or nominated shall hold office for so long as the officer or member in whose place he is appointed or nominated would have held office, if such vacancy had not occurred. **44. Repeal of University of Nalanda Act.—(1) The University of Nalanda Act, 2007** (Bihar Act 18 of 2007) is hereby repealed. (2) Notwithstanding such repeal,— (a) all appointments made, orders issued, degrees and other academic distinctions conferred, diplomas and certificates awarded, privileges granted, or other things done under the University of Nalanda Act, 2007 (Bihar Act 18 of 2007), shall be deemed to have been respectively made, issued, conferred, awarded, granted or done under the corresponding provisions of this Act and, except as otherwise provided by or under this Act or the Statutes, continue in force unless and until they are superseded by any order made under this Act or the Statutes; and (b) all proceedings of Selection Committees for the appointment or promotion of teachers that took place before the commencement of this Act and all actions of the Governing Body in respect of the recommendations of such Selection Committees where no orders of appointment on the basis thereof were passed before the commencement of this Act shall, notwithstanding that the procedure for selection has been modified by this Act, be deemed to have been valid but further proceeding in connection with such pending selections shall be taken in accordance with the provisions of this Act and be continued from the stage where they stood immediately before such commencement, except if the concerned authorities take, with the approval of the Visitor, a decision to the contrary. 13 -----

21-Sep-2010

38

The Civil Liability for Nuclear Damage Act, 2010

https://www.indiacode.nic.in/bitstream/123456789/2084/1/201038.pdf

central

## THE CIVIL LIABILITY FOR NUCLEAR DAMAGE ACT, 2010 –––––––––– ARRANGEMENT OF SECTIONS –––––––––– CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent, application and commencement. 2. Definitions. CHAPTER II LIABILITY FOR NUCLEAR DAMAGE 3. Atomic Energy Regulatory Board to notify nuclear incident. 4. Liability of operator. 5. Operator not liable in certain circumstances. 6. Limits of liability. 7. Liability of Central Government. 8. Operator to maintain insurance or financial securities. CHAPTER III CLAIMS COMMISSIONER 9. Compensation for nuclear damage and its adjudication. 10. Qualifications for appointment as Claims Commissioner. 11. Salary, allowances and other terms and conditions of service of Claims Commissioner. 12. Adjudication procedure and powers of Claims Commissioner. CHAPTER IV CLAIMS AND AWARDS 13. Inviting application for claims by Claims Commissioner. 14. Person entitled to make application for nuclear damage. 15. Procedure for making application before Claims Commissioner. 16. Award by Claims Commissioner. 17. Operator's right of recourse. 18. Extinction of right to claim. CHAPTER V NUCLEAR DAMAGE CLAIMS COMMISSION 19. Establishment of Nuclear Damage Claims Commission. 20. Composition of Commission. 21. Term of office. 22. Salary, allowances and other terms and conditions of service of Chairperson and Members. 23. Filling up of vacancies. 24. Resignation and removal. 1 ----- SECTIONS 25. Chairperson or Member deemed to retire from service. 26. Suspension of pension. 27. Prohibition of acting as arbitrator. 28. Prohibition of practice. 29. Powers of Chairperson. 30. Officers and other employees of Commission. 31. Application for compensation before Commission. 32. Adjudication procedure and powers of Commission. 33. Transfer of pending cases to Commission. 34. Proceedings before Claims Commissioner or Commission to be judicial proceedings. 35. Exclusion of jurisdiction of civil courts. 36. Enforcement of awards. 37. Annual report. 38. Dissolution of Commission in certain circumstances. CHAPTER VI OFFENCES AND PENALTIES 39. Offences and penalties. 40. Offences by companies. 41. Offences by Government Departments. 42. Cognizance of offences. CHAPTER VII MISCELLANEOUS 43. Power to give directions. 44. Power to call for information. 45. Exemption from application of this Act. 46. Act to be in addition to any other law. 47. Protection of action taken in good faith. 48. Power to make rules. 49. Power to remove difficulties. 2 ----- ## THE CIVIL LIABILITY FOR NUCLEAR DAMAGE ACT, 2010 # ACT NO. 38 OF 2010 [21st September, 2010.] ## An Act to provide for civil liability for nuclear damage and prompt compensation to the victims of a nuclear incident through a no-fault liability regime channeling liability to the operator, appointment of Claims Commissioner, establishment of Nuclear Damage Claims Commission and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Sixty-first Year of the Republic of India as follows:– CHAPTER I PRELIMINARY **1. Short title, extent, application and commencement.–(1) This Act may be called the Civil** Liability for Nuclear Damage Act, 2010. (2) It extends to the whole of India. (3) It also applies to nuclear damage suffered– (a) in or over the maritime areas beyond the territorial waters of India; (b) in or over the exclusive economic zone of India as referred to in section 7 of the Territorial Waters, Continental Shelf, Exclusive Economic Zone and Other Maritime Zones Act, 1976 (80 of 1976); (c) on board or by a ship registered in India under section 22 of the Merchant Shipping Act, 1958 (44 of 1958) or under any other law for the time being in force; (d) on board or by an aircraft registered in India under clause (d) of sub-section (2) of section 5 of the Aircraft Act, 1934 (22 of 1934) or under any other law for the time being in force; (e) on or by an artificial island, installation or structure under the jurisdiction of India. (4) It applies only to the nuclear installation owned or controlled by the Central Government either by itself or through any authority or corporation established by it or a Government company. _Explanation.–For the purposes of this sub-section, "Government company" shall have the same_ meaning as assigned to it in clause (bb) of sub-section (1) of section 2 of the Atomic Energy Act, 1962 (33 of 1962). (5) It shall come into force on such date as the Central Government may, by notification, appoint; and different dates may be appointed for different provisions of this Act, and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. **2. Definitions.–In this Act, unless the context otherwise requires,-** (a) "Chairperson" means the Chairperson of the Commission appointed under sub-section (1) of section 20; (b) "Claims Commissioner" means the Claims Commissioner appointed under sub-section (2) of section 9; (c) "Commission" means the Nuclear Damage Claims Commission established under section 19; (d) "environment" shall have the same meaning as assigned to it in clause (a) of section 2 of the Environment (Protection) Act, 1986 (29 of 1986); 3 ----- (e) "Member" means a Member of the Commission appointed under sub-section (1) of section 20; (f) "notification" means a notification published in the Official Gazette and the term "notify" shall be construed accordingly; (g) "nuclear damage'' means– (i) loss of life or personal injury (including immediate and long term health impact) to a person; or (ii) loss of, or damage to, property, caused by or arising out of a nuclear incident, and includes each of the following to the extent notified by the Central Government; (iii) any economic loss, arising from the loss or damage referred to in sub-clauses (i) or (ii) and not included in the claims made under those sub-clauses, if incurred by a person entitled to claim such loss or damage; (iv) costs of measures of reinstatement of impaired environment caused by a nuclear incident, unless such impairment is insignificant, if such measures are actually taken or to be taken and not included in the claims made under sub-clause (ii); (v) loss of income derived from an economic interest in any use or enjoyment of the environment, incurred as a result of a significant impairment of that environment caused by a nuclear incident, and not included in the claims under sub-clause (ii); (vi) the costs of preventive measures, and further loss or damage caused by such measures; (vii) any other economic loss, other than the one caused by impairment of the environment referred to in sub-clauses (iv) and (v), in so far as it is permitted by the general law on civil liability in force in India and not claimed under any such law, in the case of sub-clauses (i) to (v) and (vii) above, to the extent the loss or damage arises out of, or results from, ionizing radiation emitted by any source of radiation inside a nuclear installation, or emitted from nuclear fuel or radioactive products or waste in, or of, nuclear material coming from, originating in, or sent to, a nuclear installation, whether so arising from the radioactive properties of such matter, or from a combination of radioactive properties with toxic, explosive or other hazardous properties of such matter; (h) "nuclear fuel" means any material which is capable of producing energy by a self-sustaining chain process of nuclear fission; (i) "nuclear incident" means any occurrence or series of occurrences having the same origin which causes nuclear damage or, but only with respect to preventive measures, creates a grave and imminent threat of causing such damage; (j) "nuclear installation" means– (A) any nuclear reactor other than one with which a means of transport is equipped for use as a source of power, whether for propulsion thereof or for any other purpose; (B) any facility using nuclear fuel for the production of nuclear material, or any facility for the processing of nuclear material, including re-processing of irradiated nuclear fuel; and (C) any facility where nuclear material is stored (other than storage incidental to the carriage of such material). _Explanation.–For the purpose of this clause, several nuclear installations of one operator which are_ located at the same site shall be considered as a single nuclear installation; 4 ----- (k) "nuclear material" means and includes– (i) nuclear fuel (other than natural uranium or depleted uranium) capable of producing energy by a self-sustaining chain process of nuclear fission outside a nuclear reactor, either by itself or in combination with some other material; and (ii) radioactive products or waste; (l) "nuclear reactor" means any structure containing nuclear fuel in such an arrangement that a self sustaining chain process of nuclear fission can occur therein without an additional source of neutrons; (m) "operator", in relation to a nuclear installation, means the Central Government or any authority or corporation established by it or a Government company who has been granted a licence pursuant to the Atomic Energy Act, 1962 (33 of 1962) for the operation of that installation; (n) "prescribed" means prescribed by rules made under this Act; (o) "preventive measures" means any reasonable measures taken by a person after a nuclear incident has occurred to prevent or minimise damage referred to in sub-clauses (i) to (v) and (vii) of clause (g), subject to the approval of the Central Government; (p) "radioactive products or waste" means any radioactive material produced in, or any material made radioactive by exposure to, the radiation incidental to the production or utilisation of nuclear fuel, but does not include radioisotopes which have reached the final stage of fabrication so as to be usable for any scientific, medical, agricultural, commercial or industrial purpose; (q) "Special Drawing Rights" means Special Drawing Rights as determined by the International Monetary Fund. CHAPTER II LIABILITY FOR NUCLEAR DAMAGE **3. Atomic Energy Regulatory Board to notify nuclear incident.–(1) The Atomic Energy** Regulatory Board constituted under the Atomic Energy Act, 1962 (33 of 1962) shall, within a period of fifteen days from the date of occurrence of a nuclear incident, notify such nuclear incident: Provided that where the Atomic Energy Regulatory Board is satisfied that the gravity of threat and risk involved in a nuclear incident is insignificant, it shall not be required to notify such nuclear incident. (2) The Atomic Energy Regulatory Board shall, immediately after the notification under sub-section (1) is issued, cause wide publicity to be given to the occurrence of such nuclear incident, in such manner as it may deem fit. **4. Liability of operator.–(1) The operator of the nuclear installation shall be liable for nuclear** damage caused by a nuclear incident – (a) in that nuclear installation; or (b) involving nuclear material coming from, or originating in, that nuclear installation and occurring before – (i) the liability for nuclear incident involving such nuclear material has been assumed, pursuant to a written agreement, by another operator; or (ii) another operator has taken charge of such nuclear material; or (iii) the person duly authorised to operate a nuclear reactor has taken charge of the nuclear material intended to be used in that reactor with which means of transport is equipped for use as a source of power, whether for propulsion thereof or for any other purpose; or 5 ----- (iv) such nuclear material has been unloaded from the means of transport by which it was sent to a person within the territory of a foreign State; or (c) involving nuclear material sent to that nuclear installation and occurring after– (i) the liability for nuclear incident involving such nuclear material has been transferred to that operator, pursuant to a written agreement, by the operator of another nuclear installation; or (ii) that operator has taken charge of such nuclear material; or (iii) that operator has taken charge of such nuclear material from a person operating a nuclear reactor with which a means of transport is equipped for use as a source of power, whether for propulsion thereof or for any other purpose; or (iv) such nuclear material has been loaded, with the written consent of that operator, on the means of transport by which it is to be carried from the territory of a foreign State. (2) Where more than one operator is liable for nuclear damage, the liability of the operators so involved shall, in so far as the damage attributable to each operator is not separable, be joint and several: Provided that the total liability of such operators shall not exceed the extent of liability specified under sub-section (2) of section 6. (3) Where several nuclear installations of one and the same operator are involved in a nuclear incident, such operator shall, in respect of each such nuclear installation, be liable to the extent of liability specified under sub-section (2) of section 6. (4) The liability of the operator of the nuclear installation shall be strict and shall be based on the principle of no-fault liability. _Explanation.–For the purposes of this section,–_ (a) where nuclear damage is caused by a nuclear incident occurring in a nuclear installation on account of temporary storage of material-in-transit in such installation, the person responsible for transit of such material shall be deemed to be the operator; (b) where a nuclear damage is caused as a result of nuclear incident during the transportation of nuclear material, the consignor shall be deemed to be the operator; (c) where any written agreement has been entered into between the consignor and the consignee or, as the case may be, the consignor and the carrier of nuclear material, the person liable for any nuclear damage under such agreement shall be deemed to be the operator; (d) where both nuclear damage and damage other than nuclear damage have been caused by a nuclear incident or, jointly by a nuclear incident and one or more other occurrences, such other damage shall, to the extent it is not separable from the nuclear damage, be deemed to be a nuclear damage caused by such nuclear incident. **5. Operator not liable in certain circumstances.–(1) An operator shall not be liable for any nuclear** damage where such damage is caused by a nuclear incident directly due to (i) a grave natural disaster of an exceptional character; or (ii) an act of armed conflict, hostility, civil war, insurrection or terrorism. (2) An operator shall not be liable for any nuclear damage caused to– (i) the nuclear installation itself and any other nuclear installation including a nuclear installation under construction, on the site where such installation is located; and 6 ----- (ii) to any property on the same site which is used or to be used in connection with any such installation; or (iii) to the means of transport upon which the nuclear material involved was carried at the time of nuclear incident: Provided that any compensation liable to be paid by an operator for a nuclear damage shall not have the effect of reducing the amount of his liability in respect of any other claim for damage under any other law for the time being in force. (3) Where any nuclear damage is suffered by a person on account of his own negligence or from his own acts of commission or omission, the operator shall not be liable to such person. **6. Limits of liability.–(1) The maximum amount of liability in respect of each nuclear incident shall** be the rupee equivalent of three hundred million Special Drawing Rights or such higher amount as the Central Government may specify by notification: Provided that the Central Government may take additional measures, where necessary, if the compensation to be awarded under this Act exceeds the amount specified under this sub-section. (2) The liability of an operator for each nuclear incident shall be– (a) in respect of nuclear reactors having thermal power equal to or above ten MW, rupees one thousand five hundred crores; (b) in respect of spent fuel reprocessing plants, rupees three hundred crores; (c) in respect of the research reactors having thermal power below ten MW, fuel cycle facilities other than spent fuel reprocessing plants and transportation of nuclear materials, rupees one hundred crores: Provided that the Central Government may review the amount of operator's liability from time to time and specify, by notification, a higher amount under this sub-section: Provided further that the amount of liability shall not include any interest or cost of proceedings. **7. Liability of Central Government.–(1) The Central Government shall be liable for nuclear damage** in respect of a nuclear incident,– (a) where the liability exceeds the amount of liability of an operator specified under sub-section (2) of section 6, to the extent such liability exceeds such liability of the operator; (b) occurring in a nuclear installation owned by it; and (c) occurring on account of causes specified in clauses (i) and (ii) of sub-section (1) of section 5: Provided that the Central Government may, by notification, assume full liability for a nuclear installation not operated by it if it is of the opinion that it is necessary in public interest. (2) For the purpose of meeting part of its liability under clause (a) or clause (c) of sub-section (1), the Central Government may establish a fund to be called the Nuclear Liability Fund by charging such amount of levy from the operators, in such manner, as may be prescribed. **8. Operator to maintain insurance or financial securities.–(1) The operator shall, before he begins** operation of his nuclear installation, take out insurance policy or such other financial security or combination of both, covering his liability under sub-section (2) of section 6, in such manner as may be prescribed. (2) The operator shall from time to time renew the insurance policy or other financial security referred to in sub-section (1), before the expiry of the period of validity thereof. 7 ----- (3) The provisions of sub-sections (1) and (2) shall not apply to a nuclear installation owned by the Central Government. _Explanation.–For the purposes of this section, "financial security" means a contract of indemnity or_ guarantee, or shares or bonds or such instrument as may be prescribed or any combination thereof. CHAPTER III CLAIMS COMMISSIONER **9. Compensation for nuclear damage and its adjudication.–(1) Whoever suffers nuclear damage** shall be entitled to claim compensation in accordance with the provisions of this Act. (2) For the purposes of adjudicating upon claims for compensation in respect of nuclear damage, the Central Government shall, by notification, appoint one or more Claims Commissioners for such area, as may be specified in that notification. **10. Qualifications for appointment as Claims Commissioner.–A person shall not be qualified for** appointment as a Claims Commissioner unless he– (a) is, or has been, a District Judge; or (b) in the service of the Central Government and has held the post not below the rank of Additional Secretary to the Government of India or any other equivalent post in the Central Government. **11. Salary, allowances and other terms and conditions of service of Claims Commissioner.–The** salary and allowances payable to and other terms and conditions of service of Claims Commissioner shall be such as may be prescribed. **12. Adjudication procedure and powers of Claims Commissioner.–(1) For the purposes of** adjudication of claims under this Act, the Claims Commissioner shall follow such procedure as may be prescribed. (2) For the purpose of holding inquiry, the Claims Commissioner may associate with him such persons having expertise in the nuclear field or such other persons and in such manner as may be prescribed. (3) Where any person is associated under sub-section (2), he shall be paid such remuneration, fee or allowance, as may be prescribed. (4) The Claims Commissioner shall, for the purposes of discharging his functions under this Act, have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit, in respect of the following matters, namely:– (a) summoning and enforcing the attendance of any person and examining him on oath; (b) the discovery and production of documents; (c) receiving evidence on affidavits; (d) requisitioning any public record or copies thereof from any court or office; (e) issuing of commission for the examination of any witness; (f) any other matter which may be prescribed. (5) The Claims Commissioner shall be deemed to be a civil court for the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). 8 ----- CHAPTER IV CLAIMS AND AWARDS **13. Inviting application for claims by Claims Commissioner.–After the notification of nuclear** incident under sub-section (1) of section 3, the Claims Commissioner, having jurisdiction over the area, shall cause wide publicity to be given, in such manner as he deems fit, for inviting applications for claiming compensation for nuclear damage. **14. Person entitled to make application for nuclear damage.–An application for compensation** before the Claims Commissioner or the Commission, as the case may be, in respect of nuclear damage may be made by– (a) a person who has sustained injury; or (b) the owner of the property to which damage has been caused; or (c) the legal representatives of the deceased; or (d) any agent duly authorised by such person or owner or legal representatives. **15. Procedure for making application before Claims Commissioner.–(1) Every application for** compensation before the Claims Commissioner for nuclear damage shall be made in such form, containing such particulars and accompanied by such documents, as may be prescribed. (2) Subject to the provisions of section 18, every application under sub-section (1) shall be made within a period of three years from the date of knowledge of nuclear damage by the person suffering such damage. **16. Award by Claims Commissioner.–(1) On receipt of an application under sub-section (1) of** section 15, the Claims Commissioner shall, after giving notice of such application to the operator and affording an opportunity of being heard to the parties, dispose of the application within a period of three months from the date of such receipt and make an award accordingly. (2) While making an award under this section, the Claims Commissioner shall not take into consideration any benefit, reimbursement or amount received by the applicant in pursuance of contract of insurance taken by him or for members of his family or otherwise. (3) Where an operator is likely to remove or dispose of his property with the object of evading payment by him of the amount of the award, the Claims Commissioner may, in accordance with the provisions of rules 1 to 4 of Order XXXIX of the First Schedule to the Code of Civil Procedure, 1908 (5 of 1908), grant a temporary injunction to restrain such act. (4) The Claims Commissioner shall arrange to deliver copies of the award to the parties within a period of fifteen days from the date of the award. (5) Every award made under sub-section (1) shall be final. **17. Operator's right of recourse.–The operator of the nuclear installation, after paying the** compensation for nuclear damage in accordance with section 6, shall have a right of recourse where– (a) such right is expressly provided for in a contract in writing; (b) the nuclear incident has resulted as a consequence of an act of supplier or his employee, which includes supply of equipment or material with patent or latent defects or sub-standard services; (c) the nuclear incident has resulted from the act of commission or omission of an individual done with the intent to cause nuclear damage. 9 ----- **18. Extinction of right to claim.–The right to claim compensation for nuclear damage shall** extinguish, if such claim is not made within a period of– (a) ten years, in the case of damage to property; (b) twenty years, in the case of personal injury to any person, from the date of occurrence of the incident notified under sub-section (1) of section 3: Provided that where a nuclear damage is caused by a nuclear incident involving nuclear material which, prior to such nuclear incident, had been stolen, lost, jettisoned or abandoned, the said period of ten years shall be computed from the date of such nuclear incident, but, in no case, it shall exceed a period of twenty years from the date of such theft, loss, jettison or abandonment. CHAPTER V NUCLEAR DAMAGE CLAIMS COMMISSION **19. Establishment of Nuclear Damage Claims Commission.–Where the Central Government,** having regard to the injury or damage caused by a nuclear incident, is of the opinion that it is expedient in public interest that such claims for such damage be adjudicated by the Commission instead of a Claims Commissioner, it may, by notification, establish a Commission for the purpose of this Act. **20. Composition of Commission.–(1) The Commission shall consist of a Chairperson and such other** Members, not exceeding six, as the Central Government may, by notification, appoint. (2) The Chairperson and other Members of the Commission shall be appointed on the recommendation of a Selection Committee consisting of three experts from amongst the persons having at least thirty years of experience in nuclear science and a retired Supreme Court Judge. (3) A person shall not be qualified for appointment as the Chairperson of the Commission unless he has attained the age of fifty-five years and is or has been or qualified to be a Judge of a High Court: Provided that no appointment of a sitting judge shall be made except after consultation with the Chief Justice of India. (4) A person shall not be qualified for appointment as a Member unless he has attained the age of fifty-five years and– (a) has held or is holding or qualified to hold, the post of Additional Secretary to the Government of India or any other equivalent post in the Central Government and possesses special knowledge in law relating to nuclear liability arising out of nuclear incident; or (b) has been a Claims Commissioner for five years. **21. Term of office.–The Chairperson or a Member, as the case may be, shall hold office as such for a** term of three years from the date on which he enters upon his office and shall be eligible for reappointment for another term of three years: Provided that no person shall hold office as such Chairperson or Member after he has attained the age of sixty-seven years. **22. Salary, allowances and other terms and conditions of service of Chairperson and Members.–** The salary and allowances payable to and other terms and conditions of service, including pension, gratuity and other retirement benefits, of the Chairperson and other Members shall be such as may be prescribed: Provided that no salary, allowances and other terms and conditions of service of the Chairperson or other Members shall be varied to his disadvantage after his appointment. 10 ----- **23. Filling up of vacancies.–If, for reasons other than temporary absence, any vacancy occurs in the** office of the Chairperson or Member, as the case may be, the Central Government shall appoint another person in accordance with the provisions of this Act to fill such vacancy and the proceedings may be continued before the Commission from the stage at which it was, before the vacancy is filled. **24. Resignation and removal.–(1) The Chairperson or a Member may, by a notice in writing under** his hand addressed to the Central Government, resign his office: Provided that the Chairperson or the Member shall, unless he is permitted by the Central Government to relinquish his office sooner, continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is earlier. (2) The Central Government shall remove from office the Chairperson or a Member who– (a) has been adjudged an insolvent; or (b) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or (c) has become physically or mentally incapable of acting as a Member; or (d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a Member; or (e) has so abused his position as to render his continuance in office detrimental to the public interest: Provided that no Member shall be removed under clause (d) or clause (e) unless he has been given an opportunity of being heard in the matter. **25. Chairperson or Member deemed to retire from service.–A person who, immediately before** the date of assuming office as a Chairperson or a Member, was in service of the Government, shall be deemed to have retired from service on the date on which he enters upon office as such, but his subsequent service as the Chairperson or a Member shall be reckoned as continuing approved service counting for pension in service to which he belonged. **26. Suspension of pension.–If a person who, immediately before the date of assuming office as the** Chairperson or a Member was in receipt of or being eligible so to do, has opted to draw, a pension, other than a disability or wound pension, in respect of any previous service under the Central Government, his salary in respect of service as the Chairperson or a Member shall be reduced– (a) by the amount of that pension; and (b) if he had, before assuming office, received, in lieu of a portion of the pension due to him in respect of such previous service, the commuted value thereof, by the amount of that portion of the pension. **27. Prohibition of acting as arbitrator.–No person shall, while holding office as a Chairperson or a** Member, act as an arbitrator in any matter. **28. Prohibition of practice.–On ceasing to hold office, the Chairperson or a Member shall not** appear, act or plead before the Commission. **29. Powers of Chairperson.–The Chairperson shall have the power of superintendence in the general** administration of the Commission and exercise such powers as may be prescribed. **30. Officers and other employees of Commission.–(1) The Central Government shall provide the** Commission with such officers and other employees as it may deem fit. 11 ----- (2) The salary and allowances payable to and the terms and other conditions of service of officers and other employees of the Commission shall be such as may be prescribed. **31. Application for compensation before Commission.–(1) Every application for compensation** before the Commission for nuclear damage shall be made in such form, containing such particulars and accompanied by such documents, as may be prescribed. (2) Subject to the provisions of section 18, every application under sub-section (1) shall be made within a period of three years from the date of knowledge of nuclear damage by the person suffering such damage. **32. Adjudication procedure and powers of Commission.–(1) The Commission shall have original** jurisdiction to adjudicate upon every application for compensation filed before it under sub-section (1) of section 31 or transferred to it under section 33, as the case may be. (2) Upon transfer of cases to the Commission under section 33, the Commission shall hear such applications from the stage at which it was before such transfer. (3) The Chairperson may constitute benches comprising of not more than three Members of the Commission for the purpose of hearing of claims and any decision thereon shall be rendered by a majority of the Members hearing such claims. (4) The Commission shall not be bound by the procedure laid down in the Code of Civil Procedure, 1908 (5 of 1908) but shall be guided by the principles of natural justice and subject to the other provisions of this Act and of any rules made thereunder, the Commission shall have the power to regulate its own procedure including the places and the times at which it shall have its sittings. (5) The Commission shall have, for the purposes of discharging its functions under this Act, the same powers as are vested in a civil court under the Code of Civil Procedure, 1908, (5 of 1908) while trying a suit, in respect of the following matters, namely:– (a) summoning and enforcing the attendance of any person and examining him on oath; (b) the discovery and production of documents; (c) receiving evidence on affidavits; (d) requisitioning any public record or copies thereof from any court or office; (e) issuing of commission for the examination of any witness; (f) any other matter which may be prescribed. (6) The Commission shall, after giving notice of application to the operator and after affording an opportunity of being heard to the parties, dispose of such application within a period of three months from the date of such receipt and make an award accordingly. (7) While making an award under this section, the Commission shall not take into consideration any benefit, reimbursement or amount received by the applicant in pursuance of any contract of insurance or otherwise. (8) Where an operator is likely to remove or dispose of his property with the object of evading payment by him of the amount of the award, the Commission may, in accordance with the provisions of rules 1 to 4 of Order XXXIX of the First Schedule to the Code of Civil Procedure, 1908 (5 of 1908), grant a temporary injunction to restrain such act. (9) The Commission shall arrange to deliver copies of the award to the parties concerned within a period of fifteen days from the date of such award. (10) Every award made under sub-section (6) shall be final. 12 ----- **33. Transfer of pending cases to Commission.–Every application for compensation pending before** the Claims Commissioner immediately before the date of establishment of the Commission under section 19 shall stand transferred on that date to the Commission. **34. Proceedings before Claims Commissioner or Commission to be judicial proceedings.–Every** proceeding before the Claims Commissioner or the Commission under this Act shall be deemed to be judicial proceeding within the meaning of sections 193, 219 and 228 of, and for the purposes of section 196 of, the Indian Penal Code (45 of 1860). **35. Exclusion of jurisdiction of civil courts.–Save as otherwise provided in section 46, no civil court** (except the Supreme Court and a High Court exercising jurisdiction under articles 226 and 227 of the Constitution) shall have jurisdiction to entertain any suit or proceedings in respect of any matter which the Claims Commissioner or the Commission, as the case may be, is empowered to adjudicate under this Act and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act. **36. Enforcement of awards.–(1) When an award is made under sub-section (1) of section 16 or** under sub-section (6) of section 32,– (a) the insurer or any person, as the case may be, who under the contract of insurance or financial security under section 8 is required to pay any amount in terms of such award and to the extent of his liability under such contract, shall deposit that amount within such time and in such manner as the Claims Commissioner or the Commission, as the case may be, may direct; and (b) the operator shall, subject to the maximum liability specified under sub-section (2) of section 6, deposit the remaining amount by which such award exceeds the amount deposited under clause (a). (2) Where any person referred to in sub-section (1) fails to deposit the amount of award within the period specified in the award, such amount shall be recoverable from such person as arrears of land revenue. (3) The amount deposited under sub-section (1) shall be disbursed to such person as may be specified in the award within a period of fifteen days from the date of such deposit. **37. Annual report.–The Commission shall prepare, in such form and at such time in each financial** year, as may be prescribed, an annual report giving full account of its activities during that financial year and submit a copy thereof to the Central Government which shall cause the same to be laid before each House of Parliament. **38. Dissolution of Commission in certain circumstances.–(1) Where the Central Government is** satisfied that the purpose for which the Commission established under section 19 has served its purpose, or where the number of cases pending before such Commission is so less that it would not justify the cost of its continued function, or where it considers necessary or expedient so to do, the Central Government may, by notification, dissolve the Commission. (2) With effect from the date of notification of dissolution of Commission under sub-section (1),– (a) the proceeding, if any, pending before the Commission as on the date of such notification shall be transferred to the Claims Commissioner to be appointed by the Central Government under sub-section (2) of section 9; (b) the Chairperson and all Members of the Commission shall be deemed to have vacated their offices as such and they shall not be entitled to any compensation for premature termination of their office; (c) officers and other employees of the Commission shall be transferred to such other authority or offices of the Central Government, in such manner, as may be prescribed: 13 ----- Provided that the officers and other employees so transferred, shall be entitled to the same terms and conditions of service as would have been held by them in the Commission: Provided further that where an officer or an employee of the Commission refuses to join the services in such other authority or office, he shall be deemed to have resigned and shall not be entitled to any compensation for premature termination of contract of service; (d) all assets and liabilities of the Commission shall vest in the Central Government. (3) Notwithstanding the dissolution of the Commission under sub-section (1), anything done or any action taken or purported to have been done or taken including any order made or notice issued or any appointment, confirmation or declaration made or any document or instrument executed or any direction given by the Commission before such dissolution, shall be deemed to have been validly done or taken. (4) Nothing in this section shall be construed to prevent the Central Government to establish the Commission subsequent to the dissolution of the Commission in accordance with the provisions of this Act. CHAPTER VI OFFENCES AND PENALTIES **39. Offences and penalties.–(1) Whoever–** (a) contravenes any rule made or any direction issued under this Act; or (b) fails to comply with the provisions of section 8; or (c) fails to deposit the amount under section 36, shall be punishable with imprisonment for a term which may extend to five years or with fine or with both. (2) Whoever fails to comply with any direction issued under section 43 or obstructs any authority or person in the exercise of his powers under this Act shall be punishable with imprisonment for a term which may extend to one year or with fine or with both. **40. Offences by companies.–(1) Where an offence under this Act has been committed by a company,** every person who at the time the offence was committed, was directly in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment under this Act, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. _Explanation.–For the purposes of this section,–_ (a) "company" means any body corporate and includes a firm or other association of individuals; (b) "director", in relation to a firm, means a partner in the firm. **41. Offences by Government Departments.–Where an offence under this Act has been committed** by any Department of the Government, the Head of the Department shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: 14 ----- Provided that nothing contained in this section shall render such Head of the Department liable to any punishment if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence. **42. Cognizance of offences.–No court inferior to that of a Metropolitan Magistrate or a Judicial** Magistrate of the first class shall try any offence under this Act: Provided that cognizance of such offence shall not be taken except on a complaint made by the Central Government or any authority or officer authorised in this behalf by that Government. CHAPTER VII MISCELLANEOUS **43. Power to give directions.–The Central Government may, in exercise of its powers and** performance of its functions under this Act, issue such directions, as it may deem fit, for the purposes of this Act, to any operator, person, officer, authority or body and such operator, person, officer, authority or body shall be bound to comply with such directions. **44. Power to call for information.–The Central Government may call for such information from an** operator as it may deem necessary. **45. Exemption from application of this Act.–The Central Government may, by notification, exempt** any nuclear installation from the application of this Act where, having regard to small quantity of nuclear material, it is of the opinion that the risk involved is insignificant. **46. Act to be in addition to any other law.–The provisions of this Act shall be in addition to, and** not in derogation of, any other law for the time being in force, and nothing contained herein shall exempt the operator from any proceeding which might, apart from this Act, be instituted against such operator. **47. Protection of action taken in good faith.–No suit, prosecution or other legal proceedings shall** lie against the Central Government or the person, officer or authority in respect of anything done by it or him in good faith in pursuance of this Act or of any rule or order made, or direction issued, thereunder. **48. Power to make rules.–(1) The Central Government may, by notification, make rules for carrying** out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing powers such rules may provide for – (a) the other financial security and the manner thereof under sub-section (1) of section 8; (b) the salary and allowances payable to and the other terms and conditions of service of Claims Commissioner under section 11; (c) the procedure to be followed by Claims Commissioner under sub-section (1) of section 12; (d) the person to be associated by Claims Commissioner and the manner thereof, under sub section (2) of section 12; (e) the remuneration, fee or allowances of associated person under sub-section (3) of section 12; (f) any other matter under clause (f) of sub-section (4) of section 12; (g) the form of application, the particulars it shall contain and the documents it shall accompany, under sub-section (1) of section 15; (h) the salary and allowances payable to and other terms and conditions of service of Chairperson and other Members, under section 22; (i) the powers of Chairperson under section 29; 15 ----- (j) the salary and allowances payable to and the terms and other conditions of service of officers and other employees of the Commission, under sub-section (2) of section 30; (k) the form of application, the particulars it shall contain and the documents it shall accompany, under sub-section (1) of section 31; (l) any other matter under clause (f) of sub-section (5) of section 32; (m) the form and the time for preparing annual report by the Commission under section 37; (n) the manner of transfer of officers and other employees of the Commission under clause (c) of sub-section (2) of section 38. (3) Every rule made under this Act by the Central Government shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **49. Power to remove difficulties.–(1) If any difficulty arises in giving effect to the provisions of this** Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulty: Provided that no order shall be made under this section after the expiry of three years from the commencement of this Act. (2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament. 16 -----

26-Sep-2010

42

The Foreign Contribution (Regulation) Act, 2010

https://www.indiacode.nic.in/bitstream/123456789/2098/1/a2010-42.pdf

central

# THE FOREIGN CONTRIBUTION (REGULATION) ACT, 2010 ____________ # ARRANGEMENT OF SECTIONS ____________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent, application and commencement. 2. Definitions. CHAPTER II REGULATION OF FOREIGN CONTRIBUTION AND FOREIGN HOSPITALITY 3. Prohibition to accept foreign contribution. 4. Persons to whom section 3 shall not apply. 5. Procedure to notify an organisation of a political nature. 6. Restriction on acceptance of foreign hospitality. 7. Prohibition to transfer foreign contribution to other person. 8. Restriction to utilise foreign contribution for administrative purpose. 9. Power of Central Government to prohibit receipt of foreign contribution, etc., in certain cases. 10. Power to prohibit payment of currency received in contravention of the Act. CHAPTER III REGISTRATION 11. Registration of certain persons with Central Government. 12. Grant of certificate of registration. 12A. Power of Central Government to require Aadhaar number, etc., as identification document. 13. Suspension of certificate. 14. Cancellation of certificate. 14A. Surrender of certificate. 15. Management of foreign contribution of person whose certificate has been cancelled or surrendered. 16. Renewal of certificate. CHAPTER IV ACCOUNTS, INTIMATION, AUDIT AND DISPOSAL OF ASSETS, ETC. 17. Foreign contribution through scheduled bank. 18. Intimation. 19. Maintenance of accounts. 20. Audit of accounts. 21. Intimation by candidate for election. 22. Disposal of assets created out of foreign contribution. 1 ----- CHAPTER V INSPECTION, SEARCH AND SEIZURE SECTIONS 23. Inspection of accounts or records. 24. Seizure of accounts or records. 25. Seizure of article or currency or security received in contravention of the Act. 26. Disposal of seized article or currency or security. 27. Seizure to be made in accordance with Act 2 of 1974. CHAPTER VI ADJUDICATION 28. Confiscation of article or currency or security obtained in contravention of the Act. 29. Adjudication of confiscation. 30. Procedure for confiscation. CHAPTER VII APPEAL AND REVISION 31. Appeal. 32. Revision of orders by Central Government. CHAPTER VIII OFFENCES AND PENALTIES 33. Making of false statement, declaration or delivering false accounts. 34. Penalty for article or currency or security obtained in contravention of section 10. 35. Punishment for contravention of any provision of the Act. 36. Power to impose additional fine where article or currency or security is not available for confiscation. 37. Penalty for offences where no separate punishment has been provided. 38. Prohibition of acceptance of foreign contribution. 39. Offences by companies. 40. Bar on prosecution of offences under the Act. 41. Composition of certain offences. CHAPTER IX MISCELLANEOUS 42. Power to call for information or document. 43. Investigation into cases under the Act. 44. Returns by prescribed authority to Central Government. 45. Protection of action taken in good faith. 46. Power of Central Government to give directions. 47. Delegation of powers. 48. Power to make rules. 2 ----- SECTIONS 49. Orders and rules to be laid before Parliament. 50. Power to exempt in certain cases. 51. Act not to apply to certain Government transactions. 52. Application of other laws not barred. 53. Power to remove difficulties. 54. Repeal and saving. 3 ----- # THE FOREIGN CONTRIBUTION (REGULATION) ACT, 2010 ACT NO. 42 OF 2010 [26th September, 2010.] # An Act to consolidate the law to regulate the acceptance and utilisation of foreign contribution or foreign hospitality by certain individuals or associations or companies and to prohibit acceptance and utilisation of foreign contribution or foreign hospitality for any activities detrimental to the national interest and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Sixty-first Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent, application and commencement.—(1) This Act may be called the Foreign** Contribution (Regulation) Act, 2010. (2) It extends to the whole of India, and it shall also apply to— (a) citizens of India outside India; and (b) associate branches or subsidiaries, outside India, of companies or bodies corporate, registered or incorporated in India. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint: Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. **2. Definitions.—(1) In this Act, unless the context otherwise requires,—** (a) “association” means an association of individuals, whether incorporated or not, having an office in India and includes a society, whether registered under the Societies Registration Act, 1860 (21 of 1860), or not, and any other organisation, by whatever name called; (b) “authorised person in foreign exchange” means an authorised person referred to in clause (c) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999); (c) “bank” means a banking company as referred to in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949); (d) “candidate for election” means a person who has been duly nominated as a candidate for election to any Legislature; (e) “certificate” means certificate of registration granted under sub-section (3) of section 12; (f) “company” shall have the meaning assigned to it under clause (17) of section 2 of the Income-tax Act, 1961 (43 of 1961); 1. 1st May, 2011, vide notification No. S.O. 909(E), dated 29th April, 2011, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 4 ----- (g) “foreign company” means any company or association or body of individuals incorporated outside India and includes— (i) a foreign company within the meaning of section 591 of the Companies Act, 1956 (1 of 1956); (ii) a company which is a subsidiary of a foreign company; (iii) the registered office or principal place of business of a foreign company referred to in sub-clause (i) or company referred to in sub-clause (ii); (iv) a multi-national corporation. _Explanation.—For the purposes of this sub-clause, a corporation incorporated in a foreign_ country or territory shall be deemed to be a multi-national corporation if such corporation,— (a) has a subsidiary or a branch or a place of business in two or more countries or territories; or (b) carries on business, or otherwise operates, in two or more countries or territories; (h) “foreign contribution” means the donation, delivery or transfer made by any foreign source,— (i) of any article, not being an article given to a person as a gift for his personal use, if the market value, in India, of such article, on the date of such gift, is not more than such sum as may be specified from time to time, by the Central Government by the rules made by it in this behalf; (ii) of any currency, whether Indian or foreign; (iii) of any security as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and includes any foreign security as defined in clause (o) of section 2 of` the Foreign Exchange Management Act, 1999 (42 of 1999). _Explanation_ 1.—A donation, delivery or transfer of any article, currency or foreign security referred to in this clause by any person who has received it from any foreign source, either directly or through one or more persons, shall also be deemed to be foreign contribution within the meaning of this clause. _Explanation 2.—The interest accrued on the foreign contribution deposited in any bank referred_ to in sub-section (1) of section 17 or any other income derived from the foreign contribution or interest thereon shall also be deemed to be foreign contribution within the meaning of this clause. _Explanation 3.—Any amount received, by any person from any foreign source in India, by way_ of fee (including fees charged by an educational institution in India from foreign student) or towards cost in lieu of goods or services rendered by such person in the ordinary course of his business, trade or commerce whether within India or outside India or any contribution received from an agent of a foreign source towards such fee or cost shall be excluded from the definition of foreign contribution within the meaning of this clause; (i) “foreign hospitality” means any offer, not being a purely casual one, made in cash or kind by a foreign source for providing a person with the costs of travel to any foreign country or territory or with free boarding, lodging, transport or medical treatment; (j) “foreign source” includes,— (i) the Government of any foreign country or territory and any agency of such Government; (ii) any international agency, not being the United Nations or any of its specialised agencies, the World Bank, International Monetary Fund or such other agency as the Central Government may, by notification, specify in this behalf; 5 ----- (iii) a foreign company; (iv) a corporation, not being a foreign company, incorporated in a foreign country or territory; (v) a multi-national corporation referred to in sub-clause (iv) of clause (g); (vi) a company within the meaning of the Companies Act, 1956 (1 of 1956), and more than one-half of the nominal value of its share capital is held, either singly or in the aggregate, by one or more of the following, namely:— (A) the Government of a foreign country or territory; (B) the citizens of a foreign country or territory; (C) corporations incorporated in a foreign country or territory; (D) trusts, societies or other associations of individuals (whether incorporated or not), formed or registered in a foreign country or territory; (E) foreign company; 1[Provided that where the nominal value of share capital is within the limits specified for foreign investment under the Foreign Exchange Management Act, 1999 (42 of 1999), or the rules or regulations made thereunder, then, notwithstanding the nominal value of share capital of a company being more than one-half of such value at the time of making the contribution, such company shall not be a foreign source;] (vii) a trade union in any foreign country or territory, whether or not registered in such foreign country or territory; (viii) a foreign trust or a foreign foundation, by whatever name called, or such trust or foundation mainly financed by a foreign country or territory; (ix) a society, club or other association of individuals formed or registered outside India; (x) a citizen of a foreign country; (k) “Legislature” means— (A) either House of Parliament; (B) the Legislative Assembly of a State, or in the case of a State having a Legislative Council, either House of the Legislature of that State; (C) Legislative Assembly of a Union territory constituted under the Government of Union Territories Act, 1963 (20 of 1963); (D) Legislative Assembly for the National Capital Territory of Delhi referred to in the Government of National Capital Territory of Delhi Act, 1991 (1 of 1992); (E) Municipality as defined in clause (e) of article 243P of the Constitution; (F) District Councils and Regional Councils in the States of Assam, Meghalaya, Tripura and Mizoram as provided in the Sixth Schedule to the Constitution; (G) Panchayat as defined in clause (d) of article 243 of the Constitution; or (H) any other elective body as may be notified by the Central Government; (l) “notification” means notification published in the Official Gazette and the expression “notify” shall be construed accordingly; (m) “person” includes— 1. Ins. by Act 28 of 2016, s. 236 (w.r.e.f. 5-8-1976 vide the Act 13 of 2018, s. 220.) 6 ----- (i) an individual; (ii) a Hindu undivided family; (iii) an association; (iv) a company registered under section 25 of the Companies Act, 1956 (1 of 1956); (n) “political party” means— (i) an association or body of individual citizens of India— (A) to be registered with the Election Commission of India as a political party under section 29A of the Representation of the People Act, 1951 (43 of 1951); or (B) which has set up candidates for election to any Legislature, but is not so registered or deemed to be registered under the Election Symbols (Reservation and Allotment) Order, 1968; (ii) a political party mentioned in column 2 of Table 1 and Table 2 to the notification of the Election Commission of India No. 56/J&K/02, dated the 8th August, 2002, as in force for the time being; (o) “prescribed” means prescribed by rules made under this Act; (p) “prescribed authority” means an authority specified as such by rules made by the Central Government under this Act; (q) “registered newspaper” means a newspaper registered under the Press and Registration of Books Act, 1867 (25 of 1867); (r) “relative” has the meaning assigned to it in clause (41) of section 2 of the Companies Act, 1956 (1 of 1956); (s) “scheduled bank” shall have the meaning assigned to it under clause (e) of section 2 of the Reserve Bank of India Act, 1934 (2 of 1934); (t) “subsidiary” and “associate” shall have the meanings, respectively assigned to them in the Companies Act, 1956 (1 of 1956); (u) “trade union” means a trade union registered under the Trade Unions Act, 1926 (16 of 1926); (2) Words and expressions used herein and not defined in this Act but defined in the Representation of the People Act, 1950 (43 of 1950) or the Representation of the People Act, 1951 (43 of 1951) or the Foreign Exchange Management Act, 1999 (42 of 1999) shall have the meanings respectively assigned to them in those Acts. CHAPTER II REGULATION OF FOREIGN CONTRIBUTION AND FOREIGN HOSPITALITY **3. Prohibition to accept foreign contribution.—(1) No foreign contribution shall be accepted by** any— (a) candidate for election; (b) correspondent, columnist, cartoonist, editor, owner, printer or publisher of a registered newspaper; 1[(c) public servant, Judge, Government servant or employee of any corporation or any other body controlled or owned by the Government;] (d) member of any Legislature; 1. Subs. by Act 33 of 2020, s. 2, for clause (c) (w.e.f. 29-9-2020). 7 ----- (e) political party or office-bearer thereof; (f) organisation of a political nature as may be specified under sub-section (1) of section 5 by the Central Government; (g) association or company engaged in the production or broadcast of audio news or audio visual news or current affairs programmes through any electronic mode, or any other electronic form as defined in clause (r) of sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000) or any other mode of mass communication; (h) correspondent or columnist, cartoonist, editor, owner of the association or company referred to in clause (g). 1[Explanation.1—For the purpose of clause (c), "public servant" means a public servant as defined in section 21 of the Indian Penal Code (45 of 1860). _Explanation 2.—In clause (c) and section 6, the expression "corporation" means a corporation owned_ or controlled by the Government and includes a Government company as defined in clause (45) of section 2 of the Companies Act, 2013 (18 of 2013).] (2) (a) No person, resident in India, and no citizen of India resident outside India, shall accept any foreign contribution, or acquire or agree to acquire any currency from a foreign source, on behalf of any political party, or any person referred to in sub-section (1), or both. (b) No person, resident in India, shall deliver any currency, whether Indian or foreign, which has been accepted from any foreign source, to any person if he knows or has reasonable cause to believe that such other person intends, or is likely, to deliver such currency to any political party or any person referred to in sub-section (1), or both. (c) No citizen of India resident outside India shall deliver any currency, whether Indian or foreign, which has been accepted from any foreign source, to— (i) any political party or any person referred to in sub-section (1), or both; or (ii) any other person, if he knows or has reasonable cause to believe that such other person intends, or is likely, to deliver such currency to a political party or to any person referred to in sub-section (1), or both. (3) No person receiving any currency, whether Indian or foreign, from a foreign source on behalf of any person or class of persons, referred to in section 9, shall deliver such currency— (a) to any person other than a person for which it was received, or (b) to any other person, if he knows or has reasonable cause to believe that such other person intends, or is likely, to deliver such currency to a person other than the person for which such currency was received. **4. Persons to whom section 3 shall not apply.—Nothing contained in section 3 shall apply to the** acceptance, by any person specified in that section, of any foreign contribution where such contribution is accepted by him, subject to the provisions of section 10,— (a) by way of salary, wages or other remuneration due to him or to any group of persons working under him, from any foreign source or by way of payment in the ordinary course of business transacted in India by such foreign source; or 1. Explanation subs. by Act 33 of 2020, s. 2 (w.e.f. 29-9-2020). 8 ----- (b) by way of payment, in the course of international trade or commerce, or in the ordinary course of business transacted by him outside India; or (c) as an agent of a foreign source in relation to any transaction made by such foreign source with the Central Government or State Government; or (d) by way of a gift or presentation made to him as a member of any Indian delegation, provided that such gift or present was accepted in accordance with the rules made by the Central Government with regard to the acceptance or retention of such gift or presentation; or (e) from his relative; or (f) by way of remittance received, in the ordinary course of business through any official channel, post office, or any authorised person in foreign exchange under the Foreign Exchange Management Act, 1999 (42 of 1999); or (g) by way of any scholarship, stipend or any payment of like nature: Provided that in case any foreign contribution received by any person specified under section 3, for any of the purposes other than those specified under this section, such contribution shall be deemed to have been accepted in contravention of the provisions of section 3. **5. Procedure to notify an organisation of a political nature.—(1) The Central Government may,** having regard to the activities of the organisation or the ideology propagated by the organisation or the programme of the organisation or the association of the organisations with the activities of any political party, by an order published in the Official Gazette, specify such organisation as an organisation of a political nature not being a political party, referred to in clause (f) of sub-section (1) of section 3: Provided that the Central Government may, by rules made by it, frame the guidelines specifying the ground or grounds on which an organisation shall be specified as an organisation of a political nature. (2) Before making an order under sub-section (1), the Central Government shall give the organisation in respect of whom the order is proposed to be made, a notice in writing informing it of the ground or grounds, on which it is proposed to be specified as an organisation of political nature under that sub-section. (3) The organisation to whom a notice has been served under sub-section (2), may, within a period of thirty days from the date of the notice, make a representation to the Central Government giving reasons for not specifying such organisation as an organisation under sub-section (1): Provided that the Central Government may entertain the representation after the expiry of the said period of thirty days, if it is satisfied that the organisation was prevented by sufficient cause from making the representation within thirty days. (4) The Central Government may, if it considers it appropriate, forward the representation referred to in sub-section (3) to any authority to report on such representation. (5) The Central Government may, after considering the representation and the report of the authority referred to in sub-section (4), specify such organisation as an organisation of a political nature not being a political party and make an order under sub-section (1) accordingly. (6) Every order under sub-section (1) shall be made within a period of one hundred and twenty days from the date of issue of notice under sub-section (2): 9 ----- Provided that in case no order is made within the said period of one hundred and twenty days, the Central Government shall, after recording the reasons therefor, make an order under sub-section (1) within a period of sixty days from the expiry of the said period of one hundred and twenty days. **6. Restriction on acceptance of foreign hospitality.—No member of a Legislature or office-bearer** of a political party or Judge or Government servant or employee of any corporation or any other body owned or controlled by the Government shall, while visiting any country or territory outside India, accept, except with the prior permission of the Central Government, any foreign hospitality: Provided that it shall not be necessary to obtain any such permission for an emergent medical aid needed on account of sudden illness contracted during a visit outside India, but, where such foreign hospitality has been received, the person receiving such hospitality shall give, within one month from the date of receipt of such hospitality an intimation to the Central Government as to the receipt of such hospitality, and the source from which, and the manner in which, such hospitality was received by him. 1[7. Prohibition to transfer foreign contribution to other person.—No person who— (a) is registered and granted a certificate or has obtained prior permission under this Act; and (b) receives any foreign contribution, shall transfer such foreign contribution to any other person.] **8. Restriction to utilise foreign contribution for administrative purpose.—(1) Every person, who** is registered and granted a certificate or given prior permission under this Act and receives any foreign contribution,— (a) shall utilise such contribution for the purposes for which the contribution has been received: Provided that any foreign contribution or any income arising out of it shall not be used for speculative business: Provided further that the Central Government shall, by rules, specify the activities or business which shall be construed as speculative business for the purpose of this section; (b) shall not defray as far as possible such sum, not exceeding [2][twenty per cent.] of such contribution, received in a financial year, to meet administrative expenses: Provided that administrative expenses exceeding [2][twenty per cent.] of such contribution may be defrayed with prior approval of the Central Government. (2) The Central Government may prescribe the elements which shall be included in the administrative expenses and the manner in which the administrative expenses referred to in sub-section (1) shall be calculated. **9. Power of Central Government to prohibit receipt of foreign contribution, etc., in certain** **cases.—The Central Government may—** (a) prohibit any person or organisation not specified in section 3, from accepting any foreign contribution; (b) require any person or class of persons, not specified in section 6, to obtain prior permission of the Central Government before accepting any foreign hospitality; (c) require any person or class of persons not specified in section 11, to furnish intimation within such time and in such manner as may be prescribed as to the amount of any foreign contribution received by such person or class of persons as the case may be, and the source from which and the 1. Subs. by Act 33 of 2020, s. 3, for section 7 (w.e.f. 29-9-2020). 2. Subs. by s. 4, ibid., for “fifty per cent.” (w.e.f. 29-9-2020). 10 ----- manner in which such contribution was received and the purpose for which and the manner in which such foreign contribution was utilised; (d) without prejudice to the provisions of sub-section (1) of section 11, require any person or class of persons specified in that sub-section to obtain prior permission of the Central Government before accepting any foreign contribution; (e) require any person or class of persons, not specified in section 6, to furnish intimation, within such time and in such manner as may be prescribed, as to the receipt of any foreign hospitality, the source from which and the manner in which such hospitality was received: Provided that no such prohibition or requirement shall be made unless the Central Government is satisfied that the acceptance of foreign contribution by such person or class of persons, as the case may be, or the acceptance of foreign hospitality by such person, is likely to affect prejudicially— (i) the sovereignty and integrity of India; or (ii) public interest; or (iii) freedom or fairness of election to any Legislature; or (iv) friendly relations with any foreign State; or (v) harmony between religious, racial, social, linguistic or regional groups, castes or communities. **10. Power to prohibit payment of currency received in contravention of the Act.—Where the** Central Government is satisfied, after making such inquiry as it may deem fit, that any person has in his custody or control any article or currency or security, whether Indian or foreign, which has been accepted by such person in contravention of any of the provisions of this Act, it may, by order in writing, prohibit such person from paying, delivering, transferring or otherwise dealing with, in any manner whatsoever, such article or currency or security save in accordance with the written orders of the Central Government and a copy of such order shall be served upon the person so prohibited in the prescribed manner, and thereupon the provisions of sub-sections (2), (3), (4) and (5) of section 7 of the Unlawful Activities (Prevention) Act, 1967 (37 of 1967) shall, so far as may be, apply to, or in relation to, such article or currency or security and references in the said sub-sections to moneys, securities or credits shall be construed as references to such article or currency or security. CHAPTER III REGISTRATION **11. Registration of certain persons with Central Government.—(1) Save as otherwise provided in** this Act, no person having a definite cultural, economic, educational, religious or social programme shall accept foreign contribution unless such person obtains a certificate of registration from the Central Government: Provided that any association registered with the Central Government under section 6 or granted prior permission under that section of the Foreign Contribution (Regulation) Act, 1976 (49 of 1976), as it stood immediately before the commencement of this Act, shall be deemed to have been registered or granted prior permission, as the case may be, under this Act and such registration shall be valid for a period of five years from the date on which this section comes into force. (2) Every person referred to in sub-section (1) may, if it is not registered with the Central Government under that sub-section, accept any foreign contribution only after obtaining the prior permission of the 11 ----- Central Government and such prior permission shall be valid for the specific purpose for which it is obtained and from the specific source: 1[Provided that the Central Government, on the basis of any information or report, and after holding a summary inquiry, has reason to believe that a person who has been granted prior permission has contravened any of the provisions of this Act, it may, pending any further inquiry, direct that such person shall not utilise the unutilised foreign contribution or receive the remaining portion of foreign contribution which has not been received or, as the case may be, any additional foreign contribution, without prior approval of the Central Government: Provided further that if the person referred to in sub-section (1) or in this sub-section has been found guilty] of violation of any of the provisions of this Act or the Foreign Contribution (Regulation) Act, 1976 (49 of 1976), the unutilised or unreceived amount of foreign contribution shall not be utilised or received, as the case may be, without the prior approval of the Central Government. (3) Notwithstanding anything contained in this Act, the Central Government may, by notification in the Official Gazette, specify— (i) the person or class of persons who shall obtain its prior permission before accepting the foreign contribution; or (ii) the area or areas in which the foreign contribution shall be accepted and utilised with the prior permission of the Central Government; or (iii) the purpose or purposes for which the foreign contribution shall be utilised with the prior permission of the Central Government; or (iv) the source or sources from which the foreign contribution shall be accepted with the prior permission of the Central Government. **12. Grant of certificate of registration.—(1) An application by a person, referred to in section 11** for grant of certificate or giving prior permission, shall be made to the Central Government in such form and manner and along with such fee, as may be prescribed. 2[(1A) Every person who makes an application under sub-section (1) shall be required to open “FCRA Account” in the manner specified in section 17 and mention details of such account in his application.] (2) On receipt of an application under sub-section (1), the Central Government shall, by an order, if the application is not in the prescribed form or does not contain any of the particulars specified in that form, reject the application. (3) If on receipt of an application for grant of certificate or giving prior permission and after making such inquiry as the Central Government deems fit, it is of the opinion that the conditions specified in sub-section (4) are satisfied, it may, ordinarily within ninety days from the date of receipt of application under sub-section (1), register such person and grant him a certificate or give him prior permission, as the case may be, subject to such terms and conditions as may be prescribed: Provided that in case the Central Government does not grant, within the said period of ninety days, a certificate or give prior permission, it shall communicate the reasons therefor to the applicant: Provided further that a person shall not be eligible for grant of certificate or giving prior permission, if his certificate has been suspended and such suspension of certificate continues on the date of making application. (4) The following shall be the conditions for the purposes of sub-section (3), namely:— 1. Subs. by Act 33 of 2020, s. 5, for certain words (w.e.f. 29-9-2020). 2. Ins. by s. 6, ibid. (w.e.f. 29-9-2020). 12 ----- (a) the person making an application for registration or grant of prior permission under sub-section (1),— (i) is not fictitious or benami; (ii) has not been prosecuted or convicted for indulging in activities aimed at conversion through inducement or force, either directly or indirectly, from one religious faith to another; (iii) has not been prosecuted or convicted for creating communal tension or disharmony in any specified district or any other part of the country; (iv) has not been found guilty of diversion or mis-utilisation of its funds; (v) is not engaged or likely to engage in propagation of sedition or advocate violent methods to achieve its ends; (vi) is not likely to use the foreign contribution for personal gains or divert it for undesirable purposes; (vii) has not contravened any of the provisions of this Act; (viii) has not been prohibited from accepting foreign contribution; (b) the person making an application for registration under sub-section (1) has undertaken reasonable activity in its chosen field for the benefit of the society for which the foreign contribution is proposed to be utilised; (c) the person making an application for giving prior permission under sub-section (1) has prepared a reasonable project for the benefit of the society for which the foreign contribution is proposed to be utilised; (d) in case the person being an individual, such individual has neither been convicted under any law for the time being in force nor any prosecution for any offence pending against him; (e) in case the person being other than an individual, any of its directors or office bearers has neither been convicted under any law for the time being in force nor any prosecution for any offence is pending against him; (f) the acceptance of foreign contribution by the person referred to in sub-section (1) is not likely to affect prejudicially— (i) the sovereignty and integrity of India; or (ii) the security, strategic, scientific or economic interest of the State; or (iii) the public interest; or (iv) freedom or fairness of election to any Legislature; or (v) friendly relation with any foreign State; or (vi) harmony between religious, racial, social, linguistic, regional groups, castes or communities; (g) the acceptance of foreign contribution referred to in sub-section (1),— (i) shall not lead to incitement of an offence; (ii) shall not endanger the life or physical safety of any person. 13 ----- (5) Where the Central Government refuses the grant of certificate or does not give prior permission, it shall record in its order the reasons therefor and furnish a copy thereof to the applicant: Provided that the Central Government may not communicate the reasons for refusal for grant of certificate or for not giving prior permission to the applicant under this section in cases where there is no obligation to give any information or documents or records or papers under the Right to Information Act, 2005 (22 of 2005). (6) The certificate granted under sub-section (3) shall be valid for a period of five years and the prior permission shall be valid for the specific purpose or specific amount of foreign contribution proposed to be received, as the case may be. 1[12A. Power of Central Government to require Aadhaar number, etc., as identification **document.—Notwithstanding anything contained in this Act, the Central Government may require that** any person who seeks prior permission or prior approval under section 11, or makes an application for grant of certificate under section 12, or, as the case may be, for renewal of certificate under section 16, shall provide as identification document, the Aadhaar number of all its office bearers or Directors or other key functionaries, by whatever name called, issued under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (18 of 2016), or a copy of the Passport or Overseas Citizen of India Card, in case of a foreigner.] **13. Suspension of certificate.—(1) Where the Central Government, for reasons to be recorded in** writing, is satisfied that pending consideration of the question of cancelling the certificate on any of the grounds mentioned in sub-section (1) of section 14, it is necessary so to do, it may, by order in writing, suspend the certificate [2][for a period of one hundred and eighty days, or such further period, not exceeding one hundred and eighty days, as may be specified] in the order. (2) Every person whose certificate has been suspended shall— (a) not receive any foreign contribution during the period of suspension of certificate: Provided that the Central Government, on an application made by such person, if it considers appropriate, allow receipt of any foreign contribution by such person on such terms and conditions as it may specify; (b) utilise, in the prescribed manner, the foreign contribution in his custody with the prior approval of the Central Government. **14. Cancellation of certificate.—(1) The Central Government may, if it is satisfied after making** such inquiry as it may deem fit, by an order, cancel the certificate if— (a) the holder of the certificate has made a statement in, or in relation to, the application for the grant of registration or renewal thereof, which is incorrect or false; or (b) the holder of the certificate has violated any of the terms and conditions of the certificate or renewal thereof; or (c) in the opinion of the Central Government, it is necessary in the public interest to cancel the certificate; or (d) the holder of certificate has violated any of the provisions of this Act or rules or order made thereunder; or (e) if the holder of the certificate has not been engaged in any reasonable activity in its chosen field for the benefit of the society for two consecutive years or has become defunct. 1. Ins. by Act 33 of 2020, s. 7 (w.e.f. 29-9-2020). 2. Subs. by s. 8, ibid., for “for such period not exceeding one hundred and eighty days as may be specified” (w.e.f. 29-9-2020). 14 ----- (2) No order of cancellation of certificate under this section shall be made unless the person concerned has been given a reasonable opportunity of being heard. (3) Any person whose certificate has been cancelled under this section shall not be eligible for registration or grant of prior permission for a period of three years from the date of cancellation of such certificate. 1[14A. Surrender of certificate.—On a request being made in this behalf, the Central Government may permit any person to surrender the certificate granted under this Act, if, after making such inquiry as it deems fit, it is satisfied that such person has not contravened any of the provisions of this Act, and the management of foreign contribution and asset, if any, created out of such contribution has been vested in the authority as provided in sub-section (1) of section 15.] **15. Management of foreign contribution of person whose certificate has been cancelled** **[2][or** **surrendered].—(1) The foreign contribution and assets created out of the foreign contribution in the** custody of every person whose certificate has been cancelled under section 14 [2][or surrendered under section 14A] shall vest in such authority as may be prescribed. (2) The authority referred to in sub-section (1) may, if it considers necessary and in public interest, manage the activities of the person referred to in that sub-section for such period and in such manner, as the Central Government may direct and such authority may utilise the foreign contribution or dispose of the assets created out of it in case adequate funds are not available for running such activity. (3) The authority referred to in sub-section (1) shall return the foreign contribution and the assets vested upon it under that sub-section to the person referred to in the said sub-section if such person is subsequently registered under this Act. **16. Renewal of certificate.—(1) Every person who has been granted a certificate under section 12** shall have such certificate renewed within six months before the expiry of the period of the certificate. 3[Provided that the Central Government may, before renewing the certificate, make such inquiry, as it deems fit, to satisfy itself that such person has fulfilled all conditions specified in sub-section (4) of section 12.] (2) The application for renewal of the certificate shall be made to the Central Government in such form and manner and accompanied by such fee as may be prescribed. (3) The Central Government shall renew the certificate, ordinarily within ninety days from the date of receipt of application for renewal of certificate subject to such terms and conditions as it may deem fit and grant a certificate of renewal for a period of five years: Provided that in case the Central Government does not renew the certificate within the said period of ninety days, it shall communicate the reasons therefor to the applicant: Provided further that the Central Government may refuse to renew the certificate in case where a person has violated any of the provisions of this Act or rules made thereunder. 1. Ins. by Act 33 of 2020, s. 9 (w.e.f. 29-9-2020). 2. Ins. by s. 10, ibid. (w.e.f. 29-9-2020). 3. The proviso ins. by s. 11, ibid. (w.e.f 29-9-2020). 15 ----- CHAPTER IV ACCOUNTS, INTIMATION, AUDIT AND DISPOSAL OF ASSETS, ETC. **1[17. Foreign contribution through scheduled bank.—(1) Every person who has been granted** certificate or prior permission under section 12 shall receive foreign contribution only in an account designated as "FCRA Account" by the bank, which shall be opened by him for the purpose of remittances of foreign contribution in such branch of the State Bank of India at New Delhi, as the Central Government may, by notification, specify in this behalf: Provided that such person may also open another “FCRA Account” in any of the scheduled bank of his choice for the purpose of keeping or utilising the foreign contribution which has been received from his “FCRA Account” in the specified branch of State Bank of India at New Delhi: Provided further that such person may also open one or more accounts in one or more scheduled banks of his choice to which he may transfer for utilising any foreign contribution received by him in his “FCRA Account” in the specified branch of the State Bank of India at New Delhi or kept by him in another “FCRA Account” in a scheduled bank of his choice: Provided also that no funds other than foreign contribution shall be received or deposited in any such account. (2) The specified branch of the State Bank of India at New Delhi or the branch of the scheduled bank where the person referred to in sub-section (1) has opened his foreign contribution account or the authorised person in foreign exchange, shall report to such authority as may be specified— (a) the prescribed amount of foreign remittance; (b) the source and manner in which the foreign remittance was received; and (c) other particulars, in such form and manner as may be prescribed.] **18. Intimation.—(1) Every person who has been granted a certificate or given prior approval under** this Act shall give, within such time and in such manner as may be prescribed, an intimation to the Central Government, and such other authority as may be specified by the Central Government, as to the amount of each foreign contribution received by it, the source from which and the manner in which such foreign contribution was received, and the purposes for which, and the manner in which such foreign contribution was utilised by him. (2) Every person receiving foreign contribution shall submit a copy of a statement indicating therein the particulars of foreign contribution received duly certified by officer of the bank or authorised person in foreign exchange and furnish the same to the Central Government along with the intimation under sub-section (1). **19. Maintenance of accounts.—Every person who has been granted a certificate or given prior** approval under this Act shall maintain, in such form and manner as may be prescribed,— (a) an account of any foreign contribution received by him; and (b) a record as to the manner in which such contribution has been utilised by him. **20. Audit of accounts.—Where any person who has been granted a certificate or given prior** permission, fails to furnish any intimation under this Act within the time specified therefor or the intimation so furnished is not in accordance with law or if, after inspection of such intimation, the Central Government has any reasonable cause to believe that any provision of this Act has been, or is being, contravened, the Central Government may, by general or special order, authorise such gazette officer, holding a Group A post under the Central Government or any other officer or authority or organisation, as 1. Subs. by Act 33 of 2020, s. 12, for section 17 (w.e.f. 29-9-2020). 16 ----- it may think fit, to audit any books of account kept or maintained by such person and thereupon every such officer shall have the right to enter in or upon any premises at any reasonable hour, before sunset and after sunrise, for the purpose of auditing the said books of account: Provided that any information obtained from such audit shall be kept confidential and shall not be disclosed except for the purposes of this Act. **21. Intimation by candidate for election.—Every candidate for election, who had received any** foreign contribution, at any time within one hundred and eighty days immediately preceding the date on which he is duly nominated as such candidate, shall give, within such time and in such manner as may be prescribed, an intimation to the Central Government or prescribed authority or both as to the amount of foreign contribution received by him, the source from which, and the manner in which, such foreign contribution was received and the purposes for which and the manner in which such foreign contribution was utilised by him. **22. Disposal of assets created out of foreign contribution.—Where any person who was permitted** to accept foreign contribution under this Act, ceases to exist or has become defunct, all the assets of such person shall be disposed of in accordance with the provisions contained in any law for the time being in force under which the person was registered or incorporated, and in the absence of any such law, the Central Government may, having regard to the nature of assets created out of foreign contribution received under this Act, by notification, specify that all such assets shall be disposed off by such authority, as it may specify, in such manner and procedure as may be prescribed. CHAPTER V INSPECTION, SEARCH AND SEIZURE **23. Inspection of accounts or records.—If the Central Government has, for any reason, to be** recorded in writing, any ground to suspect that any provision of this Act has been or is being, contravened by— (a) any political party; or (b) any person; or (c) any organisation; or (d) any association, it may, by general or special order, authorise such gazetted officer, holding a Group A post under the Central Government or such other officer or authority or organisation, as it may think fit (hereinafter referred to as the inspecting officer), to inspect any account or record maintained by such political party, person, organisation or association, as the case may be, and thereupon every such inspecting officer shall have the right to enter in or upon any premises at any reasonable hour, before sunset and after sunrise, for the purpose of inspecting the said account or record. **24. Seizure of accounts or records.—If, after inspection of an account or record referred to in** section 23, the inspecting officer has any reasonable cause to believe that any provision of this Act or of any other law relating to foreign exchange has been, or is being, contravened, he may seize such account or record and produce the same before the court, authority or tribunal in which any proceeding is brought for such contravention: Provided that the authorised officer shall return such account or record to the person from whom it was seized if no proceeding is brought within six months from the date of such seizure for the contravention disclosed by such account or record. 17 ----- **25. Seizure of article or currency or security received in contravention of the Act.—If any** gazetted officer, authorised in this behalf by the Central Government by general or special order, has any reason to believe that any person has in his possession or control any article exceeding the value specified in sub-clause (i) of clause (h) of sub-section (1) of section 2 or currency or security whether Indian or foreign, in relation to which any provision of this Act has been or is being, contravened, he may seize such article or currency or security. **26. Disposal of seized article or currency or security.—(1) The Central Government, may, having** regard to the value of article or currency or security, their vulnerability to theft or any relevant consideration, by notification, specify such article or currency or security which shall, as soon as may be after their seizure, be disposed of by such officer and in such manner, as the Central Government may, from time to time, determine after following the procedure hereinafter specified. (2) The article or currency or security seized shall be forwarded without unnecessary delay to such officer as may be specified. (3) Where any article or currency or security has been seized and forwarded to such officer, the officer referred to in sub-section (1), shall prepare an inventory of such article or currency or security containing such details relating to their description, value or such other identifying particulars as the officer referred to in that sub-section may consider relevant to the identity of the article or the currency or security and make an application to any Magistrate for the purposes of certifying the correctness of the inventory so prepared. (4) Where an application is made under sub-section (2), the Magistrate shall, as soon as may be, allow the application. (5) Notwithstanding anything contained in the Indian Evidence Act, 1872 (1 of 1872) or the Code of Criminal Procedure, 1973 (2 of 1974), every court trying an offence under this Act, shall treat the inventory, as certified by the Magistrate, as primary evidence in respect of such offence. (6) Every officer acting under sub-section (3) shall forthwith report the seizure to the Court of Session or Assistant Sessions Judge having jurisdiction for adjudging the confiscation under section 29. **27. Seizure to be made in accordance with Act 2 of 1974.—The provisions of the Code of Criminal** Procedure, 1973 shall apply in so far as they are not inconsistent with the provisions of this Act to all seizures made under this Act. CHAPTER VI ADJUDICATION **28. Confiscation of article or currency or security obtained in contravention of the Act.—Any** article or currency or security which is seized under section 25 shall be liable to confiscation if such article or currency or security has been adjudged under section 29 to have been received or obtained in contravention of this Act. **29. Adjudication of confiscation.—(1) Any confiscation referred to in section 28 may be** adjudged— (a) without limit, by the Court of Session within the local limits of whose jurisdiction the seizure was made; and (b) subject to such limits as may be prescribed, by such officer, not below the rank of an Assistant Sessions Judge, as the Central Government may, by notification in the Official Gazette, specify in this behalf. 18 ----- (2) When an adjudication under sub-section (1) is concluded by the Court of Session or Assistant Sessions Judge, as the case may be, the Sessions Judge or Assistant Sessions Judge may make such order as he thinks fit for the disposal by confiscation or delivery of seized article or currency or security, as the case may be, to any person claiming to be entitled to possession thereof or otherwise, or which has been used for the commission of any offence under this Act. **30. Procedure for confiscation.—No order of adjudication of confiscation shall be made unless a** reasonable opportunity of making a representation against such confiscation has been given to the person from whom any article or currency or security has been seized. CHAPTER VII APPEAL AND REVISION **31. Appeal.—(1) Any person aggrieved by any order made under section 29 may prefer an appeal,—** (a) where the order has been made by the Court of Session, to the High Court to which such Court is subordinate; or (b) where the order has been made by any officer specified under clause (b) of sub-section (1) of section 29, to the Court of Session within the local limits of whose jurisdiction such order of adjudication of confiscation was made, within one month from the date of communication to such person of the order: Provided that the appellate court may, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal within the said period of one month, allow such appeal to be preferred within a further period of one month, but not thereafter. (2) Any organisation referred to in clause (f) of sub-section (1) of section 3, or any person or association referred to in section 6 or section 9, aggrieved by an order made in pursuance of section 5 or by an order of the Central Government refusing to give permission under this Act, or by any order made by the Central Government under sub-section (2) or sub-section (4) of section 12, or sub-section (1) of section 14, as the case may be, may, within sixty days from the date of such order, prefer an appeal against such order to the High Court within the local limits of whose jurisdiction the appellant ordinarily resides or carries on business or personally works for gain, or, where the appellant is an organisation or association, the principal office of such organisation or association is located. (3) Every appeal preferred under this section shall be deemed to be an appeal from an original decree and the provisions of Order XLI of the First Schedule to the Code of Civil Procedure, 1908 (5 of 1908), shall, as far as may be, apply thereto as they apply to an appeal from an original decree. **32. Revision of orders by Central Government.—(1) The Central Government may, either of its** own motion or on an application for revision by the person registered under this Act, call for and examine the record of any proceeding under this Act in which any such order has been passed by it and may make such inquiry or cause such inquiry to be made and, subject to the provisions of this Act, may pass such order thereon as it thinks fit. (2) The Central Government shall not of its own motion revise any order under this section if the order has been made more than one year previously. (3) In the case of an application for revision under this section by the person referred to in sub-section (1), the application must be made within one year from the date on which the order in question was communicated to him or the date on which he otherwise came to know of it, whichever is earlier: 19 ----- Provided that the Central Government may, if it is satisfied that such person was prevented by sufficient cause from making the application within that period, admit an application made after the expiry of that period. (4) The Central Government shall not revise any order where an appeal against the order lies but has not been made and the time within which such appeal may be made has not expired or such person has not waived his right of appeal or an appeal has been filed under this Act. (5) Every application by such person for revision under this section shall be accompanied by such fee, as may be prescribed. _Explanation.—An order by the Central Government declining to interfere shall, for the purposes of_ this section, be deemed not to be an order prejudicial to such person. CHAPTER VIII OFFENCES AND PENALTIES **33. Making of false statement, declaration or delivering false accounts.—Any person, subject to** this Act, who knowingly,— (a) gives false intimation under clause (c) of section 9 or section 18; or (b) seeks prior permission or registration by means of fraud, false representation or concealment of material fact, shall, on conviction by a court, be liable to imprisonment for a term which may extend to six months or with fine or with both. **34. Penalty for article or currency or security obtained in contravention of section 10.—If any** person, on whom any prohibitory order has been served under section 10, pays, delivers, transfers or otherwise deals with, in any manner whatsoever, any article or currency or security, whether Indian or foreign, in contravention of such prohibitory order, he shall be punished with imprisonment for a term which may extend to three years, or with fine, or with both; and notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), the court trying such contravention may also impose on the person convicted an additional fine equivalent to the market value of the article or the amount of the currency or security in respect of which the prohibitory order has been contravened by him or such part thereof as the court may deem fit. **35. Punishment for contravention of any provision of the Act.—Whoever accepts, or assists any** person, political party or organisation in accepting, any foreign contribution or any currency or security from a foreign source, in contravention of any provision of this Act or any rule or order made thereunder, shall be punished with imprisonment for a term which may extend to five years, or with fine, or with both. **36. Power to impose additional fine where article or currency or security is not available for** **confiscation.—Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974),** the court trying a person, who, in relation to any article or currency or security, whether Indian or foreign, does or omits to do any act which act or omission would render such article or currency or security liable to confiscation under this Act, may, in the event of the conviction of such person for the act or omission aforesaid, impose on such person a fine not exceeding five times the value of the article or currency or security or one thousand rupees, whichever is more, if such article or currency or security is not available for confiscation, and the fine so imposed shall be in addition to any other fine which may be imposed on such person under this Act. 20 ----- **37. Penalty for offences where no separate punishment has been provided.—Whoever fails to** comply with any provision of this Act for which no separate penalty has been provided in this Act shall be punished with imprisonment for a term which may extend to one year, or with fine or with both. **38. Prohibition of acceptance of foreign contribution.—Notwithstanding anything contained in this** Act, whoever, having been convicted of any offence under section 35 or section 37, in so far as such offence relates to the acceptance or utilisation of foreign contribution, is again convicted of such offence shall not accept any foreign contribution for a period of five years from the date of the subsequent conviction. **39. Offences by companies.—(1) Where an offence under this Act or any rule or order made** thereunder has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render such person liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act or any rule or order made thereunder has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section,—_ (a) “company” means any body corporate and includes a firm, society, trade union or other association of individuals; and (b) “director”, in relation to a firm, society, trade union or other association of individuals, means a partner in the firm or a member of the governing body of such society, trade union or other association of individuals. **40. Bar on prosecution of offences under the Act.—No court shall take cognizance of any offence** under this Act, except with the previous sanction of the Central Government or any officer authorised by that Government in this behalf. **41. Composition of certain offences.—(1) Notwithstanding anything contained in the Code of** Criminal Procedure, 1973 (2 of 1974), any offence punishable under this Act (whether committed by an individual or association or any officer or employee thereof), not being an offence punishable with imprisonment only, may, before the institution of any prosecution, be compounded by such officers or authorities and for such sums as the Central Government may, by notification in the Official Gazette, specify in this behalf. (2) Nothing in sub-section (1) shall apply to an offence committed by an individual or association or its officer or other employee within a period of three years from the date on which a similar offence committed by it or him was compounded under this section. _Explanation.—For the purposes of this section, any second or subsequent offence committed after the_ expiry of a period of three years from the date on which the offence was previously compounded, shall be deemed to be a first offence. 21 ----- (3) Every officer or authority referred to in sub-section (1) shall exercise the powers to compound an offence, subject to the direction, control and supervision of the Central Government. (4) Every application for the compounding of an offence shall be made to the officer or authority referred to in sub-section (1) in such form and manner along with such fee as may be prescribed. (5) Where any offence is compounded before the institution of any prosecution, no prosecution shall be instituted in relation to such offence, against the offender in relation to whom the offence is so compounded. (6) Every officer or authority referred to in sub-section (1), while dealing with a proposal for the compounding of an offence for a default in compliance with any provision of this Act which requires by an individual or association or its officer or other employee to obtain permission or file or register with, or deliver or send to, the Central Government or any prescribed authority any return, account or other document, may, direct, by order, if he or it thinks fit to do so, any individual or association or its officer or other employee to file or register with, such return, account or other document within such time as may be specified in the order. CHAPTER IX MISCELLANEOUS **42. Power to call for information or document.—Any inspecting officer referred to in section 23** who is authorised in this behalf by the Central Government may, during the course of any inspection of any account or record maintained by any political party, person, organisation or association in connection with the contravention of any provision of this Act,— (a) call for information from any person for the purpose of satisfying himself whether there has been any contravention of the provisions of this Act or rule or order made thereunder; (b) require any person to produce or deliver any document or thing useful or relevant to such inspection; (c) examine any person acquainted with the facts and circumstances of the case related to the inspection. **43. Investigation into cases under the Act.—Notwithstanding anything contained in the Code of** Criminal Procedure, 1973 (2 of 1974), any offence punishable under this Act may also be investigated into by such authority as the Central Government may specify in this behalf and the authority so specified shall have all the powers which an officer-in-charge of a police station has while making an investigation into a cognizable offence. **44. Returns by prescribed authority to Central Government.—The prescribed authority shall** furnish to the Central Government at such time and in such form and manner such returns and statements as may be prescribed. **45. Protection of action taken in good faith.—No suit or other legal proceedings shall lie against** the Central Government or the authority referred to in section 44 or any of its officers in respect of any loss or damage caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance of the provisions of this Act or, any rule or order made thereunder. **46. Power of Central Government to give directions.—The Central Government may give such** directions as it may deem necessary to any other authority or any person or class of persons regarding the carrying into execution of the provisions of this Act. 22 ----- **47. Delegation of powers.—The Central Government may, by notification, direct that any of its** powers or functions under this Act, except power to make rules under section 48, shall, in relation to such matters and subject to such conditions, if any, may be specified in the notification, be exercised or discharged also by such authority as may be specified. **48. Power to make rules.— (1) The Central Government may, by notification, make rules for** carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the value of the article which may be specified under sub-clause (i) of clause (h) of sub-section (1) of section 2; (b) the authority which may be specified under clause (p) of sub-section (1) of section 2; (c) acceptance or retention of gift or presentation under clause (d) of section 4; (d) guidelines specifying the ground or grounds on which an organisation may be specified as an organisation of political nature under sub-section (1) of section 5; (e) the activities or business which shall be construed as speculative business under the proviso to clause (a) of sub-section (1) of section 8; (f) the elements and the manner in which the administrative expenses shall be calculated under sub-section (2) of section 8; (g) the time within which and the manner in which any person or class of persons or an association may be required to furnish intimation regarding the amount of foreign contribution received under clause (c) of section 9; (h) the time within which and the manner in which any person or class of persons may be required to furnish intimation regarding foreign hospitality under clause (e) of section 9; (i) the manner in which the copy of the order of the Central Government shall be served upon any person under section 10; (j) the form and manner in which the application for grant of certificate of registration or giving of prior permission under sub-section (1) of section 12; (k) the fee to be accompanied by the application under sub-section (1) of section 12; (l) the terms and conditions for granting a certificate or giving prior permission under clause (g) of sub-section (4) of section 12; (m) the manner of utilising the foreign contribution under clause (b) of sub-section (2) of section 13; (n) the authority with whom the foreign contribution to be vested under sub-section (1) of section 15; (o) the period within which and the manner in which the foreign contribution shall be managed under sub-section (2) of section 15; (p) the form and manner in which the application for a renewal of certificate of registration shall be made under sub-section (2) of section 16; (q) the fee to be accompanied by the application for renewal of certificate under sub-section (2) of section 16; 23 ----- (r) the prescribed amount of foreign remittance, the form and manner in which the foreign remittance received by every bank or authorised person in foreign exchange shall be reported under sub-section (2) of section 17; (s) the time within which and the manner in which the person who has been granted certificate of registration or given prior permission under this Act shall give intimation under section 18; (t) the form and manner in which account of any foreign contribution and the manner in which such contribution has been utilised shall be maintained under section 19; (u) the time within which and the manner in which a candidate for election shall give intimation under section 21; (v) the manner and procedure to be followed in disposing of the assets under section 22; (w) the limits subject to which any confiscation may be adjudged under clause (b) of sub-section (1) of section 29; (x) the fee to be accompanied along with every application for revision under sub-section (5) of section 32; (y) the form and manner for making of an application for compounding of an offence and the fee therefor under sub-section (4) of section 41; (z) the form and manner in which and the time within which returns and statements to be furnished by the prescribed authority under section 44; (za) any other matter which is required to be, or may be, prescribed. **49. Orders and rules to be laid before Parliament.—Every order made under section 5 and every** rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the order or rule or both Houses agree that the order or rule should not be made, the order or rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that order or rule. **50. Power to exempt in certain cases.—If the Central Government is of opinion that it is necessary** or expedient in the interests of the general public so to do, it may, by order and subject to such conditions as may be specified in the order, exempt any person or association or organisation (not being a political party), or any individual (not being a candidate for election) from the operation of all or any of the provisions of this Act and may, as often as may be necessary, revoke or modify such order. **51. Act not to apply to certain Government transactions.—Nothing contained in this Act shall** apply to any transaction between the Government of India and the Government of any foreign country or territory. **52. Application of other laws not barred.—The provisions of this Act shall be in addition to, and** not in derogation of, the provisions of any other law for the time being in force. **53. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order, published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty: 24 ----- Provided that no order shall be made under this section after the expiry of two years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **54. Repeal and saving.—(1) The Foreign Contribution (Regulation) Act, 1976 (49 of 1976)** (hereafter referred to as the repealed Act) is hereby repealed. (2) Notwithstanding such repeal,— (a) anything done or any action taken or purported to have been done or taken under the repealed Act shall, in so far as it is not inconsistent with the provisions of this Act, be deemed to have been done or taken under the corresponding provisions of this Act; (b) any organisation of a political nature, not being a political party, to whom the prior permission was granted under section 5 of the repealed Act, shall continue to be the organisation of a political nature, not being a political party, under clause (f) of sub-section (1) of section 3 of this Act, till such permission is withdrawn by the Central Government; (c) permission to accept foreign hospitality granted under section 9 of the repealed Act shall be deemed to be the permission granted under section 6 of this Act until such permission is withdrawn by the Central Government; (d) any association prohibited from accepting any foreign contribution under clause (a) of section 10 of the repealed Act, in so far as it is not inconsistent with the provisions of this Act, shall be deemed to be an association prohibited from accepting any foreign contribution under section 9 of this Act; (e) permission obtained under clause (b) of section 10 of the repealed Act shall, in so far as it is not inconsistent with the provisions of this Act, be deemed to be the permission until such permission is withdrawn by the Central Government; (f) any order issued under section 12 of the repealed Act shall be deemed to be an order issued under section 10 of this Act; (g) any order issued under section 31 of the repealed Act exempting any association or any individual shall be deemed to be an order under section 50 of this Act till such order is varied or revoked. (3) Save as provided in sub-section (2), mention of particular matters in that sub-section shall not be held to prejudice or affect the general application of section 6 of the General Clauses Act, 1897 (10 of 1897), with regard to the effect of repeal. 25 -----

29-Mar-2011

05

The National Capital Territory of Delhi Laws (Special Provisions) Act, 2011

https://www.indiacode.nic.in/bitstream/123456789/2099/1/A2011-05.pdf

central

# THE NATIONAL CAPITAL TERRITORY OF DELHI LAWS (SPECIAL PROVISIONS) ACT, 2011 ________ ARRANGEMENT OF SECTIONS ________ SECTIONS 1. Short title, extent, commencement and duration. 2. Definitions. 3. Enforcement to be kept in abeyance. 4. Provisions of this Act not to apply in certain cases. 5. Power of Central Government to give directions. 6. Validation of acts done or omitted to be done, etc., during 1st January, 2011 up to the date of commencement of this Act. 1 ----- # THE NATIONAL CAPITAL TERRITORY OF DELHI LAWS (SPECIAL PROVISIONS) ACT, 2011 ACT NO. 5 OF 2011 [29th March, 2011.] # An Act to make special provisions for the National Capital Territory of Delhi for a further period up to the 31st day of December, 2011 and for matters connected therewith or incidental thereto. WHEREAS there had been phenomenal increase in the population of the National Capital Territory of Delhi owing to migration and other factors resulting in tremendous pressure on land and infrastructure leading to encroachment or unauthorised developments which are not in consonance with the concept of planned development as provided in the Master Plan for Delhi, 2001 and the relevant Acts and building bye-laws made thereunder; AND WHEREAS the Master Plan for Delhi, 2001 was extensively modified and notified by the Central Government on the 7th day of February, 2007 with the perspective for the year 2021 keeping in view the emerging new dimensions in urban development vis-a-vis the social, financial and other ground realities; AND WHEREAS the Master Plan for Delhi with the perspective for the year 2021 specifically provides for strategies for housing for urban poor as well as to deal with the informal sector; AND WHEREAS a strategy and a scheme has been prepared by the local authorities in the National Capital Territory of Delhi for regulation of urban street vendors in accordance with the National Policy for Urban Street Vendors and the Master Plan for Delhi, 2021, and is being implemented; AND WHEREAS based on the policy finalised by the Central Government regarding regularisation of unauthorised colonies, village abadi area and its extension, the guidelines and regulations for this purpose have been issued; AND WHEREAS in pursuance of the guidelines and regulations necessary steps are being taken for regularisation of unauthorised colonies which, inter alia, involve scrutiny of layout plans, assessment of built up percentage existed as on 31st day of March, 2002, identification of mixed use of streets, approval of layout plans, fixation of boundaries, change in land use and identification of colonies not eligible for regularisation; AND WHEREAS more time is required for proper implementation of the scheme regarding hawkers and urban street vendors and for the regularisation of unauthorised colonies, village _abadi_ area and its extension; AND WHEREAS the revised policy for proper arrangements for relocation and rehabilitation of slum dwellers and jhuggi-jhompri clusters in the National Capital Territory of Delhi has been formulated and accordingly, the Delhi Urban Shelter Improvement Board Act, 2010 (Delhi Act 7 of 2010) has been enacted by the Government of National Capital Territory of Delhi and notified with effect from the 1st July, 2010 to provide for implementation of schemes for improvement of slums and _jhuggi-jhompri_ clusters with a view to bring improvement in environment and living conditions, and to prepare housing scheme for such persons; AND WHEREAS the draft policy regarding farm houses is under consideration in the Delhi Development Authority; AND WHEREAS pursuant to the Master Plan for Delhi, 2021, the Zonal Development Plans in respect of various Zones have been notified which provides for regularisation of schools, dispensaries, religious institutions and cultural institutions; 2 ----- ANDWHEREAS the policy with respect to storages, warehouses and godowns used for agricultural inputs or produce (including dairy and poultry) in rural areas built on agricultural land are under consideration of the Central Government in consultation with the Delhi Development Authority; AND WHEREAS the National Capital Territory of Delhi Laws (Special Provisions) Act, 2007 (43 of 2007) was enacted on the 5th day of December, 2007 to make special provisions for the areas of the National Capital Territory of Delhi for a period up to the 31st day of December, 2008 which ceased to operate after the 31st December, 2008; AND WHEREAS the National Capital Territory of Delhi Laws (Special Provisions) Act, 2009 (24 of 2009) was enacted in continuation of the aforesaid Act for a period up to the 31st day of December, 2009 to make special provisions for the areas of the National Capital Territory of Delhi and that Act ceased to operate after the 31st day of December, 2009; AND WHEREAS the National Capital Territory of Delhi Laws (Special Provisions) Second Act, 2009 (40 of 2009) was enacted in continuation of the aforesaid Act for a period up to the 31st day of December, 2010 to make special provisions for the areas of the National Capital Territory of Delhi and that Act ceased to operate after the 31st day of December, 2010; AND WHEREAS it is expedient to have a law in terms of the Master Plan for Delhi, 2021, in continuation of the said Act for a period up to the 31st day of December, 2011 to provide for temporary relief and to minimise avoidable hardships and irreparable loss to the people of the National Capital Territory of Delhi against any action by the concerned agency in respect of persons covered by the policies referred to above. BE it enacted by Parliament in the Sixty-second Year of the Republic of India as follows:— **1. Short title, extent, commencement and duration.—(1) This Act may be called the National** Capital Territory of Delhi Laws (Special Provisions) Act, 2011. (2) It extends to the National Capital Territory of Delhi. (3) It shall be deemed to have come into force on the 1st day of January, 2011. (4) It shall cease to have effect on the 31st day of December, 2011, except as respects things done or omitted to be done before such cesser, and upon such cesser section 6 of the General Clauses Act, 1897 (10 of 1897), shall apply as if this Act had then been repealed by a Central Act. **2. Definitions.—(1) In this Act, unless the context otherwise requires,—** (a) “building bye-laws” means bye-laws made under section 481 of the Delhi Municipal Corporation Act, 1957 (66 of 1957) or the bye-laws made under section 188, sub-section (3) of section 189 and sub-section (1) of section 190 of the Punjab Municipal Act, 1911 (Punjab Act 3 of 1911), as in force in New Delhi or the regulations made under sub-section (1) of section 57 of the Delhi Development Act, 1957 (61 of 1957), relating to buildings; (b) “Delhi” means the entire area of the National Capital Territory of Delhi except the Delhi Cantonment as defined in clause (11) of section 2 of the Delhi Municipal Corporation Act, 1957 (66 of 1957); (c) “encroachment” means unauthorised occupation of Government land or public land by way of putting temporary, semi-permanent or permanent structure for residential use or commercial use or any other use; (d) “local authority” means the Delhi Municipal Corporation established under the Delhi Municipal Corporation Act, 1957 (66 of 1957), or the New Delhi Municipal Council established under the New Delhi Municipal Council Act, 1994 (44 of 1994) or the Delhi Development Authority 3 ----- established under the Delhi Development Act, 1957 (61 of 1957), legally entitled to exercise control in respect of the areas under their respective jurisdiction; (e) “Master Plan” means the Master Plan for Delhi with the perspective for the year 2021, notified vide notification number S.O.141(E), dated the 7th day of February, 2007 under the Delhi Development Act, 1957 (61 of 1957); (f) “notification” means a notification published in the Official Gazette; (g) “punitive action” means action taken by a local authority under the relevant law against unauthorised development and shall include demolition, sealing of premises and displacement of persons or their business establishment from their existing location, whether in pursuance of court orders or otherwise; (h) “relevant law” means in case of— (i) the Delhi Development Authority, the Delhi Development Act, 1957 (61 of 1957); (ii) the Municipal Corporation of Delhi, the Delhi Municipal Corporation Act, 1957 (66 of 1957); and (iii) the New Delhi Municipal Council, the New Delhi Municipal Council Act, 1994 (44 of 1994); (i) “unauthorised development” means use of land or use of building or construction of building or development of colonies carried out in contravention of the sanctioned plans or without obtaining the sanction of plans, or in contravention of the land use as permitted under the Master Plan or Zonal Plan or layout plan, as the case may be, and includes any encroachment. (2) Words and expressions used but not defined herein shall have the meanings respectively assigned to them in the Delhi Development Act, 1957 (61 of 1957), the Delhi Municipal Corporation Act, 1957 (66 of 1957) and the New Delhi Municipal Council Act, 1994 (44 of 1994). **3. Enforcement to be kept in abeyance.—(1) Notwithstanding anything contained in any relevant** law or any rules, regulations or bye-laws made thereunder, the Central Government shall before the expiry of this Act, take all possible measures to finalise norms, policy guidelines, feasible strategies and make orderly arrangements to deal with the problem of encroachment or unauthorised development in the form of encroachment by slum dwellers and Jhuggi-Jhompri clusters, hawkers and urban street vendors, unauthorised colonies, village _abadi area (including urban villages), and its extension, existing farm_ houses involving construction beyond permissible building limits and schools, dispensaries, religious institutions, cultural institutions, storages, warehouses and godowns used for agricultural inputs or produce (including dairy and poultry) in rural areas built on agricultural land, as mentioned below: (a) orderly arrangements for relocation and rehabilitation of slum dwellers and _Jhuggi-Jhompri_ clusters in the National Capital Territory of Delhi in accordance with the provisions of the Delhi Urban Shelter Improvement Board Act, 2010 (Delhi Act 7 of 2010) and the Master Plan for Delhi, 2021 to ensure its development in a sustainable, planned and humane manner; (b) scheme and orderly arrangements for regulation of urban street vendors in consonance with the national policy for urban street vendors and hawkers as provided in the Master Plan for Delhi, 2021; (c) orderly arrangements pursuant to guidelines and regulations for regularisation of unauthorised colonies, village abadi area (including urban villages) and its extension, as existed on the 31st day of March, 2002, and where construction took place even beyond that date and up to the 8th day of February, 2007; 4 ----- (d) policy regarding existing farm houses involving construction beyond permissible building limits; and (e) policy or plan for orderly arrangement regarding schools, dispensaries, religious institutions, cultural institutions, storages, warehouses and godowns used for agricultural inputs or produce (including dairy and poultry) in rural areas built on agricultural land. (2) Subject to the provisions contained in sub-section (1) and notwithstanding any judgment, decree or order of any court, status quo— (i) as on the 1st day of January, 2006 in respect of encroachment or unauthorised development; and (ii) in respect of unauthorised colonies, village _abadi area (including urban villages) and its_ extension, which existed on the 31st day of March, 2002 and where construction took place even beyond that date and up to the 8th day of February, 2007, mentioned in sub-section (1), shall be maintained. (3) All notices issued by any local authority for initiating action against encroachment or unauthorised development referred to in sub-section (1), shall be deemed to have been suspended and no punitive action shall be taken till the 31st day of December, 2011. (4) Notwithstanding any other provision contained in this Act, the Central Government may, at any time before the 31st day of December, 2011, withdraw the exemption by notification in respect of encroachment or unauthorised development mentioned in sub-section (2) or sub-section (3), as the case may be. **4. Provisions of this Act not to apply in certain cases.—During the period of operation of this Act,** no relief shall be available under the provisions of section 3 in respect of the following encroachment or unauthorised development, namely:— (a) encroachment on public land except in those cases which are covered under clauses (a), (b) and (c) of sub-section (1) of section 3; (b) removal of slums and Jhuggi-Jhompri dwellers, hawkers and urban street vendors, unauthorised colonies or part thereof, village abadi area (including urban villages) and its extension in accordance with the relevant policies approved by the Central Government for clearance of land required for specific public projects. **5. Power of Central Government to give directions.—The Central Government may, from time to** time, issue such directions to the local authorities as it may deem fit, for giving effect to the provisions of this Act and it shall be the duty of the local authorities, to comply with such directions. **6. Validation of acts done or omitted to be done, etc., during 1st January, 2011 up to the date of** **commencement of this Act.—Notwithstanding any judgment, decree or order of any court, all things** done, or, omitted to be done, and all action taken, or, not taken, during the period beginning on or after the 1st day of January, 2011 and ending immediately before the date of commencement of this Act, shall, in so far as they are in conformity with the provisions of this Act, be deemed to have been done, or, omitted to be done, or, taken, or, not taken, under these provisions as if such provisions were in force at the time such things were done or omitted to be done and action taken or not taken during the aforesaid period. ___________ 5 -----

1-Sep-2011

11

The Coinage Act, 2011

https://www.indiacode.nic.in/bitstream/123456789/2112/1/201111.pdf

central

# THE COINAGE ACT, 2011 __________________ # ARRANGEMENT OF SECTIONS __________________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II ESTABLISHMENT OF MINTS 3. Power to establish and abolish Mints. CHAPTER III COINAGE 4. Denominations, dimensions, designs and composition of coins. 5. Standard weight and remedy. 6. Coin when a legal tender. 7. Decimal system of coinage. 8. Power to call in coin. CHAPTER IV DIMINISHED, DEFACED AND COUNTERFEIT COINS 9. Power to certain persons to cut, diminished or defaced coins. 10. Power to certain persons to cut counterfeit coins. 11. Power of Mint to delegate its functions. CHAPTER V OFFENCES AND PENALTIES 12. Prohibition of making or melting or destruction of coins. 13. Penalty for contravention of section 12. 14. Prohibition and penalty for unlawful making, issue or possession of pieces of metal to be used as money. 15. Prohibition and penalty for bringing metal piece for use as coin. 16. Offences by companies. CHAPTER VI MISCELLANEOUS 17. Forfeiture. 18. Probation of Offenders Act, 1958 not to apply to offences under this Act. 19. Offences to be cognizable, bailable and non-compoundable. 20. Amendment of Act 2 of 1934. 21. Offences may be tried summarily. 1 ----- SECTIONS 22. Protection of action taken in good faith. 23. Power to remove difficulties. 24. Power to make rules. 25. Rules to be laid before Parliament. 26. Saving of making other coins at Mints. 27. Repeal and savings. 28. Continuance of existing coins. 2 ----- # THE COINAGE ACT, 2011 ACT NO. 11 OF 2011 [1st September, 2011.] # An Act to consolidate the laws relating to coinage and the Mints, the protection of coinage and to provide for the prohibition of melting or destruction of coins and prohibit the making or the possession thereof for issue and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Sixty-second Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Coinage Act, 2011.** (2) It extends to the whole of India. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.— In this Act, unless the context otherwise requires,—** (a) “coin” means any coin which is made of any metal or any other material stamped by the Government or any other authority empowered by the Government in this behalf and which is a legal tender including commemorative coin and Government of India one rupee note. _Explanation.—For the removal of doubts, it is hereby clarified that a “coin” does not include the_ credit card, debit card, postal order and e-money issued by any bank, post office or financial institution; (b) “commemorative coin” means any coin stamped by the Government or any other authority empowered by the Government in this behalf to commemorate any specific occasion or event and expressed in Indian currency; (c) “deface” means any type of clipping, filing, stamping, or such other alteration of the surface or shape of a coin as is readily distinguishable from the effects or reasonable wear; (d) “Government” means the Central Government; (e) “issue” means to put a coin into circulation for use as money; (f) “metal” means any metal, base metal, alloy, gold, silver or any other material which may be prescribed by the Government for the purpose of any coin; (g) “Mint” means the Security Printing and Minting Corporation of India Limited formed and incorporated under the Companies Act, 1956 (1 of 1956) or any other organisation established by or under the authority of the Government to make a coin by stamping metal; (h) “notification” means notification published in the Official Gazette; (i) “per cent.” means the percentage of metals prescribed for any coin; (j) “prescribed” means prescribed by rules made under this Act; (k) “remedy” means variation from the standard weight and fineness; (l) “standard weight” means the weight prescribed for any coin. 1. 28th March, 2012, vide notification No. S.O. 628(E), dated 28th March, 2012, see Gazette of India, Extraordinary, Part II, sec.. 3 (ii). 3 ----- CHAPTER II ESTABLISHMENT OF MINTS **3. Power to establish and abolish Mints.—The Government may, by notification,—** (a) establish a Mint at any place which may be managed by it or by any other person, which may be authorised for this purpose: Provided that the Mints established before the commencement of this Act shall be deemed to have been established by the Government under this section: Provided further that where the Government is of the opinion that it is necessary or expedient in the public interest so to do, it may authorise the minting of coins by any organisation or Government of any foreign country, within or beyond the limits of India and acquire such coins either by way of import or otherwise for issue under its authority; (b) abolish any Mint. CHAPTER III COINAGE **4. Denominations, dimensions, designs and composition of coins.—Coins may be minted at the** Mints or at any other place authorised under the proviso to section 3 of such denominations not higher than one thousand rupees and of such dimensions and designs and containing such metals or mixed metals of such composition or any other material as may be prescribed by the Government. **5. Standard weight and remedy.—The standard weight of the coin of any denomination, minted** under the provisions of section 4, and the remedy allowed in making of such coins, shall be such as may be prescribed in this behalf by the Government from time to time. **6. Coin when a legal tender.—(1) The coins issued under the authority of section 4 shall be a legal** tender in payment or on account, in case of— (a) a coin of any denomination not lower than one rupee, for any sum not exceeding one thousand rupees; (b) a half-rupee coin, for any sum not exceeding ten rupees; (c) any other coin, for any sum not exceeding one rupee: Provided that the coin has not been defaced and has not lost weight so as to be less than such weight as may be prescribed in its case. (2) All new coins in the naya paisa series, designated as such under the notification of the Government of India in the Ministry of Finance, Department of Economic Affairs, Number S.R.O. 1120, dated the 11th May, 1956 issued prior to the commencement of the Indian Coinage (Amendment) Act, 1964 (17 of 1964), shall continue to be a legal tender in payment or on account, in case of,— (a) a half-rupee or fifty naye paise coin, for any sum not exceeding ten rupees; (b) any other coin, for any sum not exceeding one rupee. **7. Decimal system of coinage.—(1) The rupee shall be divided into one hundred units and any such** unit may be designated by the Government, by notification, under such name as it thinks fit. (2) All references in any enactment or in any notification, rule or order under any enactment or in any contract, deed or other instrument to any value expressed in annas, paisa and pies shall be construed as references to that value expressed in units referred to in sub-section (1) converted thereto at the rate of sixteen anna, sixty-four paise or one hundred and ninety-two pies to one hundred units referred to in subsection (1). (3) All references in any enactment or in any notification, rule or order under any enactment or in any contract, deed or other instrument to any value in naya paisa or naye paise shall be construed as references to that value expressed respectively in units referred to in sub-section (1). 4 ----- **8. Power to call in coin.—Notwithstanding anything contained in section 6, the Government may, by** notification, call in with effect from such date as may be specified in the notification, any coin, of whatever date or denomination and on and from the date so specified, such coin shall cease to be a legal tender, save to such extent as may be specified in the notification. CHAPTER IV DIMINISHED, DEFACED AND COUNTERFEIT COINS **9. Power to certain persons to cut, diminished or defaced coins.—(1) Where any coin which has** been minted and issued by or under the authority of the Government is tendered to any person authorised by it to act under this section, and such person has reason to believe that the coin— (a) has been diminished in weight so as to be more than such per cent. below standard weight as provided in section 5; or (b) has been defaced, he shall, by himself or through another person, cut or break the coin. (2) A person cutting or breaking coin under the provisions of clause (a) of sub-section (1) shall receive and pay for the coin at its face value. (3) A person cutting or breaking coin under the provisions of clause (b) of sub-section (1) shall observe the following procedure, namely:— (a) if such person has reason to believe, that the coin has been fraudulently defaced, he shall return the pieces to the person tendering the coin, who shall bear the loss caused by such cutting or breaking; (b) if such person has reason to believe, that the coin has not been fraudulently defaced, he shall receive and pay for the coin at its face value. **10. Power to certain persons to cut counterfeit coins.—Where any coin minted or issued by or** under the authority of the Government is tendered to any person authorised by the Government under section 9 and such person has reason to believe that the coin is counterfeit, he shall by himself or through another person cut or break the coin, and the tenderer shall bear the loss caused by such cutting or breaking. **11. Power of Mint to delegate its functions.—The Mint may in writing authorise any other** organisation of the Government to melt withdrawn coins or take any help of such organisation for the said purpose. _Explanation.—For the purposes of this section “organisation” means any Government industrial unit_ or public sector undertaking possessing melting facilities. CHAPTER V OFFENCES AND PENALTIES **12. Prohibition of making or melting or destruction of coins.—(1) No person shall—** (i) use any metal piece as coin whether stamped or unstamped, intended to be used as money except by the authority of the Government, or (ii) melt or destroy any coin, or (iii) use coin other than as a medium of exchange, or (iv) have in his possession, custody or control,— (a) any melted coin, whether in the molten state or in a solid state, or (b) any coin in a destroyed or mutilated state, or 5 ----- (c) coins substantially in excess of his reasonable requirements for the purpose of selling such coins for value other than their face value or for melting or for destroying or for disposing these coins other than as a medium of exchange. _Explanation.—For the purposes of determining the reasonable requirements of coins of a_ person, due regard shall be had to— (i) his total daily requirements of coins; (ii) the nature of his business, occupation or profession; (iii) the mode of his acquisition of coins; and (iv) the manner in which, and the place at which, such coins are being possessed, held or controlled by him. (2) Whoever is found to be in possession of any metal or material which contains alloys in the same proportions in which they have been used in the manufacture of any coin shall be presumed, until the contrary is proved, to have contravened the provisions of sub-section (1). (3) Nothing in this section shall apply— (i) to any person who is found in possession of any metal or scraps or scissel, etc., of non recyclable coinage metal, which he may so possess as a result of valid disposal by auctions by a Mint; (ii) to the Mint, Reserve Bank of India and its authorised agents, and suppliers of coins or coin blanks to the extent of orders placed by or under the authority of the Government until their supply or completion of orders placed by the Government; (iii) to any prospective supplier who intends to supply coin or coin blanks as samples against a valid tender documents purchased by him provided that quantity is in reasonable agreement with quantity of samples to be supplied. **13. Penalty for contravention of section 12.—Whoever contravenes any provisions of section 12** shall be punishable with imprisonment which may extend to seven years and with fine. **14. Prohibition and penalty for unlawful making, issue or possession of pieces of metal to be** **used as money.—(1) No person shall—** (a) make or issue or attempt to issue any metal piece except as provided under section 4 for the purpose of coin; (b) possess, custody or control of any metal piece with the intent to issue the piece for use as money for a medium of exchange. (2) Whoever contravenes the provisions of sub-section (1) shall be punishable with imprisonment which may extend to one year or with fine or with both: Provided that if any person convicted under this section is again convicted, he shall be punishable with imprisonment which may extend to three years or with fine or with both. **15. Prohibition and penalty for bringing metal piece for use as coin.—(1) No person shall bring** by sea or by land or by air into India of any piece of metal to be used as coin except with the authority or permission of the Government. (2) Whoever contravenes the provisions of sub-section (1) shall be punishable with imprisonment which may extend to seven years and with fine. **16. Offences by companies.—(1) Where an offence under this Act has been committed by a** company, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of its business, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: 6 ----- Provided that nothing contained in this sub-section shall render any person liable to any punishment, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding, anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of any director, manager, secretary or other officer, such director, manager, secretary or other officer of the company shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section,—_ (a) “company” means any body corporate and includes a firm, society or other association of individuals; and (b) “director”, in relation to— (i) a firm, means a partner or proprietor of the firm; (ii) a society or other association of individuals, means the person who is entrusted, under the rules of the society or other association, with the management of the affairs of the society or other association of the individuals, as the case may be. CHAPTER VI MISCELLANEOUS **17. Forfeiture.—Any coin or metal in relation to which any offence under this Act has been** committed shall be forfeited to the Government. **18. Probation of Offenders Act, 1958 not to apply to offences under this Act.—Nothing in the** Probation of Offenders Act, 1958 (20 of 1958) shall apply to offences under this Act. **19. Offences to be cognizable, bailable and non-compoundable.—Notwithstanding anything** contained in the Code of Criminal Procedure, 1973 (2 of 1974), offences under this Act shall be cognizable and bailable, but shall not be compoundable. **20. Amendment of Act 2 of 1934.—In the Reserve Bank of India Act, 1934,—** (i) in section 2, in clause (d), for the words and figures the Indian Coinage Act, 1906 (3 of 1906), the words and figures the Coinage Act, 2011shall be substituted; (ii) in section 39, for the words and figures "the Indian Coinage Act, 1906 (3 of 1906)", at both the places where they occur, the words and figures "the Coinage Act, 2011" shall be substituted. **21. Offences may be tried summarily.—Notwithstanding anything contained in section 260 of the** Code of Criminal Procedure, 1973 (2 of 1974), offences under this Act may be tried summarily by a Judicial Magistrate of the first class or a Metropolitan Magistrate. **22. Protection of action taken in good faith.—No suit or other legal proceedings shall lie against** any person in respect of anything which is in good faith done, or intended to be done, under or in pursuance of the provisions of this Act. **23. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act as may appear it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made under this section after the expiry of five years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. 7 ----- **24. Power to make rules.—(1) The Government may, by notification, make rules to carry out the** purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the use of metal for the purpose of making any coin under clause (f) of section 2; (b) the per cent. of metals for any coin under clause (i) of section 2; (c) the standard weight for any coin under clause (l) of section 2; (d) the dimensions, designs, metals, mixed metals or their composition, for coins under section 4; (e) the standard weight of coins and the remedy allowed in making such coins under section 5. **25. Rules to be laid before Parliament.—Every rule made under this Act shall be laid, as soon as** may be after it is made, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **26. Saving of making other coins at Mints.—Nothing in this Act shall be deemed to prohibit or** restrict the making at any Mint in India of coins intended for issue as money by the foreign Government of any territories beyond the limits of India. **27. Repeal and savings.—(1) The following enactments are hereby repealed—** (a) the Metal Tokens Act, 1889 (1 of 1889); (b) the Coinage Act, 1906 (3 of 1906); (c) the Bronze Coin (Legal Tender) Act, 1918 (22 of 1918); (d) the Currency Ordinance, 1940 (Ord. IV of 1940); (e) the Small Coins (Offences) Act, 1971 (52 of 1971). (2) The repeal by this Act of the enactments and Ordinance specified in sub-section (1) shall not— (a) affect any other enactment in which the repealed enactment or Ordinance has been applied, incorporated or referred to; (b) affect the validity, invalidity, effect or consequences of anything already done or suffered, or any right, title, obligation or liability already acquired, accrued or incurred or any remedy or proceeding in respect thereof, or any release or discharge of or from any debt, penalty, obligation, liability, claim or demand, or any indemnity already granted, or the proof of any past act or thing; (c) affect any principle or rule of law, or established jurisdiction, form or course of pleading, practice or procedure, or existing usage, custom, privilege, restriction, exemption, office or appointment, notwithstanding that the same respectively may have been in any manner affirmed or recognised or derived by, in or from any enactment or Ordinance hereby repealed; (d) revive or restore any jurisdiction, office, custom, liability, right, title, privilege, restriction, exemption, usage, practice, procedure or other matter or thing not now existing or in force. (3) The mention of particular matters in sub-section (1) shall not be held to prejudice or affect the general application of section 6 of the General Clauses Act, 1897 (10 of 1897), with regard to the effect of repeals. 8 ----- **28. Continuance of existing coins.—Notwithstanding the repeal of the enactments and the** Ordinance specified in sub-section (1) of section 27,— (a) all coins issued under the said enactments; and (b) Government of India one rupee note issued under the Currency Ordinance, 1940 (Ord. IV of 1940), which are legal tender immediately before the commencement of the Coinage Act, 2011 shall be deemed to be the coin and continue to be legal tender in payment or on account under the corresponding provisions of this Act. 9 -----

23-Sep-2011

15

The Orissa (Alteration of Name) Act, 2011

https://www.indiacode.nic.in/bitstream/123456789/2108/1/A2011-15.pdf

central

# THE ORISSA (ALTERATION OF NAME) ACT, 2011 _________ ARRANGEMENT OF SECTIONS __________ SECTIONS 1. Short title and commencement. 2. Definitions. 3. Alteration of name of State of Orissa. 4. Amendment of article 164. 5. Amendment of article 273. 6. Amendment of First Schedule to the Constitution. 7. Amendment of Fourth Schedule to the Constitution. 8. Power to adapt laws. 9. Power to construe laws. 10. Legal proceedings. 1 ----- # THE ORISSA (ALTERATION OF NAME) ACT, 2011 ACT NO. 15 OF 2011 [23rd September, 2011.] # An Act to alter the name of the State of Orissa. BE it enacted by Parliament in the Sixty-second Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the Orissa (Alteration of Name)** Act, 2011. (2) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “appointed day” means the date appointed under sub-section (2) of section 1 for the coming into force of this Act; (b) “appropriate Government” means, as respects a law relating to a matter enumerated in List I in the Seventh Schedule to the Constitution, the Central Government, and as respects any other law, the State Government; (c) “law” includes any enactment, Ordinance, regulation, order, bye-law, rule, scheme, notification or other instrument having the force of law in the whole or any part of the State of Orissa. **3. Alteration of name of State of Orissa.—As from the appointed day, the State of Orissa shall be** known as the State of Odisha. **4. Amendment of article 164.—In article 164 of the Constitution, in clause (1), in the proviso, for** the word “Orissa”, the word “Odisha” shall be substituted. **5. Amendment of article 273.—In article 273, in clause (1), for the word “Orissa”, the word** “Odisha” shall be substituted. **6. Amendment of First Schedule to the Constitution.— In the First Schedule to the Constitution,** under the heading “I. THE STATES”, in entry 10, under the column “Name”, for the word “Orissa”, the word “Odisha” shall be substituted. **7. Amendment of Fourth Schedule to the Constitution.—** In the Fourth Schedule to the Constitution, under the heading “TABLE”, in entry 14, in the second column, for the word “Orissa”, the word “Odisha” shall be substituted. **8. Power to adapt laws.—(1) For the purpose of giving effect to the alteration of the name of the** State of Orissa by section 3, the appropriate Government may, before the expiration of one year from the appointed day, by order, make such adaptations and modifications of any law made before the appointed day, whether by way of repeal or amendment, as may be necessary or expedient, and thereupon every such law shall have effect subject to the adaptations and modifications so made. (2) Nothing in sub-section (1) shall be deemed to prevent a competent Legislature or other competent authority from repealing or amending any law adapted or modified by the appropriate Government under the said sub-section. **9. Power to construe laws.—Notwithstanding that no provision or insufficient provision has been** made under section 8 for the adaptation of a law made before the appointed day, any court, tribunal or authority, required or empowered to enforce such law, may construe the law in such manner, without affecting the substance, as may be necessary or proper in regard to the matter before the court, tribunal or authority. **10. Legal proceedings.—Where immediately before the appointed day any legal proceedings are** pending to which the State of Orissa is a party, the State of Odisha shall be deemed to have been substituted for the State of Orissa in those proceedings. 1. 1st November, 2011, _vide notification No. G.S.R. 791(E), dated 1st November, 2011,_ _see Gazette of India,_ Extraordinary, Part II, sec. 3 (i). 2 -----

23-Dec-2011

20

The National Capital Territory of Delhi Laws (Special Provisions) Second Act, 2011

https://www.indiacode.nic.in/bitstream/123456789/2115/4/A2011-20.pdf

central

# THE NATIONAL CAPITAL TERRITORY OF DELHI LAWS (SPECIAL PROVISIONS) SECOND ACT, 2011 __________ ARRANGEMENT OF SECTIONS SECTIONS 1. Short title, extent, commencement and duration. 2. Definitions. 3. Enforcement to be kept in abeyance. 4. Provisions of this Act not to apply in certain cases. 5. Power of Central Government to give directions. 6. Validation of acts done or omitted to be done, etc., during 1st January, 2012 up to the date of enactment of this Act. 1 ----- # THE NATIONAL CAPITAL TERRITORY OF DELHI LAWS (SPECIAL PROVISIONS) SECOND ACT, 2011 ACT NO. 20 OF 2011 [23rd December, 2011.] # An Act to make special provisions for the National Capital Territory of Delhi [1][for a further period up to the 31st day of December, [2][2026]] and for matters connected therewith or incidental thereto. WHEREAS there has been phenomenal increase in the population of the National Capital Territory of Delhi owing to migration and other factors resulting in tremendous pressure on land and infrastructure leading to encroachment or unauthorised developments which are not in consonance with the concept of planned development as provided in the Master Plan for Delhi, 2001 and the relevant Acts and building bye-laws made thereunder; AND WHEREAS the Master Plan for Delhi, 2001 was extensively modified and notified by the Central Government on the 7th day of February, 2007 with the perspective for the year 2021 keeping in view the emerging new dimensions in urban development vis-a-vis the social, financial and other ground realities; AND WHEREAS the Master Plan for Delhi with the perspective for the year 2021 specifically provides for strategies for housing for urban poor as well as to deal with the informal sector; 3* - - - [4][AND WHEREAS the exercise to formulate the Master Plan for Delhi with the perspective for the year 2041 is under progress; AND WHEREAS the National Capital Territory of Delhi (Recognition of Property Rights of Residents in Unauthorised Colonies) Act, 2019 (45 of 2019) was enacted to recognize and confer rights of ownership or transfer or mortgage to the residents of unauthorized colonies as one time special measure; AND WHEREAS in supersession of the Regulations for Regularisation of Unauthorised Colonies in Delhi notified on 24[th] March, 2008, the National Capital Territory of Delhi (Recognition of Property Rights of Residents in Unauthorised Colonies) Regulations, 2019 notified in the Gazette of India on 29[th] October, 2019; 5[AND WHEREAS the Development Control Norms for unauthorised colonies as provided in the National Capital Territory of Delhi (Recognition of Property Rights of Residents in Unauthorised Colonies) Regulations, 2019, have been notified on the 8th day of March, 2022; AND WHEREAS the process of conferring the ownership rights to the residents of unauthorised colonies and action as per the Development Control Norms for unauthorised colonies is under progress and will take time;] AND WHEREAS based on the policy finalised by the Central Government regarding village abadi area and their extensions, the Building Regulations for Special Area, Unauthorised Regularised Colonies and Village Abadis, have been made by the Delhi Development Authority under sub-section (1) of section 57 of the Delhi Development Act, 1957 (61 of 1957) notified in the Gazette of India vide S.O. 97(E), dated the 17[th] January, 2011; AND WHEREAS more time is required for completion of action envisaged for unauthorised colonies, village abadi area and their extension and special areas;] AND WHEREAS the revised policy for proper arrangements for relocation and rehabilitation of slum dwellers and jhuggi-jhompri clusters in the National Capital Territory of Delhi has been formulated and 1. Subs. by Act 4 of 2021, s. 2, for “for a further period up to the 31[st] day of December, 2020” (w.e.f. 29-12-2020). 2. Subs. by Act 42 of 2023, s. 2, for “2023” (w.e.f. 24-12-2023). 3. Fourth paragraph omitted by Act 32 of 2017, s. 3 (w.e.f. 31-12-2017). 4. Subs. by Act 4 of 2021, s. 3, for fourth Paragraph to eighth paragraph (w.e.f. 29-12-2020). 5. Subs. by Act 42 of 2023, s. 3, for seventh paragraph (w.e.f. 24-12-2023). 2 ----- accordingly, the Delhi Urban Shelter Improvement Board Act, 2010 (Delhi Act 7 of 2010) has been enacted by the Legislature of the National Capital Territory of Delhi and notified with effect from the 1st July, 2010 to provide for implementation of schemes for improvement of slums and _jhuggi-jhompri_ clusters with a view to bring improvement in environment and living conditions, and to prepare housing scheme for such persons; AND WHEREAS the Delhi Urban Shelter Improvement Board has identified about six hundred and eighty-five _jhuggi-jhompri clusters in the National Capital Territory of Delhi and relocation thereof is_ likely to take considerable time; 1[AND WHEREAS the revised policy regarding farm houses is being prepared by the Delhi Development Authority and its finalisation is likely to take more time;] AND WHEREAS pursuant to [2][the Master Plan], the Zonal Development Plans in respect of various Zones have been notified which provides for regularisation of schools, dispensaries, religious institutions and cultural institutions established on or before the 1st January, 2006 in non-conforming areas; AND WHEREAS the policy with respect to storages, warehouses and godowns used for agricultural inputs or produce (including dairy and poultry) in rural areas built on agricultural land and guidelines for redevelopment of existing godown clusters in non-conforming areas (including those for a storage of nonagricultural goods) required to cater to the needs of the people of the National Capital Territory of Delhi are under consideration of the Central Government in consultation with the Delhi Development Authority; 3[AND WHEREAS the policy with respect to the norms for godown clusters existing in non-conforming areas has been notified by the Central Government on 21st June, 2018;] AND WHEREAS with respect to special areas (being the areas consisting of walled city, walled city extension and area known as Karol Bagh and as such other areas as may be designated as special area) referred to in clause (vi) of regulation 2 of the Building Regulations for Special Area, Unauthorised Regularised Colonies and Village Abadis, 2010 notified in the Gazette of India vide S.O. 97(E), dated the 17th January, 2011, is being taken for formulation of redevelopment plan and schemes by concerned local authority which is likely to take considerable time; 4* - - - AND WHEREAS in view of the foregoing paragraphs, it is expedient and in public interest that no hardship be caused (whether by way of sealing or demolition of the structures or otherwise), to the public until the revision of Master Plan as stated in the preceding paragraph is undertaken to facilitate the smooth review of the Master Plan; AND WHEREAS the National Capital Territory of Delhi Laws (Special Provisions) Act, 2007 (43 of 2007) was enacted on the 5th day of December, 2007 to make special provisions for the areas of National Capital Territory of Delhi for a period of up to the 31st day of December, 2008 which ceased to operate after the 31st December, 2008; AND WHEREAS the National Capital Territory of Delhi Laws (Special Provisions) Act, 2009 (24 of 2009) was enacted in continuation of the aforesaid Act for a period up to the 31st day of December, 2009 to make special provisions for the areas of the National Capital Territory of Delhi and that Act ceased to operate after the 31st day of December, 2009; AND WHEREAS the National Capital Territory of Delhi Laws (Special Provisions) Second Act, 2009 (40 of 2009) was enacted in continuation of the aforesaid Act for a period up to the 31st day of December, 2010 to make special provisions for the areas of National Capital Territory of Delhi and that Act ceased to operate after the 31st day of December, 2010; 1. Subs. by Act 4 of 2021, s. 3, for eleventh paragraph (w.e.f. 29-12-2020). 2. Subs. by s. 3, ibid., for “the Master Plan for Delhi, 2021” (w.e.f. 29-12-2020). 3. Ins. by s. 3, ibid. (w.e.f. 29-12-2020). 4. Omitted by Act 42 of 2023, s. 3, for seventeenth paragraph (w.e.f. 24-12-2023). 3 ----- AND WHEREAS the National Capital Territory of Delhi Laws (Special Provisions) Act, 2011 (5 of 2011) has been enacted to give continued effect to provisions of the enactment specified in the preceding paragraph for a period up to the 31st day of December, 2011 and to make special provisions for the areas of the National Capital Territory of Delhi and that Act, shall cease to operate after the 31st day of December, 2011; AND WHEREAS it is expedient to have a law in terms of [1][the Master Plan], in continuation of the said Acts [2][for a period up to [3][the 31st day of December, [4][2026]]] to provide for relief and to minimise avoidable hardships and irreparable loss to the people of the National Capital Territory of Delhi against any punitive action by any agency in respect of the persons covered by the policies referred to above. BE it enacted by Parliament in the Sixty-second Year of the Republic of India as follows:— **1. Short title, extent, commencement and duration.—(1) This Act may be called the National** Capital Territory of Delhi Laws (Special Provisions) Second Act, 2011. (2) It extends to the National Capital Territory of Delhi. (3) It shall come into force on the 1st day of January, 2012. (4) [5][It shall cease to have effect on the 31st day of December, [6][2026]], except as respects things done or omitted to be done before such cesser, and upon such cesser section 6 of the General Clauses Act, 1897 (10 of 1897), shall apply as if this Act had then been repealed by a Central Act. **2. Definitions.—(1) In this Act, unless the context otherwise requires,—** (a) “building bye-laws” means bye-laws made under section 481 of the Delhi Municipal Corporation Act, 1957 (66 of 1957) or the bye-laws made under section 188, sub-section (3) of section 189 and sub-section (1) of section 190 of the Punjab Municipal Act, 1911 (Punjab Act 3 of 1911), as in force in New Delhi or the regulations made under sub-section (1) of section 57 of the Delhi Development Act, 1957 (61 of 1957), relating to buildings; (b) “Delhi” means the entire area of the National Capital Territory of Delhi except the Delhi Cantonment as defined in clause (11) of section 2 of the Delhi Municipal Corporation Act, 1957 (66 of 1957); (c) “encroachment” means unauthorised occupation of Government land or public land other than streets, lanes, footpath and parks, by way of putting temporary, semi-permanent or permanent structure for residential use or commercial use or any other use; (d) “local authority” means the Delhi Municipal Corporation established under the Delhi Municipal Corporation Act, 1957 (66 of 1957), or the New Delhi Municipal Council established under the New Delhi Municipal Council Act, 1994 (44 of 1994) or the Delhi Development Authority established under the Delhi Development Act, 1957 (61 of 1957), legally entitled to exercise control in respect of the areas under their respective jurisdiction; 7[(e) “Master Plan” means the Master Plan for Delhi as notified under the Delhi Development Act, 1957 (61 of 1957);] (f) “notification” means a notification published in the Official Gazette; (g) “punitive action” means action taken by a local authority under the relevant law against unauthorised development and shall include demolition, sealing of premises and displacement of 1. Subs. by Act 4 of 2021, s. 3, for “the Master Plan for Delhi, 2021” (w.e.f. 29-12-2020). 2. Subs. by Act 32 of 2017, s. 3, for “for a period up to the 31st day of December, 2017” (w.e.f. 31-12-2017). 3. Subs. by Act 4 of 2021, s. 3, for “the 31st day of December, 2020” (w.e.f. 29-12-2020). 4. Subs. by Act 42 of 2023, s. 3, for “2023” (w.e.f. 24-12-2023). 5. Subs. by Act 4 of 2021, s. 4, for “It shall cease to have effect on the 31st day of December, 2020” (w.e.f. 29-12 2020). 6. Subs. by Act 42 of 2023, s. 4, for “2023” (w.e.f. 24-12-2023). 7. Subs. by Act 4 of 2021, s. 5, for clause (e) (w.e.f. 29-12-2020). 4 ----- persons or their business establishment from their existing location, whether in pursuance of court orders or otherwise; (h) “relevant law” means in case of— (i) the Delhi Development Authority, the Delhi Development Act, 1957 (61 of 1957); (ii) the Municipal Corporation of Delhi, the Delhi Municipal Corporation Act, 1957 (66 of 1957); and (iii) the New Delhi Municipal Council, the New Delhi Municipal Council Act, 1994 (44 of 1994); (i) “special area”, shall have the meaning assigned to it in clause (vi) of regulation 2 of the Building Regulations for Special Area, Unauthorised Regularised Colonies and Village Abadis, 2010 notified in the Gazette of India vide S.O. 97(E), dated the 17th January, 2011; (j) “unauthorised development” means use of land or use of building or construction of building or development of colonies carried out in contravention of the sanctioned plans or without obtaining the sanction of plans, or in contravention of the land use as permitted under the Master Plan or Zonal Plan or layout plan, as the case may be, and includes any encroachment. (2) The words and expressions used but not defined herein shall have the meanings respectively assigned to them in the Delhi Development Act, 1957 (61 of 1957), the Delhi Municipal Corporation Act, 1957 (66 of 1957) and the New Delhi Municipal Council Act, 1994 (44 of 1994). **3. Enforcement to be kept in abeyance.—(1) Notwithstanding anything contained in any relevant** law or any rules, regulations or bye-laws made thereunder, the Central Government shall before the expiry of this Act, take all possible measures to finalise norms, policy guidelines, feasible strategies and make orderly arrangements to deal with the problem of encroachment or unauthorised development in the form of encroachment by slum dwellers and Jhuggi-Jhompri clusters, [1]*** unauthorised colonies, village _abadi area (including urban villages), and their extensions, existing farm houses involving construction_ beyond permissible building limits and schools, dispensaries, religious institutions, cultural institutions, storages, warehouses and godowns used for agricultural inputs or produce (including dairy and poultry) in rural areas built on agricultural land, as mentioned below:— (a) orderly arrangements for relocation and rehabilitation of slum dwellers and _Jhuggi-Jhompri_ clusters in Delhi in accordance with the provisions of the Delhi Urban Shelter Improvement Board Act, 2010 (Delhi Act 7 of 2010) and [2][the Master Plan] to ensure its development in a sustainable, planned and humane manner; 3* - - - 4[(c) orderly arrangements in accordance with the provisions of the National Capital Territory of Delhi (Recognition of Property Rights of Residents in Unauthorised Colonies) Act, 2019 (45 of 2019), the National Capital Territory of Delhi (Recognition of Property Rights of Residents in Unauthorised Colonies) Regulations, 2019 and the regulations for village abadi area (including urban villages) and their extensions as per the following cut-off dates:— (i) for unauthorised colonies as provided in the National Capital Territory of Delhi (Recognition of Property Rights of Residents in Unauthorised Colonies) Regulations, 2019; (ii) for village abadi area (including urban villages) and their extensions as existed on the 31[st] day of March, 2002 and where construction took place even beyond that date and up to 1st day of June, 2014;] (d) policy regarding existing farm houses involving construction beyond permissible building limits; 1. The words “hawkers and urban street vendors,” omitted by Act 32 of 2017, s. 5 (w.e.f. 31-12-2017). 2. Subs. by Act 4 of 2021, s. 6, for “the Master Plan for Delhi, 2021” (w.e.f. 29-12-2020). 3. Clause (b) omitted by Act 32 of 2017, s. 5 (w.e.f. 31-12-2017). 4. Subs. by Act 4 of 2021, s. 6, for clause (c) (w.e.f. 29-12-2020). 5 ----- (e) policy or plan for orderly arrangement regarding schools, dispensaries, religious institutions, cultural institutions, storages, warehouses and godowns used for agricultural inputs or produce (including dairy and poultry) in rural areas built on agricultural land and guidelines for redevelopment of existing godown clusters (including those for a storage of non-agricultural goods) required to cater to the needs of the people of the National Capital Territory of Delhi; (f) orderly arrangements in respect of special areas in accordance with the Building Regulations for Special Area, Unauthorised Regularised Colonies and Village Abadis, 2010 within overall ambit of Master Plan in force; and (g) policy or plan for orderly arrangements in all other areas of the National Capital Territory of Delhi in consonance with the Master Plan on its review. (2) Subject to the provisions contained in sub-section (1) and notwithstanding any judgment, decree or order of any court, status quo— (i) as on the 1st day of January, 2006 in respect of encroachment or unauthorised development; 1[(ii) in respect of unauthorised colonies identified under the National Capital Territory of Delhi (Recognition of Property Rights of Residents in unauthorised Colonies) Regulations, 2019, in respect of village abadi area (including urban villages) and their extensions, which existed on the 31st day of March, 2002, and in aforesaid categories, where construction took place up to 1st day of June, 2014, as mentioned in sub-section (1);] (iii) in respect of special areas as per the Building Regulations for Special Area, Unauthorised Regularised Colonies and Village Abadis, 2010; and (iv) in respect of all other areas within the National Capital Territory of Delhi as on the 8th day of February, 2007, shall be maintained. _Explanation.— For the purposes of this sub-section, it is hereby clarified that any development_ approved by the competent authority or the local authority under the relevant laws and the rules or regulations made thereunder, including repairs permissible under the building bye-laws in force, shall continue to remain permitted. (3) All notices issued by any local authority for initiating action against encroachment or unauthorised development in respect of areas referred to in sub-section (1), shall be deemed to have been suspended and no punitive action shall be taken [2][till the 31st day of December, [3][2026]], if— (a) it is constructed prior to the dates specified for different areas as enumerated in sub-section (2); (b) it conforms to the safety standards as in force or such other safety requirements as may be notified by the Central Government; and (c) it complies with the directions with respect to safety, if any, issued by the Central Government: Provided that in case punitive action is required to be taken by any local authority, prior approval of the Administrator of the National Capital Territory of Delhi or the officer authorised by him in this behalf, shall be obtained by the authority or officer concerned. (4) Notwithstanding any other provision contained in this Act, the Central Government may, [4][at any time before the 31st day of December, [3][2026]], withdraw the exemption by notification in respect of encroachment or unauthorised development mentioned in sub-section (2) or sub-section (3), as the case may be. 1. Subs. by Act 4 of 2021, s. 6, for clause (ii) (w.e.f. 29-12-2020). 2. Subs. by s. 6, ibid., for “till the 31st day of December, 2020” (w.e.f. 29-12-2020). 3. Subs. by Act 42 of 2023, s. 5, for “2023” (w.e.f. 24-12-2023). 4. Subs. by Act 4 of 2021, s. 6, for “at any time before the 31st day of December, 2020” (w.e.f. 29-12-2020). 6 ----- **4. Provisions of this Act not to apply in certain cases.—During the period of operation of this Act,** no relief shall be available under the provisions of section 3 in respect of the following encroachment or unauthorised development, namely:— (a) encroachment on public land except in those cases which are covered under clauses [1][(a) and (c)] of sub-section (1) of section 3; (b) removal of slums and _Jhuggi-Jhompri dwellers,_ [2]*** unauthorised colonies or part thereof, village _abadi area (including urban villages) and their extensions in accordance with the relevant_ policies approved by the Central Government for clearance of land required for specific public projects. **5. Power of Central Government to give directions.—The Central Government may, from time to** time, issue such directions to the local authorities as it may deem fit, for giving effect to the provisions of this Act and it shall be the duty of the local authorities, to comply with such directions. **6. Validation of acts done or omitted to be done, etc., during 1st January, 2012 up to the date of** **enactment of this Act.—Notwithstanding any judgment, decree or order of any court, all things done, or,** omitted to be done, and all action taken, or, not taken, during the period beginning on or after the 1st day of January, 2012 and ending immediately before the date of enactment of this Act, shall, in so far as they are in conformity with the provisions of this Act, be deemed to have been done, or, omitted to be done, or, taken, or, not taken, under these provisions as if such provisions were in force at the time such things were done or omitted to be done and action taken or not taken during the aforesaid period. __________ 1. Subs. by Act 32 of 2017, s. 6, for “(a), (b) and (c)” (w.e.f. 31-12-2017). 2. The words “hawkers and urban street vendors,” omitted by s. 6, ibid. (w.e.f. 31-12-2017). 7 -----

22-Jan-2012

12

The Factoring Regulation Act, 2011

https://www.indiacode.nic.in/bitstream/123456789/2116/4/a2012-12.pdf

central

# THE FACTORING REGULATION ACT, 2011 __________ # ARRANGEMENT OF SECTIONS _________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II REGISTRATION OF FACTORS 3. Registration of factors. 4. Provisions of non-banking financial companies apply to factor. 5. Requirement for registration as a factor not to apply to bank or Statutory corporation or Government company. 6. Powers of Reserve Bank to give directions and to collect information from factors. CHAPTER III ASSIGNMENT OF RECEIVABLES 7. Assignment of receivables. 8. Notice to debtor and discharge of obligation of such debtor. 9. Discharge of liability of debtor on payment to assignee. 10. Payment made by debtor to assignor to be held in trust for benefit of assignee in certain cases. CHAPTER IV RIGHTS AND OBLIGATIONS OF PARTIES TO CONTRACT FOR ASSIGMENT OF RECEIVABLES 11. Rights and obligations of parties to contract for assignment of receivables. 12. Liability of debtor. 13. Assignor to be trustee of assignee. 14. Liability of debtor in case of an assignor being mircro or small enterprises. 15. Principle of debtor protection. 16. Defences and right of set off of debtor. 17. Modification of original contract. 18. Breach of contract. CHAPTER V REGISTRATION OF ASSIGNMENTS 19. Registration of certain assignments of receivables transactions. 20. Public inspection. 1 ----- CHAPTER VI OFFENCES AND PENALTIES SECTIONS 21. Penalties. 22. Penalties for non-compliance of direction by Reserve Bank. 23. Offences. 24. Cognizance of offences. 25. Offences by factors. CHAPTER VII MISCELLANEOUS 26. Provisions of this Act to override other laws. 27. Application of other laws not barred. 28. Limitation. 29. Confidentiality of information. 30. Power to exempt. 31. Provisions of this Act not to apply or affect in certain cases. 31A. Power to make regulations. 32. Power of Central Government to make rules. 33. Laying of rules. 34. Power to remove difficulties. 35. Amendments to certain enactments. THE SCHEDULE. 2 ----- # THE FACTORING REGULATION ACT, 2011 ACT NO. 12 OF 2012 [22nd January, 2012.] # An Act to provide for and regulate assignment of receivables by making provision for registration there for and rights and obligations of parties to contract for assignment of receivables and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Sixty-second Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Factoring Regulation** Act, 2011. (2) It extends to the whole of India. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint: Provided that different dates may be appointed for different provisions of this Act, and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “assignment” means [2][transfer by agreement to a factor of an undivided interest, in whole or in part, in the receivables of an assignor due from a debtor and includes such transfer where either the assignor or the debtor is situated or established outside India]. _Explanation.—For the purposes of this clause, undivided interest of any assignor in any_ receivable shall not include creation of rights in receivables as security for loans and advances or other obligations by a bank or a financial institution; (b) “assignee” means a factor in whose favour the receivable is transferred; (c) “assignor” means any person who is the owner of any receivable; (d) “bank” means, — (i) a banking company; (ii) a corresponding new bank; (iii) the State Bank of India; (iv) a subsidiary bank; (v) such other bank which the Central Government may by notification specify for the purposes of this Act on the recommendations of the Reserve Bank; or (vi) a Multi-State Co-operative Society registered under the Multi-State Co-operative Societies Act, 2002 (39 of 2002) and licensed to undertake business of banking by the Reserve Bank under the provisions of the Banking Regulation Act, 1949 (10 of 1949); (e) “banking company” shall have the meaning assigned to it in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949); (f) “business enterprise” means any enterprise or medium enterprise, micro enterprise or small enterprise as defined in clauses (e), (g), (h) and (m) of section 2 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006), respectively engaged in any business activity; 1. 2nd April, 2012 (Ss. 19, 20, 21, 32), vide notification No. S.O. 711(E), dated 2nd April, 2012, see Gazette of India, Extraordinary, Part II, sec. 3 (ii). 1st February, 2012 (expect ss. 19, 20, 21 and 32), vide notification No. S.O. 1399(E), dated 21st June, 2012, _see_ Gazette of India, Extraordinary, Part II, sec. 3(ii). 2. Subs. by Act, 21 of 2021, s. 2, for the certain words (w.e.f. 23-8-2021). 3 ----- (g) “corresponding new bank” shall have the meaning assigned to it in clause (da) of section 5 of the Banking Regulation Act, 1949 (10 of 1949); (h) “debtor” means any person liable to the assignor, whether under a contract or otherwise, to pay any receivable or discharge any obligation in respect of the receivable whether existing, accruing, future, conditional or contingent; (i) “factor” means a non-banking financial company as defined in clause (f) of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934) which has been granted a certificate of registration under sub-section (1) of section 3 or anybody corporate established under an Act of Parliament or any State Legislature or any Bank or any company registered under the Companies Act, 1956 (1 of 1956) engaged in the factoring business; (j) “factoring business” means the business of [1][acquisition by way of assignment of receivables of assignor for a consideration for the purpose of collection of such receivables or for financing, whether by way of making loans or advances or otherwise, against such assignment, but] does not include— (i) credit facilities provided by a bank [2][or a non-banking financial company] in its ordinary course of business against security of receivables; (ii) any activity as commission agent or otherwise for sale of agricultural produce or goods of any kind whatsoever or any activity relating to the production, storage, supply, distribution, acquisition or control of such produce or goods or provision of any services. _Explanation.—For the purposes of this clause—_ (i) the expression “agricultural produce” shall have the meaning assigned to it under clause (a) of section 2 of the Agricultural Produce (Grading and Marking) Act, 1937 (1 of 1937); and (ii) the expressions “goods” and “commission agent” shall have the meanings assigned to them respectively under clause (d) and Explanation (ii) of clause (i) of section 2 of the Forward Contracts (Regulation) Act, 1952 (74 of 1952); (k) “financial contract” means any spot, forward, future, option or swap transaction involving interest rates, commodities, currencies, shares, bonds, debentures or any other financial instrument, any repurchase of securities and lending transaction or any other similar transaction or combination of such transactions entered into in the financial markets; (l) “netting agreement” means any agreement among the system participants for the purpose of determination by the system provider of the amount of money or securities due or payable or deliverable as a result of setting off or adjusting the payment obligations or delivery obligations among the system participants, including the claims and obligations arising out of the termination by the system provider, on the insolvency or dissolution or winding up of any system participant or such circumstances as the system provider, may specify in its rules or regulations or bye-laws (by whatever name called), of the transactions admitted for settlement at a future date so that only a net claim be demanded or a net obligation be owned; (m) “notification” means a notification published in the Official Gazette; (n) “prescribed” means prescribed by rules made under this Act; (o) “property” means,— (i) the immovable property; (ii) the movable property; (iii) any debt or any right to receive payment of money, whether secured or unsecured; (iv) the receivables; 1. Subs. by Act 21 of 2021, s. 2, for certain words (w.e.f. 23-8-2021). 2. Ins. by s. 2, ibid (w.e.f. 23-8-2021). 4 ----- (v) the intangible assets, being know-how, patent, copyright, design, trade mark, licence, franchise or any other business or commercial right of similar nature; 1[(p) “receivables” means the money owed by a debtor and not yet paid to the assignor for goods or services and includes payment of any sum, by whatever name called, required to be paid for the toll or for the use of any infrastructure facility or services; (pa) “regulations” means regulations made by the Reserve Bank under this Act;] (q) “Reserve Bank”, means the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934); (r) “State Bank of India” means the State Bank of India constituted under section 3 of the State Bank of India Act, 1955 (23 of 1955); (s) “Subsidiary Bank” shall have the meaning assigned to it in clause (k) of section 2 of the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959); 2[(sa) Trade Receivables Discounting System” means a payment system authorised by the Reserve Bank under section 7 of the Payment and Settlement Systems Act, 2007 (51 of 2007) for the purpose of facilitating financing of trade receivables;] (t) words and expressions used and not defined in this Act but defined in the Reserve Bank of India Act, 1934 (2 of 1934), the Banking Regulation Act, 1949 (10 of 1949), the Companies Act, 1956 (1 of 1956), the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002), the Credit Information Companies (Regulation) Act, 2005 (30 of 2005), or the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006), shall have the meanings respectively assigned to them in those Acts. CHAPTER II REGISTRATION OF FACTORS **3. Registration of factors.—(1) No factor shall commence or carry on the factoring business unless it** obtains a certificate of registration from the Reserve Bank to commence or carry on the factoring business under this Act. (2) Every factor shall make an application for registration to the Reserve Bank in such form and manner as it may specify: 3* - - - (3) Every applicant for grant of a certificate of a registration as a factor shall comply, for the purpose of registration, with all the requirements to be fulfilled by an applicant for grant of certificate of registration as non-banking financial company under the Reserve Bank of India Act, 1934 (2 of 1934) and all the provisions of that Act, so far as they relate to the registration of non-banking financial companies, shall (except those provided for under this Act) mutatis mutandis apply. 4[(4) The Reserve Bank may grant the certificate of registration in such manner as may be specified by regulations.] (5) Save as otherwise provided in this Act, every factor including factors not subject to requirement of registration under section 5, shall be governed by the Reserve Bank of India Act, 1934 (2 of 1934), the rules and regulations made thereunder and the directions or guidelines issued by the Reserve Bank, from time to time. **4. Provisions of non-banking financial companies apply to factor.—-All provisions of Chapter** IIIB of the Reserve Bank of India Act, 1934 (2 of 1934) relating to non-banking financial companies which have been granted a certificate of registration under sub-section (5) of section 45-IA of the Reserve 1. Subs. by Act 21 of 2021, s. 2, for clause (p) (w.e.f. 23-8-2021). 2. Ins. by s. 2, ibid. (w.e.f. 23-8-2021). 3. The proviso and Explanation omitted by Act 21 of 2021, s. 3 (w.e.f. 23-8-2021). 4. Subs. by s. 3, ibid., for sub-section (4) (w.e.f. 23-8-2021). 5 ----- Bank of India Act, 1934 shall (except those specifically provided for under this Act) _mutatis mutandis_ apply to a factor which has been granted a certificate of registration under section 3. **5. Recruitment for registration as a factor not to apply to bank or Statutory corporation or** **Government company.—Nothing contained in section 3 shall apply to a bank or any corporation** established under an Act of Parliament or State Legislature, or a Government Company as defined under section 617 of the Companies Act, 1956 (1 of 1956). **6. Powers of Reserve Bank to give directions and to collect information from factors.—(1) The** Reserve Bank may, at any time by general or special order, direct that every factor shall furnish to it, in such form, at such intervals and within such time, such statements, information or particulars relating to factoring business undertaken by the factor, as may be specified by the Reserve Bank from time to time. (2) The Reserve Bank may, if it considers necessary in the interest of business enterprises availing factoring services or in the interest of factors or interest of other stake holders give directions to the factors either generally or to any factor in particular or group of factors in respect of any matters relating to or connected with the factoring business undertaken by such factors. (3) If any factor fails to comply with any direction given by the Reserve Bank under sub-section (2), the Reserve Bank may prohibit such factor from undertaking the factoring business: Provided that before prohibiting any factor from undertaking the factoring business, the factor shall be given a reasonable opportunity of being heard. CHAPTER III ASSIGNMENT OF RECEIVABLES 7. Assignment of receivables.—(1) Any assignor may, by an agreement in writing, assign any receivable due and payable to him by any debtor, to any factor, being the assignee, for a consideration as may be agreed between the assignor and the assignee and the assignor shall at the time of such assignment, disclose to the assignee any defences and right of set off that may be available to the debtor: Provided that if the debtor liable to pay the receivable or the business of factor is situated or established outside India, any assignment of receivable shall be subject to the provisions of the Foreign Exchange Management Act, 1999 (42 of 1999). (2) On execution of agreement in writing for assignment of receivables, all the rights, remedies and any security interest created over any property exclusively to secure the due payment of receivable shall vest in the assignee and the assignee shall have an absolute right to recover such receivable and exercise all the rights and remedies of the assignor whether by way of damages or otherwise, or whether notice of assignment as provided in section 8 is given or not. (3) Any assignment of receivables which constitute security for repayment of any loan advanced by any Bank or other creditor and if the assignor has given notice of such encumbrance to the assignee, then on accepting assignment of such receivable, the assignee shall pay the consideration for such assignment to the Bank or the creditor, as the case may be. **8. Notice to debtor and discharge of obligation of such debtor.—Any assignee of a receivable** shall not be entitled to demand payment of the receivable from the debtor in respect of such receivables unless notice of such assignment is given to the debtor by the assignor or the assignee along with express authority in its favors granted by the assignor. **9. Discharge of liability of debtor on payment to assignee.—Where a notice of assignment of** receivable is given by the assignor or the assignee, as the case may be, under section 8 the debtor on receipt of such notice, shall make payment to the assignee and payment made to such assignee in discharge of any obligation in relation to the receivables specified in the notice shall fully discharge the debtor making the payment, from corresponding liability in respect of such payment. **10. Payment made by debtor to assignor to be held in trust for benefit of assignee in certain** **cases.—Where no notice of assignment of receivables is given by the assignor or under his authority by** the assignee, any payment made by the debtor in respect of such receivables to the assignor shall be held 6 ----- in trust for the benefit of the assignee which shall be forthwith be paid over to such assignee, as the case may be, or its agent duly authorised in this behalf. CHAPTER IV RIGHTS AND OBLIGATIONS OF PARTIES TO CONTRACT FOR ASSIGNMENT OF RECEIVABLES **11. Rights and obligations of parties to contract for assignment of receivables.—Without** prejudice to the provisions contained in any other law for the time being in force, the debtor shall have the right to notice of assignment under section 8 before any demand is made on it by the assignee and until notice is served on the debtor, the debtor shall be entitled to make payments to the assignor in respect of assigned receivables in accordance with the original contract and such payment shall fully discharge the debtor from corresponding liability under the original contract. _Explanation.—For the removal of doubts, it is hereby clarified that nothing contained in this section_ shall affect the rights of debtor to make payment to the assignee under section 9. **12. Liability of debtor.—Where a notice of assignment as referred to in section 8 is served, the** debtor shall, — (a) intimate the assignee the details of the deposits or advance or payment on account made to the assignor before the receipt of notice of assignment and also provide any other information to the assignee relating to the receivable as and when called upon by the assignee to do so; (b) not be entitled to a valid discharge of his liability in respect of assigned receivables, unless he makes the payment due on an assigned receivables to the assignee. **13. Assignor to be trustee of assignee.—Notwithstanding anything to the contrary contained in any** other law for the time being in force, where a debtor makes any payment to an assignor which represents payment due on an assigned receivable, such payment shall be deemed to be for the benefit of the assignee, and the assignor shall be deemed to have received the amount of such payment as a trustee of the assignee and the assignor shall make payment of such amount to the assignee. **14. Liability of debtor in case of an assignor being micro or small enterprises.—(1) If the** assignor of receivables is a micro or small enterprise, the liability of the debtor to make payment due on assigned receivables shall be subject to the provisions contained in sections 15 to 17 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006) with regards to the delayed payments of the receivables. (2) In the event of delay in payment on the part of the debtor to pay the receivable of any micro or small enterprise, the assignee shall be entitled to receive interest for the delayed period and shall take steps under the provisions of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006) for the purpose of the recovery of the interest and shall pay such interest to the micro or small enterprise. **15. Principle of debtor protection.—(1) Save as otherwise provided in this Act, any assignment of** the receivable shall not, without the express consent of the debtor in writing, affect the rights and obligations of the debtor (including the terms and conditions of the contract). (2) Consequent upon the assignment of receivables, the payment instruction under the contract entered into between assignor and debtor may modify the name of person, address or account to which the debtor is required to make payment, but such instructions shall not modify:— (a) the amount of debt specified in the original contract; or (b) the place specified in the original contract at which payment is to be made or in case no such place is mentioned in the contract, the place of payment to a place other than where the debtor is situated; or (c) the date on which payment is to be made or other terms of the original contract relating to payment. **16. Defences and right of set off of debtor.—** In a claim by the assignee against the debtor for payment of the assigned receivable, the debtor may raise against the assignee,— 7 ----- (a) all defences and right of set off arising from the original contract, entered into between the assignor and debtor or any other contract that was part of the same transaction, of which the debtor could avail himself as if the assignment had not been made and such claim were made by the assignor instead of assignee: Provided that the assignee shall, unless otherwise agreed between the parties, be entitled to recover from the assignor, any loss suffered by it as a result of any such defences and right of set off being exercised by the debtor; (b) any other right of set off if it was available to the debtor at the time notice, under section 8, of the assignment was received by the debtor. **17. Modification of original contract.—(1) Any agreement made before service of notice, under** section 8, of the assignment of a receivable between the assignor and the debtor that affects the assignee's rights in respect of that receivable shall be effective as against the assignee, and the assignee shall acquire rights in the assigned receivables, as modified by such agreement. (2) Any agreement made, after notice of the assignment between the assignor and the debtor that affects the assignee's rights, shall be ineffective as against the assignee unless,— (a) the assignee consents to it; or (b) the receivable is not fully earned by performance and either the modification is provided for in the original contract or, in the context of the original contract, a reasonable assignee would consent to the modification. (3) Nothing contained in sub-sections (1) and (2) shall affect any right of the assignor or the assignee arising from breach of an agreement between them. **18. Breach of contract.—If the assignor commits any breach of the original contract with the debtor,** such breach shall not entitle the debtor to recover from the assignee any sum paid by the debtor to the assignor or the assignee pursuant to the factoring transactions: Provided that nothing contained in this section shall affect the rights of the debtor to claim from the assignor any loss or damages caused to him by reason of breach of the original contract. CHAPTER V REGISTRATION OF ASSIGNMENTS **19. Registration of certain assignments of receivables transactions.—[1][(1)Every factor shall** register the particulars of every transaction of assignment of receivables in his favour with the Central Registry set-up under section 20 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002), within such time from the date of such assignment, in such manner and subject to payment of such fee, as may be prescribed.] _Explanation.—For the purpose of filing of particulars of every transaction of assignment of_ receivables with the Central Registry, the receivables may be described specifically or generally with reference to the debtor, or the period to which they relate or by any other general description by which such receivables can be identified. 2[(1A) Where any trade receivables are financed through a Trade Receivables Discounting System, the particulars specified in sub-section (1) and sub-section (3) shall be filed with the Central Registry on behalf of the factor by the Trade Receivables Discounting System concerned, in such manner as may be specified by regulations.] (2) For the purposes of this Act, a record called the Central Register shall be kept at the head office of the Central Registry for entering the particulars of the transactions relating to assignment of receivables in favour of a factor. 1. Subs. by Act 21 of 2021, s. 4, for sub-section (1) (w.e.f. 23-8-2021). 2. Ins. by s. 4, ibid. (w.e.f. 23-8-2021). 8 ----- (3) On realisation of the assigned receivables or settlement of the claim against the debtors, the factor shall file satisfaction of the assignment of receivables in its favour, in such manner and subject to payment of such fees as may be prescribed in this behalf. (4) The provisions for registration of transactions contained in the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002) and the rules made thereunder shall, mutatis mutandis, apply to the record of assignment of receivables in favour of a factor in the Central Register with the Central Registry. **20. Public inspection.—(1) The particulars of transactions of assignment of receivables entered in** the Central Register of such transactions under section 19 shall be open during business hours for inspection by any person on payment of such fee as may be prescribed. (2) The Central Register referred to in sub-section (2) of section 19 maintained in electronic form, shall also be open during the business hours or such extended hours as may be specified by the Central Registry for inspection by any person through electronic media on payment of such fee as may be prescribed. (3) The provisions for maintenance of Central Register and public inspection thereof contained in the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002) and the rules made thereunder shall, mutatis mutandis, apply. CHAPTER VI OFFENCES AND PENALTIES **1[21. Penalties.— If a default is made in filing under section 19, the particulars of any transaction of** assignment of receivables and realisation of receivables by a factor, such company and every officer of the company who is in default shall be liable to penalty which may extend to five lakh rupees and in the case of a continuing offence, with an additional penalty which may extend to ten thousand rupees for every day during which the default continues, to be imposed by the Reserve Bank in accordance with the provisions of subsections (2) to (4) of section 22. **22. Penalties for non-compliance of direction by Reserve Bank.— (1) If any factor fails to comply** with any direction issued by the Reserve Bank under section 6, or fails in filing the particulars of any transaction of receivables and realisation of receivables under section 19, the Reserve Bank may impose a penalty which may extend to five lakh rupees and in the case of a continuing failure, with an additional penalty which may extend to ten thousand rupees for every day during which the default continues. (2) For the purpose of adjudging the penalty under sub-section (1) or section 21, the Reserve Bank shall serve notice on the factor requiring it to show cause why the amount specified in the notice should not be imposed and a reasonable opportunity of being heard shall also be given to such factor. (3) Any penalty imposed by the Reserve Bank under this section or section 21 shall be payable within a period of fourteen days from the date on which notice issued by the Reserve Bank demanding payment of the sum is served on the factor and in the event of failure of the factor to pay the sum within such period, may be levied on a direction made by the principal civil court having jurisdiction in the area where the registered office of the factor is situated; or, in the case of a factor incorporated outside India, where its principal place of business in India is situated: Provided that no such direction shall be made except on an application made to the court by the Reserve Bank or any officer authorised by Reserve Bank in this behalf: Provided further that the Reserve Bank may also recover the amount of penalty by debiting the current account, if any, of the defaulter or by liquidating the securities held to the credit of the defaulter. (4) The court which makes a direction under sub-section (3) shall issue a certificate specifying the sum payable by the factor and every such certificate shall be enforceable in the same manner as if it were a decree made by the court in a civil suit.] 1. Ins. by Act 18 of 2023, s. 2 and Schedule, for sections 21 and 22 (w.e.f. 22-01-2024). 9 ----- **23. Offences.—If any person contravenes or attempts to contravene or abets the contravention of the** provisions of this Act or of any rules made thereunder, for which no specific penalty has been provided for, he shall be punishable with imprisonment for a term which may extend to one year, or with fine, or with both. **24. Cognizance of offences.—(1) No Court shall take cognizance of any offence punishable under** this Act except upon a complaint in writing made by an officer of the Reserve Bank, generally or specially authorised in writing in this behalf by the Reserve Bank. (2) No Court other than that of a Metropolitan Magistrate or a Judicial Magistrate of the first class or a court superior thereto shall try any such offence punishable under this Act. **25. Offences by factors.—(1) Where an offence under this Act has been committed by a factor, every** person who at the time the offence was committed was in charge of, and was responsible to, the factor, for the conduct of the business of the factor, as well as the factor, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he has exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a factor and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of any director, manager, secretary or other officer of the factor, such director, manager, secretary or other officer shall also be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purpose of this section, a “director”, in relation to a factor means any officer_ entrusted with the management of the whole or substantially the affairs of the factor. CHAPTER VII MISCELLANEOUS **26. Provisions of this Act to override other laws.—The provisions of this Act shall have effect,** notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any instrument having effect by virtue of any such law. **27. Application of other laws not barred.—The provisions of this Act or the rules made thereunder** shall be in addition to and not in derogation of the Negotiable Instruments Act, 1881 (26 of 1881), the Transfer of Property Act, 1882 (4 of 1882), the Reserve Bank of India Act, 1934 (2 of 1934), the Banking Regulation Act, 1949 (10 of 1949), the Companies Act, 1956 (1 of 1956), the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002), the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006) or any other law for the time being in force. **28. Limitation.—No assignee of any receivable shall be entitled to take any measures for recovery of** any assigned receivable, through any court or Tribunal unless his claim in respect of the receivable is made within the period of limitation specified under the Limitation Act, 1963 (36 of 1963). **29. Confidentiality of information.—Save as otherwise provided in this Act, or unless required to** do so by an order passed by any Court or Tribunal or any other statutory authority under any provision of law for the time being in force or for the purpose of recovery of the receivable, a factor shall maintain confidentiality and shall not disclose to any person information obtained by it from, any assignor, its present and future customers, its commercial and business activities and the terms of sale between the assignor and any debtor and other detail about the assignor. **30. Power to exempt.—(1) The Central Government may, by notification in the public interest, direct** that any of the provisions of this Act, (a) shall not apply to such class or classes of banks or a company or a factor; or 10 ----- (b) shall apply to the such class or classes of banks or a company or a factor with such exceptions, modifications and adaptations as may be specified in the notification. (2) A copy of every notification issued under sub-section (1), shall be laid before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the notification or both the Houses agree that the notification shall not be issued or, the notification shall have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under the notification. **31. Provisions of this Act not to apply or affect in certain cases.—(1) The provisions of this Act** shall not apply to any assignment of receivables arising under or from the following transactions, namely:— (a) any merger, acquisition or amalgamation of business activities or sale or change in the ownership or legal status of the business; (b) transactions on any stock exchange or commodities exchange regulated by the Securities and Exchange Board of India constituted under the provisions of the Securities and Exchange Board of India Act, 1992(15 of 1992) or by the Forward Markets Commission under the Forward Contracts (Regulation) Act, 1952 (74 of 1952), respectively; (c) financial contracts governed by netting agreements, except a receivable owed on the termination of all outstanding transactions; (d) foreign exchange transactions except receivables in any foreign currency; (e) inter-bank payment systems, inter-bank payment agreements or clearance and settlement systems relating to securities or other financial assets or instruments; (f) bank deposits; (g) a letter of credit or independent guarantee; (h) rights and obligations of any person under the law governing negotiable instruments, negotiable warehouse receipts under the Warehousing (Development and Regulation) Act, 2007 (37 of 2007) or to instruments which are for the time being, by law or custom negotiable or any mercantile document of title to goods; (i) sale of goods or services for any personal, family or household use; (j) any assignment of loan receivables by a bank or non-banking financial company to another bank or non-banking financial company; (k) securitisation transactions (including assignment of receivables to special purpose vehicles or trusts that issue securities against such receivables, bought from a single debtor or single group of debtors). (2) Nothing contained in this Act shall affect the rights and obligations of a consumer, manufacturer, trader or service provider under the provisions of the Consumer Protection Act, 1986 (68 of 1986). 1[31A. Power to make regulations.—(1) The Reserve Bank may, by notification, make regulations consistent with this Act to carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely: (a) the manner of granting certificate of registration under sub-section (4) of section 3; (b) the manner of filling of particulars of transactions with the Central Registry on behalf of factors under sub-section (1A) of section 19; 1. Ins. by Act 21 of 2021, s. 5 (w.e.f. 23-8-2021). 11 ----- (c) any other matter which is required to be, or may be, specified by regulations. (3) Every regulation shall, as soon as may be after it is made by the Reserve Bank, be forwarded to the Central Government and [1][that Government] shall cause a copy of the same to be laid before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the regulation, or both Houses agree that the regulation should not be made, the regulation shall, thereafter, have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that regulation.] **32. Power of Central Government to make rules.—(1) The Central Government may, in** consultation with the Reserve Bank, by notification and in the Electronic Gazette as defined in clause (5) of sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000) make rules for carrying out the provisions of this Act. (2) In particular and without prejudice to the generality of the foregoing power such rules may provide for all or any of the following matters, namely:— (a) [2][the time within which, the form and manner] in which the transactions of assignment of receivables in favour of a factor shall be filed and the fee for filing such transaction under sub-section (1) of section 19; (b) the form and manner in which the satisfaction of assignment of receivable or settlement of the claim shall be registered and the fee for filing such transactions under sub-section (3) of section 19; (c) fee for inspecting the Central Register under section 20; and (d) any other matter which is required to be or may be prescribed, in respect of which provision is to be made or may be made by rules. **33. Laying of rules.—Every rule made under this Act shall be laid, as soon as may be after it is** made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **34. Power to remove difficulties.—-(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in Official Gazette, make such provisions not inconsistent with the provisions of this Act, as may appear to be necessary for removing the difficulty: Provided that no order shall be made under this section after the expiry of a period of two years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be, after it is made, before each House of Parliament. **35. Amendments to certain enactments.—The enactments specified in the Schedule shall be** amended in the manner specified therein. 1. Subs. by Act 37 of 2023, s. 3 and the third Schedule, for “that Central Government” (w.e.f. 17-12-2023). 2. Subs. by Act 21 of 2021, s. 6, for “the form and manner” (w.e.f. 23-8-2021). 12 ----- THE SCHEDULE (See section 35) Year Act No. Short Title Amendment 1899 2 The Indian Stamp Act, 1899 1908 5 The Code of Civil Procedure, 1908 1934 2 The Reserve Bank of India Act, 1934 2005 30 The Credit Information Companies (Regulation) Act, 2005 13 After section 8C,the following section shall be inserted, namely:— ‘8D. Agreement or document for assignment of receivables not liable to stamp duty.— Notwithstanding anything contained in this Act or any other law for the time being in force, any agreement or other document for assignment of “receivables” as defined in clause (p) of section 2 of the Factoring Regulation Act, 2011 in favour of any “factor” as defined in clause (i) of section 2 of the said Act shall not be liable to duty under this Act or any other law for the time being in force.’. In Order XXXVII, in rule 1, in sub-rule (2), in clause (b), after sub-clause (iii), the following sub-clause shall be inserted, namely:— “(iv) suit for recovery of receivables instituted by any assignee of a receivable.”. In clause (d) of sub-section (1) of section 8, for the words “one Government officials” the words “two Government officials” shall be substituted. In section 2, in clause (f), after sub-clause _(ii), the following sub-clause shall be_ inserted, namely:— _“(iia) a factor as defined under clause (i)_ of section 2 of the Factoring Regulation Act, 2011.”. -----

6-Feb-2012

13

The Academy of Scientific and Innovative Research Act, 2011

https://www.indiacode.nic.in/bitstream/123456789/2110/1/a2012-13.pdf

central

# THE ACADEMY OF SCIENTIFIC AND INNOVATIVE RESEARCH, 2011 ______ # ARRANGEMENT OF SECTIONS _______ SECTIONS 1. Short title, extent and commencement. 2. Definitions. 3. Establishment of Academy of Scientific and Innovative Research. 4. Object of Academy. 5. Relationship of Academy with Council of Scientific and Industrial Research. 6. Declaration of Academy as an institution of national importance. 7. Transfer of assets, liabilities, etc., of existing Academy to Academy established under this Act and other provisions, etc. 8. Functions and powers of Academy. 9. Academyopen to all castes, creed, race or class. 10. Authorities of Academy. 11. Composition of Board of Governors. 12. Appointment of Chairperson. 13. Nomination of distinguished scientists or academicians of global eminence, eminent industrialists or technologists and heads of three premier institutions in the field of imparting education in science and technology. 14. Nomination of distinguished scientists or outstanding scientists of Council of Scientific and Industrial Research or Directors of Council of Scientific and Industrial Research laboratories. 15. Allowances payable to members of Board. 16. Term of office of members of Board. 17. Powers of Board. 18. Senate. 19. Powers of Senate. 20. Chancellor of Academy. 21. Director of Academy. 22. Appointment and duty of Director of Academy, etc. 23. Associate Directors. 24. Powers of other authorities. 25. Funds of Academy. 26. Accounts. 27. Audit of accounts and its publication. 28. Statutes. 29. Matters to be provided by Statutes. 30. Ordinances. 31. Review of functioning of Academy. 32. Appointments. 33. Conditions of service. 34. Arbitration. 35. Resignation, removal and suspension of Chairperson and other Member or Director. 36. Meetings. 37. Vacancies, etc., not to invalidate acts or proceedings of Board, Academy or any other body. 38. Power to remove difficulties. 1 ----- # THE ACADEMY OF SCIENTIFIC AND INNOVATIVE RESEARCH, 2011 ACT NO. 13 OF 2012 [6thFebruary, 2012.] # An Act to establish an Academy for furtherance of the advancement of learning and prosecution of research in the field of science and technology in association with Council of Scientific and Industrial Research and to declare the institution known as the Academy of Scientific and Innovative Research, to be an institution of national importance to provide for its incorporation and matters connected therewith or incidental thereto. BE it enacted by Parliament in the Sixty-second Year of the Republic of India as follows:— **1. Short title, extent and commencement.—(1) This Act may be called the Academy of Scientific** and Innovative Research Act, 2011. (2) It extends to the whole of India except the State of Jammu and Kashmir*. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act. **2. Definitions.—In this Act, and in all Statutes and Ordinances made thereunder, unless the context** otherwise requires,— (a) “Academy” means the Academy of Scientific and Innovative Research established under subsection (1) of section 3; (b) “Board” means the Board of Governors of the Academy of Scientific and Innovative Research referred to in section 10; (c) “Council of Scientific and Industrial Research” means a society registered by the name of the Council of Scientific and Industrial Research under the Societies Registration Act, 1860 (21 of 1860); (d) “Chairperson” means the Chairperson of the Board appointed under section 12; (e) “Chancellor” means the Chancellor of the Academy referred to in section 20; (f) “Director” means the Director of the Academy appointed under section 22; (g) “distinguished scientists” or “outstanding scientists” of the Council of Scientific and Industrial Research means scientists of the Council of Scientific and Industrial Research designated as such; (h) “existing Academy” means the Academy of Scientific and Innovative Research established in pursuance of the Resolution of the Government of India in the Ministry of Science and Technology, Department of Scientific and Industrial Research, Council of Scientific and Industrial Research, _vide No. 6/1/CSIR-Ac SIR/2010-PPD, dated the 1st July, 2010;_ (i) “Faculty of the Academy” means Academy Professors, Professors of Eminence, Distinguished Professors, Outstanding Professors, Senior Professors, Emeritus Professors, Professors, Associate Professors, Assistant Professors, visiting faculty, and such other persons as may be appointed for imparting instruction or conducting research in the Academy or institutions maintained by the Academy and includes the scientists of Council of Scientific and Industrial Research assigned for imparting instruction or conducting research; (j) “notification” means a notification published in the Official Gazette; (k) “Statutes and Ordinances” means the Statutes and the Ordinances of the Academy for the time being in force. 1. 3rd April, 2012 [except sub-section (2) of section 5], vide notification No. S.O. 709(E), dated 2nd April, 2012, _see_ Gazette of India, Extraordinary, Part II, sec. 3(ii). 26th June, 2013 [sub-sec. (2) of section 5], vide notification No. S.O. 1850(E), dated 26th June, 2013, see Gazette of India, Extraordinary, Part II, sec. 3(ii). *. _Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of_ Jammu and Kashmir and the Union territory of Ladakh. 2 ----- **3. Establishment of Academy of Scientific and Innovative Research.—(1) With effect from such** date as the Central Government may, by notification, appoint in this behalf, there shall be established for the purposes of this Act an Academy to be called the “Academy of Scientific and Innovative Research” a body corporate by such name. (2) The headquarters of the Academy shall be at such place as the Central Government may, by notification, specify. (3) The Academy may have such number of regional centres and campuses, as it may deem fit. (4) The Academy shall have perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property and to contract, and shall by that name, sue and be sued. **4. Objects of Academy.—(1) The objects of the Academy shall be to—** (a) disseminate advanced knowledge in science and technology, by providing teaching and research facilities in such branches of learning as it may deem fit, particularly in emerging areas and such areas as may emerge in future; (b) undertake inter-disciplinary studies and research; (c) conduct courses in, and integrate into its courses, inter-disciplinary and multi-disciplinary areas covering natural sciences, life sciences, mathematical and computational sciences, medical sciences, engineering, applied art, humanities, social sciences, law relating to these areas and interfaces thereof; (d) take appropriate measures for innovations in teaching and learning processes; (e) create an ambience for learning and scholarship in advanced science and technology instead of exclusively focusing on marks or grades; (f) educate and train manpower in scientific and technological fields; _(g) establish linkages with industries in India and outside India for the promotion of science and_ technology; (h) collaborate, in appropriate areas in the field of science and technology, with reputed universities and institutions in India or outside India; _(i) promote research in science and technology having a bearing on social, economic, cultural,_ intellectual and academic welfare of the people. (2) The Academy shall primarily focus on research and imparting instruction in such areas as are not ordinarily taught in regular academic universities in India. (3) The curricula, pedagogy and evaluation of the Academy shall be innovative and directed towards creating highest quality personnel with cross-disciplinary knowledge, aiming to provide leaders in the field of science and technology. **5. Relationship of Academy with Council of Scientific and Industrial Research.—(1) The** Academy shall be, provided, or, allowed to use, the infrastructure and scientific manpower of the Council of Scientific and Industrial Research for teaching and research purposes for mutual benefit. (2) The Academy, within two weeks of the commencement of this Act, shall, notwithstanding anything contained in any other Act, rules, regulations or bye-laws for the time being in force, enter into a Memorandum of Understanding with the Council of Scientific and Industrial Research, for the purposes of its affiliation with the Academy for the purposes of academics, teaching and award of degrees or diplomas, and, the persons pursuing the studies in the Council for award of any degree or diploma, after entering of such Memorandum of Understanding, be awarded degrees or diplomas by the said Academy: Provided that any person pursuing any academic or research course, before the commencement of this Act, in the Council of Scientific and Industrial Research for award of any degree or diploma and registered for the said purpose with any other university, may, with the approval of the university with 3 ----- which such person is registered, migrate after such commencement to the Academy established under this Act and be registered with the said Academy for grant of the same degree or diploma by the Academy established under this Act and such person shall be deemed to have migrated and registered with the Academy established under this Act at the same level of study in the university from which such person migrated. (3) Nothing contained in sub-section (1) or sub-section (2) shall be construed to affect the functions or powers of the Council of Scientific and Industrial Research, being discharged or exercised, before the commencement of this Act, by the Council or to affiliate with any other university or institution for the purposes of academics, teaching and award of degrees or diplomas or for any other purposes necessary for pursuing its objects. **6. Declaration of Academy as an institution of national importance.—It is hereby declared that** the Academy of Scientific and Innovative Research shall be an institution of national importance. **7. Transfer of assets, liabilities, etc., of existing Academy to Academy established under this Act** **and other provisions, etc.—(1) On and from the date of establishment of the Academy,—** (a) any reference to the existing Academy in any law other than this Act or in any contract or other instrument shall be deemed as a reference to the Academy; (b) all properties and assets, movable and immovable, of, or belonging to, the existing Academy, shall vest in the Academy; (c) all rights and liabilities of the existing Academy shall be transferred to, and be the rights and liabilities of, the Academy; (d) without prejudice to the provisions of clause (c), all debts, obligations and liabilities incurred, all contracts entered into and all matters and things engaged to be done by, with or for the existing Academy immediately before that date, for or in connection with the purpose of the said existing Academy shall be deemed to have been incurred, entered into or engaged to be done by, with or for, the Academy; (e) all sums of money due to the existing Academy immediately before that date shall be deemed to be due to the Academy; (f) all suits and other legal proceedings instituted or which could have been instituted by or against the existing Academy immediately before that date may be continued or may be instituted by or against the Academy; (g) every employee (including those appointed for imparting instruction or conducting research in the existing Academy) holding any office under the existing Academy or teaching therein immediately before that date shall hold his office in the Academy or continue teaching therein by the same tenure and upon the same terms and conditions of service as respects remuneration, leave, provident fund, retirement and other terminal benefits as he would have held such office if the Academy had not been established and shall continue to do so as an employee of the Academy or until the expiry of the period of six months from that date if such employee opts not to be the employee of the Academy within such period. (2) Any person pursuing any academic or research course, before the commencement of this Act, in the existing Academy for award of any degree or diploma or certificate shall be entitled to pursue such academic or research course after the establishment of the Academy under this Act and be registered with the said Academy for grant of the same degree or diploma or certificate by the Academy established under this Act and such person shall be deemed to have migrated and registered with the Academy established under this Act at the same level of study in the existing Academy from which such person migrated. (3) Any person, who immediately before the commencement of this Act, had been awarded a degree or diploma or certificate for having qualified any course by the existing Academy, shall be entitled to award of equivalent degree or diploma by the Academy subject to approval by the Board of the Academy. 4 ----- (4) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1947) or in any other law for the time being in force, absorption of any employee by the Academy in its regular service under this section shall not entitle such employee to any compensation under that Act or other law and no such claim shall be entertained by any court, tribunal or other authority. **8. Functions and powers of Academy.—(1) The Academy shall discharge its functions and exercise** the following powers, namely:— (i) to provide for instructions and conduct research in such branches of learning like natural sciences, life sciences, mathematical and computational sciences, medical sciences, engineering, applied art, humanities, social sciences, law relating to these areas and interfaces thereof, and in particular, in inter-disciplinary and multi-disciplinary areas of these branches, and in all such areas as may emerge in future and other emerging areas of knowledge, as the Academy may from time to time determine and make provision for advancement and dissemination of knowledge; (ii)to lay administrative standards and structures and decide on all matters of creation of posts, laying down standards for recruitment, determining compensation packages, and contractual arrangements; (iii)to design its curriculum and pedagogy for award of diplomas or certificates and confer degrees or other academic distinctions as it may deem fit; (iv) to grant, subject to such conditions as the Academy may determine, diplomas or certificates and confer degrees or other academic distinctions on the basis of such methods of evaluation and to hold its examinations, as the Academy may, from time to time, determine and to withdraw any such diplomas, certificates, degrees or other academic distinctions for good and sufficient cause; _(v) to frame Statutes and Ordinances and to alter, modify or rescind the same;_ (vi) toorganise and undertake extramural studies, training and extension services; (vii) to confer honorary degrees or other distinctions; _(viii) to provide distance education in such branches of learning and to such persons as it may_ determine; (ix) to institute professorships, associate professorships and assistant professorships including Academy Professors, Professors of Eminence, Distinguished Professors, Outstanding Professors, Senior Professors, Emeritus Professors, or visiting positions and other teaching or academic or other positions, required by the Academy and to make appointments to such positions; (x) to appoint persons from any other university, or institution, or industry, or persons of eminence from appropriate fields of studies, including those outside the country, as Faculty of the Academy; (xi) to create administrative, ministerial and other posts and to make appointments thereto; (xii) to co-operate or collaborate or associate with any body including, any university or institution, or industry, located in India or outside India; _(xiii) to establish such centres and specialised laboratories or other units for research and instruction_ as may be required; (xiv) to set up schools, centres and campuses and function therefrom or conduct classes from any place of its choice, including the premises of laboratories or other centres of the Council of Scientific and Industrial Research; (xv) to institute and award fellowships, scholarships, studentships, medals and prizes; (xvi) to conduct research, advisory and consultancy services with or for any entity, public or private, whether in India or outside India, which are in conformity with the spirit and object of the Academy; (xvii) to engage scientists of the Council of Scientific and Industrial Research as Faculty in imparting instruction and conducting research in the Academy; 5 ----- (xviii) to establish, maintain and manage institutions and hostels for residence of students or establish and maintain such institutions through the Council of Scientific and Industrial Research or any other body; (xix) to fix, demand and receive payment of fees and other charges; (xx) to determine the standards of admission to the Academy, which may include examination, other innovative models of testing or evaluation; _(xxi) to supervise the residences of the students of the Academy and to make arrangements for_ promoting their health, general welfare, cultural and corporate life; _(xxii) to lay down conditions of service for all categories of employees, including their code of_ conduct; (xxiii) to regulate and enforce discipline, among the students and employees and to take such disciplinary measures in this regard as may be necessary; (xxiv) to make arrangements for promoting the health and general welfare of the employees; (xxv) to receive grants, benefactions, donations, gifts, bequests and transfer or acquire, hold and manage and dispose of any property movable or immovable, including trust and endowment properties for the purposes of the Academy: Provided that no such grants, benefactions, donations, gifts, bequests and transfer shall be accepted by the Academy which in the opinion of the Board involves conditions or obligations opposed to the spirit and object of this Act; (xxvi) to borrow, on the security of property of the Academy or otherwise, money for the purposes of the Academy or utilise its property for such purposes as are in conformity with the spirit and object of this Act; (xxvii) to do all such other acts and things as may be necessary, incidental or conducive to the attainment of all or any of its objects. (2) In exercising its powers referred to in sub-section (1), it shall be the endeavour of the Academy to maintain an all India character and high standards of teaching and research, and, the Academy shall, among other measures which may be necessary for the said purpose, take, in particular, the following measures, namely:— (i) subject to the provisions of section 9, the admission of students shall be made on merit; (ii) continuous evaluation or other innovative methods of evaluation and choice based credit system may be introduced and the Academy may enter into agreements with other universities and academic institutions in India or outside India for credit transfer and joint degree programmes; (iii) innovative courses and programmes of studies shall be introduced with a provision for periodic review and restructuring; (iv) the imparting of instruction shall be, as far as may be, through use of modern techniques or technologies; (v) the systems and structures of the Academy should be flexible to adapt to the requirements of multi-disciplinary and inter-disciplinary studies; (vi) active participation of students may be ensured in governance of academic matters of the Academy. **9. Academy open to all castes, creed, race or class.—(1) The Academy shall be open to all persons,** of either sex, irrespective of caste, creed, race or class, and it shall not be lawful for the Academy to adopt or impose on any person, any test whatsoever of religious belief or profession in order to be entitled to be appointed as a Faculty of the Academy or to hold any other office therein, or to be employed therein or to be admitted as a student in the Academy or to graduate thereat or to enjoy or exercise any privilege thereof. 6 ----- (2) The Academy shall make special provision for the employment or admission of women, persons with disabilities or of persons belonging to the weaker sections of the society and, in particular, of the Scheduled Castes, the Scheduled Tribes and the other socially and educationally backward classes of citizens and any exemption from making such reservation under the proviso to clause (b) of section 4 of the Central Educational Institutions (Reservation in Admission) Act, 2006 (5 of 2007) shall not be applicable to the Academy: Provided that no such special provision shall be made on the ground of domicile. **10. Authorities of Academy.—The following shall be the authorities of the Academy, namely:—** (a) The Board; (b) Senate; (c) Director; (d) Boards of Studies; (e) such other authorities as may be declared by the Statutes to be the authorities of the Academy. **11. Composition of Board of Governors.—(1) The Board referred to in clause (a) of section 10** shall consist of the following, namely:— (a) the Chairperson of the Board, to be appointed under section 12; (b) the Director-General of the Council of Scientific _ex officio vice-chairperson;_ and Industrial Research, (c) the President of the Indian National Science _ex officio member;_ Academy, (d) the Chairman, Atomic Energy Commission, _ex officio member;_ Government of India, (e)the Chairman, Space Commission, _ex officio member;_ Government of India, (f) the Chairman, University Grants Commission, _ex officio member;_ Government of India, (g) the Finance Secretary in the Ministry of finance _ex officio member;_ Government of India, (h) the heads of three premier institutions in the field of members to be nominated imparting education in Science and Technology, under section 13; (i) four distinguished scientists or academicians of global eminence, of which two should be from reputed institutions outside India, members to be nominated under section 13; (j) three eminent industrialists or technologists, members to be nominated under section 13; (k) four distinguished scientists or outstanding scientists or Directors of laboratories of Council of Scientific and Industrial Research, members to be nominated under section 14; (l) the Director of the Academy, _ex officio member._ 7 ----- (2) The Chairperson shall ordinarily preside over the meetings of the Board. (3) The Board may evolve its own procedure for the purpose of conducting its meetings and transacting business therein. (4) The Associate Director in charge of administration of the Academy shall be the Secretary of the Board. **12. Appointment of Chairperson.—(1) The Chairperson shall be appointed by the President of the** Council of Scientific and Industrial Research, on the recommendation of the selection committee constituted under sub-section (2): Provided that the Director-General of the Council of Scientific and Industrial Research, being the ex _officio Vice-Chairperson, as referred to in clause (b) of sub-section (1) of section 11, shall act as the_ Chairperson until the first Chairperson is selected and appointed in accordance with the provisions of this Act: Provided further that no person shall be selected and appointed as Chairperson unless such person is an Indian citizen. (2) The selection committee referred to in sub-section (1) shall consist of four eminent scientists or technologists of international repute, as may be nominated by the President of the Council of Scientific and Industrial Research. (3) At least two eminent scientists or technologists of international repute nominated under subsection (2) shall be from the heads of international societies, academies, or similar organisations in the field of science and technology. (4) The selection committee referred to in sub-section (2) shall— (a) be constituted within six months before the completion of tenure of the incumbent as the Chairperson of the Board; (b) submit its recommendation at least three months before the completion of the tenure of the incumbent Chairperson. (5) The selection committee may evolve its own procedure for the purposes of meetings and making recommendations under sub-section (1) including making recommendations in respect of a person who has not applied for the post of Chairperson. (6) Three members of the selection committee referred to in sub-section (1) shall form quorum for the meeting of the committee. (7) The Chairperson shall exercise such other powers and perform such other functions as may be assigned to him by this Act or the Statutes. **13. Nomination of distinguished scientists or academicians of global eminence, eminent** **industrialists or technologists and heads of three premier institutions in the field of imparting** **education in science and technology.—The heads of three premier institutions in the field of imparting** education in science and technology, referred to in clause (h), the distinguished scientists or academicians of global eminence referred to in clause (i), and eminent industrialists or technologists referred to in clause _(j), of sub-section (1) of section 11, shall be nominated, by the President of the Council of_ Scientific and Industrial Research. **14. Nomination of distinguished scientists or outstanding scientists of Council of Scientific and** **Industrial Research or Directors of Council of Scientific and Industrial Research laboratories.—** The nomination of distinguished scientists or outstanding scientists of the Council of Scientific and Industrial Research or Directors of Council of Scientific and Industrial Research laboratories, referred to in clause (k) of sub-section (1) of section 11 shall be made by the Governing Body of the Council of Scientific and Industrial Research. **15. Allowances payable to members of Board.—The members of the Board shall be entitled to such** allowances, if any, from the Academy, as may be provided for, in the Statutes but no member other than 8 ----- the Director of the Academy referred to in clause (l) of sub-section (1) of section 11, shall be entitled to any salary by reason of this section. **16. Term of office of members of Board.—(1) Save as otherwise provided in this section, term of** office of the Chairperson or any other nominated member of the Board shall be four years, being one term of the Board and they shall not be eligible to be re-appointed as Chair person or nominated as a member, as the case may be. _Explanation I.—The period of term of office of the Chairperson or any other nominated member of_ the Board [other than ex officio Vice-Chairperson and ex officio members and nominated members under clause (k) of sub-section (1) of section 11] of the existing Academy shall be counted for the purposes of this sub-section. _Explanation II.—For the removal of doubt it is hereby declared that a person who held the office of a_ member shall not be eligible to be re-appointed as a member but may be appointed as the Chairperson in accordance with the provisions of this Act: Provided that an outgoing member of the Board shall, unless or otherwise directed, continue in office until another person is appointed, or, as the case may be, nominated as a member in his place. (2) In the event of vacancy in the office of the Chairperson, by reason of his death or resignation or otherwise, the Vice-Chairperson shall act as the Chairperson until a new Chairperson is appointed in accordance with the provisions of this Act to fill the vacancy and enter upon his office: Provided that a person appointed due to a vacancy in the office of Chairperson under sub-section (2), shall be eligible to be appointed as Chairperson in accordance with the provisions of this Act only for one term in addition to the period for which he was appointed to fill the vacancy of Chairperson. (3) In the event of vacancy in the office of a nominated member under clauses (h), (i), (j) and (k) of sub-section (1) of section 11 by reason of his death or resignation or otherwise, the vacancy shall be filled in accordance with the provisions of this Act: Provided that a person nominated under sub-section (1) of section 11 due to a vacancy in the office of the member, such person shall be eligible to be nominated only for one term as member in accordance with the provisions of this Act, in addition to the period for which he was nominated to fill the vacancy. (4) The term of office of an ex officio member shall continue as long as he holds the office by virtue of which he is a member. (5) One-fourth of the members, being distinguished scientists or outstanding scientists or Directors of laboratories of the Council of Scientific and Industrial Research nominated under clause (k) of sub-section (1) of section 11 shall retire every year and new members shall be nominated in their place in accordance with the provisions of this Act: Provided that, notwithstanding anything contained in this sub-section, the members, being distinguished scientists or outstanding scientists of the Council of Scientific and Industrial Research or Directors of the Council of Scientific and Industrial Research laboratories nominated under clause (k) of sub-section (1) of section 11, immediately after the commencement of this Act for the first time, may hold office for such period, as may be specified in their nomination and provisions of this sub-section shall not be applicable to such nominated members. **17. Powers of Board.—(1) Subject to the provisions of this Act, the Board shall be responsible for** the general superintendence, direction and control of the affairs of the Academy and shall exercise all the powers of the Academy not otherwise provided for by this Act, the Statutes and the Ordinances, and shall have the power to review the acts of the Senate. (2) Without prejudice to the provisions of sub-section (1), the Board shall have the powers to— (a) take decisions on questions of policy relating to the administration and working of the Academy; (b) institute courses of study at the Academy; 9 ----- (c) make Statutes; _(d) institute and appoint persons to academic as well as other posts in the Academy;_ (e) consider and modify or cancel or rescind Ordinances; (f) consider and pass resolutions on the annual report, the annual accounts and the budget estimates of the Academy for the next financial year, together with a statement of its development plans; (g) approve investments in infrastructure of the Academy in any land or building; _(h) exercise such other powers and perform such other duties as may be conferred or imposed_ upon it by this Act or the Statutes. (3) The Board shall also have the power to appoint such committees of one or more persons as it considers necessary for exercise of its powers and the performance of its duties and hold enquiries under this Act. **18. Senate.—(1) The Senate shall consist of the following, namely:—** (a) the Director, ex officio, who shall be the Chairperson of the Senate; _(b) all Associate Directors, ex officio members;_ (c) all Deans of the Academy, ex officio members; (d) two Professors from each area of study represented by the Boards of Studies of the Academy, as may be nominated by the Board, ex officio members; (e) two scientists of the Council of Scientific and Industrial Research, who being the youngest in age; and recipient of Shanti Swaroop Bhatnagar Award; and who are also Faculty of the Academy, as may be nominated by the Director-General of the Council of Scientific and Industrial Research; _(f) two scientists of the Council of Scientific and Industrial Research, who being the youngest in_ age; and recipient of CSIR-Young Scientist Award; and who are Faculty of the Academy, as may be nominated by the Director-General of the Council of Scientific and Industrial Research; (g) three Directors or distinguished scientists or outstanding scientists of the Council of Scientific and Industrial Research laboratories, nominated by its Director-General; (h) three persons, not being the employees of the Academy or the Council of Scientific and Industrial Research, to be nominated by the Chancellor in consultation with the Director from amongst educationists of repute, one being from each of the fields of science, engineering and social sciences; (i)such other members of the staff as may be laid down in the Statutes. (2) The tenure of the nominated members under clauses (d) to (h) of sub-section (1) shall be two years: Provided that the Senate shall not, at any time, have less than fifty per cent. of its members from the Councilof Scientific and Industrial Research scientists teaching in the Academy. **19. Powers of Senate.—Subject to the provisions of this Act, the Statutes and the Ordinances, the** Senate of the Academy shall have the control and general regulation, and be responsible for the maintenance, of standards of instruction, education and examinations in the Academy and shall exercise such other powers and perform such other duties as may be conferred or imposed upon it by the Statutes and Ordinances. **20. Chancellor of Academy.—(1) The Chairperson of the Board shall be the Chancellor of the** Academy. (2) The Chancellor shall ordinarily preside at the Convocations of the Academy. 10 ----- **21. Director of Academy.—The Director shall be the principal academic and executive officer of the** Academy and shall be responsible for the administration of the Academy and imparting instruction, research and maintenance of discipline. **22. Appointment and duty of Director of Academy, etc.—(1) The Director shall be appointed, by** the President of the Council of Scientific and Industrial Research, on the recommendation of the selection committee constituted under sub-section (2). (2) The selection committee referred to in sub-section (1) shall consist of— _(a)the Chairperson of the Board;_ _(b) the Vice-Chairperson of the Board;_ (c) the President of the Indian National Science Academy; (d) the Chairman, Atomic Energy Commission, Government of India; (e) the Chairman, Space Commission, Government of India. (3) The selection committee referred to in sub-section (2) shall— (a) be constituted within six months before the completion of tenure of the incumbent as the Director; (b) submit its recommendation at least three months before the completion of the tenure of the incumbent Director. (4) The selection committee may evolve its own procedure for the purposes of meetings and making recommendations under sub-section (1) including making recommendations in respect of a person who has not applied for the post of Director. (5) Three members of the selection committee referred to in sub-section (1) shall form quorum for the meeting of the committee: Provided that no person shall be selected or nominated as Director unless such person is an Indian citizen. _(6) It shall be the duty of the Director that the decisions taken by the Board are implemented._ (7) The Director shall submit an annual report and accounts of the Academy to the Board. (8) The Director shall exercise such other powers and perform such other duties as may be assigned to him by this Act or the Statutes or the Ordinances. (9) The term of the Director shall be five years. **23. Associate Directors.—(1) The Associate Directors of the Academy shall, be appointed by the** Director with the approval of the Board, from amongst Professors of the Academy or scientists of the Council of Scientific and Industrial Research engaged in academic activity in the Academy, for such period, and on such terms and conditions, as may be laid down by the Statutes, and, shall exercise such powers and perform such duties as may be assigned to them by this Act or the Statutes or by the Director. (2) The Board may assign any other designation for the Associate Directors, for the purpose of administrative convenience or academic efficiency. **24. Powers of other authorities.—(1) The constitution and powers of Board of Studies shall be such** as may be provided in the Statutes. (2) The powers, including the financial powers and duties of authorities, officers and other functionaries of the Academy shall be as provided by the Statutes. **25. Funds of Academy.—(1) The Academy shall maintain and retain a fund to which shall be** credited— (a) all fees (including tuition fees) and other charges received by the Academy; 11 ----- (b) all monies received by the Academy by way of grants, gifts, donations, benefactions, bequests or transfers; (c) monies for projects undertaken by the Academy; (d) income from investment made by the Academy or from any other source; (e) the funds received from the Council of Scientific and Industrial Research, by way of loan or otherwise; (f) all monies received by the Academy in any other manner or from any other source. (2) All monies credited to the fund of the Academy shall be deposited in such banks or invested in such manner as the Academy may, with the approval of the Board, decide. (3) The fund shall be applied for meeting,— (a) the salaries, allowances and other remuneration of the Chairperson, members of the Board or Faculty, officers and other employees or members of the committees set up by the Academy; (b) the expenses of the Academy in the discharge of its functions or exercise of its powers under section 8; (c) the expenses on objects of, and for purposes authorised by, this Act. (4) All expenditure of the Academy shall be within the framework of a budget approved by the Board. **26. Accounts.—(1) The Academy shall maintain proper and separate accounts giving therein the** details of all receipts in, and, expenditure from, such fund and other relevant particulars. (2) The accounts referred to in sub-section (1) shall be prepared and got audited before the expiry of six months from the end of each financial year. (3) The Academy shall submit to the Board and the Council of Scientific and Industrial Research, the accounts referred to in sub-section (1) duly audited under section 27 and signed by the Director, Associate Director in charge of Finance and Associate Director in charge of Administration. (4) The Council of Scientific and Industrial Research referred to in sub-section (3), the Board and any other person appointed by them in connection with the audit of the accounts of the Academy shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Academy. **27. Audit of accounts and its publication.—(1) The accounts of the Academy shall, without** prejudice to the provisions contained in the Comptroller and Auditor-Generals (Duties, Powers and Conditions of Service) Act, 1971 (56 of 1971), be audited by auditors who may be appointed by the Board for the term of one year and such auditors shall be eligible for re-appointment. (2) No person shall be eligible to be appointed as an auditor under sub-section (1) unless he is a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949 (38 of 1949), and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act. (3) The accounts of the Academy shall, after the completion of the audit under sub-section (1) and submission thereof to the Board and the Council of Scientific and Industrial Research be published on the website of the Academy. **28. Statutes.—(1) The Statutes of the Academy shall be enacted by the Board.** (2) Without prejudice to the provisions contained in sub-section (1), the Senate may make recommendations for enactment of Statutes to the Board. (3) The Board may, from time to time, make new Statutes or may amend or repeal or rescind the Statutes with effect from such date as it may direct. 12 ----- **29. Matters to be provided by Statutes.—Subject to the provisions of this Act, the Statutes may** provide for all or any of the matters considered necessary by the Board for functioning of the Academy within the framework of this Act, including the following matters, namely:— (a) the conferment of degrees and diplomas; (b) the constitution, powers and functions of the Board of Studies; (c) the tuition fee and other fees to be charged; (d) the institution of fellowships, scholarships, medals and prizes; (e) the term of office and the method of appointment of officers of the Academy; (f) the qualification of Faculty of the Academy (other than the scientists of the Council of Scientific and Industrial Research engaged in the service of the Academy), officers and other staff of Academy: Provided that the scientists of the Council of Scientific and Industrial Research engaged in the service of the Academy shall be governed by the qualifications specified by the Council and nothing contained in this Act shall be construed to disqualify them from undertaking the service of the Academy or engaging them as Faculty of the Academy; (g) the classification, the method of appointment and the determination of the terms and conditions of service of Faculty, officers and other staff of the Academy; (h) the provision of insurance fund, provident fund and other retirement benefits, for the benefit of the Faculty, officers and other staff of the Academy; (i) the constitution, powers and duties of authorities of the Academy; (j) the establishment and maintenance of hostels; _(k) the conditions of residence of students of the Academy and the levying of fees for residence in_ the hostels and of other charges; (l) the allowances to be paid to the Chairperson and other members of the Board and any committee constituted by the Academy; (m) the meetings of the Board, the Senate, or any committee, the quorum at such meetings and the procedure to be followed in the conduct of their business; (n) any other matter which may be required or necessary for the purposes of this Act. **30. Ordinances.—(1) Subject to the provisions of this Act and the Statutes, the Ordinances of the** Academy may provide for all or any of the following matters, namely:— (a) the admission of the students; (b) the courses of study; (c) the conditions under which students shall be admitted and shall be eligible for degrees, diplomas and certificates and to the examinations of the Academy, and shall be eligible for the degrees, diplomas and certificates; (d) the conditions of award of the fellowships, scholarships, medals and prizes; (e) the condition and mode of appointment and duties of examining bodies, examiners and moderators; (f) the conduct of examinations; (g) the maintenance of discipline among students of the Academy; (h) any other matter which by this Act or the Statute, is to be, or, may be, provided for by the Ordinances. 13 ----- (2) Save as otherwise provided in this section, Ordinances shall be made by the Senate. (3) All Ordinances made by the Senate shall have the effect from such date as it may direct, but every Ordinance so made shall be submitted, as soon as may be, to the Board and shall be considered by the Board in its subsequent meeting. (4) The Board shall have the power by resolution to modify or cancel or rescind any of the Ordinances and such Ordinances shall, from the date of such resolution stand modified accordingly or cancelled or rescinded, as the case may be. **31. Review of functioning of Academy.—(1) There shall be a review of the functioning of the** Academy once in every four years by persons of eminence to be appointed by the Council of Scientific and Industrial Research. (2) The Academy shall meet the expenses for conducting the review under sub-section (1) and upon receipt of the report of such review, the Board may take appropriate action. (3) In addition to the review under sub-section (1), the Board may conduct review of functioning of administrative and academic wings of the Academy, in such manner and at such intervals, as may be provided in the Statutes. **32. Appointments.—All appointments of the staff of the Academy (except appointment of the** Director), shall be made in accordance with the procedure laid down in the Statute, by— (a) the Board for the academic staff; _(b) the Director, in any other case._ **33. Conditions of service.—(1) Every employee of the Academy shall be appointed on contractual** basis under a written contract, which shall be lodged with the Academy and a copy of which shall be furnished to the employee concerned: Provided that all scientists and other employees of the Council of Scientific and Industrial Research engaged in the service of the Academy shall be governed by the service conditions, rules and regulations of the Council of Scientific and Industrial Research. (2) The Academy shall have a flexible compensation system which recognises performance, as laid down in the Statutes, to bring the best talent in the Academy: Provided that the scientists of the Council of Scientific and Industrial Research— (a) engaged in the service of the Academy; and (b) who draw their salary from the Council, shall be eligible for such allowances or honorarium, as may be determined by the Statute. **34. Arbitration.—(1) Any dispute arising out of a contract between the Academy and any of its** employees shall, at the request of the employee concerned or at the instance of the Academy, be referred to a Tribunal of Arbitration consisting of one member appointed by the Director, one member nominated by the employee, and such two arbitrators shall appoint the third arbitrator who shall act as the presiding arbitrator. (2) The arbitration under sub-section (1) shall be governed by the Arbitration and Conciliation Act, 1996 (26 of 1996). **35. Resignation, removal and suspension of Chairperson and other Members or Director.—(1)** The Chairperson or any Member of the Board other than _ex officio Members of the Board or Director_ may, by notice in writing under his hand addressed to the President of the Council of Scientific and Industrial Research, resign his office: Provided that the Chairperson or such Member or Director shall, unless he is permitted by the President of the Council of Scientific and Industrial Research to relinquish his office sooner, continue to hold office 14 ----- until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is the earliest. (2) The President of the Council of Scientific and Industrial Research may remove from office the Chairperson or any Member of the Board or the Director, who— (a) has been adjudged an insolvent; or _(b) being the Director has engaged at any time, during his term of office, in any paid_ employment; or (c) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or (d) has become physically or mentally incapable of acting as such Chairperson or Member or Director; or (e) is of unsound mind and stands so declared by a competent court; or (f) has acquired such financial or other interest as is likely to affect prejudicially the exercise of his functions as such Chairperson or Member or Director; or (g) has so abused his position as to render his continuance in office prejudicial to the public interest; or (h) has been guilty of proved misbehavior; or (i) has such other disqualifications as may be prescribed. (3) Notwithstanding anything contained in sub-section (1), the Chairperson or a Member of the Board or the Director shall not be removed from his office on the grounds specified in clause (f) or clause (g) or clause (h) of sub-section (1), except by an order made by the President of the Council of Scientific and Industrial Research after an inquiry made in this behalf in which such Chairperson or Member or Director has been informed of the charges against him and given a reasonable opportunity of being heard in respect of those charges. (4) In the event of inquiry instituted under sub-section (2), the President of the Council of Scientific and Industrial Research may suspend such Chairperson or Member or Director against whom inquiry has been instituted for a period not exceeding six months if it is considered necessary in public interest. (5) The President of the Council of Scientific and Industrial Research may, by rules, regulate the procedure for the inquiry referred to in sub-section (2). (6) In case any nominated member under clause (k) of sub-section (1) of section 11 in the Board incurs any of the disqualifications under clauses (a) to (i) of sub-section (1), such nominated member shall not be eligible to be nominated as such and his nomination as nominated member shall be revoked by those who nominated such member. **36. Meetings.—The meetings of the Board, Senate, or other committees constituted by the Academy** may be held using contemporary tools of information and communication technologies (including videoconferencing) without the members necessarily having to be physically present. **37. Vacancies, etc., not to invalidate acts or proceedings of Board, Academy or any other** **body.—No act of the Board or the Academy or any other body set up under this Act or the Statutes, shall** be invalid merely by reason of— (a) any vacancy in, or defect in the constitution thereof; or (b) any defect in the selection, nomination or appointment of a person acting as a member thereof; or (c) any irregularity in its procedure not affecting the merits of the case. 15 ----- **38. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made under this section after the expiry of three years from the commencement of this Act. (2) Every order made under sub-section (1) shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the order or both Houses agree that the order should not be made, the order shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that order. ___________ 16 -----

19-Jun-2012

32

The Protection of Children from Sexual Offences Act, 2012

https://www.indiacode.nic.in/bitstream/123456789/2079/1/AA2012-32.pdf

central

# THE PROTECTION OF CHILDREN FROM SEXUAL OFFENCES ACT, 2012 __________________ # ARRANGEMENT OF SECTIONS Last update- 28-02-2023 ____________________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II SEXUAL OFFENCES AGAINST CHILDREN A.—PENETRATIVE SEXUAL ASSAULT AND PUNISHMENT THEREFOR 3. Penetrative sexual assault. 4. Punishment for penetrative sexual assault. B.—AGGRAVATED PENETRATIVE SEXUAL ASSAULT AND PUNISHMENT THEREFOR 5. Aggravated penetrative sexual assault. 6. Punishment for aggravated penetrative sexual assault. C.—SEXUAL ASSAULT AND PUNISHMENT THEREFOR 7. Sexual assault. 8. Punishment for sexual assault. D.—AGGRAVATED SEXUAL ASSAULT AND PUNISHMENT THEREFOR 9. Aggravated sexual assault. 10. Punishment for aggravated sexual assault. E.—SEXUAL HARASSMENT AND PUNISHMENT THEREFOR 11. Sexual harassment. 12. Punishment for sexual harassment. CHAPTER III USING CHILD FOR PORNOGRAPHIC PURPOSES AND PUNISHMENT THEREFOR 13. Use of child for pornographic purposes. 14. Punishment for using child for pornographic purposes. 15. Punishment for storage of pornographic material involving child. CHAPTER IV ABETMENT OF AND ATTEMPT TO COMMIT AN OFFENCE 16. Abetment of an offence. 17. Punishment for abetment. 18. Punishment for attempt to commit an offence. 1 ----- CHAPTER V PROCEDURE FOR REPORTING OF CASES SECTIONS 19. Reporting of offences. 20. Obligation of media, studio and photographic facilities to report cases. 21. Punishment for failure to report or record a case. 22. Punishment for false complaint or false information. 23. Procedure for media. CHAPTER VI PROCEDURES FOR RECORDING STATEMENT OF THE CHILD 24. Recording of statement of a child. 25. Recording of statement of a child by Magistrate. 26. Additional provisions regarding statement to be recorded. 27. Medical examination of a child. CHAPTER VII SPECIAL COURTS 28. Designation of Special Courts. 29. Presumption as to certain offences. 30. Presumption of culpable mental state. 31. Application of Code of Criminal Procedure, 1973 to proceedings before a Special Court. 32. Special Public Prosecutors. CHAPTER VIII PROCEDURE AND POWERS OF SPECIAL COURTS AND RECORDING OF EVIDENCE 33. Procedure and powers of Special Court. 34. Procedure in case of commission of offence by child and determination of age by Special Court. 35. Period for recording of evidence of child and disposal of case. 36. Child not to see accused at the time of testifying. 37. Trials to be conducted in camera. 38. Assistance of an interpreter or expert while recording evidence of child. CHAPTER IX MISCELLANEOUS 39. Guidelines for child to take assistance of experts, etc. 40. Right of child to take assistance of legal practitioner. 41. Provisions of sections 3 to 13 not to apply in certain cases. 42. Alternative punishment. 42A. Act not in derogation of any other law. 43. Public awareness about Act. 44. Monitoring of implementation of Act. 45. Power to make rules. 46. Power to remove difficulties. THE SCHEDULE. 2 ----- # THE PROTECTION OF CHILDREN FROM SEXUAL OFFENCES ACT, 2012 ACT NO. 32 OF 2012 [19th June, 2012.] # An Act to protect children from offences of sexual assault, sexual harassment and pornography and provide for establishment of Special Courts for trial of such offences and for matters connected therewith or incidental thereto. WHEREAS clause (3) of article 15 of the Constitution, inter alia, empowers the State to make special provisions for children; AND WHEREAS, the Government of India has acceded on the 11th December, 1992 to the Convention on the Rights of the Child, adopted by the General Assembly of the United Nations, which has prescribed a set of standards to be followed by all State parties in securing the best interests of the child; AND WHEREAS it is necessary for the proper development of the child that his or her right to privacy and confidentiality be protected and respected by every person by all means and through all stages of a judicial process involving the child; AND WHEREAS it is imperative that the law operates in a manner that the best interest and well being of the child are regarded as being of paramount importance at every stage, to ensure the healthy physical, emotional, intellectual and social development of the child; AND WHEREAS the State parties to the Convention on the Rights of the Child are required to undertake all appropriate national, bilateral and multilateral measures to prevent— _(a)the inducement or coercion of a child to engage in any unlawful sexual activity;_ _(b)the exploitative use of children in prostitution or other unlawful sexual practices;_ _(c)the exploitative use of children in pornographic performances and materials;_ AND WHEREAS sexual exploitation and sexual abuse of children are heinous crimes and need to be effectively addressed. BE it enacted by Parliament in the Sixty-third Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Protection of Children** from Sexual Offences Act, 2012. _(2) It extends to the whole of India, [1]***._ _(3) It shall come into force on such date[2] as the Central Government may, by notification in the_ Official Gazette, appoint. **2. Definitions.—(1) In this Act, unless the context otherwise requires, —** _(a) “aggravated penetrative sexual assault” has the same meaning as assigned to it in section 5;_ _(b) “aggravated sexual assault” has the same meaning as assigned to it in section 9;_ _(c) “armed forces or security forces” means armed forces of the Union or security forces or police_ forces, as specified in the Schedule; _(d) “child” means any person below the age of eighteen years;_ 1. The words “except the State of Jammu and Kashmir” omitted by Act 34 of 2019, s. 95 and the Fifth Schedule (w.e.f. 31-10-2019). 2. 14th November, 2012, vide notification No. S.O. 2705 (E), dated 9th November, 2012, see Gazette of India Extraordinary, Part II, sec. 3(ii). 3 ----- 1[(da) “child pornography” means any visual depiction of sexually explicit conduct involving a child which include photograph, video, digital or computer generated image indistinguishable from an actual child and image created, adapted, or modified, but appear to depict a child;] _(e) “domestic relationship” shall have the same meaning as assigned to it in clause (f) of section_ 2 of the Protection of Women from Domestic Violence Act, 2005 (43 of 2005); _(f) “penetrative sexual assault” has the same meaning as assigned to it in section 3;_ _(g) “prescribed” means prescribed by rules made under this Act;_ _(h) “religious institution” shall have the same meaning as assigned to it in the Religious_ Institutions (Prevention of Misuse) Act, 1988 (41 of 1988). _(i) “sexual assault” has the same meaning as assigned to it in section 7;_ _(j) “sexual harassment” has the same meaning as assigned to it in section 11;_ _(k) “shared household” means a household where the person charged with the offence lives or has_ lived at any time in a domestic relationship with the child; _(l) “Special Court” means a court designated as such under section 28;_ _(m) “Special Public Prosecutor” means a Public Prosecutor appointed under section 32._ _(2) The words and expressions used herein and not defined but defined in the Indian Penal Code_ (45 of 1860), the Code of Criminal Procedure, 1973 (2 of 1974), [2][the Juvenile Justice (Care and Protection of Children) Act, 2015 (2 of 2016)] and the Information Technology Act, 2000 (21 of 2000) shall have the meanings respectively assigned to them in the said Codes or the Acts. CHAPTER II SEXUAL OFFENCES AGAINST CHILDREN A.—PENETRATIVE SEXUAL ASSAULT AND PUNISHMENT THEREFOR **3. Penetrative sexual assault.—A person is said to commit “penetrative sexual assault” if—** (a) he penetrates his penis, to any extent, into the vagina, mouth, urethra or anus of a child or makes the child to do so with him or any other person; or (b) he inserts, to any extent, any object or a part of the body, not being the penis, into the vagina, the urethra or anus of the child or makes the child to do so with him or any other person; or (c) he manipulates any part of the body of the child so as to cause penetration into the vagina, urethra, anus or any part of body of the child or makes the child to do so with him or any other person; or (d) he applies his mouth to the penis, vagina, anus, urethra of the child or makes the child to do so to such person or any other person. **4. Punishment for penetrative sexual assault.—[3][(1)] Whoever commits penetrative sexual assault** shall be punished with imprisonment of either description for a term which shall not be less than [4][ten years] but which may extend to imprisonment for life, and shall also be liable to fine. [5][(2) Whoever commits penetrative sexual assault on a child below sixteen years of age shall be punished with imprisonment for a term which shall not be less than twenty years, but which may extend to imprisonment for life, which shall mean imprisonment for the remainder of natural life of that person and shall also be liable to fine. (3) The fine imposed under sub-section (1) shall be just and reasonable and paid to the victim to meet the medical expenses and rehabilitation of such victim.] 1. Ins. by Act 25 of 2019, s. 2 (w.e.f. 16-08-2019). 2. Subs. by s. 2, ibid., for “the Juvenile Justice (Care and Protection of Children) Act, 2000 (56 of 2000)” (w.e.f. 16-08-2019). 3. Section 4 renumbered as section 4(1) thereof by s. 3, ibid (w.e.f. 16-08-2019). 4. Subs. by s. 3, ibid., for “seven years” (w.e.f. 16-08-2019). 5. Ins. by s. 3, ibid. (w.e.f. 16-08-2019). 4 ----- B.—AGGRAVATED PENETRATIVE SEXUAL ASSAULT AND PUNISHMENT THEREFOR **5.** **Aggravated penetrative sexual assault.—(a) Whoever, being a police officer, commits** penetrative sexual assault on a child — (i) within the limits of the police station or premises at which he is appointed; or (ii) in the premises of any station house, whether or not situated in the police station, to which he is appointed; or (iii) in the course of his duties or otherwise; or (iv) where he is known as, or identified as, a police officer; or (b) whoever being a member of the armed forces or security forces commits penetrative sexual assault on a child— (i) within the limits of the area to which the person is deployed; or (ii) in any areas under the command of the forces or armed forces; or (iii) in the course of his duties or otherwise; or (iv) where the said person is known or identified as a member of the security or armed forces; or (c) whoever being a public servant commits penetrative sexual assault on a child; or (d) whoever being on the management or on the staff of a jail, remand home, protection home, observation home, or other place of custody or care and protection established by or under any law for the time being in force, commits penetrative sexual assault on a child, being inmate of such jail, remand home, protection home, observation home, or other place of custody or care and protection; or (e) whoever being on the management or staff of a hospital, whether Government or private, commits penetrative sexual assault on a child in that hospital; or (f) whoever being on the management or staff of an educational institution or religious institution, commits penetrative sexual assault on a child in that institution; or (g) whoever commits gang penetrative sexual assault on a child. _Explanation.—When a child is subjected to sexual assault by one or more persons of a group in_ furtherance of their common intention, each of such persons shall be deemed to have committed gang penetrative sexual assault within the meaning of this clause and each of such person shall be liable for that act in the same manner as if it were done by him alone; or (h) whoever commits penetrative sexual assault on a child using deadly weapons, fire, heated substance or corrosive substance; or (i) whoever commits penetrative sexual assault causing grievous hurt or causing bodily harm and injury or injury to the sexual organs of the child; or (j) whoever commits penetrative sexual assault on a child, which— (i) physically incapacitates the child or causes the child to become mentally ill as defined under clause (l) of section 2 of the Mental Health Act, 1987 (14 of 1987) or causes impairment of any kind so as to render the child unable to perform regular tasks, temporarily or permanently; [1]*** (ii) in the case of female child, makes the child pregnant as a consequence of sexual assault; (iii) inflicts the child with Human Immunodeficiency Virus or any other life threatening disease or Infection which may either temporarily or permanently impair the child by rendering him physically incapacitated, or mentally ill to perform regular tasks; [1]*** 2[(iv) causes death of the child; or] 1. The word “or” omitted by Act 25 of 2019, s. 4 (w.e.f. 16-08-2019). 2. Ins. by s. 4, ibid (w.e.f. 16-08-2019). 5 ----- (k) whoever, taking advantage of a child's mental or physical disability, commits penetrative sexual assault on the child; or (l) whoever commits penetrative sexual assault on the child more than once or repeatedly; or (m) whoever commits penetrative sexual assault on a child below twelve years; or (n) whoever being a relative of the child through blood or adoption or marriage or guardianship or in foster care or having a domestic relationship with a parent of the child or who is living in the same or shared household with the child, commits penetrative sexual assault on such child; or (o) whoever being, in the ownership, or management, or staff, of any institution providing services to the child, commits penetrative sexual assault on the child; or (p) whoever being in a position of trust or authority of a child commits penetrative sexual assault on the child in an institution or home of the child or anywhere else; or (q) whoever commits penetrative sexual assault on a child knowing the child is pregnant; or (r) whoever commits penetrative sexual assault on a child and attempts to murder the child; or (s) whoever commits penetrative sexual assault on a child in the course of [1][communal or sectarian violence or during any natural calamity or in similar situations]; or (t) whoever commits penetrative sexual assault on a child and who has been previously convicted of having committed any offence under this Act or any sexual offence punishable under any other law for the time being in force; or (u) whoever commits penetrative sexual assault on a child and makes the child to strip or parade naked in public, is said to commit aggravated penetrative sexual assault. **2[6. Punishment for aggravated penetrative sexual assault.—(1) Whoever commits aggravated** penetrative sexual assault shall be punished with rigorous imprisonment for a term which shall not be less than twenty years, but which may extend to imprisonment for life, which shall mean imprisonment for the remainder of natural life of that person and shall also be liable to fine, or with death. (2) The fine imposed under sub-section (1) shall be just and reasonable and paid to the victim to meet the medical expenses and rehabilitation of such victim.] C. —SEXUAL ASSAULT AND PUNISHMENT THEREFOR **7. Sexual assault.—Whoever, with sexual intent touches the vagina, penis, anus or breast of the child** or makes the child touch the vagina, penis, anus or breast of such person or any other person, or does any other act with sexual intent which involves physical contact without penetration is said to commit sexual assault. **8. Punishment for sexual assault.—Whoever, commits sexual assault, shall be punished with** imprisonment of either description for a term which shall not be less than three years but which may extend to five years, and shall also be liable to fine. D. —AGGRAVATED SEXUAL ASSAULT AND PUNISHMENT THEREFOR **9. Aggravated sexual assault.—(a) Whoever, being a police officer, commits sexual assault on a** child— (i) within the limits of the police station or premises where he is appointed; or (ii) in the premises of any station house whether or not situated in the police station to which he is appointed; or (iii) in the course of his duties or otherwise; or 1. Subs. by Act 25 of 2019, s. 4, for “communal or sectarian violence” (w.e.f. 16-08-2019). 2. Subs. by s. 5, ibid., for section 6 (w.e.f. 16-08-2019). 6 ----- (iv) where he is known as, or identified as a police officer; or (b) whoever, being a member of the armed forces or security forces, commits sexual assault on a child— (i) within the limits of the area to which the person is deployed; or (ii) in any areas under the command of the security or armed forces; or (iii) in the course of his duties or otherwise; or (iv) where he is known or identified as a member of the security or armed forces; or (c) whoever being a public servant commits sexual assault on a child; or (d) whoever being on the management or on the staff of a jail, or remand home or protection home or observation home, or other place of custody or care and protection established by or under any law for the time being in force commits sexual assault on a child being inmate of such jail or remand home or protection home or observation home or other place of custody or care and protection; or (e) whoever being on the management or staff of a hospital, whether Government or private, commits sexual assault on a child in that hospital; or (f) whoever being on the management or staff of an educational institution or religious institution, commits sexual assault on a child in that institution; or (g) whoever commits gang sexual assault on a child. _Explanation.—when a child is subjected to sexual assault by one or more persons of a group in_ furtherance of their common intention, each of such persons shall be deemed to have committed gang sexual assault within the meaning of this clause and each of such person shall be liable for that act in the same manner as if it were done by him alone; or (h) whoever commits sexual assault on a child using deadly weapons, fire, heated substance or corrosive substance; or (i) whoever commits sexual assault causing grievous hurt or causing bodily harm and injury or injury to the sexual organs of the child; or (j) whoever commits sexual assault on a child, which— (i) physically incapacitates the child or causes the child to become mentally ill as defined under clause (l) of section 2of the Mental Health Act, 1987 (14 of 1987) or causes impairment of any kind so as to render the child unable to perform regular tasks, temporarily or permanently; or (ii) inflicts the child with Human Immunodeficiency Virus or any other life threatening disease or infection which may either temporarily or permanently impair the child by rendering him physically incapacitated, or mentally ill to perform regular tasks; or (k) whoever, taking advantage of a child’s mental or physical disability, commits sexual assault on the child; or (l) whoever commits sexual assault on the child more than once or repeatedly; or (m) whoever commits sexual assault on a child below twelve years; or (n) whoever, being a relative of the child through blood or adoption or marriage or guardianship or in foster care, or having domestic relationship with a parent of the child, or who is living in the same or shared household with the child, commits sexual assault on such child; or (o) whoever, being in the ownership or management or staff, of any institution providing services to the child, commits sexual assault on the child in such institution; or (p) whoever, being in a position of trust or authority of a child, commits sexual assault on the child in an institution or home of the child or anywhere else; or (q) whoever commits sexual assault on a child knowing the child is pregnant; or (r) whoever commits sexual assault on a child and attempts to murder the child; or 7 ----- (s) whoever commits sexual assault on a child in the course of [1][ communal or sectarian violence or during any natural calamity or in any similar situations]; or (t) whoever commits sexual assault on a child and who has been previously convicted of having committed any offence under this Act or any sexual offence punishable under any other law for the time being in force; or (u) whoever commits sexual assault on a child and makes the child to strip or parade naked in public; 2[(v) whoever persuades, induces, entices or coerces a child to get administered or administers or direct anyone to administer, help in getting administered any drug or hormone or any chemical substance, to a child with the intent that such child attains early sexual maturity,] is said to commit aggravated sexual assault. **10. Punishment for aggravated sexual assault.—Whoever, commits aggravated sexual assault shall** be punished with imprisonment of either description for a term which shall not be less than five years but which may extend to seven years, and shall also be liable to fine. E.—SEXUAL HARASSMENT AND PUNISHMENT THEREFOR **11. Sexual harassment.—A person is said to commit sexual harassment upon a child when such** person with sexual intent,— (i) utters any word or makes any sound, or makes any gesture or exhibits any object or part of body with the intention that such word or sound shall be heard, or such gesture or object or part of body shall be seen by the child; or (ii) makes a child exhibit his body or any part of his body so as it is seen by such person or any other person; or (iii) shows any object to a child in any form or media for pornographic purposes; or (iv) repeatedly or constantly follows or watches or contacts a child either directly or through electronic, digital or any other means; or (v) threatens to use, in any form of media, a real or fabricated depiction through electronic, film or digital or any other mode, of any part of the body of the child or the involvement of the child in a sexual act; or (vi) entices a child for pornographic purposes or gives gratification therefor. _Explanation.—Any question which involves “sexual intent” shall be a question of fact._ **12. Punishment for sexual harassment.—Whoever, commits sexual harassment upon a child shall** be punished with imprisonment of either description for a term which may extend to three years and shall also be liable to fine. CHAPTER III USING CHILD FOR PORNOGRAPHIC PURPOSES AND PUNISHMENT THEREFOR **13. Use of child for pornographic purposes.—Whoever, uses a child in any form of media** (including programme or advertisement telecast by television channels or internet or any other electronic form or printed form, whether or not such programme or advertisement is intended for personal use or for distribution), for the purposes of sexual gratification, which includes— (a) representation of the sexual organs of a child; (b) usage of a child engaged in real or simulated sexual acts (with or without penetration); (c) the indecent or obscene representation of a child, shall be guilty of the offence of using a child for pornographic purposes. 1. Subs. by Act 25 of 2019, s. 6, for “communal or sectarian violence” (w.e.f. 16-08-2019). 2. Ins. by s. 6, ibid. (w.e.f. 16-08-2019). 8 ----- _Explanation.—For the purposes of this section, the expression ‘‘use a child’’ shall include involving a_ child through any medium like print, electronic, computer or any other technology for preparation, production, offering, transmitting, publishing, facilitation and distribution of the pornographic material. 1[14. Punishment for using child for pornographic purposes.—(1) Whoever uses a child or children for pornographic purposes shall be punished with imprisonment for a term which shall not be less than five years and shall also be liable to fine and in the event of second or subsequent conviction with imprisonment for a term which shall not be less than seven years and also be liable to fine. (2) Whoever using a child or children for pornographic purposes under sub-section (1), commits an offence referred to in section 3 or section 5 or section 7 or section 9 by directly participating in such pornographic acts, shall be punished for the said offences also under section 4, section 6, section 8 and section 10, respectively, in addition to the punishment provided in sub-section (1).] **2[15. Punishment for storage of pornographic material involving child.—(1) Any person, who** stores or possesses pornographic material in any form involving a child, but fails to delete or destroy or report the same to the designated authority, as may be prescribed, with an intention to share or transmit child pornography, shall be liable to fine not less than five thousand rupees and in the event of second or subsequent offence, with fine which shall not be less than ten thousand rupees. (2) Any person, who stores or possesses pornographic material in any form involving a child for transmitting or propagating or displaying or distributing in any manner at any time except for the purpose of reporting, as may be prescribed, or for use as evidence in court, shall be punished with imprisonment of either description which may extend to three years, or with fine, or with both. (3) Any person, who stores or possesses pornographic material in any form involving a child for commercial purpose shall be punished on the first conviction with imprisonment of either description which shall not be less than three years which may extend to five years, or with fine, or with both and in the event of second or subsequent conviction, with imprisonment of either description which shall not be less than five years which may extend to seven years and shall also be liable to fine.] CHAPTER IV ABETMENT OF AND ATTEMPT TO COMMIT AN OFFENCE **16. Abetment of an offence.—A person abets an offence, who—** _First.—Instigates any person to do that offence; or_ _Secondly.— Engages with one or more other person or persons in any conspiracy for the doing of_ that offence, if an act or illegal omission takes place in pursuance of that conspiracy, and in order to the doing of that offence; or _Thirdly.—Intentionally aids, by any act or illegal omission, the doing of that offence._ _Explanation I.—A person who, by wilful misrepresentation, or by wilful concealment of a material_ fact, which he is bound to disclose, voluntarily causes or procures, or attempts to cause or procure a thing to be done, is said to instigate the doing of that offence. _Explanation II.—Whoever, either prior to or at the time of commission of an act, does anything in_ order to facilitate the commission of that act, and thereby facilitates the commission thereof, is said to aid the doing of that act. _Explanation III.—Whoever employ, harbours, receives or transports a child, by means of threat or use_ of force or other forms of coercion, abduction, fraud, deception, abuse of power or of a position, vulnerability or the giving or receiving of payments or benefits to achieve the consent of a person having control over another person, for the purpose of any offence under this Act, is said to aid the doing of that act. 1. Subs. by Act 25 of 2019, s. 7, for section 14 (w.e.f. 16-08-2019). 2. Subs. by s. 8, ibid., for section 15 (w.e.f. 16-08-2019). 9 ----- **17. Punishment for abetment.—Whoever abets any offence under this Act, if the act abetted is** committed in consequence of the abetment, shall be punished with punishment provided for that offence. _Explanation.— An act or offence is said to be committed in consequence of abetment, when it is_ committed in consequence of the instigation, or in pursuance of the conspiracy or with the aid, which constitutes the abetment. **18. Punishment for attempt to commit an offence.—Whoever attempts to commit any offence** punishable under this Act or to cause such an offence to be committed, and in such attempt, does any act towards the commission of the offence, shall be punished with imprisonment of any description provided for the offence, for a term which may extend to one half of the imprisonment for life or, as the case may be, one-half of the longest term of imprisonment provided for that offence or with fineor with both. CHAPTER V PROCEDURE FOR REPORTING OF CASES **19. Reporting of offences.—(1) Notwithstanding anything contained in the Code of Criminal** Procedure, 1973 (2 of1974)any person(including the child), who has apprehension that an offence under this Act is likely to be committed or has knowledge that such an offence has been committed, he shall provide such information to,— (a) the Special Juvenile Police Unit; or (b) the local police. (2) Every report given under sub-section (1) shall be— (a) ascribed an entry number and recorded in writing; (b) be read over to the informant; (c) shall be entered in a book to be kept by the Police Unit. (3) Where the report under sub-section (1) is given by a child, the same shall be recorded under sub-section (2) in a simple language so that the child understands contents being recorded. (4) In case contents are being recorded in the language not understood by the child or wherever it is deemed necessary, a translator or an interpreter, having such qualifications, experience and on payment of such fees as may be prescribed, shall be provided to the child if he fails to understand the same. (5) Where the Special Juvenile Police Unit or local police is satisfied that the child against whom an offence has been committed is in need of care and protection, then, it shall, after recording the reasons in writing, make immediate arrangement to give him such care and protection including admitting the child into shelter home or to the nearest hospital within twenty-four hours of the report, as may be prescribed. (6) The Special Juvenile Police Unit or local police shall, without unnecessary delay but within a period of twenty-four hours, report the matter to the Child Welfare Committee and the Special Court or where no Special Court has been designated, to the Court of Session, including need of the child for care and protection and steps taken in this regard. (7) No person shall incur any liability, whether civil or criminal, for giving the information in good faith for the purpose of sub-section (1). **20. Obligation of media, studio and photographic facilities to report cases.—Any personnel of the** media or hotel or lodge or hospital or club or studio or photographic facilities, by whatever name called, irrespective of the number of persons employed therein, shall, on coming across any material or object which is sexually exploitative of the child (including pornographic, sexually-related or making obscene representation of a child or children) through the use of any medium, shall provide such information to the Special Juvenile Police Unit, or to the local police, as the case may be. **21. Punishment for failure to report or record a case.—(1) Any person, who fails to report the** commission of an offence under sub-section (1) of section 19 or section 20 or who fails to record such 10 ----- offence under sub-section (2) of section 19 shall be punished with imprisonment of either description which may extend to six months or with fine or with both. (2) Any person, being in-charge of any company or an institution (by whatever name called) who fails to report the commission of an offence under sub-section (1) of section 19 in respect of a subordinate under his control, shall be punished with imprisonment for a term which may extend to one year and with fine. (3) The provisions of sub-section (1) shall not apply to a child under this Act. **22. Punishment for false complaint or false information.—(1) Any person, who makes false** complaint or provides false information against any person, in respect of an offence committed under sections 3, 5, 7 and section 9, solely with the intention to humiliate, extort or threaten or defame him, shall be punished with imprisonment for a term which may extend to six months or with fine or with both. (2) Where a false complaint has been made or false information has been provided by a child, no punishment shall be imposed on such child. (3) Whoever, not being a child, makes a false complaint or provides false information against a child, knowing it to be false, thereby victimizing such child in any of the offences under this Act, shall be punished with imprisonment, which may extend to one year or with fine or with both. **23. Procedure for media.—(1) No person shall make any report or present comments on any child** from any form of media or studio or photographic facilities without having complete and authentic information, which may have the effect of lowering his reputation or infringing upon his privacy. (2) No reports in any media shall disclose, the identity of a child including his name, address, photograph, family details, school, neighbourhood or any other particulars which may lead to disclosure of identity of the child: Provided that for reasons to be recorded in writing, the Special Court, competent to try the case under the Act, may permit such disclosure, if in its opinion such disclosure is in the interest of the child. (3) The publisher or owner of the media or studio or photographic facilities shall be jointly and severally liable for the acts and omissions of his employee. (4) Any person who contravenes the provisions of sub-section (1) or sub-section (2) shall be liable to be punished with imprisonment of either description for a period which shall not be less than six months but which may extend to one year or with fine or with both. CHAPTER VI PROCEDURES FOR RECORDING STATEMENT OF THE CHILD **24. Recording of statement of a child.—(1) The statement of the child shall be recorded at the** residence of the child or at a place where he usually resides or at the place of his choice and as far as practicable by a woman police officer not below the rank of sub-inspector. (2) The police officer while recording the statement of the child shall not be in uniform. (3) The police officer making the investigation, shall, while examining the child, ensure that at no point of time the child come in the contact in any way with the accused. (4) No child shall be detained in the police station in the night for any reason. (5) The police officer shall ensure that the identity of the child is protected from the public media, unless otherwise directed by the Special Court in the interest of the child. **25. Recording of statement of a child by Magistrate.—(1) If the statement of the child is being** recorded under section 164 of the Code of Criminal Procedure, 1973 (2 of 1974)(herein referred to as the Code), the Magistrate recording such statement shall, notwithstanding anything contained therein, record the statement as spoken by the child: Provided that the provisions contained in the first proviso to sub-section (1) of section 164 of the Code shall, so far it permits the presence of the advocate of the accused shall not apply in this case. 11 ----- (2) The Magistrate shall provide to the child and his parents or his representative, a copy of the document specified under section 207 of the Code, upon the final report being filed by the police under section 173 of that Code. **26. Additional provisions regarding statement to be recorded.—(1) The Magistrate or the police** officer, as the case may be, shall record the statement as spoken by the child in the presence of the parents of the child or any other person in whom the child has trust or confidence. (2) Wherever necessary, the Magistrate or the police officer, as the case may be, may take the assistance of a translator or an interpreter, having such qualifications, experience and on payment of such fees as may be prescribed, while recording the statement of the child. (3) The Magistrate or the police officer, as the case may be, may, in the case of a child having a mental or physical disability, seek the assistance of a special educator or any person familiar with the manner of communication of the child or an expert in that field, having such qualifications, experience and on payment of such fees as may be prescribed, to record the statement of the child. (4) Wherever possible, the Magistrate or the police officer, as the case may be, shall ensure that the statement of the child is also recorded by audio-video electronic means. **27. Medical examination of a child.—(1) The medical examination of a child in respect of whom** any offence has been committed under this Act, shall, notwithstanding that a First Information Report or complaint has not been registered for the offences under this Act, be conducted in accordance with section 164A of the Code of Criminal Procedure, 1973 (2 of 1973). (2) In case the victim is a girl child, the medical examination shall be conducted by a woman doctor. (3) The medical examination shall be conducted in the presence of the parent of the child or any other person in whom the child reposes trust or confidence. (4) Where, in case the parent of the child or other person referred to in sub-section (3) cannot be present, for any reason, during the medical examination of the child, the medical examination shall be conducted in the presence of a woman nominated by the head of the medical institution. CHAPTER VII SPECIAL COURTS **28. Designation of Special Courts.—(1) For the purposes of providing a speedy trial, the State** Government shall in consultation with the Chief Justice of the High Court, by notification in the Official Gazette, designate for each district, a Court of Session to be a Special Court to try the offences under the Act: Provided that if a Court of Session is notified as a children’s court under the Commissions for Protection of Child Rights Act, 2005 (4 of 2006)or a Special Court designated for similar purposes under any other law for the time being in force, then, such court shall be deemed to be a Special Court under this section. (2) While trying an offence under this Act, a Special Court shall also try an offence [other than the offence referred to in sub-section (1)], with which the accused may, under the Code of Criminal Procedure, 1973 (2 of 1974) be charged at the same trial. (3) The Special Court constituted under this Act, notwithstanding anything in the Information Technology Act, 2000 (21 of 2000)shall have jurisdiction to try offences under section 67B of that Act in so far as it relates to publication or transmission of sexually explicit material depicting children in any act, or conduct or manner or facilitates abuse of children online. **29. Presumption as to certain offences.—Where a person is prosecuted for committing or abetting** or attempting to commit any offence under sections 3, 5, 7 and section 9 of this Act, the Special Court shall presume, that such person has committed or abetted or attempted to commit the offence, as the case may be unless the contrary is proved. **30. Presumption of culpable mental state.—(1) In any prosecution for any offence under this Act** which requires a culpable mental state on the part of the accused, the Special Court shall presume the 12 ----- existence of such mental state but it shall be a defence for the accused to prove the fact that he had no such mental state with respect to the act charged as an offence in that prosecution. (2) For the purposes of this section, a fact is said to be proved only when the Special Court believes it to exist beyond reasonable doubt and not merely when its existence is established by a preponderance of probability. _Explanation.—In this section, “culpable mental state” includes intention, motive, knowledge of a fact_ and the belief in, or reason to believe, a fact. **31. Application of Code of Criminal Procedure, 1973 to proceedings before a Special Court.—** Save as otherwise provided in this Act, the provisions of the Code of Criminal Procedure, 1973 (2 of 1974)(including the provisions as to bail and bonds)shall apply to the proceedings before a Special Court and for the purposes of the said provisions, the Special Court shall be deemed to be a court of Sessions and the person conducting a prosecution before a Special Court, shall be deemed to be a Public Prosecutor. **32. Special Public Prosecutors.—(1) The State Government shall, by notification in the Official** Gazette, appoint a Special Public Prosecutor for every Special Court for conducting cases only under the provisions of this Act. (2) A person shall be eligible to be appointed as a Special Public Prosecutor under sub-section (1) only if he had been in practice for not less than seven years as an advocate. (3) Every person appointed as a Special Public Prosecutor under this section shall be deemed to be a Public Prosecutor within the meaning of clause (u) of section 2 of the Code of Criminal Procedure, 1973 (2 of 1974)and provision of that Code shall have effect accordingly. CHAPTER VIII PROCEDURE AND POWERS OF SPECIAL COURTS AND RECORDING OF EVIDENCE **33. Procedure and powers of Special Court.—(1) A Special Court may take cognizance of any** offence, without the accused being committed to it for trial, upon receiving a complaint of facts which constitute such offence, or upon a police report of such facts. (2) The Special Public Prosecutor, or as the case may be, the counsel appearing for the accused shall, while recording the examination-in-chief, cross-examination or re-examination of the child, communicate the questions to be put to the child to the Special Court which shall in turn put those questions to the child. (3) The Special Court may, if it considers necessary, permit frequent breaks for the child during the trial. (4) The Special Court shall create a child-friendly atmosphere by allowing a family member, a guardian, a friend or a relative, in whom the child has trust or confidence, to be present in the court. (5) The Special Court shall ensure that the child is not called repeatedly to testify in the court. (6) The Special Court shall not permit aggressive questioning or character assassination of the child and ensure that dignity of the child is maintained at all times during the trial. (7) The Special Court shall ensure that the identity of the child is not disclosed at any time during the course of investigation or trial: Provided that for reasons to be recorded in writing, the Special Court may permit such disclosure, if in its opinion such disclosure is in the interest of the child. _Explanation.—For the purposes of this sub-section, the identity of the child shall include the identity_ of the child's family, school, relatives, neighbourhood or any other information by which the identity of the child may be revealed. 13 ----- (8) In appropriate cases, the Special Court may, in addition to the punishment, direct payment of such compensation as may be prescribed to the child for any physical or mental trauma caused to him or for immediate rehabilitation of such child. (9) Subject to the provisions of this Act, a Special Court shall, for the purpose of the trial of any offence under this Act, have all the powers of a Court of Session and shall try such offence as if it were a Court of Session, and as far as may be, in accordance with the procedure specified in the Code of Criminal Procedure, 1973 (2 of 1974) for trial before a Court of Session. **34. Procedure in case of commission of offence by child and determination of age by Special** **Court.—(1) Where any offence under this Act is committed by a child, such child shall be dealt with** under the provisions of [1][the Juvenile Justice (Care and Protection of Children) Act, 2015 (2 of 2016)]. (2) If any question arises in any proceeding before the Special Court whether a person is a child or not, such question shall be determined by the Special Court after satisfying itself about the age of such person and it shall record in writing its reasons for such determination. (3) No order made by the Special Court shall be deemed to be invalid merely by any subsequent proof that the age of a personas determined by it under sub-section (2) was not the correct age of that person. **35. Period for recording of evidence of child and disposal of case.—(1) The evidence of the child** shall be recorded within a period of thirty days of the Special Court taking cognizance of the offence and reasons for delay, if any, shall be recorded by the Special Court. (2) The Special Court shall complete the trial, as far as possible, within a period of one year from the date of taking cognizance of the offence. **36. Child not to see accused at the time of testifying.—(1) The Special Court shall ensure that the** child is not exposed in anyway to the accused at the time of recording of the evidence, while at the same time ensuring that the accused is in a position to hear the statement of the child and communicate with his advocate. (2) For the purposes of sub-section (1), the Special Court may record the statement of a child through video conferencing or by utilising single visibility mirrors or curtains or any other device. **37. Trials to be conducted** **_in camera.—The Special Court shall try cases_** _in camera_ and in the presence of the parents of the child or any other person in whom the child has trust or confidence: Provided that where the Special Court is of the opinion that the child needs to be examined at a place other than the court, it shall proceed to issue a commission in accordance with the provisions of section 284 of the Code of Criminal Procedure, 1973 (2 of 1974). **38. Assistance of an interpreter or expert while recording evidence of child.—(1) wherever** necessary, the Court may take the assistance of a translator or interpreter having such qualifications, experience and on payment of such fees as may be prescribed, while recording the evidence of the child. (2) If a child has a mental or physical disability, the Special Court may take the assistance of a special educator or any person familiar with the manner of communication of the child or an expert in that field, having such qualifications, experience and on payment of such fees as may be prescribed to record the evidence of the child. CHAPTER IX MISCELLANEOUS **39. Guidelines for child to take assistance of experts, etc.—Subject to such rules as may be made** in this behalf, the State Government shall prepare guidelines for use of non-governmental organisations, professionals and experts or persons having knowledge of psychology, social work, physical health, mental health and child development to be associated with the pre-trial and trial stage to assist the child. 1. Subs. by Act 25 of 2019, s. 9, for “the Juvenile Justice (Care and Protection of Children) Act, 2000 (56 of 2000)” (w.e.f. 1608-2019). 14 ----- **40. Right of child to take assistance of legal practitioner.—Subject to the proviso to section 301 of** the Code of Criminal Procedure, 1973 (2 of 1974)the family or the guardian of the child shall be entitled to the assistance of a legal counsel of their choice for any offence under this Act: Provided that if the family or the guardian of the child are unable to afford a legal counsel, the Legal Services Authority shall provide a lawyer to them. **41.Provisions of sections 3 to 13 not to apply in certain cases.—The provisions of sections 3 to 13** (both inclusive) shall not apply in case of medical examination or medical treatment of a child when such medical examination or medical treatment is undertaken with the consent of his parents or guardian. **1[42. Alternate punishment.—Where an act or omission constitutes an offence punishable under this** Act and also under sections 166A, 354A, 354B, 354C, 354D, 370, 370A, 375, 376, [2][376A, 376AB, 376B, 376C, 376D, 376DA, 376DB], [3][376E, section 509 of the Indian Penal Code or section 67B of the Information Technology Act, 2000 (21 of 2000)], then, notwithstanding anything contained in any law for the time being in force, the offender found guilty of such offence shall be liable to punishment only under this Act or under the Indian Penal Code as provides for punishment which is greater in degree. STATE AMENDMENT **Arunachal Pradesh** **Amendment of section 42.—In section 42 of the Protection of Children Act, 2012 for the words** figures and letters sections 166A, 354A, 354B, 354C, 354D, 370, 370A, 375, 376, 376A, 376C, 376D, 376E or section 509 of the Indian Penal Code the words figures and letters sections 166A 354A, 354B, 354C, 354D, 370, 370A, 375, 376, 376A, 376AA, 376C, 376D, 376DA, 376E or section 509 of the Indian Penal Code shall be substituted. [Vide Arunachal Pradesh Act 3 of 2019, s. 26] **42A. Act not in derogation of any other law.—The provisions of this Act shall be in addition to and** not in derogation of the provisions of any other law for the time being in force and, in case of any inconsistency, the provisions of this Act shall have overriding effect on the provisions of any such law to the extent of the inconsistency.] **43. Public awareness about Act.—The Central Government and every State Government, shall take** all measures to ensure that— (a) the provisions of this Act are given wide publicity through media including the television, radio and the print media at regular intervals to make the general public, children as well as their parents and guardians aware of the provisions of this Act; (b) the officers of the Central Government and the State Governments and other concerned persons (including the police officers) are imparted periodic training on the matters relating to the implementation of the provisions of the Act. **44. Monitoring of implementation of Act.—(1) The National Commission for Protection of Child** Rights constituted under section 3, or as the case may be, the State Commission for Protection of Child Rights constituted under section 17, of the Commissions for Protection of Child Rights Act, 2005 (4 of 2006) shall, in addition to the functions assigned to them under that Act, also monitor the implementation of the provisions of this Act in such manner as may be prescribed. (2) The National Commission or, as the case may be, the State Commission, referred to in sub-section (1), shall, while inquiring into any matter relating to any offence under this Act, have the same powers as are vested in it under the Commissions for Protection of Child Rights Act, 2005 (4 of 2006). (3) The National Commission or, as the case may be, the State Commission, referred to in sub-section (1), shall, also include, its activities under this section, in the annual report referred to in section 16 of the Commissions for Protection of Child Rights Act, 2005 (4 of 2006). 1. Subs. by Act 13 of 2013, s. 29, for s. 42 (w.e.f. 3-2-2013). 2. Subs. by Act 22 of 2018, s. 25, for “376A, 376C, 376D” (w.e.f. 21-4-2018). 3. Subs. by Act 25 of 2019, s. 10, for “376E or section 509 of the Indian Penal Code (45 of 1860)” (w.e.f. 16-08-2019). 15 ----- **45. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules for carrying out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing powers, such rules may provide for all or any of the following matters, namely:— 1[(a) the manner of deleting or destroying or reporting about pornographic material in any form involving a child to the designated authority under sub-section (1) of section 15; (aa) the manner of reporting about pornographic material in any form involving a child under sub-section (2) of section 15;] [2][(ab)] the qualifications and experience of, and the fees payable to, a translator or an interpreter, a special educator or any person familiar with the manner of communication of the child or an expert in that field, under sub-section (4) of section 19; sub-sections(2) and (3) of section 26 and section 38; (b) care and protection and emergency medical treatment of the child under sub-section (5) of section 19; (c) the payment of compensation under sub-section (8) of section 33; (d) the manner of periodic monitoring of the provisions of the Act under sub-section (1) of section44. (3) Every rule made under this section shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **46. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to it to be necessary or expedient for removal of the difficulty: Provided that no order shall be made under this section after the expiry of the period of two years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. 1. Ins. by Act 25 of 2019, s. 11 (w.e.f. 16-08-2019). 2. Clause (a) re-lettered as clause (ab) thereof by Act 25 of 2019, s. 11 (w.e.f. 16-08-2019). 16 ----- THE SCHEDULE [See section 2(c)] ARMED FORCES AND SECURITY FORCES CONSTITUTED UNDER (a) The Air Force Act, 1950 (45 of 1950); (b) The Army Act, 1950 (46 of 1950); (c) The Assam Rifles Act, 2006 (47 of 2006); (d) The Bombay Home Guard Act, 1947 (3 of 1947); (e) The Border Security Force Act, 1968 (47 of 1968); (f) The Central Industrial Security Force Act, 1968 (50 of 1968); (g) The Central Reserve Police Force Act, 1949 (66 of 1949); (h) The Coast Guard Act, 1978 (30 of 1978); (i) The Delhi Special Police Establishment Act, 1946 (25 of 1946); (j) The Indo-Tibetan Border Police Force Act, 1992 (35 of 1992); (k) The Navy Act, 1957 (62 of 1957); (l) The National Investigation Agency Act, 2008 (34 of 2008); (m) The National Security Guard Act, 1986 (47 of 1986); (n) The Railway Protection Force Act, 1957 (23 of 1957); (o) The Sashastra Seema Bal Act, 2007 (53 of 2007); (p) The Special Protection Group Act, 1988 (34 of 1988); (q) The Territorial Army Act, 1948 (56 of 1948); (r) The State police forces (including armed constabulary) constituted under the State laws to aid the civil powers of the State and empowered to employ force during internal disturbances or otherwise including armed forces as defined in clause (a) of section 2 of the Armed Forces (Special Powers) Act, 1958 (28 of 1958). ____________ 17 -----

30-Aug-2012

35

The Rajiv Gandhi National Institute of Youth Development Act, 2012

https://www.indiacode.nic.in/bitstream/123456789/2111/1/201235.pdf

central

# THE RAJIV GANDHI NATIONAL INSTITUTE OF YOUTH DEVELOPMENT ACT, 2012 _______ ARRANGEMENT OF SECTIONS ________ CHAPTER I PRELIMINARY SECTIONS 1. Short title and commencement. 2. Declaration of Rajiv Gandhi National Institute of Youth Development as an institution of national importance. 3. Definitions. CHAPTER II RAJIV GANDHI NATIONAL INSTITUTE OF YOUTH DEVELOPMENT 4. Incorporation of Institute. 5. Effect of establishment of Institute. 6. Objects of Institute. 7. Functions of Institute. 8. Institute to be open to all races, creeds, gender and classes. 9. Teaching at Institute. 10. Visitor. CHAPTER III AUTHORITIES OF THE INSTITUTE 11. Authorities of Institute. 12. Establishment of Executive Council. 13. Terms of office of, vacancies among, and allowances payable to members of Executive Council. 14. Meetings of Executive Council. 15. Powers and functions of Executive Council. 16. Academic Council. 17. Functions of Academic Council. 18. Finance Committee. 19. Functions of Finance Committee. 20. Other authorities. CHAPTER IV OFFICERS OF THE INSTITUTE 21. Officers of Institute. 22. Director. 23. Registrar. 24. Other officers. CHAPTER V FINANCE, ACCOUNTS AND AUDIT 25. Grants by Central Government. 26. Fund of Institute. 1 ----- SECTIONS 27. Endowment to other funds. 28. Accounts and audit. 29. Pension and provident fund. 30. Appointment of staff of Institute. 31. Power to make Statutes. 32. Statutes how to be made. 33. Power to make Ordinances. 34. Ordinances how to be made. 35. Conduct of business by authorities of Institute. 36. Tribunal of Arbitration. CHAPTER VI MISCELLANEOUS 37. Acts and proceedings not to be invalidated by vacancies. 38. Grant of degrees, etc., by Institute. 39. Sponsored schemes. 40. Meetings of Academic Council and Finance Committee. 41. Power of Central Government to give directions to Institute. 42. Protection action taken in good faith. 43. Power to make rules. 44. Statutes, Ordinances notifications to be published in Official Gazette and to be laid before Parliament. 45. Power to remove difficulties. 46. Transitional provisions. 2 ----- # THE RAJIV GANDHI NATIONAL INSTITUTE OF YOUTH DEVELOPMENT ACT, 2012 ACT NO. 35 OF 2012 [30th August, 2012.] # An Act to declare the institution known as the Rajiv Gandhi National Institute of Youth Development, to be an institution of national importance and to provide for its incorporation and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Sixty-third Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title and commencement.—(1) This Act may be called the Rajiv Gandhi National Institute** of Youth Development Act, 2012. (2) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Declaration of Rajiv Gandhi National Institute of Youth Development as an institution of** **national importance.—Whereas the objects of the institution known as the Rajiv Gandhi National** Institute of Youth Development are such as to make the institution one of national importance, it is hereby declared that the institution known as the Rajiv Gandhi National Institute of Youth Development is an institution of national importance. **3. Definitions.—In this Act, unless the context otherwise requires,—** (a) “Academic Council” means the Academic Council of the Institute; (b) “appointed day” means the date appointed under sub-section (2) of section 1 for coming into force of this Act; _(c) “Chairperson” means a Chairperson to the Executive Council referred to in clause (a) of_ sub-section (2) of section 12; (d) “Director” means the Director of the Institute referred to in clause (a) of section 21; (e) “Executive Council” means the Executive Council of the Institute established under section 12; (f) “existing Institute” means the Rajiv Gandhi National Institute of Youth Development, Sriperumbudur, established under the provisions of the Society Registration Act, 1860 (21 of 1860) and declared as deemed to be a University under section 3 of the University Grants Commission Act, 1956 (3 of 1956), and which is in existence immediately before the commencement of this Act; (g) “Fund” means the fund of the Institute to be maintained under section 26; (h) “Institute” means the Rajiv Gandhi National Institute of Youth Development incorporated under section 4; _(i) “notification” means the notification published in the Official Gazette;_ _(j) “prescribed” means prescribed by rules made under this Act;_ (k) “Registrar” means the Registrar of the Institute referred to in section 23; (l) “Statutes” and “Ordinances” mean the Statutes and Ordinances of the Institute made under this Act. 1.19th November, 2012, _vide notification No. S.O. 2747(E), dated 19th November, 2012,_ _see Gazette of India,_ Extraordinary, Part II, sec. 3(ii). 3 ----- CHAPTER II RAJIV GANDHI NATIONAL INSTITUTE OF YOUTH DEVELOPMENT **4. Incorporation of Institute.—(1) The Rajiv Gandhi National Institute of Youth Development shall** be a body corporate having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property and to contract, and shall, by that name, sue and be sued. (2) The first Chairperson, the first Director and the first members of the Executive Council and the Academic Council, and all persons who may hereafter become such officers or members, so long as they continue to hold such office or membership, shall constitute the Institute. (3) The headquarters of the Institute shall be in the district of Kanchipuram, in the State of Tamil Nadu. (4) The Institute may establish and maintain centres at such other places in India as it may deem fit. **5. Effect of establishment of Institute.—On and from the appointed day and subject to other** provisions of this Act,— (a) any reference to the existing Institute in any contract or other instrument shall be deemed as a reference to the Institute; (b) all property, movable and immovable, of or belonging to the existing Institute shall vest in the Institute; (c) all rights and liabilities of the existing Institute shall be transferred to, and be the rights and liabilities of, the Institute; and (d) every person employed by the existing Institute immediately before the appointed day shall hold office or service in the Institute by the same tenure, at the same remuneration and upon the same terms and conditions and with the same rights and privileges as to pension, leave, gratuity, provident fund and other matters as he would have held the same if this Act had not been passed, and shall continue to do so unless and until his employment is terminated or until such tenure, remuneration and terms and conditions are duly altered by the Statutes: Provided that if the alteration so made is not acceptable to such employee, his employment may be terminated by the Institute in accordance with the terms of the contract with the employee or, if no provision is made therein in this behalf, on payment to him by the Institute a compensation equivalent to three months' remuneration in the case of permanent employees and one month's remuneration in the case of other employees. **6. Objects of Institute.—The objects of the Institute shall be,—** (a) to evolve and achieve an integrated approach to youth development for preparing and empowering the youth for the future, by— (i) providing action oriented research inputs for policy formulation; (ii) implementation of policy through extension and other programmes; (iii) promoting assessment and impact study and conducting teaching, training and other academic programmes; (b) to set up advanced National Youth Resource Centre commensurate with the international standards to provide for comprehensive and scientifically analysed data on all youth-related issues and matters, with adequate library facility, documentation and publication; (c) to provide for research and development and dissemination of knowledge through extension and outreach programmes; (d) to act as a nodal agency for capacity building of stakeholders including youth bodies, organisations and agencies relating to youth; 4 ----- (e) to empower youth to participate in inclusive development and nation building; (f) to evolve as an institute of advanced study in the field of youth and to develop such professional excellence as may be required for the purpose; (g) to provide for higher education in the field of youth development through employment oriented and inter-disciplinary courses at the post graduate level. **7. Functions of Institute.—(1) Without prejudice to the provisions contained in section 6, the** Institute shall,— (a) develop a “think tank” by way of carrying out policy research, evaluation and impact analysis on youth programmes and issues of contemporary and future relevance; (b) function as a repository of knowledge pertaining to data on youth; _(c) develop documentation, information and publication services for youth training and extension;_ _(d) provide technical advice and consultancy for formulation of youth related policy and_ promotion of youth programme; (e) build the professional capacity of youth organisations, both in Government and voluntary sector; (f) design, develop and conduct appropriate training and orientation programmes; (g) conduct seminars, workshops and conferences on issues relating to youth; (h) set up centres for dissemination of academic and training programmes; _(i) collaborate with national and international university, centres, institutes and such other_ agencies relating to youth training and youth development; (j) establish programmes of study and research and to provide for instruction in such branches of study as the institute deems appropriate; (k) award, subject to such conditions as the Institute may determine, degrees, diplomas, certificates or other academic distinctions or titles at various academic levels; (l) confer honorary degrees or other distinction awards, fellowships, scholarships, prizes and medals; (m) determine, demand and receive fees and other charges for its courses, programmes and other matters; (n) conduct and coordinate projects and studies relating to youth sponsored by the Government of India and other developmental agencies; (o) create with the prior approval of the Central Government, academic, technical, administrative, managerial and other posts in the Institute and make appointments thereto in accordance with the rules and regulations of the Institute; (p) regulate the conduct of the affairs of the Institute; (q) supervise and control the discipline of all categories of employees and students of the Institute; (r) purchase, hire, lease, exchange or acquire property, movable or immovable and to construct, alter and maintain any building or buildings as may be necessary; (s) set up distance learning or education centres, in collaboration with Open Universities, to provide access to the aspiring young professionals enabling them to take up a career in the field of youth development; (t) establish, maintain and manage halls of residences and hostels for students; 5 ----- (u) lay down conditions of service including a code of conduct for teachers and other categories of employees; (v) supervise, control and regulate the discipline of students of the Institute and to make arrangements for promoting their health and general welfare; (w) coordinate student exchange programmes with reputed International Youth Development Institutions; _(x) undertake, assist and promote all such activities conducive or incidental to the attainment of_ the objectives. (2) The Institute may receive gifts, grants, donations or benefactions from the Government and to receive bequests, donations and transfers of movable or immovable properties from the testators, donors or transferors, as the case may be. _(3) The Institute may enter into agreements with international organisations, institutions and_ universities to broaden the scope of the youth work and to facilitate knowledge development and participatory learning. **8. Institute to be open to all races, creeds, gender and classes.—(1) The Institute shall be open to** persons of either sex and of whatever race, creed, caste or class, physical ability, and no test or condition shall be imposed as to religious belief or profession in admitting students, appointing teachers or employees or in any other connection whatsoever. (2) No bequest, donation or transfer of any property shall be accepted by the Institute which in the opinion of the Executive Council involves conditions or obligations opposed to the spirit and object of this section. **9. Teaching at Institute.—All teaching and other academic activities at the Institute shall be** conducted by or in the name of the Institute in accordance with the Statutes and Ordinances made in this behalf. **10. Visitor.—(1) The President of India shall be the Visitor of the Institute:** Provided that the President may, by order, nominate any person to be the Visitor and such person so nominated shall hold office for such term, not exceeding five years as may be specified in the order and the person so nominated shall exercise the powers and discharge duties of the Visitor. (2) The Visitor may, from time to time, appoint one or more persons to review the work and progress of the Institute and to hold inquiries into the affairs thereof and to report thereon in such manner as the Visitor may direct. (3) Upon receipt of any such report, the Visitor may take such action and issue such directions as he considers necessary in respect of any of the matters dealt with in the report and the Institute shall be bound to comply with such directions within reasonable time. CHAPTER III AUTHORITIES OF THE INSTITUTE **11. Authorities of Institute.—The Institute shall consist of the following authorities, namely:—** (a) the Executive Council; _(b) the Academic Council; and_ (c) such other authorities as may be declared by the Statutes to be the authorities of the Institute. **12. Establishment of Executive Council.—(1) With effect from such date as the Central** Government may, by notification, appoint in this behalf, there shall be established for the purpose of this Act, a central body to be called as the Executive Council. (2) The Executive Council shall consist of the following members, namely:— (a) an eminent person of academic repute to be nominated by the Visitor—Chairperson; 6 ----- (b) an eminent person in the field of Youth Development to be nominated by the Visitor—Vice Chairperson; (c) Secretary, Department of Youth Affairs, Ministry of Youth Affairs and Sports—ex officio Member; (d) Joint Secretary, Department of Youth Affairs, Ministry of Youth Affairs and Sports—ex _officio Member;_ (e) Director, Rajiv Gandhi National Institute of Youth Development—ex officio Member; (f) Professor from Rajiv Gandhi National Institute of Youth Development on rotation—Member; (g) one eminent sports personality to be nominated by the Central Government—Member; (h) one Head from an Academic Institution to be nominated by the Central Government— Member; (i) one representative from the industry to be nominated by the Central Government from the Federation of Indian Chamber of Commerce and Industry or Confederation of Indian Industry by the Central Government—Member; (j) the Registrar, Rajiv Gandhi National Institute of Youth Development—Member-Secretary. (3) While nominating the members of the Executive Council under sub-section (2) due representation shall be given to women, different regions of the country, and weaker sections of the community and differently abled persons. **13. Terms of office of, vacancies among, and allowances payable to members of Executive** **Council.—(1) The term of office of every member of the Executive Council shall be for a period of three** years from the date of his nomination: Provided that the term of office of an ex officio member shall continue so long as he holds the office by virtue of which he is a member. (2) The term of office of a member nominated to fill a casual vacancy shall be for the remainder of the term of the member in whose place he has been nominated. (3) Notwithstanding anything contained in this section, an out-going member shall, unless the Central Government otherwise directs, continue in office until another person is nominated as a member in his place or until the expiry of one year, whichever is earlier. (4) The members of the Executive Council, other than _ex officio_ members, shall be paid such travelling and other allowances as may be provided by the Statutes. **14. Meetings of Executive Council.—(1) The Chairperson shall ordinarily preside at the meetings of** the Executive Council and at the Convocation of the Institute: Provided that, in his absence, the Vice-Chairperson of the Executive Council shall preside at the meetings of the Executive Council. (2) It shall be the duty of the Chairperson to ensure that the decisions taken by the Executive Council are implemented. _(3) The Chairperson shall exercise such other powers and perform such other duties as are assigned to_ him by this Act. (4) The Executive Council shall meet at least four times in a year and follow such procedure, in its meetings (including quorum at such meetings) as may be provided by the Statutes. **15. Powers and functions of Executive Council.—(1) Subject to the provisions of this Act, the** Executive Council shall be responsible for the general superintendence, direction and control of the affairs of the Institute and shall also exercise the powers of the Institute not otherwise provided for by this Act, the Statutes and the Ordinances, and shall have the power to review the acts of the Academic Council and Finance Committee. 7 ----- (2) Without prejudice to the provisions of sub-section (1), the Executive Council shall— (a) take decisions on questions of policy relating to the administration and working of the Institute; (b) lay down policy regarding the duration of the courses, nomenclature of the degrees and other distinctions to be conferred by the Institute; (c) institute courses of study and lay down standards of proficiency and other academic distinctions in respect of the courses offered by the Institute; (d) lay down, with prior approval of the Central Government, the policy regarding the cadre structure, qualification, the method of recruitment and conditions of service of the teaching and research faculty as well as other employees of the Institute; (e) guide resource mobililsation of the Institute and to lay down policies for utilisation; (f) consider and approve proposals for taking loans for purposes of the Institute with or without the security of the property of the Institute; (g) make Statutes and to alter, modify or rescind the same; (h) consider and pass resolutions on annual report, annual accounts and the budget estimates of the Institutes for the next financial year as it thinks fit together with a statement of its development plans; and (i) do all such things, not specifically covered under clauses (a) to (h), as may be necessary, incidental or conductive to the attainment of all or any of the powers under this section. (3) The Executive Council shall have the power to appoint such committees as it considers necessary for the exercise of its powers and the performance of its duties under this Act. (4) The Executive Council may, by a specific resolution to this effect, delegate any of its powers and duties to the Chairperson, Director, any officer or any authority of the Institute subject to reserving the right to review the action that may be taken under such delegated authority. **16. Academic Council.—(1) The Academic Council shall be the principal academic body of the** Institute and shall, subject to the provisions of this Act, the Statutes and the Ordinances, co-ordinate and exercise general supervision over the academic policies of the Institute. (2) The Academic Council shall consist of the following, namely:— (a) Director-Chairman ex officio; _(b) one head of an academic institution of national importance to be nominated by the_ Chairperson; (c) one Director from any of the Indian Institute of Technology or the Indian Institute of Management to be nominated by the Chairperson; (d) Member in-charge of Youth Affairs in the Planning Commission of India ex officio; (e) one person from any international non-governmental organisation working in India in the field of youth work to be nominated by the Chairperson; _(f) two representatives from the non-governmental industrial sector to be nominated by the_ Chairperson; (g) one Professor from the Institute, on rotation basis; (h) Director of the Lal Bahadur Shastri National Academy of Administration, Mussorie, _ex officio;_ (i) two persons from non-governmental organisations working in the field of youth and adolescent development out of whom one person shall be from the north-eastern region, to be nominated by the Chairperson; 8 ----- (j) two students of the Institute out of whom one student shall be female; (k) three eminent academicians from among the fields of Social Science, Health Science, Agricultural Science, Skill Development, Management and Law to be nominated by the Chairperson; _(l) one woman representative from the International Development Organisation to be nominated_ by the Chairperson; (m) an officer not below the rank of Joint Secretary to the Government of India dealing with the affairs of the Institute in the Union Ministry of Youth Affairs and Sports, ex officio. (3) The term of office of members of the Academic Council and its powers shall be such as may be provided by the Statutes. (4) While nominating the members of the Academic Council due representation shall be given to women (by including at least four women), from different regions of the country, weaker sections of the community and differently abled persons. **17. Functions of Academic Council.—Subject to the provisions of this Act, the Statutes and the** Ordinances, the Academic Council shall have the control and general regulation, and be responsible for the framing of the Ordinances, maintenance of standards of instruction, education and examination in the Institute and shall exercise such other powers and perform such other duties as may be conferred or imposed upon it by the Statutes. **18. Finance Committee.—(1) There shall be a Finance Committee of the Institute which shall be the** principal financial body of the Institute. _(2) The Finance Committee shall consist of the following, namely:—_ (a) Director-Presiding Officer of the Finance Committee; (b) Joint Secretary and Financial Adviser in the Union Ministry of Youth Affairs and Sports; (c) Registrar of the Institute; (d) one Professor of the Institute on rotation basis, as may be nominated by the Chairperson; (e) one Member from the Executive Council to be nominated by the Chairperson; (f) Joint Secretary in the Ministry of Youth Affairs and Sports dealing with the affairs of the Institute; (g) the Finance Officer of the Institute—Member-Secretary. (3) The term of office of members of the Finance Committee and its powers shall be such as may be provided by the Statutes. (4) While nominating the members of the Academic Council due representation shall be given to women, different regions of the country, weaker sections of the community and differently abled persons. **19. Functions of Finance Committee.—The Finance Committee shall perform the following** functions, namely:— (a) to scrutinise the accounts and budget estimates of the Institute and to make recommendations to the Executive Council; (b) to scrutinise the proposals for new expenditure on account of major works on purchases; (c) to scrutinise re-appropriation statements and audit notes and make recommendations thereon to the Executive Council; (d) to review the finances of the Institute from time to time and have concurrent audit conducted whenever necessary; and (e) to give advice and make recommendations to the Executive Council on any financial questions affecting the affairs of the Institute. 9 ----- **20. Other authorities.—The constitution, powers and functions of the other authorities, as may be** declared by the Statutes to be authorities of the Institute, shall be such as may be provided by the Statutes. CHAPTER IV OFFICERS OF THE INSTITUTE **21. Officers of Institute.—The Institute shall consist of the following officers, namely:—** (a) the Director; (b) the Registrar; and (c) such other officers as may be declared by the Statutes to be the officers of the Institute. **22. Director.—(1) The Director of the Institute shall be appointed by the Visitor for a period of three** years in the manner specified in sub-sections (2) and (3) on such terms and conditions of service as may be provided by the Statutes: Provided that the first Director shall be appointed by the Central Government on such terms and conditions as it deems fit, for a period not exceeding six months from the appointed day. (2) The Director shall be appointed by the Visitor from a panel of three persons with outstanding academic qualifications as recommended by a Search Committee constituted by the Central Government for that purpose. (3) The Search Committee referred to in sub-section (2) shall consist of three members, one each to be nominated by the Executive Council, the Central Government and the Visitor. (4) The Director shall be the principal academic and executive officer of the Institute and shall be responsible for the proper administration and academic performance of the Institute and for imparting of instruction and maintenance of discipline therein. (5) The Director shall submit annual report and audited accounts of the Institute to the Executive Council and the Central Government and the Central Government shall thereupon cause the same to be laid before each House of Parliament. (6) The Director shall exercise such other powers and perform such other duties as may be assigned to him by the Act, the Statutes and the Ordinances. **23. Registrar.—(1) The Registrar of the Institute shall be appointed in such manner and on such** terms and conditions as may be provided by the Statutes and shall be the custodian of records, common seal, the funds of the Institute and such other property of the Institute as the Executive Council shall commit to his charge. (2) The Registrar shall act as the Member-Secretary of the Executive Council, the Academic Council and such committees as may be provided by the Statutes. (3) The Registrar shall be responsible to the Director for the proper discharge of his functions. (4) The Registrar shall exercise such other powers and perform such other duties as may be assigned to him by this Act, the Statutes or by the Director. **24. Other officers.—The manner of appointment, emoluments, powers and duties of the other** officers of the Institute shall be such as may be provided by the Statutes. CHAPTER V FINANCE, ACCOUNTS AND AUDIT **25. Grants by Central Government.—The Central Government may, after due appropriation made** by Parliament by law in this behalf, pay to the Institute in each financial year such sums of money and in such manner as it may think fit for being utilised for the purposes of this Act. 10 ----- **26. Fund of Institute.—(1) The Institute shall maintain a Fund to which shall be credited—** (a) all monies provided by the Central Government; _(b) all fees and other charges levied and collected by the Institute;_ (c) all monies received by the Institute by way of grants, gifts, donations, benefactions, bequests or transfers; and (d) all monies received by the Institute in any other manner or from any other source. (2) All monies credited to the Fund shall be deposited in such banks or invested in such manner as may be decided by the Executive Council. (3) The Fund shall be applied towards meeting the expenses of the Institute including expenses incurred in the exercise of its powers and discharge of its duties under this Act. **27. Endowment or other funds.—Without prejudice to the provisions contained in section 26, the** Institute may,— (a) set up an endowment fund with an amount of one hundred crore rupees to be maintained in the Public Account and any other fund for a specified purpose; and (b) transfer monies from its fund to the endowment fund or any other fund. **28. Accounts and audit.—(1) The Institute shall maintain proper accounts and other relevant records** and prepare an annual statement of accounts, including the balance sheet, in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India. (2) The accounts of the Institute shall be audited by the Comptroller and Auditor-General of India and any expenditure incurred by him in connection with such audit shall be payable by the Institute to the Comptroller and Auditor-General of India. (3) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Institute shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General of India has in connection with the audit of the Government accounts, and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect the offices of the Institute. (4) The accounts of the Institute as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and the Central Government shall cause the same to be laid before each House of Parliament. **29. Pension and provident fund.—(1) The Institute shall constitute for the benefits of its employees,** including the Director, such pension, insurance and provident fund scheme as it may deem fit, in such manner and subject to such conditions as may be provided by the Statutes. (2) Where any such provident fund has been so constituted, the Central Government may declare that the provisions of the Provident Funds Act, 1925 (19 of 1925) shall apply to such fund as if it were a Government Provident Fund. **30. Appointment of staff of Institute.—All appointments of the staff of the Institute, except that of** the Director, shall be made with the prior approval of the Central Government and in accordance with the procedure laid down in the Statutes,— (a) by the Executive Council, if the appointment is made on the academic staff in the post of Assistant Professor or above or if the appointment is made on the non-academic staff in any cadre, the maximum of the pay-scale for which is the same or higher than that of an Assistant Professor; and (b) by the Director, in any other case. 11 ----- **31. Power to make Statutes.—Subject to the provisions of this Act, the Statutes may provide for all** or any of the following matters, namely:— (a) the formation of departments of teaching and other academic units; (b) the institution of fellowships, scholarships, exhibitions, medals and prizes; (c) the classification of posts, terms of office, method of appointment, powers and duties and other terms and conditions of service of the officers of the Institute including the Chairperson, the Director, the Registrar and such other officers as may be declared as officers of the Institute by the Statutes; (d) the constitution, powers and duties of the authorities of the Institute referred in clause (c) of section 11; (e) the delegation of powers vested in the authorities or officers of the Institute; (f) the code of conduct, disciplinary actions thereto for misconduct including removal from service of employees on account of misconduct and the procedure for appeal against the actions of an officer or authority of the Institute; (g) the conferment of honorary degrees; (h) the establishment and maintenance of halls, residences and hostels; _(i) the authentication of the orders and decisions of the Executive Council;_ (j) any other matter which by this Act is to be, or may be, provided by the Statutes. **32. Statutes how to be made.—(1) The first Statutes of the Institute shall be framed by the Central** Government with the approval of the Visitor, and a copy of the same shall be laid as soon as may be, after it is made, before each House of Parliament. (2)Without prejudice to the provisions contained in sub-section (1), the Executive Council may, from time to time, make new or additional Statutes or may amend or repeal the Statutes in the manner hereafter in this section provided. _(3) A new Statute or addition to the Statutes or any amendment or repeal of a Statute shall require the_ previous approval of the Visitor who may assent thereto or withhold such assent or remit it to the Executive Council for consideration. (4) A new Statute or a Statute amending or repealing an existing Statute shall have no validity unless it has been assented to by the Visitor. **33. Power to make Ordinances.—Subject to the provisions of this Act and the Statutes, the** Ordinances of the Institute may provide for all or any of the following matters, namely:— (a) the admission of the students to the Institute; (b) the reservation in admission to various courses or programmes of the Institute for the Scheduled Castes, the Scheduled Tribes and other categories of persons; (c) the courses of study to be laid down for all degrees, diplomas and certificates awarded by the Institute; (d) the conditions under which students shall be admitted to the degree, diploma and certificate courses and to the examinations of the Institute and the eligibility conditions for awarding the same; (e) the conditions of award of fellowships, scholarships, exhibitions, medals and prizes; (f) the conditions and manner of appointment and duties of examining bodies, examiners and moderators; (g) the conduct of examinations; (h) the maintenance of discipline among the students of the Institute; 12 ----- (i) the fees to be charged for courses of study in the Institute and for admission to the examinations of degrees of the Institute; (j) the conditions of residence of students of the Institute and the levying of the fees for residence in the halls and hostels and of other charges; and (k) any other matter which by this Act or the Statute is to be, or may be, provided by the Ordinances. **34. Ordinances how to be made.—(1) Save as otherwise provided in this section, Ordinances shall** be made by the Academic Council. (2) All Ordinances made by the Academic Council shall have effect from such date as it may direct, but every Ordinance so made shall be submitted, as soon as may be, to the Executive Council and shall be considered by the Executive Council at its next succeeding meeting. (3) The Executive Council shall have power by resolution to modify or cancel any such Ordinance and such Ordinance shall from the date of such resolution stand modified accordingly or cancelled, as the case may be. **35. Conduct of business by authorities of Institute.—The authorities of the Institute may have their** own rules of procedure, consistent with the provisions of this Act, the Statutes and the Ordinances for the conduct of their own business and that of the committees, if any, appointed by them and not provided for by this Act, the Statutes or the Ordinances. **36. Tribunal of Arbitration.—(1) Any dispute arising out of a contract between the Institute and any** of its employees shall, at the request of the employee concerned or at the instance of the Institute, be referred to a Tribunal of Arbitration consisting of one member appointed by the Institute, one member nominated by the employee, and an umpire appointed by the Visitor. (2) The decision of the Tribunal shall be final and shall not be questioned in any court. (3) No suit or proceeding shall lie in any court in respect of any matter, which is required by sub-section (1) to be referred to the Tribunal of Arbitration. (4) The Tribunal of Arbitration shall have power to regulate its own procedure. (5) Nothing contained in any law for the time being in force relating to arbitration shall apply to arbitrations under this section. CHAPTER VI MISCELLANEOUS **37. Acts and proceedings not to be invalidated by vacancies.—No act of the Institute or Executive** Council or Academic Council or any other body set up under this Act or the Statutes, shall be invalid merely by reason of— (a) any vacancy in, or defect in the constitution thereof; or (b) any defect in the election, nomination or appointment, of a person acting as member thereof; or (c) any irregularity in its procedure not affecting the merits of the case. **38. Grant of degrees, etc., by Institute.—Notwithstanding anything contained in the University** Grants Commission Act, 1956 (3 of 1956) or any other law for the time being in force, the Institute shall have power to grant degrees and other academic distinctions and titles under this Act: Provided that the nomenclature of any degree to be granted by the Institute shall be notified by the University Grants Commission with the prior approval of the Central Government. **39. Sponsored schemes.—Notwithstanding anything contained in this Act, whenever the Institute** receives funds from any Government, the University Grants Commission or any other agency including 13 ----- industry sponsoring a research scheme, a consultancy assignment, a teaching programme or a chaired professorship or a scholarship, to be executed or endowed at the Institute,— (a) the amount received shall be kept by the Institute separately from the fund of the Institute and utilised only for the purpose of the scheme: Provided that any money remaining unutilised under this clause shall be transferred to the endowment fund set up under section 27; and (b) the staff required to execute the same shall be recruited in accordance with the terms and conditions stipulated by the sponsoring organisation with prior approval of the Central Government: Provided that the principles laid down in the General Financial Rules, 2005 shall be followed for approval of sponsored schemes funded by the Central Government. **40. Meetings of Academic Council and Finance Committee.—The Academic Council and the** Finance Committee shall meet at such times and follow such procedure, in its meetings (including quorum at such meetings) as may be provided by the Statutes. **41. Power of Central Government to give directions to Institute.—(1) The Central Government** may give such directions, as it may deem necessary, to the Institute for the effective administration of this Act and the Institute shall comply with such directions. (2) In case of dispute between the Institute and the Central Government, in connection with the exercise of its powers and discharge of its functions by the Institute under this Act, the decision of the Central Government on that dispute, shall be final. **42. Protection of action taken in good faith.—No suit or other legal proceedings shall lie against** any officer or employee of the Institute for anything which is in good faith done or intended to be done in pursuance of any of the provisions of this Act, the Statutes or the Ordinances. **43. Power to make rules.—(1) The Central Government may, by notification, make rules to carry** out the provisions of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the form and manner in which the books of account of the Institute shall be maintained under sub-section (1) of section 28; (b) any other matter which is required to be, or may be, prescribed. **44. Statutes, Ordinances and notifications to be published in Official Gazette and to be laid** **before Parliament.—(1) Every rule made by the Central Government and every Statute and every** Ordinance made or notification issued under this Act shall be published in the Official Gazette. (2) Every rule made by the Central Government, every Statute and every Ordinance made or notification issued under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the Statute, Ordinance or notification or both Houses agree that the Statute, Ordinance or notification should not be made or issued, the Statute, Ordinance or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that Statute, Ordinance or notification. (3) The power to make the Statutes, Ordinances or notifications shall include the power to give retrospective effect from a date not earlier than the date of commencement of this Act, to the Statutes, Ordinances, notifications or any of them but no retrospective effect shall be given to any Statute, Ordinance or notification so as to prejudicially affect the interests of any person to whom such Statute, Ordinance or notification may be applicable. 14 ----- **45. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions or give such directions not inconsistent with the provisions of this Act, as appears it to be necessary or expedient for removing the difficulty: Provided that no order shall be made under this section after the expiry of two years from the date of commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **46. Transitional provisions.—Notwithstanding anything contained in this Act,—** (a) the Advisory Board and the Executive Council of the existing Institute functioning as such immediately before the commencement of this Act shall continue to so function until an Executive Council is constituted for the Institute under this Act, but on the constitution of a new Executive Council under this Act, the members of the Advisory Board and Executive Council holding office before such constitution shall cease to hold office; and (b) until the first Statutes and the Ordinances are made under this Act, the Statutes and the Ordinances of the existing Institute, or notification as in force, immediately before the commencement of this Act, shall continue to apply to the Institute in so far as they are not inconsistent with the provisions of this Act. 15 -----

13-Sep-2012

38

The National Institute of Mental Health and Neuro-Sciences, Bangalore Act, 2012

https://www.indiacode.nic.in/bitstream/123456789/2103/1/201238.pdf

central

# THE NATIONAL INSTITUTE OF MENTAL HEALTH AND NEURO-SCIENCES, BANGALORE ACT, 2012 __________________ # ARRANGEMENT OF SECTIONS __________________ SECTIONS 1. Short title and commencement. 2. Declaration of National Institute of Mental Health and Neuro-Sciences, Bangalore, as an institution of national importance. 3. Definitions. 4. Incorporation of Institute. 5. Composition of Institute. 6. Term of office of and vacancies among members. 7. Powers and functions of President. 8. Vice-President of Institute. 9. Allowances of President, Vice-President and other members. 10. Meetings of Institute. 11. Governing Body and other committees of Institute. 12. Staff of Institute. 13. Objects of Institute. 14. Functions of Institute. 15. Vesting of property. 16. Payment to Institute. 17. Fund of Institute. 18. Budget of Institute. 19. Accounts and audit. 20. Annual report. 21. Pension and provident funds. 22. Authentication of orders and instruments of Institute. 23. Acts and proceedings not to be invalidated by vacancies, etc. 24. Grant of medical degrees, diplomas, etc., by Institute. 25. Recognition of medical qualifications granted by Institute. 26. Control by Central Government. 27. Resolution of differences. 28. Returns and information. 29. Transfer of service of existing employees. 30. Power to make rules. 31. Power to make regulations. 32. Laying of rules and regulations before Parliament. 33. Power to remove difficulties. 1 ----- # THE NATIONAL INSTITUTE OF MENTAL HEALTH AND NEURO-SCIENCES, BANGALORE ACT, 2012 ACT NO. 38 OF 2012 [13th September, 2012.] # An Act to declare the institution known as the National Institute of Mental Health and Neuro Sciences, Bangalore, to be an institution of national importance and to provide for its incorporation and for matters connected therewith. BE it enacted by Parliament in the Sixty-third Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the National Institute of Mental** Health and Neuro-Sciences, Bangalore Act, 2012. (2) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Declaration of National Institute of Mental Health and Neuro-Sciences, Bangalore, as an** **institution of national importance.—Whereas the objects of the National Institute of Mental Health and** Neuro-Sciences, Bangalore are such as to make the institution one of national importance, it is hereby declared that the National Institute of Mental Health and Neuro-Sciences, Bangalore is an institution of national importance. **3. Definitions.—In this Act, unless the context otherwise requires,—** (a) "Fund" means the Fund of the Institute referred to in section 17; (b) "Governing Body" means the Governing Body of the Institute; (c) "Institute" means the institution known as the National Institute of Mental Health and Neuro Sciences, Bangalore, incorporated under this Act; (d) "member" means a member of the Institute; (e) "prescribed" means prescribed by rules made under this Act; (f) "specified" means specified by regulations made under this Act. **4. Incorporation of Institute.—The National Institute of Mental Health and Neuro-Sciences,** Bangalore, an Institute registered under the Karnataka Societies Registration Act, 1960 (Karnataka Act, XVII of 1960) on the 27th day of December, 1974, is hereby constituted a body corporate by the name aforesaid and as such body corporate, it shall have perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property and to contract and shall, by that name, sue and be sued. **5. Composition of Institute.—(1) The Institute shall consist of the following members, namely:—** (a) the Minister of Health and Family Welfare, ex officio; (b) the Minister of Health and Family Welfare (Medical Education), Government of Karnataka, _ex officio;_ (c) Secretary to the Government of India in the Ministry or Department of Health and Family Welfare, ex officio; (d) the Director of the Institute, ex officio; (e) Secretary to the Government of India or his nominee (not below the rank of Joint Secretary) Ministry of Finance, Department of Expenditure, ex officio; 1. 29th November, 2013, _vide notification No S.O. 3534(E), dated 29th November, 2013_ _see_ Gazette of India, Extraordinary, Part II, sec. 3(ii). 2 ----- (f) Secretary to the Government of India or his nominee (not below the rank of Joint Secretary) in the Department of Higher Education, Ministry of Human Resource Development, ex officio; (g) the Director-General of Health Services, Government of India, ex officio; (h) the Vice-Chancellor of Rajiv Gandhi University of Health Sciences, Karnataka, ex officio; (i) the Chief Secretary to the Government of Karnataka or his nominee who shall not be below the rank of Secretary to that Government; _(j) seven persons of whom one shall be a non-medical scientist representing the Indian Sciences_ Congress Association, and, one each from biological; behavioural and physical sciences, of repute, from any University to be nominated by the Central Government in such manner as may be prescribed; (k) four representatives of medical faculties of Indian Universities, of whom one shall be from the National Institute of Mental Health and Neuro-Sciences, to be nominated by the Central Government in such manner as may be prescribed; (l) three Members of Parliament of whom two shall be elected from among themselves by the members of the House of the People and one from among themselves by the members of the Council of States. (2) It is hereby declared that the office of member of the Institute shall not disqualify its holder for being chosen as, or for being, a member of either House of Parliament. **6. Term of office of and vacancies among members.—(1) Save as otherwise provided in this** section, the term of office of a member shall be five years from the date of his nomination or election. (2) The term of office of a member elected under clause (l) of sub-section (1) of section 5 shall come to an end as soon as he becomes a Minister or Minister of State or Deputy Minister or the Speaker or the Deputy Speaker of the House of the People or the Deputy Chairman of the Council of States or ceases to be a member of the House from which he was elected. (3) The term of office of an ex officio member shall continue so long as he holds the office by virtue of which he is such a member. (4) The term of office of a member nominated or elected to fill a casual vacancy shall continue for the remainder of the term of the member in whose place he is nominated or elected. (5) An outgoing member other than a member elected under clause (l) of sub-section (1) of section 5 shall continue in office until another person is nominated as a member in his place or for a period of three months, whichever is earlier: Provided that the Central Government shall nominate a member in place of an outgoing member within the said period of three months. (6) An outgoing member shall be eligible for re-nomination or re-election. (7) A member may resign his office by writing under his hand addressed to the Central Government but he shall continue in office until his resignation is accepted by that Government. (8) The manner of filling vacancies among members shall be such as may be prescribed. **7. Powers and functions of President.—(1) There shall be a President of the Institute who shall be** nominated by the Central Government from amongst the members other than the Director of the Institute. (2) The President shall exercise such powers and discharge such functions as are laid down in this Act or as may be prescribed. **8. Vice-President of Institute.—There shall be a Vice-President of the Institute who shall be** nominated by the Central Government from amongst the members other than the Director of the Institute. **9. Allowances of President, Vice-President and other members.—The President, Vice-President** and other members shall receive such allowances from the Institute as may be prescribed. 3 ----- **10. Meetings of Institute.—The Institute shall hold its first meeting at such time and place as may be** appointed by the Central Government and shall observe such rules of procedure in regard to the transaction of business at the first meeting as may be laid down by that Government, and thereafter, the Institute shall meet at such times and places and observe such rules of procedure in regard to the transaction of business at its meetings as may be specified. **11. Governing Body and other committees of Institute.—(1) There shall be a Governing Body of** the Institute which shall be constituted by the Institute in such manner as may be specified: Provided that the number of persons who are not members of the Institute shall not exceed one-third of the total membership of the Governing Body. (2) The Governing Body shall be the executive committee of the Institute and shall exercise such powers and discharge such functions as the Institute may specify in this behalf. (3) The President of the Institute shall be the Chairperson of the Governing Body and as Chairperson thereof he shall exercise such powers and discharge such functions as may be specified. (4) The procedure to be followed in the exercise of its powers and discharge of its functions by the Governing Body, and the term of office of, and the manner of filling vacancies among the members of the Governing Body shall be such as may be specified. (5) Subject to such control and restrictions as may be prescribed, the Institute may constitute as many standing committees and as many _ad hoc committees as it thinks fit for exercising any power or_ discharging any function of the Institute or for inquiring into, or reporting or advising upon, any matter which the Institute may refer to them. (6) The Chairperson and members of the Governing Body and the Chairperson and the members of a standing committee or an ad hoc committee shall receive such allowances, as may be specified. **12. Staff of Institute.—(1) There shall be a chief executive officer of the Institute who shall be** designated as the Director of the Institute and shall, subject to such rules as may be prescribed, be appointed by the Institute: Provided that the first Director of the Institute shall be appointed by the Central Government. (2) The Director shall hold office for a term of five years from the date on which he enters upon his office or until he attains the age of sixty-five years, whichever is earlier. (3) The Director shall act as the Secretary to the Institute as well as the Governing Body. (4) The Director shall exercise such powers and discharge such functions as may be specified or as may be delegated to him by the Institute or the President of the Institute or the Governing Body or the Chairperson of the Governing Body. (5) Subject to such rules as may be prescribed, the Institute may appoint such number of other officers and employees as may be necessary for the exercise of its powers and discharge of its functions and the designations and grades of other officers and employees shall be such as may be specified. (6) Subject to such rules as may be prescribed, the Director and other officers and employees of the Institute shall be entitled to such salary and allowances and shall be governed by such conditions of service in respect of leave, pension, provident fund and other matters as may be specified. **13. Objects of Institute.—The objects of the Institute shall be—** (a) to develop patterns of teaching in undergraduate and postgraduate medical education in all its branches with a focus on mental health, neuro-sciences and allied specialities so as to demonstrate a high standard of medical education; (b) to bring together, as far as may be, in one place educational facilities of the highest order for the training of personnel in all important branches of health activity; 4 ----- (c) to attain self-sufficiency in postgraduate medical education to meet the country's needs for specialists and medical teachers, particularly in the field of mental health, neuro-sciences and allied specialities; (d) to evolve innovative strategies to offer diagnostic and comprehensive therapeutic service facilities in the field of mental health and neuro-sciences, utilising the advances in information technology; (e) to make an in-depth study and research in the field of mental health, neuro-sciences and allied specialities. **14. Functions of Institute.—With a view to the promotion of the objects specified in section 13, the** Institute may— (a) provide for undergraduate and postgraduate teaching in the science of modern medicine and other allied sciences including physical and biological sciences; (b) provide facilities for research in the various branches of such sciences; (c) provide for the teaching of humanities; (d) conduct experiments in new methods of medical education, both undergraduate and postgraduate, in order to arrive at high standard of such education; (e) specify courses and curricula for both undergraduate and postgraduate studies; (f) notwithstanding anything contained in any other law for the time being in force, establish and maintain,— (i) one or more medical institutions with different departments staffed and equipped to undertake education and conduct research in different subjects, (ii) one or more well equipped hospitals to provide clinical services, (iii) nursing colleges staffed and equipped for the training of nurses, (iv) rural and urban health centres which will form centres for the field training of the medical and nursing students of the Institute, and (v) other institutions for the training of different types of health workers such as physiotherapists, occupational therapists and medical technicians of various kinds; (g) trained teachers from different medical colleges in India; (h) hold examinations and grant such degrees, diplomas and other academic distinctions and titles in undergraduate and postgraduate medical, nursing and allied specialities education as may be laid down in the regulations; (i) induct and appoint persons as professors, readers, lecturers and in posts of other description in accordance with regulations; (j) receive grants from the Government and gifts, donations, benefactions, bequests and transfers of properties, both movable and immovable, from donors, benefactors, testators or transferors, as the case may be; (k) deal with any property belonging to, or vested in, the Institute in any manner which is considered necessary for promoting the objects specified in section 12; (l) demand and receive with the prior approval of the Central Government such fees and other charges as may be specified; (m) construct quarters for its staff and allot such quarters to the staff in accordance with such regulations as may be made in this behalf; (n) borrow money, with the prior approval of the Central Government, on the security of the property of the Institute; 5 ----- (o) do all such other acts and things as may be necessary in furtherance of the objects specified in section 13. **15. Vesting of Property.—(1) The properties of the National Institute of Mental Health and Neuro-** Sciences, Bangalore, registered under the Karnataka Societies Registration Act, 1960 (Katnataka Act XVII of 1960) shall, on the date of commencement of this Act, vest in the Institute. (2) All income and property of the Institute shall be applied towards the promotion of the objects thereof as set forth in this Act. (3) No portion of the income and property of the Institute shall be paid or transferred, directly or indirectly, by way of profit to the persons, who at any time, or have been members of the Institute: Provided that nothing herein contained shall prevent the payment of remuneration and other allowances to any member thereof or other persons for the services rendered to the Institute. **16. Payment to Institute.—The Central Government may, after due appropriation made by** Parliament by law in this behalf, pay to the Institute in each financial year such sums of money and in such manner as may be considered necessary for the exercise of its powers and discharge of its functions under this Act. **17. Fund of Institute.—(1) The Institute shall maintain a Fund to which shall be credited—** (a) all moneys provided by the Central Government and the State Government of Karnataka; (b) all fees and other charges received by the Institute; (c) all moneys received by the Institute by way of grants, gifts, donations, benefactions, bequests or transfers; and (d) all moneys received by the Institute in any other manner or from any other source. (2) All moneys credited to the Fund shall be deposited in such banks or invested in such manner as the Institute may, with the approval of the Central Government, decide. (3) The Fund shall be applied towards meeting the expenses of the Institute including expenses incurred in the exercise of its powers and discharge of its functions under section 14. **18. Budget of Institute.—The Institute shall prepare in such form and at such time every year a** budget in respect of the financial year next ensuing showing the estimated receipts and expenditure of the Institute and shall forward to the Central Government such number of copies thereof as may be prescribed. **19. Accounts and audit.—(1) The Institute shall maintain proper accounts and other relevant records** and prepare an annual statement of accounts including the balance-sheet in such form as the Central Government may prescribe, and in accordance with such general directions as may be issued by that Government, in consultation with the Comptroller and Auditor-General of India. (2) The accounts of the Institute shall be audited by the Comptroller and Auditor-General of India and any expenditure incurred by him in connection with such audit shall be payable by the Institute to the Comptroller and Auditor-General of India. (3) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Institute shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General of India has in connection with the audit of the Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect the offices of the Institute as well as of the institutions established and maintained by it. (4) The accounts of the Institute as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before both the Houses of Parliament. 6 ----- **20. Annual report.—The Institute shall prepare for every year a report of its activities during that** year and submit the report to the Central Government in such form and on or before such date as may be prescribed and a copy of this report shall be laid before both Houses of Parliament within one month of its receipt. **21. Pension and provident funds.—(1) The Institute shall constitute for the benefit of its officers,** teachers and other employees in such manner and subject to such conditions as may be specified such pension and provident funds as it may deem fit. (2) Where any such pension or provident fund has been constituted, the Central Government may declare that the provisions of the Provident Funds Act, 1925 (19 of 1925) shall apply to, such fund as if it were a Government Provident Fund. **22. Authentication of orders and instruments of Institute.—All orders and decisions of the** Institute shall be authenticated by the Director or any other member authorised by the Institute in this behalf and all other instruments shall be authenticated by the signature of the Director or such officers as may be authorised by the Institute. **23. Acts and proceedings not to be invalidated by vacancies, etc.—No act done or proceeding** taken by the Institute, Governing Body or any standing or _ad hoc committee under this Act shall be_ questioned on the ground merely of the existence of any vacancy in, or defect in the constitution of the Institute, Governing Body or such standing or ad hoc committee. **24. Grant of medical degrees, diplomas, etc., by Institute.—Notwithstanding anything contained in** any other law for the time being in force, the Institute shall have the power to grant medical and nursing degrees, diplomas, certificates and other academic distinctions and titles under this Act. **25. Recognition of medical qualifications granted by Institute.—Notwithstanding anything** contained in the Indian Medical Council Act, 1956 (102 of 1956), the Rehabilitation Council of India Act, 1992 (34 of 1992), the Indian Nursing Council Act, 1947 (48 of 1947) and the University Grants Commission Act, 1956 (3 of 1956), the medical degrees, diplomas, nursing degrees and certificates granted by the Institute under this Act shall be recognised medical qualifications for the purposes of the Acts aforesaid and shall be deemed to be included in the Schedule to the respective Acts. **26. Control by Central Government.—The Institute shall carry out such directions as may be issued** to it from time to time by the Central Government for the efficient administration of this Act. **27. Resolution of differences.—If in, or in connection with, the exercise of its powers and discharge** of its functions by the Institute under this Act, any dispute or difference arises between the Institute and the Central Government, the decision of the Central Government thereon shall be final. **28. Returns and information.—The Institute shall furnish to the Central Government such reports,** returns and other information as that Government may require from time to time. **29. Transfer of service of existing employees.—Subject to the provisions of this Act, every person** who is employed in the National Institute of Mental Health and Neuro-Sciences, Bangalore, immediately before the commencement of this Act, shall, on and from such commencement, become an employee of the Institute and shall hold his office or service therein by the same tenure, at the same remuneration and upon the same terms and conditions and with the same rights and privileges as to pension, leave, gratuity, provident fund and other matters as he would have held the same on the date of commencement of this Act if this Act had not been passed, and shall continue to do so unless and until his employment is terminated or until such tenure, remuneration and terms and conditions are duly altered by regulations: Provided that the tenure, remuneration and terms and conditions of service of any such person shall not be altered to his disadvantage without the previous approval of the Central Government. **30. Power to make rules.—(1) The Central Government may in consultation with the Institute by** notification in the Official Gazette, make rules to carry out the purposes of this Act. 7 ----- (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the manner of nomination of members under clauses (j) and (k) of sub-section (1) of section 5; (b) the manner of filling vacancies of members under sub-section (8) of section 6; (c) the powers and functions to be exercised and discharged by the President of the Institute under sub-section (2) of section 7; (d) the allowances to be paid to the President and other members of the Institute under section 9; (e) the control and restrictions in relation to the constitution of standing and ad hoc committees under sub-section (5) of section 11; (f) appointment of Director and other officers and employees and salaries and allowances and other conditions of service of the Director and other officers and employees of the Institute under section 12; (g) the form in which, and the time at which, the budgets and reports shall be prepared by the Institute under section 18; (h) the form of annual statement of accounts including balance-sheet under sub-section (1) of section 19; (i) the form of annual report under section 20; (j) any other matter which has to be or may be prescribed by rules. **31. Power to make regulations.—(1) The Institute with the previous approval of the Central** Government, may by notification in the Official Gazette, make regulations consistent with this Act and the rules made thereunder to carry out the purposes of this Act, and without prejudice to the generality of this power, such regulations may provide for— (a) the summoning and holding of meetings, other than the first meeting, of the Institute, the time and place where such meetings are to be held and the conduct of business at such meetings under section 10; (b) the manner of constituting the Governing Body and standing and ad hoc committees, the term of office of, and the manner of filling vacancies therein, the allowances to be paid to the members and the procedure to be followed by the Governing Body; standing and ad hoc committees in the conduct of their business, exercise of their power, discharge of their function under section 11; (c) the powers and duties of the Director of the Institute under sub-section (4), the designations and grades of other officers and employees under sub-section (5) and other conditions of service under sub-section (6) of section 12; (d) the power of the Institute under section 14, to specify— (i) courses and curricula for undergraduate and postgraduate studies under clause (e); (ii) hold examination and grant degrees, diplomas, certificates and other academic distinctions and titles under clause (h); (iii) the professorships, readerships, lecturerships and other posts which may be instituted and persons who may be appointed to such posts under clause (i); (iv) the management of the properties of the Institute under clauses (k) and (m); (v) the fees and other charges which may be demanded and received by the Institute under clause (l); (e) the manner in which, and the conditions subject to which, pension and provident funds may be constituted for the benefit of officers, teachers and other employees of the Institute under sub-section (1) of section 21; (f) any other matter for which under this Act provisions may be made by regulations. 8 ----- (2) Notwithstanding anything contained in sub-section (1), the first regulations under this Act shall be made by the Central Government; and any regulations so made may be altered or rescinded by the Institute in exercise of its powers under sub-section (1). **32. Laying of rules and regulations before Parliament.—Every rule and every regulation made** under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. **33. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order, published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as may appear to it to be necessary for removing the difficulty: Provided that no such order shall be made after the expiry of the period of two years from the date of commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. _____________ 9 -----

22-Apr-2013

14

The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

https://www.indiacode.nic.in/bitstream/123456789/2104/1/A2013-14.pdf

central

# THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013 ________________ ARRANGEMENT OF SECTIONS Last updated: 31-8-2021 _________________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. 3. Prevention of sexual harassment. CHAPTER II CONSTITUTION OF INTERNAL COMPLAINTS COMMITTEE 4. Constitution of Internal Complaints Committee. CHAPTER III CONSTITUTION OF LOCAL COMPLAINTS COMMITTEE 5. Notification of District Officer. 6. Constitution and jurisdiction of Local Committee. 7. Composition tenure and other terms and conditions of Local Committee. 8. Grants and audit. CHAPTER IV COMPLAINT 9. Complaint of sexual harassment. 10. Conciliation. 11. Inquiry into complaint. CHAPTER V INQUIRY INTO COMPLAINT 12. Action during pendency of inquiry. 13. Inquiry report. 14. Punishment for false or malicious complaint and false evidence. 15. Determination of compensation. 16. Prohibition of publication or making known contents of complaint and inquiry proceedings. 17. Penalty for publication or making known contents of complaint and inquiry proceedings. 18. Appeal. 1 ----- SECTIONS 19. Duties of employer. CHAPTER VI DUTIES OF EMPLOYER CHAPTER VII DUTIES AND POWERS OF DISTRICT OFFICER 20. Duties and powers of District Officer. CHAPTER VIII MISCELLANEOUS 21. Committee to submit annual report. 22. Employer to include information in annual report. 23. Appropriate Government to monitor implementation and maintain data. 24. Appropriate Government to take measures to publicise the Act. 25. Power to call for information and inspection of records. 26. Penalty for non-compliance with provisions of Act. 27. Cognizance of offence by courts. 28. Act not in derogation of any other law. 29. Power of appropriate Government to make rules. 30. Power to remove difficulties. 2 ----- # THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013 ACT NO. 14 OF 2013 [22nd April, 2013] # An Act to provide protection against sexual harassment of women at workplace and for the prevention and redressal of complaints of sexual harassment and for matters connected therewith or incidental thereto. WHEREAS sexual harassment results in violation of the fundamental rights of a woman to equality under articles 14 and 15 of the Constitution of India and her right to life and to live with dignity under article 21 of the Constitution and right to practice any profession or to carry on any occupation, trade or business which includes a right to a safe environment free from sexual harassment; AND WHEREAS the protection against sexual harassment and the right to work with dignity are universally recognised human rights by international conventions and instruments such as Convention on the Elimination of all Forms of Discrimination against Women, which has been ratified on the 25th June, 1993 by the Government of India; AND WHEREAS it is expedient to make provisions for giving effect to the said Convention for protection of women against sexual harassment at workplace. BE it enacted by Parliament in the Sixty-fourth Year of the Republic of India as follows: — CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1)** This Act may be called the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. (2) It extends to the whole of India. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2.** **Definitions.—In this Act, unless the context otherwise requires, —** (a) “aggrieved woman” means— (i) in relation to a workplace, a woman, of any age whether employed or not, who alleges to have been subjected to any act of sexual harassment by the respondent; (ii) in relation to dwelling place or house, a woman of any age who is employed in such a dwelling place or house; (b) “appropriate Government” means— (i) in relation to a workplace which is established, owned, controlled or wholly or substantially financed by funds provided directly or indirectly— (A) by the Central Government or the Union territory administration, the Central Government; (B) by the State Government, the State Government; 1. 9th December, 2013, vide notification No. S.O. 3606(E), dated 9th December, 2013, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 3 ----- (ii) in relation to any workplace not covered under sub-clause (i) and falling within its territory, the State Government; (c) “Chairperson” means the Chairperson of the Local Complaints Committee nominated under sub-section (1) of section 7; (d) “District Officer” means on officer notified under section 5; (e) “domestic worker” means a woman who is employed to do the household work in any household for remuneration whether in cash or kind, either directly or through any agency on a temporary, permanent, part time or full time basis, but does not include any member of the family of the employer; (f) “employee” means a person employed at a workplace for any work on regular, temporary, ad _hoc or daily wage basis, either directly or through an agent, including a contractor, with or, without_ the knowledge of the principal employer, whether for remuneration or not, or working on a voluntary basis or otherwise, whether the terms of employment are express or implied and includes a co-worker, a contract worker, probationer, trainee, apprentice or called by any other such name; (g) “employer” means— (i) in relation to any department, organisation, undertaking, establishment, enterprise, institution, office, branch or unit of the appropriate Government or a local authority, the head of that department, organisation, undertaking, establishment, enterprise, institution, office, branch or unit or such other officer as the appropriate Government or the local authority, as the case may be, may by an order specify in this behalf; (ii) in any workplace not covered under sub-clause (i), any person responsible for the management, supervision and control of the workplace. _Explanation. —For the purposes of this sub-clause “management” includes the person or_ board or committee responsible for formulation and administration of polices for such organisation; (iii) in relation to workplace covered under sub-clauses (i) and (ii), the person discharging contractual obligations with respect to his or her employees; (iv) in relation to a dwelling place or house, a person or a household who employs or benefits from the employment of domestic worker, irrespective of the number, time period or type of such worker employed, or the nature of the employment or activities performed by the domestic worker; (h) “Internal Committee” means an Internal Complaints Committee constituted under section 4; (i) “Local Committee” means the Local Complaints Committee constituted under section 6; (j) “Member” means a Member of the Internal Committee or the Local Committee, as the case may be; (k) “prescribed” means prescribed by rules made under this Act; (l) “Presiding Officer” means the Presiding Officer of the Internal Complaints Committee nominated under sub-section (2) of section 4; (m) “respondent’ means a person against whom the aggrieved woman has made a complaint under section 9; 4 ----- (n) “sexual harassment” includes any one or more of the following unwelcome acts or behavior (whether directly or by implication) namely:— (i) physical contact and advances; or (ii) a demand or request for sexual favours; or (iii) making sexually coloured remarks; or (iv) showing pornography; or (v) any other unwelcome physical, verbal or non-verbal conduct of sexual nature; (o) “workplace” includes— (i) any department, organisation, undertaking, establishment, enterprise, institution, office, branch or unit which is established, owned, controlled or wholly or substantially financed by funds provided directly or indirectly by the appropriate Government or the local authority or a Government company or a corporation or a co-operative society; (ii) any private sector organisation or a private venture, undertaking, enterprise, institution, establishment, society, trust, non-governmental organisation, unit or service provider carrying on commercial, professional, vocational, educational, entertainmental, industrial, health services or financial activities including production, supply, sale, distribution or service; (iii) hospitals or nursing homes; (iv) any sports institute, stadium, sports complex or competition or games venue, whether residential or not used for training, sports or other activities relating thereto; (v) any place visited by the employee arising out of or during the course of employment including transportation by the employer for undertaking such journey; (vi) a dwelling place or a house; (p) “unorganised sector” in relation to a workplace means an enterprise owned by individuals or self-employed workers and engaged in the production or sale of goods or providing service of any kind whatsoever, and where the enterprise employs workers, the number of such workers is less than ten. **3.** **Prevention of sexual harassment.—(1)** No woman shall be subjected to sexual harassment at any workplace. (2) The following circumstances, among other circumstances, if it occurs, or is present in relation to or connected with any act or behavior of sexual harassment may amount to sexual harassment:— (i) implied or explicit promise of preferential treatment in her employment; or (ii) implied or explicit threat of detrimental treatment in her employment ; or (iii) implied or explicit threat about her present or future employment status; or (iv) interference with her work or creating an intimidating or offensive or hostile work environment for her; or (v) humiliating treatment likely to affect her health or safety. CHAPTER II CONSTITUTION OF INTERNAL COMPLAINTS COMMITTEE **4.** **Constitution of Internal Complaints Committee.— (1) Every employer of a workplace shall, by** an order in writing, constitute a Committee to be known as the “Internal Complaints Committee”: 5 ----- Provided that where the offices or administrative units of the workplace are located at different places or divisional or sub-divisional level, the Internal Committee shall be constituted at all administrative units or offices. (2) The Internal Committees shall consist of the following members to be nominated by the employer, namely: — (a) a Presiding Officer who shall be a woman employed at a senior level at workplace from amongst the employees: Provided that in case a senior level woman employee is not available, the Presiding Officer shall be nominated from other offices or administrative units of the workplace referred to in sub-section(1): Provided further that in case the other offices or administrative units of the workplace do not have a senior level woman employee, the Presiding Officer shall be nominated from any other workplace of the same employer or other department or organisation; (b) not less than two Members from amongst employees preferably committed to the cause of women or who have had experience in social work or have legal knowledge; (c) one member from amongst non-governmental organisations or associations committed to the cause of women or a person familiar with the issues relating to sexual harassment: Provided that at least one-half of the total Members so nominated shall be women. (3) The Presiding Officer and every Member of the Internal Committee shall hold office for such period, not exceeding three years, from the date of their nomination as may be specified by the employer. (4) The Member appointed from amongst the non-governmental organisations or associations shall be paid such fees or allowances for holding the proceedings of the Internal Committee, by the employer, as may be prescribed. (5) Where the Presiding Officer or any Member of the Internal Committee, — (a) contravenes the provisions of section 16; or (b) has been convicted for an offence or an inquiry into an offence under any law for the time being in force is pending against him; or (c) he has been found guilty in any disciplinary proceedings or a disciplinary proceeding is pending against him; or (d) has so abused his position as to render his continuance in office prejudicial to the public interest, such Presiding Officer or Member, as the case may be, shall be removed from the Committee and the vacancy so created or any casual vacancy shall be filled by fresh nomination in accordance with the provisions of this section. CHAPTER III CONSTITUTION OF LOCAL COMPLAINTS COMMITTEE **5.** **Notification of District Officer.—The appropriate Government may notify a District Magistrate** or Additional District Magistrate or the Collector or Deputy Collector as a District Officer for every District to exercise powers or discharge functions under this Act. **6.** **Constitution and jurisdiction of** [1][Local Committee].—(1) Every District Officer shall constitute in the district concerned, a committee to be known as the “[1][Local Committee]” to receive complaints of 1. Subs. by Act 23 of 2016, s. 3 and the Second Schedule, for “Local Complaints Committee” (w.e.f. 6-5-2016). 6 ----- sexual harassment from establishments where the [1][Internal Committee] has not been constituted due to having less than ten workers or if the complaint is against the employer himself. (2) The District Officer shall designate one nodal officer in every block, taluka and tehsil in rural or tribal area and ward or municipality in the urban area, to receive complaints and forward the same to the concerned [2][Local Committee] within a period of seven days. (3) The jurisdiction of the [2][Local Committee] shall extend to the areas of the district where it is constituted. **7.** **Composition, tenure and other terms and conditions of** **[2][Local Committee].—(1) The [2][Local** Committee] shall consist of the following members to be nominated by the District Officer, namely: — (a) a Chairperson to be nominated from amongst the eminent women in the field of social work and committed to the cause of women; (b) one Member to be nominated from amongst the women working in block, taluka or tehsil or ward or municipality in the district; (c) two Members, of whom at least one shall be a woman, to be nominated from amongst such non-governmental organisations or associations committed to the cause of women or a person familiar with the issues relating to sexual harassment, which may be prescribed: Provided that at least one of the nominees should, preferably, have a background in law or legal knowledge: Provided further that at least one of the nominees shall be a woman belonging to the Scheduled Castes or the Scheduled Tribes or the Other Backward Classes or minority community notified by the Central Government, from time to time; (d) the concerned officer dealing with the social welfare or women and child development in the district, shall be a member ex officio. (2) The Chairperson and every Member of the Local Committee shall hold office for such period, not exceeding three years, form the date of their appointment as may be specified by the District Officer. (3) Where the Chairperson or any Member of the [2][Local Committee]— (a) contravenes the provisions of section 16; or (b) has been convicted for an offence or an inquiry into an offence under any law for the time being in force is pending against him; or (c) has been found guilty in any disciplinary proceedings or a disciplinary proceeding is pending against him; or (d) has so abused his position as to render his continuance in office prejudicial to the public interest, such Chairperson or Member, as the case may be, shall be removed from the Committee and the vacancy so created or any casual vacancy shall be filled by fresh nomination in accordance with the provisions of this section. (4) The Chairperson or Members of the Local Committee other than the Members nominated under clauses (b) and (d) of sub-section (1) shall be entitled to such fees or allowances for holding the proceedings of the Local Committee as may be prescribed. **8.** **Grants and audit.—(1) The Central Government may, after due appropriation made by Parliament** by law in this behalf, make to the State Government grants of such sums of money as the Central 1. Subs. by Act 23 of 2016, s. 3 and the Second Schedule, for “Internal Complaints Committee” (w.e.f. 6-5-2016). 2. Subs. by s. 3 and the Second Schedule, ibid., for “Local Complaints Committee” (w.e.f. 6-5-2016). 7 ----- Government my think fit, for being utilised for the payment of fees or allowances referred to in subsection (4) of section 7. (2) The State Government may set up an agency and transfer the grants made under sub-section (1) to that agency. (3) The agency shall pay to the District Officer, such sums as may be required for the payment of fees or allowances referred to in sub-section (4) of section 7. (4) The accounts of the agency referred to in sub-section (2) shall be maintained and audited in such manner as may, in consultation with the Accountant General of the State, be prescribed and the person holding the custody of the accounts of the agency shall furnish, to the State Government, before such date, as may be prescribed, its audited copy of accounts together with auditors’ report thereon. CHAPTER IV COMPLAINT **9.** **Complaint of sexual harassment.—(1) Any aggrieved woman may make, in writing, a complaint** of sexual harassment at workplace to the Internal Committee if so constituted, or the Local Committee, in case it is not so constituted, within a period of three months from the date of incident and in case of a series of incidents, within a period of three months from the date of last incident: Provided that where such complaint cannot be made in writing, the Presiding Officer or any Member of the Internal Committee or the Chairperson or any Member of the Local Committee, as the case may be, shall render all reasonable assistance to the woman for making the complaint in writing: Provided further that the Internal Committee or, as the case may be, the Local Committee may, for the reasons to be recorded in writing, extend the time limit not exceeding three months, if it is satisfied that the circumstances were such which prevented the woman from filing a complaint within the said period. (2) Where the aggrieved woman is unable to make a complaint on account of her physical or mental incapacity or death or otherwise, her legal heir or such other person as may be prescribed may make a complaint under this section. **10.** **Conciliation.—(1)** The Internal Committee or, as the case may be, the Local Committee, may, before initiating an inquiry under section 11 and at the request of the aggrieved woman take steps to settle the matter between her and the respondent through conciliation: Provided that no monetary settlement shall be made as a basis of conciliation. (2) Where settlement has been arrived at under sub-section (1), the Internal Committee or the Local Committee, as the case may be, shall record the settlement so arrived and forward the same to the employer or the District Officer to take action as specified in the recommendation. (3) The Internal Committee or the Local Committee, as the case may be, shall provide the copies of the settlement as recorded under sub-section (2) to the aggrieved woman and the respondent. (4) Where a settlement is arrived at under sub-section (1), no further inquiry shall be conducted by the Internal Committee or the Local Committee, as the case may be. **11.** **Inquiry into complaint.— (1)** Subject to the provisions of section 10, the Internal Committee or the Local Committee, as the case may be, shall, where the respondent is an employee, proceed to make inquiry into the complaint in accordance with the provisions of the service rules applicable to the respondent and where no such rules exist, in such manner as may be prescribed or in case of a domestic worker, the Local Committee shall, if prima facie case exist, forward the complaint to the police, within a period of seven days for registering the case under section 509 of the Indian Penal Code (45 of 1860), and any other relevant provisions of the said Code where applicable: 8 ----- Provided that where the aggrieved woman informs the Internal Committee or the Local Committee, as the case may be, that any term or condition of the settlement arrived at under sub-section (2) of section 10 has not been complied with by the respondent, the Internal Committee or the Local Committee shall proceed to make an inquiry into the complaint or, as the case may be, forward the complaint to the police: Provided further that where both the parties are employees, the parties shall, during the course of inquiry, be given an opportunity of being heard and a copy of the findings shall be made available to both the parties enabling them to make representation against the findings before the Committee. (2) Notwithstanding anything contained in section 509 of the Indian Penal Code (45 of 1860), the court may, when the respondent is convicted of the offence, order payment of such sums as it may consider appropriate, to the aggrieved woman by the respondent, having regard to the provisions of section 15. (3) For the purpose of making an inquiry under sub-section (1), the Internal Committee or the Local Committee, as the case may be, shall have the same powers as are vested in a civil court the Code of Civil Procedure, 1908 (5 of 1908) when trying a suit in respect of the following matters, namely:— (a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of documents; and (c) any other matter which may be prescribed. (4) The inquiry under sub-section (1) shall be completed within a period of ninety days. CHAPTER V INQUIRY INTO COMPLAINT **12. Action during pendency of inquiry.—(1) During the pendency of an inquiry on a written** request made by the aggrieved woman, the Internal Committee or the local Committee, as the case may be, may recommend to the employer to— (a) transfer the aggrieved woman or the respondent to any other workplace; or (b) grant leave to the aggrieved woman up to a period of three months; or (c) grant such other relief to the aggrieved woman a may be prescribed. (2) The leave granted to the aggrieved woman under this section shall be in addition to the leave she would be otherwise entitled. (3) On the recommendation of the Internal Committee or the Local Committee, as the case may be, under sub-section (1), the employer shall implement the recommendations made under sub-section (1) and send the report of such implementation to the Internal Committee or the Local Committee, as the case may be. **13. Inquiry report.—(1)** On the completion of an inquiry under this Act, the Internal Committee or the Local Committee, as the case may be, shall provide a report of its findings to the employer, or as the case may be, the District Officer within a period of ten days from the date of completion of the inquiry and such report be made available to the concerned parties. (2) Where the Internal Committee or the Local Committee, as the case may be, arrives at the conclusion that the allegation against the respondent has not been proved, it shall recommend to the employer and the District Officer that no action is required to be taken in the matter. 9 ----- (3) Where the Internal Committee or the Local Committee, as the case may be, arrives at the conclusion that the allegation against the respondent has been proved, it shall recommend to the employer or the District Officer, as the case may be— (i) to take action for sexual harassment as a misconduct in accordance with the provisions of the service rules applicable to the respondent or where no such service rules have been made, in such manner as may be prescribed; (ii) to deduct, notwithstanding anything in the service rules applicable to the respondent, from the salary or wages of the respondent such sum as it may consider appropriate to be paid to the aggrieved woman or to her legal heirs, as it may determine, in accordance with the provisions of section 15: Provide that in case the employer is unable to make such deduction from the salary of the respondent due to his being absent from duty or cessation of employment it may direct to the respondent to pay such sum to the aggrieved woman: Provided further that in case the respondent fails to pay the sum referred to in clause (ii), the Internal Committee or as, the case may be, the Local Committee may forward the order for recovery of the sum as an arrear of land revenue to the concerned District Officer. (4) The employer or the District Officer shall act upon the recommendation within sixty days of its receipt by him. **14. Punishment for false or malicious complaint and false evidence.—(1)** Where the Internal Committee or the Local Committee, as the case may be, arrives at a conclusion that the allegation against the respondent is malicious or the aggrieved woman or any other person making the complaint has made the complaint knowing it to be false or the aggrieved woman or any other person making the complaint has produced any forged or misleading document, it may recommend to the employer or the District Officer, as the case may be, to take action against the woman or the person who has made the complaint under sub-section (1) or sub-section (2) of section 9, as the case may be, in accordance with the provisions of the service rules applicable to her or him or where no such service rules exist, in such manner as may be prescribed: Provided that a mere inability to substantiate a complaint or provide adequate proof need not attract action against the complainant under this section: Provided further that the malicious intent on part of the complainant shall be established after an inquiry in accordance with the procedure prescribed, before any action is recommended. (2) Where the Internal Committee or the Local Committee, as the case may be, arrives at a conclusion that during the inquiry any witness has given false evidence or produced any forged or misleading document, it may recommend to the employer of the witness or the District Officer, as the case may be, to take action in accordance with the provisions of the service rules applicable to the said witness or where no such service rules exist, in such manner as may be prescribed. **15. Determination of compensation.—For the purpose of determining the sums to be paid to the** aggrieved woman under clause (ii) of sub-section (3) of section 13, the Internal Committee or the Local Committee, as the case may be, shall have regard to— (a) the mental trauma, pain, suffering and emotional distress caused to the aggrieved woman; (b) the loss in the career opportunity due to the incident of sexual harassment; (c) medical expenses incurred by the victim for physical or psychiatric treatment; (d) the income and financial status of the respondent; (e) feasibility of such payment in lump sum or in instalments. 10 ----- **16. Prohibition of publication or making known contents of complaint and inquiry** **proceedings.—Notwithstanding anything contained in the Right to Information Act, 2005 (22 of 2005),** the contents of the complaint made under section 9, the identity and addresses of the aggrieved woman, respondent and witnesses, any information relating to conciliation and inquiry proceedings, recommendations of the Internal Committee or the Local Committee, as the case may be, and the action taken by the employer or the District Officer under the provisions of this Act shall not be published, communicated or made known to the public, press and media in any manner: Provided that information may be disseminated regarding the justice secured to any vicitim of sexual harassment under this Act without disclosing the name, address, identity or any other particulars calculated to lead to the identification of the aggrieved woman and witnesses. **17. Penalty for publication or making known contents of complaint and inquiry proceedings.—** Where any person entrusted with the duty to handle or deal with the complaint, inquiry or any recommendations or action to be taken under the provisions of this Act, contravenes the provisions of section 16, he shall be liable for penalty in accordance with the provisions of the service rules applicable to the said person or where no such service rules exist, in such manner as may be prescribed. **18. Appeal.—(1)** Any person aggrieved from the recommendations made under sub-section (2) of section 13 or under clause (i) or clause (ii) of sub-section (3) of section 13 or sub-section (1) or subsection (2) of section 14 or section 17 or non-implementation of such recommendations may prefer an appeal to the court or tribunal in accordance with the provisions of the service rules applicable to the said person or where no such service rules exist then, without prejudice to provisions contained in any other law for the time being in force, the person aggrieved may prefer an appeal in such manner as may be prescribed. (2) The appeal under sub-section (1) shall be preferred within a period of ninety days of the recommendations. CHAPTER VI DUTIES OF EMPLOYER **19. Duties of employer.— Every employer shall—** (a) provide a safe working environment at the workplace with shall include safety from the persons coming into contact at the workplace; (b) display at any conspicuous place in the workplace, the penal consequences of sexual harassments; and the order constituting, the Internal Committee under sub-section (1) of section 4; (c) organise workshops and awareness programmes at regular intervals for sensitising the employees with the provisions of the Act and orientation programmes for the members of the Internal Committee in the manner as may be prescribed; (d) provide necessary facilities to the Internal Committee or the Local Committee, as the case may be, for dealing with the complaint and conducting an inquiry; (e) assist in securing the attendance of respondent and witnesses before the Internal Committee or the Local Committee, as the case may be; (f) make available such information to the Internal Committee or the Local Committee, as the case be, as it may require having regard to the complaint made under sub-section (1) of section 9; (g) provide assistance to the woman if she so chooses to file a complaint in relation to the offence under the Indian Penal Code (45 of 1860) or any other law for the time being in force; (h) cause to initiate action, under the Indian Penal Code (45 of 1860) or any other law for the time being in force, against the perpetrator, or if the aggrieved woman so desires, where the perpetrator is not an employee, in the workplace at which the incident of sexual harassment took place; 11 ----- (i) treat sexual harassment as a misconduct under the service rules and initiate action for such misconduct; (j) monitor the timely submission of reports by the Internal Committee. CHAPTER VII DUTIES AND POWERS OF DISTRICT OFFICER **20. Duties and powers of District Officer.—The District Officer shall, —** (a) monitor the timely submission of report furnished by the Local Committee; (b) take such measures as may be necessary for engaging non-governmental organisations for creation of awareness on sexual harassment and the rights of the women. CHAPTER VIII MISCELLANEOUS **21. Committee to submit annual report.—** (1) The Internal Committee or the Local Committee, as the case may be, shall in each calendar year prepare, in such form and at such time as may be prescribed, an annual report and submit the same to the employer and the District Officer. (2) The District Officer shall forward a brief report on the annual reports received under sub-section (1) to the State Government. **22. Employer to include information in annual report.—The employer shall include in its report** the number of cases filed, if any, and their disposal under this Act in the annual report of his organisation or where no such report is required to be prepared, intimate such number of cases, if any, to the District Officer. **23. Appropriate Government to monitor implementation and maintain data.—The appropriate** Government shall monitor the implementation of this Act and maintain date on the number of cases filed and disposed of in respect of all cases of sexual harassment at workplace. **24. Appropriate Government to take measures to publicise the Act.—The appropriate** Government may, subject to the availability of financial and other resources, — (a) develop relevant information, education, communication and training materials, and organise awareness programmes, to advance the understanding of the public of the provisions of this Act providing for protection against sexual harassment of woman at workplace; (b) formulate orientation and training programmes for the members of the [1][Local Committee]. **25. Power to call for information and inspection of records.—(1) The appropriate Government, on** being satisfied that it is necessary in the public interest or in the interest of women employees at a workplace to do so, by order in writing,— (a) call upon any employer or District Officer to furnish in writing such information relating to sexual harassment as it may require; (b) authorise any officer to make inspection of the records and workplace in relation to sexual harassment, who shall submit a report of such inspection to it within such period as may be specified in the order. (2) Every employer and District Officer shall produce on demand before the officer making the inspection all information, records and other documents in his custody having a bearing on the subject matter of such inspection. **26. Penalty for non-compliance with provisions of Act.—(1) Where the employer fails to—** (a) constitute an Internal Committee under sub-section (1) of section 4; 1. Subs. by Act 23 of 2016, s. 3 and the Second Schedule, for “Local Complaints Committee” (w.e.f. 6-5-2016). 12 ----- (b) take action under sections 13, 14 and 22; and (c) contravenes or attempts to contravene or abets contravention of other provisions of this Act or any rules made thereunder, he shall be punishable with fine which may extend to fifty thousand rupees. (2) If any employer, after having been previously convicted of an offence punishable under this Act subsequently commits and is convicted of the same offence, he shall be liable to— (i) twice the punishment, which might have been imposed on a first conviction, subject to the punishment being maximum provided for the same offence: Provided that in case a higher punishment is prescribed under any other law for the time being in force, for the offence for which the accused is being prosecuted, the court shall take due cognizance of the same while awarding the punishment; (ii) cancellation, of his licence or withdrawal, or non-renewal, or approval, or cancellation of the registration, as the case may be, by the Government or local authority required for carrying on his business or activity. **27. Cognizance of offence by courts.—(1)** No court shall take cognizance of any offence punishable under this Act or any rules made thereunder, save on a complaint made by the aggrieved woman or any person authorised by the Internal Committee or Local Committee in this behalf. (2) No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence punishable under this Act. (3) Every offence under this Act shall be non-cognizable. **28. Act not in derogation of any other law.—The provisions of this Act shall be in addition to and** not in derogation of the provisions of any other law for the time being in force. **29. Power of appropriate Government to make rules.—(1) The Central Government may, by** notification in the Official Gazette, make rules for carrying out the provisions of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the fees or allowances to be paid to the Members under sub-section (4) of section 4; (b) nomination of members under clause (c) of sub-section (1) of section 7; (c) the fees or allowances to be paid to the Chairperson, and Members under sub-section (4) of section 7; (d) the person who may make complaint under sub-section (2) of section 9; (e) the manner of inquiry under sub-section (1) of section 11; (f) the powers for making an inquiry under clause (c) of sub-section (2) of section 11; (g) the relief to be recommended under clause (c) of sub-section (1) of section 12; (h) the manner of action to be taken under clause (i) of sub-section (3) of section 13; (i) the manner of action to be taken under sub-sections (1) and (2) of section 14; (j) the manner of action to be taken under section 17; (k) the manner of appeal under sub-section (1) of section 18; 13 ----- (l) the manner of organising workshops, awareness programmes for sensitising the employees and orientation programmes for the members of the Internal Committee under clause (c) of section 19; and (m) the form and time for preparation of annual report by Internal Committee and the Local Committee under sub-section (1) of section 21. (3) Every rule made by the Central Government under this Act shall be laid as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. (4) Any rule made under sub-section (4) of section 8 by the State Government shall be laid, as soon as may be after it is made, before each House of the State Legislature where it consists of two Houses, or where such Legislature consists of one House, before that House. **30. Power to remove difficulties.— (1)** If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as may appear to it to be necessary for removing the difficulty: Provided that no such order shall be made under this section after the expiry of a period of two years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. 14 -----

29-Aug-2013

18

The Companies Act, 2013

https://www.indiacode.nic.in/bitstream/123456789/2114/5/A2013-18.pdf

central

## THE COMPANIES ACT, 2013 __________________ ## ARRANGEMENT OF SECTIONS ___________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent, commencement and application. 2. Definitions. CHAPTER II INCORPORATION OF COMPANY AND MATTERS INCIDENTAL THERETO 3. Formation of company. 3A. Members severally liable in certain cases. 4. Memorandum. 5. Articles. 6. Act to override memorandum, articles, etc. 7. Incorporation of company. 8. Formation of companies with charitable objects, etc. 9. Effect of registration. 10. Effect of memorandum and articles. 10A. Commencement of business, etc. 11. [Omitted.]. 12. Registered office of company. 13. Alteration of memorandum. 14. Alteration of articles. 15. Alteration of memorandum or articles to be noted in every copy. 16. Rectification of name of company. 17. Copies of memorandum, articles, etc., to be given to members. 18. Conversion of companies already registered. 19. Subsidiary company not to hold shares in its holding company. 20. Service of documents. 21. Authentication of documents, proceedings and contracts. 22. Execution of bills of exchange, etc. CHAPTER III PROSPECTUS AND ALLOTMENT OF SECURITIES PART I.—Public offer 23. Public offer and private placement. 24. Power of Securities and Exchange Board to regulate issue and transfer of securities, etc. 25. Document containing offer of securities for sale to be deemed prospectus. 26. Matters to be stated in prospectus. 27. Variation in terms of contract or objects in prospectus. 28. Offer of sale of shares by certain members of company. 29. Public offer of securities to be in dematerialised form. 30. Advertisement of prospectus. 31. Shelf prospectus. 32. Red herring prospectus. 33. Issue of application forms for securities. 34. Criminal liability for mis-statements in prospectus. 35. Civil liability for mis-statements in prospectus. 1 ----- SECTIONS 36. Punishment for fraudulently inducing persons to invest money. 37. Action by affected persons. 38. Punishment for personation for acquisition, etc., of securities. 39. Allotment of securities by company. 40. Securities to be dealt with in stock exchanges. 41. Global depository receipt. PART II.—Private placement 42. Issue of shares on private placement basis. CHAPTER IV SHARE CAPITAL AND DEBENTURES 43. Kinds of share capital. 44. Nature of shares or debentures. 45. Numbering of shares. 46. Certificate of shares. 47. Voting rights. 48. Variation of shareholders’ rights. 49. Calls on shares of same class to be made on uniform basis. 50. Company to accept unpaid share capital, although not called up. 51. Payment of dividend in proportion to amount paid-up. 52. Application of premiums received on issue of shares. 53. Prohibition on issue of shares at discount. 54. Issues of sweat equity shares. 55. Issue and redemption of preference shares. 56. Transfer and transmission of securities. 57. Punishment for personation of shareholder. 58. Refusal of registration and appeal against refusal. 59. Rectification of register of members. 60. Publication of authorised, subscribed and paid-up capital. 61. Power of limited company to alter its share capital. 62. Further issue of share capital. 63. Issue of bonus shares. 64. Notice to be given to Registrar for alteration of share capital. 65. Unlimited company to provide for reserve share capital on conversion into limited company. 66. Reduction of share capital. 67. Restrictions on purchase by company or giving of loans by it for purchase of its shares. 68. Power of company to purchase its own securities. 69. Transfer of certain sums to capital redemption reserve account. 70. Prohibition for buy-back in certain circumstances. 71. Debentures. 72. Power to nominate. CHAPTERV ACCEPTANCE OF DEPOSITS BY COMPANIES 73. Prohibition on acceptance of deposits from public. 74. Repayment of deposits, etc., accepted before commencement of this Act. 75. Damages for fraud. 2 ----- SECTIONS 76. Acceptance of deposits from public by certain companies. 76A. Punishment for contravention of section 73 or section 76. CHAPTER VI REGISTRATION OF CHARGES 77. Duty to register charges, etc. 78. Application for registration of charge. 79. Section 77 to apply in certain matters. 80. Date of notice of charge. 81. Register of charges to be kept by Registrar. 82. Company to report satisfaction of charge. 83. Power of Registrar to make entries of satisfaction and release in absence of intimation from company. 84. Intimation of appointment of receiver or manager. 85. Company’s register of charges. 86. Punishment for contravention. 87. Rectification by Central Government in Register of charges. CHAPTER VII MANAGEMENT AND ADMINISTRATION 88. Register of members, etc. 89. Declaration in respect of beneficial interest in any share. 90. Register of significant beneficial owners in a Company. 91. Power to close register of members or debenture holders or other security holders. 92. Annual return. 93. [Omitted.]. 94. Place of keeping and inspection of registers, returns, etc. 95. Registers, etc., to be evidence. 96. Annual general meeting. 97. Power of Tribunal to call annual general meeting. 98. Power of Tribunal to call meetings of members, etc. 99. Punishment for default in complying with provisions of sections 96 to 98. 100. Calling of extraordinary general meeting. 101. Notice of meeting. 102. Statement to be annexed to notice. 103. Quorum for meetings. 104. Chairman of meetings. 105. Proxies. 106. Restriction on voting rights. 107. Voting by show of hands. 108. Voting through electronic means. 109. Demand for poll. 110. Postal ballot. 111. Circulation of members’ resolution. 112. Representation of President and Governors in meetings. 113. Representation of corporations at meeting of companies and of creditors. 114. Ordinary and special resolutions. 115. Resolutions requiring special notice. 116. Resolutions passed at adjourned meeting. 117. Resolutions and agreements to be filed. 3 ----- ## SECTIONS 118. Minutes of proceedings of general meeting, meeting of Board of Directors and other meeting and resolutions passed by postal ballot. 119. Inspection of minute-books of general meeting. 120. Maintenance and inspection of documents in electronic form. 121. Report on annual general meeting. 122. Applicability of this Chapter to One Person Company. CHAPTER VIII DECLARATION AND PAYMENT OF DIVIDEND 123. Declaration of dividend. 124. Unpaid Dividend Account. 125. Investor Education and Protection Fund. 126. Right to dividend, rights shares and bonus shares to be held in abeyance pending registration of transfer of shares. 127. Punishment for failure to distribute dividends. CHAPTER IX ACCOUNTS OF COMPANIES 128. Books of account, etc., to be kept by company. 129. Financial statement. 129A. Periodical financial results. 130. Re-opening of accounts on court’s or Tribunal’s orders. 131. Voluntary revision of financial statements or Board’s report. 132. Constitution of National Financial Reporting Authority. 133. Central Government to prescribe accounting standards 134. Financial statement, Board’s report, etc. 135. Corporate Social Responsibility. 136. Right of member to copies of audited financial statement. 137. Copy of financial statement to be filed with Registrar. 138. Internal Audit. CHAPTER X AUDIT AND AUDITORS 139. Appointment of auditors. 140. Removal, resignation of auditor and giving of special notice. 141. Eligibility, qualifications and disqualifications of auditors. 142. Remuneration of auditors. 143. Powers and duties of auditors and auditing standards. 144. Auditor not to render certain services. 145. Auditor to sign audit reports, etc. 146. Auditors to attend general meeting. 147. Punishment for contravention. 148. Central Government to specify audit of items of cost in respect of certain companies. CHAPTER XI APPOINTMENT AND QUALIFICATIONS OF DIRECTORS 149. Company to have Board of Directors. 4 ----- SECTIONS 150. Manner of selection of independent directors and maintenance of data bank of independent directors. 151. Appointment of director elected by small shareholders. 152. Appointment of directors. 153. Application for allotment of Director Identification Number. 154. Allotment of Director Identification Number. 155. Prohibition to obtain more than one Director Identification Number. 156. Director to intimate Director Identification Number. 157. Company to inform Director Identification Number to Registrar. 158. Obligation to indicate Director Identification Number. 159. Penalty for default of certain provisions. 160. Right of persons other than retiring directors to stand for directorship. 161. Appointment of additional director, alternate director and nominee director. 162. Appointment of directors to be voted individually. 163. Option to adopt principle of proportional representation for appointment of directors. 164. Disqualifications for appointment of director. 165. Number of directorships. 166. Duties of directors. 167. Vacation of office of director. 168. Resignation of director. 169. Removal of directors. 170. Register of directors and key managerial personnel and their shareholding. 171. Members’ right to inspect. 172. Penalty. CHAPTER XII MEETINGS OF BOARD AND ITS POWERS 173. Meetings of Board. 174. Quorum for meetings of Board. 175. Passing of resolution by circulation. 176. Defects in appointment of directors not to invalidate actions taken. 177. Audit committee. 178. Nomination and Remuneration Committee and Stakeholders Relationship Committee. 179. Powers of Board. 180. Restrictions on powers of Board. 181. Company to contribute to bona fide and charitable funds, etc. 182. Prohibitions and restrictions regarding political contributions. 183. Power of Board and other persons to make contributions to national defence fund, etc. 184. Disclosure of interest by director. 185. Loan to directors, etc. 186. Loan and investment by company. 187. Investments of company to be held in its own name. 188. Related party transactions. 189. Register of contracts or arrangements in which directors are interested. 190. Contract of employment with managing or whole-time directors. 191. Payment to director for loss of office, etc., in connection with transfer of undertaking, property or shares. 192. Restriction on non-cash transactions involving directors. 193. Contract by One Person Company. 194. [Omitted.]. 195. [Omitted.]. 5 ----- CHAPTER XIII APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL SECTIONS 196. Appointment of managing director, whole-time director or manager. 197. Overall maximum managerial remuneration and managerial remuneration in case of absence or inadequacy of profits. 198. Calculation of profits. 199. Recovery of remuneration in certain cases. 200. Central Government or company to fix limit with regard to remuneration. 201. Forms of, and procedure in relation to, certain applications. 202. Compensation for loss of office of managing or whole-time director or manager. 203. Appointment of key managerial personnel. 204. Secretarial audit for bigger companies. 205. Functions of company secretary. CHAPTER XIV INSPECTION, INQUIRY AND INVESTIGATION 206. Power to call for information, inspect books and conduct inquiries. 207. Conduct of inspection and inquiry. 208. Report on inspection made. 209. Search and seizure. 210. Investigation into affairs of company. 211. Establishment of Serious Fraud Investigation Office. 212. Investigation into affairs of company by Serious Fraud Investigation Office. 213. Investigation into company’s affairs in other cases. 214. Security for payment of costs and expenses of investigation. 215. Firm, body corporate or association not to be appointed as inspector. 216. Investigation of ownership of company. 217. Procedure, powers, etc., of inspectors. 218. Protection of employees during investigation. 219. Power of inspector to conduct investigation into affairs of related companies, etc. 220. Seizure of documents by inspector. 221. Freezing of assets of company on inquiry and investigation. 222. Imposition of restrictions upon securities. 223. Inspector’s report. 224. Actions to be taken in pursuance of inspector’s report. 225. Expenses of investigation. 226. Voluntary winding up of company, etc., not to stop investigation proceedings. 227. Legal advisers and bankers not to disclose certain information. 228. Investigation, etc., of foreign companies. 229. Penalty for furnishing false statement, mutilation, destruction of documents. CHAPTER XV COMPROMISES, ARRANGEMENTS AND AMALGAMATIONS 230. Power to compromise or make arrangements with creditors and members. 231. Power to Tribunal to enforce compromise or arrangement. 232. Merger and amalgamation of companies. 233. Merger or amalgamation of certain companies. 234. Merger or amalgamation of company with foreign company. 6 ----- SECTIONS 235. Power to acquire shares of shareholders dissenting from scheme or contract approved by majority. 236. Purchase of minority shareholding. 237. Power of Central Government to provide for amalgamation of companies in public interest. 238. Registration of offer of schemes involving transfer of shares. 239. Preservation of books and papers of amalgamated companies. 240. Liability of officers in respect of offences committed prior to merger, amalgamation, etc. CHAPTER XVI PREVENTION OF OPPRESSION AND MISMANAGEMENT 241. Application to Tribunal for relief in cases of oppression, etc. 242. Powers of Tribunal. 243. Consequence of termination or modification of certain agreements. 244. Right to apply under section 241. 245. Class action. 246. Application of certain provisions to proceedings under section 241 or section 245. CHAPTER XVII REGISTERED VALUERS 247. Valuation by registered valuers. CHAPTER XVIII REMOVAL OF NAMES OF COMPANIES FROM THE REGISTER OF COMPANIES 248. Power of Registrar to remove name of company from register of companies. 249. Restrictions on making application under section 248 in certain situations. 250. Effect of company notified as dissolved. 251. Fraudulent application for removal of name. 252. Appeal to Tribunal. CHAPTER XIX REVIVAL AND REHABILITATION OF SICK COMPANIES 253. [Omitted.]. 254. [Omitted.]. 255. [Omitted.]. 256. [Omitted.]. 257. [Omitted.]. 258. [Omitted.]. 259. [Omitted.]. 260. [Omitted.]. 261. [Omitted.]. 262. [Omitted.]. 263. [Omitted.]. 264. [Omitted.]. 265. [Omitted.]. 266. [Omitted.]. 267. [Omitted.]. 268. [Omitted.]. 269. [Omitted.]. 7 ----- CHAPTER XX WINDING UP SECTIONS 270. Winding up by Tribunal. PART I.—Winding up by the Tribunal 271. Circumstances in which company may be wound up by Tribunal. 272. Petition for winding up. 273. Powers of Tribunal. 274. Directions for filing statement of affairs. 275. Company Liquidators and their appointments. 276. Removal and replacement of liquidator. 277. Intimation to Company Liquidator, provisional liquidator and Registrar. 278. Effect of winding up order. 279. Stay of suits, etc., on winding up order. 280. Jurisdiction of Tribunal. 281. Submission of report by Company Liquidator. 282. Directions of Tribunal on report of Company Liquidator. 283. Custody of company’s properties. 284. Promoters, directors, etc., to cooperate with Company Liquidator. 285. Settlement of list of contributories and application of assets. 286. Obligations of directors and managers. 287. Advisory Committee. 288. Submission of periodical reports to Tribunal. 289. [Omitted.] 290. Powers and duties of Company Liquidator. 291. Provision for professional assistance to Company Liquidator. 292. Exercise and control of Company Liquidator’s powers. 293. Books to be kept by Company Liquidator. 294. Audit of Company Liquidator’s accounts. 295. Payment of debts by contributory and extent of set-off. 296. Power of Tribunal to make calls. 297. Adjustment of rights of contributories. 298. Power to order costs. 299. Power to summon persons suspected of having property of company, etc. 300. Power to order examination of promoters, directors, etc. 301. Arrest of person trying to leave India or abscond. 302. Dissolution of company by Tribunal. 303. Appeals from orders made before commencement of Act. [Omitted.]. 304. [Omitted.]. 305. [Omitted.]. 306. [Omitted.]. 307. [Omitted.]. 308. [Omitted.]. 309. [Omitted.]. 310. [Omitted.]. 311. [Omitted.]. 312. [Omitted.]. 313. [Omitted.]. 8 ----- SECTIONS 314. [Omitted.]. 315. [Omitted.]. 316. [Omitted.]. 317. [Omitted.]. 318. [Omitted.]. 319. [Omitted.]. 320. [Omitted.]. 321. [Omitted.]. 322. [Omitted.]. 323. [Omitted.]. PART III.—Provisions applicable to every mode of winding up 324. Debts of all descriptions to be admitted to proof. 325. [Omitted.] 326. Overriding preferential payments. 327. Preferential payments. 328. Fraudulent preference. 329. Transfers not in good faith to be void. 330. Certain transfers to be void. 331. Liabilities and rights of certain persons fraudulently preferred. 332. Effect of floating charge. 333. Disclaimer of onerous property. 334. Transfers, etc., after commencement of winding up to be void. 335. Certain attachments, executions, etc., in winding up by Tribunal to be void. 336. Offences by officers of companies in liquidation. 337. Penalty for frauds by officers. 338. Liability where proper accounts not kept. 339. Liability for fraudulent conduct of business. 340. Power of Tribunal to assess damages against delinquent directors, etc. 341. Liability under sections 339 and 340 to extend to partners or directors in firms or companies. 342. Prosecution of delinquent officers and members of company. 343. Company Liquidator to exercise certain powers subject to sanction. 344. Statement that company is in liquidation. 345. Books and papers of company to be evidence. 346. Inspection of books and papers by creditors and contributories. 347. Disposal of books and papers of company. 348. Information as to pending liquidations. 349. Official Liquidator to make payments into public account of India. 350. Company Liquidator to deposit monies into scheduled bank. 351. Liquidator not to deposit monies into private banking account. 352. Company Liquidation Dividend and Undistributed Assets Account. 353. Liquidator to make returns, etc. 354. Meetings to ascertain wishes of creditors or contributories. 355. Court, tribunal or person, etc., before whom affidavit may be sworn. 356. Power of Tribunal to declare dissolution of company void. 357. Commencement of winding up by Tribunal. 358. Exclusion of certain time in computing period of limitation. 9 ----- PART IV.—Official Liquidators SECTIONS 359. Appointment of Official Liquidator. 360. Powers and functions of Official Liquidator. 361. Summary procedure for liquidation. 362. Sale of assets and recovery of debts due to company. 363. Settlement of claims of creditors by Official Liquidator. 364. Appeal by creditor. 365. Order of dissolution of company. CHAPTER XXI PARTI.—Companies authorised to Register under this Act 366. Companies capable of being registered. 367. Certificate of registration of existing companies. 368. Vesting of property on registration. 369. Saving of existing liabilities. 370. Continuation of pending legal proceedings. 371. Effect of registration under this Part. 372. Power of Court to stay or restrain proceedings. 373. Suits stayed on winding up order. 374. Obligations of companies registering under this Part. PART II.—Winding up of unregistered companies 375. Winding up of unregistered companies. 376. Power to wind up foreign companies although dissolved. 377. Provisions of Chapter cumulative. 378. Saving and construction of enactments conferring power to wind up partnership firm, association or company, etc., in certain cases. CHAPTER XXIA PRODUCER COMPANIES PART I PRELIMINARY 378A. Definitions. PART II INCORPORATION OF PRODUCER COMPANIES AND OTHER MATTERS 378B. Objects of producer company. 378C. Formation of Producer Company and its registration. 378D. Membership and voting rights of Members of Producer Company. 378E. Benefits to Members. 378F. Memorandum of Producer Company. 378G.Articles of association. 378H. Amendment of memorandum. 378-I. Amendment of articles. 378J. Option to inter-State co-operative societies to become Producer Companies. 10 ----- SECTIONS 378K. Effect of incorporation of Producer Company. 378L.Vesting of undertaking in Producer Company. 378M. Concession, etc., to be deemed to have been granted to Producer Company. 378N. Provisions in respect of officers and other employees of inter-State co-operative society. PART III MANAGEMENT OF PRODUCER COMPANY 378-O. Number of directors. 378P. Appointment of directors. 378Q. Vacation of office by directors. 378R. Powers and functions of Board. 378S. Matters to be transacted at general meeting. 378T. Liability of directors. 378U. Committee of directors. 378V. Meetings of Board and quorum. 378W. Chief Executive and his functions. 378X. Secretary of Producer Company. 378Y. Quorum. 378Z. Voting rights. PART IV GENERAL MEETINGS 378ZA. Annual general meetings. PART V SHARE CAPITAL AND MEMBERS RIGHTS 378ZB. Share capital. 378ZC. Special user rights. 378ZD. Transferability of shares and attendant rights. PART VI FINANCE, ACCOUNTS AND AUDIT 378ZE. Books of account. 378ZF. Internal audit. 378ZG. Duties of auditor under this Chapter. 378ZH.Donation or subscription by Producer Company. 378Z-I. General and other reserves. 378ZJ. Issue of bonus shares. 11 ----- SECTIONS PART VII LOANS TO MEMBERS AND INVESTMENTS 378ZK. Loan, etc., to Members. 378ZL. Investment in other companies, formation of subsidiaries, etc. PART VIII PENALTIES 378ZM. Penalty for contravention. PART IX AMALGAMATION, MERGER OR DIVISION 378ZN. Amalgamation, merger or division, etc., to form new Producer Companies. PART X RESOLUTION OF DISPUTES 378Z-O. Disputes. PART XI MISCELLANEOUS PROVISIONS 378ZP. Strike off name of Producer Company. 378ZQ. Provisions of this Chapter to override other laws. 378ZR. Application of provisions relating to private companies. PART XII RE-CONVERSION OF PRODUCER COMPANY TO INTER-STATE CO-OPERATIVE SOCIETY 378ZS.Re-conversion of Producer Company to inter-State co-operative society. 378ZT. Power to modify Act in its application to Producer Companies. 378ZU. Power to make rules. CHAPTER XXII COMPANIES INCORPORATED OUTSIDE INDIA 379. Application of Act to foreign companies. 380. Documents, etc., to be delivered to Registrar by foreign companies. 381. Accounts of foreign company. 382. Display of name, etc., of foreign company. 383. Service on foreign company. 384. Debentures, annual return, registration of charges, books of account and their inspection. 385. Fee for registration of documents. 386. Interpretation. 387. Dating of prospectus and particulars to be contained therein. 388. Provisions as to expert’s consent and allotment. 389. Registration of prospectus. 390. Offer of Indian Depository Receipts. 391. Application of sections 34 to 36 and Chapter XX. 392. Punishment for contravention. 393. Company’s failure to comply with provisions of this Chapter not to affect validity of contracts, etc. 12 ----- CHAPTER XXIII GOVERNMENT COMPANIES SECTIONS 394. Annual reports on Government companies. 395. Annual reports where one or more State Governments are members of companies. CHAPTER XXIV REGISTRATION OFFICES AND FEES 396. Registration offices. 397. Admissibility of certain documents as evidence. 398. Provisions relating to filing of applications, documents, inspection, etc., in electronic form. 399. Inspection, production and evidence of documents kept by Registrar. 400. Electronic form to be exclusive, alternative or in addition to physical form. 401. Provision of value added services through electronic form. 402. Application of provisions of Information Technology Act, 2000. 403. Fee for filing, etc. 404. Fees, etc., to be credited into public account. CHAPTER XXV COMPANIES TO FURNISH INFORMATION OR STATISTICS 405. Power of Central Government to direct companies to furnish information or statistics. CHAPTER XXVI _NIDHIS_ 406. Provision relating to Nidhis and its application, etc. CHAPTER XXVII NATIONAL COMPANY LAW TRIBUNAL AND APPELLATE TRIBUNAL 407. Definitions. 408. Constitution of National Company Law Tribunal. 409. Qualification of President and Members of Tribunal. 410. Constitution of Appellate Tribunal. 411. Qualifications of Chairperson and members of Appellate Tribunal. 412. Selection of Members of Tribunal and Appellate Tribunal. 413. Term of office of President, Chairperson and other Members. 414. Salary, allowances and other terms and conditions of service of Members. 415. Acting President and Chairperson of Tribunal or Appellate Tribunal. 416. Resignation of Members. 417. Removal of Members. 417A. Qualifications, terms and conditions of service of Chairperson and Member. 418. Staff of Tribunal and Appellate Tribunal. 419. Benches of Tribunal. 420. Orders of Tribunal. 421. Appeal from orders of Tribunal. 422. Expeditious disposal by Tribunal and Appellate Tribunal. 423. Appeal to Supreme Court. 424. Procedure before Tribunal and Appellate Tribunal. 425. Power to punish for contempt. 13 ----- SECTIONS 426. Delegation of powers. 427. President, Members, officers, etc., to be public servants. 428. Protection of action taken in good faith. 429. Power to seek assistance of Chief Metropolitan Magistrate, etc. 430. Civil court not to have jurisdiction. 431. Vacancy in Tribunal or Appellate Tribunal not to invalidate acts or proceedings. 432. Right to legal representation. 433. Limitation. 434. Transfer of certain pending proceedings. CHAPTER XXVIII SPECIAL COURTS 435. Establishment of Special Courts. 436. Offences triable by Special Courts. 437. Appeal and revision. 438. Application of Code to proceedings before Special Court. 439. Offences to be non-cognizable. 440. Transitional provisions. 441. Compounding of certain offences. 442. Mediation and Conciliation Panel. 443. Power of Central Government to appoint company prosecutors. 444. Appeal against acquittal. 445. Compensation for accusation without reasonable cause. 446. Application of fines. 446A. Factors for determining level of punishment. 446B. Lesser penalties for certain companies. CHAPTER XXIX MISCELLANEOUS 447. Punishment for fraud. 448. Punishment for false statement. 449. Punishment for false evidence. 450. Punishment where no specific penalty or punishment is provided. 451. Punishment in case of repeated default. 452. Punishment for wrongful withholding of property. 453. Punishment for improper use of “Limited” or “Private Limited”. 454. Adjudication of penalties. 454A. Penalty for repeated default. 455. Dormant company. 456. Protection of action taken in good faith. 457. Non-disclosure of information in certain cases. 458. Delegation by Central Government of its powers and functions. 459. Powers of Central Government of Tribunal to accord approval, etc., subject to conditions and to prescribe fees on applications. 460. Condonation of delay in certain cases. 461. Annual report by Central Government. 462. Power to exempt class or classes of companies from provisions of this Act. 463. Power of court to grant relief in certain cases. 464. Prohibition of association or partnership of persons exceeding certain number. 465. Repeal of certain enactments and savings. 466. Dissolution of Company Law Board and consequential provisions. 467. Power of Central Government to amend Schedules. 468. Power of Central Government to make rules relating to winding up. 14 ----- SECTIONS 469. Power of Central Government to make rules. 470. Power to remove difficulties. SCHEDULE I. SCHEDULE II. SCHEDULE III. SCHEDULE IV. SCHEDULE V. SCHEDULE VI. SCHEDULE VII. 15 ----- THE COMPANIES ACT, 2013 ACT NO. 18 OF 2013 An Act to consolidate and amend the law relating to companies. BE it enacted by Parliament in the Sixty-fourth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY [29th August, 2013.] **1. Short title, extent, commencement and application.—(1) This Act may be called the Companies Act, 2013.** (2) It extends to the whole of India. (3) This section shall come into force at once and the remaining provisions of this Act shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint and *different dates may ***1. 12th September, 2013 – S. 2(1),(3), (4), (5), (6), (8), (9), (10), (11), (12), (14), (15), (16), (17), (18), (19), (20), (21), (22), (24), (25), (26), (27), (28), (29) [except** sub-clause (iv)], (30), (32), (33), (34), (35), (36), (37), (38), (39), (40), (43), (44), (45), (46), (49), (50), (51), (52), (53), (54), (55), (56), (57), (58), (59), (60), (61), (63), (64), (65), (66), (67) [except sub-clause (ix)], (84), (86),(87) [except the proviso and Explanation (d)], (88), (89), (90), (91), (92), (93), (94), (95); s. 19, 21, 22, 23 [except clause (b) of sub-section (1) and sub-section (2)], 24, 25 [except sub-section (3)], 29, 30, 31, 32, 33 [except sub-section (3)], 34, 35 [except clause (e) of subsection (1)], 36, 37, 38 39 [except sub-section (4)], 40 [except sub-section (6)], 44, 45, 49, 50, 51, 57, 58, 59, 60, 65, 69, 70 [except sub-section (2)], 86, 91, 100 [except sub-section (6)], 102, 103, 104, 105 [except the third and fourth provisos of sub-section (1) and sub-section (7)], 106, 107, 111, 112, 113 [except clause (b) of subsection (1)], 114, 116, 127, 133, 161 [except sub-section (2)], 162, 163, 176, 180, 181, 182, 183, 185, 192, 194,195, 202, 379, 382, 383, 386 [except clause (a)], 394, 405, 407, 408, 409, 410, 411, 412, 413, 414, 439, 443, 444, 445, 446, 447, 448, 449, 450, 451, 452, 453, 456, 457, 458, 459, 460, 461, 462, 463, 467, 468, 469, 470, _vide notification No. S.O. 2754(E), dated 12th September, 2013, see Gazette of India, Extraordinary, Part II, sec. 3(ii)._ **1st April 2014 – S. 2(2), (7), (13), (31), (41), (42), (47), (48), (62), (83), (85) and Explanation (d) of clause (87); ss. 3, 4, 5, 6; s. 7 [except sub-section (7)]; s. 8 [except** sub-section (9)]; ss. 9, 10, 11, 12 and 13; s. 14 [except second proviso to sub-section (1) and sub-section (2)]; ss. 15, 16, 17 and 18; section 20; clause (b) of sub-section (1) and sub-section (2) of section 23; sub-section (3) of section 25; ss. 26, 27 and 28; sub-section (3) of s. 33; clause (e) of sub-section (1) of s. 35; sub-section (4) of s. 39; sub-section (6) of s. 40; ss. 41, 42 and 43; ss. 46 and 47; ss. 52, 53 and 54; s. 55 [except sub-section (3)]; s. 56; s. 61 [except proviso to clause (b) of sub-section (1)]; s. 62 [except sub-sections (4) to (6)]; ss. 63 and 64; ss. 67 and 68; sub-section (2) of section 70; s. 71 [except sub-sections (9) to (11)]; ss. 72 and 73; sub-section (1) of s. 74; ss. 76, 77, 78, 79, 80, 81, 82, 83, 84 and 85; ss. 87, 88, 89 and 90; ss. 92, 93, 94, 95 and 96; sub-section (6) of s.100; s. 101; third and fourth provisos to subsection (1) and sub-section (7) of s. 105; ss. 108, 109 and 110; clause (b) of sub-section (1) of s. 113; s. 115; ss. 117and 118; s. 119 [except sub-section (4)]; ss. 120, 121, 122 and 123; s. 126; ss. 128 and 129; s.134; ss. 136, 137, 138 and 139; s. 140 [except second proviso to sub-section (4) and sub-section (5)]; ss. 141, 142, 143, 144, 145, 146, 147, 148, 149, 150, 151, 152, 153, 154, 155, 156, 157, 158, 159 and 160; sub-section (2) of s. 161; ss. 164, 165, 166, 167 and 168; s. 169 [except sub-section (4)]; ss. 170, 171, 172, 173, 174 and 175; ss. 177, 178 and 179; s. 184; ss. 186, 187, 188, 189, 190 and 191; s. 193; ss. 196, 197, 198, 199, 200 and 201; ss. 203, 204, 205, 206, 207, 208, 209, 210 and 211; s. 212 [except references of sub-section (10) of s. 66, sub-section (5) of s. 140], s. 213, sub-section (1) of s. 251 and sub-section (3) of s. 339 made in sub-section (6) and also sub-sections (8) to (10)]; ss. 214, 215; s. 216 [except sub-section (2)]; s. 217; ss. 219 and 220; s. 223; s. 224 [except subsections (2) and (5)]; s. 225; ss. 228 and 229; ss. 366, 367, 368and 369; s. 370 (except the proviso); s. 371; s. 374; ss. 380and 381; ss. 384and 385; clause (a) of s. 386; ss. 387, 388, 389and 390; sub-section (1) of s. 391; ss. 392 and 393; ss. 395, 396, 397and 398; s. 399 [except reference of word Tribunal in sub-section (2)]; ss. 400, 401, 402, 403and 404; s. 406; s. 442; ss. 454and 455; s. 464; Schs. I, II, III, IV, V and VI, vide notification No. S.O. 902(E), dated 26th March, 2014, see Gazette of India, Extraordinary, Part II, sec.3(ii). **1st April, 2014 – S. 135 and Sch. VII, vide notification No. S.O. 582(E), dated 27th February, 2014, see Gazette of India, Extraordinary, Part II, sec. 3 (ii).** **6th June, 2014 –Sub-sections (2) and (3) of s. 74, vide notification No. S.O. 1459(E), dated 6th June, 2014, see Gazette of India, Extraordinary, Part II, sec. 3(ii).** **13th January, 2016–S. 125(5), (6) [except with respect to the manner of administration of the Investor Education and Protection Fund] and (7),** _vide notification No._ S.O. 125(E), see Gazette of India, Extraordinary, Part II, sec. 3(ii). **18th May, 2016-S. 2(29) (iv), ss. 435 to 438 and s. 440, vide notification No. S.O. 1795(E), dated 18[th] May, 2016, see Gazette of India, Extraordinary, Part II, sec. 3(ii).** **1st June, 2016-S. 7(7) [except clause (c) and (d)], s. 14(2), second proviso to sub-section (1) of s. 14, s. 55 (3), proviso to clause (b) of sub-section (1) of s. 61; s. 62 (4)** to (6), s. 71 (9), (10) and (11), s. 75; s. 97; s. 98 and s. 99; S. 119 (4), s. 130 and 131; second proviso to sub-section (4) and (5) of s. 140, s. 169(4), s. 213, s. 216 (2), s. 218, s. 221, s. 222, s. 224 (5), ss. 241, 242 [except clause (b) of sub-section (1), cls. (c) and (g) of sub-section (2)], 243, 244 and 245; Reference of word “Tribunal” s. 399 (2),ss. 415 to 433, s. 434 (1) (a) and (b) & (2), s. 441and 466, vide notification No. S.O. 1934(E), dated 1[st] June, 2016, see Gazette of India, Extraordinary Part II, sec. 3(ii). **7th September, 2016-S. 124, s. 125 (1) to (4), (6) [with respect to the manner of administration of the Investor Education and Protection Fund] and (8) to (11)** _vide_ Notification No. S.O. 2866(E), dated 5[th] September, 2016, see Gazette of India, Extraordinary, Part II, sec. 3(ii). **9th September, 2016- S. 227, 242 (1) (b), (2) (c) & (g), s. 246, Ss. 337 to 341 (to the extent of their applicability for s. 246), vide notification No. S.O. 2912(E), dated** 9[th] September, 2016, see Gazette of India, Extraordinary, Part II, sec. 3(ii). **15th December, 2016-S. 2 (23), s.7 (7) (c) and (d), s. 8 (9), s. 48, s. 66, s. 224 (2), s. 226, s. 230 [except sub-section (11) and (12)], and ss. 231 to 233, ss. 235 to 240,** ss. 270 to 288, ss. 290 to 303, ss. 324, ss. 326 to 365, proviso to s. 370, ss. 372 to 373, ss. 375 to 378, s. 391 (2), s. 434 (1) cl. (c) vide notification No. S.O. 3677(E), dated 7[th] December, 2016, see Gazette of India, Extraordinary Part II, sec. 3 (ii). **26th December, 2016-Ss. 248 to 252, vide notification No. S.Ó. 4167(E), dated 26[th] December, 2016, see Gazette of India, Extraordinary Part II, sec. 3 (ii).** **13th April, 2017- S. 234, vide notification No. S.O. 1182(E),** dated 13[th] April, 2017, see Gazette of India, Extraordinary Part II, sec. 3 (ii). **24th August, 2017-S. 212 (8), (9) and (10), vide notification No. S.O. 2751(E), dated 24[th] August, 2017, see Gazette of India, Extraordinary Part II, sec. 3 (ii).** **20th September, 2017-Proviso to clause (87) of s. 2, vide notification No. S.O. 3086(E), dated 20[th] September, 2017, see Gazette of India, Extraordinary Part II, sec. 3 (ii).** **18[th] October, 2017-S. 247, vide notification No. S.O. 3393(E), dated 18[th] October, 2017, see Gazette of India, Extraordinary Part II, sec. 3(ii).** **21st March, 2018- S. 132 (3) and (11), vide notification No. S.O. 1316(E), dated 21[st] March, 2018, see Gazette of India, Extraordinary Part II, sec. 3(ii).** **1st October, 2018- S.132** (1) and (12), vide notification No. S.O. 5098(E), dated 1[st] October, 2018, see Gazette of India, Extraordinary Part II, sec. 3(ii). **24th October, 2018- S. 132 (2), (4), (5), (10), (13), (14) and (15) vide notification No. S.O. 5385(E), dated 24[th] October, 2018, see Gazette of India, Extraordinary Part** II, sec. 3(ii). **30th January, 2019- S.465 in so far as they relate to the repeal of the Companies Act, 1956 (1 of 1956) [that in except in so far as they relate to the repeal of the Registration of Companies (Sikkim)** Act, 1961 (Sikkim Act 8 of 1961)] vide notification No. S.O. 560(E), dated 30th January 2019, see Gazette of India, Extraordinary Part II, sec. 3(ii). **1st July, 2019-S. 81, vide notification No. S.O. 2269(E), dated 15th August, 2019, see Gazette of India, Extraordinary Part II, sec. 3(ii).** **3rd February, 2020-S. 230 (11) and (12), vide notification No. S.O. 525(E), dated 3rd February, 2020, see Gazette of India, Extraordinary, Part II, sec. 3(ii).** **21[st] December, 2020-S. 1, 3,6 to 10 (both inclusive), s. 12 to 17 (both inclusive), clauses (a) and (b) of s. 18, s. 19 to 21 (both inclusive), clause (i) of s. 22, 24,26, 28 to 31 (both inclusive), s. 33** to 39 (both inclusive), s. 41 to 44 (both inclusive), s. 46 to 51 (both inclusive), s. 54, 57, 61 and 63, vide notification No. S.O. 4646(E), dated 21[st] December, 2020, see Gazette of India, Extraordinary, Part II, sec. 3 (ii). *. Vide Notification No. S.O. 3912 (E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and Kashmir and the Union territory of Ladakh. **22[nd] January, 2021- Sections. 2, 11, clause (c) of sec. 18, Clause (ii) Sec. 22, Sections. 25, 27, 53, 55, 58, 60, 59, 62, 64, 65, vide notification No. S.O. 325(E), dated 21[st] January, 2021, see Gazette** of India, Extraordinary, Part II, sec. 3 (ii). **11[th] February, 2021- Sections. 52 & 66, vide notification No. S.O. 644(E), dated 11[th] February, 2021, see Gazette of India, Extraordinary, Part II, sec. 3 (ii).** **18[th] March, 2021-Sections. 32 & 40, vide notification No. S.O. 1255(E), dated 18[th] March, 2021, see Gazette of India, Extraordinary, Part II, sec. 3 (ii).** **1[st] September, 2021-Section. 4, vide notification No. S.O. 2904(E), dated 22[nd] July, 2021, see Gazette of India, Extraordinary, Part II, sec. 3 (ii).** **1[st] July, 2022-Section. 56, vide notification No. S.O. 148(E), dated 11[th] January, 2022, see Gazette of India, Extraordinary, Part II, sec. 3 (ii).** **30[th] October, 2023-Section. 5, vide notification No. S.O. 4744(E), dated 30[th] October, 2023, see Gazette of India, Extraordinary, Part II, sec. 3 (ii).** 16 ----- be appointed for different provisions of this Act and any reference in any provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. (4) The provisions of this Act shall apply to— (a) companies incorporated under this Act or under any previous company law; (b) insurance companies, except in so far as the said provisions are inconsistent with the provisions of the Insurance Act, 1938 (4 of 1938) or the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999); (c) banking companies, except in so far as the said provisions are inconsistent with the provisions of the Banking Regulation Act, 1949 (10 of 1949); (d) companies engaged in the generation or supply of electricity, except in so far as the said provisions are inconsistent with the provisions of the Electricity Act, 2003 (36 of 2003); (f) such body corporate, incorporated by any Act for the time being in force, as the Central Government may, by notification, specify in this behalf, subject to such exceptions, modifications or adaptation, as may be specified in the notification. **2. Definitions.—In this Act, unless the context otherwise requires,—** (1) “abridged prospectus” means a memorandum containing such salient features of a prospectus as may be specified by the Securities and Exchange Board by making regulations in this behalf; (2) “accounting standards” means the standards of accounting or any addendum thereto for companies or class of companies referred to in section 133; (3) “alter” or “alteration” includes the making of additions, omissions and substitutions; (4) “Appellate Tribunal” means the National Company Law Appellate Tribunal constituted under section 410; (5) “articles” means the articles of association of a company as originally framed or as altered from time to time or applied in pursuance of any previous company law or of this Act; (6) “associate company”, in relation to another company, means a company in which that other company has a significant influence, but which is not a subsidiary company of the company having such influence and includes a joint venture company. 1[Explanation.—For the purpose of this clause,— (a) the expression “significant influence” means control of at least twenty per cent. of total voting power, or control of or participation in business decisions under an agreement; (b) the expression “joint venture” means a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement;] (7) “auditing standards” means the standards of auditing or any addendum thereto for companies or class of companies referred to in sub-section (10) of section 143; (8) “authorised capital” or “nominal capital” means such capital as is authorised by the memorandum of a company to be the maximum amount of share capital of the company; (9) “banking company” means a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949); (10) “Board of Directors” or “Board”, in relation to a company, means the collective body of the directors of the company; (11) “body corporate” or “corporation” includes a company incorporated outside India, but does not include— (i) a co-operative society registered under any law relating to co-operative societies; and (ii) any other body corporate (not being a company as defined in this Act), which the Central Government may, by notification, specify in this behalf; (12) “book and paper” and “book or paper” include books of account, deeds, vouchers, writings, documents, minutes and registers maintained on paper or in electronic form; (13) “books of account” includes records maintained in respect of— 1. The Explanation subs. by Act 1 of 2018, s. 2 (w.e.f. 7-5-2018). 17 ----- (i) all sums of money received and expended by a company and matters in relation to which the receipts and expenditure take place; (ii) all sales and purchases of goods and services by the company; (iii) the assets and liabilities of the company; and (iv) the items of cost as may be prescribed under section 148 in the case of a company which belongs to any class of companies specified under that section; (14) “branch office”, in relation to a company, means any establishment described as such by the company; (15) “called-up capital” means such part of the capital, which has been called for payment; (16) “charge” means an interest or lien created on the property or assets of a company or any of its undertakings or both as security and includes a mortgage; (17) “chartered accountant” means a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949 (38 of 1949) who holds a valid certificate of practice under sub-section (1) of section 6 of that Act; (18) “Chief Executive Officer” means an officer of a company, who has been designated as such by it; (19) “Chief Financial Officer” means a person appointed as the Chief Financial Officer of a company; (20) “company” means a company incorporated under this Act or under any previous company law; (21) “company limited by guarantee” means a company having the liability of its members limited by the memorandum to such amount as the members may respectively undertake to contribute to the assets of the company in the event of its being wound up; (22) “company limited by shares” means a company having the liability of its members limited by the memorandum to the amount, if any, unpaid on the shares respectively held by them; 1[(23) “Company Liquidator” means a person appointed by the Tribunal as the Company Liquidator in accordance with the provisions of section 275 for the winding up of a company under this Act;] (24) “company secretary” or “secretary” means a company secretary as defined in clause (c) of sub section (1) of section 2 of the Company Secretaries Act, 1980 (56 of 1980) who is appointed by a company to perform the functions of a company secretary under this Act; (25) “company secretary in practice” means a company secretary who is deemed to be in practice under sub-section (2) of section 2 of the Company Secretaries Act, 1980 (56 of 1980); (26) “contributory” means a person liable to contribute towards the assets of the company in the event of its being wound up. _Explanation.—For the purposes of this clause, it is hereby clarified that a person holding fully paid-_ up shares in a company shall be considered as a contributory but shall have no liabilities of a contributory under the Act whilst retaining rights of such a contributory; (27) “control” shall include the right to appoint majority of the directors or to control the management or policy decisions exercisable by a person or persons acting individually or in concert, directly or indirectly, including by virtue of their shareholding or management rights or shareholders agreements or voting agreements or in any other manner; 1. Subs. by Act 31 of 2016, s. 255 and the Eleventh Schedule, for clause (23) (w.e.f. 15-11-2016). 18 ----- 1[(28) “Cost Accountant” means a cost accountant as defined in clause (b) of sub-section (1) of section 2 of the Cost and Works Accountants Act, 1959 (23 of 1959) and who holds a valid certificate of practice under sub-section (1) of section 6 of that Act;] (29) “court” means— (i) the High Court having jurisdiction in relation to the place at which the registered office of the company concerned is situate, except to the extent to which jurisdiction has been conferred on any district court or district courts subordinate to that High Court under sub-clause (ii); (ii) the district court, in cases where the Central Government has, by notification, empowered any district court to exercise all or any of the jurisdictions conferred upon the High Court, within the scope of its jurisdiction in respect of a company whose registered office is situate in the district; (iii) the Court of Session having jurisdiction to try any offence under this Act or under any previous company law; (iv) the Special Court established under section 435; (v) any Metropolitan Magistrate or a Judicial Magistrate of the First Class having jurisdiction to try any offence under this Act or under any previous company law; (30) “debenture” includes debenture stock, bonds or any other instrument of a company evidencing a debt, whether constituting a charge on the assets of the company or not: 2[Provided that— (a) the instruments referred to in Chapter III-D of the Reserve Bank of India Act, 1934 (2 of 1934); and (b) such other instrument, as may be prescribed by the Central Government in consultation with the Reserve Bank of India, issued by a company, shall not be treated as debenture;] (31) “deposit” includes any receipt of money by way of deposit or loan or in any other form by a company, but does not include such categories of amount as may be prescribed in consultation with the Reserve Bank of India; (32) “depository” means a depository as defined in clause (e) of sub-section (1) of section 2 of the Depositories Act, 1996 (22 of 1996); (33) “derivative” means the derivative as defined in clause (ac) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956); (34) “director” means a director appointed to the Board of a company; (35) “dividend” includes any interim dividend; (36) “document” includes summons, notice, requisition, order, declaration, form and register, whether issued, sent or kept in pursuance of this Act or under any other law for the time being in force or otherwise, maintained on paper or in electronic form; (37) “employees’ stock option” means the option given to the directors, officers or employees of a company or of its holding company or subsidiary company or companies, if any, which gives such directors, officers or employees, the benefit or right to purchase, or to subscribe for, the shares of the company at a future date at a pre-determined price; 1. Subs. by Act 1 of 2018, s. 2, for clause (28) (w.e.f. 9-2-2018). 2. The Proviso ins. by s. 2, ibid. (w.e.f. 9-2-2018). 19 ----- (38) “expert” includes an engineer, a valuer, a chartered accountant, a company secretary, a cost accountant and any other person who has the power or authority to issue a certificate in pursuance of any law for the time being in force; (39) “financial institution” includes a scheduled bank, and any other financial institution defined or notified under the Reserve Bank of India Act, 1934 (2 of 1934); (40) “financial statement” in relation to a company, includes— (i) a balance sheet as at the end of the financial year; (ii) a profit and loss account, or in the case of a company carrying on any activity not for profit, an income and expenditure account for the financial year; (iii) cash flow statement for the financial year; (iv) a statement of changes in equity, if applicable; and (v) any explanatory note annexed to, or forming part of, any document referred to in sub-clause (i) to sub-clause (iv): Provided that the financial statement, with respect to One Person Company, small company and dormant company, may not include the cash flow statement; (41) “financial year”, in relation to any company or body corporate, means the period ending on the 31st day of March every year, and where it has been incorporated on or after the 1st day of January of a year, the period ending on the 31st day of March of the following year, in respect whereof financial statement of the company or body corporate is made up: 1[Provided that where a company or body corporate, which is a holding company or a subsidiary or associate company of a company incorporated outside India and is required to follow a different financial year for consolidation of its accounts outside India, the Central Government may, on an application made by that company or body corporate in such form and manner as may be prescribed, allow any period as its financial year, whether or not that period is a year: Provided further that any application pending before the Tribunal as on the date of commencement of the Companies (Amendment) Act, 2019, shall be disposed of by the Tribunal in accordance with the provisions applicable to it before such commencement;] 2[Provided also that] a company or body corporate, existing on the commencement of this Act, shall, within a period of two years from such commencement, align its financial year as per the provisions of this clause; (42) “foreign company” means any company or body corporate incorporated outside India which— (a) has a place of business in India whether by itself or through an agent, physically or through electronic mode; and (b) conducts any business activity in India in any other manner; (43) “free reserves” means such reserves which, as per the latest audited balance sheet of a company, are available for distribution as dividend: Provided that— (i) any amount representing unrealised gains, notional gains or revaluation of assets, whether shown as a reserve or otherwise, or (ii) any change in carrying amount of an asset or of a liability recognised in equity, including surplus in profit and loss account on measurement of the asset or the liability at fair value, shall not be treated as free reserves; 1. The proviso subs. by Act 22 of 2019, s. 2 (w.e.f. 2-11-2018). 2. Subs. by s. 2, ibid., for “Provided further that” (w.e.f. 2-11-2018). 20 ----- (44) “Global Depository Receipt” means any instrument in the form of a depository receipt, by whatever name called, created by a foreign depository outside India and authorised by a company making an issue of such depository receipts; (45) “Government company” means any company in which not less than fifty-one per cent. of the paid-up share capital is held by the Central Government, or by any State Government or Governments, or partly by the Central Government and partly by one or more State Governments, and includes a company which is a subsidiary company of such a Government company; (46) “holding company”, in relation to one or more other companies, means a company of which such companies are subsidiary companies; 1[Explanation.—For the purposes of this clause, the expression “company” includes any body corporate;] (47) “independent director” means an independent director referred to in sub-section (6) of section 149; (48) “Indian Depository Receipt” means any instrument in the form of a depository receipt created by a domestic depository in India and authorised by a company incorporated outside India making an issue of such depository receipts; 2* - - - (50) “issued capital” means such capital as the company issues from time to time for subscription; (51) “key managerial personnel”, in relation to a company, means— (i) the Chief Executive Officer or the managing director or the manager; (ii) the company secretary; (iii) the whole-time director; (iv) the Chief Financial Officer; [3]*** 4[(v) such other officer, not more than one level below the directors who is in whole-time employment, designated as key managerial personnel by the Board; and (vi) such other officer as may be prescribed;] (52) “listed company” means a company which has any of its securities listed on any recognised stock exchange: 5[Provided that such class of companies, which have listed or intend to list such class of securities, as may be prescribed in consultation with the Securities and Exchange Board, shall not be considered as listed companies.] (53) “manager” means an individual who, subject to the superintendence, control and direction of the Board of Directors, has the management of the whole, or substantially the whole, of the affairs of a company, and includes a director or any other person occupying the position of a manager, by whatever name called, whether under a contract of service or not; (54) “managing director” means a director who, by virtue of the articles of a company or an agreement with the company or a resolution passed in its general meeting, or by its Board of Directors, is entrusted with substantial powers of management of the affairs of the company and includes a director occupying the position of managing director, by whatever name called. 1. The Explanation ins. by Act 1 of 2018, s. 2 (w.e.f. 9-2-2018). 2. Clause (49) omitted by s. 2, ibid. (w.e.f. 9-2-2018). 3. The word “and” omitted by s. 2, ibid. (w.e.f. 9-2-2018). 4. Subs. by s. 2, ibid., for sub-clause (v) (w.e.f. 9-2-2018). 5. The Proviso ins. by Act 29 of 2020, s. 2 (w.e.f. 22-1-2021). 21 ----- _Explanation.—For the purposes of this clause, the power to do administrative acts of a routine nature_ when so authorised by the Board such as the power to affix the common seal of the company to any document or to draw and endorse any cheque on the account of the company in any bank or to draw and endorse any negotiable instrument or to sign any certificate of share or to direct registration of transfer of any share, shall not be deemed to be included within the substantial powers of management; (55) “member”, in relation to a company, means— (i) the subscriber to the memorandum of the company who shall be deemed to have agreed to become member of the company, and on its registration, shall be entered as member in its register of members; (ii) every other person who agrees in writing to become a member of the company and whose name is entered in the register of members of the company; (iii) every person holding shares of the company and whose name is entered as a beneficial owner in the records of a depository; (56) “memorandum” means the memorandum of association of a company as originally framed or as altered from time to time in pursuance of any previous company law or of this Act; (57) “net worth” means the aggregate value of the paid-up share capital and all reserves created out of the profits [1][, securities premium account and debit or credit balance of profit and loss account,] after deducting the aggregate value of the accumulated losses, deferred expenditure and miscellaneous expenditure not written off, as per the audited balance sheet, but does not include reserves created out of revaluation of assets, write-back of depreciation and amalgamation; (58) “notification” means a notification published in the Official Gazette and the expression “notify” shall be construed accordingly; (59) “officer” includes any director, manager or key managerial personnel or any person in accordance with whose directions or instructions the Board of Directors or any one or more of the directors is or are accustomed to act; (60) “officer who is in default”, for the purpose of any provision in this Act which enacts that an officer of the company who is in default shall be liable to any penalty or punishment by way of imprisonment, fine or otherwise, means any of the following officers of a company, namely:— (i) whole-time director; (ii) key managerial personnel; (iii) where there is no key managerial personnel, such director or directors as specified by the Board in this behalf and who has or have given his or their consent in writing to the Board to such specification, or all the directors, if no director is so specified; (iv) any person who, under the immediate authority of the Board or any key managerial personnel, is charged with any responsibility including maintenance, filing or distribution of accounts or records, authorises, actively participates in, knowingly permits, or knowingly fails to take active steps to prevent, any default; (v) any person in accordance with whose advice, directions or instructions the Board of Directors of the company is accustomed to act, other than a person who gives advice to the Board in a professional capacity; (vi) every director, in respect of a contravention of any of the provisions of this Act, who is aware of such contravention by virtue of the receipt by him of any proceedings of the Board or participation 1. Subs. by Act 1 of 2018, s. 2, for “and securities premium account” (w.e.f. 9-2-2018). 22 ----- in such proceedings without objecting to the same, or where such contravention had taken place with his consent or connivance; (vii) in respect of the issue or transfer of any shares of a company, the share transfer agents, registrars and merchant bankers to the issue or transfer; (61) “Official Liquidator” means an Official Liquidator appointed under sub-section (1) of section 59; (62) “One Person Company” means a company which has only one person as a member; (63) “ordinary or special resolution” means an ordinary resolution, or as the case may be, special resolution referred to in section 114; (64) “paid-up share capital” or “share capital paid-up” means such aggregate amount of money credited as paid-up as is equivalent to the amount received as paid-up in respect of shares issued and also includes any amount credited as paid-up in respect of shares of the company, but does not include any other amount received in respect of such shares, by whatever name called; (65) “postal ballot” means voting by post or through any electronic mode; (66) “prescribed” means prescribed by rules made under this Act; (67) “previous company law” means any of the laws specified below:— (i) Acts relating to companies in force before the Indian Companies Act, 1866 (10 of 1866); (ii) the Indian Companies Act, 1866 (10 of 1866); (iii) the Indian Companies Act, 1882 (6 of 1882); (iv) the Indian Companies Act, 1913 (7 of 1913); (v) the Registration of Transferred Companies Ordinance, 1942 (Ord. 54 of 1942); (vi) the Companies Act, 1956 (1 of 1956); and (vii) any law corresponding to any of the aforesaid Acts or the Ordinances and in force— (A) in the merged territories or in a Part B State (other than the State of Jammu and Kashmir*), or any part thereof, before the extension thereto of the Indian Companies Act, 1913 (7 of 1913); or (B) in the State of Jammu and Kashmir*, or any part thereof, before the commencement of the Jammu and Kashmir (Extension of Laws) Act, 1956 (62 of 1956), in so far as banking, insurance and financial corporations are concerned, and before the commencement of the Central Laws (Extension to Jammu and Kashmir) Act, 1968 (25 of 1968), in so far as other corporations are concerned; (viii) the Portuguese Commercial Code, in so far as it relates to sociedades anonimas; and (ix) the Registration of Companies (Sikkim) Act, 1961 (Sikkim Act 8 of 1961); (68) “private company” means a company having a minimum paid-up share capital [1]*** as may be prescribed, and which by its articles,— (i) restricts the right to transfer its shares; (ii) except in case of One Person Company, limits the number of its members to two hundred: Provided that where two or more persons hold one or more shares in a company jointly, they shall, for the purposes of this clause, be treated as a single member: 1. The words “of one lakh rupees or such higher paid-up share capital” omitted by Act 21 of 2015, s. 2 (w.e.f. 29-5-2015). *. Vide Notification No. S.O. 3912 (E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and Kashmir and the Union territory of Ladakh. 23 ----- Provided further that— (A) persons who are in the employment of the company; and (B) persons who, having been formerly in the employment of the company, were members of the company while in that employment and have continued to be members after the employment ceased, shall not be included in the number of members; and (iii) prohibits any invitation to the public to subscribe for any securities of the company; (69) “promoter” means a person— (a) who has been named as such in a prospectus or is identified by the company in the annual return referred to in section 92; or (b) who has control over the affairs of the company, directly or in directly whether as a share holder, director or otherwise; or (c) in accordance with whose advice, directions or instructions the Board of Directors of the company is accustomed to act: Provided that nothing in sub-clause (c) shall apply to a person who is acting merely in a professional capacity; (70) “prospectus” means any document described or issued as a prospectus and includes a red herring prospectus referred to in section 32 or shelf prospectus referred to in section 31 or any notice, circular, advertisement or other document inviting offers from the public for the subscription or purchase of any securities of a body corporate; (71) “public company” means a company which— (a) is not a private company; [1][and] (b) has a minimum paid-up share capital [2]*** as may be prescribed: Provided that a company which is a subsidiary of a company, not being a private company, shall be deemed to be public company for the purposes of this Act even where such subsidiary company continues to be a private company in its articles ; (72) “public financial institution” means— (i) the Life Insurance Corporation of India, established under section 3 of the Life Insurance Corporation Act, 1956 (31 of 1956); (ii) the Infrastructure Development Finance Company Limited, referred to in clause (vi) of sub-section (1) of section 4A of the Companies Act, 1956 (1 of 1956) so repealed under section 465 of this Act; (iii) specified company referred to in the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002); (iv) institutions notified by the Central Government under sub-section (2) of section 4A of the Companies Act, 1956 (1 of 1956) so repealed under section 465 of this Act; (v) such other institution as may be notified by the Central Government in consultation with the Reserve Bank of India: Provided that no institution shall be so notified unless— (A) it has been established or constituted by or under any Central or State Act [1][other than this Act or the previous company law]; or 1. Ins. by Act 1 of 2018, s. 2 (w.e.f. 9-2-2018). 2. The words “of five lakh rupees or such higher paid-up capital,” omitted by Act 21 of 2015, s. 2 (w.e.f. 29-5-2015). 24 ----- (B) not less than fifty-one per cent. of the paid-up share capital is held or controlled by the Central Government or by any State Government or Governments or partly by the Central Government and partly by one or more State Governments; (73) “recognised stock exchange” means a recognised stock exchange as defined in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956); (74) “register of companies” means the register of companies maintained by the Registrar on paper or in any electronic mode under this Act; (75) “Registrar” means a Registrar, an Additional Registrar, a Joint Registrar, a Deputy Registrar or an Assistant Registrar, having the duty of registering companies and discharging various functions under this Act; (76) “related party”, with reference to a company, means— (i) a director or his relative; (ii) a key managerial personnel or his relative; (iii) a firm, in which a director, manager or his relative is a partner; (iv) a private company in which a director or manager [1][or his relative] is a member or director; (v) a public company in which a director or manager is a director [2][and holds] along with his relatives, more than two per cent. of its paid-up share capital; (vi) any body corporate whose Board of Directors, managing director or manager is accustomed to act in accordance with the advice, directions or instructions of a director or manager; (vii) any person on whose advice, directions or instructions a director or manager is accustomed to act: Provided that nothing in sub-clauses (vi) and (vii) shall apply to the advice, directions or instructions given in a professional capacity; 3[(viii) any body corporate which is— (A) a holding, subsidiary or an associate company of such company; (B) a subsidiary of a holding company to which it is also a subsidiary; or (C) an investing company or the venturer of the company. _Explanation.—For the purpose of this clause, “the investing company or the venturer of a_ company” means a body corporate whose investment in the company would result in the company becoming an associate company of the body corporate]; (ix) such other person as may be prescribed; (77) “relative”, with reference to any person, means any one who is related to another, if— (i) they are members of a Hindu Undivided Family; (ii) they are husband and wife; or (iii) one person is related to the other in such manner as may be prescribed; (78) “remuneration” means any money or its equivalent given or passed to any person for services rendered by him and includes perquisites as defined under the Income-tax Act, 1961 (43 of 1961); (79) “Schedule” means a Schedule annexed to this Act; 1. Ins. by S.O. 1894 (E), dated 24th July, 2014. 2. Subs. by S.O. 1820 (E), dated 9th July, 2014 for “or holds” . 3. Subs. by Act 1 of 2018, s. 2, for sub-clause (viii) (w.e.f. 9-2-2018). 25 ----- (80) “scheduled bank” means the scheduled bank as defined in clause (e) of section 2 of the Reserve Bank of India Act, 1934 (2 of 1934); (81) “securities” means the securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956); (82) “Securities and Exchange Board” means the Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992); (83) “Serious Fraud Investigation Office” means the office referred to in section 211; (84) “share” means a share in the share capital of a company and includes stock; (85) “small company” means a company, other than a public company,— (i) paid-up share capital of which does not exceed fifty lakh rupees or such higher amount as may be prescribed which shall not be more than [1][ten crore rupees]; [2][and] (ii) turnover of which [3][as per profit and loss account for the immediately preceding financial year] does not exceed two crore rupees or such higher amount as may be prescribed which shall not be more than [4][one hundred crore rupees]: Provided that nothing in this clause shall apply to— (A) a holding company or a subsidiary company; (B) a company registered under section 8; or (C) a company or body corporate governed by any special Act; (86) “subscribed capital” means such part of the capital which is for the time being subscribed by the members of a company; (87) “subsidiary company” or “subsidiary”, in relation to any other company (that is to say the holding company), means a company in which the holding company— (i) controls the composition of the Board of Directors; or (ii) exercises or controls more than one-half of the [5][total voting power] either at its own or together with one or more of its subsidiary companies: Provided that such class or classes of holding companies as may be prescribed shall not have layers of subsidiaries beyond such numbers as may be prescribed. _Explanation.—For the purposes of this clause,—_ (a) a company shall be deemed to be a subsidiary company of the holding company even if the control referred to in sub-clause (i) or sub-clause (ii) is of another subsidiary company of the holding company; (b) the composition of a company’s Board of Directors shall be deemed to be controlled by another company if that other company by exercise of some power exercisable by it at its discretion can appoint or remove all or a majority of the directors; (c) the expression “company” includes any body corporate; (d) “layer” in relation to a holding company means its subsidiary or subsidiaries; 1. Subs. by Act 1 of 2018, s. 2, for “five crore rupees” (w.e.f. 9-2-2018). 2. Subs. by notification No. S.O. 504(E), dated 13th February, 2015, for word “or” (w.e.f. 13-2-2015). 3. Subs. by Act 1 of 2018, s. 2, for “as per its last profit and loss account” (w.e.f. 9-2-2018). 4. Subs. by s. 2, ibid., for “twenty crore rupees”(w.e.f. 9-2-2018). 5. Subs. by s. 2, ibid., for “total share capital” (w.e.f. 7-5-2018). 26 ----- (88) “sweat equity shares” means such equity shares as are issued by a company to its directors or employees at a discount or for consideration, other than cash, for providing their know-how or making available rights in the nature of intellectual property rights or value additions, by whatever name called; (89) “total voting power”, in relation to any matter, means the total number of votes which may be cast in regard to that matter on a poll at a meeting of a company if all the members thereof or their proxies having a right to vote on that matter are present at the meeting and cast their votes; (90) “Tribunal” means the National Company Law Tribunal constituted under section 408; 1[(91) “turnover” means gross amount of revenue recognised in the profit and loss account from the sale, supply, or distribution of goods or on account of services rendered, or both, by a company during a financial year;] (92) “unlimited company” means a company not having any limit on the liability of its members; (93) “voting right” means the right of a member of a company to vote in any meeting of the company or by means of postal ballot; (94) “whole-time director” includes a director in the whole-time employment of the company; 2[(94A) “winding up” means winding up under this Act or liquidation under the Insolvency and Bankruptcy Code, 2016 (31 of 2016), as applicable;] (95) words and expressions used and not defined in this Act but defined in the Securities Contracts (Regulation) Act, 1956 (42 of 1956) or the Securities and Exchange Board of India Act, 1992 (15 of 1992) or the Depositories Act, 1996 (22 of 1996) shall have the meanings respectively assigned to them in those Acts. CHAPTER II INCORPORATION OF COMPANY AND MATTERS INCIDENTAL THERETO **3. Formation of company.—(1) A company may be formed for any lawful purpose by—** (a) seven or more persons, where the company to be formed is to be a public company; (b) two or more persons, where the company to be formed is to be a private company; or (c) one person, where the company to be formed is to be One Person Company that is to say, a private company, by subscribing their names or his name to a memorandum and complying with the requirements of this Act in respect of registration: Provided that the memorandum of One Person Company shall indicate the name of the other person, with his prior written consent in the prescribed form, who shall, in the event of the subscriber’s death or his incapacity to contract become the member of the company and the written consent of such person shall also be filed with the Registrar at the time of incorporation of the One Person Company along with its memorandum and articles: Provided further that such other person may withdraw his consent in such manner as may be prescribed: Provided also that the member of One Person Company may at any time change the name of such other person by giving notice in such manner as may be prescribed: Provided also that it shall be the duty of the member of One Person Company to intimate the company the change, if any, in the name of the other person nominated by him by indicating in the memorandum or otherwise within such time and in such manner as maybe prescribed, and the company shall intimate the Registrar any such change within such time and in such manner as may be prescribed: Provided also that any such change in the name of the person shall not be deemed to be an alteration of the memorandum. 1. Subs. by Act 1 of 2018, s. 2, for clause (91) (w.e.f. 9-2-2018). 2. Ins. by Act 31 of 2016, s. 255 and the Eleventh Schedule (w.e.f. 15-11-2016). 27 ----- (2) A company formed under sub-section (1) may be either— (a) a company limited by shares; or (b) a company limited by guarantee; or (c) an unlimited company. **1[3A. Members severally liable in certain cases.-If at any time the number of members of a company** is reduced, in the case of a public company, below seven, in the case of a private company, below two, and the company carries on business for more than six months while the number of members is so reduced, every person who is a member of the company during the time that it so carries on business after those six months and is cognisant of the fact that it is carrying on business with less than seven members or two members, as the case may be, shall be severally liable for the payment of the whole debts of the company contracted during that time, and may be severally sued therefor.] **4. Memorandum.—(1) The memorandum of a company shall state—** (a) the name of the company with the last word “Limited” in the case of a public limited company, or the last words “Private Limited” in the case of a private limited company: Provided that nothing in this clause shall apply to a company registered under section 8; (b) the State in which the registered office of the company is to be situated; (c) the objects for which the company is proposed to be incorporated and any matter considered necessary in furtherance thereof; (d) the liability of members of the company, whether limited or unlimited, and also state,— (i) in the case of a company limited by shares, that liability of its members is limited to the amount unpaid, if any, on the shares held by them; and (ii) in the case of a company limited by guarantee, the amount up to which each member undertakes to contribute— (A) to the assets of the company in the event of its being wound up while he is a member or within one year after he ceases to be a member, for payment of the debts and liabilities of the company or of such debts and liabilities as may have been contracted before he ceases to be a member, as the case may be; and (B) to the costs, charges and expenses of winding up and for adjustment of the rights of the contributories among themselves; (e) in the case of a company having a share capital,— (i) the amount of share capital with which the company is to be registered and the division thereof into shares of a fixed amount and the number of shares which the subscribers to the memorandum agree to subscribe which shall not be less than one share; and (ii) the number of shares each subscriber to the memorandum intends to take, indicated opposite his name; (f) in the case of One Person Company, the name of the person who, in the event of death of the subscriber, shall become the member of the company. (2) The name stated in the memorandum shall not— (a) be identical with or resemble too nearly to the name of an existing company registered under this Act or any previous company law; or (b) be such that its use by the company— (i) will constitute an offence under any law for the time being in force; or (ii) is undesirable in the opinion of the Central Government. (3) Without prejudice to the provisions of sub-section (2), a company shall not be registered with a name which contains— (a) any word or expression which is likely to give the impression that the company is in any way connected with, or having the patronage of, the Central Government, any State Government, or any local authority, corporation or body constituted by the Central Government or any State Government under any law for the time being in force; or 1. Ins. by Act 1 of 2018, s. 3 (w.e.f. 9-2-2018). 28 ----- (b) such word or expression, as may be prescribed, unless the previous approval of the Central Government has been obtained for the use of any such word or expression. (4) A person may make an application, in such form and manner and accompanied by such fee, as may be prescribed, to the Registrar for the reservation of a name set out in the application as— (a) the name of the proposed company; or (b) the name to which the company proposes to change its name. (5) [1][(i) Upon receipt of an application under sub-section (4), the Registrar may, on the basis of information and documents furnished along with the application, reserve the name for a period of twenty days from the date of approval or such other period as may be prescribed: Provided that in case of an application for reservation of name or for change of its name by an existing company, the Registrar may reserve the name for a period of sixty days from the date of approval.] (ii) Where after reservation of name under clause (i), it is found that name was applied by furnishing wrong or incorrect information, then,— (a) if the company has not been incorporated, the reserved name shall be cancelled and the person making application under sub-section (4) shall be liable to a penalty which may extend to one lakh rupees; (b) if the company has been incorporated, the Registrar may, after giving the company an opportunity of being heard— (i) either direct the company to change its name within a period of three months, after passing an ordinary resolution; (ii) take action for striking off the name of the company from the register of companies; or (iii) make a petition for winding up of the company. (6) The memorandum of a company shall be in respective forms specified in Tables A, B, C, D and E in Schedule I as may be applicable to such company. (7) Any provision in the memorandum or articles, in the case of a company limited by guarantee and not having a share capital, purporting to give any person a right to participate in the divisible profits of the company otherwise than as a member, shall be void. **5. Articles.—(1) The articles of a company shall contain the regulations for management of the** company. (2) The articles shall also contain such matters, as may be prescribed: Provided that nothing prescribed in this sub-section shall be deemed to prevent a company from including such additional matters in its articles as may be considered necessary for its management. (3) The articles may contain provisions for entrenchment to the effect that specified provisions of the articles may be altered only if conditions or procedures as that are more restrictive than those applicable in the case of a special resolution, are met or complied with. (4) The provisions for entrenchment referred to in sub-section (3) shall only be made either on formation of a company, or by an amendment in the articles agreed to by all the members of the company in the case of a private company and by a special resolution in the case of a public company. (5) Where the articles contain provisions for entrenchment, whether made on formation or by amendment, the company shall give notice to the Registrar of such provisions in such form and manner as may be prescribed. (6) The articles of a company shall be in respective forms specified in Tables, F, G, H, I and J in Schedule I as may be applicable to such company. 1. Subs. by Act 1 of 2018, s. 4, for clause (i) (w.e.f. 26-1-2018). 29 ----- (7) A company may adopt all or any of the regulations contained in the model articles applicable to such company. (8) In case of any company, which is registered after the commencement of this Act, in so far as the registered articles of such company do not exclude or modify the regulations contained in the model articles applicable to such company, those regulations shall, so far as applicable, be the regulations of that company in the same manner and to the extent as if they were contained in the duly registered articles of the company. (9) Nothing in this section shall apply to the articles of a company registered under any previous company law unless amended under this Act. **6. Act to override memorandum, articles, etc.—Save as otherwise expressly provided in this Act—** (a) the provisions of this Act shall have effect notwithstanding anything to the contrary contained in the memorandum or articles of a company, or in any agreement executed by it, or in any resolution passed by the company in general meeting or by its Board of Directors, whether the same be registered, executed or passed, as the case may be, before or after the commencement of this Act; and (b) any provision contained in the memorandum, articles, agreement or resolution shall, to the extent to which it is repugnant to the provisions of this Act, become or be void, as the case may be. **7. Incorporation of company.—(1) There shall be filed with the Registrar within whose jurisdiction** the registered office of a company is proposed to be situated, the following documents and information for registration, namely:— (a) the memorandum and articles of the company duly signed by all the subscribers to the memorandum in such manner as may be prescribed; (b) a declaration in the prescribed form by an advocate, a chartered accountant, cost accountant or company secretary in practice, who is engaged in the formation of the company, and by a person named in the articles as a director, manager or secretary of the company, that all the requirements of this Act and the rules made thereunder in respect of registration and matters precedent or incidental thereto have been complied with; (c) [1][a declaration] from each of the subscribers to the memorandum and from persons named as the first directors, if any, in the articles that he is not convicted of any offence in connection with the promotion, formation or management of any company, or that he has not been found guilty of any fraud or misfeasance or of any breach of duty to any company under this Act or any previous company law during the preceding five years and that all the documents filed with the Registrar for registration of the company contain information that is correct and complete and true to the best of his knowledge and belief; (d) the address for correspondence till its registered office is established; (e) the particulars of name, including surname or family name, residential address, nationality and such other particulars of every subscriber to the memorandum along with proof of identity, as may be prescribed, and in the case of a subscriber being a body corporate, such particulars as may be prescribed; (f) the particulars of the persons mentioned in the articles as the first directors of the company, their names, including surnames or family names, the Director Identification Number, residential address, nationality and such other particulars including proof of identity as may be prescribed; and (g) the particulars of the interests of the persons mentioned in the articles as the first directors of the company in other firms or bodies corporate along with their consent to act as directors of the company in such form and manner as may be prescribed. (2) The Registrar on the basis of documents and information filed under sub-section (1) shall register all the documents and information referred to in that sub-section in the register and issue a certificate of incorporation in the prescribed form to the effect that the proposed company is incorporated under this Act. (3) On and from the date mentioned in the certificate of incorporation issued under sub-section (2), the Registrar shall allot to the company a corporate identity number, which shall be a distinct identity for the company and which shall also be included in the certificate. 1. Subs. by Act 1 of 2018, s. 5, for “an affidavit” (w.e.f. 27-7-2018). 30 ----- (4) The company shall maintain and preserve at its registered office copies of all documents and information as originally filed under sub-section (1) till its dissolution under this Act. (5) If any person furnishes any false or incorrect particulars of any information or suppresses any material information, of which he is aware in any of the documents filed with the Registrar in relation to the registration of a company, he shall be liable for action under section 447. (6) Without prejudice to the provisions of sub-section (5) where, at any time after the incorporation of a company, it is proved that the company has been got incorporated by furnishing any false or incorrect information or representation or by suppressing any material fact or information in any of the documents or declaration filed or made for incorporating such company, or by any fraudulent action, the promoters, the persons named as the first directors of the company and the persons making declaration under clause (b) of sub-section(1) shall each be liable for action under section 447. (7) Without prejudice to the provisions of sub-section (6), where a company has been got incorporated by furnishing any false or incorrect information or representation or by suppressing any material fact or information in any of the documents or declaration filed or made for incorporating such company or by any fraudulent action, the Tribunal may, on an application made to it, on being satisfied that the situation so warrants,— (a) pass such orders, as it may think fit, for regulation of the management of the company including changes, if any, in its memorandum and articles, in public interest or in the interest of the company and its members and creditors; or (b) direct that liability of the members shall be unlimited; or (c) direct removal of the name of the company from the register of companies; or (d) pass an order for the winding up of the company; or (e) pass such other orders as it may deem fit: Provided that before making any order under this sub-section,— (i) the company shall be given a reasonable opportunity of being heard in the matter; and (ii) the Tribunal shall take into consideration the transactions entered into by the company, including the obligations, if any, contracted or payment of any liability. **8. Formation of companies with charitable objects, etc.—(1) Where it is proved to the satisfaction** of the Central Government that a person or an association of persons proposed to be registered under this Act as a limited company— (a) has in its objects the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object; (b) intends to apply its profits, if any, or other income in promoting its objects; and (c) intends to prohibit the payment of any dividend to its members, the Central Government may, by licence issued in such manner as may be prescribed, and on such conditions as it deems fit, allow that person or association of persons to be registered as a limited company under this section without the addition to its name of the word “Limited”, or as the case may be, the words “Private Limited”, and thereupon the Registrar shall, on application, in the prescribed form, register such person or association of persons as a company under this section. (2) The company registered under this section shall enjoy all the privileges and be subject to all the obligations of limited companies. (3) A firm may be a member of the company registered under this section. (4) (i) A company registered under this section shall not alter the provisions of its memorandum or articles except with the previous approval of the Central Government. (ii) A company registered under this section may convert itself into company of any other kind only after complying with such conditions as may be prescribed. 31 ----- (5) Where it is proved to the satisfaction of the Central Government that a limited company registered under this Act or under any previous company law has been formed with any of the objects specified in clause (a) of sub-section (1) and with the restrictions and prohibitions as mentioned respectively in clauses (b) and (c) of that sub-section, it may, by licence, allow the company to be registered under this section subject to such conditions as the Central Government deems fit and to change its name by omitting the word “Limited”, or as the case may be, the words “Private Limited” from its name and thereupon the Registrar shall, on application, in the prescribed form, register such company under this section and all the provisions of this section shall apply to that company. (6) The Central Government may, by order, revoke the licence granted to a company registered under this section if the company contravenes any of the requirements of this section or any of the conditions subject to which a licence is issued or the affairs of the company are conducted fraudulently or in a manner violative of the objects of the company or prejudicial to public interest, and without prejudice to any other action against the company under this Act, direct the company to convert its status and change its name to add the word” Limited” or the words “Private Limited”, as the case may be, to its name and thereupon the Registrar shall, without prejudice to any action that may be taken under sub-section (7), on application, in the prescribed form, register the company accordingly: Provided that no such order shall be made unless the company is given a reasonable opportunity of being heard: Provided further that a copy of every such order shall be given to the Registrar. (7) Where a licence is revoked under sub-section (6), the Central Government may, by order, if it is satisfied that it is essential in the public interest, direct that the company be wound up under this Act or amalgamated with another company registered under this section: Provided that no such order shall be made unless the company is given a reasonable opportunity of being heard. (8) Where a licence is revoked under sub-section (6) and where the Central Government is satisfied that it is essential in the public interest that the company registered under this section should be amalgamated with another company registered under this section and having similar objects, then, notwithstanding anything to the contrary contained in this Act, the Central Government may, by order, provide for such amalgamation to form a single company with such constitution, properties, powers, rights, interest, authorities and privileges and with such liabilities, duties and obligations as may be specified in the order. (9) If on the winding up or dissolution of a company registered under this section, there remains, after the satisfaction of its debts and liabilities, any asset, they may be transferred to another company registered under this section and having similar objects, subject to such conditions as the Tribunal may impose, or may be sold and proceeds thereof credited to [1][Insolvency and Bankruptcy Fund formed under section 224 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016)]. (10) A company registered under this section shall amalgamate only with another company registered under this section and having similar objects. (11) If a company makes any default in complying with any of the requirements laid down in this section, the company shall, without prejudice to any other action under the provisions of this section, be punishable with fine which shall not be less than ten lakh rupees but which may extend to one crore rupees and the directors and every officer of the company who is in default shall be punishable [2]*** with fine which shall not be less than twenty-five thousand rupees but which may extend to [3][twenty-five lakh rupees]: Provided that when it is proved that the affairs of the company were conducted fraudulently, every officer in default shall be liable for action under section 447. **9. Effect of registration.—From the date of incorporation mentioned in the certificate of incorporation,** such subscribers to the memorandum and all other persons, as may, from time to time, become members 1. Subs. by Act 31 of 2016, s. 255 and the Eleventh Schedule, for “the Rehabilitation and Insolvency Fund formed under section 269” (w.e.f. 15-11-2016). 2. The words “with imprisonment for a term which may extend to three years or” omitted by Act 29 of 2020, s. 3 (w.e.f. 21-12 2020). 3. Subs. by Act 29 of 2020, s. 3, for “twenty-five lakh rupees, or with both” (w.e.f. 21-12-2020). 32 ----- of the company, shall be a body corporate by the name contained in the memorandum, capable of exercising all the functions of an incorporated company under this Act and having perpetual succession [1]*** with power to acquire, hold and dispose of property, both movable and immovable, tangible and intangible, to contract and to sue and be sued, by the said name. **10. Effect of memorandum and articles.—(1) Subject to the provisions of this Act, the memorandum** and articles shall, when registered, bind the company and the members thereof to the same extent as if they respectively had been signed by the company and by each member, and contained covenants on its and his part to observe all the provisions of the memorandum and of the articles. (2) All monies payable by any member to the company under the memorandum or articles shall be a debt due from him to the company. 2[10A. Commencement of business, etc.—(1) A company incorporated after the commencement of the Companies (Amendment) Act, 2019 and having a share capital shall not commence any business or exercise any borrowing powers unless— (a) a declaration is filed by a director within a period of one hundred and eighty days of the date of incorporation of the company in such form and verified in such manner as may be prescribed, with the Registrar that every subscriber to the memorandum has paid the value of the shares agreed to be taken by him on the date of making of such declaration; and (b) the company has filed with the Registrar a verification of its registered office as provided in sub-section (2) of section 12. (2) If any default is made in complying with the requirements of this section, the company shall be liable to a penalty of fifty thousand rupees and every officer who is in default shall be liable to a penalty of one thousand rupees for each day during which such default continues but not exceeding an amount of one lakh rupees. (3) Where no declaration has been filed with the Registrar under clause (a) of sub-section (1) within a period of one hundred and eighty days of the date of incorporation of the company and the Registrar has reasonable cause to believe that the company is not carrying on any business or operations, he may, without prejudice to the provisions of sub-section (2), initiate action for the removal of the name of the company from the register of companies under Chapter XVIII.] **11. [Commencement of business, etc.]** _Omitted by the Companies_ (Amendment) _Act,_ 2015 (21 of 2015), s. 4 (w.e.f. 29-5-2015). **12. Registered office of company.—(1) A company shall, [3][within thirty days of its incorporation] and** at all times thereafter, have a registered office capable of receiving and acknowledging all communications and notices as may be addressed to it. (2) The company shall furnish to the Registrar verification of its registered office within a period of thirty days of its incorporation in such manner as may be prescribed. (3) Every company shall— (a) paint or affix its name, and the address of its registered office, and keep the same painted or affixed, on the outside of every office or place in which its business is carried on, in a conspicuous position, in legible letters, and if the characters employed therefor are not those of the language or of one of the languages in general use in that locality, also in the characters of that language or of one of those languages; 4[(b) have its name engraved in legible characters on its seal, if any;] (c) get its name, address of its registered office and the Corporate Identity Number along with telephone number, fax number, if any, e-mail and website addresses, if any, printed in all its business letters, billheads, letter papers and in all its notices and other official publications; and 1. The words “and a common seal” omitted by Act 21 of 2015, s. 3 (w.e.f. 29-5-2015). 2. Ins. by Act 22 of 2019, s. 3 (w.e.f. 2-11-2018). 3. Subs. by Act 1 of 2018, s. 6, for “on and from the fifteenth day of its incorporation”(w.e.f. 27-7-2018). 4. Subs. by Act 21 of 2015, s. 5, for clause (b) (w.e.f. 29-5-2015). 33 ----- (d) have its name printed on hundies, promissory notes, bills of exchange and such other documents as may be prescribed: Provided that where a company has changed its name or names during the last two years, it shall paint or affix or print, as the case may be, along with its name, the former name or names so changed during the last two years as required under clauses (a) and (c): Provided further that the words “One Person Company” shall be mentioned in brackets below the name of such company, wherever its name is printed, affixed or engraved. (4) Notice of every change of the situation of the registered office, verified in the manner prescribed, after the date of incorporation of the company, shall be given to the Registrar [1][within thirty days] of the change, who shall record the same. (5) Except on the authority of a special resolution passed by a company, the registered office of the company shall not be changed,— (a) in the case of an existing company, outside the local limits of any city, town or village where such office is situated at the commencement of this Act or where it may be situated later by virtue of a special resolution passed by the company; and (b) in the case of any other company, outside the local limits of any city, town or village where such office is first situated or where it may be situated later by virtue of a special resolution passed by the company: Provided that no company shall change the place of its registered office from the jurisdiction of one Registrar to the jurisdiction of another Registrar within the same State unless such change is confirmed by the Regional Director on an application made in this behalf by the company in the prescribed manner. (6) The confirmation referred to in sub-section (5) shall be communicated within a period of thirty days from the date of receipt of application by the Regional Director to the company and the company shall file the confirmation with the Registrar within a period of sixty days of the date of confirmation who shall register the same and certify the registration within a period of thirty days from the date of filing of such confirmation. (7) The certificate referred to in sub-section (6) shall be conclusive evidence that all the requirements of this Act with respect to change of registered office in pursuance of sub-section (5) have been complied with and the change shall take effect from the date of the certificate. (8) If any default is made in complying with the requirements of this section, the company and every officer who is in default shall be liable to a penalty of one thousand rupees for every day during which the default continues but not exceeding one lakh rupees. 2[(9) If the Registrar has reasonable cause to believe that the company is not carrying on any business or operations, he may cause a physical verification of the registered office of the company in such manner as may be prescribed and if any default is found to be made in complying with the requirements of subsection (1), he may without prejudice to the provisions of sub-section (8), initiate action for the removal of the name of the company from the register of companies under Chapter XVIII.] **13. Alteration of memorandum.—(1) Save as provided in section 61, a company may, by a special** resolution and after complying with the procedure specified in this section, alter the provisions of its memorandum. (2) Any change in the name of a company shall be subject to the provisions of sub-sections (2) and (3) of section 4 and shall not have effect except with the approval of the Central Government in writing: Provided that no such approval shall be necessary where the only change in the name of the company is the deletion therefrom, or addition thereto, of the word “Private”, consequent on the conversion of any one class of companies to another class in accordance with the provisions of this Act. 1. Subs. by Act 1 of 2018, s. 6, for “within fifteen days” (w.e.f. 27-7-2018). 2. Ins. by Act 22 of 2019, s. 4 (w.e.f. 2-11-2018). 34 ----- (3) When any change in the name of a company is made under sub-section (2), the Registrar shall enter the new name in the register of companies in place of the old name and issue a fresh certificate of incorporation with the new name and the change in the name shall be complete and effective only on the issue of such a certificate. (4) The alteration of the memorandum relating to the place of the registered office from one State to another shall not have any effect unless it is approved by the Central Government on an application in such form and manner as may be prescribed. (5) The Central Government shall dispose of the application under sub-section (4) within a period of sixty days and before passing its order may satisfy itself that the alteration has the consent of the creditors, debenture-holders and other persons concerned with the company or that the sufficient provision has been made by the company either for the due discharge of all its debts and obligations or that adequate security has been provided for such discharge. (6) Save as provided in section 64, a company shall, in relation to any alteration of its memorandum, file with the Registrar— (a) the special resolution passed by the company under sub-section (1); (b) the approval of the Central Government under sub-section (2), if the alteration involves any change in the name of the company. (7) Where an alteration of the memorandum results in the transfer of the registered office of a company from one State to another, a certified copy of the order of the Central Government approving the alteration shall be filed by the company with the Registrar of each of the States within such time and in such manner as may be prescribed, who shall register the same, and the Registrar of the State where the registered office is being shifted to, shall issue a fresh certificate of incorporation indicating the alteration. (8) A company, which has raised money from public through prospectus and still has any unutilised amount out of the money so raised, shall not change its objects for which it raised the money through prospectus unless a special resolution is passed by the company and— (i) the details, as may be prescribed, in respect of such resolution shall also be published in the newspapers (one in English and one in vernacular language) which is in circulation at the place where the registered office of the company is situated and shall also be placed on the website of the company, if any, indicating therein the justification for such change; (ii) the dissenting shareholders shall be given an opportunity to exit by the promoters and shareholders having control in accordance with regulations to be specified by the Securities and Exchange Board. (9) The Registrar shall register any alteration of the memorandum with respect to the objects of the company and certify the registration within a period of thirty days from the date of filing of the special resolution in accordance with clause (a) of sub-section (6) of this section. (10) No alteration made under this section shall have any effect until it has been registered in accordance with the provisions of this section. (11) Any alteration of the memorandum, in the case of a company limited by guarantee and not having a share capital, purporting to give any person a right to participate in the divisible profits of the company otherwise than as a member, shall be void. **14. Alteration of articles.—(1) Subject to the provisions of this Act and the conditions contained in** its memorandum, if any, a company may, by a special resolution, alter its articles including alterations having the effect of conversion of— (a) a private company into a public company; or (b) a public company into a private company: Provided that where a company being a private company alters its articles in such a manner that they no longer include the restrictions and limitations which are required to be included in the articles of a private 35 ----- company under this Act, the company shall, as from the date of such alteration, cease to be a private company: 1[Provided further that any alteration having the effect of conversion of a public company into a private company shall not valid unless it its approved by an order of the Central Government on an application made in such form and manner as may be prescribed: Provided also that any application pending before the Tribunal, as on the date of commencement of the Companies (amendment) Act, 2019, shall be disposed of by the Tribunal in accordance with the provisions applicable to it before such commencement.] (2) Every alteration of the articles under this section and a copy of the order of the [2][Central Government] approving the alteration as per sub-section (1) shall be filed with the Registrar, together with a printed copy of the altered articles, within a period of fifteen days in such manner as may be prescribed, who shall register the same. (3) Any alteration of the articles registered under sub-section (2) shall, subject to the provisions of this Act, be valid as if it were originally in the articles. **15. Alteration of memorandum or articles to be noted in every copy.—(1) Every alteration made in** the memorandum or articles of a company shall be noted in every copy of the memorandum or articles, as the case may be. (2) If a company makes any default in complying with the provisions of sub-section (1), the company and every officer who is in default shall be liable to a penalty of one thousand rupees for every copy of the memorandum or articles issued without such alteration. **16. Rectification of name of company.—(1) If, through inadvertence or otherwise, a company on its** first registration or on its registration by a new name, is registered by a name which,— (a) in the opinion of the Central Government, is identical with or too nearly resembles the name by which a company in existence had been previously registered, whether under this Act or any previous company law, it may direct the company to change its name and the company shall change its name or new name, as the case may be, within a period of three months from the issue of such direction, after adopting an ordinary resolution for the purpose; (b) on an application by a registered proprietor of a trade mark that the name is identical with or too nearly resembles to a registered trade mark of such proprietor under the Trade Marks Act, 1999 (47 of 1999), made to the Central Government within three years of incorporation or registration or change of name of the company, whether under this Act or any previous company law, in the opinion of the Central Government, is identical with or too nearly resembles to an existing trade mark, it may direct the company to change its name and the company shall change its name or new name, as the case may be, within a [3][period of three months] from the issue of such direction, after adopting an ordinary resolution for the purpose. (2) Where a company changes its name or obtains a new name under sub-section (1), it shall within a period of fifteen days from the date of such change, give notice of the change to the Registrar along with the order of the Central Government, who shall carry out necessary changes in the certificate of incorporation and the memorandum. 4[(3) If a company is in default in complying with any direction given under sub-section (1), the Central Government shall allot a new name to the company in such manner as may be prescribed and the Registrar shall enter the new name in the register of companies in place of the old name and issue a fresh certificate of incorporation with the new name, which the company shall use thereafter: Provided that nothing in this sub-section shall prevent a company from subsequently changing its name in accordance with the provisions of section 13.] **17. Copies of memorandum, articles, etc., to be given to members.—(1) A company shall, on being** so requested by a member, send to him within seven days of the request and subject to the payment of such fees as may be prescribed, a copy of each of the following documents, namely:— 1. Subs. by Act 22 of 2019, s. 5, for the Proviso (w.e.f. 2-11-2018). 2. Subs. by s. 5, ibid., for “Tribunal” (w.e.f. 2-11-2018). 3. Subs. by Act 29 of 2020, s. 4, for “period of six months” (w.e.f.1-9-2021). 4. Subs. by s. 4, ibid., for sub-section (3) (w.e.f. 1-9-2021). 36 ----- (a) the memorandum; (b) the articles; and (c) every agreement and every resolution referred to in sub-section (1) of section117, if and in so far as they have not been embodied in the memorandum or articles. (2) If a company makes any default in complying with the provisions of this section, the company and every officer of the company who is in default shall be liable for each default, to a penalty of one thousand rupees for each day during which such default continues or one lakh rupees, whichever is less. **18. Conversion of companies already registered.—(1) A company of any class registered under this** Act may convert itself as a company of other class under this Act by alteration of memorandum and articles of the company in accordance with the provisions of this Chapter. (2) Where the conversion is required to be done under this section, the Registrar shall on an application made by the company, after satisfying himself that the provisions of this Chapter applicable for registration of companies have been complied with, close the former registration of the company and after registering the documents referred to in sub-section (1), issue a certificate of incorporation in the same manner as its first registration. (3) The registration of a company under this section shall not affect any debts, liabilities, obligations or contracts incurred or entered into, by or on behalf of the company before conversion and such debts, liabilities, obligations and contracts may be enforced in the manner as if such registration had not been done. **19. Subsidiary company not to hold shares in its holding company.—(1) No company shall, either** by itself or through its nominees, hold any shares in its holding company and no holding company shall allot or transfer its shares to any of its subsidiary companies and any such allotment or transfer of shares of a company to its subsidiary company shall be void: Provided that nothing in this sub-section shall apply to a case— (a) where the subsidiary company holds such shares as the legal representative of a deceased member of the holding company; or (b) where the subsidiary company holds such shares as a trustee; or (c) where the subsidiary company is a shareholder even before it became a subsidiary company of the holding company: Provided further that the subsidiary company referred to in the preceding proviso shall have a right to vote at a meeting of the holding company only in respect of the shares held by it as a legal representative or as a trustee, as referred to in clause (a) or clause (b) of the said proviso. (2) The reference in this section to the shares of a holding company which is a company limited by guarantee or an unlimited company, not having a share capital, shall be construed as a reference to the interest of its members, whatever be the form of interest. **20. Service of documents.—(1) A document may be served on a company or an officer thereof by** sending it to the company or the officer at the registered office of the company by registered post or by speed post or by courier service or by leaving it at its registered office or by means of such electronic or other mode as may be prescribed: Provided that where securities are held with a depository, the records of the beneficial ownership may be served by such depository on the company by means of electronic or other mode. (2) Save as provided in this Act or the rules made thereunder for filing of documents with the Registrar in electronic mode, a document may be served on Registrar or any member by sending it to him by post or by registered post or by speed post or by courier or by delivering at his office or address, or by such electronic or other mode as may be prescribed: Provided that a member may request for delivery of any document through a particular mode, for which he shall pay such fees as may be determined by the company in its annual general meeting. _Explanation.—For the purposes of this section, the term “courier” means a person or agency which_ delivers the document and provides proof of its delivery. 37 ----- **21. Authentication of documents, proceedings and contracts.—Save as otherwise provided in this** Act,— (a) a document or proceeding requiring authentication by a company; or (b) contracts made by or on behalf of a company, may be signed by any key managerial personnel or [1][an officer or employee of the company] duly authorised by the Board in this behalf. **22. Execution of bills of exchange, etc.—(1) A bill of exchange, hundi or promissory note shall be** deemed to have been made, accepted, drawn or endorsed on behalf of a company if made, accepted, drawn, or endorsed in the name of, or on behalf of or on account of, the company by any person acting under its authority, express or implied. (2) A company may, by writing [2][under its common seal, if any,] authorise any person, either generally or in respect of any specified matters, as its attorney to execute other deeds on its behalf in any place either in or outside India: 3[Provided that in case a company does not have a common seal, the authorisation under this sub-section shall be made by two directors or by a director and the Company Secretary, wherever the company has appointed a Company Secretary.] (3) A deed signed by such an attorney on behalf of the company and under his seal shall bind the company [4]***. CHAPTER III PROSPECTUS AND ALLOTMENT OF SECURITIES PART I.—Public offer **23. Public offer and private placement.—(1) A public company may issue securities—** (a) to public through prospectus (herein referred to as “public offer”) by complying with the provisions of this Part; or (b) through private placement by complying with the provisions of Part II of this Chapter; or (c) through a rights issue or a bonus issue in accordance with the provisions of this Act and in case of a listed company or a company which intends to get its securities listed also with the provisions of the Securities and Exchange Board of India Act, 1992 (15 of 1992) and the rules and regulations made thereunder. (2) A private company may issue securities— (a) by way of rights issue or bonus issue in accordance with the provisions of this Act; or (b) through private placement by complying with the provisions of Part II of this Chapter. 5[(3) Such class of public companies may issue such class of securities for the purposes of listing on permitted stock exchanges in permissible foreign jurisdictions or such other jurisdictions, as may be prescribed. (4) The Central Government may, by notification, exempt any class or classes of public companies referred to in sub-section (3) from any of the provisions of this Chapter, Chapter IV, section 89, section 90 or section 127 and a copy of every such notification shall, as soon as may be after it is issued, be laid before both Houses of Parliament.] _Explanation.—For the purposes of this Chapter, “public offer” includes initial public offer or further_ public offer of securities to the public by a company, or an offer for sale of securities to the public by an existing shareholder, through issue of a prospectus. **24. Power of Securities and Exchange Board to regulate issue and transfer of securities,** **etc.—(1) The provisions contained in this Chapter, Chapter IV and in section 127 shall,—** (a) in so far as they relate to — (i) issue and transfer of securities; and 1. Subs. by Act 1 of 2018, s. 7, for “an officer of the company” (w.e.f. 9-2-2018). 2. Subs. by Act 21 of 2015, s. 6, for “under its common seal” (w.e.f. 29-5-2015). 3. The proviso ins. by s. 6, ibid. (w.e.f. 29-5-2015). 4. The words “and have the effect as if it were made under its common seal” omitted by s. 6, ibid. (w.e.f. 29-5-2015). 5. Ins. by Act 29 of 2020, s. 5, (w.e.f. 30-10-2023). 38 ----- (ii) non-payment of dividend, by listed companies or those companies which intend to get their securities listed on any recognised stock exchange in India, except as provided under this Act, be administered by the Securities and Exchange Board by making regulations in this behalf; (b) in any other case, be administered by the Central Government. _Explanation.—For the removal of doubts, it is hereby declared that all powers relating to all other_ matters relating to prospectus, return of allotment, redemption of preference shares and any other matter specifically provided in this Act, shall be exercised by the Central Government, the Tribunal or the Registrar, as the case may be. (2) The Securities and Exchange Board shall, in respect of matters specified in sub-section (1) and the matters delegated to it under proviso to sub-section (1) of section 458, exercise the powers conferred upon it under sub-sections (1), (2A), (3) and (4) of section 11, sections 11A, 11B and 11D of the Securities and Exchange Board of India Act, 1992 (15 of 1992). **25. Document containing offer of securities for sale to be deemed prospectus.—(1) Where a** company allots or agrees to allot any securities of the company with a view to all or any of those securities being offered for sale to the public, any document by which the offer for sale to the public is made shall, for all purposes, be deemed to be a prospectus issued by the company; and all enactments and rules of law as to the contents of prospectus and as to liability in respect of mis-statements, in and omissions from, prospectus, or otherwise relating to prospectus, shall apply with the modifications specified in sub-sections (3) and (4) and shall have effect accordingly, as if the securities had been offered to the public for subscription and as if persons accepting the offer in respect of any securities were subscribers for those securities, but without prejudice to the liability, if any, of the persons by whom the offer is made in respect of mis-statements contained in the document or otherwise in respect thereof. (2) For the purposes of this Act, it shall, unless the contrary is proved, be evidence that an allotment of, or an agreement to allot, securities was made with a view to the securities being offered for sale to the public if it is shown— (a) that an offer of the securities or of any of them for sale to the public was made within six months after the allotment or agreement to allot; or (b) that at the date when the offer was made, the whole consideration to be received by the company in respect of the securities had not been received by it. (3) Section 26 as applied by this section shall have effect as if — (i) it required a prospectus to state in addition to the matters required by that section to be stated in a prospectus— (a) the net amount of the consideration received or to be received by the company in respect of the securities to which the offer relates; and (b) the time and place at which the contract where under the said securities have been or are to be allotted may be inspected; (ii) the persons making the offer were persons named in a prospectus as directors of a company. (4) Where a person making an offer to which this section relates is a company or a firm, it shall be sufficient if the document referred to in sub-section (1) is signed on behalf of the company or firm by two directors of the company or by not less than one-half of the partners in the firm, as the case may be. **26. Matters to be stated in prospectus.—(1) Every prospectus issued by or on behalf of a public** company either with reference to its formation or subsequently, or by or on behalf of any person who is or has been engaged or interested in the formation of a public company, shall be dated and signed and shall, 1[state such information and set out such reports on financial information as may be specified by the Securities and Exchange Board in consultation with the Central Government: Provided that until the Securities and Exchange Board specifies the information and reports on financial information under this sub-section, the regulations made by the Securities and Exchange Board under the 1. Ins. by Act 1 of 2018, s. 8 (w.e.f. 7-5-2018). 39 ----- Securities and Exchange Board of India Act, 1992 (15 of 1992), in respect of such financial information or reports on financial information shall apply]; — 1* - - - (c) make a declaration about the compliance of the provisions of this Act and a statement to the effect that nothing in the prospectus is contrary to the provisions of this Act, the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and the Securities and Exchange Board of India Act, 1992 (15 of 1992) and the rules and regulations made thereunder; and 2* - - - (2) Nothing in sub-section (1) shall apply— (a) to the issue to existing members or debenture-holders of a company, of a prospectus or form of application relating to shares in or debentures of the company, whether an applicant has a right to renounce the shares or not under sub-clause (ii) of clause (a) of sub-section (1) of section 62 in favour of any other person; or (b) to the issue of a prospectus or form of application relating to shares or debentures which are, or are to be, in all respects uniform with shares or debentures previously issued and for the time being dealt in or quoted on a recognised stock exchange. (3) Subject to sub-section (2), the provisions of sub-section (1) shall apply to a prospectus or a form of application, whether issued on or with reference to the formation of a company or subsequently. _Explanation.—The date indicated in the prospectus shall be deemed to be the date of its publication._ (4) No prospectus shall be issued by or on behalf of a company or in relation to an intended company unless on or before the date of its publication, there has been delivered to the Registrar for [2][filing], a copy thereof signed by every person who is named there in as a director or proposed director of the company or by his duly authorised attorney. (5) A prospectus issued under sub-section (1) shall not include a statement purporting to be made by an expert unless the expert is a person who is not, and has not been, engaged or interested in the formation or promotion or management, of the company and has given his written consent to the issue of the prospectus and has not withdrawn such consent before the delivery of a copy of the prospectus to the Registrar for [1][filing] and a statement to that effect shall be included in the prospectus. (6) Every prospectus issued under sub-section (1) shall, on the face of it,— (a) state that a copy has been delivered for [1][filing] to the Registrar as required under sub-section (4); and (b) specify any documents required by this section to be attached to the copy so delivered or refer to statements included in the prospectus which specify these documents. 3* - - - (8) No prospectus shall be valid if it is issued more than ninety days after the date on which a copy thereof is delivered to the Registrar under sub-section (4). (9) If a prospectus is issued in contravention of the provisions of this section, the company shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to three lakh rupees and every person who is knowingly a party to the issue of such prospectus shall be punishable [4]*** with fine which shall not be less than fifty thousand rupees but which may extend to [5][three lakh rupees]. 1. Clauses (a), (b) and (d) omitted by Act 1 of 2018, s. 8 (w.e.f. 7-5-2018). 2. Subs. by Act 22 of 2019, s. 6, for “registration” (w.e.f. 15-8-2019). 3. Sub-section (7) omitted by s. 6, ibid. (w.e.f. 15-8-2019). 4. The words “with imprisonment for a term which may extend to three years or” omitted by Act 29 of 2020, s. 6 (w.e.f. 21-12 2020). 5. Subs. by s. 6, ibid., for “three lakh rupees, or with both” (w.e.f. 21-12-2020). 40 ----- **27. Variation in terms of contract or objects in prospectus.—(1) A company shall not, at any time,** vary the terms of a contract referred to in the prospectus or objects for which the prospectus was issued, except subject to the approval of, or except subject to an authority given by the company in general meeting by way of special resolution: Provided that the details, as may be prescribed, of the notice in respect of such resolution to shareholders, shall also be published in the newspapers (one in English and one in vernacular language) in the city where the registered office of the company is situated indicating clearly the justification for such variation: Provided further that such company shall not use any amount raised by it through prospectus for buying, trading or otherwise dealing in equity shares of any other listed company. (2) The dissenting shareholders being those shareholders who have not agreed to the proposal to vary the terms of contracts or objects referred to in the prospectus, shall be given an exit offer by promoters or controlling shareholders at such exit price, and in such manner and conditions as may be specified by the Securities and Exchange Board by making regulations in this behalf. **28. Offer of sale of shares by certain members of company.—(1) Where certain members of a** company propose, in consultation with the Board of Directors to offer, in accordance with the provisions of any law for the time being in force, whole or part of their holding of shares to the public, they may do so in accordance with such procedure as may be prescribed. (2) Any document by which the offer of sale to the public is made shall, for all purposes, be deemed to be a prospectus issued by the company and all laws and rules made thereunder as to the contents of the prospectus and as to liability in respect of mis-statements in and omission from prospectus or otherwise relating to prospectus shall apply as if this is a prospectus issued by the company. (3) The members, whether individuals or bodies corporate or both, whose shares are proposed to be offered to the public, shall collectively authorise the company, whose shares are offered for sale to the public, to take all actions in respect of offer of sale for and on their behalf and they shall reimburse the company all expenses incurred by it on this matter. **29. Public offer of securities to be in dematerialised form.—(1) Notwithstanding anything contained** in any other provisions of this Act,— (a) every company making public offer; and (b) such other class or classes of [1]*** companies as may be prescribed, shall issue the securities only in dematerialised form by complying with the provisions of the Depositories Act, 1996 (22 of 1996) and the regulations made thereunder. 2[(1A) In case of such class or classes of unlisted companies as may be prescribed, the securities shall be held or transferred only in dematerialised form in the manner laid down in the Depositories Act, 1996 and the regulations made thereunder.] (2) Any company, other than a company mentioned in sub-section (1), may convert its securities into dematerialised form or issue its securities in physical form in accordance with the provisions of this Act or in dematerialised form in accordance with the provisions of the Depositories Act, 1996 (22 of 1996) and the regulations made thereunder. **30. Advertisement of prospectus.—Where an advertisement of any prospectus of a company is** published in any manner, it shall be necessary to specify therein the contents of its memorandum as regards the objects, the liability of members and the amount of share capital of the company, and the names of the signatories to the memorandum and the number of shares subscribed for by them, and its capital structure. **31. Shelf prospectus.—(1) Any class or classes of companies, as the Securities and Exchange Board** may provide by regulations in this behalf, may file a shelf prospectus with the Registrar at the stage of the first offer of securities included therein which shall indicate a period not exceeding one year as the period of validity of such prospectus which shall commence from the date of opening of the first offer of securities under that prospectus, and in respect of a second or subsequent offer of such securities issued during the period of validity of that prospectus, no further prospectus is required. (2) A company filing a shelf prospectus shall be required to file an information memorandum containing all material facts relating to new charges created, changes in the financial position of the 1. The word “public” omitted by Act 22 of 2019, s. 7 (w.e.f. 15-8-2019). 2. Ins. by s. 7, ibid. (w.e.f. 15-8-2019). 41 ----- company as have occurred between the first offer of securities or the previous offer of securities and the succeeding offer of securities and such other changes as may be prescribed, with the Registrar within the prescribed time, prior to the issue of a second or subsequent offer of securities under the shelf prospectus: Provided that where a company or any other person has received applications for the allotment of securities along with advance payments of subscription before the making of any such change, the company or other person shall intimate the changes to such applicants and if they express a desire to withdraw their application, the company or other person shall refund all the monies received as subscription within fifteen days thereof. (3) Where an information memorandum is filed, every time an offer of securities is made under sub-section (2), such memorandum together with the shelf prospectus shall be deemed to be a prospectus. _Explanation.—For the purposes of this section, the expression “shelf prospectus” means a prospectus_ in respect of which the securities or class of securities included therein are issued for subscription in one or more issues over a certain period without the issue of a further prospectus. **32. Red herring prospectus.—(1) A company proposing to make an offer of securities may issue a** red herring prospectus prior to the issue of a prospectus. (2) A company proposing to issue a red herring prospectus under sub-section (1) shall file it with the Registrar at least three days prior to the opening of the subscription list and the offer. (3) A red herring prospectus shall carry the same obligations as are applicable to a prospectus and any variation between the red herring prospectus and a prospectus shall be highlighted as variations in the prospectus. (4) Upon the closing of the offer of securities under this section, the prospectus stating therein the total capital raised, whether by way of debt or share capital, and the closing price of the securities and any other details as are not included in the red herring prospectus shall be filed with the Registrar and the Securities and Exchange Board. _Explanation.—For the purposes of this section, the expression “red herring prospectus” means a_ prospectus which does not include complete particulars of the quantum or price of the securities included therein. **33. Issue of application forms for securities.—(1) No form of application for the purchase of any of** the securities of a company shall be issued unless such form is accompanied by an abridged prospectus: Provided that nothing in this sub-section shall apply if it is shown that the form of application was issued— (a) in connection with a bona fide invitation to a person to enter into an underwriting agreement with respect to such securities; or (b) in relation to securities which were not offered to the public. (2) A copy of the prospectus shall, on a request being made by any person before the closing of the subscription list and the offer, be furnished to him. (3) If a company makes any default in complying with the provisions of this section, it shall be liable to a penalty of fifty thousand rupees for each default. **34. Criminal liability for mis-statements in prospectus.—Where a prospectus, issued, circulated or** distributed under this Chapter, includes any statement which is untrue or misleading in form or context in which it is included or where any inclusion or omission of any matter is likely to mislead, every person who authorises the issue of such prospectus shall be liable under section 447: Provided that nothing in this section shall apply to a person if he proves that such statement or omission was immaterial or that he had reasonable grounds to believe, and did up to the time of issue of the prospectus believe, that the statement was true or the inclusion or omission was necessary. **35. Civil liability for mis-statements in prospectus.—(1) Where a person has subscribed for securities** of a company acting on any statement included, or the inclusion or omission of any matter, in the prospectus 42 ----- which is misleading and has sustained any loss or damage as a consequence thereof, the company and every person who— (a) is a director of the company at the time of the issue of the prospectus; (b) has authorised himself to be named and is named in the prospectus as a director of the company, or has agreed to become such director, either immediately or after an interval of time; (c) is a promoter of the company; (d) has authorised the issue of the prospectus; and (e) is an expert referred to in sub-section (5) of section 26, shall, without prejudice to any punishment to which any person may be liable under section 36, be liable to pay compensation to every person who has sustained such loss or damage. (2) No person shall be liable under sub-section (1), if he proves— (a) that, having consented to become a director of the company, he withdrew his consent before the issue of the prospectus, and that it was issued without his authority or consent; or (b) that the prospectus was issued without his knowledge or consent, and that on becoming aware of its issue, he forthwith gave a reasonable public notice that it was issued without his knowledge or consent. 1[(c) that, as regards every misleading statement purported to be made by an expert or contained in what purports to be a copy of or an extract from a report or valuation of an expert, it was a correct and fair representation of the statement, or a correct copy of, or a correct and fair extract from, the report or valuation; and he had reasonable ground to believe and did up to the time of the issue of the prospectus believe, that the person making the statement was competent to make it and that the said person had given the consent required by sub-section (5) of section 26 to the issue of the prospectus and had not withdrawn that consent before [2][filing of a copy of the prospectus with the Registrar] or, to the defendant's knowledge, before allotment thereunder.] (3) Notwithstanding anything contained in this section, where it is proved that a prospectus has been issued with intent to defraud the applicants for the securities of a company or any other person or for any fraudulent purpose, every person referred to in sub-section (1) shall be personally responsible, without any limitation of liability, for all or any of the losses or damages that may have been incurred by any person who subscribed to the securities on the basis of such prospectus. **36. Punishment for fraudulently inducing persons to invest money. —Any person who, either** knowingly or recklessly makes any statement, promise or forecast which is false, deceptive or misleading, or deliberately conceals any material facts, to induce another person to enter into, or to offer to enter into,— (a) any agreement for, or with a view to, acquiring, disposing of, subscribing for, or underwriting securities; or (b) any agreement, the purpose or the pretended purpose of which is to secure a profit to any of the parties from the yield of securities or by reference to fluctuations in the value of securities; or (c) any agreement for, or with a view to obtaining credit facilities from any bank or financial institution, shall be liable for action under section 447. **37. Action by affected persons.—A suit may be filed or any other action may be taken under section** 34 or section 35 or section 36 by any person, group of persons or any association of persons affected by any misleading statement or the inclusion or omission of any matter in the prospectus. **38. Punishment for personation for acquisition, etc., of securities.—(1) Any person who—** (a) makes or abets making of an application in a fictitious name to a company for acquiring, or subscribing for, its securities; or 1. Ins. by Act 1 of 2018, s. 9 (w.e.f. 9-2-2018). 2. Subs. by Act 22 of 2019, s. 8, for “delivery of a copy of the prospectus for registration” (w.e.f. 15-8-2019). 43 ----- (b) makes or abets making of multiple applications to a company in different names or in different combinations of his name or surname for acquiring or subscribing for its securities; or (c) otherwise induces directly or indirectly a company to allot, or register any transfer of, securities to him, or to any other person in a fictitious name, shall be liable for action under section 447. (2) The provisions of sub-section (1) shall be prominently reproduced in every prospectus issued by a company and in every form of application for securities. (3) Where a person has been convicted under this section, the Court may also order disgorgement of gain, if any, made by, and seizure and disposal of the securities in possession of, such person. (4) The amount received through disgorgement or disposal of securities under sub-section (3) shall be credited to the Investor Education and Protection Fund. **39. Allotment of securities by company.—(1) No allotment of any securities of a company offered to** the public for subscription shall be made unless the amount stated in the prospectus as the minimum amount has been subscribed and the sums payable on application for the amount so stated have been paid to and received by the company by cheque or other instrument. (2) The amount payable on application on every security shall not be less than five per cent. of the nominal amount of the security or such other percentage or amount, as may be specified by the Securities and Exchange Board by making regulations in this behalf. (3) If the stated minimum amount has not been subscribed and the sum payable on application is not received within a period of thirty days from the date of issue of the prospectus, or such other period as may be specified by the Securities and Exchange Board, the amount received under sub-section (1) shall be returned within such time and manner as may be prescribed. (4) Whenever a company having a share capital makes any allotment of securities, it shall file with the Registrar a return of allotment in such manner as may be prescribed. (5) In case of any default under sub-section (3) or sub-section (4), the company and its officer who is in default shall be liable to a penalty, for each default, of one thousand rupees for each day during which such default continues or one lakh rupees, whichever is less. **40. Securities to be dealt with in stock exchanges.—(1) Every company making public offer shall,** before making such offer, make an application to one or more recognised stock exchange or exchanges and obtain permission for the securities to be dealt with in such stock exchange or exchanges. (2) Where a prospectus states that an application under sub-section (1) has been made, such prospectus shall also state the name or names of the stock exchange in which the securities shall be dealt with. (3) All monies received on application from the public for subscription to the securities shall be kept in a separate bank account in a scheduled bank and shall not be utilised for any purpose other than— (a) for adjustment against allotment of securities where the securities have been permitted to be dealt with in the stock exchange or stock exchanges specified in the prospectus; or (b) for the repayment of monies within the time specified by the Securities and Exchange Board, received from applicants in pursuance of the prospectus, where the company is for any other reason unable to allot securities. (4) Any condition purporting to require or bind any applicant for securities to waive compliance with any of the requirements of this section shall be void. (5) If a default is made in complying with the provisions of this section, the company shall be punishable with a fine which shall not be less than five lakh rupees but which may extend to fifty lakh rupees and every 44 ----- officer of the company who is in default shall be punishable [1]*** or with fine which shall not be less than fifty thousand rupees but which may extend to [2][three lakh rupees]. (6) A company may pay commission to any person in connection with the subscription to its securities subject to such conditions as may be prescribed. **41. Global depository receipt.—A company may, after passing a special resolution in its general** meeting, issue depository receipts in any foreign country in such manner, and subject to such conditions, as may be prescribed. PART II.—Private placement **3[42. Issue of shares on private placement basis.—(1) A company may, subject to the provisions of** this section, make a private placement of securities. (2) A private placement shall be made only to a select group of persons who have been identified by the Board (herein referred to as “identified persons”), whose number shall not exceed fifty or such higher number as may be prescribed [excluding the qualified institutional buyers and employees of the company being offered securities under a scheme of employees stock option in terms of provisions of clause (b) of sub-section (1) of section 62], in a financial year subject to such conditions as may be prescribed. (3) A company making private placement shall issue private placement offer and application in such form and manner as may be prescribed to identified persons, whose names and addresses are recorded by the company in such manner as may be prescribed: Provided that the private placement offer and application shall not carry any right of renunciation. _Explanation I.—”private placement” means any offer or invitation to subscribe or issue of securities to_ a select group of persons by a company (other than by way of public offer) through private placement offercum-application, which satisfies the conditions specified in this section. _Explanation II.—”qualified institutional buyer” means the qualified institutional buyer as defined in_ the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended from time to time, made under the Securities and Exchange Board of India Act, 1992, (15 of 1992). _Explanation III.—If a company, listed or unlisted, makes an offer to allot or invites subscription, or_ allots, or enters into an agreement to allot, securities to more than the prescribed number of persons, whether the payment for the securities has been received or not or whether the company intends to list its securities or not on any recognised stock exchange in or outside India, the same shall be deemed to be an offer to the public and shall accordingly be governed by the provisions of Part I of this Chapter. (4) Every identified person willing to subscribe to the private placement issue shall apply in the private placement and application issued to such person alongwith subscription money paid either by cheque or demand draft or other banking channel and not by cash: Provided that a company shall not utilise monies raised through private placement unless allotment is made and the return of allotment is filed with the Registrar in accordance with sub-section (8). (5) No fresh offer or invitation under this section shall be made unless the allotments with respect to any offer or invitation made earlier have been completed or that offer or invitation has been withdrawn or abandoned by the company: Provided that, subject to the maximum number of identified persons under sub-section (2), a company may, at any time, make more than one issue of securities to such class of identified persons as may be prescribed. (6) A company making an offer or invitation under this section shall allot its securities within sixty days from the date of receipt of the application money for such securities and if the company is not able to allot the securities within that period, it shall repay the application money to the subscribers within fifteen days from the expiry of sixty days and if the company fails to repay the application money within the aforesaid 1. The words “with imprisonment for a term which may extend to one year or” omitted by Act 29 of 2020, s. 7 (w.e.f. 21-12 2020). 2. Subs. by s. 7, ibid., for “three lakh rupees, or with both” (w.e.f. 21-12-2020). 3. Subs. by Act 1 of 2018, s. 10 (w.e.f. 7-8-2018). 45 ----- period, it shall be liable to repay that money with interest at the rate of twelve per cent. per annum from the expiry of the sixtieth day: Provided that monies received on application under this section shall be kept in a separate bank account in a scheduled bank and shall not be utilised for any purpose other than— (a) for adjustment against allotment of securities; or (b) for the repayment of monies where the company is unable to allot securities. (7) No company issuing securities under this section shall release any public advertisements or utilise any media, marketing or distribution channels or agents to inform the public at large about such an issue. (8) A company making any allotment of securities under this section, shall file with the Registrar a return of allotment within fifteen days from the date of the allotment in such manner as may be prescribed, including a complete list of all allottees, with their full names, addresses, number of securities allotted and such other relevant information as may be prescribed. (9) If a company defaults in filing the return of allotment within the period prescribed under sub-section (8), the company, its promoters and directors shall be liable to a penalty for each default of one thousand rupees for each day during which such default continues but not exceeding twenty-five lakh rupees. (10) Subject to sub-section (11), if a company makes an offer or accepts monies in contravention of this section, the company, its promoters and directors shall be liable for a penalty which may extend to the amount raised through the private placement or two crore rupees, whichever is lower, and the company shall also refund all monies with interest as specified in sub-section (6) to subscribers within a period of thirty days of the order imposing the penalty. (11) Notwithstanding anything contained in sub-section (9) and sub-section (10), any private placement issue not made in compliance of the provisions of sub-section (2) shall be deemed to be a public offer and all the provisions of this Act and the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and the Securities and Exchange Board of India Act, 1992 (15 of 1992) shall be applicable.] CHAPTER IV SHARE CAPITAL AND DEBENTURES **43. Kinds of share capital.—The share capital of a company limited by shares shall be of two kinds,** namely:— (a) equity share capital— (i) with voting rights; or (ii) with differential rights as to dividend, voting or otherwise in accordance with such rules as may be prescribed; and (b) preference share capital: Provided that nothing contained in this Act shall affect the rights of the preference share holders who are entitled to participate in the proceeds of winding up before the commencement of this Act. _Explanation.—For the purposes of this section,—_ (i) “equity share capital”, with reference to any company limited by shares, means all share capital which is not preference share capital; (ii) “preference share capital”, with reference to any company limited by shares, means that part of the issued share capital of the company which carries or would carry a preferential right with respect to— (a) payment of dividend, either as a fixed amount or an amount calculated at a fixed rate, which may either be free of or subject to income-tax; and (b) repayment, in the case of a winding up or repayment of capital, of the amount of the share capital paid-up or deemed to have been paid-up, whether or not, there is a preferential right to the payment of any fixed premium or premium on any fixed scale, specified in the memorandum or articles of the company; 46 ----- _(iii) capital shall be deemed to be preference capital, notwithstanding that it is entitled to either or_ both of the following rights, namely:— (a) that in respect of dividends, in addition to the preferential rights to the amounts specified in sub-clause (a) of clause (ii), it has a right to participate, whether fully or to a limited extent, with capital not entitled to the preferential right aforesaid; (b) that in respect of capital, in addition to the preferential right to the repayment, on a winding up, of the amounts specified in sub-clause (b) of clause (ii), it has a right to participate, whether fully or to a limited extent, with capital not entitled to that preferential right in any surplus which may remain after the entire capital has been repaid. **44. Nature of shares or debentures.—The shares or debentures or other interest of any member in a** company shall be movable property transferable in the manner provided by the articles of the company. **45. Numbering of shares.—Every share in a company having a share capital shall be distinguished by** its distinctive number: Provided that nothing in this section shall apply to a share held by a person whose name is entered as holder of beneficial interest in such share in the records of a depository. **46. Certificate of shares.—(1) A certificate, [1][issued under the common seal, if any, of the company** or signed by two directors or by a director and the Company Secretary, wherever the company has appointed a Company Secretary], specifying the shares held by any person, shall be prima facie evidence of the title of the person to such shares. (2) A duplicate certificate of shares may be issued, if such certificate — (a) is proved to have been lost or destroyed; or (b) has been defaced, mutilated or torn and is surrendered to the company. (3) Notwithstanding anything contained in the articles of a company, the manner of issue of a certificate of shares or the duplicate thereof, the form of such certificate, the particulars to be entered in the register of members and other matters shall be such as may be prescribed. (4) Where a share is held in depository form, the record of the depository is the prima facie evidence of the interest of the beneficial owner. (5) If a company with intent to defraud issues a duplicate certificate of shares, the company shall be punishable with fine which shall not be less than five times the face value of the shares involved in the issue of the duplicate certificate but which may extend to ten times the face value of such shares or rupees ten crores whichever is higher and every officer of the company who is in default shall be liable for action under section 447. **47. Voting rights.—(1) Subject to the [2][provisions of section 43, sub-section (2) of section 50 and sub-** section (1) of section 188],— (a) every member of a company limited by shares and holding equity share capital therein, shall have a right to vote on every resolution placed before the company; and (b) his voting right on a poll shall be in proportion to his share in the paid-up equity share capital of the company. (2) Every member of a company limited by shares and holding any preference share capital therein shall, in respect of such capital, have a right to vote only on resolutions placed before the company which directly affect the rights attached to his preference shares and, any resolution for the winding up of the company or for the repayment or reduction of its equity or preference share capital and his voting right on a poll shall be in proportion to his share in the paid-up preference share capital of the company: 1. Subs. by Act 21 of 2015, s. 7, for “issued under the common seal of the company” (w.e.f. 29-5-2015). 2. Subs. by Act 1 of 2018, s. 11, for “provisions of section 43 and sub-section (2) of section 50” (w.e.f. 9-2-2018). 47 ----- Provided that the proportion of the voting rights of equity shareholders to the voting rights of the preference shareholders shall be in the same proportion as the paid-up capital in respect of the equity shares bears to the paid-up capital in respect of the preference shares: Provided further that where the dividend in respect of a class of preference shares has not been paid for a period of two years or more, such class of preference shareholders shall have a right to vote on all the resolutions placed before the company. **48. Variations of shareholders’ rights.—(1) Where a share capital of the company is divided into** different classes of shares, the rights attached to the shares of any class may be varied with the consent in writing of the holders of not less than three-fourths of the issued shares of that class or by means of a special resolution passed at a separate meeting of the holders of the issued shares of that class,— (a) if provision with respect to such variation is contained in the memorandum or articles of the company; or (b) in the absence of any such provision in the memorandum or articles, if such variation is not prohibited by the terms of issue of the shares of that class: Provided that if variation by one class of shareholders affects the rights of any other class of shareholders, the consent of three-fourths of such other class of shareholders shall also be obtained and the provisions of this section shall apply to such variation. (2) Where the holders of not less than ten per cent. of the issued shares of a class did not consent to such variation or vote in favour of the special resolution for the variation, they may apply to the Tribunal to have the variation cancelled, and where any such application is made, the variation shall not have effect unless and until it is confirmed by the Tribunal: Provided that an application under this section shall be made within twenty-one days after the date on which the consent was given or the resolution was passed, as the case maybe, and may be made on behalf of the shareholders entitled to make the application by such one or more of their number as they may appoint in writing for the purpose. (3) The decision of the Tribunal on any application under sub-section (2) shall be binding on the shareholders. (4) The company shall, within thirty days of the date of the order of the Tribunal, file a copy thereof with the Registrar. 1* ***** ***** ***** ***** **49. Calls on shares of same class to be made on uniform basis.—Where any calls for further share** capital are made on the shares of a class, such calls shall be made on a uniform basis on all shares falling under that class. _Explanation.—For the purposes of this section, shares of the same nominal value on which different_ amounts have been paid-up shall not be deemed to fall under the same class. **50. Company to accept unpaid share capital, although not called up.—(1) A company may, if so** authorised by its articles, accept from any member, the whole or a part of the amount remaining unpaid on any shares held by him, even if no part of that amount has been called up. (2) A member of the company limited by shares shall not be entitled to any voting rights in respect of the amount paid by him under sub-section (1) until that amount has been called up. **51. Payment of dividend in proportion to amount paid-up.—A company may, if so authorised by** its articles, pay dividends in proportion to the amount paid-up on each share. 1. Sub-section (5) omitted by Act 29 of 2020, s. 8 (w.e.f. 21-12-2020). 48 ----- **52. Application of premiums received on issue of shares.—(1) Where a company issues shares at a** premium, whether for cash or otherwise, a sum equal to the aggregate amount of the premium received on those shares shall be transferred to a “securities premium account” and the provisions of this Act relating to reduction of share capital of a company shall, except as provided in this section, apply as if the securities premium account were the paid-up share capital of the company. (2) Notwithstanding anything contained in sub-section (1), the securities premium account may be applied by the company— (a) towards the issue of unissued shares of the company to the members of the company as fully paid bonus shares; (b) in writing off the preliminary expenses of the company; (c) in writing off the expenses of, or the commission paid or discount allowed on, any issue of shares or debentures of the company; (d) in providing for the premium payable on the redemption of any redeemable preference shares or of any debentures of the company; or (e) for the purchase of its own shares or other securities under section 68. (3) The securities premium account may, notwithstanding anything contained in sub-sections (1) and (2), be applied by such class of companies, as may be prescribed and whose financial statement comply with the accounting standards prescribed for such class of companies under section 133,— (a) in paying up unissued equity shares of the company to be issued to members of the company as fully paid bonus shares; or (b) in writing off the expenses of or the commission paid or discount allowed on any issue of equity shares of the company; or (c) for the purchase of its own shares or other securities under section 68. **53. Prohibition on issue of shares at discount.—(1) Except as provided in section 54, a company** shall not issue shares at a discount. (2) Any share issued by a company at a [1][discount] shall be void. 2[(2A) Notwithstanding anything contained in sub-sections (1) and (2), a company may issue shares at a discount to its creditors when its debt is converted into shares in pursuance of any statutory resolution plan or debt restructuring scheme in accordance with any guidelines or directions or regulations specified by the Reserve Bank of India under the Reserve Bank of India Act, 1934 (2 of 1934) or the Banking (Regulation) Act, 1949 (10 of 1949).] 3[(3) Where any company fails to comply with the provisions of this section, such company and every officer who is in default shall be liable to a penalty which may extend to an amount equal to the amount raised through the issue of shares at a discount of five lakh rupees, whichever is less, and the company shall also be liable to refund all monies received with interest at the rate of twelve per cent. per annum from the date of issue of such shares to the persons to whom such shares have been issued.] **54. Issue of sweat equity shares.—(1) Notwithstanding anything contained in section 53, a company** may issue sweat equity shares of a class of shares already issued, if the following conditions are fulfilled, namely:— _(a) the issue is authorised by a special resolution passed by the company;_ 1. Subs. by Act 1 of 2018, s. 12, for “discounted price” (w.e.f. 9-2-2018). 2. Ins. by s. 12, ibid. (w.e.f. 9-2-2018). 3. Subs. by Act 22 of 2019, s. 9, for sub-section (3) (w.e.f. 2-11-2018). 49 ----- _(b) the resolution specifies the number of shares, the current market price, consideration, if any,_ and the class or classes of directors or employees to whom such equity shares are to be issued; 1* - - - _(d) where the equity shares of the company are listed on a recognised stock exchange, the sweat_ equity shares are issued in accordance with the regulations made by the Securities and Exchange Board in this behalf and if they are not so listed, the sweat equity shares are issued in accordance with such rules as may be prescribed. (2) The rights, limitations, restrictions and provisions as are for the time being applicable to equity shares shall be applicable to the sweat equity shares issued under this section and the holders of such shares shall rank pari passu with other equity shareholders. **55. Issue and redemption of preference shares.—(1) No company limited by shares shall, after the** commencement of this Act, issue any preference shares which are irredeemable. (2) A company limited by shares may, if so authorised by its articles, issue preference shares which are liable to be redeemed within a period not exceeding twenty years from the date of their issue subject to such conditions as may be prescribed: Provided that a company may issue preference shares for a period exceeding twenty years for infrastructure projects, subject to the redemption of such percentage of shares as may be prescribed on an annual basis at the option of such preferential shareholders: Provided further that— (a) no such shares shall be redeemed except out of the profits of the company which would otherwise be available for dividend or out of the proceeds of a fresh issue of shares made for the purposes of such redemption; (b) no such shares shall be redeemed unless they are fully paid; (c) where such shares are proposed to be redeemed out of the profits of the company, there shall, out of such profits, be transferred, a sum equal to the nominal amount of the shares to be redeemed, to a reserve, to be called the Capital Redemption Reserve Account, and the provisions of this Act relating to reduction of share capital of a company shall, except as provided in this section, apply as if the Capital Redemption Reserve Account were paid-up share capital of the company; and (d) (i) in case of such class of companies, as may be prescribed and whose financial statement comply with the accounting standards prescribed for such class of companies under section 133, the premium, if any, payable on redemption shall be provided for out of the profits of the company, before the shares are redeemed: Provided also that premium, if any, payable on redemption of any preference shares issued on or before the commencement of this Act by any such company shall be provided for out of the profits of the company or out of the company’s securities premium account, before such shares are redeemed. (ii) in a case not falling under sub-clause (i) above, the premium, if any, payable on redemption shall be provided for out of the profits of the company or out of the company’s securities premium account, before such shares are redeemed. ## (3) Where a company is not in a position to redeem any preference shares or to pay dividend, if any, on such shares in accordance with the terms of issue (such shares hereinafter referred to as unredeemed preference shares), it may, with the consent of the holders of three-fourths in value of such preference shares and with the approval of the Tribunal on a petition made by it in this behalf, issue further redeemable preference shares equal to the amount due, including the dividend thereon, in respect of the unredeemed preference shares, and on the issue of such further redeemable preference shares, the unredeemed preference shares shall be deemed to have been redeemed: 1. Clause (c) omitted by Act 1 of 2018, s. 13 (w.e.f. 7-5-2018). 50 ----- Provided that the Tribunal shall, while giving approval under this sub-section, order the redemption forthwith of preference shares held by such persons who have not consented to the issue of further redeemable preference shares. _Explanation.—For the removal of doubts, it is hereby declared that the issue of further redeemable_ preference shares or the redemption of preference shares under this section shall not be deemed to be an increase or, as the case may be, a reduction, in the share capital of the company. (4) The capital redemption reserve account may, notwithstanding anything in this section, be applied by the company, in paying up unissued shares of the company to be issued to members of the company as fully paid bonus shares. _Explanation.—For the purposes of sub-section (2), the term “infrastructure projects” means the_ infrastructure projects specified in Schedule VI. **56.Transfer and transmission of securities.—(1) A company shall not register a transfer of securities** of the company, or the interest of a member in the company in the case of a company having no share capital, other than the transfer between persons both of whose names are entered as holders of beneficial interest in the records of a depository, unless a proper instrument of transfer, in such form as may be prescribed, duly stamped, dated and executed by or on behalf of the transferor and the transferee and specifying the name, address and occupation, if any, of the transferee has been delivered to the company by the transferor or the transferee within a period of sixty days from the date of execution, along with the certificate relating to the securities, or if no such certificate is in existence, along with the letter of allotment of securities: Provided that where the instrument of transfer has been lost or the instrument of transfer has not been delivered within the prescribed period, the company may register the transfer on such terms as to indemnity as the Board may think fit. (2) Nothing in sub-section (1) shall prejudice the power of the company to register, on receipt of an intimation of transmission of any right to securities by operation of law from any person to whom such right has been transmitted. (3) Where an application is made by the transferor alone and relates to partly paid shares, the transfer shall not be registered, unless the company gives the notice of the application, in such manner as may be prescribed, to the transferee and the transferee gives no objection to the transfer within two weeks from the receipt of notice. (4) Every company shall, unless prohibited by any provision of law or any order of Court, Tribunal or other authority, deliver the certificates of all securities allotted, transferred or transmitted— (a) within a period of two months from the date of incorporation, in the case of subscribers to the memorandum; (b) within a period of two months from the date of allotment, in the case of any allotment of any of its shares; (c) within a period of one month from the date of receipt by the company of the instrument of transfer under sub-section (1) or, as the case may be, of the intimation of transmission under subsection (2), in the case of a transfer or transmission of securities; (d) within a period of six months from the date of allotment in the case of any allotment of debenture: Provided that where the securities are dealt with in a depository, the company shall intimate the details of allotment of securities to depository immediately on allotment of such securities. (5) The transfer of any security or other interest of a deceased person in a company made by his legal representative shall, even if the legal representative is not a holder thereof, be valid as if he had been the holder at the time of the execution of the instrument of transfer. 51 ----- 1[(6) Where any default is made in complying with the provisions of sub-sections (1) to (5), the company and every officer of the company who is in default shall be liable to a penalty of fifty thousand rupees.] (7) Without prejudice to any liability under the Depositories Act, 1996 (22 of 1996), where any depository or depository participant, with an intention to defraud a person, has transferred shares, it shall be liable under section 447. **57. Punishment for personation of shareholder.—If any person deceitfully personates as an owner** of any security or interest in a company, or of any share warrant or coupon issued in pursuance of this Act, and thereby obtains or attempts to obtain any such security or interest or any such share warrant or coupon, or receives or attempts to receive any money due to any such owner, he shall be punishable with imprisonment for a term which shall not be less than one year but which may extend to three years and with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees. **58. Refusal of registration and appeal against refusal.—(1) If a private company limited by shares** refuses, whether in pursuance of any power of the company under its articles or otherwise, to register the transfer of, or the transmission by operation of law of the right to, any securities or interest of a member in the company, it shall within a period of thirty days from the date on which the instrument of transfer, or the intimation of such transmission, as the case may be, was delivered to the company, send notice of the refusal to the transfer or and the transferee or to the person giving intimation of such transmission, as the case may be, giving reasons for such refusal. (2) Without prejudice to sub-section (1), the securities or other interest of any member in a public company shall be freely transferable: Provided that any contract or arrangement between two or more persons in respect of transfer of securities shall be enforceable as a contract. (3) The transferee may appeal to the Tribunal against the refusal within a period of thirty days from the date of receipt of the notice or in case no notice has been sent by the company, within a period of sixty days from the date on which the instrument of transfer or the intimation of transmission, as the case may be, was delivered to the company. (4) If a public company without sufficient cause refuses to register the transfer of securities within a period of thirty days from the date on which the instrument of transfer or the intimation of transmission, as the case may be, is delivered to the company, the transferee may, within a period of sixty days of such refusal or where no intimation has been received from the company, within ninety days of the delivery of the instrument of transfer or intimation of transmission, appeal to the Tribunal. (5) The Tribunal, while dealing with an appeal made under sub-section (3) or sub-section (4), may, after hearing the parties, either dismiss the appeal, or by order— _(a) direct that the transfer or transmission shall be registered by the company and the company shall_ comply with such order within a period of ten days of the receipt of the order; or _(b) direct rectification of the register and also direct the company to pay damages, if any, sustained_ by any party aggrieved. (6) If a person contravenes the order of the Tribunal under this section, he shall be punishable with imprisonment for a term which shall not be less than one year but which may extend to three years and with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees. **59. Rectification of register of members.—(1) If the name of any person is, without sufficient cause,** entered in the register of members of a company, or after having been entered in the register, is, without sufficient cause, omitted there from, or if a default is made, or unnecessary delay takes place in entering in the register, the fact of any person having become or ceased to be a member, the person aggrieved, or any member of the company, or the company may appeal in such form as may be prescribed, to the Tribunal, 1. Subs. by Act 29 of 2020, s. 9, for sub-section (6) (w.e.f. 21-12-2020). 52 ----- or to a competent court outside India, specified by the Central Government by notification, in respect of foreign members or debenture holders residing outside India, for rectification of the register. (2) The Tribunal may, after hearing the parties to the appeal under sub-section (1) by order, either dismiss the appeal or direct that the transfer or transmission shall be registered by the company within a period of ten days of the receipt of the order or direct rectification of the records of the depository or the register and in the latter case, direct the company to pay damages, if any, sustained by the party aggrieved. (3) The provisions of this section shall not restrict the right of a holder of securities, to transfer such securities and any person acquiring such securities shall be entitled to voting rights unless the voting rights have been suspended by an order of the Tribunal. (4) Where the transfer of securities is in contravention of any of the provisions of the Securities Contracts (Regulation) Act, 1956 (42 of 1956), the Securities and Exchange Board of India Act, 1992 (15 of 1992) or this Act or any other law for the time being in force, the Tribunal may, on an application made by the depository, company, depository participant, the holder of the securities or the Securities and Exchange Board, direct any company or a depository to set right the contravention and rectify its register or records concerned. 1* - - - *. **60. Publication of authorised, subscribed and paid-up capital.—(1) Where any notice,** advertisement or other official publication, or any business letter, billhead or letter paper of a company contains a statement of the amount of the authorised capital of the company, such notice, advertisement or other official publication, or such letter, billhead or letter paper shall also contain a statement, in an equally prominent position and in equally conspicuous characters, of the amount of the capital which has been subscribed and the amount paid-up. (2) If any default is made in complying with the requirements of sub-section (1), the company shall be liable to pay a penalty of ten thousand rupees and every officer of the company who is in default shall be liable to pay a penalty of five thousand rupees, for each default. **61. Power of limited company to alter its share capital.—(1) A limited company having a share** capital may, if so authorised by its articles, alter its memorandum in its general meeting to— (a) increase its authorised share capital by such amount as it thinks expedient; (b) consolidate and divide all or any of its share capital into shares of a larger amount than its existing shares: Provided that no consolidation and division which results in changes in the voting percentage of shareholders shall take effect unless it is approved by the Tribunal on an application made in the prescribed manner; _(c) convert all or any of its fully paid-up shares into stock, and reconvert that stock into fully paid-_ up shares of any denomination; _(d)_ sub-divide its shares, or any of them, into shares of smaller amount than is fixed by the memorandum, so, however, that in the sub-division the proportion between the amount paid and the amount, if any, unpaid on each reduced share shall be the same as it was in the case of the share from which the reduced share is derived; _(e) cancel shares which, at the date of the passing of the resolution in that behalf, have not been_ taken or agreed to be taken by any person, and diminish the amount of its share capital by the amount of the shares so cancelled. (2) The cancellation of shares under sub-section (1) shall not be deemed to be a reduction of share capital. **62. Further issue of share capital.—(1) Where at any time, a company having a share capital proposes** to increase its subscribed capital by the issue of further shares, such shares shall be offered— 1. Sub-section (5) omitted by Act 29 of 2020, s. 10 (w.e.f. 21-12-2020). 53 ----- (a) to persons who, at the date of the offer, are holders of equity shares of the company in proportion, as nearly as circumstances admit, to the paid-up share capital on those shares by sending a letter of offer subject to the following conditions, namely:— (i) the offer shall be made by notice specifying the number of shares offered and limiting a time not being less than fifteen days [1][or such lesser number of days as may be prescribed] and not exceeding thirty days from the date of the offer within which the offer, if not accepted, shall be deemed to have been declined; (ii) unless the articles of the company otherwise provide, the offer aforesaid shall be deemed to include a right exercisable by the person concerned to renounce the shares offered to him or any of them in favour of any other person; and the notice referred to in clause (i) shall contain a statement of this right; (iii) after the expiry of the time specified in the notice aforesaid, or on receipt of earlier intimation from the person to whom such notice is given that he declines to accept the shares offered, the Board of Directors may dispose of them in such manner which is not disadvantageous to the share holders and the company; (b) to employees under a scheme of employees’ stock option, subject to special resolution passed by company and subject to such conditions as may be prescribed; or (c) to any persons, if it is authorised by a special resolution, whether or not those persons include the persons referred to in clause (a) or clause (b), either for cash or for a consideration other than cash, if the price of such shares is determined by the valuation report [2][of a registered valuer, subject to the compliance with the applicable provisions of Chapter III and any other conditions as may be prescribed]. 3[(2) The notice referred to in sub-clause (i) of clause (a) of sub-section (1) shall be dispatched through registered post or speed post or through electronic mode or courier or any other mode having proof of delivery to all the existing shareholders at least three days before the opening of the issue.] (3) Nothing in this section shall apply to the increase of the subscribed capital of a company caused by the exercise of an option as a term attached to the debentures issued or loan raised by the company to convert such debentures or loans into shares in the company: Provided that the terms of issue of such debentures or loan containing such an option have been approved before the issue of such debentures or the raising of loan by a special resolution passed by the company in general meeting. (4) Notwithstanding anything contained in sub-section (3), where any debentures have been issued, or loan has been obtained from any Government by a company, and if that Government considers it necessary in the public interest so to do, it may, by order, direct that such debentures or loans or any part thereof shall be converted into shares in the company on such terms and conditions as appear to the Government to be reasonable in the circumstances of the case even if terms of the issue of such debentures or the raising of such loans do not include a term for providing for an option for such conversion: Provided that where the terms and conditions of such conversion are not acceptable to the company, it may, within sixty days from the date of communication of such order, appeal to the Tribunal which shall after hearing the company and the Government pass such order as it deems fit. (5) In determining the terms and conditions of conversion under sub-section (4), the Government shall have due regard to the financial position of the company, the terms of issue of debentures or loans, as the case may be, the rate of interest payable on such debentures or loans and such other matters as it may consider necessary. (6) Where the Government has, by an order made under sub-section (4), directed that any debenture or loan or any part thereof shall be converted into shares in a company and where no appeal has been preferred to the Tribunal under sub-section (4) or where such appeal has been dismissed, the memorandum of such 1. Ins. by Act 29 of 2020, s. 11 (w.e.f. 22-1-2021). 2. Subs. by Act 1 of 2018, s. 14, for “of a registered valuer subject to such conditions as may be prescribed” (w.e.f. 9-2-2018). 3. Subs. by s. 14, ibid., for sub-section (2) (w.e.f. 9-2-2018). 54 ----- company shall, where such order has the effect of increasing the authorised share capital of the company, stand altered and the authorised share capital of such company shall stand increased by an amount equal to the amount of the value of shares which such debentures or loans or part thereof has been converted into. **63. Issue of bonus shares.—(1) A company may issue fully paid-up bonus shares to its members, in** any manner whatsoever, out of— (i) its free reserves; (ii) the securities premium account; or (iii) the capital redemption reserve account: Provided that no issue of bonus shares shall be made by capitalising reserves created by the revaluation of assets. (2) No company shall capitalise its profits or reserves for the purpose of issuing fully paid-up bonus shares under sub-section (1), unless— (a) it is authorised by its articles; (b) it has, on the recommendation of the Board, been authorised in the general meeting of the company; (c) it has not defaulted in payment of interest or principal in respect of fixed deposits or debt securities issued by it; (d) it has not defaulted in respect of the payment of statutory dues of the employees, such as, contribution to provident fund, gratuity and bonus; (e) the partly paid-up shares, if any outstanding on the date of allotment, are made fully paid-up; (f) it complies with such conditions as may be prescribed. (3) The bonus shares shall not be issued in lieu of dividend. **64. Notice to be given to Registrar for alteration of share capital.—(1) Where—** (a) a company alters its share capital in any manner specified in sub-section (1) of section 61; (b) an order made by the Government under sub-section (4) read with sub-section (6) of section 62 has the effect of increasing authorised capital of a company; or (c) a company redeems any redeemable preference shares, the company shall file a notice in the prescribed form with the Registrar within a period of thirty days of such alteration or increase or redemption, as the case may be, along with an altered memorandum. 1[(2) where any company fails to comply with the provisions of sub-section (1), such company rupees and every officer who is in default shall be liable to a penalty of [2][five hundred rupees] for each day during which such default continues, [3][subject to a maximum of five lakh rupees in case of a company and one lakh rupees in case of an officer who is in default].] **65. Unlimited company to provide for reserve share capital on conversion into limited** **company.—An unlimited company having a share capital may, by a resolution for registration as a limited** company under this Act, do either or both of the following things, namely— (a) increase the nominal amount of its share capital by increasing the nominal amount of each of its shares, subject to the condition that no part of the increased capital shall be capable of being called up except in the event and for the purposes of the company being wound up; (b) provide that a specified portion of its uncalled share capital shall not be capable of being called up except in the event and for the purposes of the company being wound up. 1. Subs. by Act 22 of 2019, s. 10, for sub-section (2) (w.e.f. 2-11-2018). 2. Subs. by Act 29 of 2020, s. 12, for “one thousand rupees” (w.e.f. 21-12-2020). 3. Subs. by s. 12, ibid., for “or five lakh rupees whichever is less” (w.e.f. 21-12-2020). 55 ----- **66. Reduction of share capital.—(1) Subject to confirmation by the Tribunal on an application by the** company, a company limited by shares or limited by guarantee and having a share capital may, by a special resolution, reduce the share capital in any manner and in particular, may— (a) extinguish or reduce the liability on any of its shares in respect of the share capital not paid-up; or (b) either with or without extinguishing or reducing liability on any of its shares,— (i) cancel any paid-up share capital which is lost or is unrepresented by available assets; or (ii) pay off any paid-up share capital which is in excess of the wants of the company, alter its memorandum by reducing the amount of its share capital and of its shares accordingly: Provided that no such reduction shall be made if the company is in arrears in the repayment of any deposits accepted by it, either before or after the commencement of this Act, or the interest payable thereon. (2) The Tribunal shall give notice of every application made to it under sub-section (1) to the Central Government, Registrar and to the Securities and Exchange Board, in the case of listed companies, and the creditors of the company and shall take into consideration the representations, if any, made to it by that Government, Registrar, the Securities and Exchange Board and the creditors within a period of three months from the date of receipt of the notice: Provided that where no representation has been received from the Central Government, Registrar, the Securities and Exchange Board or the creditors within the said period, it shall be presumed that they have no objection to the reduction. (3) The Tribunal may, if it is satisfied that the debt or claim of every creditor of the company has been discharged or determined or has been secured or his consent is obtained, make an order confirming the reduction of share capital on such terms and conditions as it deems fit: Provided that no application for reduction of share capital shall be sanctioned by the Tribunal unless the accounting treatment, proposed by the company for such reduction is in conformity with the accounting standards specified in section 133 or any other provision of this Act and a certificate to that effect by the company’s auditor has been filed with the Tribunal. (4) The order of confirmation of the reduction of share capital by the Tribunal under sub-section (3) shall be published by the company in such manner as the Tribunal may direct. (5) The company shall deliver a certified copy of the order of the Tribunal under sub-section (3) and of a minute approved by the Tribunal showing— (a) the amount of share capital; (b) the number of shares into which it is to be divided; (c) the amount of each share; and (d) the amount, if any, at the date of registration deemed to be paid-up on each share, to the Registrar within thirty days of the receipt of the copy of the order, who shall register the same and issue a certificate to that effect. (6) Nothing in this section shall apply to buy-back of its own securities by a company under section 68. (7) A member of the company, past or present, shall not be liable to any call or contribution in respect of any share held by him exceeding the amount of difference, if any, between the amount paid on the share, or reduced amount, if any, which is to be deemed to have been paid thereon, as the case may be, and the amount of the share as fixed by the order of reduction. (8) Where the name of any creditor entitled to object to the reduction of share capital under this section is, by reason of his ignorance of the proceedings for reduction or of their nature and effect with respect to his debt or claim, not entered on the list of creditors, and after such reduction, the company [1][commits a 1. Subs. by Act 31 of 2016, s. 255 and the Eleventh Schedule, for “is unable, within the meaning of sub-section (2) of section 271, to pay the amount of his debt or claim,” (w.e.f. 15-11-2016). 56 ----- default, within the meaning of section 6 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), in respect of the amount of his debt or claim],— (a) every person, who was a member of the company on the date of the registration of the order for reduction by the Registrar, shall be liable to contribute to the payment of that debt or claim, an amount not exceeding the amount which he would have been liable to contribute if the company had commenced winding up on the day immediately before the said date; and (b) if the company is wound up, the Tribunal may, on the application of any such creditor and proof of his ignorance as aforesaid, if it thinks fit, settle a list of persons so liable to contribute, and make and enforce calls and orders on the contributories settled on the list, as if they were ordinary contributories in a winding up. (9) Nothing in sub-section (8) shall affect the rights of the contributories among themselves. (10) If any officer of the company— (a) knowingly conceals the name of any creditor entitled to object to the reduction; (b) knowingly misrepresents the nature or amount of the debt or claim of any creditor; or (c) abets or is privy to any such concealment or misrepresentation as aforesaid, he shall be liable under section 447. 1* - - - *. **67. Restriction on purchase by company or giving of loans by it for purchase of its shares.—(1)** No company limited by shares or by guarantee and having a share capital shall have power to buy its own shares unless the consequent reduction of share capital is effected under the provisions of this Act. (2) No public company shall give, whether directly or indirectly and whether by means of a loan, guarantee, the provision of security or otherwise, any financial assistance for the purpose of, or in connection with, a purchase or subscription made or to be made, by any person of or for any shares in the company or in its holding company. (3) Nothing in sub-section (2) shall apply to— _(a) the lending of money by a banking company in the ordinary course of its business;_ (b) the provision by a company of money in accordance with any scheme approved by company through special resolution and in accordance with such requirements as may be prescribed, for the purchase of, or subscription for, fully paid-up shares in the company or its holding company, if the purchase of, or the subscription for, the shares held by trustees for the benefit of the employees or such shares held by the employee of the company; (c) the giving of loans by a company to persons in the employment of the company other than its directors or key managerial personnel, for an amount not exceeding their salary or wages for a period of six months with a view to enabling them to purchase or subscribe for fully paid-up shares in the company or its holding company to be held by them by way of beneficial ownership: Provided that disclosures in respect of voting rights not exercised directly by the employees in respect of shares to which the scheme relates shall be made in the Board's report in such manner as may be prescribed. (4) Nothing in this section shall affect the right of a company to redeem any preference shares issued by it under this Act or under any previous company law. (5) If a company contravenes the provisions of this section, it shall be punishable with fine which shall not be less than one lakh rupees but which may extend to twenty-five lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to three years and with fine which shall not be less than one lakh rupees but which may extend to twenty-five lakh rupees. 1. Sub-section (11) omitted by Act 29 of 2020, s. 13 (w.e.f. 21-12-2020). 57 ----- **68. Power of company to purchase its own securities.—(1) Notwithstanding anything contained in** this Act, but subject to the provisions of sub-section (2), a company may purchase its own shares or other specified securities (hereinafter referred to as buy-back) out of— (a) its free reserves; (b) the securities premium account; or (c) the proceeds of the issue of any shares or other specified securities: Provided that no buy-back of any kind of shares or other specified securities shall be made out of the proceeds of an earlier issue of the same kind of shares or same kind of other specified securities. (2) No company shall purchase its own shares or other specified securities under sub-section (1), unless— (a) the buy-back is authorised by its articles; (b) a special resolution has been passed at a general meeting of the company authorising the buy-back: Provided that nothing contained in this clause shall apply to a case where— (i) the buy-back is, ten per cent. or less of the total paid-up equity capital and free reserves of the company; and (ii) such buy-back has been authorised by the Board by means of a resolution passed at its meeting; (c) the buy-back is twenty-five per cent. or less of the aggregate of paid-up capital and free reserves of the company: Provided that in respect of the buy-back of equity shares in any financial year, the reference to twenty five per cent. in this clause shall be construed with respect to its total paid-up equity capital in that financial year; (d) the ratio of the aggregate of secured and unsecured debts owed by the company after buy-back is not more than twice the paid-up capital and its free reserves: Provided that the Central Government may, by order, notify a higher ratio of the debt to capital and free reserves for a class or classes of companies; (e) all the shares or other specified securities for buy-back are fully paid-up; (f) the buy-back of the shares or other specified securities listed on any recognized stock exchange is in accordance with the regulations made by the Securities and Exchange Board in this behalf; and (g) the buy-back in respect of shares or other specified securities other than those specified in clause (f) is in accordance with such rules as may be prescribed: Provided that no offer of buy-back under this sub-section shall be made within a period of one year reckoned from the date of the closure of the preceding offer of buy-back, if any. (3) The notice of the meeting at which the special resolution is proposed to be passed under clause (b) of sub-section (2) shall be accompanied by an explanatory statement stating— (a) a full and complete disclosure of all material facts; (b) the necessity for the buy-back; (c) the class of shares or securities intended to be purchased under the buy-back; (d) the amount to be invested under the buy-back; and (e) the time-limit for completion of buy-back. (4) Every buy-back shall be completed within a period of one year from the date of passing of the special resolution, or as the case may be, the resolution passed by the Board under clause (b) of sub-section (2). 58 ----- (5) The buy-back under sub-section (1) may be— (a) from the existing shareholders or security holders on a proportionate basis; (b) from the open market; (c) by purchasing the securities issued to employees of the company pursuant to a scheme of stock option or sweat equity. (6) Where a company proposes to buy-back its own shares or other specified securities under this section in pursuance of a special resolution under clause (b) of sub-section (2) or a resolution under item (ii) of the proviso thereto, it shall, before making such buy-back, file with the Registrar and the Securities and Exchange Board, a declaration of solvency signed by atleast two directors of the company, one of whom shall be the managing director, if any, in such form as may be prescribed and verified by an affidavit to the effect that the Board of Directors of the company has made a full inquiry into the affairs of the company as a result of which they have formed an opinion that it is capable of meeting its liabilities and will not be rendered insolvent within a period of one year from the date of declaration adopted by the Board: Provided that no declaration of solvency shall be filed with the Securities and Exchange Board by a company whose shares are not listed on any recognised stock exchange. (7) Where a company buys back its own shares or other specified securities, it shall extinguish and physically destroy the shares or securities so bought back within seven days of the last date of completion of buy-back. (8) Where a company completes a buy-back of its shares or other specified securities under this section, it shall not make a further issue of the same kind of shares or other securities including allotment of new shares under clause (a) of sub-section (1) of section 62 or other specified securities within a period of six months except by way of a bonus issue or in the discharge of subsisting obligations such as conversion of warrants, stock option schemes, sweat equity or conversion of preference shares or debentures into equity shares. (9) Where a company buys back its shares or other specified securities under this section, it shall maintain a register of the shares or securities so bought, the consideration paid for the shares or securities bought back, the date of cancellation of shares or securities, the date of extinguishing and physically destroying the shares or securities and such other particulars as may be prescribed. (10) A company shall, after the completion of the buy-back under this section, file with the Registrar and the Securities and Exchange Board a return containing such particulars relating to the buy-back within thirty days of such completion, as may be prescribed: Provided that no return shall be filed with the Securities and Exchange Board by a company whose shares are not listed on any recognised stock exchange. (11) If a company makes any default in complying with the provisions of this section or any regulation made by the Securities and Exchange Board, for the purposes of clause (f) of sub-section (2), the company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to three lakh rupees and every officer of the company who is in default shall be punishable [1]*** with fine which shall not be less than one lakh rupees but which may extend to [2][three lakh rupees]. _Explanation I.—For the purposes of this section and section 70, “specified securities” includes_ employees’ stock option or other securities as may be notified by the Central Government from time to time. _Explanation II.—For the purposes of this section, “free reserves” includes securities premium account._ **69. Transfer of certain sums to capital redemption reserve account.—(1) Where a company** purchases its own shares out of free reserves or securities premium account, a sum equal to the nominal 1. The words “with imprisonment for a term which may extend to three years or” omitted by Act 29 of 2020, s. 14 (w.e.f. 21-12 2020). 2. Subs. by s. 14, ibid., for “three lakh rupees, or with both” (w.e.f. 21-12-2020). 59 ----- value of the shares so purchased shall be transferred to the capital redemption reserve account and details of such transfer shall be disclosed in the balance sheet. (2) The capital redemption reserve account may be applied by the company, in paying up unissued shares of the company to be issued to members of the company as fully paid bonus shares. **70. Prohibition for buy-back in certain circumstances.—(1) No company shall directly or indirectly** purchase its own shares or other specified securities— (a) through any subsidiary company including its own subsidiary companies; (b) through any investment company or group of investment companies; or (c) if a default, is made by the company, in the repayment of deposits accepted either before or after the commencement of this Act, interest payment thereon, redemption of debentures or preference shares or payment of dividend to any shareholder, or re payment of any term loan or interest payable thereon to any financial institution or banking company: Provided that the buy-back is not prohibited, if the default is remedied and a period of three years has lapsed after such default ceased to subsist. (2) No company shall, directly or indirectly, purchase its own shares or other specified securities in case such company has not complied with the provisions of sections 92, 123,127 and section 129. **71. Debentures.—(1) A company may issue debentures with an option to convert such debentures into** shares, either wholly or partly at the time of redemption: Provided that the issue of debentures with an option to convert such debentures into shares, wholly or partly, shall be approved by a special resolution passed at a general meeting. (2) No company shall issue any debentures carrying any voting rights. (3) Secured debentures may be issued by a company subject to such terms and conditions as may be prescribed. (4) Where debentures are issued by a company under this section, the company shall create a debenture redemption reserve account out of the profits of the company available for payment of dividend and the amount credited to such account shall not be utilised by the company except for the redemption of debentures. (5) No company shall issue a prospectus or make an offer or invitation to the public or to its members exceeding five hundred for the subscription of its debentures, unless the company has, before such issue or offer, appointed one or more debenture trustees and the conditions governing the appointment of such trustees shall be such as may be prescribed. (6) A debenture trustee shall take steps to protect the interests of the debenture-holders and redress their grievances in accordance with such rules as may be prescribed. (7) Any provision contained in a trust deed for securing the issue of debentures, or in any contract with the debenture-holders secured by a trust deed, shall be void in so far as it would have the effect of exempting a trustee thereof from, or indemnifying him against, any liability for breach of trust, where he fails to show the degree of care and due diligence required of him as a trustee, having regard to the provisions of the trust deed conferring on him any power, authority or discretion: Provided that the liability of the debenture trustee shall be subject to such exemptions as may be agreed upon by a majority of debenture-holders holding not less than three-fourths in value of the total debentures at a meeting held for the purpose. (8) A company shall pay interest and redeem the debentures in accordance with the terms and conditions of their issue. (9) Where at any time the debenture trustee comes to a conclusion that the assets of the company are insufficient or are likely to become in sufficient to discharge the principal amount as and when it becomes due, the debenture trustee may file a petition before the Tribunal and the Tribunal may, after hearing the 60 ----- company and any other person interested in the matter, by order, impose such restrictions on the incurring of any further liabilities by the company as the Tribunal may consider necessary in the interests of the debenture-holders. (10) Where a company fails to redeem the debentures on the date of their maturity or fails to pay interest on the debentures when it is due, the Tribunal may, on the application of any or all of the debenture-holders, or debenture trustee and, after hearing the parties concerned, direct, by order, the company to redeem the debentures forth with on payment of principal and interest due thereon. 1* - - - (12) A contract with the company to take up and pay for any debentures of the company may be enforced by a decree for specific performance. (13) The Central Government may prescribe the procedure, for securing the issue of debentures, the form of debenture trust deed, the procedure for the debenture-holders to inspect the trust deed and to obtain copies thereof, quantum of debenture redemption reserve required to be created and such other matters. **72. Power to nominate.—(1) Every holder of securities of a company may, at any time, nominate, in** the prescribed manner, any person to whom his securities shall vest in the event of his death. (2) Where the securities of a company are held by more than one person jointly, the joint holders may together nominate, in the prescribed manner, any person to whom all the rights in the securities shall vest in the event of death of all the joint holders. (3) Notwithstanding anything contained in any other law for the time being in force or in any disposition, whether testamentary or otherwise, in respect of the securities of a company, where a nomination made in the prescribed manner purports to confer on any person the right to vest the securities of the company, the nominee shall, on the death of the holder of securities or, as the case may be, on the death of the joint holders, become entitled to all the rights in the securities, of the holder or, as the case may be, of all the joint holders, in relation to such securities, to the exclusion of all other persons, unless the nomination is varied or cancelled in the prescribed manner. (4) Where the nominee is a minor, it shall be lawful for the holder of the securities, making the nomination to appoint, in the prescribed manner, any person to become entitled to the securities of the company, in the event of the death of the nominee during his minority. CHAPTER V ACCEPTANCE OF DEPOSITS BY COMPANIES **73. Prohibition on acceptance of deposits from public.—(1) On and after the commencement of this** Act, no company shall invite, accept or renew deposits under this Act from the public except in a manner provided under this Chapter: Provided that nothing in this sub-section shall apply to a banking company and non-banking financial company as defined in the Reserve Bank of India Act, 1934 (2 of 1934) and to such other company as the Central Government may, after consultation with the Reserve Bank of India, specify in this behalf. (2) A company may, subject to the passing of a resolution in general meeting and subject to such rules as may be prescribed in consultation with the Reserve Bank of India, accept deposits from its members on such terms and conditions, including the provision of security, if any, or for the repayment of such deposits with interest, as may be agreed upon between the company and its members, subject to the fulfilment of the following conditions, namely:— (a) issuance of a circular to its members including therein a statement showing the financial position of the company, the credit rating obtained, the total number of depositors and the amount due towards deposits in respect of any previous deposits accepted by the company and such other particulars in such form and in such manner as may be prescribed; (b) filing a copy of the circular along with such statement with the Registrar within thirty days before the date of issue of the circular; 1. Sub-section (11) omitted by Act 29 of 2020, s. 15 (w.e.f. 21-12-2020). 61 ----- 1[(c) depositing, on or before the thirtieth day of April each year, such sum which shall not be less than twenty per cent. of the amount of its deposits maturing during the following financial year and kept in a scheduled bank in a separate bank account to be called deposit repayment reserve account;] 2* - - - (e) certifying that the company has not committed any default in the repayment of deposits accepted either before or after the commencement of this Act or payment of interest on, 3[such deposits and where a default had occurred, the company made good the default and a period of five years had lapsed since the date of making good the default;] and (f) providing security, if any for the due repayment of the amount of deposit or the interest thereon including the creation of such charge on the property or assets of the company: Provided that in case where a company does not secure the deposits or secures such deposits partially, then, the deposits shall be termed as “unsecured deposits” and shall be so quoted in every circular, form, advertisement or in any document related to invitation or acceptance of deposits. (3) Every deposit accepted by a company under sub-section (2) shall be repaid with interest in accordance with the terms and conditions of the agreement referred to in that sub-section. (4) Where a company fails to repay the deposit or part thereof or any interest thereon under sub-section (3), the depositor concerned may apply to the Tribunal for an order directing the company to pay the sum due or for any loss or damage incurred by him as a result of such non-payment and for such other orders as the Tribunal may deem fit. (5) The deposit repayment reserve account referred to in clause (c) of sub-section (2) shall not be used by the company for any purpose other than repayment of deposits. **74. Repayment of deposits, etc., accepted before commencement of this Act.—(1) Where in respect** of any deposit accepted by a company before the commencement of this Act, the amount of such deposit or part thereof or any interest due thereon remains unpaid on such commencement or becomes due at any time thereafter, the company shall— (a) file, within a period of three months from such commencement or from the date on which such payments, are due, with the Registrar a statement of all the deposits accepted by the company and sums remaining unpaid on such amount with the interest payable thereon along with the arrangements made for such repayment, notwithstanding anything contained in any other law for the time being in force or under the terms and conditions subject to which the deposit was accepted or any scheme framed under any law; and 4[(b) repay within three years from such commencement or on or before expiry of the period for which the deposits were accepted, whichever is earlier: Provided that renewal of any such deposits shall be done in accordance with the provisions of Chapter V and the rules made thereunder.] (2) The Tribunal may on an application made by the company, after considering the financial condition of the company, the amount of deposit or part thereof and the interest payable thereon and such other matters, allow further time as considered reasonable to the company to repay the deposit. (3) If a company fails to repay the deposit or part thereof or any interest thereon within the time specified in sub-section (1) or such further time as may be allowed by the Tribunal under sub-section (2), the company shall, in addition to the payment of the amount of deposit or part thereof and the interest due, be punishable with fine which shall not be less than one crore rupees but which may extend to ten crore rupees and every officer of the company who is in default shall be punishable with imprisonment which may extend to seven years or with fine which shall not be less than twenty-five lakh rupees but which may extend to two crore rupees, or with both. **75. Damages for fraud.—(1) Where a company fails to repay the deposit or part thereof or any interest** thereon referred to in section 74 within the time specified in sub-section (1) of that section or such further time as may be allowed by the Tribunal under sub-section (2) of that section, and it is proved that the 1. Subs. by Act 1 of 2018, s. 15, for clause (c) (w.e.f. 15-8-2018). 2. Clause (d) omitted by s. 15, ibid. (w.e.f. 15-8-2018). 3. Subs. by s. 15, ibid., for “such deposits;” (w.e.f. 15-8-2018). 4. Subs. by s. 16, ibid., for clause (b) (w.e.f. 15-8-2018). 62 ----- deposits had been accepted with intent to defraud the depositors or for any fraudulent purpose, every officer of the company who was responsible for the acceptance of such deposit shall, without prejudice to the provisions contained in sub-section (3) of that section and liability under section 447, be personally responsible, without any limitation of liability, for all or any of the losses or damages that may have been incurred by the depositors. (2) Any suit, proceedings or other action may be taken by any person, group of persons or any association of persons who had incurred any loss as a result of the failure of the company to repay the deposits or part thereof or any interest thereon. **76. Acceptance of deposits from public by certain companies.—(1) Notwithstanding anything** contained in section 73, a public company, having such net worth or turnover as may be prescribed, may accept deposits from persons other than its members subject to compliance with the requirements provided in sub-section (2) of section 73 and subject to such rules as the Central Government may, in consultation with the Reserve Bank of India, prescribe: Provided that such a company shall be required to obtain the rating (including its networth, liquidity and ability to pay its deposits on due date) from a recognised credit rating agency for informing the public the rating given to the company at the time of invitation of deposits from the public which ensures adequate safety and the rating shall be obtained for every year during the tenure of deposits: Provided further that every company accepting secured deposits from the public shall within thirty days of such acceptance, create a charge on its assets of an amount not less than the amount of deposits accepted in favour of the deposit holders in accordance with such rules as may be prescribed. (2) The provisions of this Chapter shall, mutatis mutandis, apply to the acceptance of deposits from public under this section. 1[76A. Punishment for contravention of section 73 or section 76.—Where a company accepts or invites or allows or causes any other person to accept or invite on its behalf any deposit in contravention of the manner or the conditions prescribed under section 73 or section 76 or rules made thereunder or if a company fails to repay the deposit or part thereof or any interest due thereon within the time specified under section 73 or section 76 or rules made thereunder or such further time as may be allowed by the Tribunal under section73,— (a) the company shall, in addition to the payment of the amount of deposit or part thereof and the interest due, be punishable with fine which shall not be less than [2][one crore rupees or twice the amount of deposit accepted by the company, whichever is lower] but which may extend to ten crore rupees; and (b) every officer of the company who is in default shall be punishable with imprisonment which may extend to [3][seven years and with fine] which shall not be less than twenty-five lakh rupees but which may extend to two crore rupees, [4]***: Provided that if it is proved that the officer of the company who is in default, has contravened such provisions knowingly or wilfully with the intention to deceive the company or its shareholders or depositors or creditors or tax authorities, he shall be liable for action under section 447.] CHAPTER VI REGISTRATION OF CHARGES **77. Duty to register charges, etc.—(1) It shall be the duty of every company creating a charge within** or outside India, on its property or assets or any of its undertakings, whether tangible or otherwise, and situated in or outside India, to register the particulars of the charge signed by the company and the chargeholder together with the instruments, if any, creating such charge in such form, on payment of such fees and in such manner as may be prescribed, with the Registrar within thirty days of its creation: 5[Provided that the Registrar may, on an application by the company, allow such registration to be made— (a) in case of charges created before the commencement of the Companies (Amendment) Act, 2019, within a period of three hundred days of such creation; or 1. Ins. by Act 21 of 2015, s. 8 (w.e.f. 29-5-2015). 2. Subs. by Act 1 of 2018, s. 17, for “one crore rupees” (w.e.f. 9-2-2018). 3. Subs. by s. 17, ibid., for “seven years or with fine” (w.e.f. 9-2-2018). 4. The words “or with both” omitted by s. 17, ibid. (w.e.f. 9-2-2018). 5. Subs. by Act 22 of 2019, s. 11, for first and second provisos (w.e.f. 2-11-2018). 63 ----- (b) in case of charges created on or after the commencement of the Companies (Amendment) Act, 2019, within a period of sixty days of such creation, on payment of such additional fees as may be prescribed: Provided further that if the registration is not made within the period specified— (a) in clause (a) to the first proviso, the registration of the charges shall be made within six months from the date of commencement of the Companies (Amendment) Act, 2019, on payment of such additional fees as may be prescribed and different fees may be prescribed for different classes of companies; (b) in clause (b) to the first proviso, the Registrar may, on an application, allow such registration to be made within a further period of sixty days after payment of such _ad valorem fees as may be_ prescribed.] Provided also that any subsequent registration of a charge shall not prejudice any right acquired in respect of any property before the charge is actually registered: 1[Provided also that this section shall not apply to such charges as may be prescribed in consultation with the Reserve Bank of India.] (2) Where a charge is registered with the Registrar under sub-section (1), he shall issue a certificate of registration of such charge in such form and in such manner as may be prescribed to the company and, as the case may be, to the person in whose favour the charge is created. (3) Notwithstanding anything contained in any other law for the time being in force, no charge created by a company shall be taken into account by the liquidator [2][appointed under this Act or the Insolvency and Bankruptcy Code, 2016 (31 of 2016), as the case may be,] or any other creditor unless it is duly registered under sub-section (1) and a certificate of registration of such charge is given by the Registrar under subsection (2). (4) Nothing in sub-section (3) shall prejudice any contract or obligation for the repayment of the money secured by a charge. **78. Application for registration of charge.—Where a company fails to [3][register the charge within** the period of thirty days referred to in sub-section (1) of section 77] without prejudice to its liability in respect of any offence under this Chapter, the person in whose favour the charge is created may apply to the Registrar for registration of the charge along with the instrument created for the charge, within such time and in such form and manner as may be prescribed and the Registrar may, on such application, within a period of fourteen days after giving notice to the company, unless the company itself registers the charge or shows sufficient cause why such charge should not be registered, allow such registration on payment of such fees, as may be prescribed: Provided that where registration is effected on application of the person in whose favour the charge is created, that person shall be entitled to recover from the company the amount of any fees or additional fees paid by him to the Registrar for the purpose of registration of charge. **79. Section 77 to apply in certain matters.—The provisions of section 77 relating to registration of** charges shall, so far as may be, apply to— (a) a company acquiring any property subject to a charge within the meaning of that section; or (b) any modification in the terms or conditions or the extent or operation of any charge registered under that section. **80. Date of notice of charge.—Where any charge on any property or assets of a company or any of its** undertakings is registered under section 77, any person acquiring such property, assets, undertakings or part thereof or any share or interest therein shall be deemed to have notice of the charge from the date of such registration. **81. Register of charges to be kept by Registrar.—(1) The Registrar shall, in respect of every** company, keep a register containing particulars of the charges registered under this Chapter in such form and in such manner as may be prescribed. 1. The proviso ins. by Act 1 of 2018, s. 18 (w.e.f. 7-5-2018). 2. Ins. by Act 31 of 2016, s. 255 and the Eleventh Schedule (w.e.f. 15-11-2016). 3. Subs. by Act 1 of 2018, s. 19, for “register the charge within the period specified in section 77” (w.e.f. 7-5-2018). 64 ----- (2) A register kept in pursuance of this section shall be open to inspection by any person on payment of such fees as may be prescribed for each inspection. **82. Company to report satisfaction of charge.—(1) A company shall give intimation to the Registrar** in the prescribed form, of the payment or satisfaction in full of any charge registered under this Chapter within a period of thirty days from the date of such payment or satisfaction [1]***. 2[Provided that the Registrar may, on an application by the company or the charge holder, allow such intimation of payment or satisfaction to be made within a period of three hundred days of such payment or satisfaction on payment of such additional fees as may be prescribed.] (2) The Registrar shall, on receipt of intimation under sub-section (1), cause a notice to be sent to the holder of the charge calling upon him to show cause within such time not exceeding fourteen days, as may be specified in such notice, as to why payment or satisfaction in full should not be recorded as intimated to the Registrar, and if no cause is shown, by such holder of the charge, the Registrar shall order that a memorandum of satisfaction shall be entered in the register of charges kept by him under section 81 and shall inform the company that he has done so: Provided that the notice referred to in this sub-section shall not be required to be sent, in case the intimation to the Registrar in this regard is in the specified form and signed by the holder of charge. (3) If any cause is shown, the Registrar shall record a note to that effect in the register of charges and shall inform the company. (4) Nothing in this section shall be deemed to affect the powers of the Registrar to make an entry in the register of charges under section 83 or otherwise than on receipt of an intimation from the company. **83. Power of Registrar to make entries of satisfaction and release in absence of intimation from** **company.—(1) The Registrar may, on evidence being given to his satisfaction with respect to any** registered charge,— (a) that the debt for which the charge was given has been paid or satisfied in whole or in part; or (b) that part of the property or undertaking charged has been released from the charge or has ceased to form part of the company’s property or undertaking, enter in the register of charges a memorandum of satisfaction in whole or in part, or of the fact that part of the property or undertaking has been released from the charge or has ceased to form part of the company’s property or undertaking, as the case may be, notwithstanding the fact that no intimation has been received by him from the company. (2) The Registrar shall inform the affected parties within thirty days of making the entry in the register of charges kept under sub-section (1) of section 81. **84. Intimation of appointment of receiver or manager.—(1) If any person obtains an order for the** appointment of a receiver of, or of a person to manage, the property, subject to a charge, of a company or if any person appoints such receiver or person under any power contained in any instrument, he shall, within a period of thirty days from the date of the passing of the order or of the making of the appointment, give notice of such appointment to the company and the Registrar along with a copy of the order or instrument and the Registrar shall, on payment of the prescribed fees, register particulars of the receiver, person or instrument in the register of charges. (2) Any person appointed under sub-section (1) shall, on ceasing to hold such appointment, give to the company and the Registrar a notice to that effect and the Registrar shall register such notice. **85. Company’s register of charges.—(1) Every company shall keep at its registered office a register** of charges in such form and in such manner as may be prescribed, which shall include there in all charges and floating charges affecting any property or assets of the company or any of its undertakings, indicating in each case such particulars as may be prescribed: Provided that a copy of the instrument creating the charge shall also be kept at the registered office of the company along with the register of charges. 1. Omitted by Act 1 of 2018, s. 20, for certain words (w.e.f. 5-7-2018). 2. The Proviso ins. by s. 20, ibid. (w.e.f. 5-7-2018). 65 ----- (2) The register of charges and instrument of charges, kept under sub-section (1) shall be open for inspection during business hours— (a) by any member or creditor without any payment of fees; or (b) by any other person on payment of such fees as may be prescribed, subject to such reasonable restrictions as the company may, by its articles, impose. **86. Punishment for contravention.—[1][ [2][(1)] If any company is in default in complying with any of** the provisions of this Chapter, the company shall be liable to a penalty of five lakh rupees and every officer of the company who is in default shall be liable to a penalty of fifty thousand rupees]. 3[(2) If any person willfully furnishes any false or incorrect information or knowingly suppresses any material information, required to be registered in accordance with the provisions of section 77, he shall be liable for action under section 447.] 4[87. Rectification by Central Government in Register of charges.—The Central Government on being satisfied that— (a) the omission to give intimate to the Registrar of the payment or satisfaction of a charge, within the time required under this Chapter; or (b) the omission or misstatement of any particulars, in any filing previously made to the Registrar with respect to any charge or modification thereof or with respect to any memorandum of satisfaction or other entry made in pursuance of section 82 or section 83, was accidental or due to inadvertence or some other sufficient cause or it is not of a nature to prejudice the position of creditors or shareholders of the company, it may, on the application of the company or any person interested and on such terms and conditions as it deems just and expedient, direct that the time for the giving of intimation of payment or satisfaction shall be extended or, as the case may require, that the omission or misstatement shall be rectified.] CHAPTER VII MANAGEMENT AND ADMINISTRATION **88. Register of members, etc.—(1) Every company shall keep and maintain the following registers in** such form and in such manner as may be prescribed, namely:— (a) register of members indicating separately for each class of equity and preference shares held by each member residing in or outside India; (b) register of debenture-holders; and (c) register of any other security holders. (2) Every register maintained under sub-section (1) shall include an index of the names included therein. (3) The register and index of beneficial owners maintained by a depository under section 11 of the Depositories Act, 1996 (22 of 1996), shall be deemed to be the corresponding register and index for the purposes of this Act. (4) A company may, if so authorised by its articles, keep in any country outside India, in such manner as may be prescribed, a part of the register referred to in sub-section (1), called “foreign register” containing the names and particulars of the members, debenture-holders, other security holders or beneficial owners residing outside India. 5[(5) If a company does not maintain a register of members or debenture-holders or other security holders or fails to maintain them in accordance with the provisions of sub-section (1) or sub-section (2), the 1. Subs. by Act 29 of 2020, s. 16, for sub-section (1) (w.e.f. 21-12-2020). 2. Section 86 numbered as sub-section (1) thereof by Act 22 of 2019, s.12 (w.e.f. 2-11-2018). 3. Ins. by s. 12, ibid. (w.e.f. 2-11-2018). 4. Subs. by s. 13, ibid., for section 86 (w.e.f. 2-11-2018). 5. Subs. by Act 29 of 2020, s. 17, for sub-section (5) (w.e.f. 21-12-2020). 66 ----- company shall be liable to a penalty of three lakh rupees and every officer of the company who is in default shall be liable to a penalty of fifty thousand rupees.] **89. Declaration in respect of beneficial interest in any share.—(1) Where the name of a person is** entered in the register of members of a company as the holder of shares in that company but who does not hold the beneficial interest in such shares, such person shall make a declaration within such time and in such form as may be prescribed to the company specifying the name and other particulars of the person who holds the beneficial interest in such shares. (2) Every person who holds or acquires a beneficial interest in share of a company shall make a declaration to the company specifying the nature of his interest, particulars of the person in whose name the shares stand registered in the books of the company and such other particulars as may be prescribed. (3) Where any change occurs in the beneficial interest in such shares, the person referred to in sub section (1) and the beneficial owner specified in sub-section (2) shall, within a period of thirty days from the date of such change, make a declaration to the company in such form and containing such particulars as may be prescribed. (4) The Central Government may make rules to provide for the manner of holding and disclosing beneficial interest and beneficial ownership under this section. 1[(5) If any person fails to make a declaration as required under sub-section (1) or sub-section (2) or sub-section (3), he shall be liable to a penalty of fifty thousand rupees and in case of continuing failure, with a further penalty of two hundred rupees for each day after the first during which such failure continues, subject to a maximum of five lakh rupees.] (6) Where any declaration under this section is made to a company, the company shall make a note of such declaration in the register concerned and shall file, within thirty days from the date of receipt of declaration by it, a return in the prescribed form with the Registrar in respect of such declaration with such fees or additional fees as may be prescribed, [2]***. 3[(7) If a company, required to file a return under sub-section (6), fails to do so before the expiry of the time specified therein, the company and every officer of the company who is in default shall be liable to a penalty of one thousand rupees for each day during which such failure continues, subject to a maximum of five lakh rupees in the case of a company and two lakh rupees in case of an officer who is in default.] (8) No right in relation to any share in respect of which a declaration is required to be made under this section but not made by the beneficial owner, shall be enforceable by him or by any person claiming through him. (9) Nothing in this section shall be deemed to prejudice the obligation of a company to pay dividend to its members under this Act and the said obligation shall, on such payment, stand discharged. 4[(10) For the purposes of this section and section 90, beneficial interest in a share includes, directly or indirectly, through any contract, arrangement or otherwise, the right or entitlement of a person alone or together with any other person to— (i) exercise or cause to be exercised any or all of the rights attached to such share; or (ii) receive or participate in any dividend or other distribution in respect of such share.] 5[(11) The Central Government may, by notification, exempt any class or classes of persons from complying with any of the requirements of this section, except sub-section (10), if it is considered necessary to grant such exemption in the public interest and any such exemption may be granted either unconditionally or subject to such conditions as may be specified in the notification.] 6[90. Register of significant beneficial owners in a company.—(1) Every individual, who acting alone or together, or through one or more persons or trust, including a trust and persons resident outside India, holds beneficial interests, of not less than twenty-five per cent. or such other percentage as may be prescribed, in shares of a company or the right to exercise, or the actual exercising of significant influence 1. Subs. by Act 29 of 2020, s. 18, for sub-section (5) (w.e.f. 21-12-2020). 2. The words and figures “within the time specified under section 403” omitted by Act 1 of 2018, s. 21 (w.e.f. 7-5-2018). 3. Subs. by Act 29 of 2020, s. 18, for sub-section (7) (w.e.f. 21-12-2020). 4. Ins. by Act 1 of 2018, s. 21, (w.e.f. 13-6-2018). 5. Ins. by Act 29 of 2020, s. 18 (w.e.f. 22-1-2021). 6. Subs. by Act 1 of 2018, s. 22, for section 90 (w.e.f. 13-6-2018). 67 ----- or control as defined in clause (27) of section 2, over the company (herein referred to as “significant beneficial owner”), shall make a declaration to the company, specifying the nature of his interest and other particulars, in such manner and within such period of acquisition of the beneficial interest or rights and any change thereof, as may be prescribed: Provided that the Central Government may prescribe a class or classes of persons who shall not be required to make declaration under this sub-section. (2) Every company shall maintain a register of the interest declared by individuals under sub section (1) and changes therein which shall include the name of individual, his date of birth, address, details of ownership in the company and such other details as may be prescribed. (3) The register maintained under sub-section (2) shall be open to inspection by any member of the company on payment of such fees as may be prescribed. (4) Every company shall file a return of significant beneficial owners of the company and changes therein with the Registrar containing names, addresses and other details as may be prescribed within such time, in such form and manner as may be prescribed. 1[(4A) Every company shall take necessary steps to identify an individual who is a significant beneficial owner in relation to the company and require him to comply with the provisions of this section.] (5) A company shall give notice, in the prescribed manner, to any person (whether or not a member of the company) whom the company knows or has reasonable cause to believe— (a) to be a significant beneficial owner of the company; (b) to be having knowledge of the identity of a significant beneficial owner or another person likely to have such knowledge; or (c) to have been a significant beneficial owner of the company at any time during the three years immediately preceding the date on which the notice is issued, and who is not registered as a significant beneficial owner with the company as required under this section. (6) The information required by the notice under sub-section (5) shall be given by the concerned person within a period not exceeding thirty days of the date of the notice. (7) The company shall,— (a) where that person fails to give the company the information required by the notice within the time specified therein; or (b) where the information given is not satisfactory, apply to the Tribunal within a period of fifteen days of the expiry of the period specified in the notice, for an order directing that the shares in question be subject to restrictions with regard to transfer of interest, suspension of all rights attached to the shares and such other matters as may be prescribed. (8) On any application made under sub-section (7), the Tribunal may, after giving an opportunity of being heard to the parties concerned, make such order restricting the rights attached with the shares within a period of sixty days of receipt of application or such other period as may be prescribed. 2[(9) The company or the person aggrieved by the order of the Tribunal may make an application to the Tribunal for relaxation or lifting of the restrictions placed under sub-section (8), within a period of one year from the date of such order: Provided that if no such application has been filed within a period of one year from the date of the order under sub-section (8), such shares shall be transferred, without any restrictions, to the authority constituted under sub-section (5) of section 125, in such manner as may be prescribed;] 3[(9A) The Central Government may make rules for the purposes of this section.] 4[(10) If any person fails to make a declaration as required under sub-section (1), he shall be liable to a penalty of fifty thousand rupees and in case of continuing failure, with a further penalty of one thousand 1. Ins. by Act 22 of 2019, s. 14 (w.e.f. 15-8-2019). 2. Subs. by Act 22 of 2019, s. 14, for sub-section (9) (w.e.f. 2-11-2018). 3. Ins. by s. 14, ibid. (w.e.f. 15-8-2019). 4. Subs.by Act 29 of 2020, s. 19, for sub-section (10) (w.e.f. 21-12-2020). 68 ----- rupees for each day after the first during which such failure continues, subject to a maximum of two lakh rupees.] 1[(11) If a company, required to maintain register under sub-section (2) and file the information under sub-section (4) [2][or required to take necessary steps under sub-section (4A)], fails to do so or denies inspection as provided therein, the company shall be liable to a penalty of one lakh rupees and in case of continuing failure, with a further penalty of five hundred rupees for each day, after the first during which such failure continues, subject to a maximum of five lakh rupees and every officer of the company who is in default shall be liable to a penalty of twenty-five thousand rupees and in case of continuing failure, with a further penalty of two hundred rupees for each day, after the first during which such failure continues, subject to a maximum of one lakh rupees.] (12) If any person wilfully furnishes any false or incorrect information or suppresses any material information of which he is aware in the declaration made under this section, he shall be liable to action under section 447.] **91. Power to close register of members or debenture-holders or other security holders.—(1) A** company may close the register of members or the register of debenture-holders or the register of other security holders for any period or periods not exceeding in the aggregate forty-five days in each year, but not exceeding thirty days at any one time, subject to giving of previous notice of at least seven days or such lesser period as may be specified by Securities and Exchange Board for listed companies or the companies which intend to get their securities listed, in such manner as may be prescribed. (2) If the register of members or of debenture-holders or of other security holders is closed without giving the notice as provided in sub-section (1), or after giving shorter notice than that so provided, or for a continuous or an aggregate period in excess of the limits specified in that sub-section, the company and every officer of the company who is in default shall be liable to a penalty of five thousand rupees for every day subject to a maximum of one lakh rupees during which the register is kept closed. **92. Annual return.—(1) Every company shall prepare a return (hereinafter referred to as the annual** return) in the prescribed form containing the particulars as they stood on the close of the financial year regarding— (a) its registered office, principal business activities, particulars of its holding, subsidiary and associate companies; (b) its shares, debentures and other securities and shareholding pattern; 2* - - - (d) its members and debenture-holders along with changes therein since the close of the previous financial year; (e) its promoters, directors, key managerial personnel along with changes there in since the close of the previous financial year; (f) meetings of members or a class thereof, Board and its various committees along with attendance details; (g) remuneration of directors and key managerial personnel; (h) penalty or punishment imposed on the company, its directors or officers and details of compounding of offences and appeals made against such penalty or punishment; (i) matters relating to certification of compliances, disclosures as may be prescribed; (j) details, as may be prescribed, in respect of shares held by or on behalf of the Foreign Institutional Investors [3]***; and (k) such other matters as may be prescribed, and signed by a director and the company secretary, or where there is no company secretary, by a company secretary in practice: Provided that in relation to One Person Company and small company, the annual return shall be signed by the company secretary, or where there is no company secretary, by the director of the company. 1. Subs. by Act 29 of 2020, s. 19, for sub-section (11) (w.e.f. 21-12-2020). 2. Clause (c) omitted by Act 1 of 2018, s. 23 (w.e.f. 5-3-2021). 3. The words “indicating their names, addresses, countries of incorporation, registration and percentage of shareholding held by them” omitted by s. 23, ibid (w.e.f. 5-3-2021). 69 ----- 1[Provided further that the Central Government may prescribe abridged form of annual return for “One Person Company, small company and such other class of classes of companies as may be prescribed”.] (2) [2][The annual return, filed by a listed company or, by a company having such paid-up capital or turnover as may be prescribed] shall be certified by a company secretary in practice in the prescribed form, stating that the annual return discloses the facts correctly and adequately and that the company has complied with all the provisions of this Act. (3) An extract of the annual return in such form as may be prescribed shall form part of the Board’s report. (4) Every company shall file with the Registrar a copy of the annual return, within sixty days from the date on which the annual general meeting is held or where no annual general meeting is held in any year within sixty days from the date on which the annual general meeting should have been held together with the statement specifying the reasons for not holding the annual general meeting, with such fees or additional fees as may be prescribed, [3]***. 4[(5) If any company fails to file its annual return under sub-section (4), before the expiry of the period specified therein, such company and its every officer who is in default shall be liable to a penalty of [5][ten thousand rupees] and in case of continuing failure, with a further penalty of one hundred rupees for each day after the first during which such failure continues, subject to a maximum of [6][two lakh rupees in case of a company and fifty thousand rupees in case of an officer who is an default].] (6) If a company secretary in practice certifies the annual return otherwise than in conformity with the requirements of this section or the rules made thereunder, he shall be [7][liable to a penalty of two lakh rupees]. **93. [Return to be filed with Registrar in case promoter’s stake changes.]** _Omitted by the Companies Act,_ 2017 (1 of 2018), s. 24 (w.e.f. 13-6-2018). **94. Place of keeping and inspection of registers, returns, etc.—(1) The registers required to be kept and** maintained by a company under section 88 and copies of the annual return filed under section 92 shall be kept at the registered office of the company: Provided that such registers or copies of return may also be kept at any other place in India in which more than one-tenth of the total number of members entered in the register of members reside, if approved by a special resolution passed at a general meeting of the company [8]***: Provided further that the period for which the registers, returns and records are required to be kept shall be such as may be prescribed. (2) The registers and their indices, except when they are closed under the provisions of this Act, and the copies of all the returns shall be open for inspection by any member, debenture-holder, other security holder or beneficial owner, during business hours without payment of any fees and by any other person on payment of such fees as may be prescribed. (3) Any such member, debenture-holder, other security holder or beneficial owner or any other person may— (a) take extracts from any register, or index or return without payment of any fee; or (b) require a copy of any such register or entries therein or return on payment of such fees as may be prescribed. 9[Provided that such particulars of the register or index or return as may be prescribed shall not be available for inspection under sub-section (2) or for taking extracts or copies under this sub-section.]. 1. Ins. by Act 1 of 2018, s. 23 (w.e.f. 5-3-2021). 2. Subs. by S.O. 1177 (E), dated 29th April, 2014 for certain words (w.e.f. 29-4-2014). 3. The words “within the time as specified, under section 403” omitted by Act 1 of 2018, s. 23 (w.e.f. 7-5-2018). 4. Subs. by Act 22 of 2019, s. 15, for sub-section (5) (w.e.f. 2-11-2018). 5. Subs. by Act 29 of 2020, s. 20, for “fifty thousand rupees” (w.e.f. 21-12-2020). 6. Subs. by s. 20, ibid., for “five lakh rupees” (w.e.f. 21-12-2020). 7. Subs. by s. 20, ibid., for “punishable with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees” (w.e.f. 21-12-2020). 8. The words “and the Registrar has been given a copy of the proposed special resolution in advance” omitted by Act 1 of 2018, s. 25 (w.e.f. 13-6-2018). 9. The proviso ins. by Act 1 of 2018, s. 25 (w.e.f. 13-6-2018). 70 ----- (4) If any inspection or the making of any extract or copy required under this section is refused, the company and every officer of the company who is in default shall be liable, for each such default, to a penalty of one thousand rupees for every day subject to a maximum of one lakh rupees during which the refusal or default continues. (5) The Central Government may also, by order, direct an immediate inspection of the document, or direct that the extract required shall forthwith be allowed to be taken by the person requiring it. **95. Registers, etc., to be evidence.—The registers, their indices and copies of annual returns** maintained under sections 88 and 94 shall be prima facie evidence of any matter directed or authorised to be inserted therein by or under this Act. **96. Annual general meeting.—(1) Every company other than a One Person Company shall in each** year hold in addition to any other meetings, a general meeting as its annual general meeting and shall specify the meeting as such in the notices calling it, and not more than fifteen months shall elapse between the date of one annual general meeting of a company and that of the next: Provided that in case of the first annual general meeting, it shall be held within a period of nine months from the date of closing of the first financial year of the company and in any other case, within a period of six months, from the date of closing of the financial year: Provided further that if a company holds its first annual general meeting as aforesaid, it shall not be necessary for the company to hold any annual general meeting in the year of its incorporation: Provided also that the Registrar may, for any special reason, extend the time within which any annual general meeting, other than the first annual general meeting, shall be held, by a period not exceeding three months. (2) Every annual general meeting shall be called during business hours, that is, between 9 a.m. and 6 p.m. on any day that is not a National Holiday and shall be held either at the registered office of the company or at some other place within the city, town or village in which the registered office of the company is situate: 1[Provided that annual general meeting of an unlisted company may be held at any place in India if consent is given in writing or by electronic mode by all the members in advance: Provided further that] the Central Government may exempt any company from the provisions of this sub-section subject to such conditions as it may impose. _Explanation.—For the purposes of this sub-section, “National Holiday” means and includes a day_ declared as National Holiday by the Central Government. **97. Power of Tribunal to call annual general meeting.—(1) If any default is made in holding the** annual general meeting of a company under section 96, the Tribunal may, notwithstanding anything contained in this Act or the articles of the company, on the application of any member of the company, call, or direct the calling of, an annual general meeting of the company and give such ancillary or consequential directions as the Tribunal thinks expedient: Provided that such directions may include a direction that one member of the company present in person or by proxy shall be deemed to constitute a meeting. (2) A general meeting held in pursuance of sub-section (1) shall, subject to any directions of the Tribunal, be deemed to be an annual general meeting of the company under this Act. **98. Power of Tribunal to call meetings of members, etc.—(1) If for any reason it is impracticable to** call a meeting of a company, other than an annual general meeting, in any manner in which meetings of the company may be called, or to hold or conduct the meeting of the company in the manner prescribed by this Act or the articles of the company, the Tribunal may, either suo motu or on the application of any director or member of the company who would be entitled to vote at the meeting,— (a) order a meeting of the company to be called, held and conducted in such manner as the Tribunal thinks fit; and 1. Subs. by Act 1 of 2018, s. 26, for “Provided that” (w.e.f. 13-6-2018). 71 ----- (b) give such ancillary or consequential directions as the Tribunal thinks expedient, including directions modifying or supplementing in relation to the calling, holding and conducting of the meeting, the operation of the provisions of this Act or articles of the company: Provided that such directions may include a direction that one member of the company present in person or by proxy shall be deemed to constitute a meeting. (2) Any meeting called, held and conducted in accordance with any order made under sub-section (1) shall, for all purposes, be deemed to be a meeting of the company duly called, held and conducted. **99. Punishment for default in complying with provisions of sections 96 to 98.—If any default is** made in holding a meeting of the company in accordance with section 96 or section 97 or section 98 or in complying with any directions of the Tribunal, the company and every officer of the company who is in default shall be punishable with fine which may extend to one lakh rupees and in the case of a continuing default, with a further fine which may extend to five thousand rupees for every day during which such default continues. **100. Calling of extraordinary general meeting.—(1) The Board may, whenever it deems fit, call an** extraordinary general meeting of the company. 1[Provided that an extraordinary general meeting of the company, other than of the wholly owned subsidiary of a company incorporated outside India, shall be held at a place within India.] (2) The Board shall, at the requisition made by,— (a) in the case of a company having a share capital, such number of members who hold, on the date of the receipt of the requisition, not less than one-tenth of such of the paid-up share capital of the company as on that date carries the right of voting; (b) in the case of a company not having a share capital, such number of members who have, on the date of receipt of the requisition, not less than one-tenth of the total voting power of all the members having on the said date a right to vote, call an extraordinary general meeting of the company within the period specified in sub-section (4). (3) The requisition made under sub-section (2) shall set out the matters for the consideration of which the meeting is to be called and shall be signed by the requisitionists and sent to the registered office of the company. (4) If the Board does not, within twenty-one days from the date of receipt of a valid requisition in regard to any matter, proceed to call a meeting for the consideration of that matter on a day not later than fortyfive days from the date of receipt of such requisition, the meeting may be called and held by the requisitionists themselves within a period of three months from the date of the requisition. (5) A meeting under sub-section (4) by the requisitionists shall be called and held in the same manner in which the meeting is called and held by the Board. (6) Any reasonable expenses incurred by the requisitionists in calling a meeting under sub-section (4) shall be reimbursed to the requisitionists by the company and the sums so paid shall be deducted from any fee or other remuneration under section 197 payable to such of the directors who were in default in calling the meeting. **101. Notice of meeting.—(1) A general meeting of a company may be called by giving not less than** clear twenty-one days’ notice either in writing or through electronic mode in such manner as maybe prescribed: 2[Provided that a general meeting may be called after giving shorter notice than that specified in this sub-section if consent, in writing or by electronic mode, is accorded thereto— (i) in the case of an annual general meeting, by not less than ninty-five per cent. of the members entitled to vote thereat; and (ii) in the case of any other general meeting, by members of the company— 1. Ins. by Act 1 of 2018, s. 27 (w.e.f. 9-2-2018). 2. The proviso subs. by s. 28, ibid., (w.e.f. 9-2-2018). 72 ----- (a) holding, if the company has a share capital, majority in number of members entitled to vote and who represent not less than ninety-five per cent. of such part of the paid-up share capital of the company as gives a right to vote at the meeting; or (b) having, if the company has no share capital, not less than ninty-five per cent. of the total voting power exercisable at that meeting: Provided further that where any member of a company is entitled to vote only on some resolution or resolutions to be moved at a meeting and not on the others, those members shall be taken into account for the purposes of this sub-section in respect of the former resolution or resolutions and not in respect of the latter.] (2) Every notice of a meeting shall specify the place, date, day and the hour of the meeting and shall contain a statement of the business to be transacted at such meeting. (3) The notice of every meeting of the company shall be given to— (a) every member of the company, legal representative of any deceased member or the assignee of an insolvent member; (b) the auditor or auditors of the company; and (c) every director of the company. (4) Any accidental omission to give notice to, or the non-receipt of such notice by, any member or other person who is entitled to such notice for any meeting shall not invalidate the proceedings of the meeting. **102. Statement to be annexed to notice.—(1) A statement setting out the following material facts** concerning each item of special business to be transacted at a general meeting, shall be annexed to the notice calling such meeting, namely:— (a) the nature of concern or interest, financial or otherwise, if any, in respect of each items of— (i) every director and the manager, if any; (ii) every other key managerial personnel; and (iii) relatives of the persons mentioned in sub-clauses (i) and (ii); (b) any other information and facts that may enable members to understand the meaning, scope and implications of the items of business and to take decision thereon. (2) For the purposes of sub-section (1),— (a) in the case of an annual general meeting, all business to be transacted thereat shall be deemed special, other than— (i) the consideration of financial statements and the reports of the Board of Directors and auditors; (ii) the declaration of any dividend; (iii) the appointment of directors in place of those retiring; (iv) the appointment of, and the fixing of the remuneration of, the auditors; and (b) in the case of any other meeting, all business shall be deemed to be special: Provided that where any item of special business to be transacted at a meeting of the company relates to or affects any other company, the extent of shareholding interest in that other company of every promoter, director, manager, if any, and of every other key managerial personnel of the first mentioned company shall, if the extent of such shareholding is not less than two per cent. of the paid-up share capital of that company, also be set out in the statement. 73 ----- (3) Where any item of business refers to any document, which is to be considered at the meeting, the time and place where such document can be inspected shall be specified in the statement under subsection (1). (4) Where as a result of the non-disclosure or insufficient disclosure in any statement referred to in sub section (1), being made by a promoter, director, manager, if any, or other key managerial personnel, any benefit which accrues to such promoter, director, manager or other key managerial personnel or their relatives, either directly or indirectly, the promoter, director, manager or other key managerial personnel, as the case may be, shall hold such benefit in trust for the company, and shall, without prejudice to any other action being taken against him under this Act or under any other law for the time being in force, be liable to compensate the company to the extent of the benefit received by him. 1[(5) Without prejudice to the provisions of sub-section (4), if any default is made in complying with the provisions of this section, every promoter, director, manager or other key managerial personnel of the company who is in default shall be liable to a penalty of fifty thousand rupees or five times the amount of benefit accruing to the promoter, director, manager or other key managerial personnel or any of his relatives, whichever is higher.] **103. Quorum for meetings.—(1) Unless the articles of the company provide for a larger number,—** (a) in case of a public company,— (i) five members personally present if the number of members as on the date of meeting is not more than one thousand; (ii) fifteen members personally present if the number of members as on the date of meeting is more than one thousand but up to five thousand; (iii) thirty members personally present if the number of members as on the date of the meeting exceeds five thousand; (b) in the case of a private company, two members personally present, shall be the quorum for a meeting of the company. (2) If the quorum is not present within half-an-hour from the time appointed for holding a meeting of the company— (a) the meeting shall stand adjourned to the same day in the next week at the same time and place, or to such other date and such other time and place as the Board may determine; or (b) the meeting, if called by requisitionists under section 100, shall stand cancelled: Provided that in case of an adjourned meeting or of a change of day, time or place of meeting under clause (a), the company shall give not less than three days notice to the members either individually or by publishing an advertisement in the newspapers (one in English and one in vernacular language) which is in circulation at the place where the registered office of the company is situated. (3) If at the adjourned meeting also, a quorum is not present within half-an-hour from the time appointed for holding meeting, the members present shall be the quorum. **104. Chairman of meetings.—(1) Unless the articles of the company otherwise provide, the members** personally present at the meeting shall elect one of themselves to be the Chairman thereof on a show of hands. (2) If a poll is demanded on the election of the Chairman, it shall be taken forthwith in accordance with the provisions of this Act and the Chairman elected on a show of hands under sub-section (1) shall continue to be the Chairman of the meeting until some other person is elected as Chairman as a result of the poll, and such other person shall be the Chairman for the rest of the meeting. 1. Subs. by Act 22 of 2019, s. 16, for sub-section (5) (w.e.f. 2-11-2018). 74 ----- **105. Proxies.—(1) Any member of a company entitled to attend and vote at a meeting of the company** shall be entitled to appoint another person as a proxy to attend and vote at the meeting on his behalf: Provided that a proxy shall not have the right to speak at such meeting and shall not been titled to vote except on a poll: Provided further that, unless the articles of a company otherwise provide, this sub-section shall not apply in the case of a company not having a share capital: Provided also that the Central Government may prescribe a class or classes of companies whose members shall not be entitled to appoint another person as a proxy: Provided also that a person appointed as proxy shall act on behalf of such member or number of members not exceeding fifty and such number of shares as may be prescribed. (2) In every notice calling a meeting of a company which has a share capital, or the articles of which provide for voting by proxy at the meeting, there shall appear with reasonable prominence a statement that a member entitled to attend and vote is entitled to appoint a proxy, or, where that is allowed, one or more proxies, to attend and vote instead of himself, and that a proxy need not be a member. (3) If default is made in complying with sub-section (2), every officer of the company who is in default shall be [1][liable to a penalty of five thousands rupees]. (4) Any provision contained in the articles of a company which specifies or requires a longer period than forty-eight hours before a meeting of the company, for depositing with the company or any other person any instrument appointing a proxy or any other document necessary to show the validity or otherwise relating to the appointment of a proxy in order that the appointment may be effective at such meeting, shall have effect as if a period of forty-eight hours had been specified in or required by such provision for such deposit. (5) If for the purpose of any meeting of a company, invitations to appoint as proxy a person or one of a number of persons specified in the invitations are issued at the company’s expense to any member entitled to have a notice of the meeting sent to him and to vote thereat by proxy, every officer of the company [2][who issues the invitation as aforesaid or authorises or permits their issue, shall be liable to a penalty of fifty thousand rupees]: Provided that an officer shall not be [3][liable] under this sub-section by reason only of the issue to a member at his request in writing of a form of appointment naming the proxy, or of a list of persons willing to act as proxies, if the form or list is available on request in writing to every member entitled to vote at the meeting by proxy. (6) The instrument appointing a proxy shall— (a) be in writing; and (b) be signed by the appointer or his attorney duly authorised in writing or, if the appointer is a body corporate, be under its seal or be signed by an officer or an attorney duly authorised by it. (7) An instrument appointing a proxy, if in the form as may be prescribed, shall not be questioned on the ground that it fails to comply with any special requirements specified for such instrument by the articles of a company. (8) Every member entitled to vote at a meeting of the company, or on any resolution to be moved thereat, shall be entitled during the period beginning twenty-four hours before the time fixed for the commencement of the meeting and ending with the conclusion of the meeting, to inspect the proxies lodged, at any time during the business hours of the company, provided not less than three days’ notice in writing of the intention so to inspect is given to the company. 1. Subs. by Act 22 of 2019, s. 17, for “punishable with fine which may extend to five thousand rupees” (w.e.f. 2-11-2018). 2. Subs. by Act 29 of 2020, s. 21, for certain words (w.e.f. 21-12-2020). 3. Subs. by s. 21, ibid., for “punishable” (w.e.f. 21-12-2020). 75 ----- **106. Restriction on voting rights.—(1) Notwithstanding anything contained in this Act, the articles of** a company may provide that no member shall exercise any voting right in respect of any shares registered in his name on which any calls or other sums presently payable by him have not been paid, or in regard to which the company has exercised any right of lien. (2) A company shall not, except on the grounds specified in sub-section (1), prohibit any member from exercising his voting right on any other ground. (3) On a poll taken at a meeting of a company, a member entitled to more than one vote, or his proxy, where allowed, or other person entitled to vote for him, as the case may be, need not, if he votes, use all his votes or cast in the same way all the votes he uses. **107. Voting by show of hands.—(1) At any general meeting, a resolution put to the vote of the meeting** shall, unless a poll is demanded under section 109 or the voting is carried out electronically, be decided on a show of hands. (2) A declaration by the Chairman of the meeting of the passing of a resolution or otherwise by show of hands under sub-section (1) and an entry to that effect in the books containing the minutes of the meeting of the company shall be conclusive evidence of the fact of passing of such resolution or otherwise. **108. Voting through electronic means.—The Central Government may prescribe the class or classes** of companies and manner in which a member may exercise his right to vote by the electronic means. **109. Demand for poll.—(1) Before or on the declaration of the result of the voting on any resolution** on show of hands, a poll may be ordered to be taken by the Chairman of the meeting on his own motion, and shall be ordered to be taken by him on a demand made in that behalf,— (a) in the case a company having a share capital, by the members present in person or by proxy, where allowed, and having not less than one-tenth of the total voting power or holding shares on which an aggregate sum of not less than five lakh rupees or such higher amount as may be prescribed has been paid-up; and (b) in the case of any other company, by any member or members present in person or by proxy, where allowed, and having not less than one-tenth of the total voting power. (2) The demand for a poll may be withdrawn at any time by the persons who made the demand. (3) A poll demanded for adjournment of the meeting or appointment of Chairman of the meeting shall be taken forthwith. (4) A poll demanded on any question other than adjournment of the meeting or appointment of Chairman shall be taken at such time, not being later than forty-eight hours from the time when the demand was made, as the Chairman of the meeting may direct. (5) Where a poll is to be taken, the Chairman of the meeting shall appoint such number of persons, as he deems necessary, to scrutinise the poll process and votes given on the poll and to report thereon to him in the manner as may be prescribed. (6) Subject to the provisions of this section, the Chairman of the meeting shall have power to regulate the manner in which the poll shall be taken. (7) The result of the poll shall be deemed to be the decision of the meeting on the resolution on which the poll was taken. **110. Postal ballot.—(1) Notwithstanding anything contained in this Act, a company—** (a) shall, in respect of such items of business as the Central Government may, by notification, declare to be transacted only by means of postal ballot; and (b) may, in respect of any item of business, other than ordinary business and any business in respect of which directors or auditors have a right to be heard at any meeting, transact by means of postal ballot, in such manner as may be prescribed, instead of transacting such business at a general meeting: 76 ----- 1[Provided that any item of business required to be transacted by means of postal ballot under clause (a), may be transacted at a general meeting by a company which is required to provide the facility to members to vote by electronic means under section 108, in the manner provided in that section.] (2) If a resolution is assented to by the requisite majority of the shareholders by means of postal ballot, it shall be deemed to have been duly passed at a general meeting convened in that behalf. **111. Circulation of members’ resolution.—(1) A company shall, on requisition in writing of such** number of members, as required in section 100,— (a) give notice to members of any resolution which may properly be moved and is intended to be moved at a meeting; and (b) circulate to members any statement with respect to the matters referred to in proposed resolution or business to be dealt with at that meeting. (2) A company shall not be bound under this section to give notice of any resolution or to circulate any statement unless— (a) a copy of the requisition signed by the requisitionists (or two or more copies which, between them, contain the signatures of all the requisitionists) is deposited at the registered office of the company,— (i) in the case of a requisition requiring notice of a resolution, not less than six weeks before the meeting; (ii) in the case of any other requisition, not less than two weeks before the meeting; and (b) there is deposited or tendered with the requisition, a sum reasonably sufficient to meet the company’s expenses in giving effect thereto: Provided that if, after a copy of a requisition requiring notice of a resolution has been deposited at the registered office of the company, an annual general meeting is called on a date within six weeks after the copy has been deposited, the copy, although not deposited within the time required by this sub-section, shall be deemed to have been properly deposited for the purposes thereof. (3) The company shall not be bound to circulate any statement as required by clause (b) of sub section (1), if on the application either of the company or of any other person who claims to be aggrieved, the Central Government, by order, declares that the rights conferred by this section are being abused to secure needless publicity for defamatory matter. (4) An order made under sub-section (3) may also direct that the cost incurred by the company by virtue of this section shall be paid to the company by the requisitionists, notwithstanding that they are not parties to the application. (5) If any default is made in complying with the provisions of this section, the company and every officer of the company who is in default shall be liable to a penalty of twenty-five thousand rupees. **112. Representation of President and Governors in meetings.—(1) The President of India or the** Governor of a State, if he is a member of a company, may appoint such person as he thinks fit to act as his representative at any meeting of the company or at any meeting of any class of members of the company. (2) A person appointed to act under sub-section (1) shall, for the purposes of this Act, be deemed to be a member of such a company and shall be entitled to exercise the same rights and powers, including the right to vote by proxy and postal ballot, as the President or, as the case may be, the Governor could exercise as a member of the company. **113. Representation of corporations at meeting of companies and of creditors.—(1) A body** corporate, whether a company within the meaning of this Act or not, may, — 1. The Proviso ins. by Act 1 of 2018, s. 29 (w.e.f. 9-2-2018). 77 ----- (a) if it is a member of a company within the meaning of this Act, by resolution of its Board of Directors or other governing body, authorise such person as it thinks fit to act as its representative at any meeting of the company, or at any meeting of any class of members of the company; (b) if it is a creditor, including a holder of debentures, of a company within the meaning of this Act, by resolution of its directors or other governing body, authorise such person as it thinks fit to act as its representative at any meeting of any creditors of the company held in pursuance of this Act or of any rules made thereunder, or in pursuance of the provisions contained in any debenture or trust deed, as the case may be. (2) A person authorised by resolution under sub-section (1) shall be entitled to exercise the same rights and powers, including the right to vote by proxy and by postal ballot, on behalf of the body corporate which he represents as that body could exercise if it were an individual member, creditor or holder of debentures of the company. **114. Ordinary and special resolutions.—(1) A resolution shall be an ordinary resolution if the notice** required under this Act has been duly given and it is required to be passed by the votes cast, whether on a show of hands, or electronically or on a poll, as the case may be, in favour of the resolution, including the casting vote, if any, of the Chairman, by members who, being entitled so to do, vote in person, or where proxies are allowed, by proxy or by postal ballot, exceed the votes, if any, cast against the resolution by members, so entitled and voting. (2) A resolution shall be a special resolution when— (a) the intention to propose the resolution as a special resolution has been duly specified in the notice calling the general meeting or other intimation given to the members of the resolution; (b) the notice required under this Act has been duly given; and (c) the votes cast in favour of the resolution, whether on a show of hands, or electronically or on a poll, as the case may be, by members who, being entitled so to do, vote in person or by proxy or by postal ballot, are required to be not less than three times the number of the votes, if any, cast against the resolution by members so entitled and voting. **115. Resolutions requiring special notice.—Where, by any provision contained in this Act or in the** articles of a company, special notice is required of any resolution, notice of the intention to move such resolution shall be given to the company by such number of members holding not less than one per cent. of total voting power or holding shares on which such aggregate sum not exceeding five lakh rupees, as may be prescribed, has been paid-up and the company shall give its members notice of the resolution in such manner as may be prescribed. **116. Resolutions passed at adjourned meeting.—Where a resolution is passed at an adjourned** meeting of— (a) a company; or (b) the holders of any class of shares in a company; or (c) the Board of Directors of a company, the resolution shall, for all purposes, be treated as having been passed on the date on which it was in fact passed, and shall not be deemed to have been passed on any earlier date. **117. Resolutions and agreements to be filed.—(1) A copy of every resolution or any agreement, in** respect of matters specified in sub-section (3) together with the explanatory statement under section 102, if any, annexed to the notice calling the meeting in which the resolution is proposed, shall be filed with the Registrar within thirty days of the passing or making thereof in such manner and with such fees as may be prescribed [1]***: Provided that the copy of every resolution which has the effect of altering the articles and the copy of every agreement referred to in sub-section (3) shall be embodied in or annexed to every copy of the articles issued after passing of the resolution or making of the agreement. 2[(2) If any company fails to file the resolution or the agreement under sub-section (1) before the expiry of the period specified therein, such company shall be liable to a penalty of ten thousand rupees and in case of continuing failure, with a further penalty of one hundred rupees for each day after the first during which such failure continues, subject to a maximum of two lakh rupees and every officer of the company 1. The words and figures “within the time specified under section 403” omitted by Act 1 of 2018, s. 30 (w.e.f. 7-5-2018). 2. Subs. by Act 29 of 2020, s. 22, for sub-section (2) (w.e.f. 21-12-2020). 78 ----- who is in default including liquidator of the company, if any, shall be liable to a penalty of ten thousand rupees and in case of continuing failure, with a further penalty of one hundred rupees for each day after the first during which such failure continues, subject to a maximum of fifty thousand rupees.] (3) The provisions of this section shall apply to— (a) special resolutions; (b) resolutions which have been agreed to by all the members of a company, but which, if not so agreed to, would not have been effective for their purpose unless they had been passed as special resolutions; (c) any resolution of the Board of Directors of a company or agreement executed by a company, relating to the appointment, re-appointment or renewal of the appointment, or variation of the terms of appointment, of a managing director; (d) resolutions or agreements which have been agreed to by any class of members but which, if not so agreed to, would not have been effective for their purpose unless they had been passed by a specified majority or otherwise in some particular manner; and all resolutions or agreements which effectively bind such class of members though not agreed to by all those members; 1* - - - (f) resolutions requiring a company to be wound up voluntarily passed in pursuance of [2][section 59 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016)]; (g) resolutions passed in pursuance of sub-section (3) of section 179:[3]*** 4[Provided that no person shall be entitled under section 399 to inspect or obtain copies of such resolutions; [5]***] 6[Provided further that nothing contained in this clause shall apply in respect of a resolution passed to grant loans, or give guarantee or provide security in respect of loans under clause (f) of sub-section (3) of section 179 in the ordinary course of its business by— (a) a banking company; (b) any class of non-banking financial company registered under Chapter IIIB of the Reserve Bank of India Act, 1934 (2 of 1934), as may be prescribed in consultation with the Reserve Bank of India; (c) any class of housing finance company registered under the National Housing Bank Act, 1987 (53 of 1987), as may be prescribed in consultation with the National Housing Bank; and] (h) any other resolution or agreement as may be prescribed and placed in the public domain. **118. Minutes of proceedings of general meeting, meeting of Board of Directors and other meeting** **and resolutions passed by postal ballot.—(1) Every company shall cause minutes of the proceedings of** every general meeting of any class of shareholders or creditors, and every resolution passed by postal ballot and every meeting of its Board of Directors or of every committee of the Board, to be prepared and signed in such manner as may be prescribed and kept within thirty days of the conclusion of every such meeting concerned, or passing of resolution by postal ballot in books kept for that purpose with their pages consecutively numbered. (2) The minutes of each meeting shall contain a fair and correct summary of the proceedings thereat. (3) All appointments made at any of the meetings aforesaid shall be included in the minutes of the meeting. (4) In the case of a meeting of the Board of Directors or of a committee of the Board, the minutes shall also contain— 1. Clause (e) omitted by Act 1 of 2018, s. 30 (w.e.f. 7-5-2018). 2. Subs. by Act 31 of 2016, s. 255 and the Eleventh Schedule, for “section 304” (w.e.f. 15-11-2016). 3. The word “and” omitted by Act 21 of 2015, s. 9 (w.e.f. 29-5-2015). 4. Ins. by s. 9, ibid. (w.e.f. 29-5-2015). 5. The “and” omitted by Act 1 of 2018, s. 30 (w.e.f. 7-5-2018). 6. The proviso subs. by Act 29 of 2020, s. 22 (w.e.f. 22-1-2021). 79 ----- (a) the names of the directors present at the meeting; and (b) in the case of each resolution passed at the meeting, the names of the directors, if any, dissenting from, or not concurring with the resolution. (5) There shall not be included in the minutes, any matter which, in the opinion of the Chairman of the meeting,— (a) is or could reasonably be regarded as defamatory of any person; or (b) is irrelevant or immaterial to the proceedings; or (c) is detrimental to the interests of the company. (6) The Chairman shall exercise absolute discretion in regard to the inclusion or non-inclusion of any matter in the minutes on the grounds specified in sub-section (5). (7) The minutes kept in accordance with the provisions of this section shall be evidence of the proceedings recorded therein. (8) Where the minutes have been kept in accordance with sub-section (1) then, until the contrary is proved, the meeting shall be deemed to have been duly called and held, and all proceedings thereat to have duly taken place, and the resolutions passed by postal ballot to have been duly passed and in particular, all appointments of directors, key managerial personnel, auditors or company secretary in practice, shall be deemed to be valid. (9) No document purporting to be a report of the proceedings of any general meeting of a company shall be circulated or advertised at the expense of the company, unless it includes the matters required by this section to be contained in the minutes of the proceedings of such meeting. (10) Every company shall observe secretarial standards with respect to general and Board meetings specified by the Institute of Company Secretaries of India constituted under section 3 of the Company Secretaries Act, 1980 (56 of 1980), and approved as such by the Central Government. (11) If any default is made in complying with the provisions of this section in respect of any meeting, the company shall be liable to a penalty of twenty-five thousand rupees and every officer of the company who is in default shall be liable to a penalty of five thousand rupees. (12) If a person is found guilty of tampering with the minutes of the proceedings of meeting, he shall be punishable with imprisonment for a term which may extend to two years and with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees. **119. Inspection of minute-books of general meeting.—(1) The books containing the minutes of the** proceedings of any general meeting of a company or of a resolution passed by postal ballot, shall— (a) be kept at the registered office of the company; and (b) be open, during business hours, to the inspection by any member without charge, subject to such reasonable restrictions as the company may, by its articles or in general meeting, impose, so, however, that not less than two hours in each business day are allowed for inspection. (2) Any member shall be entitled to be furnished, within seven working days after he has made a request in that behalf to the company, and on payment of such fees as may be prescribed, with a copy of any minutes referred to in sub-section (1). (3) If any inspection under sub-section (1) is refused, or if any copy required under sub-section (2) is not furnished within the time specified therein, the company shall be liable to a penalty of twenty-five thousand rupees and every officer of the company who is in default shall be liable to a penalty of five thousand rupees for each such refusal or default, as the case may be. (4) In the case of any such refusal or default, the Tribunal may, without prejudice to any action being taken under sub-section (3), by order, direct an immediate inspection of the minute-books or direct that the copy required shall forthwith be sent to the person requiring it. **120. Maintenance and inspection of documents in electronic form.—Without prejudice to any other** provisions of this Act, any document, record, register, minutes, etc.,— 80 ----- (a) required to be kept by a company; or (b) allowed to be inspected or copies to be given to any person by a company under this Act, may be kept or inspected or copies given, as the case may be, in electronic form in such form and manner as may be prescribed. **121. Report on annual general meeting.—(1) Every listed public company shall prepare in the** prescribed manner a report on each annual general meeting including the confirmation to the effect that the meeting was convened, held and conducted as per the provisions of this Act and the rules made thereunder. (2) The company shall file with the Registrar a copy of the report referred to in sub-section (1) within thirty days of the conclusion of the annual general meeting with such fees as may be prescribed, or with such additional fees as may be prescribed, [1]***. **2[(3) If the company fails to file the report under sub-section (2) before the expiry of the period specified** therein, such company shall be liable to a penalty of one lakh rupees and in case of continuing failure, with a further penalty of five hundred rupees for each day after the first during which such failure continues, subject to a maximum of five lakh rupees and every officer of the company who is in default shall be liable to a penalty which shall not be less than twenty-five thousand rupees and in case of continuing failure, with a further penalty of five hundred rupees for each day after the first during which such failure continues, subject to a maximum of one lakh rupees.] **122. Applicability of this Chapter to One Person Company.—(1) The provisions of section 98 and** sections 100 to 111 (both inclusive) shall not apply to a One Person Company. (2) The ordinary businesses as mentioned under clause (a) of sub-section (2) of section 102 which a company, other than a One Person Company, is required to transact at its annual general meeting, shall be transacted, in case of One Person Company, as provided in sub-section (3). (3) For the purposes of section 114, any business which is required to be transacted at an annual general meeting or other general meeting of a company by means of an ordinary or special resolution, it shall be sufficient if, in case of One Person Company, the resolution is communicated by the member to the company and entered in the minutes-book required to be maintained under section 118 and signed and dated by the member and such date shall be deemed to be the date of the meeting for all the purposes under this Act. (4) Notwithstanding anything in this Act, where there is only one director on the Board of Director of a One Person Company, any business which is required to be transacted at the meeting of the Board of Directors of a company, it shall be sufficient if, in case of such One Person Company, the resolution by such director is entered in the minutes-book required to be maintained under section 118 and signed and dated by such director and such date shall be deemed to be the date of the meeting of the Board of Directors for all the purposes under this Act. CHAPTER VIII DECLARATION AND PAYMENT OF DIVIDEND **123. Declaration of dividend.—(1) No dividend shall be declared or paid by a company for any** financial year except— (a) out of the profits of the company for that year arrived at after providing for depreciation in accordance with the provisions of sub-section (2), or out of the profits of the company for any previous financial year or years arrived at after providing for depreciation in accordance with the provisions of that sub-section and remaining undistributed, or out of [3][both:] 1. The words and figures “within the time as specified, under section 403” omitted by Act 1 of 2018, s. 31 (w.e.f. 7-5-2018). 2. Subs. by Act 22 of 2019, s. 19, for sub-section (3) (w.e.f. 2-11-2018). 3. Subs. by Act 1 of 2018, s. 32, for “both; or” (w.e.f. 9-2-2018). 81 ----- 1[Provided that in computing profits any amount representing unrealised gains, notional gains or revaluation of assets and any change in carrying amount of an asset or of a liability on measurement of the asset or the liability at fair value shall be excluded; or] (b) out of money provided by the Central Government or a State Government for the payment of dividend by the company in pursuance of a guarantee given by that Government: Provided that a company may, before the declaration of any dividend in any financial year, transfer such percentage of its profits for that financial year as it may consider appropriate to the reserves of the company: Provided further that where, owing to inadequacy or absence of profits in any financial year, any company proposes to declare dividend out of the accumulated profits earned by it in previous years and 2[transferred by the company to the free reserves], such declaration of dividend shall not be made except in accordance with such rules as may be prescribed in this behalf: Provided also that no dividend shall be declared or paid by a company from its reserves other than free reserves: 3[Provided also that no company shall declare dividend unless carried over previous losses and depreciation not provided in previous year or years are set off against profit of the company for the current year.] (2) For the purposes of clause (a) of sub-section (1), depreciation shall be provided in accordance with the provisions of Schedule II. 4[(3) The Board of Directors of a company may declare interim dividend during any financial year or at any time during the period from closure of financial year till holding of the annual general meeting out of the surplus in the profit and loss account or out of profits of the financial year for which such interim dividend is sought to be declared or out of profits generated in the financial year till the quarter preceding the date of declaration of the interim dividend: Provided that in case the company has incurred loss during the current financial year up to the end of the quarter immediately preceding the date of declaration of interim dividend, such interim dividend shall not be declared at a rate higher than the average dividends declared by the company during immediately preceding three financial years.] (4) The amount of the dividend, including interim dividend, shall be deposited in a scheduled bank in a separate account within five days from the date of declaration of such dividend. (5) No dividend shall be paid by a company in respect of any share therein except to the registered shareholder of such share or to his order or to his banker and shall not be payable except in cash: Provided that nothing in this sub-section shall be deemed to prohibit the capitalisation of profits or reserves of a company for the purpose of issuing fully paid-up bonus shares or paying up any amount for the time being unpaid on any shares held by the members of the company: Provided further that any dividend payable in cash may be paid by cheque or warrant or in any electronic mode to the shareholder entitled to the payment of the dividend. (6) A company which fails to comply with the provisions of sections 73 and 74 shall not, so long as such failure continues, declare any dividend on its equity shares. **124. Unpaid Dividend Account.—(1) Where a dividend has been declared by a company but has not** been paid or claimed within thirty days from the date of the declaration to any shareholder entitled to the payment of the dividend, the company shall, within seven days from the date of expiry of the said period of thirty days, transfer the total amount of dividend which remains unpaid or unclaimed to a special account 1. The proviso ins. by Act 1 of 2018, s. 32 (w.e.f. 9-2-2018). 2. Subs. by s. 32, ibid., for “transferred by the company to the reserves” (w.e.f. 9-2-2018). 3. The Proviso ins. by Act 21 of 2015, s. 10 (w.e.f. 29-5-2015). 4. Subs. by Act 1 of 2018, s. 32, for sub-section (3) (w.e.f. 9-2-2018). 82 ----- to be opened by the company in that behalf in any scheduled bank to be called the Unpaid Dividend Account. (2) The company shall, within a period of ninety days of making any transfer of an amount under sub section (1) to the Unpaid Dividend Account, prepare a statement containing the names, their last known addresses and the unpaid dividend to be paid to each person and place it on the website of the company, if any, and also on any other website approved by the Central Government for this purpose, in such form, manner and other particulars as may be prescribed. (3) If any default is made in transferring the total amount referred to in sub-section (1) or any part thereof to the Unpaid Dividend Account of the company, it shall pay, from the date of such default, interest on so much of the amount as has not been transferred to the said account, at the rate of twelve per cent. per annum and the interest accruing on such amount shall ensure to the benefit of the members of the company in proportion to the amount remaining unpaid to them. (4) Any person claiming to be entitled to any money transferred under sub-section (1) to the Unpaid Dividend Account of the company may apply to the company for payment of the money claimed. (5) Any money transferred to the Unpaid Dividend Account of a company in pursuance of this section which remains unpaid or unclaimed for a period of seven years from the date of such transfer shall be transferred by the company along with interest accrued, if any, thereon to the Fund established under sub-section (1) of section 125 and the company shall send a statement in the prescribed form of the details of such transfer to the authority which administers the said Fund and that authority shall issue a receipt to the company as evidence of such transfer. (6) All shares in respect of which [1][dividend has not been paid or claimed for seven consecutive years or more shall be] transferred by the company in the name of Investor Education and Protection Fund along with a statement containing such details as may be prescribed: Provided that any claimant of shares transferred above shall be entitled to claim the transfer of shares from Investor Education and Protection Fund in accordance with such procedure and on submission of such documents as may be prescribed. 2[Explanation.— For the removal of doubts, it is hereby clarified that in case any dividend is paid or claimed for any year during the said period of seven consecutive years, the share shall not be transferred to Investor Education and Protection Fund.] [3][(7) If a company fails to comply with any of the requirements of this section, such company shall be liable to a penalty of one lakh rupees and in case of continuing failure, with a further penalty of five hundred rupees for each day after the first during which such failure continues, subject to a maximum of ten lakh rupees and every officer of the company who is in default shall be liable to a penalty of twenty-five thousand rupees and in case of continuing failure, with a further penalty of one hundred rupees for each day after the first during which such failure continues, subject to a maximum of two lakh rupees.] **125. Investor Education and Protection Fund.—(1) The Central Government shall establish a Fund** to be called the Investor Education and Protection Fund (herein referred to as the Fund). (2) There shall be credited to the Fund— (a) the amount given by the Central Government by way of grants after due appropriation made by Parliament by law in this behalf for being utilised for the purposes of the Fund; (b) donations given to the Fund by the Central Government, State Governments, companies or any other institution for the purposes of the Fund; (c) the amount in the Unpaid Dividend Account of companies transferred to the Fund under sub-section (5) of section 124; (d) the amount in the general revenue account of the Central Government which had been transferred to that account under sub-section (5) of section 205A of the Companies Act, 1956 (1 of 1956), as it stood immediately before the commencement of the Companies (Amendment) Act, 1999 (21 of 1999), and remaining unpaid or unclaimed on the commencement of this Act; 1. Subs. by Act 21 of 2015, s. 11, for “unpaid or unclaimed dividend has been transferred under sub-section (5) shall also be” (w.e.f. 29-5-2015). 2. 2. The Explanation ins. by s. 11, ibid. (w.e.f. 29-5-2015). 3. Subs. by vide Notification No. S.O. 1303(E), for sub-section (7) (w.e.f. 24-3-2021). 83 ----- (e) the amount lying in the Investor Education and Protection Fund under section 205C of the Companies Act, 1956 (1 of 1956); (f) the interest or other income received out of investments made from the Fund; (g) the amount received under sub-section (4) of section 38; (h) the application money received by companies for allotment of any securities and due for refund; (i) matured deposits with companies other than banking companies; (j) matured debentures with companies; (k) interest accrued on the amounts referred to in clauses (h) to (j); (l) sale proceeds of fractional shares arising out of issuance of bonus shares, merger and amalgamation for seven or more years; (m) redemption amount of preference shares remaining unpaid or unclaimed for seven or more years; and (n) such other amount as may be prescribed: Provided that no such amount referred to in clauses (h) to (j) shall form part of the Fund unless such amount has remained unclaimed and unpaid for a period of seven years from the date it became due for payment. (3) The Fund shall be utilised for— (a) the refund in respect of unclaimed dividends, matured deposits, matured debentures, the application money due for refund and interest thereon; (b) promotion of investors’ education, awareness and protection; (c) distribution of any disgorged amount among eligible and identifiable applicants for shares or debentures, shareholders, debenture-holders or depositors who have suffered losses due to wrong actions by any person, in accordance with the orders made by the Court which had ordered disgorgement; (d) reimbursement of legal expenses incurred in pursuing class action suits under sections 37 and 245 by members, debenture-holders or depositors as may be sanctioned by the Tribunal; and (e) any other purpose incidental thereto, in accordance with such rules as may be prescribed: Provided that the person whose amounts referred to in clauses (a) to (d) of sub-section (2) of section 205C transferred to Investor Education and Protection Fund, after the expiry of the period of seven years as per provisions of the Companies Act, 1956 (1 of 1956), shall be entitled to get refund out of the Fund in respect of such claims in accordance with rules made under this section. _Explanation.—The disgorged amount refers to the amount received through disgorgement or disposal_ of securities. (4) Any person claiming to be entitled to the amount referred in sub-section (2) may apply to the authority constituted under sub-section (5) for the payment of the money claimed. (5) The Central Government shall constitute, by notification, an authority for administration of the Fund consisting of a chairperson and such other members, not exceeding seven and a chief executive officer, as the Central Government may appoint. (6) The manner of administration of the Fund, appointment of chairperson, members and chief executive officer, holding of meetings of the authority shall be in accordance with such rules as may be prescribed. (7) The Central Government may provide to the authority such offices, officers, employees and other resources in accordance with such rules as may be prescribed. 84 ----- (8) The authority shall administer the Fund and maintain separate accounts and other relevant records in relation to the Fund in such form as may be prescribed after consultation with the Comptroller and Auditor-General of India. (9) It shall be competent for the authority constituted under sub-section (5) to spend money out of the Fund for carrying out the objects specified in sub-section (3). (10) The accounts of the Fund shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and such audited accounts together with the audit report thereon shall be forwarded annually by the authority to the Central Government. (11) The authority shall prepare in such form and at such time for each financial year as may be prescribed its annual report giving a full account of its activities during the financial year and forward a copy thereof to the Central Government and the Central Government shall cause the annual report and the audit report given by the Comptroller and Auditor-General of India to be laid before each House of Parliament. **126. Right to dividend, rights shares and bonus shares to be held in abeyance pending registration** **of transfer of shares.—Where any instrument of transfer of shares has been delivered to any company for** registration and the transfer of such shares has not been registered by the company, it shall, notwithstanding anything contained in any other provision of this Act,— (a) transfer the dividend in relation to such shares to the Unpaid Dividend Account referred to in section 124 unless the company is authorised by the registered holder of such shares in writing to pay such dividend to the transferee specified in such instrument of transfer; and (b) keep in abeyance in relation to such shares, any offer of rights shares under clause (a) of sub-section (1) of section 62 and any issue of fully paid-up bonus shares in pursuance of first proviso to sub-section (5) of section 123. **127. Punishment for failure to distribute dividends.—Where a dividend has been declared by a** company but has not been paid or the warrant in respect thereof has not been posted within thirty days from the date of declaration to any shareholder entitled to the payment of the dividend, every director of the company shall, if he is knowingly a party to the default, be punishable with imprisonment which may extend to two years and with fine which shall not be less than one thousand rupees for every day during which such default continues and the company shall be liable to pay simple interest at the rate of eighteen per cent. per annum during the period for which such default continues: Provided that no offence under this section shall be deemed to have been committed:— (a) where the dividend could not be paid by reason of the operation of any law; (b) where a shareholder has given directions to the company regarding the payment of the dividend and those directions cannot be complied with and the same has been communicated to him; (c) where there is a dispute regarding the right to receive the dividend; (d) where the dividend has been lawfully adjusted by the company against any sum due to it from the shareholder; or (e) where, for any other reason, the failure to pay the dividend or to post the warrant within the period under this section was not due to any default on the part of the company. CHAPTER IX ACCOUNTS OF COMPANIES **128. Books of account, etc., to be kept by company.—(1) Every company shall prepare and keep at** its registered office books of account and other relevant books and papers and financial statement for every financial year which give a true and fair view of the state of the affairs of the company, including that of its branch office or offices, if any, and explain the transactions effected both at the registered office and its branches and such books shall be kept on accrual basis and according to the double entry system of accounting: 85 ----- Provided that all or any of the books of account aforesaid and other relevant papers may be kept at such other place in India as the Board of Directors may decide and where such a decision is taken, the company shall, within seven days thereof, file with the Registrar a notice in writing giving the full address of that other place: Provided further that the company may keep such books of account or other relevant papers in electronic mode in such manner as may be prescribed. (2) Where a company has a branch office in India or outside India, it shall be deemed to have complied with the provisions of sub-section (1), if proper books of account relating to the transactions effected at the branch office are kept at that office and proper summarized returns periodically are sent by the branch office to the company at its registered office or the other place referred to in sub-section (1). (3) The books of account and other books and papers maintained by the company within India shall be open for inspection at the registered office of the company or at such other place in India by any director during business hours, and in the case of financial information, if any, maintained outside the country, copies of such financial information shall be maintained and produced for inspection by any director subject to such conditions as may be prescribed: Provided that the inspection in respect of any subsidiary of the company shall be done only by the person authorised in this behalf by a resolution of the Board of Directors. (4) Where an inspection is made under sub-section (3), the officers and other employees of the company shall give to the person making such inspection all assistance in connection with the inspection which the company may reasonably be expected to give. (5) The books of account of every company relating to a period of not less than eight financial years immediately preceding a financial year, or where the company had been inexistence for a period less than eight years, in respect of all the preceding years together with the vouchers relevant to any entry in such books of account shall be kept in good order: Provided that where an investigation has been ordered in respect of the company under Chapter XIV, the Central Government may direct that the books of account may be kept for such longer period as it may deem fit. (6) If the managing director, the whole-time director in charge of finance, the Chief Financial Officer or any other person of a company charged by the Board with the duty of complying with the provisions of this section, contravenes such provisions, such managing director, whole-time director in charge of finance, Chief Financial Officer or such other person of the company shall be punishable [1]*** with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees [2]***. **129. Financial statement.—(1) The financial statements shall give a true and fair view of the state of** affairs of the company or companies, comply with the accounting standards notified under section133 and shall be in the form or forms as may be provided for different class or classes of companies in Schedule III: Provided that the items contained in such financial statements shall be in accordance with the accounting standards: Provided further that nothing contained in this sub-section shall apply to any insurance or banking company or any company engaged in the generation or supply of electricity, or to any other class of company for which a form of financial statement has been specified in or under the Act governing such class of company: Provided also that the financial statements shall not be treated as not disclosing a true and fair view of the state of affairs of the company, merely by reason of the fact that they do not disclose— 1. The words “with imprisonment for a term which may extend to one year or” omitted by Act 29 of 2020, s. 24 (w.e.f. 21-21 2020). 2. The words “or with both” omitted by s. 24, ibid. (w.e.f. 21-12-2020). 86 ----- (a) in the case of an insurance company, any matters which are not required to be disclosed by the Insurance Act, 1938 (4 of 1938), or the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999); (b) in the case of a banking company, any matters which are not required to be disclosed by the Banking Regulation Act, 1949 (10 of 1949); (c) in the case of a company engaged in the generation or supply of electricity, any matters which are not required to be disclosed by the Electricity Act, 2003 (36 of 2003); (d) in the case of a company governed by any other law for the time being in force, any matters which are not required to be disclosed by that law. (2) At every annual general meeting of a company, the Board of Directors of the company shall lay before such meeting financial statements for the financial year. 1[(3) Where a company has one or more subsidiaries or associate companies, it shall, in addition to financial statements provided under sub-section (2), prepare a consolidated financial statement of the company and of all the subsidiaries and associate companies in the same form and manner as that of its own and in accordance with applicable accounting standards, which shall also be laid before the annual general meeting of the company along with the laying of its financial statement under sub-section (2): Provided that the company shall also attach along with its financial statement, a separate statement containing the salient features of the financial statement of its subsidiary or subsidiaries and associate company or companies in such form as may be prescribed: Provided further that the Central Government may provide for the consolidation of accounts of companies in such manner as may be prescribed.] (4) The provisions of this Act applicable to the preparation, adoption and audit of the financial statements of a holding company shall, mutatis mutandis, apply to the consolidated financial statements referred to in sub-section (3). (5) Without prejudice to sub-section (1), where the financial statements of a company do not comply with the accounting standards referred to in sub-section (1), the company shall disclose in its financial statements, the deviation from the accounting standards, the reasons for such deviation and the financial effects, if any, arising out of such deviation. (6) The Central Government may, on its own or on an application by a class or classes of companies, by notification, exempt any class or classes of companies from complying with any of the requirements of this section or the rules made thereunder, if it is considered necessary to grant such exemption in the public interest and any such exemption may be granted either unconditionally or subject to such conditions as may be specified in the notification. (7) If a company contravenes the provisions of this section, the managing director, the whole-time director in charge of finance, the Chief Financial Officer or any other person charged by the Board with the duty of complying with the requirements of this section and in the absence of any of the officers mentioned above, all the directors shall be punishable with imprisonment for a term which may extend to one year or with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees, or with both. _Explanation.—For the purposes of this section, except where the context otherwise requires, any_ reference to the financial statement shall include any notes annexed to or forming part of such financial statement, giving information required to be given and allowed to be given in the form of such notes under this Act. 2[129A. Periodical financial results.—The Central Government may, require such class or classes of unlisted companies, as may be prescribed,— 1. Subs. by Act 1 of 2018, s. 33, for sub-section (3) (w.e.f. 7-5-2018). 2. Ins. by Act 29 of 2020, s. 25 (w.e.f. 22-1-2021). 87 ----- (a) to prepare the financial results of the company on such periodical basis and in such form as may be prescribed; (b) to obtain approval of the Board of Directors and complete audit or limited review of such periodical financial results in such manner as may be prescribed; and (c) file a copy with the Registrar within a period of thirty days of completion of the relevant period with such fees as may be prescribed.] **130. Re-opening of accounts on court’s or Tribunal’s orders.—(1) A company shall not re-open its** books of account and not recast its financial statements, unless an application in this regard is made by the Central Government, the Income-tax authorities, the Securities and Exchange Board, any other statutory regulatory body or authority or any person concerned and an order is made by a court of competent jurisdiction or the Tribunal to the effect that— (i) the relevant earlier accounts were prepared in a fraudulent manner; or (ii) the affairs of the company were mismanaged during the relevant period, casting a doubt on the reliability of financial statements: Provided that the court or the Tribunal, as the case may be, shall give notice to the Central Government, the Income-tax authorities, the Securities and Exchange Board or any other statutory regulatory body or authority concerned [1][or any other person concerned] and shall take into consideration the representations, if any, made by that Government or the authorities, Securities and Exchange Board or the body or authority concerned [1][or the other person concerned] before passing any order under this section. (2) Without prejudice to the provisions contained in this Act the accounts so revised or re-cast under sub-section (1) shall be final. 2[(3) No order shall be made under sub-section (1) in respect of re-opening of books of account relating to a period earlier than eight financial years immediately preceding the current financial year: Provided that where a direction has been issued by the Central Government under the proviso to sub-section (5) of section 128 for keeping of books of account for a period longer than eight years, the books of account may be ordered to be re-opened within such longer period.] **131. Voluntary revision of financial statements or Board’s report.—(1) If it appears to the directors** of a company that— (a) the financial statement of the company; or (b) the report of the Board, do not comply with the provisions of section 129 or section 134 they may prepare revised financial statement or a revised report in respect of any of the three preceding financial years after obtaining approval of the Tribunal on an application made by the company in such form and manner as may be prescribed and a copy of the order passed by the Tribunal shall be filed with the Registrar: Provided that the Tribunal shall give notice to the Central Government and the Income-tax authorities and shall take into consideration the representations, if any, made by that Government or the authorities before passing any order under this section: Provided further that such revised financial statement or report shall not be prepared or filed more than once in a financial year: Provided also that the detailed reasons for revision of such financial statement or report shall also be disclosed in the Board’s report in the relevant financial year in which such revision is being made. 1. Ins. by Act 1 of 2018, s. 34 (w.e.f. 9-2-2018). 2. Ins. by s. 34, ibid. (w.e.f. 9-2-2018). 88 ----- (2) Where copies of the previous financial statement or report have been sent out to members or delivered to the Registrar or laid before the company in general meeting, the revisions must be confined to— (a) the correction in respect of which the previous financial statement or report do not comply with the provisions of section 129 or section 134; and (b) the making of any necessary consequential alternation. (3) The Central Government may make rules as to the application of the provisions of this Act in relation to revised financial statement or a revised director's report and such rules may, in particular— (a) make different provisions according to which the previous financial statement or report are replaced or are supplemented by a document indicating the corrections to be made; (b) make provisions with respect to the functions of the company's auditor in relation to the revised financial statement or report; (c) require the directors to take such steps as may be prescribed. **132. Constitution of National Financial Reporting Authority.—(1) The Central Government may,** by notification, constitute a National Financial Reporting Authority to provide for matters relating to accounting and auditing standards under this Act. 1[(1A) The National Financial Reporting Authority shall perform its functions through such divisions as may be prescribed.] (2) Notwithstanding anything contained in any other law for the time being in force, the National Financial Reporting Authority shall— (a) make recommendations to the Central Government on the formulation and laying down of accounting and auditing policies and standards for adoption by companies or class of companies or their auditors, as the case may be; (b) monitor and enforce the compliance with accounting standards and auditing standards in such manner as may be prescribed; (c) oversee the quality of service of the professions associated with ensuring compliance with such standards, and suggest measures required for improvement in quality of service and such other related matters as may be prescribed; and (d) perform such other functions relating to clauses (a), (b) and (c) as may be prescribed. (3) The National Financial Reporting Authority shall consist of a chairperson, who shall be a person of eminence and having expertise in accountancy, auditing, finance or law to be appointed by the Central Government and such other members not exceeding fifteen consisting of part-time and full-time members as may be prescribed: Provided that the terms and conditions and the manner of appointment of the chairperson and members shall be such as may be prescribed: Provided further that the chairperson and members shall make a declaration to the Central Government in the prescribed form regarding no conflict of interest or lack of independence in respect of his or their appointment: Provided also that the chairperson and members, who are in full-time employment with National Financial Reporting Authority shall not be associated with any audit firm (including related consultancy firms) during the course of their appointment and two years after ceasing to hold such appointment. 1[(3A) Each division of the National Financial Reporting Authority shall be presided over by the Chairperson or a full-time Member authorized by the Chairperson. 1. Ins. by Act 22 of 2019, s. 20 (w.e.f. 15-8-2019). 89 ----- (3B) There shall be an executive body of the National Financial Reporting Authority consisting of the Chairperson and full-time Members of such Authority for efficient discharge of its functions under sub-section (2) [other than clause (a) and sub-section (4).] (4) Notwithstanding anything contained in any other law for the time being in force, the National Financial Reporting Authority shall— (a) have the power to investigate, either _suo motu_ or on a reference made to it by the Central Government, for such class of bodies corporate or persons, in such manners may be prescribed into the matters of professional or other misconduct committed by any member or firm of chartered accountants, registered under the Chartered Accountants Act, 1949 (38 of 1949): Provided that no other institute or body shall initiate or continue any proceedings in such matters of misconduct where the National Financial Reporting Authority has initiated an investigation under this section; (b) have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit, in respect of the following matters, namely:— (i) discovery and production of books of account and other documents, at such place and at such time as may be specified by the National Financial Reporting Authority; (ii) summoning and enforcing the attendance of persons and examining them on oath; (iii) inspection of any books, registers and other documents of any person referred to in clause (b) at any place; (iv) issuing commissions for examination of witnesses or documents; (c) where professional or other misconduct is proved, have the power to make order for— (A) imposing penalty of— (I) not less than one lakh rupees, but which may extend to five times of the fees received, in case of individuals; and (II) not less than [1][five lakh rupees], but which may extend to ten times of the fees received, in case of firms; 2[(B) debarring the member or the firm from— I. being appointed as an auditor or internal auditor or undertaking any audit in respect t of financial statements or internal audit of the functions and activities of any company or body corporate; or II. performing any valuation as provided under section 247, for a minimum period of six months or such higher period not exceeding ten years as may be determined by the National Financial Reporting Authority.] _Explanation.—For the purposes of this sub-section, the expression “professional or other misconduct”_ shall have the same meaning assigned to it under section 22 of the Chartered Accountants Act, 1949 (38 of 1949). (5) Any person aggrieved by any order of the National Financial Reporting Authority issued under clause (c) of sub-section (4), may prefer an appeal before [3][the Appellate Tribunal in such manner and on payment of such fee as may be prescribed]. 4* - - - (10) The National Financial Reporting Authority shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings in such manner as may be prescribed. 1. Subs. by Act 1 of 2018, s. 35, for “ten lakh rupees” (w.e.f. 9-2-2018). 2. Subs. by Act 22 of 2019, s. 20, for sub-clause (b) (w.e.f. 15-8-2019). 3. Subs. by s. 35, ibid., for “the Appellate Authority constituted under sub-section (6) in such manner as may be prescribed” (w.e.f. 9-2-2018). 4. Sub-sections (6), (7), (8) and (9) omitted by s. 35, ibid. (w.e.f. 9-2-2018). 90 ----- (11) The Central Government may appoint a secretary and such other employees as it may consider necessary for the efficient performance of functions by the National Financial Reporting Authority under this Act and the terms and conditions of service of the secretary and employees shall be such as may be prescribed. (12) The head office of the National Financial Reporting Authority shall be at New Delhi and the National Financial Reporting Authority may, meet at such other places in India as it deems fit. (13) The National Financial Reporting Authority shall cause to be maintained such books of account and other books in relation to its accounts in such form and in such manner as the Central Government may, in consultation with the Comptroller and Auditor-General of India prescribe. (14) The accounts of the National Financial Reporting Authority shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and such accounts as certified by the Comptroller and Auditor-General of India together with the audit report thereon shall be forwarded annually to the Central Government by the National Financial Reporting Authority. (15) The National Financial Reporting Authority shall prepare in such form and at such time for each financial year as may be prescribed its annual report giving a full account of its activities during the financial year and forward a copy thereof to the Central Government and the Central Government shall cause the annual report and the audit report given by the Comptroller and Auditor-General of India to be laid before each House of Parliament. **133. Central Government to prescribe accounting standards.—The Central Government may** prescribe the standards of accounting or any addendum thereto, as recommended by the Institute of Chartered Accountants of India, constituted under section 3 of the Chartered Accountants Act, 1949 (38 of 1949), in consultation with and after examination of the recommendations made by the National Financial Reporting Authority: 1[Provided that until the National Financial Reporting Authority is constituted under section 132 of the Companies Act, 2013 (18 of 2013), the Central Government may prescribe the standards of accounting or any addendum thereto, as recommended by the Institute of Chartered Accountants of India, constituted under section 3 of the Chartered Accountants Act, 1949 (38 of 1949), in consultation with and after examination of the recommendations made by National Advisory Committee on Accounting Standards constituted under section 210A of the Companies Act, 1956 (1 of 1956).] **134. Financial statement, Board’s report, etc.—[ 2][(1) The financial statement, including consolidated** financial statement, if any, shall be approved by the Board of Directors before they are signed on behalf of the Board by the chairperson of the company where he is authorised by the Board or by two directors out of which one shall be managing director, if any, and the Chief Executive Officer, the Chief Financial Officer and the company secretary of the company, wherever they are appointed, or in the case of One Person Company, only by one director, for submission to the auditor for his report thereon.] (2) The auditors’ report shall be attached to every financial statement. (3) There shall be attached to statements laid before a company in general meeting, a report by its Board of Directors, which shall include— 3[(a) the web address, if any, where annual return referred to in sub-section (3) of section 92 has been placed;] (b) number of meetings of the Board; (c) Directors’ Responsibility Statement; 4[(ca) details in respect of frauds reported by auditors under sub-section (12) of section 143 other than those which are reportable to the Central Government;] (d) a statement on declaration given by independent directors under sub-section (6) of section 149; (e) in case of a company covered under sub-section (1) of section 178, company’s policy on directors’ appointment and remuneration including criteria for determining qualifications, positive attributes, independence of a director and other matters provided under sub-section (3) of section 178; 1. Ins. by notification No. S.O. 1227(E), dated 29th March, 2016 (w.e.f 1-4-2015). 2. Subs. by Act 1 of 2018, s. 36, sub-section (1) (w.e.f. 31-7-2018). 3. Subs. by s. 36, ibid., for clause (a) (w.e.f. 31-7-2018). 4. Ins. by Act 21 of 2015, s. 12 (w.e.f. 29-5-2015). 91 ----- (f) explanations or comments by the Board on every qualification, reservation or adverse remark or disclaimer made— (i) by the auditor in his report; and (ii) by the company secretary in practice in his secretarial audit report; (g) particulars of loans, guarantees or investments under section 186; (h) particulars of contracts or arrangements with related parties referred to in sub-section (1) of section 188 in the prescribed form; (i) the state of the company’s affairs; (j) the amounts, if any, which it proposes to carry to any reserves; (k) the amount, if any, which it recommends should be paid by way of dividend; (l) material changes and commitments, if any, affecting the financial position of the company which have occurred between the end of the financial year of the company to which the financial statements relate and the date of the report; (m) the conservation of energy, technology absorption, foreign exchange earnings and outgo, in such manner as may be prescribed; (n) a statement indicating development and implementation of a risk management policy for the company including identification therein of elements of risk, if any, which in the opinion of the Board may threaten the existence of the company; (o) the details about the policy developed and implemented by the company incorporate social responsibility initiatives taken during the year; (p) in case of a listed company and every other public company having such paid-up share capital as may be prescribed, a statement indicating the manner in which formal [1][annual evaluation of the performance of the Board, its Committees and of individual directors has been made]; (q) such other matters as may be prescribed: 2[Provided that where disclosures referred to in this sub-section have been included in the financial statements, such disclosures shall be referred to instead of being repeated in the Board's report: Provided further that where the policy referred to in clause (e) or clause (o) is made available on company's website, if any, it shall be sufficient compliance of the requirements under such clauses if the salient features of the policy and any change therein are specified in brief in the Board's report and the webaddress is indicated therein at which the complete policy is available.] 3[(3A) The Central Government may prescribe an abridged Board's report, for the purpose of compliance with this section by One Person Company or small company.] (4) The report of the Board of Directors to be attached to the financial statement under this section shall, in case of a One Person Company, mean a report containing explanations or comments by the Board on every qualification, reservation or adverse remark or disclaimer made by the auditor in his report. (5) The Directors’ Responsibility Statement referred to in clause (c) of sub-section (3) shall state that— (a) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures; (b) the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit and loss of the company for that period; (c) the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud another irregularities; (d) the directors had prepared the annual accounts on a going concern basis; and (e) the directors, in the case of a listed company, had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively. _Explanation.—For the purposes of this clause, the term “internal financial controls” means the_ policies and procedures adopted by the company for ensuring the orderly and efficient conduct of its 1. Subs. by Act 1 of 2018, s. 36, for “annual evaluation has been made by the Board of its own performance and that of its committees and individual directors” (w.e.f. 31-7-2018). 2. The provisos ins. by s. 36, ibid., (w.e.f. 31-7-2018). 3. Sub-section (3A) ins. by s. 36, ibid., (w.e.f. 31-7-2018). 92 ----- business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information; (f) the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively. (6) The Board’s report and any annexures thereto under sub-section (3) shall be signed by its chairperson of the company if he is authorised by the Board and where he is not so authorised, shall be signed by at least two directors, one of whom shall be a managing director, or by the director where there is one director. (7) A signed copy of every financial statement, including consolidated financial statement, if any, shall be issued, circulated or published along with a copy each of— (a) any notes annexed to or forming part of such financial statement; (b) the auditor’s report; and (c) the Board’s report referred to in sub-section (3). 1[(8) If a company is in default in complying with the provisions of this section, the company shall be liable to a penalty of three lakh rupees and every officer of the company who is in default shall be liable to a penalty of fifty thousand rupees.] **135. Corporate Social Responsibility.—(1) Every company having net worth of rupees five hundred** crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during [2][the immediately preceding financial year] shall constitute a Corporate Social Responsibility Committee of the Board consisting of three or more directors, out of which at least one director shall be an independent director: 3[Provided that where a company is not required to appoint an independent director under sub-section (4) of section 149, it shall have in its Corporate Social Responsibility Committee two or more directors.] (2) The Board's report under sub-section (3) of section 134 shall disclose the composition of the Corporate Social Responsibility Committee. (3) The Corporate Social Responsibility Committee shall,— (a) formulate and recommend to the Board, a Corporate Social Responsibility Policy which shall indicate the activities to be undertaken by the company [4][in areas or subject, specified in Schedule VII]; (b) recommend the amount of expenditure to be incurred on the activities referred to in clause (a); and (c) monitor the Corporate Social Responsibility Policy of the company from time to time. (4) The Board of every company referred to in sub-section (1) shall,— (a) after taking into account the recommendations made by the Corporate Social Responsibility Committee, approve the Corporate Social Responsibility Policy for the company and disclose contents of such Policy in its report and also place it on the company’s website, if any, in such manner as may be prescribed; and (b) ensure that the activities as are included in Corporate Social Responsibility Policy of the company are undertaken by the company. (5) The Board of every company referred to in sub-section (1), shall ensure that the company spends, in every financial year, at least two per cent. of the average net profits of the company made during the three immediately preceding financial years, [5][or where the company has not completed the period of three financial years since its incorporation, during such immediately preceding financial years,] in pursuance of its Corporate Social Responsibility Policy: Provided that the company shall give preference to the local area and areas around it where it operates, for spending the amount earmarked for Corporate Social Responsibility activities: Provided further that if the company fails to spend such amount, the Board shall, in its report made under clause (o) of sub-section (3) of section 134, specify the reasons for not spending the amount 1. Subs. by Act 29 of 2020, s. 26, for sub-section (8) (w.e.f. 21-12-2020). 2. Subs. by Act 1 of 2018, s. 37, for “any financial year” (w.e.f. 19-9-2018). 3. The proviso ins. by s. 37, ibid., (w.e.f. 19-9-2018). 4. Subs. by s. 37, ibid., for “as specified in Schedule VII” (w.e.f. 19-9-2018). 5. Ins. by Act 22 of 2019, s. 21 (w.e.f. 22-1-2021). 93 ----- 1[and, unless the unspent amount relates to any ongoing project referred to in sub-section (6), transfer such unspent amount to a Fund specified in Schedule VII, within a period of six months of the expiry of the financial years]. 2[Provided also that if the company spends an amount in excess of the requirements provided under this sub-section, such company may set off such excess amount against the requirement to spend under this sub-section for such number of succeeding financial years and in such manner, as may be prescribed.] 3[Explanation.—For the purposes of this section “net profit” shall not include such sums as may be prescribed, and shall be calculated in accordance with the provisions of section 198.] 4[(6) Any amount remaining unspent under sub-section (5), pursuant to any ongoing project, fulfilling such conditions as may be prescribed, undertaken by a company in pursuance of its Corporate Social Responsibility Policy, shall be transferred by the company within a period of thirty days from the end of the financial year to a special account to be opened by the company in that behalf for that financial year in any scheduled bank to be called the Unspent Corporate Social Responsibility Account, and such amount shall be spent by the company in pursuance of its obligation towards the Corporate Social Responsibility Policy within a period of three financial years from the date of such transfer, failing which, the company shall transfer the same to a Fund specified in Schedule VII, within a period of thirty days from the date of completion of the third financial year. 5[(7) If a company is in default in complying with the provisions of sub-section (5) or sub-section (6), the company shall be liable to a penalty of twice the amount required to be transferred by the company to the Fund specified in Schedule VII or the Unspent Corporate Social Responsibility Account, as the case may be, or one crore rupees, whichever is less, and every officer of the company who is in default shall be liable to a penalty of one-tenth of the amount required to be transferred by the company to such Fund specified in Schedule VII, or the Unspent Corporate Social Responsibility Account, as the case may be, or two lakh rupees, whichever is less.] (8) The Central Government may give such general or special directions to a company or class of companies as it considers necessary to ensure compliance of provisions of this section and such company or class of companies shall comply with such directions.] 6[(9) Where the amount to be spent by a company under sub-section (5) does not exceed fifty lakh rupees, the requirement under sub-section (1) for constitution of the Corporate Social Responsibility Committee shall not be applicable and the functions of such Committee provided under this section shall, in such cases, be discharged by the Board of Directors of such company.] **136. Right of member to copies of audited financial statement.—(1)** [7]*** a copy of the financial statements, including consolidated financial statements, if any, auditor’s report and every other document required by law to be annexed or attached to the financial statements, which are to be laid before a company in its general meeting, shall be sent to every member of the company, to every trustee for the debentureholder of any debentures issued by the company, and to all persons other than such member or trustee, being the person so entitled, not less than twenty-one days before the date of the meeting: 8[Provided that if the copies of the documents are sent less than twenty-one days before the date of the meeting, they shall, notwithstanding that fact, be deemed to have been duly sent if it is so agreed by members— (a) holding, if the company has a share capital, majority in number entitled to vote and who represent not less than ninety-five per cent. of such part of the paid-up share capital of the company as gives a right to vote at the meeting; or (b) having, if the company has no share capital, not less than ninety-five per cent. of the total voting power exercisable at the meeting: Provided further that] in the case of a listed company, the provisions of this sub-section shall be deemed to be complied with, if the copies of the documents are made available for inspection at its registered 1. Ins. by Act 22 of 2019, s. 21 (w.e.f. 22-1-2021). 2. The Proviso ins. by s. 27, ibid. (w.e.f. 22-1-2021). 3. Subs. by Act 1 of 2018, s. 37, for the Explanation (w.e.f. 19-9-2018). 4. Ins. by Act 22 of 2019, s. 21 (w.e.f. 22-1-2021). 5. Subs. by Act 29 of 2020, s. 27, for sub-section (7) (w.e.f. 22-1-2021). 6. Ins. by s. 27, ibid. (w.e.f. 22-1-2021). 7. The words and figures “Without prejudice to the provisions of section 101” omitted by Act 1 of 2018, s. 38, (w.e.f. 9-2-2018). 8. Subs. by s. 38, ibid., for “Provided that” (w.e.f. 9-2-2018). 94 ----- office during working hours for a period of twenty-one days before the date of the meeting and a statement containing the salient features of such documents in the prescribed form or copies of the documents, as the company may deem fit, is sent to every member of the company and to every trustee for the holders of any debentures issued by the company not less than twenty-one days before the date of the meeting unless the shareholders ask for full financial statements: 1[Provided also] that the Central Government may prescribe the manner of circulation of financial statements of companies having such net worth and turnover as may be prescribed: Provided also that a listed company shall also place its financial statements including consolidated financial statements, if any, and all other documents required to be attached thereto, on its website, which is maintained by or on behalf of the company: 2[Provided also that every listed company having a subsidiary or subsidiaries shall place separate audited accounts in respect of each of subsidiary on its website, if any: Provided also that a listed company which has a subsidiary incorporated outside India (herein referred to as “foreign subsidiary”)— (a) where such foreign subsidiary is statutorily required to prepare consolidated financial statement under any law of the country of its incorporation, the requirement of this proviso shall be met if consolidated financial statement of such foreign subsidiary is placed on the website of the listed company; (b) where such foreign subsidiary is not required to get its financial statement audited under any law of the country of its incorporation and which does not get such financial statement audited, the holding Indian listed company may place such unaudited financial statement on its website and where such financial statement is in a language other than English, a translated copy of the financial statement in English shall also be placed on the website.] (2) A company shall allow every member or trustee of the holder of any debentures issued by the company to inspect the documents stated under sub-section (1) at its registered office during business hours. 3[Provided that every company having a subsidiary or subsidiaries shall provide a copy of separate audited or unaudited financial statements, as the case may be, as prepared in respect of each of its subsidiary to any member of the company who asks for it.] (3) If any default is made in complying with the provisions of this section, the company shall be liable to a penalty of twenty-five thousand rupees and every officer of the company who is in default shall be liable to a penalty of five thousand rupees. **137. Copy of financial statement to be filed with Registrar.—(1) A copy of the financial statements,** including consolidated financial statement, if any, along with all the documents which are required to be or attached to such financial statements under this Act, duly adopted at the annual general meeting of the company, shall be filed with the Registrar within thirty days of the date of annual general meeting in such manner, with such fees or additional fees as may be prescribed [4]***: Provided that where the financial statements under sub-section (1) are not adopted at annual general meeting or adjourned annual general meeting, such unadopted financial statements along with the required documents under sub-section (1) shall be filed with the Registrar within thirty days of the date of annual general meeting and the Registrar shall take them in his records as provisional till the financial statements are filed with him after their adoption in the adjourned annual general meeting for that purpose: Provided further that financial statements adopted in the adjourned annual general meeting shall be filed with the Registrar within thirty days of the date of such adjourned annual general meeting with such fees or such additional fees as may be prescribed [1]***: Provided also that a One Person Company shall file a copy of the financial statements duly adopted by its member, along with all the documents which are required to be attached to such financial statements, within one hundred eighty days from the closure of the financial year: 1. Subs. by Act 1 of 2018, s. 38, for “Provided further” (w.e.f. 9-2-2018). 2. Subs. by s. 38, ibid., for the Fourth proviso (w.e.f. 9-2-2018). 3. The proviso ins. by s. 38, ibid. (w.e.f. 9-2-2018). 4. The words and figures “within the time specified under section 403” omitted by s. 39, ibid., (w.e.f. 7-5-2018). 95 ----- Provided also that a company shall, along with its financial statements to be filed with the Registrar, attach the accounts of its subsidiary or subsidiaries which have been incorporated outside India and which have not established their place of business in India. 1[Provided also that in the case of a subsidiary which has been incorporated outside India (herein referred to as “foreign subsidiary”), which is not required to get its financial statement audited under any law of the country of its incorporation and which does not get such financial statement audited, the requirements of the fourth proviso shall be met if the holding Indian company files such unaudited financial statement along with a declaration to this effect and where such financial statement is in a language other than English, along with a translated copy of the financial statement in English.] (2) Where the annual general meeting of a company for any year has not been held, the financial statements along with the documents required to be attached under sub-section (1), duly signed along with the statement of facts and reasons for not holding the annual general meeting shall be filed with the Registrar within thirty days of the last date before which the annual general meeting should have been held and in such manner, with such fees or additional fees as may be prescribed [2]***. (3) If a company fails to file the copy of the financial statements under sub-section (1) or sub-section (2), as the case may be, before the expiry of the period specified [3][therein] the company shall be [4][liable to a penalty] of [5][ten thousand rupees and in case of continuing failure, with a further penalty of one hundred rupees for each day during which such failure continues, subject to a maximum of two lakh rupees,] and the managing director and the Chief Financial Officer of the company, if any, and, in the absence of the managing director and the Chief Financial Officer, any other director who is charged by the Board with the responsibility of complying with the provisions of this section, and, in the absence of any such director, all the directors of the company, shall be [6][shall be liable to a penalty of [7][ten thousand rupees] and in case of continuing failure, with a further penalty of one hundred rupees for each day after the first during which such failure continues, subject to a maximum of [8][fifty thousand rupees.] **138. Internal audit.—(1) Such class or classes of companies as may be prescribed shall be required** to appoint an internal auditor, who shall either be a chartered accountant or a cost accountant, or such other professional as may be decided by the Board to conduct internal audit of the functions and activities of the company. (2) The Central Government may, by rules, prescribe the manner and the intervals in which the internal audit shall be conducted and reported to the Board. CHAPTER X AUDIT AND AUDITORS **139. Appointment of auditors.—(1) Subject to the provisions of this Chapter, every company shall,** at the first annual general meeting, appoint an individual or a firm as an auditor who shall hold office from the conclusion of that meeting till the conclusion of its sixth annual general meeting and thereafter till the conclusion of every sixth meeting and the manner and procedure of selection of auditors by the members of the company at such meeting shall be such as may be prescribed: 9* - - - Provided further that before such appointment is made, the written consent of the auditor to such appointment, and a certificate from him or it that the appointment, if made, shall be in accordance with the conditions as may be prescribed, shall be obtained from the auditor: 1. The proviso ins. by Act 1 of 2018, s. 39 (w.e.f. 7-5-2018). 2. The words and figures “within the time specified, under section 403” omitted by s. 39, ibid. (w.e.f. 7-5-2018). 3. Subs. by s. 39, ibid., for “in section 403” (w.e.f. 7-5-2018). 4. Subs. by Act 22 of 2019, s. 22, for “punishable with fine” (w.e.f. 2-11-2018). 5. Subs. by Act 29 of 2020, s. 28, for “one thousand rupees for every day during which the failure continues but which shall not be more than ten lakh rupees” (w.e.f. 21-12-2020). 6. Subs. by Act 22 of 2019, s. 22, for “punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees, or with both” (w.e.f. 2-11-2018). 7. Subs. by Act 29 of 2020, s. 28, for “one lakh rupees” (w.e.f. 21-12-2020). 8. Subs. by s. 28, ibid., for “five lakh rupees” (w.e.f. 21-12-2020). 9. The first proviso omitted by Act 1 of 2018, s. 40 (w.e.f. 7-5-2018). 96 ----- Provided also that the certificate shall also indicate whether the auditor satisfies the criteria provided in section 141: Provided also that the company shall inform the auditor concerned of his or its appointment, and also file a notice of such appointment with the Registrar within fifteen days of the meeting in which the auditor is appointed. _Explanation.—For the purposes of this Chapter, “appointment” includes re-appointment._ (2) No listed company or a company belonging to such class or classes of companies as may be prescribed, shall appoint or re-appoint— (a) an individual as auditor for more than one term of five consecutive years; and (b) an audit firm as auditor for more than two terms of five consecutive years: Provided that— (i) an individual auditor who has completed his term under clause (a) shall not be eligible for re-appointment as auditor in the same company for five years from the completion of his term; (ii) an audit firm which has completed its term under clause (b), shall not be eligible for re-appointment as auditor in the same company for five years from the completion of such term: Provided further that as on the date of appointment no audit firm having a common partner or partners to the other audit firm, whose tenure has expired in a company immediately preceding the financial year, shall be appointed as auditor of the same company for a period of five years: 1[Provided also that every company, existing on or before the commencement of this Act which is required to comply with the provisions of this sub-section, shall comply with requirement of this sub-section within a period which shall not be later than the date of the first annual general meeting of the company held, within the period specified under sub-section (1) of section 96, after three years from the date of commencement of this Act:] Provided also that, nothing contained in this sub-section shall prejudice the right of the company to remove an auditor or the right of the auditor to resign from such office of the company. (3) Subject to the provisions of this Act, members of a company may resolve to provide that— (a) in the audit firm appointed by it, the auditing partner and his team shall be rotated at such intervals as may be resolved by members; or (b) the audit shall be conducted by more than one auditor. (4) The Central Government may, by rules, prescribe the manner in which the companies shall rotate their auditors in pursuance of sub-section (2). _Explanation.—For the purposes of this Chapter, the word “firm” shall include a limited liability_ partnership incorporated under the Limited Liability Partnership Act, 2008 (6 of 2009). (5) Notwithstanding anything contained in sub-section (1), in the case of a Government company or any other company owned or controlled, directly or indirectly, by the Central Government, or by any State Government or Governments, or partly by the Central Government and partly by one or more State Governments, the Comptroller and Auditor-General of India shall, in respect of a financial year, appoint an auditor duly qualified to be appointed as an auditor of companies under this Act, within a period of one hundred and eighty days from the commencement of the financial year, who shall hold office till the conclusion of the annual general meeting. (6) Notwithstanding anything contained in sub-section (1), the first auditor of a company, other than a Government company, shall be appointed by the Board of Directors within thirty days from the date of registration of the company and in the case of failure of the Board to appoint such auditor, it shall inform the members of the company, who shall within ninety days at an extraordinary general meeting appoint such auditor and such auditor shall hold office till the conclusion of the first annual general meeting. 1. Subs. by notification No. S.O. 2264(E), dated 30th June, 2016, for the proviso (w.e.f.1-4-2014). 97 ----- (7) Notwithstanding anything contained in sub-section (1) or sub-section (5), in the case of a Government company or any other company owned or controlled, directly or indirectly, by the Central Government, or by any State Government, or Governments, or partly by the Central Government and partly by one or more State Governments, the first auditor shall be appointed by the Comptroller and AuditorGeneral of India within sixty days from the date of registration of the company and in case the Comptroller and Auditor-General of India does not appoint such auditor within the said period, the Board of Directors of the company shall appoint such auditor within the next thirty days; and in the case of failure of the Board to appoint such auditor within the next thirty days, it shall inform the members of the company who shall appoint such auditor within the sixty days at an extraordinary general meeting, who shall hold office till the conclusion of the first annual general meeting. (8) Any casual vacancy in the office of an auditor shall— (i) in the case of a company other than a company whose accounts are subject to audit by an auditor appointed by the Comptroller and Auditor-General of India, be filled by the Board of Directors within thirty days, but if such casual vacancy is as a result of the resignation of an auditor, such appointment shall also be approved by the company at a general meeting convened within three months of the recommendation of the Board and he shall hold the office till the conclusion of the next annual general meeting; (ii) in the case of a company whose accounts are subject to audit by an auditor appointed by the Comptroller and Auditor-General of India, be filled by the Comptroller and Auditor-General of India within thirty days: Provided that in case the Comptroller and Auditor-General of India does not fill the vacancy within the said period, the Board of Directors shall fill the vacancy within next thirty days. (9) Subject to the provisions of sub-section (1) and the rules made thereunder, are tiring auditor may be re-appointed at an annual general meeting, if— (a) he is not disqualified for re-appointment; (b) he has not given the company a notice in writing of his unwillingness to be re-appointed; and (c) a special resolution has not been passed at that meeting appointing some other auditor or providing expressly that he shall not be re-appointed. (10) Where at any annual general meeting, no auditor is appointed or re-appointed, the existing auditor shall continue to be the auditor of the company. (11) Where a company is required to constitute an Audit Committee under section 177, all appointments, including the filling of a casual vacancy of an auditor under this section shall be made after taking into account the recommendations of such committee. **140. Removal, resignation of auditor and giving of special notice.—(1) The auditor appointed under** section 139 may be removed from his office before the expiry of his term only by a special resolution of the company, after obtaining the previous approval of the Central Government in that behalf in the prescribed manner: Provided that before taking any action under this sub-section, the auditor concerned shall be given a reasonable opportunity of being heard. (2) The auditor who has resigned from the company shall file within a period of thirty days from the date of resignation, a statement in the prescribed form with the company and the Registrar, and in case of companies referred to in sub-section (5) of section 139, the auditor shall also file such statement with the Comptroller and Auditor-General of India, indicating the reasons and other facts as may be relevant with regard to his resignation. 1[(3) If the auditor does not comply with the provisions of sub-section (2), he or it shall be liable to a penalty of fifty thousand rupees or an amount equal to the remuneration of the auditor, whichever is less, 1. Subs. by Act 22 of 2019, s. 23, for sub-section (3) (w.e.f. 2-11-2018). 98 ----- and in case of continuing failure, with a further penalty of five hundred rupees for each day after the first during which such failure continues, subject to a maximum of [1][two lakh rupees].] (4) (i) Special notice shall be required for a resolution at an annual general meeting appointing as auditor a person other than a retiring auditor, or providing expressly that a retiring auditor shall not be re-appointed, except where the retiring auditor has completed a consecutive tenure of five years or, as the case may be, ten years, as provided under sub-section (2) of section 139. (ii) On receipt of notice of such a resolution, the company shall forthwith send a copy thereof to the retiring auditor. (iii) Where notice is given of such a resolution and the retiring auditor makes with respect thereto representation in writing to the company (not exceeding a reasonable length) and requests its notification to members of the company, the company shall, unless the representation is received by it too late for it to do so,— (a) in any notice of the resolution given to members of the company, state the fact of the representation having been made; and (b) send a copy of the representation to every member of the company to whom notice of the meeting is sent, whether before or after the receipt of the representation by the company, and if a copy of the representation is not sent as aforesaid because it was received too late or because of the company’s default, the auditor may (without prejudice to his right to be heard orally) require that the representation shall be read out at the meeting: Provided that if a copy of representation is not sent as aforesaid, a copy thereof shall be filed with the Registrar: Provided further that if the Tribunal is satisfied on an application either of the company or of any other aggrieved person that the rights conferred by this sub-section are being abused by the auditor, then, the copy of the representation may not be sent and the representation need not be read out at the meeting. (5) Without prejudice to any action under the provisions of this Act or any other law for the time being in force, the Tribunal either suo motu or on an application made to it by the Central Government or by any person concerned, if it is satisfied that the auditor of a company has, whether directly or in directly, acted in a fraudulent manner or abetted or colluded in any fraud by, or in relation to, the company or its directors or officers, it may, by order, direct the company to change its auditors: Provided that if the application is made by the Central Government and the Tribunal is satisfied that any change of the auditor is required, it shall within fifteen days of receipt of such application, make an order that he shall not function as an auditor and the Central Government may appoint another auditor in his place: Provided further that an auditor, whether individual or firm, against whom final order has been passed by the Tribunal under this section shall not be eligible to be appointed as an auditor of any company for a period of five years from the date of passing of the order and the auditor shall also be liable for action under section 447. _Explanation I.—It is hereby clarified that the case of a firm, the liability shall be of the firm and that of_ every partner or partners who acted in a fraudulent manner or abetted or colluded in any fraud by, or in relation to, the company or its director or officers. _Explanation II.—For the purposes of this Chapter the word “auditor” includes a firm of auditors._ **141. Eligibility, qualifications and disqualifications of auditors.—(1) A person shall be eligible for** appointment as an auditor of a company only if he is a chartered accountant: Provided that a firm whereof majority of partners practising in India are qualified for appointment as aforesaid may be appointed by its firm name to be auditor of a company. 1. Subs. by Act 29 of 2020, s. 29, for “five lakh rupees” (w.e.f. 21-12-2020). 99 ----- (2) Where a firm including a limited liability partnership is appointed as an auditor of a company, only the partners who are chartered accountants shall be authorised to act and sign on behalf of the firm. (3) The following persons shall not be eligible for appointment as an auditor of a company, namely:— (a) a body corporate other than a limited liability partnership registered under the Limited Liability Partnership Act, 2008 (6 of 2009); (b) an officer or employee of the company; (c) a person who is a partner, or who is in the employment, of an officer or employee of the company; (d) a person who, or his relative or partner— (i) is holding any security of or interest in the company or its subsidiary, or of its holding or associate company or a subsidiary of such holding company: Provided that the relative may hold security or interest in the company office value not exceeding one thousand rupees or such sum as may be prescribed; (ii) is indebted to the company, or its subsidiary, or its holding or associate company or a subsidiary of such holding company, in excess of such amount as may be prescribed; or (iii) has given a guarantee or provided any security in connection with the indebtedness of any third person to the company, or its subsidiary, or its holding or associate company or a subsidiary of such holding company, for such amount as may be prescribed; (e) a person or a firm who, whether directly or indirectly, has business relationship with the company, or its subsidiary, or its holding or associate company or subsidiary of such holding company or associate company of such nature as may be prescribed; (f) a person whose relative is a director or is in the employment of the company as a director or key managerial personnel; (g) a person who is in full time employment elsewhere or a person or a partner of a firm holding appointment as its auditor, if such persons or partner is at the date of such appointment or reappointment holding appointment as auditor of more than twenty companies; (h) a person who has been convicted by a court of an offence involving fraud and a period of ten years has not elapsed from the date of such conviction; 1[(i) a person who, directly or indirectly, renders any service referred to in section 144 to the company or its holding company or its subsidiary company. _Explanation.—For the purposes of this clause, the term “directly or indirectly” shall have the meaning_ assigned to it in the Explanation to section 144.] (4) Where a person appointed as an auditor of a company incurs any of the disqualifications mentioned in sub-section (3) after his appointment, he shall vacate his office as such auditor and such vacation shall be deemed to be a casual vacancy in the office of the auditor. **142. Remuneration of auditors.—(1) The remuneration of the auditor of a company shall be fixed in** its general meeting or in such manner as may be determined therein: Provided that the Board may fix remuneration of the first auditor appointed by it. (2) The remuneration under sub-section (1) shall, in addition to the fee payable to an auditor, include the expenses, if any, incurred by the auditor in connection with the audit of the company and any facility extended to him but does not include any remuneration paid to him for any other service rendered by him at the request of the company. 1. Subs. by Act 1 of 2018, s. 42, for clause (i) (w.e.f. 9-2-2018). 100 ----- **143. Powers and duties of auditors and auditing standards.—(1) Every auditor of a company shall** have a right of access at all times to the books of account and vouchers of the company, whether kept at the registered office of the company or at any other place and shall be entitled to require from the officers of the company such information and explanation as he may consider necessary for the performance of his duties as auditor and amongst other matters inquire into the following matters, namely:— (a) whether loans and advances made by the company on the basis of security have been properly secured and whether the terms on which they have been made are prejudicial to the interests of the company or its members; (b) whether transactions of the company which are represented merely by book entries are prejudicial to the interests of the company; (c) where the company not being an investment company or a banking company, whether so much of the assets of the company as consist of shares, debentures and other securities have been sold at a price less than that at which they were purchased by the company; (d) whether loans and advances made by the company have been shown as deposits; (e) whether personal expenses have been charged to revenue account; (f) where it is stated in the books and documents of the company that any shares have been allotted for cash, whether cash has actually been received in respect of such allotment, and if no cash has actually been so received, whether the position as stated in the account books and the balance sheet is correct, regular and not misleading: Provided that the auditor of a company which is a holding company shall also have the right of access to the records of all [1][its subsidiaries and associate companies] in so far as it relates to the consolidation of its financial statements with that of [1][its subsidiaries and associate companies.] (2) The auditor shall make a report to the members of the company on the accounts examined by him and on every financial statements which are required by or under this Act to be laid before the company in general meeting and the report shall after taking into account the provisions of this Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of this Act or any rules made thereunder or under any order made under sub-section (11) and to the best of his information and knowledge, the said accounts, financial statements give a true and fair view of the state of the company’s affairs as at the end of its financial year and profit or loss and cash flow for the year and such other matters as may be prescribed. (3) The auditor’s report shall also state— (a) whether he has sought and obtained all the information and explanations which to the best of his knowledge and belief were necessary for the purpose of his audit and if not, the details thereof and the effect of such information on the financial statements; (b) whether, in his opinion, proper books of account as required by law have been kept by the company so far as appears from his examination of those books and proper returns adequate for the purposes of his audit have been received from branches not visited by him; (c) whether the report on the accounts of any branch office of the company audited under sub section (8) by a person other than the company’s auditor has been sent to him under the proviso to that sub-section and the manner in which he has dealt with it in preparing his report; (d) whether the company’s balance sheet and profit and loss account dealt within the report are in agreement with the books of account and returns; (e) whether, in his opinion, the financial statements comply with the accounting standards; (f) the observations or comments of the auditors on financial transactions or matters which have any adverse effect on the functioning of the company; (g) whether any director is disqualified from being appointed as a director under sub-section (2) of section 164; (h) any qualification, reservation or adverse remark relating to the maintenance of accounts and other matters connected therewith; 1. Subs. by Act 1 of 2018, s. 43, for “its subsidiaries” (w.e.f. 9-2-2018). 101 ----- (i) whether the company has adequate [1][internal financial controls with reference to financial statements] in place and the operating effectiveness of such controls; (j) such other matters as may be prescribed. (4) Where any of the matters required to be included in the audit report under this section is answered in the negative or with a qualification, the report shall state the reasons therefor. (5) [2][In the case of a Government company or any other company owned or controlled, directly or indirectly, by the Central Government, or by any State Government or Governments, or partly by the Central Government and partly by one or more State Governments, the Comptroller and Auditor General of India shall appoint the auditor under sub-section (5) or sub-section (7) of Section 139 and direct such auditor the manner in which the accounts of the company are required to be audited and] thereupon the auditor so appointed shall submit a copy of the audit report to the Comptroller and Auditor-General of India which, among other things, include the directions, if any, issued by the Comptroller and Auditor-General of India, the action taken thereon and its impact on the accounts and financial statement of the company. (6) The Comptroller and Auditor-General of India shall within sixty days from the date of receipt of the audit report under sub-section (5) have a right to,— (a) conduct a supplementary audit of the financial statement of the company by such person or persons as he may authorise in this behalf; and for the purposes of such audit, require information or additional information to be furnished to any person or persons, so authorised, on such matters, by such person or persons, and in such form, as the Comptroller and Auditor-General of India may direct; and (b) comment upon or supplement such audit report: Provided that any comments given by the Comptroller and Auditor-General of India upon, or supplement to, the audit report shall be sent by the company to every person entitled to copies of audited financial statements under sub section (1) of section 136 and also be placed before the annual general meeting of the company at the same time and in the same manner as the audit report. (7) Without prejudice to the provisions of this Chapter, the Comptroller and Auditor-General of India may, in case of any company covered under sub-section (5) or sub-section (7) of section 139, if he considers necessary, by an order, cause test audit to be conducted of the accounts of such company and the provisions of section 19A of the Comptroller and Auditor-General’s (Duties, Powers and Conditions of Service) Act, 1971 (56 of 1971), shall apply to the report of such test audit. (8) Where a company has a branch office, the accounts of that office shall be audited either by the auditor appointed for the company (herein referred to as the company’s auditor) under this Act or by any other person qualified for appointment as an auditor of the company under this Act and appointed as such under section 139, or where the branch office is situated in a country outside India, the accounts of the branch office shall be audited either by the company’s auditor or by an accountant or by any other person duly qualified to act as an auditor of the accounts of the branch office in accordance with the laws of that country and the duties and powers of the company’s auditor with reference to the audit of the branch and the branch auditor, if any, shall be such as may be prescribed: Provided that the branch auditor shall prepare a report on the accounts of the branch examined by him and send it to the auditor of the company who shall deal with it in his report in such manner as he considers necessary. (9) Every auditor shall comply with the auditing standards. (10) The Central Government may prescribe the standards of auditing or any addendum thereto, as recommended by the Institute of Chartered Accountants of India, constituted under section 3 of the Chartered Accountants Act, 1949 (38 of 1949), in consultation with and after examination of the recommendations made by the National Financial Reporting Authority: 1. Subs. by Act 1 of 2018, s. 43, for “internal financial controls system” (w.e.f. 9-2-2018). 2. Subs. by notification No. S.O. 2226(E), dated 4[th] September, 2014 for certain words (w.e.f. 4-9-2014). 102 ----- Provided that until any auditing standards are notified, any standard or standards of auditing specified by the Institute of Chartered Accountants of India shall be deemed to be the auditing standards. (11) The Central Government may, in consultation with the National Financial Reporting Authority, by general or special order, direct, in respect of such class or description of companies, as may be specified in the order, that the auditor’s report shall also include a statement on such matters as may be specified therein: 1[Provided that until the National Financial Reporting Authority is constituted under section 132, the Central Government may hold consultation required under this sub-section with the Committee chaired by an officer of the rank of Joint Secretary or equivalent in the Ministry of Corporate Affairs and the Committee shall have the representatives from the Institute of Chartered Accountants of India and Industry Chambers and also special invitees from the National Advisory Committee on Accounting Standards and the office of the Comptroller and Auditor-General.] 2[(12) Notwithstanding anything contained in this section, if an auditor of a company in the course of the performance of his duties as auditor, has reason to believe that an offence of fraud involving such amount or amounts as may be prescribed, is being or has been committed in the company by its officers or employees, the auditor shall report the matter to the Central Government within such time and in such manner as may be prescribed: Provided that in case of a fraud involving lesser than the specified amount, the auditor shall report the matter to the audit committee constituted under section 177 or to the Board in other cases within such time and in such manner as may be prescribed: Provided further that the companies, whose auditors have reported frauds under this sub-section to the audit committee or the Board but not reported to the Central Government, shall disclose the details about such frauds in the Board's report in such manner as may be prescribed.] (13) No duty to which an auditor of a company may be subject to shall be regarded as having been contravened by reason of his reporting the matter referred to in sub-section (12) if it is done in good faith. (14) The provisions of this section shall mutatis mutandis apply to— (a) the [3][cost accountant] conducting cost audit under section 148; or (b) the company secretary in practice conducting secretarial audit under section 204. 4[(15) If any auditor, cost accountant, or company secretary in practice does not comply with the provisions of sub-section (12), he shall, — (a) in case of a listed company, be liable to a penalty of five lakh rupees; and (b) in case of any other company, be liable to a penalty of one lakh rupees.] **144. Auditor not to render certain services.—An auditor appointed under this Act shall provide to** the company only such other services as are approved by the Board of Directors or the audit committee, as the case may be, but which shall not include any of the following services (whether such services are rendered directly or indirectly to the company), or its holding company or subsidiary company, namely:— (a) accounting and book keeping services; (b) internal audit; (c) design and implementation of any financial information system; (d) actuarial services; (e) investment advisory services; (f) investment banking services; 1. Ins. by notification No. S.O. 1226(E), dated 29th March, 2016 (w.e.f. 10-4-2015). 2. Subs. by Act 21 of 2015, s. 13, for sub-section (12) (w.e.f. 14-12-2015). 3. Subs. by Act 1 of 2018, s. 43, for “cost accountant in practice” (w.e.f. 9-2-2018). 4. Subs. by Act 29 of 2020, s. 30, for sub-section (15) (w.e.f. 21-12-2020). 103 ----- (g) rendering of outsourced financial services; (h) management services; and (i) any other kind of services as may be prescribed: Provided that an auditor or audit firm who or which has been performing any non-audit services on or before the commencement of this Act shall comply with the provisions of this section before the closure of the first financial year after the date of such commencement. _Explanation.—For the purposes of this sub-section, the term “directly or indirectly” shall include_ rendering of services by the auditor,— (i) in case of auditor being an individual, either himself or through his relative or any other person connected or associated with such individual or through any other entity, whatsoever, in which such individual has significant influence or control, or whose name or trade mark or brand is used by such individual; (ii) in case of auditor being a firm, either itself or through any of its partners or through its parent, subsidiary or associate entity or through any other entity, whatsoever, in which the firm or any partner of the firm has significant influence or control, or whose name or trade mark or brand is used by the firm or any of its partners. **145. Auditor to sign audit reports, etc.—The person appointed as an auditor of the company shall** sign the auditor’s report or sign or certify any other document of the company in accordance with the provisions of sub-section (2) of section 141, and the qualifications, observations or comments on financial transactions or matters, which have any adverse effect on the functioning of the company mentioned in the auditor’s report shall be read before the company in general meeting and shall be open to inspection by any member of the company. **146. Auditors to attend general meeting.—All notices of, and other communications relating to, any** general meeting shall be forwarded to the auditor of the company, and the auditor shall, unless otherwise exempted by the company, attend either by himself or through his authorised representative, who shall also be qualified to be an auditor, any general meeting and shall have right to be heard at such meeting on any part of the business which concerns him as the auditor. **147. Punishment for contravention.—(1) If any of the provisions of sections 139 to 146 (both** inclusive) is contravened, the company shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees and every officer of the company who is in default shall be punishable [1]*** with fine which shall not be less than ten thousand rupees but which may extend to [2][one lakh rupees]. (2) If an auditor of a company contravenes any of the provisions of section 139, section 143, section 144 or section 145, the auditor shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees [3][or four times the remuneration of the auditor, whichever is less]: Provided that if an auditor has contravened such provisions knowingly or willfully with the intention to deceive the company or its shareholders or creditors or tax authorities, he shall be punishable with imprisonment for a term which may extend to one year [4][and with fine which shall not be less than fifty thousand rupees but which may extend to twenty-five lakh rupees or eight times the remuneration of the auditor, whichever is less]. (3) Where an auditor has been convicted under sub-section (2), he shall be liable to— _(i) refund the remuneration received by him to the company; and_ 1. The words “with imprisonment for a term which may extend to one year or” omitted by Act 29 of 2020, s. 31 (w.e.f. 21-12 2020). 2. Subs. by s. 31, ibid., for “one lakh rupees, or with both” (w.e.f. 21-12-2020). 3. Ins. by Act 1 of 2018, s. 44 (w.e.f. 9-2-2018). 4. Subs. by Act 1 of 2018, s. 44, for “and with fine which shall not be less than one lakh rupees but which may extend to twenty five lakh rupees” (w.e.f. 9-2-2018). 104 ----- (ii) pay for damages to the company, statutory bodies or authorities [1][or to members or creditors of the company] for loss arising out of incorrect or misleading statements of particulars made in his audit report. (4) The Central Government shall, by notification, specify any statutory body or authority or an officer for ensuring prompt payment of damages to the company or the persons under clause (ii) of sub-section (3) and such body, authority or officer shall after payment of damages to such company or persons file a report with the Central Government in respect of making such damages in such manner as may be specified in the said notification. (5) Where, in case of audit of a company being conducted by an audit firm, it is proved that the partner or partners of the audit firm has or have acted in a fraudulent manner or a betted or colluded in any fraud by, or in relation to or by, the company or its directors or officers, the liability, whether civil or criminal as provided in this Act or in any other law for the time being in force, for such act shall be of the partner or partners concerned of the audit firm and of the firm jointly and severally. 2[Provided that in case of criminal liability of an audit firm, in respect of liability other than fine, the concerned partner or partners, who acted in a fraudulent manner or abetted or, as the case may be, colluded in any fraud shall only be liable.] **148. Central Government to specify audit of items of cost in respect of certain companies.—(1)** Notwithstanding anything contained in this Chapter, the Central Government may, by order, in respect of such class of companies engaged in the production of such goods or providing such services as may be prescribed, direct that particulars relating to the utilisation of material or labour or to other items of cost as may be prescribed shall also be included in the books of account kept by that class of companies: Provided that the Central Government shall, before issuing such order in respect of any class of companies regulated under a special Act, consult the regulatory body constituted or established under such special Act. (2) If the Central Government is of the opinion, that it is necessary to do so, it may, by order, direct that the audit of cost records of class of companies, which are covered under sub-section (1) and which have a net worth of such amount as may be prescribed or a turnover of such amount as may be prescribed, shall be conducted in the manner specified in the order. (3) The audit under sub-section (2) shall be conducted by a [3][cost accountant] who shall be appointed by the Board on such remuneration as may be determined by the members in such manner as may be prescribed: Provided that no person appointed under section 139 as an auditor of the company shall be appointed for conducting the audit of cost records: Provided further that the auditor conducting the cost audit shall comply with the cost auditing standards. _Explanation.—For the purposes of this sub-section, the expression “cost auditing standards” mean such_ standards as are issued by the [4][Institute of Cost Accountants of India], constituted under the Cost and Works Accountants Act, 1959 (23 of 1959), with the approval of the Central Government. (4) An audit conducted under this section shall be in addition to the audit conducted under section 143. (5) The qualifications, disqualifications, rights, duties and obligations applicable to auditors under this Chapter shall, so far as may be applicable, apply to a cost auditor appointed under this section and it shall be the duty of the company to give all assistance and facilities to the cost auditor appointed under this section for auditing the cost records of the company: Provided that the report on the audit of cost records shall be submitted by the [5][cost accountant] to the Board of Directors of the company. 1. Subs. by Act 1 of 2018, s. 44, for “or to any other persons” (w.e.f. 9-2-2018). 2. The proviso ins. by s. 44, ibid., (w.e.f. 9-2-2018). 3. Subs. by s. 45, ibid., for “Cost Accountant in practice”(w.e.f. 9-2-2018). 4. Subs. by s. 45, ibid., for “Institute of Cost and Works Accountants of India” (w.e.f. 9-2-2018). 5. Subs. by s. 45, ibid., for “cost accountant in practice”(w.e.f. 9-2-2018). 105 ----- (6) A company shall within thirty days from the date of receipt of a copy of the cost audit report prepared in pursuance of a direction under sub-section (2) furnish the Central Government with such report along with full information and explanation on every reservation or qualification contained therein. (7) If, after considering the cost audit report referred to under this section and the information and explanation furnished by the company under sub-section (6), the Central Government is of the opinion that any further information or explanation is necessary, it may call for such further information and explanation and the company shall furnish the same within such time as may be specified by that Government. (8) If any default is made in complying with the provisions of this section,— (a) the company and every officer of the company who is in default shall be punishable in the manner as provided in sub-section (1) of section 147; (b) the cost auditor of the company who is in default shall be punishable in the manner as provided in sub-sections (2) to (4) of section 147. CHAPTER XI APPOINTMENT AND QUALIFICATIONS OF DIRECTORS **149. Company to have Board of Directors.—(1) Every company shall have a Board of Directors** consisting of individuals as directors and shall have— (a) a minimum number of three directors in the case of a public company, two directors in the case of a private company, and one director in the case of a One Person Company; and (b) a maximum of fifteen directors: Provided that a company may appoint more than fifteen directors after passing a special resolution: Provided further that such class or classes of companies as may be prescribed, shall have at least one woman director. (2) Every company existing on or before the date of commencement of this Act shall within one year from such commencement comply with the requirements of the provisions of sub-section (1). 1[(3) Every company shall have at least one director who stays in India for a total period of not less than one hundred and eighty-two days during the financial year: Provided that in case of a newly incorporated company the requirement under this sub-section shall apply proportionately at the end of the financial year in which it is incorporated]; (4) Every listed public company shall have at least one-third of the total number of directors as independent directors and the Central Government may prescribe the minimum number of independent directors in case of any class or classes of public companies. _Explanation.—For the purposes of this sub-section, any fraction contained in such one-third number_ shall be rounded off as one. (5) Every company existing on or before the date of commencement of this Act shall, within one year from such commencement or from the date of notification of the rules in this regard as may be applicable, comply with the requirements of the provisions of sub-section (4). (6) An independent director in relation to a company, means a director other than managing director or a whole-time director or a nominee director,— (a) who, in the opinion of the Board, is a person of integrity and possesses relevant expertise and experience; (b) (i) who is or was not a promoter of the company or its holding, subsidiary or associate company; (ii) who is not related to promoters or directors in the company, its holding, subsidiary or associate company; 1. Subs. by Act 1 of 2018, s. 46, for sub-section (3) (w.e.f. 7-5-2018). 106 ----- (c) who has or had no [1][pecuniary relationship, other than remuneration as such director or having transaction not exceeding ten per cent. of his total income or such amount as may be prescribed,] with the company, its holding, subsidiary or associate company, or their promoters, or directors, during the two immediately preceding financial years or during the current financial year; 2[(d) none of whose relatives— (i) is holding any security of or interest in the company, its holding, subsidiary or associate company during the two immediately preceding financial years or during the current financial year: Provided that the relative may hold security or interest in the company of face value not exceeding fifty lakh rupees or two per cent. of the paid-up capital of the company, its holding, subsidiary or associate company or such higher sum as may be prescribed; (ii) is indebted to the company, its holding, subsidiary or associate company or their promoters, or directors, in excess of such amount as may be prescribed during the two immediately preceding financial years or during the current financial year; (iii) has given a guarantee or provided any security in connection with the indebtedness of any third person to the company, its holding, subsidiary or associate company or their promoters, or directors of such holding company, for such amount as may be prescribed during the two immediately preceding financial years or during the current financial year; or (iv) has any other pecuniary transaction or relationship with the company, or its subsidiary, or its holding or associate company amounting to two per cent. or more of its gross turnover or total income singly or in combination with the transactions referred to in sub-clause (i), (ii) or (iii);] (e) who, neither himself nor any of his relatives— (i) holds or has held the position of a key managerial personnel or is or has been employee of the company or its holding, subsidiary or associate company in any of the three financial years immediately preceding the financial year in which he is proposed to be appointed; 3[Provided that in case of a relative who is an employee, the restriction under this clause shall not apply for his employment during preceding three financial years.] (ii) is or has been an employee or proprietor or a partner, in any of the three financial years immediately preceding the financial year in which he is proposed to be appointed, of— (A) a firm of auditors or company secretaries in practice or cost auditors of the company or its holding, subsidiary or associate company; or (B) any legal or a consulting firm that has or had any transaction with the company, its holding, subsidiary or associate company amounting to ten per cent. or more of the gross turnover of such firm; (iii) holds together with his relatives two per cent. or more of the total voting power of the company; or (iv) is a Chief Executive or director, by whatever name called, of any nonprofit organisation that receives twenty-five per cent. or more of its receipts from the company, any of its promoters, directors or its holding, subsidiary or associate company or that holds two per cent. or more of the total voting power of the company; or (f) who possesses such other qualifications as may be prescribed. (7) Every independent director shall at the first meeting of the Board in which he participates as a director and thereafter at the first meeting of the Board in every financial year or whenever there is any change in the circumstances which may affect his status as an independent director, give a declaration that he meets the criteria of independence as provided in sub-section (6). 1. Subs. by Act 1 of 2018, s. 46, for “pecuniary relationship” (w.e.f. 7-5-2018). 2. Subs. by s. 46, ibid., for clause (d) (w.e.f. 7-5-2018). 3. The proviso ins. by s. 46, ibid., (w.e.f. 7-5-2018). 107 ----- _Explanation.—For the purposes of this section, “nominee director” means a director nominated by any_ financial institution in pursuance of the provisions of any law for the time being in force, or of any agreement, or appointed by any Government, or any other person to represent its interests. (8) The company and independent directors shall abide by the provisions specified in Schedule IV. (9) Notwithstanding anything contained in any other provision of this Act, but subject to the provisions of sections 197 and 198, an independent director shall not be entitled to any stock option and may receive remuneration by way of fee provided under sub-section (5) of section 197, reimbursement of expenses for participation in the Board and other meetings and profit related commission as may be approved by the members. 1[Provided that if a company has no profits or its profits are inadequate, an independent director may receive remuneration, exclusive of any fees payable under sub-section (5) of section 197, in accordance with the provisions of Schedule V.] (10) Subject to the provisions of section 152, an independent director shall hold office for a term up to five consecutive years on the Board of a company, but shall be eligible for reappointment on passing of a special resolution by the company and disclosure of such appointment in the Board's report. (11) Notwithstanding anything contained in sub-section (10), no independent director shall hold office for more than two consecutive terms, but such independent director shall be eligible for appointment after the expiration of three years of ceasing to become an independent director: Provided that an independent director shall not, during the said period of three years, be appointed in or be associated with the company in any other capacity, either directly or indirectly. _Explanation.—For the purposes of sub-sections (10) and (11), any tenure of an independent director on the_ date of commencement of this Act shall not be counted as a term under those sub-sections. (12) Notwithstanding anything contained in this Act,— (i) an independent director; (ii) a non-executive director not being promoter or key managerial personnel, shall be held liable, only in respect of such acts of omission or commission by a company which had occurred with his knowledge, attributable through Board processes, and with his consent or connivance or where he had not acted diligently. (13) The provisions of sub-sections (6) and (7) of section 152 in respect of retirement of directors by rotation shall not be applicable to appointment of independent directors. **150. Manner of selection of independent directors and maintenance of databank of independent** **directors.—(1) Subject to the provisions contained in sub-section (6) of section 149, an independent director** may be selected from a data bank containing names, addresses and qualifications of persons who are eligible and willing to act as independent directors, maintained by any body, institute or association, as may be notified by the Central Government, having expertise in creation and maintenance of such data bank and put on their website for the use by the company making the appointment of such directors: Provided that responsibility of exercising due diligence before selecting a person from the data bank referred to above, as an independent director shall lie with the company making such appointment. (2) The appointment of independent director shall be approved by the company in general meeting as provided in sub-section (2) of section 152 and the explanatory statement annexed to the notice of the general meeting called to consider the said appointment shall indicate the justification for choosing the appointee for appointment as independent director. (3) The data bank referred to in sub-section (1), shall create and maintain data of persons willing to act as independent director in accordance with such rules as may be prescribed. (4) The Central Government may prescribe the manner and procedure of selection of independent directors who fulfil the qualifications and requirements specified under section 149. **151. Appointment of director elected by small shareholders.—A listed company may have one** director elected by such small shareholders in such manner and with such terms and conditions as may be prescribed. 1. Ins. by Act 29 of 2020, s. 32 (w.e.f. 18-3-2021). 108 ----- _Explanation.—For the purposes of this section “small shareholders” means a shareholder holding_ shares of nominal value of not more than twenty thousand rupees or such other sum as may be prescribed. **152. Appointment of directors.—(1) Where no provision is made in the articles of a company for the** appointment of the first director, the subscribers to the memorandum who are individuals shall be deemed to be the first directors of the company until the directors are duly appointed and in case of a One Person Company an individual being member shall be deemed to be its first director until the director or directors are duly appointed by the member in accordance with the provisions of this section. (2) Save as otherwise expressly provided in this Act, every director shall be appointed by the company in general meeting. (3) No person shall be appointed as a director of a company unless he has been allotted the Director Identification Number under section 154 [1][or any other number as may be prescribed under section 153]. (4) Every person proposed to be appointed as a director by the company in general meeting or otherwise, shall furnish his Director Identification Number [1][or such other number as may be prescribed under section 153] and a declaration that he is not disqualified to become a director under this Act. (5) A person appointed as a director shall not act as a director unless he gives his consent to hold the office as director and such consent has been filed with the Registrar within thirty days of his appointment in such manner as may be prescribed: Provided that in the case of appointment of an independent director in the general meeting, an explanatory statement for such appointment, annexed to the notice for the general meeting, shall include a statement that in the opinion of the Board, he fulfils the conditions specified in this Act for such an appointment. (6) (a) Unless the articles provide for the retirement of all directors at every annual general meeting, not less than two-thirds of the total number of directors of a public company shall— (i) be persons whose period of office is liable to determination by retirement of directors by rotation; and (ii) save as otherwise expressly provided in this Act, be appointed by the company in general meeting. (b) The remaining directors in the case of any such company shall, in default of, and subject to any regulations in the articles of the company, also be appointed by the company in general meeting. (c) At the first annual general meeting of a public company held next after the date of the general meeting at which the first directors are appointed in accordance with clauses (a) and (b) and at every subsequent annual general meeting, one-third of such of the directors for the time being as are liable to retire by rotation, or if their number is neither three nor a multiple of three, then, the number nearest to one-third, shall retire from office. (d) The directors to retire by rotation at every annual general meeting shall be those who have been longest in office since their last appointment, but as between persons who became directors on the same day, those who are to retire shall, in default of and subject to any agreement among themselves, be determined by lot. (e) At the annual general meeting at which a director retires as aforesaid, the company may fill up the vacancy by appointing the retiring director or some other person thereto. _Explanation.—For the purposes of this sub-section, “total number of directors” shall not include_ independent directors, whether appointed under this Act or any other law for the time being in force, on the Board of a company. (7) (a) If the vacancy of the retiring director is not so filled-up and the meeting has not expressly resolved not to fill the vacancy, the meeting shall stand adjourned till the same day in the next week, at the 1. Ins. by Act 1 of 2018, s. 47 (w.e.f. 9-2-2018). 109 ----- same time and place, or if that day is a national holiday, till the next succeeding day which is not a holiday, at the same time and place. (b) If at the adjourned meeting also, the vacancy of the retiring director is not filled up and that meeting also has not expressly resolved not to fill the vacancy, the retiring director shall be deemed to have been reappointed at the adjourned meeting, unless— (i) at that meeting or at the previous meeting a resolution for the re-appointment of such director has been put to the meeting and lost; (ii) the retiring director has, by a notice in writing addressed to the company or its Board of directors, expressed his unwillingness to be so re-appointed; (iii) he is not qualified or is disqualified for appointment; (iv) a resolution, whether special or ordinary, is required for his appointment or re-appointment by virtue of any provisions of this Act; or (v) section 162 is applicable to the case. _Explanation.—For the purposes of this section and section 160, the expression “retiring director” means_ a director retiring by rotation. **153. Application for allotment of Director Identification Number.—Every individual intending to** be appointed as director of a company shall make an application for allotment of Director Identification Number to the Central Government in such form and manner and along with such fees as may be prescribed: 1[Provided that the Central Government may prescribe any identification number which shall be treated as Director Identification Number for the purposes of this Act and in case any individual holds or acquires such identification number, the requirement of this section shall not apply or apply in such manner as may be prescribed.] **154. Allotment of Director Identification Number.—The Central Government shall, within one** month from the receipt of the application under section 153, allot a Director Identification Number to an applicant in such manner as may be prescribed. **155. Prohibition to obtain more than one Director Identification Number.—No individual, who** has already been allotted a Director Identification Number under section 154, shall apply for, obtain or possess another Director Identification Number. **156. Director to intimate Director Identification Number.—Every existing director shall, within one** month of the receipt of Director Identification Number from the Central Government, intimate his Director Identification Number to the company or all companies wherein he is a director. **157. Company to inform Director Identification Number to Registrar.—(1) Every company shall,** within fifteen days of the receipt of intimation under section 156, furnish the Director Identification Number of all its directors to the Registrar or any other officer or authority as may be specified by the Central Government with such fees as may be prescribed or with such additional fees as may be prescribed [2]*** and every such intimation shall be furnished in such form and manner as may be prescribed. 3[(2) If any company fails to furnish the Director Identification Number under sub-section (1), such company shall be liable to a penalty of twenty-five thousand rupees and in case of continuing failure, with a further penalty of one hundred rupees for each day after the first during which such failure continues, subject to a maximum of one lakh rupees, and every officer of the company who is in default shall be liable to a penalty of not less than twenty-five thousand rupees and in case of continuing failure, with a further penalty of one hundred rupees for each day after the first during which such failure continues, subject to a maximum of one lakh rupees.] **158. Obligation to indicate Director Identification Number.—Every person or company, while** furnishing any return, information or particulars as are required to be furnished under this Act, shall mention the Director Identification Number in such return, information or particulars in case such return, information or particulars relate to the director or contain any reference of any director. 1. The proviso ins. by Act 1 of 2018, s. 48 (w.e.f. 9-2-2018). 2. The words and figures “within the time specified under section 403” omitted by Act 1 of 2018, s. 49 (w.e.f. 7-5-2018). 3. Subs. by Act 22 of 2019, s. 24, for sub-section (2) (w.e.f. 2-11-2018). 110 ----- **1[159.** **Penalty for default of certain provisions.—If any individual or director of a company makes** any default in complying with any of the provisions of section 152, section 155 and section 156, such individual or director of the company shall be liable to a penalty which may extend to fifty thousand rupees and where the default is a continuing one, with a further penalty which may extend to five hundred rupees for each day after the first during which such default continues.] **160. Right of persons other than retiring directors to stand for directorship.— (1) A person who** is not a retiring director in terms of section 152 shall, subject to the provisions of this Act, be eligible for appointment to the office of a director at any general meeting, if he, or some member intending to propose him as a director, has, not less than fourteen days before the meeting, left at the registered office of the company, a notice in writing under his hand signifying his candidature as a director or, as the case may be, the intention of such member to propose him as a candidate for that office, along with the deposit of one lakh rupees or such higher amount as may be prescribed which shall be refunded to such person or, as the case may be, to the member, if the person proposed gets elected as a director or gets more than twenty-five per cent. of total valid votes cast either on show of hands or on poll on such resolution. 2[Provided that requirements of deposit of amount shall not apply in case of appointment of an independent director or a director recommended by the Nomination and Remuneration Committee, if any, constituted under sub-section (1) of section 178 or a director recommended by the Board of Directors of the Company, in the case of a company not required to constitute Nomination and Remuneration Committee.] (2) The company shall inform its members of the candidature of a person for the office of director under sub-section (1) in such manner as may be prescribed. **161. Appointment of additional director, alternate director and nominee director.—(1) The** articles of a company may confer on its Board of Directors the power to appoint any person, other than a person who fails to get appointed as a director in a general meeting, as an additional director at any time who shall hold office up to the date of the next annual general meeting or the last date on which the annual general meeting should have been held, whichever is earlier. (2) The Board of Directors of a company may, if so authorised by its articles or by a resolution passed by the company in general meeting, appoint a person, not being a person holding any alternate directorship for any other director in the company [3][or holding directorship in the same company], to act as an alternate director for a director during his absence for a period of not less than three months from India: Provided that no person shall be appointed as an alternate director for an independent director unless he is qualified to be appointed as an independent director under the provisions of this Act: Provided further that an alternate director shall not hold office for a period longer than that permissible to the director in whose place he has been appointed and shall vacate the office if and when the director in whose place he has been appointed returns to India: Provided also that if the term of office of the original director is determined before he so returns to India, any provision for the automatic re-appointment of retiring directors in default of another appointment shall apply to the original, and not to the alternate director. (3) Subject to the articles of a company, the Board may appoint any person as a director nominated by any institution in pursuance of the provisions of any law for the time being in force or of any agreement or by the Central Government or the State Government by virtue of its shareholding in a Government company. (4) [4]*** If the office of any director appointed by the company in general meeting is vacated before his term of office expires in the normal course, the resulting casual vacancy may, in default of and subject to any regulations in the articles of the company, be filled by the Board of Directors at a meeting of the Board 1[which shall be subsequently approved by members in the immediate next general meeting]: 1. Subs. by Act 22 of 2019, s. 25, for section 159 (w.e.f. 2-11-2018). 2. The proviso ins. by Act 1 of 2018, s. 50 (w.e.f. 9-2-2018). 3. Ins. by Act 1 of 2018, s. 51 (w.e.f. 9-2-2018). 4. The words “In the case of a public company,” omitted by s. 51, ibid. (w.e.f. 9-2-2018). 111 ----- Provided that any person so appointed shall hold office only up to the date up to which the director in whose place he is appointed would have held office if it had not been vacated. **162. Appointment of directors to be voted individually.—(1) At a general meeting of a company, a** motion for the appointment of two or more persons as directors of the company by a single resolution shall not be moved unless a proposal to move such a motion has first been agreed to at the meeting without any vote being cast against it. (2) A resolution moved in contravention of sub-section (1) shall be void, whether or not any objection was taken when it was moved. (3) A motion for approving a person for appointment, or for nominating a person for appointment as a director, shall be treated as a motion for his appointment. **163. Option to adopt principle of proportional representation for appointment of directors.—** Notwithstanding anything contained in this Act, the articles of a company may provide for the appointment of not less than two-thirds of the total number of the directors of a company in accordance with the principle of proportional representation, whether by the single transferable vote or by a system of cumulative voting or otherwise and such appointments may be made once in every three years and casual vacancies of such directors shall be filled as provided in sub-section (4) of section 161. **164. Disqualifications for appointment of director.—(1) A person shall not be eligible for** appointment as a director of a company, if — (a) he is of unsound mind and stands so declared by a competent court; (b) he is an undischarged insolvent; (c) he has applied to be adjudicated as an insolvent and his application is pending; (d) he has been convicted by a court of any offence, whether involving moral turpitude or otherwise, and sentenced in respect thereof to imprisonment for not less than six months and a period of five years has not elapsed from the date of expiry of the sentence: Provided that if a person has been convicted of any offence and sentenced in respect thereof to imprisonment for a period of seven years or more, he shall not be eligible to be appointed as a director in any company; (e) an order disqualifying him for appointment as a director has been passed by a court or Tribunal and the order is in force; (f) he has not paid any calls in respect of any shares of the company held by him, whether alone or jointly with others, and six months have elapsed from the last day fixed for the payment of the call; (g) he has been convicted of the offence dealing with related party transactions under section 188 at any time during the last preceding five years; or (h) he has not complied with sub-section (3) of section 152. 1[(i) he has not complied with the provisions of sub-section (1) of section 165.] (2) No person who is or has been a director of a company which— (a) has not filed financial statements or annual returns for any continuous period of three financial years; or (b) has failed to repay the deposits accepted by it or pay interest thereon or to redeem any debentures on the due date or pay interest due thereon or pay any dividend declared and such failure to pay or redeem continues for one year or more, shall be eligible to be re-appointed as a director of that company or appointed in other company for a period of five years from the date on which the said company fails to do so: 1. Ins. by Act 22 of 2019, s. 26 (w.e.f. 2-11-2018). 112 ----- 1[Provided that where a person is appointed as a director of a company which is in default of clause (a) or clause (b), he shall not incur the disqualification for a period of six months from the date of his appointment.] (3) A private company may by its articles provide for any disqualifications for appointment as a director in addition to those specified in sub-sections (1) and (2). 2[Provided that the disqualifications referred to in clauses (d), (e) and (g) of sub-section (1) shall continue to apply even if the appeal or petition has been filed against the order of conviction or disqualification.] **165. Number of directorships.—(1) No person, after the commencement of this Act, shall hold office** as a director, including any alternate directorship, in more than twenty companies at the same time: Provided that the maximum number of public companies in which a person can be appointed as a director shall not exceed ten. 3[Explanation I ].— For reckoning the limit of public companies in which a person can be appointed as director, directorship in private companies that are either holding or subsidiary company of a public company shall be included. 4[Explanation II.—For reckoning the limit of directorships of twenty companies, the directorship in a dormant company shall not be included.] (2) Subject to the provisions of sub-section (1), the members of a company may, by special resolution, specify any lesser number of companies in which a director of the company may act as directors. (3) Any person holding office as director in companies more than the limits as specified in sub section (1), immediately before the commencement of this Act shall, within a period of one year from such commencement,— (a) choose not more than the specified limit of those companies, as companies in which he wishes to continue to hold the office of director; (b) resign his office as director in the other remaining companies; and (c) intimate the choice made by him under clause (a), to each of the companies in which he was holding the office of director before such commencement and to the Registrar having jurisdiction in respect of each such company. (4) Any resignation made in pursuance of clause (b) of sub-section (3) shall become effective immediately on the despatch thereof to the company concerned. (5) No such person shall act as director in more than the specified number of companies,— (a) after despatching the resignation of his office as director or non-executive director thereof, in pursuance of clause (b) of sub-section (3); or (b) after the expiry of one year from the commencement of this Act, whichever is earlier. 5[(6) If a person accepts an appointment as a director in violation of this section, he shall be liable to a penalty of two thousand rupees for each day after the first during which such violation continues, subject to a maximum of two lakh rupees.] **166. Duties of directors.—(1) Subject to the provisions of this Act, a director of a company shall act** in accordance with the articles of the company. 1. The proviso ins. by Act 1 of 2018, s. 52 (w.e.f. 7-5-2018). 2. The proviso subs. by Act 1 of 2018, s. 52 (w.e.f. 7-5-2018). 3. The Explanation renumbered as Explanation I thereof by s. 53, ibid. (w.e.f. 9-2-2018). 4. Ins. by s. 53, ibid. (w.e.f. 9-2-2018). 5. Subs. by Act 29 of 2020, s. 33, for sub-section (6) (w.e.f. 21-12-2020). 113 ----- (2) A director of a company shall act in good faith in order to promote the objects of the company for the benefit of its members as a whole, and in the best interests of the company, its employees, the shareholders, the community and for the protection of environment. (3) A director of a company shall exercise his duties with due and reasonable care, skill and diligence and shall exercise independent judgment. (4) A director of a company shall not involve in a situation in which he may have a direct or indirect interest that conflicts, or possibly may conflict, with the interest of the company. (5) A director of a company shall not achieve or attempt to achieve any undue gain or advantage either to himself or to his relatives, partners, or associates and if such director is found guilty of making any undue gain, he shall be liable to pay an amount equal to that gain to the company. (6) A director of a company shall not assign his office and any assignment so made shall be void. (7) If a director of the company contravenes the provisions of this section such director shall be punishable with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees. **167. Vacation of office of director.—(1) The office of a director shall become vacant in case—** (a) he incurs any of the disqualifications specified in section 164: 1[Provided that where he incurs disqualification under sub-section (2) of section 164, the office of the director shall become vacant in all the companies, other than the company which is in default under that sub-section]; (b) he absents himself from all the meetings of the Board of Directors held during a period of twelve months with or without seeking leave of absence of the Board; (c) he acts in contravention of the provisions of section 184 relating to entering into contracts or arrangements in which he is directly or indirectly interested; (d) he fails to disclose his interest in any contract or arrangement in which he is directly or indirectly interested, in contravention of the provisions of section 184; (e) he becomes disqualified by an order of a court or the Tribunal; (f) he is convicted by a court of any offence, whether involving moral turpitude or otherwise and sentenced in respect thereof to imprisonment for not less than six months: 2[Provided that the office shall not be vacated by the director in case of orders referred to in clauses (e) and (f)— (i) for thirty days from the date of conviction or order of disqualification; (ii) where an appeal or petition is preferred within thirty days as aforesaid against the conviction resulting in sentence or order, until expiry of seven days from the date on which such appeal or petition is disposed of; or (iii) where any further appeal or petition is preferred against order or sentence within seven days, until such further appeal or petition is disposed of.] (g) he is removed in pursuance of the provisions of this Act; (h) he, having been appointed a director by virtue of his holding any office or other employment in the holding, subsidiary or associate company, ceases to hold such office or other employment in that company. 1. The proviso ins. by Act 1 of 2018, s. 54 (w.e.f. 7-5-2018). 2. The proviso subs. by Act 1 of 2018, s. 54 (w.e.f. 7-5-2018). 114 ----- (2) If a person, functions as a director even when he knows that the office of director held by him has become vacant on account of any of the disqualifications specified in sub-section (1), he shall be punishable 1*** with fine which shall not be less than one lakh rupees but which may extend to 2[five lakh rupees]. (3) Where all the directors of a company vacate their offices under any of the disqualifications specified in sub-section (1), the promoter or, in his absence, the Central Government shall appoint the required number of directors who shall hold office till the directors are appointed by the company in the general meeting. (4) A private company may, by its articles, provide any other ground for the vacation of the office of a director in addition to those specified in sub-section (1). **168. Resignation of director.—(1) A director may resign from his office by giving a notice in writing** to the company and the Board shall on receipt of such notice take note of the same and the company shall intimate the Registrar in such manner, within such time and in such form as may be prescribed and shall also place the fact of such resignation in the report of directors laid in the immediately following general meeting by the company: Provided that a [3][director may also forward] a copy of his resignation along with detailed reasons for the resignation to the Registrar within thirty days of resignation in such manner as may be prescribed. (2) The resignation of a director shall take effect from the date on which the notice is received by the company or the date, if any, specified by the director in the notice, whichever is later: Provided that the director who has resigned shall be liable even after his resignation for the offences which occurred during his tenure. (3) Where all the directors of a company resign from their offices, or vacate their offices under section 167, the promoter or, in his absence, the Central Government shall appoint the required number of directors who shall hold office till the directors are appointed by the company in general meeting. **169. Removal of directors.—(1) A company may, by ordinary resolution, remove a director, not being** a director appointed by the Tribunal under section 242, before the expiry of the period of his office after giving him a reasonable opportunity of being heard: 4[Provided that an independent director re-appointed for second term under sub-section (10) of section 149 shall be removed by the company only by passing a special resolution and after giving him a reasonable opportunity of being heard:] 5[Provided further that] nothing contained in this sub-section shall apply where the company has availed itself of the option given to it under section 163 to appoint not less than two-thirds of the total number of directors according to the principle of proportional representation. (2) A special notice shall be required of any resolution, to remove a director under this section, or to appoint somebody in place of a director so removed, at the meeting at which he is removed. (3) On receipt of notice of a resolution to remove a director under this section, the company shall forthwith send a copy thereof to the director concerned, and the director, whether or not he is a member of the company, shall be entitled to be heard on the resolution at the meeting. (4) Where notice has been given of a resolution to remove a director under this section and the director concerned makes with respect thereto representation in writing to the company and requests its notification to members of the company, the company shall, if the time permits it to do so,— (a) in any notice of the resolution given to members of the company, state the fact of the representation having been made; and (b) send a copy of the representation to every member of the company to whom notice of the meeting is sent (whether before or after receipt of the representation by the company), 1. The words “with imprisonment for a term which may extend to one year or” omitted by Act 29 of 2020, s. 34 (w.e.f. 21-12 2020). 2. Subs. by s. 34, ibid., for “five lakh rupees, or with both” (w.e.f. 21-12-2020). 3. Subs. by Act 1 of 2018, s. 55, for “director shall also forward” (w.e.f. 7-5-2018). 4. The proviso ins. by Notification No. S.O. 768(E), dated 21[st] February, 2018 (w.e.f. 21-2-2018). 5. Subs. by ibid., for “Provided that”(w.e.f. 21-2-2018). 115 ----- and if a copy of the representation is not sent as aforesaid due to insufficient time or for the company’s default, the director may without prejudice to his right to be heard orally require that the representation shall be read out at the meeting: Provided that copy of the representation need not be sent out and the representation need not be read out at the meeting if, on the application either of the company or of any other person who claims to be aggrieved, the Tribunal is satisfied that the rights conferred by this sub-section are being abused to secure needless publicity for defamatory matter; and the Tribunal may order the company’s costs on the application to be paid in whole or in part by the director notwithstanding that he is not a party to it. (5) A vacancy created by the removal of a director under this section may, if he had been appointed by the company in general meeting or by the Board, be filled by the appointment of another director in his place at the meeting at which he is removed, provided special notice of the intended appointment has been given under sub-section (2). (6) A director so appointed shall hold office till the date up to which his predecessor would have held office if he had not been removed. (7) If the vacancy is not filled under sub-section (5), it may be filled as a casual vacancy in accordance with the provisions of this Act: Provided that the director who was removed from office shall not be re-appointed as a director by the Board of Directors. (8) Nothing in this section shall be taken— (a) as depriving a person removed under this section of any compensation or damages payable to him in respect of the termination of his appointment as director as per the terms of contract or terms of his appointment as director, or of any other appointment terminating with that as director; or (b) as derogating from any power to remove a director under other provisions of this Act. **170. Register of directors and key managerial personnel and their shareholding.—(1) Every** company shall keep at its registered office a register containing such particulars of its directors and key managerial personnel as may be prescribed, which shall include the details of securities held by each of them in the company or its holding, subsidiary, subsidiary of company’s holding company or associate companies. (2) A return containing such particulars and documents as may be prescribed, of the directors and the key managerial personnel shall be filed with the Registrar within thirty days from the appointment of every director and key managerial personnel, as the case may be, and within thirty days of any change taking place. **171. Members’ right to inspect.—(1) The register kept under sub-section (1) of section 170,—** (a) shall be open for inspection during business hours and the members shall have a right to take extracts therefrom and copies thereof, on a request by the members, be provided to them free of cost within thirty days; and (b) shall also be kept open for inspection at every annual general meeting of the company and shall be made accessible to any person attending the meeting. (2) If any inspection as provided in clause (a) of sub-section (1) is refused, or if any copy required under that clause is not sent within thirty days from the date of receipt of such request, the Registrar shall on an application made to him order immediate inspection and supply of copies required thereunder. **1[172. Penalty.—** If a company is in default in complying with any of the provisions of this Chapter and for which no specific penalty or punishment is provided therein, the company and every officer of the company who is in default shall be liable to a penalty of fifty thousand rupees, and in case of continuing failure, with a further penalty of five hundred rupees for each day during which such failure continues, subject to a maximum of three lakh rupees in case of a company and one lakh rupees in case of an officer who is in default.] 1. Subs. by Act 29 of 2020, s. 35, for section 35 (w.e.f. 21-12-2020). 116 ----- CHAPTER XII MEETINGS OF BOARD AND ITS POWERS **173. Meetings of Board.—(1) Every company shall hold the first meeting of the Board of Directors** within thirty days of the date of its incorporation and thereafter hold a minimum number of four meetings of its Board of Directors every year in such a manner that not more than one hundred and twenty days shall intervene between two consecutive meetings of the Board: Provided that the Central Government may, by notification, direct that the provisions of this sub section shall not apply in relation to any class or description of companies or shall apply subject to such exceptions, modifications or conditions as may be specified in the notification. (2) The participation of directors in a meeting of the Board may be either in person or through video conferencing or other audio visual means, as may be prescribed, which are capable of recording and recognising the participation of the directors and of recording and storing the proceedings of such meetings along with date and time: Provided that the Central Government may, by notification, specify such matters which shall not be dealt with in a meeting through video conferencing or other audio visual means. 1[Provided further that where there is quorum in a meeting through physical presence of directors, any other director may participate through video conferencing or other audio visual means in such meeting on any matter specified under the first proviso.] (3) A meeting of the Board shall be called by giving not less than seven days’ notice in writing to every director at his address registered with the company and such notice shall be sent by hand delivery or by post or by electronic means: Provided that a meeting of the Board may be called at shorter notice to transact urgent business subject to the condition that at least one independent director, if any, shall be present at the meeting: Provided further that in case of absence of independent directors from such a meeting of the Board, decisions taken at such a meeting shall be circulated to all the directors and shall be final only on ratification thereof by at least one independent director, if any. (4) Every officer of the company whose duty is to give notice under this section and who fails to do so shall be liable to a penalty of twenty-five thousand rupees. _(5) A One Person Company, small company and dormant company shall be deemed to have complied_ with the provisions of this section if at least one meeting of the Board of Directors has been conducted in each half of a calendar year and the gap between the two meetings is not less than ninety days: Provided that nothing contained in this sub-section and in section 174 shall apply to One Person Company in which there is only one director on its Board of Directors. **174. Quorum for meetings of Board.—(1) The quorum for a meeting of the Board of Directors of a** company hall be one-third of its total strength or two directors, whichever is higher, and the participation of the directors by video conferencing or by other audio visual means shall also be counted for the purposes of quorum under this sub-section. (2) The continuing directors may act notwithstanding any vacancy in the Board; but, if and so long as their number is reduced below the quorum fixed by the Act for a meeting of the Board, the continuing directors or director may act for the purpose of increasing the number of directors to that fixed for the quorum, or of summoning a general meeting of the company and for no other purpose. (3) Where at any time the number of interested directors exceeds or is equal to two-thirds of the total strength of the Board of Directors, the number of directors who are not interested directors and present at the meeting, being not less than two, shall be the quorum during such time. 1. The proviso ins. by Act 1 of 2018, s. 56 (w.e.f. 7-5-2018). 117 ----- _Explanation.—For the purposes of this sub-section, “interested director” means a director within the_ meaning of sub-section (2) of section 184. (4) Where a meeting of the Board could not be held for want of quorum, then, unless the articles of the company otherwise provide, the meeting shall automatically stand adjourned to the same day at the same time and place in the next week or if that day is a national holiday, till the next succeeding day, which is not a national holiday, at the same time and place. _Explanation.—For the purposes of this section,—_ (i) any fraction of a number shall be rounded off as one; (ii) “total strength” shall not include directors whose places are vacant. **175. Passing of resolution by circulation.—(1) No resolution shall be deemed to have been duly** passed by the Board or by a committee thereof by circulation, unless the resolution has been circulated in draft, together with the necessary papers, if any, to all the directors, or members of the committee, as the case may be, at their addresses registered with the company in India by hand delivery or by post or by courier, or through such electronic means as may be prescribed and has been approved by a majority of the directors or members, who are entitled to vote on the resolution: Provided that, where not less than one-third of the total number of directors of the company for the time being require that any resolution under circulation must be decided at a meeting, the chairperson shall put the resolution to be decided at a meeting of the Board. (2) A resolution under sub-section (1) shall be noted at a subsequent meeting of the Board or the committee thereof, as the case may be, and made part of the minutes of such meeting. **176. Defects in appointment of directors not to invalidate actions taken.—No act done by a person** as a director shall be deemed to be invalid, notwithstanding that it was subsequently noticed that his appointment was invalid by reason of any defect or disqualification or had terminated by virtue of any provision contained in this Act or in the articles of the company: Provided that nothing in this section shall be deemed to give validity to any act done by the director after his appointment has been noticed by the company to be invalid or to have terminated. **177. Audit Committee.—(1) The Board of Directors of [1][every listed public company] and such other** class or classes of companies, as may be prescribed, shall constitute an Audit Committee. (2) The Audit Committee shall consist of a minimum of three directors with independent directors forming a majority: Provided that majority of members of Audit Committee including its Chairperson shall be persons with ability to read and understand, the financial statement. (3) Every Audit Committee of a company existing immediately before the commencement of this Act shall, within one year of such commencement, be reconstituted in accordance with sub-section (2). (4) Every Audit Committee shall act in accordance with the terms of reference specified in writing by the Board which shall, inter alia, include,— (i) the recommendation for appointment, remuneration and terms of appointment of auditors of the company; (ii) review and monitor the auditor’s independence and performance, and effectiveness of audit process; (iii) examination of the financial statement and the auditors’ report thereon; (iv) approval or any subsequent modification of transactions of the company with related parties: 1. Subs. by Act 1 of 2018, s. 57, for “every listed company” (w.e.f. 7-5-2018). 118 ----- 1[Provided that the Audit Committee may make omnibus approval for related party transactions proposed to be entered into by the company subject to such conditions as may be prescribed;] 2[Provided further that in case of transaction, other than transactions referred to in section 188, and where Audit Committee does not approve the transaction, it shall make its recommendations to the Board: Provided also that in case any transaction involving any amount not exceeding one crore rupees is entered into by a director or officer of the company without obtaining the approval of the Audit Committee and it is not ratified by the Audit Committee within three months from the date of the transaction, such transaction shall be voidable at the option of the Audit Committee and if the transaction is with the related party to any director or is authorised by any other director, the director concerned shall indemnify the company against any loss incurred by it: Provided also that the provisions of this clause shall not apply to a transaction, other than a transaction referred to in section 188, between a holding company and its wholly owned subsidiary company.] (v) scrutiny of inter-corporate loans and investments; (vi) valuation of undertakings or assets of the company, wherever it is necessary; (vii) evaluation of internal financial controls and risk management systems; (viii) monitoring the end use of funds raised through public offers and related matters. (5) The Audit Committee may call for the comments of the auditors about internal control systems, the scope of audit, including the observations of the auditors and review of financial statement before their submission to the Board and may also discuss any related issues with the internal and statutory auditors and the management of the company. (6) The Audit Committee shall have authority to investigate into any matter in relation to the items specified in sub-section (4) or referred to it by the Board and for this purpose shall have power to obtain professional advice from external sources and have full access to information contained in the records of the company. (7) The auditors of a company and the key managerial personnel shall have a right to be heard in the meetings of the Audit Committee when it considers the auditor’s report but shall not have the right to vote. (8) The Board’s report under sub-section (3) of section 134 shall disclose the composition of an Audit Committee and where the Board had not accepted any recommendation of the Audit Committee, the same shall be disclosed in such report along with the reasons therefor. (9) Every listed company or such class or classes of companies, as may be prescribed, shall establish a vigil mechanism for directors and employees to report genuine concerns in such manner as may be prescribed. (10) The vigil mechanism under sub-section (9) shall provide for adequate safeguards against victimisation of persons who use such mechanism and make provision for direct access to the chairperson of the Audit Committee in appropriate or exceptional cases: Provided that the details of establishment of such mechanism shall be disclosed by the company on its website, if any, and in the Board’s report. **178.** **Nomination** **and** **Remuneration** **Committee** **and** **Stakeholders** **Relationship** **Committee.—(1) The Board of Directors of [3][every listed public company] and such other class or classes** of companies, as may be prescribed shall constitute the Nomination and Remuneration Committee consisting of three or more non-executive directors out of which not less than one-half shall be independent directors: 1. The proviso ins. by Act 21 of 2015, s. 14 (w.e.f. 14-12-2015). 2. Ins. by Act 1 of 2018, s. 57 (w.e.f. 7-5-2018). 3. Subs. by Act 1 of 2018, s. 58, for “every listed company” (w.e.f. 7-5-2018). 119 ----- Provided that the chairperson of the company (whether executive or non-executive) may be appointed as a member of the Nomination and Remuneration Committee but shall not chair such Committee. (2) The Nomination and Remuneration Committee shall identify persons who are qualified to become directors and who may be appointed in senior management in accordance with the criteria laid down, recommend to the Board their appointment and removal and [1][shall specify the manner for effective evaluation of performance of Board, its committees and individual directors to be carried out either by the Board, by the Nomination and Remuneration Committee or by an independent external agency and review its implementation and compliance]. (3) The Nomination and Remuneration Committee shall formulate the criteria for determining qualifications, positive attributes and independence of a director and recommend to the Board a policy, relating to the remuneration for the directors, key managerial personnel and other employees. (4) The Nomination and Remuneration Committee shall, while formulating the policy under sub-section (3) ensure that— (a) the level and composition of remuneration is reasonable and sufficient to attract, retain and motivate directors of the quality required to run the company successfully; (b) relationship of remuneration to performance is clear and meets appropriate performance benchmarks; and (c) remuneration to directors, key managerial personnel and senior management involves a balance between fixed and incentive pay reflecting short and long-term performance objectives appropriate to the working of the company and its goals: 2[Provided that such policy shall be placed on the website of the company, if any, and the salient features of the policy and changes therein, if any, along with the web address of the policy, if any, shall be disclosed in the Board's report.] (5) The Board of Directors of a company which consists of more than one thousand shareholders, debenture-holders, deposit-holders and any other security holders at anytime during a financial year shall constitute a Stakeholders Relationship Committee consisting of a chairperson who shall be a nonexecutive director and such other members as may be decided by the Board. (6) The Stakeholders Relationship Committee shall consider and resolve the grievances of security holders of the company. (7) The chairperson of each of the committees constituted under this section or, in his absence, any other member of the committee authorised by him in this behalf shall attend the general meetings of the company. (8) In case of any contravention of the provisions of section 177 and this section, the company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees and every officer of the company who is in default shall be [3][liable to a penalty of five lakh rupees and every officer of the company who is in default shall be liable to a penalty of one lakh rupees]: Provided that [4][inability to resolve or consider any grievance] by the Stakeholders Relationship Committee in good faith shall not constitute a contravention of this section. _Explanation.—The expression “senior management” means personnel of the company who are_ members of its core management team excluding Board of Directors comprising all members of management one level below the executive directors, including the functional heads. **179. Powers of Board.—(1) The Board of Directors of a company shall be entitled to exercise all such** powers, and to do all such acts and things, as the company is authorised to exercise and do: 1. Subs. by s. 58, ibid., for “shall carry out evaluation of every director’s performance” (w.e.f. 7-5-2018). 2. Subs. by Act 1 of 2018, s. 58, for the proviso (w.e.f. 7-5-2018). 3. Subs. by Act 29 of 2020, s. 36, for certain words (w.e.f. 21-12-2020). 4. Subs. by Act 1 of 2018, s. 58, for “non-consideration of resolution of any grievance” (w.e.f. 7-5-2018). 120 ----- Provided that in exercising such power or doing such act or thing, the Board shall be subject to the provisions contained in that behalf in this Act, or in the memorandum or articles, or in any regulations not inconsistent therewith and duly made thereunder, including regulations made by the company in general meeting: Provided further that the Board shall not exercise any power or do any act or thing which is directed or required, whether under this Act or by the memorandum or articles of the company or otherwise, to be exercised or done by the company in general meeting. (2) No regulation made by the company in general meeting shall invalidate any prior act of the Board which would have been valid if that regulation had not been made. (3) The Board of Directors of a company shall exercise the following powers on behalf of the company by means of resolutions passed at meetings of the Board, namely:— (a) to make calls on shareholders in respect of money unpaid on their shares; (b) to authorise buy-back of securities under section 68; (c) to issue securities, including debentures, whether in or outside India; (d) to borrow monies; (e) to invest the funds of the company; (f) to grant loans or give guarantee or provide security in respect of loans; (g) to approve financial statement and the Board’s report; (h) to diversify the business of the company; (i) to approve amalgamation, merger or reconstruction; (j) to take over a company or acquire a controlling or substantial stake in another company; (k) any other matter which may be prescribed: Provided that the Board may, by a resolution passed at a meeting, delegate to any committee of directors, the managing director, the manager or any other principal officer of the company or in the case of a branch office of the company, the principal officer of the branch office, the powers specified in clauses (d) to (f) on such conditions as it may specify: Provided further that the acceptance by a banking company in the ordinary course of its business of deposits of money from the public repayable on demand or otherwise and withdraw able by cheque, draft, order or otherwise, or the placing of monies on deposit by a banking company with another banking company on such conditions as the Board may prescribe, shall not be deemed to be a borrowing of monies or, as the case may be, a making of loans by a banking company within the meaning of this section. _Explanation I.—Nothing in clause (d) shall apply to borrowings by a banking company from other_ banking companies or from the Reserve Bank of India, the State Bank of India or any other banks established by or under any Act. _Explanation II.—In respect of dealings between a company and its bankers, the exercise by the_ company of the power specified in clause (d) shall mean the arrangement made by the company with its bankers for the borrowing of money by way of overdraft or cash credit or otherwise and not the actual dayto-day operation on overdraft, cash credit or other accounts by means of which the arrangement so made is actually availed of. (4) Nothing in this section shall be deemed to affect the right of the company in general meeting to impose restrictions and conditions on the exercise by the Board of any of the powers specified in this section. **180. Restrictions on powers of Board.—(1) The Board of Directors of a company shall exercise the** following powers only with the consent of the company by a special resolution, namely:— 121 ----- (a) to sell, lease or otherwise dispose of the whole or substantially the whole of the undertaking of the company or where the company owns more than one undertaking, of the whole or substantially the whole of any of such undertakings. _Explanation.—For the purposes of this clause,—_ (i) “undertaking” shall mean an undertaking in which the investment of the company exceeds twenty per cent. of its net worth as per the audited balance sheet of the preceding financial year or an undertaking which generates twenty per cent. of the total income of the company during the previous financial year; (ii) the expression “substantially the whole of the undertaking” in any financial year shall mean twenty per cent. or more of the value of the undertaking as per the audited balance sheet of the preceding financial year; (b) to invest otherwise in trust securities the amount of compensation received by it as a result of any merger or amalgamation; (c) to borrow money, where the money to be borrowed, together with the money already borrowed by the company will exceed aggregate of its [1][paid-up share capital, free reserves and securities premium], apart from temporary loans obtained from the company’s bankers in the ordinary course of business: Provided that the acceptance by a banking company, in the ordinary course of its business, of deposits of money from the public, repayable on demand or otherwise, and withdraw able by cheque, draft, order or otherwise, shall not be deemed to be a borrowing of monies by the banking company within the meaning of this clause. _Explanation.—For the purposes of this clause, the expression “temporary loans” means loans_ repayable on demand or within six months from the date of the loan such as short-term, cash credit arrangements, the discounting of bills and the issue of other short-term loans of a seasonal character, but does not include loans raised for the purpose of financial expenditure of a capital nature; (d) to remit, or give time for the repayment of, any debt due from a director. (2) Every special resolution passed by the company in general meeting in relation to the exercise of the powers referred to in clause (c) of sub-section (1) shall specify the total amount up to which monies may be borrowed by the Board of Directors. (3) Nothing contained in clause (a) of sub-section (1) shall affect— (a) the title of a buyer or other person who buys or takes on lease any property, investment or undertaking as is referred to in that clause, in good faith; or (b) the sale or lease of any property of the company where the ordinary business of the company consists of, or comprises, such selling or leasing. (4) Any special resolution passed by the company consenting to the transaction as is referred to in clause (a) of sub-section (1) may stipulate such conditions as may be specified in such resolution, including conditions regarding the use, disposal or investment of the sale proceeds which may result from the transactions: Provided that this sub-section shall not be deemed to authorise the company to effect any reduction in its capital except in accordance with the provisions contained in this Act. (5) No debt incurred by the company in excess of the limit imposed by clause (c) of sub-section (1) shall be valid or effectual, unless the lender proves that he advanced the loan in good faith and without knowledge that the limit imposed by that clause had been exceeded. **181. Company to contribute to bona fide and charitable funds, etc.—The Board of Directors of a** company may contribute to bona fide charitable and other funds: 1. Subs. by Act 1 of 2018, s. 59, for “paid-up share capital and free reserves” (w.e.f. 9-2-2018). 122 ----- Provided that prior permission of the company in general meeting shall be required for such contribution in case any amount the aggregate of which, in any financial year, exceed five per cent. of its average net profits for the three immediately preceding financial years. **182. Prohibitions and restrictions regarding political contributions.—(1) Notwithstanding** anything contained in any other provision of this Act, a company, other than a Government company and a company which has been in existence for less than three financial years, may contribute any amount directly or indirectly to any political party: 1* - - - Provided [2]*** that no such contribution shall be made by a company unless a resolution authorising the making of such contribution is passed at a meeting of the Board of Directors and such resolution shall, subject to the other provisions of this section, be deemed to be justification in law for the making [3]*** of the contribution authorised by it. (2) Without prejudice to the generality of the provisions of sub-section (1),— (a) a donation or subscription or payment caused to be given by a company on its behalf or on its account to a person who, to its knowledge, is carrying on any activity which, at the time at which such donation or subscription or payment was given or made, can reasonably be regarded as likely to affect public support for apolitical party shall also be deemed to be contribution of the amount of such donation, subscription or payment to such person for a political purpose; (b) the amount of expenditure incurred, directly or indirectly, by a company on an advertisement in any publication, being a publication in the nature of a souvenir, brochure, tract, pamphlet or the like, shall also be deemed,— (i) where such publication is by or on behalf of a political party, to be a contribution of such amount to such political party, and (ii) where such publication is not by or on behalf of, but for the advantage of a political party, to be a contribution for a political purpose. 4[(3) Every company shall disclose in its profit and loss account the total amount contributed by it under this section during the financial year to which the account relates. (3A) Notwithstanding anything contained in sub-section (1), the contribution under this section shall not be made except by an account payee cheque drawn on a bank or an account payee bank draft or use of electronic clearing system through a bank account: Provided that a company may make contribution through any instrument, issued pursuant to any scheme notified under any law for the time being in force, for contribution to the political parties.] (4) If a company makes any contribution in contravention of the provisions of this section, the company shall be punishable with fine which may extend to five times the amount so contributed and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to six months and with fine which may extend to five times the amount so contributed. _Explanation.—For the purposes of this section, “political party” means a political party registered under_ section 29A of the Representation of the People Act, 1951 (43 of 1951). **183. Power of Board and other persons to make contributions to national defence fund,** **etc.—(1) The Board of Directors of any company or any person or authority exercising the powers of the** Board of Directors of a company, or of the company in general meeting, may, notwithstanding anything contained in sections 180, 181 and section 182 or any other provision of this Act or in the memorandum, articles or any other instrument relating to the company, contribute such amount as it thinks fit to the National Defence Fund or any other Fund approved by the Central Government for the purpose of national defence. (2) Every company shall disclose in its profits and loss account the total amount or amounts contributed by it to the Fund referred to in sub-section (1) during the financial year to which the amount relates. 1. The proviso omitted by Act 7 of 2017, s. 154 (w.e.f. 31-3-2017). 2. The word “further” omitted by Act 7 of 2017, s. 154 (w.e.f. 31-3-2017). 3. The words “and the acceptance” omitted by s. 154, ibid. (w.e.f. 31-3-2017). 4. Subs. by s. 154, ibid. for sub-section (3) (w.e.f. 31-3-2017). 123 ----- **184. Disclosure of interest by director.—(1) Every director shall at the first meeting of the Board in** which he participates as a director and thereafter at the first meeting of the Board in every financial year or whenever there is any change in the disclosures already made, then at the first Board meeting held after such change, disclose his concern or interest in any company or companies or bodies corporate, firms, or other association of individuals which shall include the shareholding, in such manner as may be prescribed. (2) Every director of a company who is in any way, whether directly or indirectly, concerned or interested in a contract or arrangement or proposed contract or arrangement entered into or to be entered into— (a) with a body corporate in which such director or such director in association with any other director, holds more than two per cent. shareholding of that body corporate, or is a promoter, manager, Chief Executive Officer of that body corporate; or (b) with a firm or other entity in which, such director is a partner, owner or member, as the case may be, shall disclose the nature of his concern or interest at the meeting of the Board in which the contract or arrangement is discussed and shall not participate in such meeting: Provided that where any director who is not so concerned or interested at the time of entering into such contract or arrangement, he shall, if he becomes concerned or interested after the contract or arrangement is entered into, disclose his concern or interest forthwith when he becomes concerned or interested or at the first meeting of the Board held after he becomes so concerned or interested. (3) A contract or arrangement entered into by the company without disclosure under sub-section (2) or with participation by a director who is concerned or interested in any way, directly or indirectly, in the contract or arrangement, shall be voidable at the option of the company. (4) If a director of the company contravenes the provisions of sub-section (1) or sub-section (2), such director shall be [1][liable to a penalty of one lakh rupees]. (5) Nothing in this section— (a) shall be taken to prejudice the operation of any rule of law restricting a director of a company from having any concern or interest in any contract or arrangement with the company; 2[(b) shall apply to any contract or arrangement entered into or to be entered into between two companies or between one or more companies and one or more bodies corporate where any of the directors of the one company or body corporate or two or more of them together holds or hold not more than two per cent. of the paid-up share capital in the other company or the body corporate.] **3[185. Loans to directors, etc.—(1) No company shall, directly or indirectly, advance any loan,** including any loan represented by a book debt to, or give any guarantee or provide any security in connection with any loan taken by,— (a) any director of company, or of a company which is its holding company or any partner or relative of any such director; or (b) any firm in which any such director or relative is a partner. (2) A company may advance any loan including any loan represented by a book debt, or give any guarantee or provide any security in connection with any loan taken by any person in whom any of the director of the company is interested, subject to the condition that— (a) a special resolution is passed by the company in general meeting: Provided that the explanatory statement to the notice for the relevant general meeting shall disclose the full particulars of the loans given, or guarantee given or security provided and the purpose for which 1. Subs. by Act 29 of 2020, s. 37, for certain words (w.e.f. 21-12-2020). 2. Subs. by Act 1 of 2018, s. 60, for clause (b) (w.e.f. 9-2-2018). 3. Subs. by s. 61, ibid., for section 185 (w.e.f. 7-5-2018). 124 ----- the loan or guarantee or security is proposed to be utilised by the recipient of the loan or guarantee or security and any other relevant fact; and (b) the loans are utilised by the borrowing company for its principal business activities. _Explanation.—For the purposes of this sub-section, the expression “any person in whom any of the_ director of the company is interested” means— (a) any private company of which any such director is a director or member; (b) any body corporate at a general meeting of which not less than twenty-five per cent. of the total voting power may be exercised or controlled by any such director, or by two or more such directors, together; or (c) any body corporate, the Board of directors, managing director or manager, whereof is accustomed to act in accordance with the directions or instructions of the Board, or of any director or directors, of the lending company. (3) Nothing contained in sub-sections (1) and (2) shall apply to— (a) the giving of any loan to a managing or whole-time director— (i) as a part of the conditions of service extended by the company to all its employees; or (ii) pursuant to any scheme approved by the members by a special resolution; or (b) a company which in the ordinary course of its business provides loans or gives guarantees or securities for the due repayment of any loan and in respect of such loans an interest is charged at a rate not less than the rate of prevailing yield of one year, three years, five years or ten years Government security closest to the tenor of the loan; or (c) any loan made by a holding company to its wholly owned subsidiary company or any guarantee given or security provided by a holding company in respect of any loan made to its wholly owned subsidiary company; or (d) any guarantee given or security provided by a holding company in respect of loan made by any bank or financial institution to its subsidiary company: Provided that the loans made under clauses (c) and (d) are utilised by the subsidiary company for its principal business activities. (4) If any loan is advanced or a guarantee or security is given or provided or utilised in contravention of the provisions of this section,— (i) the company shall be punishable with fine which shall not be less than five lakh rupees but which may extend to twenty-five lakh rupees; (ii) every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than five lakh rupees but which may extend to twenty-five lakh rupees; and (iii) the director or the other person to whom any loan is advanced or guarantee or security is given or provided in connection with any loan taken by him or the other person, shall be punishable with imprisonment which may extend to six months or with fine which shall not be less than five lakh rupees but which may extend to twenty-five lakh rupees, or with both.] **186. Loan and investment by company.—(1) Without prejudice to the provisions contained in this** Act, a company shall unless otherwise prescribed, make investment through not more than two layers of investment companies: Provided that the provisions of this sub-section shall not affect,— (i) a company from acquiring any other company incorporated in a country outside India if such other company has investment subsidiaries beyond two layers as per the laws of such country; 125 ----- (ii) a subsidiary company from having any investment subsidiary for the purposes of meeting the requirements under any law or under any rule or regulation framed under any law for the time being in force. (2) No company shall directly or indirectly — (a) give any loan to any person or other body corporate; (b) give any guarantee or provide security in connection with a loan to any other body corporate or person; and (c) acquire by way of subscription, purchase or otherwise, the securities of any other body corporate, exceeding sixty per cent. of its paid-up share capital, free reserves and securities premium account or one hundred per cent. of its free reserves and securities premium account, whichever is more. 1[Explanation.—For the purposes of this sub-section, the word “person” does not include any individual who is in the employment of the company.] 2[(3) Where the aggregate of the loans and investment so far made, the amount for which guarantee or security so far provided to or in all other bodies corporate along with the investment, loan, guarantee or security proposed to be made or given by the Board, exceed the limits specified under sub-section (2), no investment or loan shall be made or guarantee shall be given or security shall be provided unless previously authorised by a special resolution passed in a general meeting: Provided that where a loan or guarantee is given or where a security has been provided by a company to its wholly owned subsidiary company or a joint venture company, or acquisition is made by a holding company, by way of subscription, purchase or otherwise of, the securities of its wholly owned subsidiary company, the requirement of this sub-section shall not apply: Provided further that the company shall disclose the details of such loans or guarantee or security or acquisition in the financial statement as provided under sub-section (4).] (4) The company shall disclose to the members in the financial statement the full particulars of the loans given, investment made or guarantee given or security provided and the purpose for which the loan or guarantee or security is proposed to be utilised by the recipient of the loan or guarantee or security. (5) No investment shall be made or loan or guarantee or security given by the company unless the resolution sanctioning it is passed at a meeting of the Board with the consent of all the directors present at the meeting and the prior approval of the public financial institution concerned where any term loan is subsisting, is obtained: Provided that prior approval of a public financial institution shall not be required where the aggregate of the loans and investments so far made, the amount for which guarantee or security so far provided to or in all other bodies corporate, along with the investments, loans, guarantee or security proposed to be made or given does not exceed the limit as specified in sub-section (2), and there is no default in repayment of loan instalments or payment of interest thereon as per the terms and conditions of such loan to the public financial institution. (6) No company, which is registered under section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992) and covered under such class or classes of companies as may be prescribed, shall take inter-corporate loan or deposits exceeding the prescribed limit and such company shall furnish in its financial statement the details of the loan or deposits. (7) No loan shall be given under this section at a rate of interest lower than the prevailing yield of one year, three year, five year or ten year Government Security closest to the tenor of the loan. 1. Ins. by Act 1 of 2018, s. 62 (w.e.f. 7-5-2018). 2. Subs. by s. 62, ibid., for sub-section (3) (w.e.f. 7-5-2018). 126 ----- (8) No company which is in default in the repayment of any deposits accepted before or after the commencement of this Act or in payment of interest thereon, shall give any loan or give any guarantee or provide any security or make an acquisition till such default is subsisting. (9) Every company giving loan or giving a guarantee or providing security or making an acquisition under this section shall keep a register which shall contain such particulars and shall be maintained in such manner as may be prescribed. (10) The register referred to in sub-section (9) shall be kept at the registered office of the company and — (a) shall be open to inspection at such office; and (b) extracts may be taken therefrom by any member, and copies thereof may be furnished to any member of the company on payment of such fees as may be prescribed. 1[(11) Nothing contained in this section, except sub-section (1), shall apply— (a) to any loan made, any guarantee given or any security provided or any investment made by a banking company, or an insurance company, or a housing finance company in the ordinary course of its business, or a company established with the object of and engaged in the business of financing industrial enterprises, or of providing infrastructural facilities; (b) to any investment— (i) made by an investment company; (ii) made in shares allotted in pursuance of clause (a) of sub-section (1) of section 62 or in shares allotted in pursuance of rights issues made by a body corporate; (iii) made, in respect of investment or lending activities, by a non-banking financial company registered under Chapter III-B of the Reserve Bank of India Act, 1934 (2 of 1934) and whose principal business is acquisition of securities.] (12) The Central Government may make rules for the purposes of this section. (13) If a company contravenes the provisions of this section, the company shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to two years and with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees. _Explanation.—For the purposes of this section,—_ (a) the expression “investment company” means a company whose principal business is the acquisition of shares, debentures or other securities [2][and a company will be deemed to be principally engaged in the business of acquisition of shares, debentures or other securities, if its assets in the form of investment in shares, debentures or other securities constitute not less than fifty per cent. of its total assets, or if its income derived from investment business constitutes not less than fifty per cent. as a proportion of its gross income.]; (b) the expression “infrastructure facilities” means the facilities specified in Schedule VI. **187. Investments of company to be held in its own name.—(1) All investments made or held by a** company in any property, security or other asset shall be made and held by it in its own name: Provided that the company may hold any shares in its subsidiary company in the name of any nominee or nominees of the company, if it is necessary to do so, to ensure that the number of members of the subsidiary company is not reduced below the statutory limit. (2) Nothing in this section shall be deemed to prevent a company— 1. Subs. by Act 1 of 2018, s. 62, for sub-section (11) (w.e.f. 7-5-2018). 2. Ins. by Act 1 of 2018, s. 62 (w.e.f. 7-5-2018). 127 ----- (a) from depositing with a bank, being the bankers of the company, any shares or securities for the collection of any dividend or interest payable thereon; or (b) from depositing with, or transferring to, or holding in the name of, the State Bank of India or a scheduled bank, being the bankers of the company, shares or securities, in order to facilitate the transfer thereof: Provided that if within a period of six months from the date on which the shares or securities are transferred by the company to, or are first held by the company in the name of, the State Bank of India or a scheduled bank as aforesaid, no transfer of such shares or securities takes place, the company shall, as soon as practicable after the expiry of that period, have the shares or securities re-transferred to it from the State Bank of India or the scheduled bank or, as the case may be, again hold the shares or securities in its own name; or (c) from depositing with, or transferring to, any person any shares or securities, by way of security for the repayment of any loan advanced to the company or the performance of any obligation undertaken by it; (d) from holding investments in the name of a depository when such investments are in the form of securities held by the company as a beneficial owner. (3) Where in pursuance of clause (d) of sub-section (2), any shares or securities in which investments have been made by a company are not held by it in its own name, the company shall maintain a register which shall contain such particulars as may be prescribed and such register shall be open to inspection by any member or debenture-holder of the company without any charge during business hours subject to such reasonable restrictions as the company may by its articles or in general meeting impose. 1[(4) If a company is in default in complying with the provisions of this section, the company shall be liable to a penalty of five lakh rupees and every officer of the company who is in default shall be liable to a penalty of fifty thousand rupees.] **188. Related party transactions.— (1) Except with the consent of the Board of Directors given by a** resolution at a meeting of the Board and subject to such conditions as may be prescribed, no company shall enter into any contract or arrangement with a related party with respect to— (a) sale, purchase or supply of any goods or materials; (b) selling or otherwise disposing of, or buying, property of any kind; (c) leasing of property of any kind; (d) availing or rendering of any services; (e) appointment of any agent for purchase or sale of goods, materials, services or property; _(f) such related party's appointment to any office or place of profit in the company, its subsidiary_ company or associate company; and (g) underwriting the subscription of any securities or derivatives thereof, of the company: Provided that no contract or arrangement, in the case of a company having a paid-up share capital of not less than such amount, or transactions exceeding such sums, as may be prescribed, shall be entered into except with the prior approval of the company by a[2][resolution]: Provided further that no member of the company shall vote on such [1][resolution], to approve any contract or arrangement which may be entered into by the company, if such member is a related party: 3[Provided also that nothing contained in the second proviso shall apply to a company in which ninety per cent. or more members, in number, are relatives of promoters or are related parties:] 1. Subs. by Act 29 of 2020, s. 38, for sub-section (4) (w.e.f. 21-12-2020). 2. Subs. by Act 21 of 2015, s. 16, for “special resolution” (w.e.f. 29-5-2015). 3. The proviso ins. by Act 1 of 2018, s. 63 (w.e.f. 9-2-2018). 128 ----- Provided also that nothing in this sub-section shall apply to any transactions entered into by the company in its ordinary course of business other than transactions which are not on an arm’s length basis: 1[Provided also that the requirement of passing the resolution under first proviso shall not be applicable for transactions entered into between a holding company and its wholly owned subsidiary whose accounts are consolidated with such holding company and placed before the shareholders at the general meeting for approval.] _Explanation.— In this sub-section,—_ (a) the expression “office or place of profit” means any office or place— _(i) where such office or place is held by a director, if the director holding it receives from the_ company anything by way of remuneration over and above the remuneration to which he is entitled as director, by way of salary, fee, commission, perquisites, any rent-free accommodation, or otherwise; _(ii) where such office or place is held by an individual other than a director or by any firm,_ private company or other body corporate, if the individual, firm, private company or body corporate holding it receives from the company anything by way of remuneration, salary, fee, commission, perquisites, any rent-free accommodation, or otherwise; _(b) the expression “arm’s length transaction” means a transaction between two related parties that_ is conducted as if they were unrelated, so that there is no conflict of interest. (2) Every contract or arrangement entered into under sub-section (1) shall be referred to in the Board’s report to the shareholders along with the justification for entering into such contract or arrangement. (3) Where any contract or arrangement is entered into by a director or any other employee, without obtaining the consent of the Board or approval by a [1][resolution] in the general meeting under subsection (1) and if it is not ratified by the Board or, as the case may be, by the shareholders at a meeting within three months from the date on which such contract or arrangement was entered into, such contract or arrangement [2][shall be voidable at the option of the Board or, as the case may be, of the shareholders] and if the contract or arrangement is with a related party to any director, or is authorised by any other director, the directors concerned shall indemnify the company against any loss incurred by it. (4) Without prejudice to anything contained in sub-section (3), it shall be open to the company to proceed against a director or any other employee who had entered into such contract or arrangement in contravention of the provisions of this section for recovery of any loss sustained by it as a result of such contract or arrangement. (5) Any director or any other employee of a company, who had entered into or authorized the contract or arrangement in violation of the provisions of this section shall,— (i) in case of listed company, be [3][liable to a penalty of twenty-five lakh rupees]; and (ii) in case of any other company, be [4][liable to a penalty of five lakh rupees]]. **189. Register of contracts or arrangements in which directors are interested.—(1) Every company** shall keep one or more registers giving separately the particulars of all contracts or arrangements to which sub-section (2) of section 184 or section 188 applies, in such manner and containing such particulars as may be prescribed and after entering the particulars, such register or registers shall be placed before the next meeting of the Board and signed by all the directors present at the meeting. (2) Every director or key managerial personnel shall, within a period of thirty days of his appointment, or relinquishment of his office, as the case may be, disclose to the company the particulars specified in subsection (1) of section 184 relating to his concern or interest in the other associations which are required to be included in the register under that sub-section or such other information relating to himself as may be prescribed. 1. The proviso ins. by Act 21 of 2015, s. 16 (w.e.f. 29-5-2015). 2. Subs. by Act 1 of 2018, s. 63, for “shall be voidable at the option of the Board” (w.e.f. 9-2-2018). 3. Subs. by Act 29 of 2020, s. 39, for certain words (w.e.f. 21-12-2020). 4. Subs. by s. 39, ibid., for certain words (w.e.f. 21-12-2020). 129 ----- (3) The register referred to in sub-section (1) shall be kept at the registered office of the company and it shall be open for inspection at such office during business hours and extracts may be taken therefrom, and copies thereof as may be required by any member of the company shall be furnished by the company to such extent, in such manner, and on payment of such fees as may be prescribed. (4) The register to be kept under this section shall also be produced at the commencement of every annual general meeting of the company and shall remain open and accessible during the continuance of the meeting to any person having the right to attend the meeting. (5) Nothing contained in sub-section (1) shall apply to any contract or arrangement— (a) for the sale, purchase or supply of any goods, materials or services if the value of such goods and materials or the cost of such services does not exceed five lakh rupees in the aggregate in any year; or (b) by a banking company for the collection of bills in the ordinary course of its business. (6) Every director who fails to comply with the provisions of this section and the rules made thereunder shall be liable to a penalty of twenty-five thousand rupees. **190. Contract of employment with managing or whole-time director.—(1) Every company shall** keep at its registered office,— (a) where a contract of service with a managing or whole-time director is in writing, a copy of the contract; or (b) where such a contract is not in writing, a written memorandum setting out its terms. (2) The copies of the contract or the memorandum kept under sub-section (1) shall be open to inspection by any member of the company without payment of fee. (3) If any default is made in complying with the provisions of sub-section (1) or sub-section (2), the company shall be liable to a penalty of twenty-five thousand rupees and every officer of the company who is in default shall be liable to a penalty of five thousand rupees for each default. (4) The provisions of this section shall not apply to a private company. **191. Payment to director for loss of office, etc., in connection with transfer of undertaking,** **property or shares.—(1) No director of a company shall, in connection with—** (a) the transfer of the whole or any part of any undertaking or property of the company; or (b) the transfer to any person of all or any of the shares in a company being a transfer resulting from— (i) an offer made to the general body of shareholders; (ii) an offer made by or on behalf of some other body corporate with a view to a company becoming a subsidiary company of such body corporate or a subsidiary company of its holding company; (iii) an offer made by or on behalf of an individual with a view to his obtaining the right to exercise, or control the exercise of, not less than one-third of the total voting power at any general meeting of the company; or (iv) any other offer which is conditional on acceptance to a given extent, receive any payment by way of compensation for loss of office or as consideration for retirement from office, or in connection with such loss or retirement from such company or from the transferee of such undertaking or property, or from the transferees of shares or from any other person, not being such company, unless particulars as may be prescribed with respect to the payment proposed to be made by such transferee or person, including the amount thereof, have been disclosed to the members of the company and the proposal has been approved by the company in general meeting. (2) Nothing in sub-section (1) shall affect any payment made by a company to a managing director or whole-time director or manager of the company by way of compensation for loss of office or as 130 ----- consideration for retirement from office or in connection with such loss or retirement subject to limits or priorities, as may be prescribed. (3) If the payment under sub-section (1) or sub-section (2) is not approved for want of quorum either in a meeting or an adjourned meeting, the proposal shall not be deemed to have been approved. (4) Where a director of a company receives payment of any amount in contravention of sub-section (1) or the proposed payment is made before it is approved in the meeting, the amount so received by the director shall be deemed to have been received by him in trust for the company. 1[(5) If a director of the company makes any default in complying with the provisions of this section, such director shall be liable to a penalty of one lakh rupees.] (6) Nothing in this section shall be taken to prejudice the operation of any law requiring disclosure to be made with respect to any payment received under this section or such other like payments made to a director. **192. Restriction on non-cash transactions involving directors.—(1) No company shall enter into an** arrangement by which— (a) a director of the company or its holding, subsidiary or associate company or a person connected with him acquires or is to acquire assets for consideration other than cash, from the company; or (b) the company acquires or is to acquire assets for consideration other than cash, from such director or person so connected, unless prior approval for such arrangement is accorded by a resolution of the company in general meeting and if the director or connected person is a director of its holding company, approval under this subsection shall also be required to be obtained by passing a resolution in general meeting of the holding company. (2) The notice for approval of the resolution by the company or holding company in general meeting under sub-section (1) shall include the particulars of the arrangement along with the value of the assets involved in such arrangement duly calculated by a registered valuer. (3) Any arrangement entered into by a company or its holding company in contravention of the provisions of this section shall be voidable at the instance of the company unless— (a) the restitution of any money or other consideration which is the subject matter of the arrangement is no longer possible and the company has been indemnified by any other person for any loss or damage caused to it; or (b) any rights are acquired _bona fide_ for value and without notice of the contravention of the provisions of this section by any other person. **193. Contract by One Person Company.—(1) Where One Person Company limited by shares or by** guarantee enters into a contract with the sole member of the company who is also the director of the company, the company shall, unless the contract is in writing, ensure that the terms of the contract or offer are contained in a memorandum or are recorded in the minutes of the first meeting of the Board of Directors of the company held next after entering into contract: Provided that nothing in this sub-section shall apply to contracts entered into by the company in the ordinary course of its business. (2) The company shall inform the Registrar about every contract entered into by the company and recorded in the minutes of the meeting of its Board of Directors under sub-section (1) within a period of fifteen days of the date of approval by the Board of Directors. **194.** [Prohibition on forward dealings in securities of company by director or key managerial _personnel.] Omitted by the Companies (Amendment) Act, 2017 (1 of 2018), s. 64 (w.e.f. 9-2-2018)._ **195. [Prohibition on insider trading of securities.] Omitted by s. 65, ibid. (w.e.f. 9-2-2018).** 1. Subs. by Act 22 of 2019, s. 28, for sub-section (5) (w.e.f. 2-11-2018). 131 ----- CHAPTER XIII APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL **196. Appointment of managing director, whole-time director or manager.—(1) No company shall** appoint or employ at the same time a managing director and a manager. (2) No company shall appoint or re-appoint any person as its managing director, whole-time director or manager for a term exceeding five years at a time: Provided that no re-appointment shall be made earlier than one year before the expiry of his term. (3) No company shall appoint or continue the employment of any person as managing director, whole time director or manager who — (a) is below the age of twenty-one years or has attained the age of seventy years: Provided that appointment of a person who has attained the age of seventy years may be made by passing a special resolution in which case the explanatory statement annexed to the notice for such motion shall indicate the justification for appointing such person; 1[Provided further that where no such special resolution is passed but votes cast in favour of the motion exceed the votes, if any, cast against the motion and the Central Government is satisfied, on an application made by the Board, that such appointment is most beneficial to the company, the appointment of the person who has attained the age of seventy years may be made.]”; (b) is an undischarged insolvent or has at any time been adjudged as an insolvent; (c) has at any time suspended payment to his creditors or makes, or has at any time made, a composition with them; or (d) has at any time been convicted by a court of an offence and sentenced for a period of more than six months. (4) Subject to the provisions of section 197 and Schedule V, a managing director, whole-time director or manager shall be appointed and the terms and conditions of such appointment and remuneration payable be approved by the Board of Directors at a meeting which shall be subject to approval by a resolution at the next general meeting of the company and by the Central Government in case such appointment is at variance to the conditions [2][specified in Part I of that Schedule]: Provided that a notice convening Board or general meeting for considering such appointment shall include the terms and conditions of such appointment, remuneration payable and such other matters including interest, of a director or directors in such appointments, if any: Provided further that a return in the prescribed form shall be filed within sixty days of such appointment with the Registrar. (5) Subject to the provisions of this Act, where an appointment of a managing director, whole-time director or manager is not approved by the company at a general meeting, any act done by him before such approval shall not be deemed to be invalid. **197. Overall maximum managerial remuneration and managerial remuneration in case of** **absence or inadequacy of profits.—(1) The total managerial remuneration payable by a public company,** to its directors, including managing director and whole-time director, and its manager in respect of any financial year shall not exceed eleven per cent. of the net profits of that company for that financial year computed in the manner laid down in section 198 except that the remuneration of the directors shall not be deducted from the gross profits: Provided that the company in general meeting may, [3]*** authorise the payment of remuneration exceeding eleven per cent. of the net profits of the company, subject to the provisions of Schedule V: Provided further that, except with the approval of the company in general meeting, [4][by a special resolution,]— (i) the remuneration payable to any one managing director; or whole-time director or manager shall not exceed five per cent. of the net profits of the company and if there is more than one such director remuneration shall not exceed ten per cent. of the net profits to all such directors and manager taken together; 1. The proviso ins. by Act 1 of 2018, s. 66 (w.e.f. 12-9-2018). 2. Subs. by s. 66, ibid., for “specified in that Schedule” (w.e.f. 12-9-2018). 3. The words “with the approval of the Central Government,” omitted by Act 1 of 2018, s. 67 (w.e.f. 12-9-2018). 4. Ins. by s. 67, ibid. (w.e.f. 12-9-2018). 132 ----- (ii) the remuneration payable to directors who are neither managing directors nor whole-time directors shall not exceed,— (A) one per cent. of the net profits of the company, if there is a managing or whole-time director or manager; (B) three per cent. of the net profits in any other case. 1[Provided also that, where the company has defaulted in payment of dues to any bank or public financial institution or non-convertible debenture holders or any other secured creditor, the prior approval of the bank or public financial institution concerned or the non-convertible debenture holders or other secured creditor, as the case may be, shall be obtained by the company before obtaining the approval in the general meeting.] (2) The percentages aforesaid shall be exclusive of any fees payable to directors under sub-section (5). (3) Notwithstanding anything contained in sub-sections (1) and (2), but subject to the provisions of Schedule V, if, in any financial year, a company has no profits or its profits are inadequate, the company shall not pay to its directors, including any managing or whole-time director or manager, [2][or any other non-executive director, including an independent director] by way of remuneration any sum exclusive of any fees payable to directors under sub-section (5) hereunder except in accordance with the provisions of Schedule V [3]***. (4) The remuneration payable to the directors of a company, including any managing or whole-time director or manager, shall be determined, in accordance with and subject to the provisions of this section, either by the articles of the company, or by a resolution or, if the articles so require, by a special resolution, passed by the company in general meeting and the remuneration payable to a director determined aforesaid shall be inclusive of the remuneration payable to him for the services rendered by him in any other capacity: Provided that any remuneration for services rendered by any such director in other capacity shall not be so included if— (a) the services rendered are of a professional nature; and (b) in the opinion of the Nomination and Remuneration Committee, if the company is covered under sub-section (1) of section 178, or the Board of Directors in other cases, the director possesses the requisite qualification for the practice of the profession. (5) A director may receive remuneration by way of fee for attending meetings of the Board or Committee thereof or for any other purpose whatsoever as may be decided by the Board: Provided that the amount of such fees shall not exceed the amount as may be prescribed: Provided further that different fees for different classes of companies and fees in respect of independent director may be such as may be prescribed. (6) A director or manager may be paid remuneration either by way of a monthly payment or at a specified percentage of the net profits of the company or partly by one way and partly by the other. 4* - - - - (8) The net profits for the purposes of this section shall be computed in the manner referred to in section 198. 5[(9) If any director draws or receives, directly or indirectly, by way of remuneration any such sums in excess of the limit prescribed by this section or without approval required under this section, he shall refund such sums to the company, within two years or such lesser period as may be allowed by the company, and until such sum is refunded, hold it in trust for the company.] 1. The proviso ins. by Act 1 of 2018, s. 67 (w.e.f. 12-9-2018). 2. Ins. by Act 29 of 2020, s. 40 (w.e.f. 18-3-2021). 3. The words “and if it is not able to comply with such provisions, with the previous approval of the Central Government” omitted by s. 67, ibid. (w.e.f.12-9-2018). 4. Sub-section (7) omitted by Act 22 of 2019, s. 29 (w.e.f. 2-11-2018). 5. Subs. by Act 1 of 2018, s. 67 (w.e.f. 12-9-2018). 133 ----- (10) The company shall not waive the recovery of any sum refundable to it under sub-section (9) unless 1[approved by the company by special resolution within two years from the date the sum becomes refundable]. 2[Provided that where the company has defaulted in payment of dues to any bank or public financial institution or non-convertible debenture holders or any other secured creditor, the prior approval of the bank or public financial institution concerned or the non-convertible debenture holders or other secured creditor, as the case may be, shall be obtained by the company before obtaining approval of such waiver.] (11) In cases where Schedule V is applicable on grounds of no profits or inadequate profits, any provision relating to the remuneration of any director which purports to increase or has the effect of increasing the amount thereof, whether the provision be contained in the company’s memorandum or articles, or in an agreement entered into by it, or in any resolution passed by the company in general meeting or its Board, shall not have any effect unless such increase is in accordance with the conditions specified in that Schedule [3]***. (12) Every listed company shall disclose in the Board’s report, the ratio of the remuneration of each director to the median employee’s remuneration and such other details as may be prescribed. (13) Where any insurance is taken by a company on behalf of its managing director, whole-time director, manager, Chief Executive Officer, Chief Financial Officer or Company Secretary for indemnifying any of them against any liability in respect of any negligence, default, misfeasance, breach of duty or breach of trust for which they may be guilty in relation to the company, the premium paid on such insurance shall not be treated as part of the remuneration payable to any such personnel: Provided that if such person is proved to be guilty, the premium paid on such insurance shall be treated as part of the remuneration. (14) Subject to the provisions of this section, any director who is in receipt of any commission from the company and who is a managing or whole-time director of the company shall not be disqualified from receiving any remuneration or commission from any holding company or subsidiary company of such company subject to its disclosure by the company in the Board’s report. 4[(15) If any person makes any default in complying with the provisions of this section, he shall be liable to a penalty of one lakh rupees and where any default has been made by a company, the company shall be liable to a penalty of five lakh rupees.] 5[(16) The auditor of the company shall, in his report under section 143, make a statement as to whether the remuneration paid by the company to its directors is in accordance with the provisions of this section, whether remuneration paid to any director is in excess of the limit laid down under this section and give such other details as may be prescribed. (17) On and from the commencement of the Companies (Amendment) Act, 2017, any application made to the Central Government under the provisions of this section [as it stood before such commencement], which is pending with that Government shall abate, and the company shall, within one year of such commencement, obtain the approval in accordance with the provisions of this section, as so amended.] **198. Calculation of profits.—(1) In computing the net profits of a company in any financial year for** the purpose of section 197,— (a) credit shall be given for the sums specified in sub-section (2), and credit shall not be given for those specified in sub-section (3); and (b) the sums specified in sub-section (4) shall be deducted, and those specified in sub-section (5) shall not be deducted. 1. Subs. by Act 1 of 2018, s. 67, for “permitted by the Central Government” (w.e.f. 12-9-2018). 2. The proviso ins. by s. 67, ibid., (w.e.f. 12-9-2018). 3. The words “and if such conditions are not being complied, the approval of the Central Government had been obtained” by s. 67, ibid., (w.e.f. 12-9-2018). 4. Subs. by Act 22 of 2019, s. 29, for sub-section (15) (w.e.f. 2-11-2018). 5. Ins. by Act 1 of 2018, s. 67 (w.e.f. 12-9-2018). 134 ----- (2) In making the computation aforesaid, credit shall be given for the bounties and subsidies received from any Government, or any public authority constituted or authorised in this behalf, by any Government, unless and except in so far as the Central Government otherwise directs. (3) In making the computation aforesaid, credit shall not be given for the following sums, namely:— (a) profits, by way of premium on shares or debentures of the company, which are issued or sold by the company [1][unless the company is an investment company as referred to in clause (a) of the Explanation to section 186]; (b) profits on sales by the company of forfeited shares; (c) profits of a capital nature including profits from the sale of the undertaking or any of the undertakings of the company or of any part thereof; (d) profits from the sale of any immovable property or fixed assets of a capital nature comprised in the undertaking or any of the undertakings of the company, unless the business of the company consists, whether wholly or partly, of buying and selling any such property or assets: Provided that where the amount for which any fixed asset is sold exceeds the written-down value thereof, credit shall be given for so much of the excess as is not higher than the difference between the original cost of that fixed asset and its written-down value; (e) any change in carrying amount of an asset or of a liability recognised inequity reserves including surplus in profit and loss account on measurement of the asset or the liability at fair value. 2[(f) any amount representing unrealised gains, notional gains or revaluation of assets.] (4) In making the computation aforesaid, the following sums shall be deducted, namely:— (a) all the usual working charges; (b) directors’ remuneration; (c) bonus or commission paid or payable to any member of the company’s staff, or to any engineer, technician or person employed or engaged by the company, whether on a whole-time or on a part-time basis; (d) any tax notified by the Central Government as being in the nature of a tax on excess or abnormal profits; (e) any tax on business profits imposed for special reasons or in special circumstances and notified by the Central Government in this behalf; (f) interest on debentures issued by the company; (g) interest on mortgages executed by the company and on loans and advances secured by a charge on its fixed or floating assets; (h) interest on unsecured loans and advances; (i) expenses on repairs, whether to immovable or to movable property, provided the repairs are not of a capital nature; (j) outgoings inclusive of contributions made under section 181; (k) depreciation to the extent specified in section 123; (l) the excess of expenditure over income, which had arisen in computing the net profits in accordance with this section in any year [3]***, in so far as such excess has not been deducted in any subsequent year preceding the year in respect of which the net profits have to be ascertained; (m) any compensation or damages to be paid in virtue of any legal liability including a liability arising from a breach of contract; (n) any sum paid by way of insurance against the risk of meeting any liability such as is referred to in clause (m); (o) debts considered bad and written off or adjusted during the year of account. (5) In making the computation aforesaid, the following sums shall not be deducted, namely:— (a) income-tax and super-tax payable by the company under the Income-tax Act, 1961 (43 of 1961), or any other tax on the income of the company not falling under clauses (d) and (e) of subsection (4); 1. Ins. by Act 1 of 2018, s. 68 (w.e.f. 12-9-2018). 2. Clause (f) ins. by s. 68, ibid. (w.e.f. 12-9-2018). 3. The words “which begins at or after the commencement of this Act” omitted by s. 68, ibid. (w.e.f. 12-9-2018). 135 ----- (b) any compensation, damages or payments made voluntarily, that is to say, otherwise than in virtue of a liability such as is referred to in clause (m) of sub-section (4); (c) loss of a capital nature including loss on sale of the undertaking or any of the undertakings of the company or of any part thereof not including any excess of the written-down value of any asset which is sold, discarded, demolished or destroyed over its sale proceeds or its scrap value; (d) any change in carrying amount of an asset or of a liability recognised inequity reserves including surplus in profit and loss account on measurement of the asset or the liability at fair value. **199. Recovery of remuneration in certain cases.—Without prejudice to any liability incurred under** the provisions of this Act or any other law for the time being in force, where a company is required to re-state its financial statements due to fraud or non-compliance with any requirement under this Act and the rules made thereunder, the company shall recover from any past or present managing director or whole-time director or manager or Chief Executive Officer (by whatever name called) who, during the period for which the financial statements are required to be re-stated, received the remuneration (including stock option) in excess of what would have been payable to him as per restatement of financial statements. **200. Central Government or company to fix limit with regard to remuneration.—Notwithstanding** anything contained in this Chapter, [1]*** a company may, while according its approval under section 196, to any appointment or to any remuneration under section 197 in respect of cases where the company has inadequate or no profits, fix the remuneration within the limits specified in this Act, at such amount or percentage of profits of the company, as it may deem fit and while fixing the remuneration, [1]*** the company shall have regard to— (a) the financial position of the company; (b) the remuneration or commission drawn by the individual concerned in any other capacity; (c) the remuneration or commission drawn by him from any other company; (d) professional qualifications and experience of the individual concerned; (e) such other matters as may be prescribed. **201. Forms of, and procedure in relation to, certain applications.—(1) Every application made to** the Central Government under [2][section 196] shall be in such form as may be prescribed. (2) (a) Before any application is made by a company to the Central Government under [3][section 196], there shall be issued by or on behalf of the company a general notice to the members thereof, indicating the nature of the application proposed to be made. (b) Such notice shall be published at least once in a newspaper in the principal language of the district in which the registered office of the company is situate and circulating in that district, and at least once in English in an English newspaper circulating in that district. (c) The copies of the notices, together with a certificate by the company as to the due publication thereof, shall be attached to the application. **202. Compensation for loss of office of managing or whole-time director or manager.—(1) A** company may make payment to a managing or whole-time director or manager, but not to any other director, by way of compensation for loss of office, or as consideration for retirement from office or in connection with such loss or retirement. (2) No payment shall be made under sub-section (1) in the following cases, namely:— (a) where the director resigns from his office as a result of the reconstruction of the company, or of its amalgamation with any other body corporate or bodies corporate, and is appointed as the managing or whole-time director, manager or other officer of the reconstructed company or of the body corporate resulting from the amalgamation; (b) where the director resigns from his office otherwise than on the reconstruction of the company or its amalgamation as aforesaid; (c) where the office of the director is vacated under sub-section (1) of section 167; (d) where the company is being wound up, whether by an order of the Tribunal or voluntarily, provided the winding up was due to the negligence or default of the director; 1. The words “the Central Government or” omitted by Act 1 of 2018, s. 69 (w.e.f. 12-9-2018). 2. The words “this Chapter” omitted by s. 70, ibid. (w.e.f. 12-9-2018). 3. Subs. by s. 70, ibid. for “any of the sections aforesaid” (w.e.f. 12-9-2018). 136 ----- (e) where the director has been guilty of fraud or breach of trust in relation to, or of gross negligence in or gross mismanagement of, the conduct of the affairs of the company or any subsidiary company or holding company thereof; and (f) where the director has instigated, or has taken part directly or indirectly in bringing about, the termination of his office. (3) Any payment made to a managing or whole-time director or manager in pursuance of sub-section (1) shall not exceed the remuneration which he would have earned if he had been in office for the remainder of his term or for three years, whichever is shorter, calculated on the basis of the average remuneration actually earned by him during a period of three years immediately preceding the date on which he ceased to hold office, or where he held the office for a lesser period than three years, during such period: Provided that no such payment shall be made to the director in the event of the commencement of the winding up of the company, whether before or at any time within twelve months after, the date on which he ceased to hold office, if the assets of the company on the winding up, after deducting the expenses thereof, are not sufficient to repay to the shareholders the share capital, including the premiums, if any, contributed by them. (4) Nothing in this section shall be deemed to prohibit the payment to a managing or whole-time director, or manager, of any remuneration for services rendered by him to the company in any other capacity. **203. Appointment of key managerial personnel.—(1) Every company belonging to such class or** classes of companies as may be prescribed shall have the following whole-time key managerial personnel,— (i) managing director, or Chief Executive Officer or manager and in their absence, a whole-time director; (ii) company secretary; and (iii) Chief Financial Officer: Provided that an individual shall not be appointed or reappointed as the chairperson of the company, in pursuance of the articles of the company, as well as the managing director or Chief Executive Officer of the company at the same time after the date of commencement of this Act unless,— (a) the articles of such a company provide otherwise; or (b) the company does not carry multiple businesses: Provided further that nothing contained in the first proviso shall apply to such class of companies engaged in multiple businesses and which has appointed one or more Chief Executive Officers for each such business as may be notified by the Central Government. (2) Every whole-time key managerial personnel of a company shall be appointed by means of a resolution of the Board containing the terms and conditions of the appointment including the remuneration. (3) A whole-time key managerial personnel shall not hold office in more than one company except in its subsidiary company at the same time: Provided that nothing contained in this sub-section shall disentitle a key managerial personnel from being a director of any company with the permission of the Board: Provided further that whole-time key managerial personnel holding office in more than one company at the same time on the date of commencement of this Act, shall, within a period of six months from such commencement, choose one company, in which he wishes to continue to hold the office of key managerial personnel: Provided also that a company may appoint or employ a person as its managing director, if he is the managing director or manager of one, and of not more than one, other company and such appointment or employment is made or approved by a resolution passed at a meeting of the Board with the consent of all the directors present at the meeting and of which meeting, and of the resolution to be moved thereat, specific notice has been given to all the directors then in India. (4) If the office of any whole-time key managerial personnel is vacated, the resulting vacancy shall be filled-up by the Board at a meeting of the Board within a period of six months from the date of such vacancy. 137 ----- 1[(5) If any company makes any default in complying with the provisions of this section, such company shall be liable to a penalty of five lakh rupees and every director and key managerial personnel of the company who is in default shall be liable to a penalty of fifty thousand rupees and where the default is a continuing one, with a further penalty of one thousand rupees for each day after the first during which such default continues but not exceeding five lakh rupees.] **204. Secretarial audit for bigger companies.—(1) Every listed company and a company belonging** to other class of companies as may be prescribed shall annex with its Board’s report made in terms of subsection (3) of section 134, a secretarial audit report, given by a company secretary in practice, in such form as may be prescribed. (2) It shall be the duty of the company to give all assistance and facilities to the company secretary in practice, for auditing the secretarial and related records of the company. (3) The Board of Directors, in their report made in terms of sub-section (3) of section 134, shall explain in full any qualification or observation or other remarks made by the company secretary in practice in his report under sub-section (1). (4) If a company or any officer of the company or the company secretary in practice, contravenes the provisions of this section, the company, every officer of the company or the company secretary in practice, who is in default, shall be [2][liable to a penalty of two lakh rupees]. **205. Functions of company secretary.—(1) The functions of the company secretary shall include,—** (a) to report to the Board about compliance with the provisions of this Act, the rules made thereunder and other laws applicable to the company; (b) to ensure that the company complies with the applicable secretarial standards; (c) to discharge such other duties as may be prescribed. _Explanation.—For the purpose of this section, the expression “secretarial standards” means_ secretarial standards issued by the Institute of Company Secretaries of India constituted under section 3 of the Company Secretaries Act, 1980 (56 of 1980) and approved by the Central Government. (2) The provisions contained in section 204 and section 205 shall not affect the duties and functions of the Board of Directors, chairperson of the company, managing director or whole-time director under this Act, or any other law for the time being in force. CHAPTER XIV INSPECTION, INQUIRY AND INVESTIGATION **206. Power to call for information, inspect books and conduct inquiries.—(1) Where on a scrutiny** of any document filed by a company or on any information received by him, the Registrar is of the opinion that any further information or explanation or any further documents relating to the company is necessary, he may by a written notice require the company— (a) to furnish in writing such information or explanation; or (b) to produce such documents, within such reasonable time, as may be specified in the notice. (2) On the receipt of a notice under sub-section (1), it shall be the duty of the company and of its officers concerned to furnish such information or explanation to the best of their knowledge and power and to produce the documents to the Registrar within the time specified or extended by the Registrar: Provided that where such information or explanation relates to any past period, the officers who had been in the employment of the company for such period, if so called upon by the Registrar through a notice served on them in writing, shall also furnish such information or explanation to the best of their knowledge. 1. Subs. by Act 22 of 2019, s. 30, for sub-section (5) (w.e.f. 2-11-2018). 2. Subs. by Act 29 of 2020, s. 41, for certain words (w.e.f. 21-12-2020). 138 ----- (3) If no information or explanation is furnished to the Registrar within the time specified under sub section (1) or if the Registrar on an examination of the documents furnished is of the opinion that the information or explanation furnished is in adequate or if the Registrar is satisfied on a scrutiny of the documents furnished that an unsatisfactory state of affairs exists in the company and does not disclose a full and fair statement of the information required, he may, by another written notice, call on the company to produce for his inspection such further books of account, books, papers and explanations as he may require at such place and at such time as he may specify in the notice: Provided that before any notice is served under this sub-section, the Registrar shall record his reasons in writing for issuing such notice. (4) If the Registrar is satisfied on the basis of information available with or furnished to him or on a representation made to him by any person that the business of a company is being carried on for a fraudulent or unlawful purpose or not in compliance with the provisions of this Act or if the grievances of investors are not being addressed, the Registrar may, after informing the company of the allegations made against it by a written order, call on the company to furnish in writing any information or explanation on matters specified in the order within such time as he may specify therein and carry out such inquiry as he deems fit after providing the company a reasonable opportunity of being heard: Provided that the Central Government may, if it is satisfied that the circumstances so warrant, direct the Registrar or an inspector appointed by it for the purpose to carry out the inquiry under this sub-section: Provided further that where business of a company has been or is being carried on for a fraudulent or unlawful purpose, every officer of the company who is in default shall be punishable for fraud in the manner as provided in section 447. (5) Without prejudice to the foregoing provisions of this section, the Central Government may, if it is satisfied that the circumstances so warrant, direct inspection of books and papers of a company by an inspector appointed by it for the purpose. (6) The Central Government may, having regard to the circumstances by general or special order, authorise any statutory authority to carry out the inspection of books of account of a company or class of companies. (7) If a company fails to furnish any information or explanation or produce any document required under this section, the company and every officer of the company, who is in default shall be punishable with a fine which may extend to one lakh rupees and in the case of a continuing failure, with an additional fine which may extend to five hundred rupees for everyday after the first during which the failure continues. **207.Conduct of inspection and inquiry.—(1) Where a Registrar or inspector calls for the books of** account and other books and papers under section 206, it shall be the duty of every director, officer or other employee of the company to produce all such documents to the Registrar or inspector and furnish him with such statements, information or explanations in such form as the Registrar or inspector may require and shall render all assistance to the Registrar or inspector in connection with such inspection. (2) The Registrar or inspector, making an inspection or inquiry under section 206 may, during the course of such inspection or inquiry, as the case may be,— (a) make or cause to be made copies of books of account and other books and papers; or (b) place or cause to be placed any marks of identification in such books in token of the inspection having been made. (3) Notwithstanding anything contained in any other law for the time being in force or in any contract to the contrary, the Registrar or inspector making an inspection or inquiry shall have all the powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit in respect of the following matters, namely:— (a) the discovery and production of books of account and other documents, at such place and time as may be specified by such Registrar or inspector making the inspection or inquiry; _(b) summoning and enforcing the attendance of persons and examining them on oath; and_ 139 ----- _(c) inspection of any books, registers and other documents of the company at any place._ (4) (i) If any director or officer of the company disobeys the direction issued by the Registrar or the inspector under this section, the director or the officer shall be punishable with imprisonment which may extend to one year and with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees. (ii) If a director or an officer of the company has been convicted of an offence under this section, the director or the officer shall, on and from the date on which he is so convicted, be deemed to have vacated his office as such and on such vacation of office, shall be disqualified from holding an office in any company. **208. Report on inspection made.—The Registrar or inspector shall, after the inspection of the books** of account or an inquiry under section 206 and other books and papers of the company under section 207, submit a report in writing to the Central Government along with such documents, if any, and such report may, if necessary, include a recommendation that further investigation into the affairs of the company is necessary giving his reasons in support. **209. Search and seizure.—(1) Where, upon information in his possession or otherwise, the Registrar** or inspector has reasonable ground to believe that the books and papers of a company, or relating to the key managerial personnel or any director or auditor or company secretary in practice if the company has not appointed a company secretary, are likely to be destroyed, mutilated, altered, falsified or secreted, he may, after obtaining an order from the Special Court for the seizure of such books and papers,— (a) enter, with such assistance as may be required, and search, the place or places where such books or papers are kept; and (b) seize such books and papers as he considers necessary after allowing the company to take copies of, or extracts from, such books or papers at its cost. (2) The Registrar or inspector shall return the books and papers seized under sub-section (1), as soon as may be, and in any case not later than one hundred and eightieth day after such seizure, to the company from whose custody or power such books or papers were seized: Provided that the books and papers may be called for by the Registrar or inspector for a further period of one hundred and eighty days by an order in writing if they are needed again: Provided further that the Registrar or inspector may, before returning such books and papers as aforesaid, take copies of, or extracts from them or place identification marks on them or any part thereof or deal with the same in such other manner as he considers necessary. (3) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974) relating to searches or seizures shall apply, mutatis mutandis, to every search and seizure made under this section. **210. Investigation into affairs of company.—(1) Where the Central Government is of the opinion,** that it is necessary to investigate into the affairs of a company,— (a) on the receipt of a report of the Registrar or inspector under section 208; (b) on intimation of a special resolution passed by a company that the affairs of the company ought to be investigated; or (c) in public interest, it may order an investigation into the affairs of the company. (2) Where an order is passed by a court or the Tribunal in any proceedings before it that the affairs of a company ought to be investigated, the Central Government shall order an investigation into the affairs of that company. (3) For the purposes of this section, the Central Government may appoint one or more persons as inspectors to investigate into the affairs of the company and to report thereon in such manner as the Central Government may direct. 140 ----- **211. Establishment of Serious Fraud Investigation Office.—(1) The Central Government shall, by** notification, establish an office to be called the Serious Fraud Investigation Office to investigate frauds relating to a company: Provided that until the Serious Fraud Investigation Office is established under sub-section (1), the Serious Fraud Investigation Office set-up by the Central Government in terms of the Government of India Resolution No. 45011/16/2003-Adm-I, dated the 2nd July, 2003 shall be deemed to be the Serious Fraud Investigation Office for the purpose of this section. (2) The Serious Fraud Investigation Office shall be headed by a Director and consist of such number of experts from the following fields to be appointed by the Central Government from amongst persons of ability, integrity and experience in,— (i) banking; (ii) corporate affairs; (iii) taxation; (iv) forensic audit; (v) capital market; (vi) information technology; (vii) law; or (viii) such other fields as may be prescribed. (3) The Central Government shall, by notification, appoint a Director in the Serious Fraud Investigation Office, who shall be an officer not below the rank of a Joint Secretary to the Government of India having knowledge and experience in dealing with matters relating to corporate affairs. (4) The Central Government may appoint such experts and other officers and employees in the Serious Fraud Investigation Office as it considers necessary for the efficient discharge of its functions under this Act. (5) The terms and conditions of service of Director, experts, and other officers and employees of the Serious Fraud Investigation Office shall be such as may be prescribed. **212. Investigation into affairs of Company by Serious Fraud Investigation Office.—(1) Without** prejudice to the provisions of section 210, where the Central Government is of the opinion, that it is necessary to investigate into the affairs of a company by the Serious Fraud Investigation Office— (a) on receipt of a report of the Registrar or inspector under section 208; (b) on intimation of a special resolution passed by a company that its affairs are required to be investigated; (c) in the public interest; or (d) on request from any Department of the Central Government or a State Government, the Central Government may, by order, assign the investigation into the affairs of the said company to the Serious Fraud Investigation Office and its Director, may designate such number of inspectors, as he may consider necessary for the purpose of such investigation. (2) Where any case has been assigned by the Central Government to the Serious Fraud Investigation Office for investigation under this Act, no other investigating agency of Central Government or any State Government shall proceed with investigation in such case in respect of any offence under this Act and in case any such investigation has already been initiated, it shall not be proceeded further with and the concerned agency shall transfer the relevant documents and records in respect of such offences under this Act to Serious Fraud Investigation Office. (3) Where the investigation into the affairs of a company has been assigned by the Central Government to Serious Fraud Investigation Office, it shall conduct the investigation in the manner and follow the 141 ----- procedure provided in this Chapter; and submit its report to the Central Government within such period as may be specified in the order. (4) The Director, Serious Fraud Investigation Office shall cause the affairs of the company to be investigated by an Investigating Officer who shall have the power of the inspector under section 217. (5) The company and its officers and employees, who are or have been in employment of the company shall be responsible to provide all information, explanation, documents and assistance to the Investigating Officer as he may require for conduct of the investigation. (6) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), [1][offence covered under section 447] of this Act shall be cognizable and no person accused of any offence under those sections shall be released on bail or on his own bond unless— (i) the Public Prosecutor has been given an opportunity to oppose the application for such release; and (ii) where the Public Prosecutor opposes the application, the court is satisfied that there are reasonable grounds for believing that he is not guilty of such offence and that he is not likely to commit any offence while on bail: Provided that a person, who, is under the age of sixteen years or is a woman or is sick or infirm, may be released on bail, if the Special Court so directs: Provided further that the Special Court shall not take cognizance of any offence referred to this sub section except upon a complaint in writing made by— (i) the Director, Serious Fraud Investigation Office; or (ii) any officer of the Central Government authorised, by a general or special order in writing in this behalf by that Government. (7) The limitation on granting of bail specified in sub-section (6) is in addition to the limitations under the Code of Criminal Procedure, 1973 (2 of 1974) or any other law for the time being in force on granting of bail. (8) [2][If any officer not below the rank of Assistant Director] of Serious Fraud Investigation Office authorised in this behalf by the Central Government by general or special order, has on the basis of material in his possession reason to believe (the reason for such belief to be recorded in writing) that any person has been guilty of any offence punishable under sections referred to in sub-section (6), he may arrest such person and shall, as soon as may be, inform him of the grounds for such arrest. (9) [3][The officer authorized under sub-section (8) shall, immediately after arrest of such person under such sub-section], forward a copy of the order, along with the material in his possession, referred to in that sub-section, to the Serious Fraud Investigation Office in a sealed envelope, in such manner as may be prescribed and the Serious Fraud Investigation Office shall keep such order and material for such period as may be prescribed. (10) Every person arrested under sub-section (8) shall within twenty-four hours, be taken to a [4][Special Court or Judicial Magistrate] or a Metropolitan Magistrate, as the case may be, having jurisdiction: Provided that the period of twenty-four hours shall exclude the time necessary for the journey from the place of arrest to the [5][Special Court or Magistrate's court]. (11) The Central Government if so directs, the Serious Fraud Investigation Office shall submit an interim report to the Central Government. 1. Subs. by Act 21 of 2015, s. 17, for certain words, brackets and figures (w.e.f. 29-5-2015). 2. Subs. by Act 22 of 2019, s. 31, for “If the Director, Additional Director or Assistant Director” (w.e.f. 15-8-2019). 3. Subs. s. 31, ibid., for “The Director, Additional Director or Assistant Director of Serious Fraud Investigation Office shall, immediately after arrest of such person under sub-section (8)” (w.e.f. 15-8-2019). 4. Subs. by s. 31, ibid., for “Judicial Magistrate” (w.e.f. 15-8-2019). 5. Subs. by s. 31, ibid., for “Magistrate’s Court” (w.e.f. 15-8-2019). 142 ----- (12) On completion of the investigation, the Serious Fraud Investigation Office shall submit the investigation report to the Central Government. (13) Notwithstanding anything contained in this Act or in any other law for the time being in force, a copy of the investigation report may be obtained by any person concerned by making an application in this regard to the court. (14) On receipt of the investigation report, the Central Government may, after examination of the report (and after taking such legal advice, as it may think fit), direct the Serious Fraud Investigation Office to initiate prosecution against the company and its officers or employees, who are or have been in employment of the company or any other person directly or indirectly connected with the affairs of the company. 1[(14A) Where the report under sub-section (11) or sub-section (12) states that fraud has taken place in a company and due to such fraud any director, key managerial personnel, other officer of the company or any other person or entity, has taken undue advantage or benefit, whether in the form of any asset, property or cash or in any other manner, the Central Government may file an application before the Tribunal for appropriate orders with regard to disgorgement of such asset, property or cash and also for holding such director, key managerial personnel, other officer or any other person liable personally without any limitation of liability.] (15) Notwithstanding anything contained in this Act or in any other law for the time being in force, the investigation report filed with the Special Court for framing of charges shall be deemed to be a report filed by a police officer under section 173 of the Code of Criminal Procedure, 1973 (2 of 1974). (16) Notwithstanding anything contained in this Act, any investigation or other action taken or initiated by Serious Fraud Investigation Office under the provisions of the Companies Act, 1956 (1 of 1956) shall continue to be proceeded with under that Act as if this Act had not been passed. (17) (a) In case Serious Fraud Investigation Office has been investigating any offence under this Act, any other investigating agency, State Government, police authority, income-tax authorities having any information or documents in respect of such offence shall provide all such information or documents available with it to the Serious Fraud Investigation Office; (b) The Serious Fraud Investigation Office shall share any information or documents available with it, with any investigating agency, State Government, police authority or income-tax authorities, which may be relevant or useful for such investigating agency, State Government, police authority or income-tax authorities in respect of any offence or matter being investigated or examined by it under any other law. **213. Investigation into company’s affairs in other cases.—The Tribunal may,—** (a) on an application made by— (i) not less than one hundred members or members holding not less than one-tenth of the total voting power, in the case of a company having a share capital; or (ii) not less than one-fifth of the persons on the company’s register of members, in the case of a company having no share capital, and supported by such evidence as may be necessary for the purpose of showing that the applicants have good reasons for seeking an order for conducting an investigation into the affairs of the company; or (b) on an application made to it by any other person or otherwise, if it is satisfied that there are circumstances suggesting that— (i) the business of the company is being conducted with intent to defraud its creditors, members or any other person or otherwise for a fraudulent or unlawful purpose, or in a manner oppressive to any of its members or that the company was formed for any fraudulent or unlawful purpose; (ii) persons concerned in the formation of the company or the management of its affairs have in connection therewith been guilty of fraud, misfeasance or other misconduct towards the company or towards any of its members; or 1. Ins. by Act 22 of 2019, s. 31 (w.e.f. 15-8-2019). 143 ----- (iii) the members of the company have not been given all the information with respect to its affairs which they might reasonably expect, including information relating to the calculation of the commission payable to a managing or other director, or the manager, of the company, order, after giving a reasonable opportunity of being heard to the parties concerned, that the affairs of the company ought to be investigated by an inspector or inspectors appointed by the Central Government and where such an order is passed, the Central Government shall appoint one or more competent persons as inspectors to investigate into the affairs of the company in respect of such matters and to report thereupon to it in such manner as the Central Government may direct: Provided that if after investigation it is proved that— (i) the business of the company is being conducted with intent to defraud its creditors, members or any other persons or otherwise for a fraudulent or unlawful purpose, or that the company was formed for any fraudulent or unlawful purpose; or (ii) any person concerned in the formation of the company or the management of its affairs have in connection therewith been guilty of fraud, then, every officer of the company who is in default and the person or persons concerned in the formation of the company or the management of its affairs shall be punishable for fraud in the manner as provided in section 447. **214. Security for payment of costs and expenses of investigation.—Where an investigation is** ordered by the Central Government in pursuance of clause (b) of sub-section (1) of section 210, or in pursuance of an order made by the Tribunal under section 213, the Central Government may before appointing an inspector under sub-section (3) of section 210 or clause (b) of section 213, require the applicant to give such security not exceeding twenty-five thousand rupees as may be prescribed, as it may think fit, for payment of the costs and expenses of the investigation and such security shall be refunded to the applicant if the investigation results in prosecution. **215. Firm, body corporate or association not to be appointed as inspector.—No firm, body** corporate or other association shall be appointed as an inspector. **216. Investigation of ownership of company.—(1) Where it appears to the Central Government that** there is a reason so to do, it may appoint one or more inspectors to investigate and report on matters relating to the company, and its membership for the purpose of determining the true persons— (a) who are or have been financially interested in the success or failure, whether real or apparent, of the company; or (b) who are or have been able to control or to materially influence the policy of the [1][company; or]. 2[(c) who have or had beneficial interest in shares of a company or who are or have been beneficial owners or significant beneficial owner of a company]. (2) Without prejudice to its powers under sub-section (1), the Central Government shall appoint one or more inspectors under that sub-section, if the Tribunal, in the course of any proceeding before it, directs by an order that the affairs of the company ought to be investigated as regards the membership of the company and other matters relating to the company, for the purposes specified in sub-section (1). (3) While appointing an inspector under sub-section (1), the Central Government may define the scope of the investigation, whether as respects the matters or the period to which it is to extend or otherwise, and in particular, may limit the investigation to matters connected with particular shares or debentures. (4) Subject to the terms of appointment of an inspector, his powers shall extend to the investigation of any circumstances suggesting the existence of any arrangement or understanding which, though not legally binding, is or was observed or is likely to be observed in practice and which is relevant for the purposes of his investigation. 1. Subs. by Act 1 of 2018, s. 71, for “company” (w.e.f. 13-6-2018). 2. Ins. by s. 71, ibid. (w.e.f. 13-6-2018). 144 ----- **217. Procedure, powers, etc., of inspectors.—(1) It shall be the duty of all officers and other** employees and agents including the former officers, employees and agents of a company which is under investigation in accordance with the provisions contained in this Chapter, and where the affairs of any other body corporate or a person are investigated under section 219, of all officers and other employees and agents including former officers, employees and agents of such body corporate or a person— (a) to preserve and to produce to an inspector or any person authorised by him in this behalf all books and papers of, or relating to, the company or, as the case may be, relating to the other body corporate or the person, which are in their custody or power; and (b) otherwise to give to the inspector all assistance in connection with the investigation which they are reasonably able to give. (2) The inspector may require any body corporate, other than a body corporate referred to in sub-section (1), to furnish such information to, or produce such books and papers before him or any person authorised by him in this behalf as he may consider necessary, if the furnishing of such information or the production of such books and papers is relevant or necessary for the purposes of his investigation. (3) The inspector shall not keep in his custody any books and papers produced under sub-section (1) or sub-section (2) for more than one hundred and eighty days and return the same to the company, body corporate, firm or individual by whom or on whose behalf the books and papers were produced: Provided that the books and papers may be called for by the inspector if they are needed again for a further period of one hundred and eighty days by an order in writing. (4) An inspector may examine on oath— (a) any of the persons referred to in sub-section (1); and (b) with the prior approval of the Central Government, any other person, in relation to the affairs of the company, or other body corporate or person, as the case may be, and for that purpose may require any of those persons to appear before him personally: Provided that in case of an investigation under section 212, the prior approval of Director, Serious Fraud Investigation Office shall be sufficient under clause (b). (5) Notwithstanding anything contained in any other law for the time being in force or in any contract to the contrary, the inspector, being an officer of the Central Government, making an investigation under this Chapter shall have all the powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit in respect of the following matters, namely:— (a) the discovery and production of books of account and other documents, at such place and time as may be specified by such person; (b) summoning and enforcing the attendance of persons and examining them on oath; and (c) inspection of any books, registers and other documents of the company at any place. (6) (i) If any director or officer of the company disobeys the direction issued by the Registrar or the inspector under this section, the director or the officer shall be punishable with imprisonment which may extend to one year and with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees. (ii) If a director or an officer of the company has been convicted of an offence under this section, the director or the officer shall, on and from the date on which he is so convicted, be deemed to have vacated his office as such and on such vacation of office, shall be disqualified from holding an office in any company. (7) The notes of any examination under sub-section (4) shall be taken down in writing and shall be read over to, or by, and signed by, the person examined, and may thereafter be used in evidence against him. (8) If any person fails without reasonable cause or refuses— 145 ----- (a) to produce to an inspector or any person authorised by him in this behalf any book or paper which is his duty under sub-section (1) or sub-section (2) to produce; (b) to furnish any information which is his duty under sub-section (2) to furnish; (c) to appear before the inspector personally when required to do so under sub-section (4) or to answer any question which is put to him by the inspector in pursuance of that sub-section; or (d) to sign the notes of any examination referred to in sub-section (7), he shall be punishable with imprisonment for a term which may extend to six months and with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees, and also with a further fine which may extend to two thousand rupees for every day after the first during which the failure or refusal continues. (9) The officers of the Central Government, State Government, police or statutory authority shall provide assistance to the inspector for the purpose of inspection, inquiry or investigation, which the inspector may, with the prior approval of the Central Government, require. (10) The Central Government may enter into an agreement with the Government of a foreign State for reciprocal arrangements to assist in any inspection, inquiry or investigation under this Act or under the corresponding law in force in that State and may, by notification, render the application of this Chapter in relation to a foreign State with which reciprocal arrangements have been made subject to such modifications, exceptions, conditions and qualifications as may be deemed expedient for implementing the agreement with that State. (11) Notwithstanding anything contained in this Act or in the Code of Criminal Procedure, 1973(2 of 1974) if, in the course of an investigation into the affairs of the company, an application is made to the competent court in India by the inspector stating that evidence is, or may be, available in a country or place outside India, such court may issue a letter of request to a court or an authority in such country or place, competent to deal with such request, to examine orally, or otherwise, any person, supposed to be acquainted with the facts and circumstances of the case, to record his statement made in the course of such examination and also to require such person or any other person to produce any document or thing, which may be in his possession pertaining to the case, and to forward all the evidence so taken or collected or the authenticated copies thereof or the things so collected to the court in India which had issued such letter of request: Provided that the letter of request shall be transmitted in such manner as the Central Government may specify in this behalf: Provided further that every statement recorded or document or thing received under this sub-section shall be deemed to be the evidence collected during the course of investigation. (12) Upon receipt of a letter of request from a court or an authority in a country or place outside India, competent to issue such letter in that country or place for the examination of any person or production of any document or thing in relation to affairs of a company under investigation in that country or place, the Central Government may, if it thinks fit, forward such letter of request to the court concerned, which shall thereupon summon the person before it and record his statement or cause any document or thing to be produced, or send the letter to any inspector for investigation, who shall thereupon investigate into the affairs of company in the same manner as the affairs of a company are investigated under this Act and the inspector shall submit the report to such court within thirty days or such extended time as the court may allow for further action: Provided that the evidence taken or collected under this sub-section or authenticated copies thereof or the things so collected shall be forwarded by the court, to the Central Government for transmission, in such manner as the Central Government may deem fit, to the court or the authority in country or place outside India which had issued the letter of request. **218. Protection of employees during investigation.—(1) Notwithstanding anything contained in any** other law for the time being in force, if— (a) during the course of any investigation of the affairs and other matters of or relating to a company, other body corporate or person under section 210, section 212, section 213 or section 219 or 146 ----- of the membership and other matters of or relating to a company, or the ownership of shares in or debentures of a company or body corporate, or the affairs and other matters of or relating to a company, other body corporate or person, under section 216; or (b) during the pendency of any proceeding against any person concerned in the conduct and management of the affairs of a company under Chapter XVI, such company, other body corporate or person proposes— (i) to discharge or suspend any employee; or (ii) to punish him, whether by dismissal, removal, reduction in rank or otherwise; or (iii) to change the terms of employment to his disadvantage, the company, other body corporate or person, as the case may be, shall obtain approval of the Tribunal of the action proposed against the employee and if the Tribunal has any objection to the action proposed, it shall send by post notice thereof in writing to the company, other body corporate or person concerned. (2) If the company, other body corporate or person concerned does not receive within thirty days of making of application under sub-section (1), the approval of the Tribunal, then and only then, the company, other body corporate or person concerned may proceed to take against the employee, the action proposed. (3) If the company, other body corporate or person concerned is dissatisfied with the objection raised by the Tribunal, it may, within a period of thirty days of the receipt of the notice of the objection, prefer an appeal to the Appellate Tribunal in such manner and on payment of such fees as may be prescribed. (4) The decision of the Appellate Tribunal on such appeal shall be final and binding on the Tribunal and on the company, other body corporate or person concerned. (5) For the removal of doubts, it is hereby declared that the provisions of this section shall have effect without prejudice to the provisions of any other law for the time being in force. **219. Power of inspector to conduct investigation into affairs of related companies, etc.—If an** inspector appointed under section 210 or section 212 or section 213 to investigate into the affairs of a company considers it necessary for the purposes of the investigation, to investigate also the affairs of— (a) any other body corporate which is, or has at any relevant time been the company’s subsidiary company or holding company, or a subsidiary company of its holding company; (b) any other body corporate which is, or has at any relevant time been managed by any person as managing director or as manager, who is, or was, at the relevant time, the managing director or the manager of the company; (c) any other body corporate whose Board of Directors comprises nominees of the company or is accustomed to act in accordance with the directions or instructions of the company or any of its directors; or (d) any person who is or has at any relevant time been the company’s managing director or manager or employee, he shall, subject to the prior approval of the Central Government, investigate into and report on the affairs of the other body corporate or of the managing director or manager, in so far as he considers that the results of his investigation are relevant to the investigation of the affairs of the company for which he is appointed. **220. Seizure of documents by inspector.—(1) Where in the course of an investigation under this** Chapter, the inspector has reasonable grounds to believe that the books and papers of, or relating to, any company or other body corporate or managing director or manager of such company are likely to be destroyed, mutilated, altered, falsified or secreted, the inspector may— (a) enter, with such assistance as may be required, the place or places where such books and papers are kept in such manner as may be required; and (b) seize books and papers as he considers necessary after allowing the company to take copies of, or extracts from, such books and papers at its cost for the purposes of his investigation. 147 ----- (2) The inspector shall keep in his custody the books and papers seized under this section for such a period not later than the conclusion of the investigation as he considers necessary and thereafter shall return the same to the company or the other body corporate, or, as the case may be, to the managing director or the manager or any other person from whose custody or power they were seized: Provided that the inspector may, before returning such books and papers as aforesaid, take copies of, or extracts from them or place identification marks on them or any part thereof or deal with the same in such manner as he considers necessary. (3) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974), relating to searches or seizures shall apply mutatis mutandis to every search or seizure made under this section. **221. Freezing of assets of company on inquiry and investigation.—(1) Where it appears to the** Tribunal, on a reference made to it by the Central Government or in connection with any inquiry or investigation into the affairs of a company under this Chapter or on any complaint made by such number of members as specified under sub-section (1) of section 244 or a creditor having one lakh amount outstanding against the company or any other person having a reasonable ground to believe that the removal, transfer or disposal of funds, assets, properties of the company is likely to take place in a manner that is prejudicial to the interests of the company or its shareholders or creditors or in public interest, it may by order direct that such transfer, removal or disposal shall not take place during such period not exceeding three years as may be specified in the order or may take place subject to such conditions and restrictions as the Tribunal may deem fit. (2) In case of any removal, transfer or disposal of funds, assets, or properties of the company in contravention of the order of the Tribunal under sub-section (1), the company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to twenty-five lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to three years or with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees, or with both. **222. Imposition of restrictions upon securities.—(1) Where it appears to the Tribunal, in connection** with any investigation under section 216 or on a complaint made by any person in this behalf, that there is good reason to find out the relevant facts about any securities issued or to be issued by a company and the Tribunal is of the opinion that such facts cannot be found out unless certain restrictions, as it may deem fit, are imposed, the Tribunal may, by order, direct that the securities shall be subject to such restrictions as it may deem fit for such period not exceeding three years as may be specified in the order. (2) Where securities in any company are issued or transferred or acted upon in contravention of an order of the Tribunal under sub-section (1), the company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to twenty-five lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees, or with both. **223. Inspector’s report.—(1) An inspector appointed under this Chapter may, and if so directed by** the Central Government shall, submit interim reports to that Government, and on the conclusion of the investigation, shall submit a final report to the Central Government. (2) Every report made under sub-section (1) shall be in writing or printed as the Central Government may direct. (3) A copy of the report made under sub-section (1) may be obtained [1][by members, creditors or any other person whose interest is likely to be affected] by making an application in this regard to the Central Government. (4) The report of any inspector appointed under this Chapter shall be authenticated either— (a) [2][by the seal, if any] of the company whose affairs have been investigated; or 1. Ins. by Act 1 of 2018, s. 72 (w.e.f. 9-2-2018). 2. Subs. by Act 21 of 2015, s. 18, for “by the seal” (w.e.f. 29-5-2015). 148 ----- (b) by a certificate of a public officer having the custody of the report, as provided under section 76 of the Indian Evidence Act, 1872 (1 of 1872), and such report shall be admissible in any legal proceeding as evidence in relation to any matter contained in the report. (5) Nothing in this section shall apply to the report referred to in section 212. **224. Actions to be taken in pursuance of inspector’s report.—(1) If, from an inspector’s report,** made under section 223, it appears to the Central Government that any person has, in relation to the company or in relation to any other body corporate or other person whose affairs have been investigated under this Chapter been guilty of any offence for which he is criminally liable, the Central Government may prosecute such person for the offence and it shall be the duty of all officers and other employees of the company or body corporate to give the Central Government the necessary assistance in connection with the prosecution. (2) If any company or other body corporate is liable to be wound up under this Act [1][or under the Insolvency and Bankruptcy Code, 2016 (31 of 2016)] and it appears to the Central Government from any such report made under section 223 that it is expedient so to do by reason of any such circumstances as are referred to in section 213, the Central Government may, unless the company or body corporate is already being wound up by the Tribunal, cause to be presented to the Tribunal by any person authorised by the Central Government in this behalf— (a) a petition for the winding up of the company or body corporate on the ground that it is just and equitable that it should be wound up; (b) an application under section 241; or (c) both. (3) If from any such report as aforesaid, it appears to the Central Government that proceedings ought, in the public interest, to be brought by the company or any body corporate whose affairs have been investigated under this Chapter— (a) for the recovery of damages in respect of any fraud, misfeasance or other misconduct in connection with the promotion or formation, or the management of the affairs, of such company or body corporate; or (b) for the recovery of any property of such company or body corporate which has been misapplied or wrongfully retained, the Central Government may itself bring proceedings for winding up in the name of such company or body corporate. (4) The Central Government, shall be indemnified by such company or body corporate against any costs or expenses incurred by it in, or in connection with, any proceedings brought by virtue of sub-section (3). (5) Where the report made by an inspector states that fraud has taken place in a company and due to such fraud any director, key managerial personnel, other officer of the company or any other person or entity, has taken undue advantage or benefit, whether in the form of any asset, property or cash or in any other manner, the Central Government may file an application before the Tribunal for appropriate orders with regard to disgorgement of such asset, property, or cash, as the case may be, and also for holding such director, key managerial personnel, officer or other person liable personally without any limitation of liability. **225. Expenses of investigation.—(1) The expenses of, and incidental to, an investigation by an** inspector appointed by the Central Government under this Chapter other than expenses of inspection under section 214 shall be defrayed in the first instance by the Central Government, but shall be reimbursed by the following persons to the extent mentioned below, namely:— (a) any person who is convicted on a prosecution instituted, or who is ordered to pay damages or restore any property in proceedings brought, under section 224, to the extent that he may in the same 1. Ins. by Act 31 of 2016, s. 255 and the Eleventh Schedule (w.e.f. 15-11-2016). 149 ----- proceedings be ordered to pay the said expenses as may be specified by the court convicting such person, or ordering him to pay such damages or restore such property, as the case may be; (b) any company or body corporate in whose name proceedings are brought as aforesaid, to the extent of the amount or value of any sums or property recovered by it as a result of such proceedings; (c) unless, as a result of the investigation, a prosecution is instituted under section 224,— (i) any company, body corporate, managing director or manager dealt with by the report of the inspector; and (ii) the applicants for the investigation, where the inspector was appointed under section 213, to such extent as the Central Government may direct. (2) Any amount for which a company or body corporate is liable under clause (b) of sub-section (1) shall be a first charge on the sums or property mentioned in that clause. **226. Voluntary winding up of company, etc., not to stop investigation proceedings.—An** investigation under this Chapter may be initiated notwithstanding, and no such investigation shall be stopped or suspended by reason only of, the fact that— (a) an application has been made under section 241; (b) the company has passed a special resolution for voluntary winding up; or (c) any other proceeding for the winding up of the company is pending before the Tribunal: Provided that where a winding up order is passed by the Tribunal in a proceeding referred to in clause (c), the inspector shall inform the Tribunal about the pendency of the investigation proceedings before him and the Tribunal shall pass such order as it may deem fit: Provided further that nothing in the winding up order shall absolve any director or other employee of the company from participating in the proceedings before the inspector or any liability as a result of the finding by the inspector. **227. Legal advisors and bankers not to disclose certain information.—Nothing in this Chapter shall** require the disclosure to the Tribunal or to the Central Government or to the Registrar or to an inspector appointed by the Central Government— (a) by a legal adviser, of any privileged communication made to him in that capacity, except as respects the name and address of his client; or (b) by the bankers of any company, body corporate, or other person, of any information as to the affairs of any of their customers, other than such company, body corporate, or person. **228. Investigation, etc., of foreign companies.—The provisions of this Chapter shall apply mutatis** _mutandis to inspection, inquiry or investigation in relation to foreign companies._ **229. Penalty for furnishing false statement, mutilation, destruction of documents.—Where a** person who is required to provide an explanation or make a statement during the course of inspection, inquiry or investigation, or an officer or other employee of a company or other body corporate which is also under investigation,— (a) destroys, mutilates or falsifies, or conceals or tampers or unauthorised removes, or is a party to the destruction, mutilation or falsification or concealment or tampering or unauthorised removal of, documents relating to the property, assets or affairs of the company or the body corporate; (b) makes, or is a party to the making of, a false entry in any document concerning the company or body corporate; or (c) provides an explanation which is false or which he knows to be false, he shall be punishable for fraud in the manner as provided in section 447. CHAPTER XV COMPROMISES, ARRANGEMENTS AND AMALGAMATIONS **230. Power to compromise or make arrangements with creditors and members.—(1) Where a** compromise or arrangement is proposed— 150 ----- (a) between a company and its creditors or any class of them; or (b) between a company and its members or any class of them, the Tribunal may, on the application of the company or of any creditor or member of the company, or in the case of a company which is being wound up, of the liquidator,[1][appointed under this Act or under the Insolvency and Bankruptcy Code, 2016 (31 of 2016), as the case may be,] order a meeting of the creditors or class of creditors, or of the members or class of members, as the case may be, to be called, held and conducted in such manner as the Tribunal directs. _Explanation.—For the purposes of this sub-section, arrangement includes a reorganisation of the_ company’s share capital by the consolidation of shares of different classes or by the division of shares into shares of different classes, or by both of those methods. (2) The company or any other person, by whom an application is made under sub-section (1), shall disclose to the Tribunal by affidavit— (a) all material facts relating to the company, such as the latest financial position of the company, the latest auditor’s report on the accounts of the company and the pendency of any investigation or proceedings against the company; (b) reduction of share capital of the company, if any, included in the compromise or arrangement; (c) any scheme of corporate debt restructuring consented to by not less than seventy-five per cent. of the secured creditors in value, including— (i) a creditor’s responsibility statement in the prescribed form; (ii) safeguards for the protection of other secured and unsecured creditors; (iii) report by the auditor that the fund requirements of the company after the corporate debt restructuring as approved shall conform to the liquidity test based upon the estimates provided to them by the Board; (iv) where the company proposes to adopt the corporate debt restructuring guidelines specified by the Reserve Bank of India, a statement to that effect; and (v) a valuation report in respect of the shares and the property and all assets, tangible and intangible, movable and immovable, of the company by a registered valuer. (3) Where a meeting is proposed to be called in pursuance of an order of the Tribunal under sub section (1), a notice of such meeting shall be sent to all the creditors or class of creditors and to all the members or class of members and the debenture-holders of the company, individually at the address registered with the company which shall be accompanied by a statement disclosing the details of the compromise or arrangement, a copy of the valuation report, if any, and explaining their effect on creditors, key managerial personnel, promoters and non-promoter members, and the debenture-holders and the effect of the compromise or arrangement on any material interests of the directors of the company or the debenture trustees, and such other matters as may be prescribed: Provided that such notice and other documents shall also be placed on the website of the company, if any, and in case of a listed company, these documents shall be sent to the Securities and Exchange Board and stock exchange where the securities of the companies are listed, for placing on their website and shall also be published in newspapers in such manner as may be prescribed: Provided further that where the notice for the meeting is also issued by way of an advertisement, it shall indicate the time within which copies of the compromise or arrangement shall be made available to the concerned persons free of charge from the registered office of the company. (4) A notice under sub-section (3) shall provide that the persons to whom the notice is sent may vote in the meeting either themselves or through proxies or by postal ballot to the adoption of the compromise or arrangement within one month from the date of receipt of such notice: 1. Ins. by Act 31 of 2016, s. 255 and the Eleventh Schedule (w.e.f. 15-11-2016). 151 ----- Provided that any objection to the compromise or arrangement shall be made only by persons holding not less than ten per cent. of the shareholding or having outstanding debt amounting to not less than five per cent. of the total outstanding debt as per the latest audited financial statement. (5) A notice under sub-section (3) along with all the documents in such form as may be prescribed shall also be sent to the Central Government, the income-tax authorities, the Reserve Bank of India, the Securities and Exchange Board, the Registrar, the respective stock exchanges, the Official Liquidator, the Competition Commission of India established under sub-section (1) of section 7 of the Competition Act, 2002 (12 of 2003), if necessary, and such other sectoral regulators or authorities which are likely to be affected by the compromise or arrangement and shall require that representations, if any, to be made by them shall be made within a period of thirty days from the date of receipt of such notice, failing which, it shall be presumed that they have no representations to make on the proposals. (6) Where, at a meeting held in pursuance of sub-section (1), majority of persons representing three fourths in value of the creditors, or class of creditors or members or class of members, as the case may be, voting in person or by proxy or by postal ballot, agree to any compromise or arrangement and if such compromise or arrangement is sanctioned by the Tribunal by an order, the same shall be binding on the company, all the creditors, or class of creditors or members or class of members, as the case may be, or, in case of a company being wound up, on the liquidator [1][appointed under this act or under the Insolvency and Bankruptcy Code, 2016 (31 of 2016), as the case may be,] and the contributories of the company. (7) An order made by the Tribunal under sub-section (6) shall provide for all or any of the following matters, namely:— (a) where the compromise or arrangement provides for conversion of preference shares into equity shares, such preference shareholders shall be given an option to either obtain arrears of dividend in cash or accept equity shares equal to the value of the dividend payable; (b) the protection of any class of creditors; (c) if the compromise or arrangement results in the variation of the shareholders’ rights, it shall be given effect to under the provisions of section 48; (d) if the compromise or arrangement is agreed to by the creditors under sub-section (6), any proceedings pending before the Board for Industrial and Financial Reconstruction established under section 4 of the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986) shall abate; (e) such other matters including exit offer to dissenting shareholders, if any, as are in the opinion of the Tribunal necessary to effectively implement the terms of the compromise or arrangement: Provided that no compromise or arrangement shall be sanctioned by the Tribunal unless a certificate by the company's auditor has been filed with the Tribunal to the effect that the accounting treatment, if any, proposed in the scheme of compromise or arrangement is in conformity with the accounting standards prescribed under section 133. (8) The order of the Tribunal shall be filed with the Registrar by the company within a period of thirty days of the receipt of the order. (9) The Tribunal may dispense with calling of a meeting of creditor or class of creditors where such creditors or class of creditors, having at least ninety per cent. value, agree and confirm, by way of affidavit, to the scheme of compromise or arrangement. (10) No compromise or arrangement in respect of any buy-back of securities under this section shall be sanctioned by the Tribunal unless such buy-back is in accordance with the provisions of section 68. (11) Any compromise or arrangement may include takeover offer made in such manner as may be prescribed: Provided that in case of listed companies, takeover offer shall be as per the regulations framed by the Securities and Exchange Board. (12) An aggrieved party may make an application to the Tribunal in the event of any grievances with respect to the takeover offer of companies other than listed companies in such manner as may be prescribed and the Tribunal may, on application, pass such order as it may deem fit. 1. Ins. by Act 31 of 2016, s. 255 and The Eleventh Schedule (w.e.f. 15-11-2016). 152 ----- _Explanation.—For the removal of doubts, it is hereby declared that the provisions of section 66 shall_ not apply to the reduction of share capital effected in pursuance of the order of the Tribunal under this section. **231. Power of Tribunal to enforce compromise or arrangement.—(1) Where the Tribunal makes** an order under section 230 sanctioning a compromise or an arrangement in respect of a company, it— (a) shall have power to supervise the implementation of the compromise or arrangement; and (b) may, at the time of making such order or at any time thereafter, give such directions in regard to any matter or make such modifications in the compromise or arrangement as it may consider necessary for the proper implementation of the compromise or arrangement. (2) If the Tribunal is satisfied that the compromise or arrangement sanctioned under section 230 cannot be implemented satisfactorily with or without modifications, and the company is unable to pay its debts as per the scheme, it may make an order for winding up the company and such an order shall be deemed to be an order made under section 273. (3) The provisions of this section shall, so far as may be, also apply to a company in respect of which an order has been made before the commencement of this Act sanctioning a compromise or an arrangement. **232. Merger and amalgamation of companies.—(1) Where an application is made to the Tribunal** under section 230 for the sanctioning of a compromise or an arrangement proposed between a company and any such persons as are mentioned in that section, and it is shown to the Tribunal— (a) that the compromise or arrangement has been proposed for the purposes of, or in connection with, a scheme for the reconstruction of the company or companies involving merger or the amalgamation of any two or more companies; and (b) that under the scheme, the whole or any part of the undertaking, property or liabilities of any company (hereinafter referred to as the transferor company) is required to be transferred to another company (hereinafter referred to as the transferee company), or is proposed to be divided among and transferred to two or more companies, the Tribunal may on such application, order a meeting of the creditors or class of creditors or the members or class of members, as the case may be, to be called, held and conducted in such manner as the Tribunal may direct and the provisions of sub-sections (3) to (6) of section 230 shall apply mutatis mutandis. (2) Where an order has been made by the Tribunal under sub-section (1), merging companies or the companies in respect of which a division is proposed, shall also be required to circulate the following for the meeting so ordered by the Tribunal, namely:— (a) the draft of the proposed terms of the scheme drawn up and adopted by the directors of the merging company; (b) confirmation that a copy of the draft scheme has been filed with the Registrar; (c) a report adopted by the directors of the merging companies explaining effect of compromise on each class of shareholders, key managerial personnel, promoters and non-promoter shareholders laying out in particular the share exchange ratio, specifying any special valuation difficulties; (d) the report of the expert with regard to valuation, if any; (e) a supplementary accounting statement if the last annual accounts of any of the merging company relate to a financial year ending more than six months before the first meeting of the company summoned for the purposes of approving the scheme. (3) The Tribunal, after satisfying itself that the procedure specified in sub-sections (1) and (2) has been complied with, may, by order, sanction the compromise or arrangement or by a subsequent order, make provision for the following matters, namely:— (a) the transfer to the transferee company of the whole or any part of the undertaking, property or liabilities of the transferor company from a date to be determined by the parties unless the Tribunal, for reasons to be recorded by it in writing, decides otherwise; (b) the allotment or appropriation by the transferee company of any shares, debentures, policies or other like instruments in the company which, under the compromise or arrangement, are to be allotted or appropriated by that company to or for any person: 153 ----- Provided that a transferee company shall not, as a result of the compromise or arrangement, hold any shares in its own name or in the name of any trust whether on its behalf or on behalf of any of its subsidiary or associate companies and any such shares shall be cancelled or extinguished; (c) the continuation by or against the transferee company of any legal proceedings pending by or against any transferor company on the date of transfer; (d) dissolution, without winding-up, of any transferor company; (e) the provision to be made for any persons who, within such time and in such manner as the Tribunal directs, dissent from the compromise or arrangement; (f) where share capital is held by any non-resident shareholder under the foreign direct investment norms or guidelines specified by the Central Government or in accordance with any law for the time being in force, the allotment of shares of the transferee company to such shareholder shall be in the manner specified in the order; (g) the transfer of the employees of the transferor company to the transferee company; (h) where the transferor company is a listed company and the transferee company is an unlisted company,— (A) the transferee company shall remain an unlisted company until it becomes a listed company; (B) if shareholders of the transferor company decide to opt out of the transferee company, provision shall be made for payment of the value of sharesheld by them and other benefits in accordance with a pre-determined price formula or after a valuation is made, and the arrangements under this provision may be made by the Tribunal: Provided that the amount of payment or valuation under this clause for anyshare shall not be less than what has been specified by the Securities and Exchange Board under any regulations framed by it; (i) where the transferor company is dissolved, the fee, if any, paid by the transferor company on its authorised capital shall be set-off against any fees payable by the transferee company on its authorised capital subsequent to the amalgamation; and (j) such incidental, consequential and supplemental matters as are deemed necessary to secure that the merger or amalgamation is fully and effectively carried out: Provided that no compromise or arrangement shall be sanctioned by the Tribunal unless a certificate by the company’s auditor has been filed with the Tribunal to the effect that the accounting treatment, if any, proposed in the scheme of compromise or arrangement is in conformity with the accounting standards prescribed under section 133. (4) Where an order under this section provides for the transfer of any property or liabilities, then, by virtue of the order, that property shall be transferred to the transferee company and the liabilities shall be transferred to and become the liabilities of the transferee company and any property may, if the order so directs, be freed from any charge which shall by virtue of the compromise or arrangement, cease to have effect. (5) Every company in relation to which the order is made shall cause a certified copy of the order to be filed with the Registrar for registration within thirty days of the receipt of certified copy of the order. (6) The scheme under this section shall clearly indicate an appointed date from which it shall be effective and the scheme shall be deemed to be effective from such date and not at a date subsequent to the appointed date. (7) Every company in relation to which the order is made shall, until the completion of the scheme, file a statement in such form and within such time as may be prescribed with the Registrar every year duly certified by a chartered accountant or a cost accountant or a company secretary in practice indicating whether the scheme is being complied with in accordance with the orders of the Tribunal or not. 154 ----- 1[(8) If a company fails to comply with sub-section (5), the company and every officer of the company who is in default shall be liable to a penalty of twenty thousand rupees, and where the failure is a continuing one, with a further penalty of one thousand rupees for each day after the first during which such failure continues, subject to a maximum of three lakh rupees.] _Explanation.—For the purposes of this section,—_ (i) in a scheme involving a merger, where under the scheme the undertaking, property and liabilities of one or more companies, including the company in respect of which the compromise or arrangement is proposed, are to be transferred to another existing company, it is a merger by absorption, or where the undertaking, property and liabilities of two or more companies, including the company in respect of which the compromise or arrangement is proposed, are to be transferred to a new company, whether or not a public company, it is a merger by formation of a new company; (ii) references to merging companies are in relation to a merger by absorption, to the transferor and transferee companies, and, in relation to a merger by formation of a new company, to the transferor companies; (iii) a scheme involves a division, where under the scheme the undertaking, property and liabilities of the company in respect of which the compromise or arrangement is proposed are to be divided among and transferred to two or more companies each of which is either an existing company or a new company; and (iv) property includes assets, rights and interests of every description and liabilities include debts and obligations of every description. **233. Merger or amalgamation of certain companies.—(1) Notwithstanding the provisions of section** 230 and section 232, a scheme of merger or amalgamation may be entered into between two or more small companies or between a holding company and its wholly-owned subsidiary company or such other class or classes of companies as may be prescribed, subject to the following, namely:— (a) a notice of the proposed scheme inviting objections or suggestions, if any, from the Registrar and Official Liquidators where registered office of the respective companies are situated or persons affected by the scheme within thirty days is issued by the transferor company or companies and the transferee company; (b) the objections and suggestions received are considered by the companies in their respective general meetings and the scheme is approved by the respective members or class of members at a general meeting holding at least ninety per cent. of the total number of shares; (c) each of the companies involved in the merger files a declaration of solvency, in the prescribed form, with the Registrar of the place where the registered office of the company is situated; and (d) the scheme is approved by majority representing nine-tenths in value of the creditors or class of creditors of respective companies indicated in a meeting convened by the company by giving a notice of twenty-one days along with the scheme to its creditors for the purpose or otherwise approved in writing. (2) The transferee company shall file a copy of the scheme so approved in the manner as may be prescribed, with the Central Government, Registrar and the Official Liquidator where the registered office of the company is situated. (3) On the receipt of the scheme, if the Registrar or the Official Liquidator has no objections or suggestions to the scheme, the Central Government shall register the same and issue a confirmation thereof to the companies. (4) If the Registrar or Official Liquidator has any objections or suggestions, he may communicate the same in writing to the Central Government within a period of thirty days: 1. Subs. by Act 29 of 2020, s. 42, for sub-section (8) (w.e.f. 21-12-2020). 155 ----- Provided that if no such communication is made, it shall be presumed that he has no objection to the scheme. (5) If the Central Government after receiving the objections or suggestions or for any reason is of the opinion that such a scheme is not in public interest or in the interest of the creditors, it may file an application before the Tribunal within a period of sixty days of the receipt of the scheme under sub-section (2) stating its objections and requesting that the Tribunal may consider the scheme under section 232. (6) On receipt of an application from the Central Government or from any person, if the Tribunal, for reasons to be recorded in writing, is of the opinion that the scheme should be considered as per the procedure laid down in section 232, the Tribunal may direct accordingly or it may confirm the scheme by passing such order as it deems fit: Provided that if the Central Government does not have any objection to the scheme or it does not file any application under this section before the Tribunal, it shall be deemed that it has no objection to the scheme. (7) A copy of the order under sub-section (6) confirming the scheme shall be communicated to the Registrar having jurisdiction over the transferee company and the persons concerned and the Registrar shall register the scheme and issue a confirmation thereof to the companies and such confirmation shall be communicated to the Registrars where transferor company or companies were situated. (8) The registration of the scheme under sub-section (3) or sub-section (7) shall be deemed to have the effect of dissolution of the transferor company without process of winding-up. (9) The registration of the scheme shall have the following effects, namely:— (a) transfer of property or liabilities of the transferor company to the transferee company so that the property becomes the property of the transferee company and the liabilities become the liabilities of the transferee company; (b) the charges, if any, on the property of the transferor company shall be applicable and enforceable as if the charges were on the property of the transferee company; (c) legal proceedings by or against the transferor company pending before any court of law shall be continued by or against the transferee company; and (d) where the scheme provides for purchase of shares held by the dissenting shareholders or settlement of debt due to dissenting creditors, such amount, to the extent it is unpaid, shall become the liability of the transferee company. (10) A transferee company shall not on merger or amalgamation, hold any shares in its own name or in the name of any trust either on its behalf or on behalf of any of its subsidiary or associate company and all such shares shall be cancelled or extinguished on the merger or amalgamation. (11) The transferee company shall file an application with the Registrar along with the scheme registered, indicating the revised authorised capital and pay the prescribed fees due on revised capital: Provided that the fee, if any, paid by the transferor company on its authorised capital prior to its merger or amalgamation with the transferee company shall be set-off against the fees payable by the transferee company on its authorised capital enhanced by the merger or amalgamation. (12) The provisions of this section shall mutatis mutandis apply to a company or companies specified in sub-section (1) in respect of a scheme of compromise or arrangement referred to in section 230 or division or transfer of a company referred to clause (b) of sub-section (1) of section 232. (13) The Central Government may provide for the merger or amalgamation of companies in such manner as may be prescribed. (14) A company covered under this section may use the provisions of section 232 for the approval of any scheme for merger or amalgamation. **234. Merger or amalgamation of company with foreign company.—(1) The provisions of this** Chapter unless otherwise provided under any other law for the time being in force, shall apply _mutatis_ 156 ----- _mutandis_ to schemes of mergers and amalgamations between companies registered under this Act and companies incorporated in the jurisdictions of such countries as may be notified from time to time by the Central Government: Provided that the Central Government may make rules, in consultation with the Reserve Bank of India, in connection with mergers and amalgamations provided under this section. (2) Subject to the provisions of any other law for the time being in force, a foreign company, may with the prior approval of the Reserve Bank of India, merge into a company registered under this Act or _vice_ _versa_ and the terms and conditions of the scheme of merger may provide, among other things, for the payment of consideration to the shareholders of the merging company in cash, or in Depository Receipts, or partly in cash and partly in Depository Receipts, as the case may be, as per the scheme to be drawn up for the purpose. _Explanation.—For the purposes of sub-section (2), the expression “foreign company” means any_ company or body corporate incorporated outside India whether having a place of business in India or not. **235. Power to acquire shares of shareholders dissenting from scheme or contract approved by** **majority.—(1) Where a scheme or contract involving the transfer of shares or any class of shares in a** company (the transferor company) to another company (the transferee company) has, within four months after making of an offer in that behalf by the transferee company, been approved by the holders of not less than nine-tenths in value of the shares whose transfer is involved, other than shares already held at the date of the offer by, or by a nominee of the transferee company or its subsidiary companies, the transferee company may, at any time within two months after the expiry of the said four months, give notice in the prescribed manner to any dissenting shareholder that it desires to acquire his shares. (2) Where a notice under sub-section (1) is given, the transferee company shall, unless on an application made by the dissenting shareholder to the Tribunal, within one month from the date on which the notice was given and the Tribunal thinks fit to order otherwise, be entitled to and bound to acquire those shares on the terms on which, under the scheme or contract, the shares of the approving shareholders are to be transferred to the transferee company. (3) Where a notice has been given by the transferee company under sub-section (1) and the Tribunal has not, on an application made by the dissenting shareholder, made an order to the contrary, the transferee company shall, on the expiry of one month from the date on which the notice has been given, or, if an application to the Tribunal by the dissenting shareholder is then pending, after that application has been disposed of, send a copy of the notice to the transferor company together with an instrument of transfer, to be executed on behalf of the shareholder by any person appointed by the transferor company and on its own behalf by the transferee company, and pay or transfer to the transferor company the amount or other consideration representing the price payable by the transferee company for the shares which, by virtue of this section, that company is entitled to acquire, and the transferor company shall— (a) thereupon register the transferee company as the holder of those shares; and (b) within one month of the date of such registration, inform the dissenting shareholders of the fact of such registration and of the receipt of the amount or other consideration representing the price payable to them by the transferee company. (4) Any sum received by the transferor company under this section shall be paid into a separate bank account, and any such sum and any other consideration so received shall be held by that company in trust for the several persons entitled to the shares in respect of which the said sum or other consideration were respectively received and shall be disbursed to the entitled shareholders within sixty days. (5) In relation to an offer made by a transferee company to shareholders of a transferor company before the commencement of this Act, this section shall have effect with the following modifications, namely:— (a) in sub-section (1), for the words “the shares whose transfer is involved other than shares already held at the date of the offer by, or by a nominee of, the transferee company or its subsidiaries,”, the words “the shares affected” shall be substituted; and 157 ----- (b) in sub-section (3), the words “together with an instrument of transfer, to be executed on behalf of the shareholder by any person appointed by the transferee company and on its own behalf by the transferor company” shall be omitted. _Explanation.—For the purposes of this section, “dissenting shareholder” includes a shareholder who_ has not assented to the scheme or contract and any shareholder who has failed or refused to transfer his shares to the transferee company in accordance with the scheme or contract. **236. Purchase of minority shareholding.—(1) In the event of an acquirer, or a person acting in concert** with such acquirer, becoming registered holder of ninety per cent. or more of the issued equity share capital of a company, or in the event of any person or group of persons becoming ninety per cent. majority or holding ninety per cent. of the issued equity share capital of a company, by virtue of an amalgamation, share exchange, conversion of securities or for any other reason, such acquirer, person or group of persons, as the case may be, shall notify the company of their intention to buy the remaining equity shares. (2) The acquirer, person or group of persons under sub-section (1) shall offer to the minority shareholders of the company for buying the equity shares held by such shareholders at a price determined on the basis of valuation by a registered valuer in accordance with such rules as may be prescribed. (3) Without prejudice to the provisions of sub-sections (1) and (2), the minority shareholders of the company may offer to the majority shareholders to purchase the minority equity shareholding of the company at the price determined in accordance with such rules as may be prescribed under sub-section (2). (4) The majority shareholders shall deposit an amount equal to the value of shares to be acquired by them under sub-section (2) or sub-section (3), as the case may be, in a separate bank account to be operated by the [1][company whose shares are being transferred] for at least one year for payment to the minority shareholders and such amount shall be disbursed to the entitled shareholders within sixty days: Provided that such disbursement shall continue to be made to the entitled shareholders for a period of one year, who for any reason had not been made disbursement within the said period of sixty days or if the disbursement have been made within the aforesaid period of sixty days, fail to receive or claim payment arising out of such disbursement. (5) In the event of a purchase under this section, the [2][company whose shares are being transferred] shall act as a transfer agent for receiving and paying the price to the minority shareholders and for taking delivery of the shares and delivering such shares to the majority, as the case may be. (6) In the absence of a physical delivery of shares by the shareholders within the time specified by the company, the share certificates shall be deemed to be cancelled, and the [1][company whose shares are being transferred] shall be authorised to issue shares in lieu of the cancelled shares and complete the transfer in accordance with law and make payment of the price out of deposit made under sub-section (4) by the majority in advance to the minority by dispatch of such payment. (7) In the event of a majority shareholder or shareholders requiring a full purchase and making payment of price by deposit with the company for any shareholder or shareholders who have died or ceased to exist, or whose heirs, successors, administrators or assignees have not been brought on record by transmission, the right of such shareholders to make an offer for sale of minority equity shareholding shall continue and be available for a period of three years from the date of majority acquisition or majority shareholding. (8) Where the shares of minority shareholders have been acquired in pursuance of this section and as on or prior to the date of transfer following such acquisition, the shareholders holding seventy-five per cent. or more minority equity shareholding negotiate or reach an understanding on a higher price for any transfer, proposed or agreed upon, of the shares held by them without disclosing the fact or likelihood of transfer taking place on the basis of such negotiation, understanding or agreement, the majority shareholders shall share the additional compensation so received by them with such minority shareholders on a pro rata basis. 1. Subs. by Act 1 of 2018, s. 73, for “transferor company” (w.e.f. 9-2-2018). 2. Subs. by Act 1 of 2018, s. 73, for “transferor company” (w.e.f. 9-2-2018). 158 ----- _Explanation.—For the purposes of this section, the expressions “acquirer” and “person acting in_ concert” shall have the meanings respectively assigned to them in clause (b) and clause (e) of subregulation (1) of regulation 2 of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997. (9) When a shareholder or the majority equity shareholder fails to acquire full purchase of the shares of the minority equity shareholders, then, the provisions of this section shall continue to apply to the residual minority equity shareholders, even though,— (a) the shares of the company of the residual minority equity shareholder had been delisted; and (b) the period of one year or the period specified in the regulations made by the Securities and Exchange Board under the Securities and Exchange Board of India Act, 1992 (15 of 1992), had elapsed. **237. Power of Central Government to provide for amalgamation of companies in public** **interest.—(1) Where the Central Government is satisfied that it is essential in the public interest that two** or more companies should amalgamate, the Central Government may, by order notified in the Official Gazette, provide for the amalgamation of those companies into a single company with such constitution, with such property, powers, rights, interests, authorities and privileges, and with such liabilities, duties and obligations, as may be specified in the order. (2) The order under sub-section (1) may also provide for the continuation by or against the transferee company of any legal proceedings pending by or against any transferor company and such consequential, incidental and supplemental provisions as may, in the opinion of the Central Government, be necessary to give effect to the amalgamation. (3) Every member or creditor, including a debenture holder, of each of the transferor companies before the amalgamation shall have, as nearly as may be, the same interest in or rights against the transferee company as he had in the company of which he was originally a member or creditor, and in case the interest or rights of such member or creditor in or against the transferee company are less than his interest in or rights against the original company, he shall be entitled to compensation to that extent, which shall be assessed by such authority as may be prescribed and every such assessment shall be published in the Official Gazette, and the compensation so assessed shall be paid to the member or creditor concerned by the transferee company. (4) Any person aggrieved by any assessment of compensation made by the prescribed authority under sub-section (3) may, within a period of thirty days from the date of publication of such assessment in the Official Gazette, prefer an appeal to the Tribunal and thereupon the assessment of the compensation shall be made by the Tribunal. (5) No order shall be made under this section unless— (a) a copy of the proposed order has been sent in draft to each of the companies concerned; (b) the time for preferring an appeal under sub-section (4) has expired, or where any such appeal has been preferred, the appeal has been finally disposed off; and (c) the Central Government has considered, and made such modifications, if any, in the draft order as it may deem fit in the light of suggestions and objections which may be received by it from any such company within such period as the Central Government may fix in that behalf, not being less than two months from the date on which the copy aforesaid is received by that company, or from any class of shareholders therein, or from any creditors or any class of creditors thereof. (6) The copies of every order made under this section shall, as soon as may be after it has been made, be laid before each House of Parliament. **238. Registration of offer of schemes involving transfer of shares.—(1) In relation to every offer of** a scheme or contract involving the transfer of shares or any class of shares in the transferor company to the transferee company under section 235,— 159 ----- (a) every circular containing such offer and recommendation to the members of the transferor company by its directors to accept such offer shall be accompanied by such information and in such manner as may be prescribed; (b) every such offer shall contain a statement by or on behalf of the transferee company, disclosing the steps it has taken to ensure that necessary cash will be available; and (c) every such circular shall be presented to the Registrar for registration and no such circular shall be issued until it is so registered: Provided that the Registrar may refuse, for reasons to be recorded in writing, to register any such circular which does not contain the information required to be given under clause (a) or which sets out such information in a manner likely to give a false impression, and communicate such refusal to the parties within thirty days of the application. (2) An appeal shall lie to the Tribunal against an order of the Registrar refusing to register any circular under sub-section (1). (3) The director who issues a circular which has not been presented for registration and registered under clause (c) of sub-section (1), shall be [1][liable to a penalty of one lakh rupees.] **239. Preservation of books and papers of amalgamated companies.—The books and papers of a** company which has been amalgamated with, or whose shares have been acquired by, another company under this Chapter shall not be disposed of without the prior permission of the Central Government and before granting such permission, that Government may appoint a person to examine the books and papers or any of them for the purpose of ascertaining whether they contain any evidence of the commission of an offence in connection with the promotion or formation, or the management of the affairs, of the transferor company or its amalgamation or the acquisition of its shares. **240. Liability of officers in respect of offences committed prior to merger, amalgamation, etc.—** Notwithstanding anything in any other law for the time being in force, the liability in respect of offences committed under this Act by the officers in default, of the transferor company prior to its merger, amalgamation or acquisition shall continue after such merger, amalgamation or acquisition. CHAPTER XVI PREVENTION OF OPPRESSION AND MISMANAGEMENT **241. Application to Tribunal for relief in cases of oppression, etc.—(1) Any member of a company** who complains that— (a) the affairs of the company have been or are being conducted in a manner prejudicial to public interest or in a manner prejudicial or oppressive to him or any other member or members or in a manner prejudicial to the interests of the company; or (b) the material change, not being a change brought about by, or in the interests of, any creditors, including debenture holders or any class of shareholders of the company, has taken place in the management or control of the company, whether by an alteration in the Board of Directors, or manager, or in the ownership of the company’s shares, or if it has no share capital, in its membership, or in any other manner whatsoever, and that by reason of such change, it is likely that the affairs of the company will be conducted in a manner prejudicial to its interests or its members or any class of members, may apply to the Tribunal, provided such member has a right to apply under section 244, for an order under this Chapter. (2) The Central Government, if it is of the opinion that the affairs of the company are being conducted in a manner prejudicial to public interest, it may itself apply to the Tribunal for an order under this Chapter. 1. Subs. by Act 22 of 2019, s. 32, for “punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees” (w.e.f. 2-11-2018). 160 ----- 1[Provided that the applicants under this sub-section, in respect of such company or class of companies, as may be prescribed, shall be made before the Principal Bench of the Tribunal which shall be dealt with by such Bench.] 1[(3) Where in the opinion of the Central Government there exist circumstances suggesting that— (a) any person concerned in the conduct and management of the affairs of a company is or has been in connection therewith guilty of fraud, misfeasance, persistent negligence or default in carrying out his obligations and functions under the law or of breach of trust; (b) the business of a company is not or has not been conducted and managed by such person in accordance with sound business principle or prudent commercial practices; (c) a company is or has been conducted and managed by such person in a manner which likely to cause, or has caused, serious injury or damage to the interest of the trade, industry or business to which such company pertains; or (d) the business of a company is or has been conducted and managed by such person with intent to default its creditors, members or any other person or otherwise for a fraudulent or unlawful purpose or in a manner prejudicial to public interest, the Central Government may intiate a case against such person and refer the same to the Tribunal with a request that the Tribunal may inquire into the case and record a decision as to whether or not such person is a fit and proper person to hold the officer of director or any other office connected with the conduct and management of any company. (4) The person against whom a case is referred to the Tribunal under sub-section (3), shall be jointed as a respondent to the application. (5) Every application under sub-section (3)— (a) shall contain a concise statement of such circumstances and materials as the Central Government may consider necessary for the purpose of the inquiry; and (b) shall be signed and verified in the manner laid down in the Code of Civil Procedure (5 of 1908), for the signature and verification of a plaint in a suit by the Central Government.] **242. Powers of Tribunal.—(1) If, on any application made under section 241, the Tribunal is of the** opinion— (a) that the company’s affairs have been or are being conducted in a manner prejudicial or oppressive to any member or members or prejudicial to public interest or in a manner prejudicial to the interests of the company; and (b) that to wind up the company would unfairly prejudice such member or members, but that otherwise the facts would justify the making of a winding-up order on the ground that it was just and equitable that the company should be wound up, the Tribunal may, with a view to bringing to an end the matters complained of, make such order as it thinks fit. (2) Without prejudice to the generality of the powers under sub-section (1), an order under that sub section may provide for— (a) the regulation of conduct of affairs of the company in future; (b) the purchase of shares or interests of any members of the company by other members thereof or by the company; (c) in the case of a purchase of its shares by the company as aforesaid, the consequent reduction of its share capital; (d) restrictions on the transfer or allotment of the shares of the company; 1. Ins. by Act 22 of 2019, s. 33 (w.e.f. 15-8-2019). 161 ----- (e) the termination, setting aside or modification, of any agreement, howsoever arrived at, between the company and the managing director, any other director or manager, upon such terms and conditions as may, in the opinion of the Tribunal, be just and equitable in the circumstances of the case; (f) the termination, setting aside or modification of any agreement between the company and any person other than those referred to in clause (e): Provided that no such agreement shall be terminated, set aside or modified except after due notice and after obtaining the consent of the party concerned; (g) the setting aside of any transfer, delivery of goods, payment, execution or other act relating to property made or done by or against the company within three months before the date of the application under this section, which would, if made or done by or against an individual, be deemed in his insolvency to be a fraudulent preference; (h) removal of the managing director, manager or any of the directors of the company; (i) recovery of undue gains made by any managing director, manager or director during the period of his appointment as such and the manner of utilisation of the recovery including transfer to Investor Education and Protection Fund or repayment to identifiable victims; (j) the manner in which the managing director or manager of the company may be appointed subsequent to an order removing the existing managing director or manager of the company made under clause (h); (k) appointment of such number of persons as directors, who may be required by the Tribunal to report to the Tribunal on such matters as the Tribunal may direct; (l) imposition of costs as may be deemed fit by the Tribunal; (m) any other matter for which, in the opinion of the Tribunal, it is just and equitable that provision should be made. (3) A certified copy of the order of the Tribunal under sub-section (1) shall be filed by the company with the Registrar within thirty days of the order of the Tribunal. (4) The Tribunal may, on the application of any party to the proceeding, make any interim order which it thinks fit for regulating the conduct of the company’s affairs upon such terms and conditions as appear to it to be just and equitable. 1[(4A) At the conclusion of the hearing of the case in respect of sub-section (3) of section 241, the Tribunal shall record its decision stating therein specifically as to whether or not respondent is a fit and proper person to hold the officer of director or any other officer connected with the conduct and management of any company.] (5) Where an order of the Tribunal under sub-section (1) makes any alteration in the memorandum or articles of a company, then, notwithstanding any other provision of this Act, the company shall not have power, except to the extent, if any, permitted in the order, to make, without the leave of the Tribunal, any alteration whatsoever which is inconsistent with the order, either in the memorandum or in the articles. (6) Subject to the provisions of sub-section (1), the alterations made by the order in the memorandum or articles of a company shall, in all respects, have the same effect as if they had been duly made by the company in accordance with the provisions of this Act and the said provisions shall apply accordingly to the memorandum or articles so altered. (7) A certified copy of every order altering, or giving leave to alter, a company’s memorandum or articles, shall within thirty days after the making thereof, be filed by the company with the Registrar who shall register the same. (8) If a company contravenes the provisions of sub-section (5), the company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to twenty-five lakh rupees and every 1. Ins. by Act 22 of 2019, s. 34 (w.e.f. 15-8-2019). 162 ----- officer of the company who is in default shall be punishable [1]*** with fine which shall not be less than twenty-five thousand rupees but which may extend to [2][one lakh rupees]. **243. Consequence of termination or modification of certain agreements.—(1) Where an order made** under section 242 terminates, sets aside or modifies an agreement such as is referred to in sub-section (2) of that section,— (a) such order shall not give rise to any claims whatever against the company by any person for damages or for compensation for loss of office or in any other respect either in pursuance of the agreement or otherwise; (b) no managing director or other director or manager whose agreement is so terminated or set aside shall, for a period of five years from the date of the order terminating or setting aside the agreement, without the leave of the Tribunal, be appointed, or act, as the managing director or other director or manager of the company: Provided that the Tribunal shall not grant leave under this clause unless notice of the intention to apply for leave has been served on the Central Government and that Government has been given a reasonable opportunity of being heard in the matter. 3[(1A) The person who is not a fit and proper person pursuant to sub-section (4A) of section 242 shall not hold the officer of a director or any other officer connected with the conduct and management of the affairs of any other officer connected with the conduct and management of the affairs of any company for a period of five years from the date of the said decision: Provided that the Central Government may, with the leave of the Tribunal, permit such person to hold any such office before the expiry of the said period of five years. (1B) Notwithstanding anything contained in any other provisions of this Act, or any other law for the time being in force, or any contract, memorandum or articles, on the removal of a person from the officer of a director or any other officer connected with the conduct and management of the affairs of the company, that person shall not be entitled to, or be paid, any compensation for the loss or termination of officer.] (2) Any person who knowingly acts as a managing director or other director or manager of a company in contravention of clause (b) of sub-section (1)[ 4][or sub-section (1A)], and every other director of the company who is knowingly a party to such contravention, shall be punishable [5]*** with fine which may extend to [6][five lakh rupees]. **244. Right to apply under section 241.—(1) The following members of a company shall have the** right to apply under section 241, namely:— (a) in the case of a company having a share capital, not less than one hundred members of the company or not less than one-tenth of the total number of its members, whichever is less, or any member or members holding not less than one-tenth of the issued share capital of the company, subject to the condition that the applicant or applicants has or have paid all calls and other sums due on his or their shares; (b) in the case of a company not having a share capital, not less than one-fifth of the total number of its members: Provided that the Tribunal may, on an application made to it in this behalf, waive all or any of the requirements specified in clause (a) or clause (b) so as to enable the members to apply under section 241. _Explanation.—For the purposes of this sub-section, where any share or shares are held by two or more_ persons jointly, they shall be counted only as one member. 1. The words “with imprisonment for a term which may extend to six months or” omitted by Act 29 of 2020, s. 43 (w.e.f. 21-12-2020). 2. Subs. by s. 43, ibid., for “one lakh rupees, or with both” (w.e.f. 21-12-2020). 3. Ins. by Act 22 of 2019, s. 35 (w.e.f. 15-8-2019). 4. Ins. by Act 22 of 2019, s. 35 (w.e.f. 15-8-2019). 5. The words “with imprisonment for a term which may extend to six months or” omitted by Act 29 of 2020, s. 44 (w.e.f. 21-12-2020). 6. Subs. by s. 44, ibid., for “five lakh rupees, or with both” (w.e.f. 21-12-2020). 163 ----- (2) Where any members of a company are entitled to make an application under sub-section (1), any one or more of them having obtained the consent in writing of the rest, may make the application on behalf and for the benefit of all of them. **245. Class action.—(1) Such number of member or members, depositor or depositors or any class of** them, as the case may be, as are indicated in sub-section (2) may, if they are of the opinion that the management or conduct of the affairs of the company are being conducted in a manner prejudicial to the interests of the company or its members or depositors, file an application before the Tribunal on behalf of the members or depositors for seeking all or any of the following orders, namely:— (a) to restrain the company from committing an act which is ultra vires the articles or memorandum of the company; (b) to restrain the company from committing breach of any provision of the company’s memorandum or articles; (c) to declare a resolution altering the memorandum or articles of the company as void if the resolution was passed by suppression of material facts or obtained by mis-statement to the members or depositors; (d) to restrain the company and its directors from acting on such resolution; (e) to restrain the company from doing an act which is contrary to the provisions of this Act or any other law for the time being in force; (f) to restrain the company from taking action contrary to any resolution passed by the members; (g) to claim damages or compensation or demand any other suitable action from or against— (i) the company or its directors for any fraudulent, unlawful or wrongful act or omission or conduct or any likely act or omission or conduct on its or their part; (ii) the auditor including audit firm of the company for any improper or misleading statement of particulars made in his audit report or for any fraudulent, unlawful or wrongful act or conduct; or (iii) any expert or advisor or consultant or any other person for any incorrect or misleading statement made to the company or for any fraudulent, unlawful or wrongful act or conduct or any likely act or conduct on his part; (h) to seek any other remedy as the Tribunal may deem fit. (2) Where the members or depositors seek any damages or compensation or demand any other suitable action from or against an audit firm, the liability shall be of the firm as well as of each partner who was involved in making any improper or misleading statement of particulars in the audit report or who acted in a fraudulent, unlawful or wrongful manner. (3) (i) The requisite number of members provided in sub-section (1) shall be as under:— (a) in the case of a company having a share capital, not less than one hundred members of the company or not less than such percentage of the total number of its members as may be prescribed, whichever is less, or any member or members holding not less than such percentage of the issued share capital of the company as may be prescribed, subject to the condition that the applicant or applicants has or have paid all calls and other sums due on his or their shares; (b) in the case of a company not having a share capital, not less than one-fifth of the total number of its members. (ii) The requisite number of depositors provided in sub-section (1) shall not be less than one hundred depositors or not less than such percentage of the total number of depositors as may be prescribed, whichever is less, or any depositor or depositors to whom the company owes such percentage of total deposits of the company as may be prescribed. 164 ----- (4) In considering an application under sub-section (1), the Tribunal shall take into account, in particular— (a) whether the member or depositor is acting in good faith in making the application for seeking an order; (b) any evidence before it as to the involvement of any person other than directors or officers of the company on any of the matters provided in clauses (a) to (f) of sub-section (1); (c) whether the cause of action is one which the member or depositor could pursue in his own right rather than through an order under this section; (d) any evidence before it as to the views of the members or depositors of the company who have no personal interest, direct or indirect, in the matter being proceeded under this section; (e) where the cause of action is an act or omission that is yet to occur, whether the act or omission could be, and in the circumstances would be likely to be— (i) authorised by the company before it occurs; or (ii) ratified by the company after it occurs; (f) where the cause of action is an act or omission that has already occurred, whether the act or omission could be, and in the circumstances would be likely to be, ratified by the company. (5) If an application filed under sub-section (1) is admitted, then the Tribunal shall have regard to the following, namely:— (a) public notice shall be served on admission of the application to all the members or depositors of the class in such manner as may be prescribed; (b) all similar applications prevalent in any jurisdiction should be consolidated into a single application and the class members or depositors should be allowed to choose the lead applicant and in the event the members or depositors of the class are unable to come to a consensus, the Tribunal shall have the power to appoint a lead applicant, who shall be in charge of the proceedings from the applicant’s side; (c) two class action applications for the same cause of action shall not be allowed; (d) the cost or expenses connected with the application for class action shall be defrayed by the company or any other person responsible for any oppressive act. (6) Any order passed by the Tribunal shall be binding on the company and all its members, depositors and auditor including audit firm or expert or consultant or advisor or any other person associated with the company. (7) Any company which fails to comply with an order passed by the Tribunal under this section shall be punishable with fine which shall not be less than five lakh rupees but which may extend to twenty-five lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to three years and with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees. (8) Where any application filed before the Tribunal is found to be frivolous or vexatious, it shall, for reasons to be recorded in writing, reject the application and make an order that the applicant shall pay to the opposite party such cost, not exceeding one lakh rupees, as may be specified in the order. (9) Nothing contained in this section shall apply to a banking company. (10) Subject to the compliance of this section, an application may be filed or any other action may be taken under this section by any person, group of persons or any association of persons representing the persons affected by any act or omission, specified in sub-section (1). **246. Application of certain provisions to proceedings under section 241 or section 245.—The** provisions of sections 337 to 341 (both inclusive) shall apply mutatis mutandis, in relation to an application made to the Tribunal under section 241 or section 245. 165 ----- CHAPTER XVII REGISTERED VALUERS **247. Valuation by registered valuers.—(1) Where a valuation is required to be made in respect of any** property, stocks, shares, debentures, securities or goodwill or any other assets (herein referred to as the assets) or net worth of a company or its liabilities under the provision of this Act, it shall be valued by [1][a person having such qualifications and experience, registered as a valuer and being a member of an organisation recognised, in such manner, on such terms and conditions as may be prescribed] and appointed by the audit committee or in its absence by the Board of Directors of that company. (2) The valuer appointed under sub-section (1) shall,— (a) make an impartial, true and fair valuation of any assets which may be required to be valued; (b) exercise due diligence while performing the functions as valuer; (c) make the valuation in accordance with such rules as may be prescribed; and (d) not undertake valuation of any assets in which he has a direct or indirect interest or becomes so interested at any time [2][during a period of three years prior to his appointments as valuer or three years after the valuation of assets was conducted by him]. (3) If a valuer contravenes the provisions of this section or the rules made thereunder, the valuer shall be [3][liable to a penalty of fifty thousand rupees]: Provided that if the valuer has contravened such provisions with the intention to defraud the company or its members, he shall be punishable with imprisonment for a term which may extend to one year and with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees. (4) Where a valuer has been convicted under sub-section (3), he shall be liable to— (i) refund the remuneration received by him to the company; and (ii) pay for damages to the company or to any other person for loss arising out of incorrect or misleading statements of particulars made in his report. CHAPTER XVIII REMOVAL OF NAMES OF COMPANIES FROM THE REGISTER OF COMPANIES **248. Power of Registrar to remove name of company from register of companies.—(1) Where the** Registrar has reasonable cause to believe that— (a) a company has failed to commence its business within one year of its incorporation;[4][or] 5* - - - (c) a company is not carrying on any business or operation for a period of two immediately preceding financial years and has not made any application within such period for obtaining the status of a dormant company under [6][section 455; or] 7[(d) the subscribers to the memorandum have not paid the subscription which they had undertaken to pay at the time of incorporation of a company and a declaration to this effect has not been filed within one hundred and eighty days of its incorporation under sub-section (1) of section 10A; or (e) the company is not carrying on any business or operations, as revealed after the physical verification carried out under sub-section (9) of section 12.] he shall send a notice to the company and all the directors of the company, of his intention to remove the name of the company from the register of companies and requesting them to send their representations along with copies of the relevant documents, if any, within a period of thirty days from the date of the notice. 1. Subs. by Notification No. S.O. 3400(E), s. 2 for certain words (w.e.f. 23-10-2017). 2. Subs. by Act 1 of 2018, s. 74, for “during or after the valuation of assets” (w.e.f. 9-2-2018). 3. Subs. by vide Notification No. S.O. 1303(E), for certain words (w.e.f. 24-3-2021). 4. Ins. by Act 21 of 2015, s. 19 (w.e.f. 29-5-2015). 5. Clause (b) omitted by s. 19, ibid. (w.e.f. 29-5-2015). 6. Subs. by Act 22 of 2019, s. 36, for “section 455,” (w.e.f. 2-11-2018). 7. Ins. by s. 36, ibid. (w.e.f. 2-11-2018). 166 ----- (2) Without prejudice to the provisions of sub-section (1), a company may, after extinguishing all its liabilities, by a special resolution or consent of seventy-five per cent. members in terms of paid-up share capital, file an application in the prescribed manner to the Registrar for removing the name of the company from the register of companies on all or any of the grounds specified in sub-section (1) and the Registrar shall, on receipt of such application, cause a public notice to be issued in the prescribed manner: Provided that in the case of a company regulated under a special Act, approval of the regulatory body constituted or established under that Act shall also be obtained and enclosed with the application. (3) Nothing in sub-section (2) shall apply to a company registered under section 8. (4) A notice issued under sub-section (1) or sub-section (2) shall be published in the prescribed manner and also in the Official Gazette for the information of the general public. (5) At the expiry of the time mentioned in the notice, the Registrar may, unless cause to the contrary is shown by the company, strike off its name from the register of companies, and shall publish notice thereof in the Official Gazette, and on the publication in the Official Gazette of this notice, the company shall stand dissolved. (6) The Registrar, before passing an order under sub-section (5), shall satisfy himself that sufficient provision has been made for the realisation of all amount due to the company and for the payment or discharge of its liabilities and obligations by the company within a reasonable time and, if necessary, obtain necessary undertakings from the managing director, director or other persons in charge of the management of the company: Provided that notwithstanding the undertakings referred to in this sub-section, the assets of the company shall be made available for the payment or discharge of all its liabilities and obligations even after the date of the order removing the name of the company from the register of companies. (7) The liability, if any, of every director, manager or other officer who was exercising any power of management, and of every member of the company dissolved under sub-section (5), shall continue and may be enforced as if the company had not been dissolved. (8) Nothing in this section shall affect the power of the Tribunal to wind up a company the name of which has been struck off from the register of companies. **249. Restrictions on making application under section 248 in certain situations.—(1) An** application under sub-section (2) of section 248 on behalf of a company shall not be made if, at any time in the previous three months, the company— (a) has changed its name or shifted its registered office from one State to another; (b) has made a disposal for value of property or rights held by it, immediately before cesser of trade or otherwise carrying on of business, for the purpose of disposal for gain in the normal course of trading or otherwise carrying on of business; (c) has engaged in any other activity except the one which is necessary or expedient for the purpose of making an application under that section, or deciding whether to do so or concluding the affairs of the company, or complying with any statutory requirement; (d) has made an application to the Tribunal for the sanctioning of a compromise or arrangement and the matter has not been finally concluded; or 1[(e) is being wound up under Chapter XX of this Act or under the Insolvency and Bankruptcy Code, 2016 (31 of 2016).] (2) If a company files an application under sub-section (2) of section 248 in violation of sub-section (1), it shall be punishable with fine which may extend to one lakh rupees. (3) An application filed under sub-section (2) of section 248 shall be withdrawn by the company or rejected by the Registrar as soon as conditions under sub-section (1) are brought to his notice. 1. Subs. by Act 31 of 2016, s. 255 and the Eleventh Schedule, for clause (e) (w.e.f. 15-11-2016). 167 ----- **250. Effect of company notified as dissolved.—Where a company stands dissolved under section 248,** it shall on and from the date mentioned in the notice under sub-section (5) of that section cease to operate as a company and the Certificate of Incorporation issued to it shall be deemed to have been cancelled from such date except for the purpose of realising the amount due to the company and for the payment or discharge of the liabilities or obligations of the company. **251. Fraudulent application for removal of name.—(1) Where it is found that an application by a** company under sub-section (2) of section 248 has been made with the object of evading the liabilities of the company or with the intention to deceive the creditors or to defraud any other persons, the persons in charge of the management of the company shall, notwithstanding that the company has been notified as dissolved— (a) be jointly and severally liable to any person or persons who had incurred loss or damage as a result of the company being notified as dissolved; and (b) be punishable for fraud in the manner as provided in section 447. (2) Without prejudice to the provisions contained in sub-section (1), the Registrar may also recommend prosecution of the persons responsible for the filing of an application under sub-section (2) of section 248. **252. Appeal to Tribunal.—(1) Any person aggrieved by an order of the Registrar, notifying a company** as dissolved under section 248, may file an appeal to the Tribunal within a period of three years from the date of the order of the Registrar and if the Tribunal is of the opinion that the removal of the name of the company from the register of companies is not justified in view of the absence of any of the grounds on which the order was passed by the Registrar, it may order restoration of the name of the company in the register of companies: Provided that before passing any order under this section, the Tribunal shall give a reasonable opportunity of making representations and of being heard to the Registrar, the company and all the persons concerned: Provided further that if the Registrar is satisfied, that the name of the company has been struck off from the register of companies either inadvertently or on the basis of incorrect information furnished by the company or its directors, which requires restoration in the register of companies, he may within a period of three years from the date of passing of the order dissolving the company under section 248, file an application before the Tribunal seeking restoration of name of such company. (2) A copy of the order passed by the Tribunal shall be filed by the company with the Registrar within thirty days from the date of the order and on receipt of the order, the Registrar shall cause the name of the company to be restored in the register of companies and shall issue a fresh certificate of incorporation. (3) If a company, or any member or creditor or workman thereof feels aggrieved by the company having its name struck off from the register of companies, the Tribunal on an application made by the company, member, creditor or workman before the expiry of twenty years from the publication in the Official Gazette of the notice under sub-section (5) of section 248 may, if satisfied that the company was, at the time of its name being struck off, carrying on business or in operation or otherwise it is just that the name of the company be restored to the register of companies, order the name of the company to be restored to the register of companies, and the Tribunal may, by the order, give such other directions and make such provisions as deemed just for placing the company and all other persons in the same position as nearly as may be as if the name of the company had not been struck off from the register of companies. CHAPTER XIX REVIVAL AND REHABILITATION OF SICK COMPANIES **253. [Determination of sickness.] Omitted by the Insolvency and Bankruptcy Code, 2016 (31 of 2016),** _s. 255 and the Eleventh Schedule (w.e.f. 15-11-2016)._ **254. [Application for revival and rehabilitation.] Omitted by s. 255 and the Eleventh Schedule, ibid.** (w.e.f. 15-11-2016). **255. [Exclusion of certain time in computing period of limitation.] Omitted by s. 255 and the Eleventh** _Schedule, ibid. (w.e.f. 15-11-2016)._ 168 ----- **256.** [Appointment of interim administrator.]Omitted by s. 255 and the Eleventh Schedule, ibid. (w.e.f. 15-11-2016). **257. [Committee of creditors.] Omitted by s. 255 and the Eleventh Schedule, ibid. (w.e.f. 15-11-2016).** **258. [Order of Tribunal.]Omitted by s. 255 and the Eleventh Schedule, ibid. (w.e.f. 15-11-2016).** **259. [Appointment of administrator.]Omitted by s. 255 and the Eleventh Schedule, ibid. (w.e.f.** 15-11-2016). **260. [Powers and duties of company administrator.] Omitted by s. 255 and the Eleventh Schedule, ibid.** (w.e.f. 15-11-2016). **261.** [Scheme of revival and rehabilitation.] _Omitted by s._ 255 and the Eleventh Schedule, ibid. (w.e.f. 15-11-2016). **262. [Sanction of scheme.] Omitted by s. 255 and the Eleventh Schedule, ibid. (w.e.f. 15-11-2016).** **263. [Scheme to be binding.] Omitted by s. 255 and the Eleventh Schedule, ibid. (w.e.f. 15-11-2016).** **264. [Implementation of scheme.] Omitted by s. 255 and the Eleventh Schedule, ibid. (w.e.f.** 15-11-2016). **265. [Winding up of company on report of company administrator.] Omitted by s. 255 and the Eleventh** _Schedule, ibid.(w.e.f. 15-11-2016)._ **266. [Power of Tribunal to assess damages against delinquent directors, etc.] Omitted by the Insolvency** _and Bankruptcy Code, 2016 (31 of 2016), s. 255 and the Eleventh Schedule (w.e.f. 15-11-2016)._ **267.[Punishment for certain offences.] Omitted by s. 255 and the Eleventh Schedule, ibid. (w.e.f.** 15-11-2016). **268. [Bar of jurisdiction.] Omitted by s. 255 and the Eleventh Schedule, ibid.(w.e.f. 15-11-2016).** **269.[Rehabilitation and insolvency fund.]** _Omitted by s._ 255 and the Eleventh Schedule, ibid. (w.e.f. 15-11-2016). CHAPTER XX WINDING UP **1[270.Winding up by Tribunal.—The provisions of Part I shall apply to the winding up of a company** by the Tribunal under this Act.] PART I.—Winding up by the Tribunal **2[271. Circumstances in which company may be wound up by Tribunal.—A company may, on a** petition under section 272, be wound up by the Tribunal,— (a) if the company has, by special resolution, resolved that the company be wound up by the Tribunal; (b) if the company has acted against the interests of the sovereignty and integrity of India, the security of the State, friendly relations with foreign States, public order, decency or morality; (c) if on an application made by the Registrar or any other person authorised by the Central Government by notification under this Act, the Tribunal is of the opinion that the affairs of the company have been conducted in a fraudulent manner or the company was formed for fraudulent and unlawful purpose or the persons concerned in the formation or management of its affairs have been guilty of fraud, misfeasance or misconduct in connection therewith and that it is proper that the company be wound up; (d) if the company has made a default in filing with the Registrar its financial statements or annual returns for immediately preceding five consecutive financial years; or 1. Subs. by Act 31 of 2016, s. 255 and the Eleventh Schedule, for section 270 (w.e.f. 15-11-2016). 2. Subs. by s. 255 and the Eleventh Schedule, ibid., for section 271 (w.e.f. 15-11-2016). 169 ----- (e) if the Tribunal is of the opinion that it is just and equitable that the company should be wound up.] 1[272. Petition for winding up.—(1) Subject to the provisions of this section, a petition to the Tribunal for the winding up of a company shall be presented by— (a) the company; (b) any contributory or contributories; (c) all or any of the persons specified in clauses (a) and (b); (d) the Registrar; (e) any person authorised by the Central Government in that behalf; or (f) in a case falling under clause (b) of section 271, by the Central Government or a State Government. (2) A contributory shall be entitled to present a petition for the winding up of a company, notwithstanding that he may be the holder of fully paid-up shares, or that the company may have no assets at all or may have no surplus assets left for distribution among the shareholders after the satisfaction of its liabilities, and shares in respect of which he is a contributory or some of them were either originally allotted to him or have been held by him, and registered in his name, for at least six months during the eighteen months immediately before the commencement of the winding up or have devolved on him through the death of a former holder. (3) The Registrar shall be entitled to present a petition for winding up under section 271, except on the grounds specified in clause (a) [2][of that section]: Provided that the Registrar shall obtain the previous sanction of the Central Government to the presentation of a petition: Provided further that the Central Government shall not accord its sanction unless the company has been given a reasonable opportunity of making representations. (4) A petition presented by the company for winding up before the Tribunal shall be admitted only if accompanied by a statement of affairs in such form and in such manner as may be prescribed. (5) A copy of the petition made under this section shall also be filed with the Registrar and the Registrar shall, without prejudice to any other provisions, submit his views to the Tribunal within sixty days of receipt of such petition.] **273. Powers of Tribunal.—(1) The Tribunal may, on receipt of a petition for winding up under section** 272 pass any of the following orders, namely:— (a) dismiss it, with or without costs; (b) make any interim order as it thinks fit; (c) appoint a provisional liquidator of the company till the making of a winding up order; (d) make an order for the winding up of the company with or without costs; or (e) any other order as it thinks fit: Provided that an order under this sub-section shall be made within ninety days from the date of presentation of the petition: 1. Subs. by Act 31 of 2016, s. 255 and the Eleventh Schedule, for section 272 (w.e.f. 15-11-2016). 2. Subs. by Act 22 of 2019, s. 37, for “or clause (e) of that sub-section” (w.e.f. 15-8-2019). 170 ----- Provided further that before appointing a provisional liquidator under clause (c), the Tribunal shall give notice to the company and afford a reasonable opportunity to it to make its representations, if any, unless for special reasons to be recorded in writing, the Tribunal thinks fit to dispense with such notice: Provided also that the Tribunal shall not refuse to make a winding up order on the ground only that the assets of the company have been mortgaged for an amount equal to or in excess of those assets, or that the company has no assets. (2) Where a petition is presented on the ground that it is just and equitable that the company should be wound up, the Tribunal may refuse to make an order of winding up, if it is of the opinion that some other remedy is available to the petitioners and that they are acting unreasonably in seeking to have the company wound up instead of pursuing the other remedy. **274. Directions for filing statement of affairs.—(1) Where a petition for winding up is filed before** the Tribunal by any person other than the company, the Tribunal shall, if satisfied that a prima facie case for winding up of the company is made out, by an order direct the company to file its objections along with a statement of its affairs within thirty days of the order in such form and in such manner as may be prescribed: Provided that the Tribunal may allow a further period of thirty days in a situation of contingency or special circumstances: Provided further that the Tribunal may direct the petitioner to deposit such security for costs as it may consider reasonable as a precondition to issue directions to the company. (2) A company, which fails to file the statement of affairs as referred to in sub-section (1), shall forfeit the right to oppose the petition and such directors and officers of the company as found responsible for such non-compliance, shall be liable for punishment under sub-section (4). (3) The directors and other officers of the company, in respect of which an order for winding up is passed by the Tribunal under clause (d) of sub-section (1) of section 273, shall, within a period of thirty days of such order, submit, at the cost of the company, the books of account of the company completed and audited up to the date of the order, to such liquidator and in the manner specified by the Tribunal. (4) If any director or officer of the company contravenes the provisions of this section, the director or the officer of the company who is in default shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees, or with both. (5) The complaint may be filed in this behalf before the Special Court by Registrar, provisional liquidator, Company Liquidator or any person authorised by the Tribunal. **275. Company Liquidators and their appointments.—(1) For the purposes of winding up of a** company by the Tribunal, the Tribunal at the time of the passing of the order of winding up, shall appoint an Official Liquidator or a liquidator from the panel maintained under sub-section (2) as the Company Liquidator. 1[(2) The provisional liquidator or the Company Liquidator, as the case may, shall be appointed by the Tribunal from amongst the insolvency professionals registered under the Insolvency and Bankruptcy Code, 2016 (31 of 2016);] (3) Where a provisional liquidator is appointed by the Tribunal, the Tribunal may limit and restrict his powers by the order appointing him or it or by a subsequent order, but otherwise he shall have the same powers as a liquidator. 2* - - - 1. Subs. by Act 31 of 2016, s. 255 and the Eleventh Schedule, for sub-section (2) (w.e.f. 15-11-2016). 2. Sub-section (4) omitted by s. 255 and the Eleventh Schedule, ibid. (w.e.f. 15-11-2016). 171 ----- (5) The terms and conditions of appointment of a provisional liquidator or Company Liquidator and the fee payable to him or it shall be specified by the Tribunal on the basis of task required to be performed, experience, qualification of such liquidator and size of the company. (6) On appointment as provisional liquidator or Company Liquidator, as the case may be, such liquidator shall file a declaration within seven days from the date of appointment in the prescribed form disclosing conflict of interest or lack of independence in respect of his appointment, if any, with the Tribunal and such obligation shall continue throughout the term of his appointment. (7) While passing a winding up order, the Tribunal may appoint a provisional liquidator, if any, appointed under clause (c) of sub-section (1) of section 273, as the Company Liquidator for the conduct of the proceedings for the winding up of the company. **276. Removal and replacement of liquidator.—(1) The Tribunal may, on a reasonable cause being** shown and for reasons to be recorded in writing, remove the provisional liquidator or the Company Liquidator, as the case may be, as liquidator of the company on any of the following grounds, namely:— (a) misconduct; (b) fraud or misfeasance; (c) professional incompetence or failure to exercise due care and diligence in performance of the powers and functions; (d) inability to act as provisional liquidator or as the case may be, Company Liquidator; (e) conflict of interest or lack of independence during the term of his appointment that would justify removal. (2) In the event of death, resignation or removal of the provisional liquidator or as the case may be, Company Liquidator, the Tribunal may transfer the work assigned to him or it to another Company Liquidator for reasons to be recorded in writing. (3) Where the Tribunal is of the opinion that any liquidator is responsible for causing any loss or damage to the company due to fraud or misfeasance or failure to exercise due care and diligence in the performance of his or its powers and functions, the Tribunal may recover or cause to be recovered such loss or damage from the liquidator and pass such other orders as it may think fit. (4) The Tribunal shall, before passing any order under this section, provide a reasonable opportunity of being heard to the provisional liquidator or, as the case may be, Company Liquidator. **277. Intimation to Company Liquidator, provisional liquidator and Registrar.—(1) Where the** Tribunal makes an order for appointment of provisional liquidator or for the winding up of a company, it shall, within a period not exceeding seven days from the date of passing of the order, cause intimation thereof to be sent to the Company Liquidator or provisional liquidator, as the case may be, and the Registrar. (2) On receipt of the copy of order of appointment of provisional liquidator or winding up order, the Registrar shall make an endorsement to that effect in his records relating to the company and notify in the Official Gazette that such an order has been made and in the case of a listed company, the Registrar shall intimate about such appointment or order, as the case may be, to the stock exchange or exchanges where the securities of the company are listed. (3) The winding up order shall be deemed to be a notice of discharge to the officers, employees and workmen of the company, except when the business of the company is continued. (4) Within three weeks from the date of passing of winding up order, the Company Liquidator shall make an application to the Tribunal for constitution of a winding up committee to assist and monitor the progress of liquidation proceedings by the Company Liquidator in carrying out the function as provided in sub-section (5) and such winding up committee shall comprise of the following persons, namely:— (i) Official Liquidator attached to the Tribunal; (ii) nominee of secured creditors; and 172 ----- (iii) a professional nominated by the Tribunal. (5) The Company Liquidator shall be the convener of the meetings of the winding up committee which shall assist and monitor the liquidation proceedings in following areas of liquidation functions, namely:— (i) taking over assets; (ii) examination of the statement of affairs; (iii) recovery of property, cash or any other assets of the company including benefits derived therefrom; (iv) review of audit reports and accounts of the company; (v) sale of assets; (vi) finalisation of list of creditors and contributories; (vii) compromise, abandonment and settlement of claims; (viii) payment of dividends, if any; and (ix) any other function, as the Tribunal may direct from time to time. (6) The Company Liquidator shall place before the Tribunal a report along with minutes of the meetings of the committee on monthly basis duly signed by the members present in the meeting for consideration till the final report for dissolution of the company is submitted before the Tribunal. (7) The Company Liquidator shall prepare the draft final report for consideration and approval of the winding up committee. (8) The final report so approved by the winding up committee shall be submitted by the Company Liquidator before the Tribunal for passing of a dissolution order in respect of the company. **278. Effect of winding up order.—The order for the winding up of a company shall operate in favour** of all the creditors and all contributories of the company as if it had been made out on the joint petition of creditors and contributories. **279. Stay of suits, etc., on winding up order.—(1) When a winding up order has been passed or a** provisional liquidator has been appointed, no suit or other legal proceeding shall be commenced, or if pending at the date of the winding up order, shall be proceeded with, by or against the company, except with the leave of the Tribunal and subject to such terms as the Tribunal may impose: Provided that any application to the Tribunal seeking leave under this section shall be disposed of by the Tribunal within sixty days. (2) Nothing in sub-section (1) shall apply to any proceeding pending in appeal before the Supreme Court or a High Court. **1[280. Jurisdiction of Tribunal.—The Tribunal shall, notwithstanding anything contained in any other** law for the time being in force, have jurisdiction to entertain, or dispose of,— (a) any suit or proceeding by or against the company; (b) any claim made by or against the company, including claims by or against any of its branches in India; (c) any application made under section 233; (d) any question of priorities or any other question whatsoever, whether of law or facts, including those relating to assets, business, actions, rights, entitlements, privileges, benefits, duties, responsibilities, obligations or in any matter arising out of, or in relation to winding up of the company, whether such suit or proceeding has been instituted, or is instituted, or such claim or question has arisen or arises or such application has been made or is made or such scheme has been submitted, or is submitted, before or after the order for the winding up of the company is made.] 1. Subs. by Act 31 of 2016, s. 255 and the Eleventh Schedule, for section 280 (w.e.f. 15-11-2016). 173 ----- **281. Submission of report by Company Liquidator.—(1) Where the Tribunal has made a winding** up order or appointed a Company Liquidator, such liquidator shall, within sixty days from the order, submit to the Tribunal, a report containing the following particulars, namely:— (a) the nature and details of the assets of the company including their location and value, stating separately the cash balance in hand and in the bank, if any, and the negotiable securities, if any, held by the company: Provided that the valuation of the assets shall be obtained from registered valuers for this purpose; (b) amount of capital issued, subscribed and paid-up; (c) the existing and contingent liabilities of the company including names, addresses and occupations of its creditors, stating separately the amount of secured and unsecured debts, and in the case of secured debts, particulars of the securities given, whether by the company or an officer thereof, their value and the dates on which they were given; (d) the debts due to the company and the names, addresses and occupations of the persons from whom they are due and the amount likely to be realised on account thereof; (e) guarantees, if any, extended by the company; (f) list of contributories and dues, if any, payable by them and details of any unpaid call; (g) details of trade marks and intellectual properties, if any, owned by the company; (h) details of subsisting contracts, joint ventures and collaborations, if any; (i) details of holding and subsidiary companies, if any; (j) details of legal cases filed by or against the company; and (k) any other information which the Tribunal may direct or the Company Liquidator may consider necessary to include. (2) The Company Liquidator shall include in his report the manner in which the company was promoted or formed and whether in his opinion any fraud has been committed by any person in its promotion or formation or by any officer of the company in relation to the company since the formation thereof and any other matters which, in his opinion, it is desirable to bring to the notice of the Tribunal. (3) The Company Liquidator shall also make a report on the viability of the business of the company or the steps which, in his opinion, are necessary for maximising the value of the assets of the company. (4) The Company Liquidator may also, if he thinks fit, make any further report or reports. (5) Any person describing himself in writing to be a creditor or a contributory of the company shall be entitled by himself or by his agent at all reasonable times to inspect the report submitted in accordance with this section and take copies thereof or extracts therefrom on payment of the prescribed fees. **282. Directions of Tribunal on report of Company Liquidator.—(1) The Tribunal shall, on** consideration of the report of the Company Liquidator, fix a time limit within which the entire proceedings shall be completed and the company be dissolved: Provided that the Tribunal may, if it is of the opinion, at any stage of the proceedings, or on examination of the reports submitted to it by the Company Liquidator and after hearing the Company Liquidator, creditors or contributories or any other interested person, that it will not be advantageous or economical to continue the proceedings, revise the time limit within which the entire proceedings shall be completed and the company be dissolved. (2) The Tribunal may, on examination of the reports submitted to it by the Company Liquidator and after hearing the Company Liquidator, creditors or contributories or any other interested person, order sale of the company as a going concern or its assets or part thereof: Provided that the Tribunal may, where it considers fit, appoint a sale committee comprising such creditors, promoters and officers of the company as the Tribunal may decide to assist the Company Liquidator in sale under this sub-section. 174 ----- (3) Where a report is received from the Company Liquidator or the Central Government or any person that a fraud has been committed in respect of the company, the Tribunal shall, without prejudice to the process of winding up, order for investigation under section 210, and on consideration of the report of such investigation it may pass order and give directions under sections 339 to 342 or direct the Company Liquidator to file a criminal complaint against persons who were involved in the commission of fraud. (4) The Tribunal may order for taking such steps and measures, as may be necessary, to protect, preserve or enhance the value of the assets of the company. (5) The Tribunal may pass such other order or give such other directions as it considers fit. **283. Custody of company’s properties.—(1) Where a winding up order has been made or where a** provisional liquidator has been appointed, the Company Liquidator or the provisional liquidator, as the case may be, shall, on the order of the Tribunal, forthwith take into his or its custody or control all the property, effects and actionable claims to which the company is or appears to be entitled to and take such steps and measures, as may be necessary, to protect and preserve the properties of the company. (2) Notwithstanding anything contained in sub-section (1), all the property and effects of the company shall be deemed to be in the custody of the Tribunal from the date of the order for the winding up of the company. (3) On an application by the Company Liquidator or otherwise, the Tribunal may, at any time after the making of a winding up order, require any contributory for the time being on the list of contributories, and any trustee, receiver, banker, agent, officer or other employee of the company, to pay, deliver, surrender or transfer forthwith, or within such time as the Tribunal directs, to the Company Liquidator, any money, property or books and papers in his custody or under his control to which the company is or appears to be entitled. **284. Promoters, directors, etc., to cooperate with Company Liquidator.—(1) The promoters,** directors, officers and employees, who are or have been in employment of the company or acting or associated with the company shall extend full cooperation to the Company Liquidator in discharge of his functions and duties. 1[(2) If any person required to assist or cooperate with the Company Liquidator under sub-section (1) does not assist or cooperate, the Company Liquidator may make an application to the Tribunal for necessary directions. (3) On receiving an application under sub-section (2), the Tribunal shall, by an order, direct the person required to assist or cooperate with the Company Liquidator to comply with the instructions of the Company Liquidator and to cooperate with him in discharging his functions and duties.] **285. Settlement of list of contributories and application of assets.—(1) As soon as may be after the** passing of a winding up order by the Tribunal, the Tribunal shall settle a list of contributories, cause rectification of register of members in all cases where rectification is required in pursuance of this Act and shall cause the assets of the company to be applied for the discharge of its liability: Provided that where it appears to the Tribunal that it would not be necessary to make calls on or adjust the rights of contributories, the Tribunal may dispense with the settlement of a list of contributories. (2) In settling the list of contributories, the Tribunal shall distinguish between those who are contributories in their own right and those who are contributories as being representatives of, or liable for the debts of, others. (3) While settling the list of contributories, the Tribunal shall include every person, who is or has been a member, who shall be liable to contribute to the assets of the company an amount sufficient for payment of the debts and liabilities and the costs, charges and expenses of winding up, and for the adjustment of the rights of the contributories among themselves, subject to the following conditions, namely:— (a) a person who has been a member shall not be liable to contribute if he has ceased to be a member for the preceding one year or more before the commencement of the winding up; 1. Subs. by Act 29 of 2020, s. 46, for sub-section (2) (w.e.f. 21-12-2020). 175 ----- (b) a person who has been a member shall not be liable to contribute in respect of any debt or liability of the company contracted after he ceased to be a member; (c) no person who has been a member shall be liable to contribute unless it appears to the Tribunal that the present members are unable to satisfy the contributions required to be made by them in pursuance of this Act; (d) in the case of a company limited by shares, no contribution shall be required from any person, who is or has been a member exceeding the amount, if any, unpaid on the shares in respect of which he is liable as such member; (e) in the case of a company limited by guarantee, no contribution shall be required from any person, who is or has been a member exceeding the amount undertaken to be contributed by him to the assets of the company in the event of its being wound up but if the company has a share capital, such member shall be liable to contribute to the extent of any sum unpaid on any shares held by him as if the company were a company limited by shares. **286. Obligations of directors and managers.—In the case of a limited company, any person who is** or has been a director or manager, whose liability is unlimited under the provisions of this Act, shall, in addition to his liability, if any, to contribute as an ordinary member, be liable to make a further contribution as if he were at the commencement of winding up, a member of an unlimited company: Provided that — (a) a person who has been a director or manager shall not be liable to make such further contribution, if he has ceased to hold office for a year or upwards before the commencement of the winding up; (b) a person who has been a director or manager shall not be liable to make such further contribution in respect of any debt or liability of the company contracted after he ceased to hold office; (c) subject to the articles of the company, a director or manager shall not be liable to make such further contribution unless the Tribunal deems it necessary to require the contribution in order to satisfy the debts and liabilities of the company, and the costs, charges and expenses of the winding up. **287. Advisory committee.—(1) The Tribunal may, while passing an order of winding up of a company,** direct that there shall be, an advisory committee to advise the Company Liquidator and to report to the Tribunal on such matters as the Tribunal may direct. (2) The advisory committee appointed by the Tribunal shall consist of not more than twelve members, being creditors and contributories of the company or such other persons in such proportion as the Tribunal may, keeping in view the circumstances of the company under liquidation, direct. (3) The Company Liquidator shall convene a meeting of creditors and contributories, as ascertained from the books and documents, of the company within thirty days from the date of order of winding up for enabling the Tribunal to determine the persons who may be members of the advisory committee. (4) The advisory committee shall have the right to inspect the books of account and other documents, assets and properties of the company under liquidation at a reasonable time. (5) The provisions relating to the convening of the meetings, the procedure to be followed thereat and other matters relating to conduct of business by the advisory committee shall be such as may be prescribed. (6) The meeting of advisory committee shall be chaired by the Company Liquidator. **288. Submission of periodical reports to Tribunal.—(1) The Company Liquidator shall make** periodical reports to the Tribunal and in any case make a report at the end of each quarter with respect to the progress of the winding up of the company in such form and manner as may be prescribed. (2) The Tribunal may, on an application by the Company Liquidator, review the orders made by it and make such modifications as it thinks fit. **289. [Power of Tribunal on application for stay of winding up.]** _Omitted by the Insolvency and_ _Bankruptcy Code, 2016 (31 of 2016), s. 255 and the Eleventh Schedule (w.e.f. 15-11-2016)._ 176 ----- **290. Powers and duties of Company Liquidator.—(1) Subject to directions by the Tribunal, if any,** in this regard, the Company Liquidator, in a winding up of a company by the Tribunal, shall have the power— (a) to carry on the business of the company so far as may be necessary for the beneficial winding up of the company; (b) to do all acts and to execute, in the name and on behalf of the company, all deeds, receipts and other documents, and for that purpose, to use, when necessary, the company’s seal; (c) to sell the immovable and movable property and actionable claims of the company by public auction or private contract, with power to transfer such property to any person or body corporate, or to sell the same in parcels; (d) to sell the whole of the undertaking of the company as a going concern; (e) to raise any money required on the security of the assets of the company; (f) to institute or defend any suit, prosecution or other legal proceeding, civil or criminal, in the name and on behalf of the company; (g) to invite and settle claim of creditors, employees or any other claimant and distribute sale proceeds in accordance with priorities established under this Act; (h) to inspect the records and returns of the company on the files of the Registrar or any other authority; (i) to prove rank and claim in the insolvency of any contributory for any balance against his estate, and to receive dividends in the insolvency, in respect of that balance, as a separate debt due from the insolvent, and rate ably with the other separate creditors; (j) to draw, accept, make and endorse any negotiable instruments including cheque, bill of exchange, hundi or promissory note in the name and on behalf of the company, with the same effect with respect to the liability of the company as if such instruments had been drawn, accepted, made or endorsed by or on behalf of the company in the course of its business; (k) to take out, in his official name, letters of administration to any deceased contributory, and to do in his official name any other act necessary for obtaining payment of any money due from a contributory or his estate which cannot be conveniently done in the name of the company, and in all such cases, the money due shall, for the purpose of enabling the Company Liquidator to take out the letters of administration or recover the money, be deemed to be due to the Company Liquidator himself; (l) to obtain any professional assistance from any person or appoint any professional, in discharge of his duties, obligations and responsibilities and for protection of the assets of the company, appoint an agent to do any business which the Company Liquidator is unable to do himself; (m) to take all such actions, steps, or to sign, execute and verify any paper, deed, document, application, petition, affidavit, bond or instrument as may be necessary,— (i) for winding up of the company; (ii) for distribution of assets; (iii) in discharge of his duties and obligations and functions as Company Liquidator; and (n) to apply to the Tribunal for such orders or directions as may be necessary for the winding up of the company. (2) The exercise of powers by the Company Liquidator under sub-section (1) shall be subject to the overall control of the Tribunal. (3) Notwithstanding the provisions of sub-section (1), the Company Liquidator shall perform such other duties as the Tribunal may specify in this behalf. **291. Provision for professional assistance to Company Liquidator.—(1) The Company Liquidator** may, with the sanction of the Tribunal, appoint one or more chartered accountants or company secretaries 177 ----- or cost accountants or legal practitioners or such other professionals on such terms and conditions, as may be necessary, to assist him in the performance of his duties and functions under this Act. (2) Any person appointed under this section shall disclose forthwith to the Tribunal in the prescribed form any conflict of interest or lack of independence in respect of his appointment. **292. Exercise and control of Company Liquidator’s powers.—(1) Subject to the provisions of this** Act, the Company Liquidator shall, in the administration of the assets of the company and the distribution thereof among its creditors, have regard to any directions which may be given by the resolution of the creditors or contributories at any general meeting or by the advisory committee. (2) Any directions given by the creditors or contributories at any general meeting shall, in case of conflict, be deemed to override any directions given by the advisory committee. (3) The Company Liquidator— (a) may summon meetings of the creditors or contributories, whenever he thinks fit, for the purpose of ascertaining their wishes; and (b) shall summon such meetings at such times, as the creditors or contributories, as the case may be, may, by resolution, direct, or whenever requested in writing to do so by not less than one-tenth in value of the creditors or contributories, as the case may be. (4) Any person aggrieved by any act or decision of the Company Liquidator may apply to the Tribunal, and the Tribunal may confirm, reverse or modify the act or decision complained of and make such further order as it thinks just and proper in the circumstances. **293. Books to be kept by Company Liquidator.—(1) The Company Liquidator shall keep proper** books in such manner, as may be prescribed, in which he shall cause entries or minutes to be made of proceedings at meetings and of such other matters as may be prescribed. (2) Any creditor or contributory may, subject to the control of the Tribunal, inspect any such books, personally or through his agent. **294. Audit of Company Liquidator’s accounts.—(1) The Company Liquidator shall maintain proper** and regular books of account including accounts of receipts and payments made by him in such form and manner as may be prescribed. (2) The Company Liquidator shall, at such times as may be prescribed but not less than twice in each year during his tenure of office, present to the Tribunal an account of the receipts and payments as such liquidator in the prescribed form in duplicate, which shall be verified by a declaration in such form and manner as may be prescribed. (3) The Tribunal shall cause the accounts to be audited in such manner as it thinks fit, and for the purpose of the audit, the Company Liquidator shall furnish to the Tribunal with such vouchers and information as the Tribunal may require, and the Tribunal may, at any time, require the production of, and inspect, any books of account kept by the Company Liquidator. (4) When the accounts of the company have been audited, one copy thereof shall be filed by the Company Liquidator with the Tribunal, and the other copy shall be delivered to the Registrar which shall be open to inspection by any creditor, contributory or person interested. (5) Where an account referred to in sub-section (4) relates to a Government company, the Company Liquidator shall forward a copy thereof— (a) to the Central Government, if that Government is a member of the Government company; or (b) to any State Government, if that Government is a member of the Government company; or (c) to the Central Government and any State Government, if both the Governments are members of the Government company. 178 ----- (6) The Company Liquidator shall cause the accounts when audited, or a summary thereof, to be printed, and shall send a printed copy of the accounts or summary thereof by post to every creditor and every contributory: Provided that the Tribunal may dispense with the compliance of the provisions of this sub-section in any case it deems fit. **295. Payment of debts by contributory and extent of set-off.—(1) The Tribunal may, at any time** after passing of a winding up order, pass an order requiring any contributory for the time being on the list of contributories to pay, in the manner directed by the order, any money due to the company, from him or from the estate of the person whom he represents, exclusive of any money payable by him or the estate by virtue of any call in pursuance of this Act. (2) The Tribunal, in making an order, under sub-section (1), may,— (a) in the case of an unlimited company, allow to the contributory, by way of set-off, any money due to him or to the estate which he represents, from the company, on any independent dealing or contract with the company, but not any money due to him as a member of the company in respect of any dividend or profit; and (b) in the case of a limited company, allow to any director or manager whose liability is unlimited, or to his estate, such set-off. (3) In the case of any company, whether limited or unlimited, when all the creditors have been paid in full, any money due on any account whatever to a contributory from the company may be allowed to him by way of set-off against any subsequent call. **296. Power of Tribunal to make calls.—The Tribunal may, at any time after the passing of a winding** up order, and either before or after it has ascertained the sufficiency of the assets of the company,— (a) make calls on all or any of the contributories for the time being on the list of the contributories, to the extent of their liability, for payment of any money which the Tribunal considers necessary to satisfy the debts and liabilities of the company, and the costs, charges and expenses of winding up, and for the adjustment of the rights of the contributories among themselves; and (b) make an order for payment of any calls so made. **297. Adjustment of rights of contributories.—The Tribunal shall adjust the rights of the** contributories among themselves and distribute any surplus among the persons entitled thereto. **298. Power to order costs.—The Tribunal may, in the event of the assets of a company being** insufficient to satisfy its liabilities, make an order for the payment out of the assets, of the costs, charges and expenses incurred in the winding up, in such order of priority inter se as the Tribunal thinks just and proper. **299. Power to summon persons suspected of having property of company, etc.—(1) The Tribunal** may, at any time after the appointment of a provisional liquidator or the passing of a winding up order, summon before it any officer of the company or person known or suspected to have in his possession any property or books or papers, of the company, or known or suspected to be indebted to the company, or any person whom the Tribunal thinks to be capable of giving information concerning the promotion, formation, trade, dealings, property, books or papers, or affairs of the company. (2) The Tribunal may examine any officer or person so summoned on oath concerning the matters aforesaid, either by word of mouth or on written interrogatories or on affidavit and may, in the first case, reduce his answers to writing and require him to sign them. (3) The Tribunal may require any officer or person so summoned to produce any books and papers relating to the company in his custody or power, but, where he claims any lien on books or papers produced by him, the production shall be without prejudice to such lien, and the Tribunal shall have power to determine all questions relating to that lien. 179 ----- (4) The Tribunal may direct the liquidator to file before it a report in respect of debt or property of the company in possession of other persons. (5) If the Tribunal finds that— (a) a person is indebted to the company, the Tribunal may order him to pay to the provisional liquidator or, as the case may be, the liquidator at such time and in such manner as the Tribunal may consider just, the amount in which he is indebted, or any part thereof, either in full discharge of the whole amount or not, as the Tribunal thinks fit, with or without costs of the examination; (b) a person is in possession of any property belonging to the company, the Tribunal may order him to deliver to the provisional liquidator or, as the case may be, the liquidator, that property or any part thereof, at such time, in such manner and on such terms as the Tribunal may consider just. (6) If any officer or person so summoned fails to appear before the Tribunal at the time appointed without a reasonable cause, the Tribunal may impose an appropriate cost. (7) Every order made under sub-section (5) shall be executed in the same manner as decrees for the payment of money or for the delivery of property under the Code of Civil Procedure, 1908 (5 of 1908). (8) Any person making any payment or delivery in pursuance of an order made under sub-section (5) shall by such payment or delivery be, unless otherwise directed by such order, discharged from all liability whatsoever in respect of such debt or property. **300. Power to order examination of promoters, directors, etc.—(1) Where an order has been made** for the winding up of a company by the Tribunal, and the Company Liquidator has made a report to the Tribunal under this Act, stating that in his opinion a fraud has been committed by any person in the promotion, formation, business or conduct of affairs of the company since its formation, the Tribunal may, after considering the report, direct that such person or officer shall attend before the Tribunal on a day appointed by it for that purpose, and be examined as to the promotion or formation or the conduct of the business of the company or as to his conduct and dealings as an officer thereof. (2) The Company Liquidator shall take part in the examination, and for that purpose he or it may, if specially authorised by the Tribunal in that behalf, employ such legal assistance as may be sanctioned by the Tribunal. (3) The person shall be examined on oath and shall answer all such questions as the Tribunal may put, or allow to be put, to him. (4) A person ordered to be examined under this section— (a) shall, before his examination, be furnished at his own cost with a copy of the report of the Company Liquidator; and (b) may at his own cost employ chartered accountants or company secretaries or cost accountants or legal practitioners entitled to appear before the Tribunal under section 432, who shall be at liberty to put to him such questions as the Tribunal may consider just for the purpose of enabling him to explain or qualify any answers given by him. (5) If any such person applies to the Tribunal to be exculpated from any charges made or suggested against him, it shall be the duty of the Company Liquidator to appear on the hearing of such application and call the attention of the Tribunal to any matters which appear to the Company Liquidator to be relevant. (6) If the Tribunal, after considering any evidence given or hearing witnesses called by the Company Liquidator, allows the application made under sub-section (5), the Tribunal may order payment to the applicant of such costs as it may think fit. (7) Notes of the examination shall be taken down in writing, and shall be read over to or by, and signed by, the person examined, a copy be supplied to him and may thereafter be used in evidence against him, and shall be open to inspection by any creditor or contributory at all reasonable times. (8) The Tribunal may, if it thinks fit, adjourn the examination from time to time. 180 ----- (9) An examination under this section may, if the Tribunal so directs, be held before any person or authority authorised by the Tribunal. (10) The powers of the Tribunal under this section as to the conduct of the examination, but not as to costs, may be exercised by the person or authority before whom the examination is held in pursuance of sub-section (9). **301. Arrest of person trying to leave India or abscond.—At any time either before or after** passing a winding up order, if the Tribunal is satisfied that a contributory or a person having property, accounts or papers of the company in his possession is about to leave India or otherwise to abscond, or is about to remove or conceal any of his property, for the purpose of evading payment of calls or of avoiding examination respecting the affairs of the company, the Tribunal may cause— (a) the contributory to be detained until such time as the Tribunal may order; and (b) his books and papers and movable property to be seized and safely kept until such time as the Tribunal may order. **302. Dissolution of company by Tribunal.—(1) When the affairs of a company have been completely** wound up, the Company Liquidator shall make an application to the Tribunal for dissolution of such company. (2) The Tribunal shall on an application filed by the Company Liquidator under sub-section (1) or when the Tribunal is of the opinion that it is just and reasonable in the circumstances of the case that an order for the dissolution of the company should be made, make an order that the company be dissolved from the date of the order, and the company shall be dissolved accordingly. 1[(3) The Tribunal shall, within a period of thirty days form the date of the order, — (a) forward a copy of the order to the Registrar who shall record in the register relating to the company a minute of the dissolution of the company; and (b) direct the Company Liquidator to forward a copy of the order to the Registrar who shall record in the register relating to the company a minute of the dissolution of the company.] **2*** ***** ***** ***** ***** **303. Appeals from orders made before commencement of Act.—Nothing in this Chapter shall affect** the operation or enforcement of any order made by any Court in any proceedings for the winding up of a company immediately before the commencement of this Act and an appeal against such order shall be filed before such authority competent to hear such appeals before such commencement. [Part II.—Voluntary winding up] Omitted by the Insolvency and Bankruptcy Code, 2016 (31 of 2016), _s. 255 and the Eleventh Schedule (w.e.f. 15-11-2016)._ **304.[Circumstances in which company may be wound up voluntarily.]** _Omitted by s. 255_ _and the_ _Eleventh Schedule, ibid.(w.e.f. 15-11-2016)._ **305.[Declaration of solvency in case of proposal to wind up voluntarily.] Omitted by s. 255 and the** _Eleventh Schedule, ibid.(w.e.f. 15-11-2016)._ **306.[Meeting of creditors.]Omitted by s. 255 and the Eleventh Schedule, ibid. (w.e.f. 15-11-2016).** **307.[Publication of resolution to wind up voluntarily.] Omitted by s. 255and the Eleventh Schedule,** _ibid.(w.e.f. 15-11-2016)._ **308.[Commencement of voluntary winding up.]** _Omitted by s. 255_ _and the Eleventh Schedule, ibid._ (w.e.f. 15-11-2016). **309.[Effect of voluntary winding up.]** _Omitted by s. 255_ _and the Eleventh Schedule, ibid._ (w.e.f. 15-11-2016). 1. Subs. by Act 29 of 2020, s. 47, for sub-section (3) (w.e.f. 21-212020). 2. Sub-section (4) omitted by s. 47, ibid. (w.e.f. 21-12-2020). 181 ----- **310.[Appointment of Company Liquidator.]** _Omitted by s. 255_ _and the Eleventh Schedule, ibid._ (w.e.f. 15-11-2016). **311.[Power to remove and fill vacancy of Company Liquidator.] Omitted by s. 255 and the Eleventh** _Schedule, ibid.(w.e.f. 15-11-2016)._ **312.[Notice of appointment of Company Liquidator to be given to Registrar.]Omitted by s. 255 and the** _Eleventh Schedule, ibid.(w.e.f. 15-11-2016)._ **313.[Cesser of Board’s powers on appointment of Company Liquidator.]Omitted by s. 255** _and the_ _Eleventh Schedule, ibid.(w.e.f. 15-11-2016)._ **314.[Powers and duties of Company Liquidator in voluntary winding up.]Omitted by s. 255 and the** _Eleventh Schedule, ibid.(w.e.f. 15-11-2016)._ **315.[Appointment of committees.]Omitted by s. 255** _and the Eleventh Schedule, ibid.(w.e.f. 15-11-_ 2016). **316.[Company Liquidator to submit report on progress of winding up.] Omitted by the Insolvency and** _Bankruptcy Code, 2016 (31 of 2016), s. 255 and the Eleventh Schedule (w.e.f. 15-11-2016)._ **317.[Report of Company Liquidator to Tribunal for examination of persons.] Omitted by s. 255 and the** _Eleventh Schedule, ibid.(w.e.f. 15-11-2016)._ **318.[Final meeting and dissolution of company.]** _Omitted by s. 255_ _and the Eleventh Schedule,_ _ibid.(w.e.f. 15-11-2016)._ **319.[Power of Company Liquidator to accept shares, etc., as consideration for sale of property of** _company.] Omitted by s. 255 and the Eleventh Schedule, ibid.(w.e.f. 15-11-2016)._ **320. [Distribution of property of company.]** _Omitted by s. 255_ _and the Eleventh Schedule, ibid._ (w.e.f. 15-11-2016). **321. [Arrangement when binding on company and creditors.] Omitted by the Insolvency and** _Bankruptcy Code, 2016 (31 of 2016), s. 255 and the Eleventh Schedule (w.e.f. 15-11-2016)._ **322. [Power to apply to Tribunal to have questions determined, etc.] Omitted by s. 255 and the Eleventh** _Schedule, ibid.(w.e.f. 15-11-2016)._ **323.[Costs of voluntary winding up.]Omitted by s. 255 and the Eleventh Schedule, ibid. (w.e.f.** 15-11-2016). PART III.—Provisions applicable to every mode of winding up **324. Debts of all descriptions to be admitted to proof.— In every winding up (subject, in the case of** insolvent companies, to the application in accordance with the provisions of this Act or of the law of insolvency), all debts payable on a contingency, and all claims against the company, present or future, certain or contingent, ascertained or sounding only in damages, shall be admissible to proof against the company, a just estimate being made, so far as possible, of the value of such debts or claims as may be subject to any contingency, or may sound only in damages, or for some other reason may not bear a certain value. **325.[Application of insolvency rules in winding up of insolvent companies.] Omitted by the Insolvency** _and Bankruptcy Code, 2016 (31 of 2016) s. 255 and the Eleventh Schedule (w.e.f. 15-11-2016)._ **1[326. Overriding preferential payments.—(1) In the winding up of a company under this Act, the** following debts shall be paid in priority to all other debts:— (a) workmen’s dues; and (b) where a secured creditor has realised a secured asset, so much of the debts due to such secured creditor as could not be realised by him or the amount of the workmen's portion in his security (if payable under the law), whichever is less, pari passu with the workmen's dues: 1. Subs. by Act 31 of 2016, s. 255 and the Eleventh Schedule, for section 326 (w.e.f. 15-11-2016). 182 ----- Provided that in case of the winding up of a company, the sums referred to in sub-clauses (i) and (ii) of clause (b) of the Explanation, which are payable for a period of two years preceding the winding up order or such other period as may be prescribed, shall be paid in priority to all other debts (including debts due to secured creditors), within a period of thirty days of sale of assets and shall be subject to such charge over the security of secured creditors as may be prescribed. (2) The debts payable under the proviso to sub-section (1) shall be paid in full before any payment is made to secured creditors and thereafter debts payable under that sub-section shall be paid in full, unless the assets are insufficient to meet them, in which case they shall abate in equal proportions. _Explanation.—For the purposes of this section, and section 327—_ (a) “workmen”, in relation to a company, means the employees of the company, being workmen within the meaning of clause (s) of section 2 of the Industrial Disputes Act, 1947 (14 of 1947); (b) “workmen's dues”, in relation to a company, means the aggregate of the following sums due from the company to its workmen, namely:— (i) all wages or salary including wages payable for time or piece work and salary earned wholly or in part by way of commission of any workman in respect of services rendered to the company and any compensation payable to any workman under any of the provisions of the Industrial Disputes Act, 1947 (14 of 1947); (ii) all accrued holiday remuneration becoming payable to any workman or, in the case of his death, to any other person in his right on the termination of his employment before or by the effect of the winding up order or resolution; (iii) unless the company is being wound up voluntarily merely for the purposes of reconstruction or amalgamation with another company or unless the company has, at the commencement of the winding up, under such a contract with insurers as is mentioned in section 14 of the Workmen's Compensation Act, 1923 (19 of 1923), rights capable of being transferred to and vested in the workmen, all amount due in respect of any compensation or liability for compensation under the said Act in respect of the death or disablement of any workman of the company; (iv) all sums due to any workman from the provident fund, the pension fund, the gratuity fund or any other fund for the welfare of the workmen, maintained by the company; (c) “workmen's portion”, in relation to the security of any secured creditor of a company, means the amount which bears to the value of the security the same proportion as the amount of the workmen's dues bears to the aggregate of the amount of workmen's dues and the amount of the debts due to the secured creditors. _Illustration_ The value of the security of a secured creditor of a company is Rs. 1,00,000. The total amount of the workmen's dues is Rs. 1,00,000. The amount of the debts due from the company to its secured creditors is Rs.3,00,000. The aggregate of the amount of workmen's dues and the amount of debts due to secured creditors is Rs. 4,00,000. The workmen's portion of the security is, therefore, one-fourth of the value of the security, that is Rs. 25,000.] **327. Preferential payments.—(1) In a winding up, subject to the provisions of section 326, there shall** be paid in priority to all other debts,— (a) all revenues, taxes, cesses and rates due from the company to the Central Government or a State Government or to a local authority at the relevant date, and having become due and payable within the twelve months immediately before that date; (b) all wages or salary including wages payable for time or piece work and salary earned wholly or in part by way of commission of any employee in respect of services rendered to the company and due for a period not exceeding four months within the twelve months immediately before the relevant date, subject to the condition that the amount payable under this clause to any workman shall not exceed such amount as may be notified; 183 ----- (c) all accrued holiday remuneration becoming payable to any employee, or in the case of his death, to any other person claiming under him, on the termination of his employment before, or by the winding up order, or, as the case may be, the dissolution of the company; (d) unless the company is being wound up voluntarily merely for the purposes of reconstruction or amalgamation with another company, all amount due in respect of contributions payable during the period of twelve months immediately before the relevant date by the company as the employer of persons under the Employees’ State Insurance Act, 1948 (34 of 1948) or any other law for the time being in force; (e) unless the company has, at the commencement of winding up, under such a contract with any insurer as is mentioned in section 14 of the Workmen’s Compensation Act, 1923 (8 of 1923), rights capable of being transferred to and vested in the workmen, all amount due in respect of any compensation or liability for compensation under the said Act in respect of the death or disablement of any employee of the company: Provided that where any compensation under the said Act is a weekly payment, the amount payable under this clause shall be taken to be the amount of the lump sum for which such weekly payment could, if redeemable, be redeemed, if the employer has made an application under that Act; (f) all sums due to any employee from the provident fund, the pension fund, the gratuity fund or any other fund for the welfare of the employees, maintained by the company; and (g) the expenses of any investigation held in pursuance of sections 213 and 216, in so far as they are payable by the company. (2) Where any payment has been made to any employee of a company on account of wages or salary or accrued holiday remuneration, himself or, in the case of his death, to any other person claiming through him, out of money advanced by some person for that purpose, the person by whom the money was advanced shall, in a winding up, have a right of priority in respect of the money so advanced and paid-up to the amount by which the sum in respect of which the employee or other person in his right would have been entitled to priority in the winding up has been reduced by reason of the payment having been made. (3) The debts enumerated in this section shall— (a) rank equally among themselves and be paid in full, unless the assets are insufficient to meet them, in which case they shall abate in equal proportions; and (b) so far as the assets of the company available for payment to general creditors are insufficient to meet them, have priority over the claims of holders of debentures under any floating charge created by the company, and be paid accordingly out of any property comprised in or subject to that charge. (4) Subject to the retention of such sums as may be necessary for the costs and expenses of the winding up, the debts under this section shall be discharged forthwith so far as the assets are sufficient to meet them, and in the case of the debts to which priority is given under clause (d) of sub-section (1), formal proof thereof shall not be required except in so far as may be otherwise prescribed. (5) In the event of a landlord or other person distaining or having distained on any goods or effects of the company within three months immediately before the date of a winding up order, the debts to which priority is given under this section shall be a first charge on the goods or effects so distrained on or the proceeds of the sale thereof: Provided that, in respect of any money paid under any such charge, the landlord or other person shall have the same rights of priority as the person to whom the payment is made. (6) Any remuneration in respect of a period of holiday or of absence from work on medical grounds through sickness or other good cause shall be deemed to be wages in respect of services rendered to the company during that period. 184 ----- 1[(7) Sections 326 and 327 shall not be applicable in the event of liquidation under the Insolvency and Bankruptcy Code, 2016 (31 of 2016).] _Explanation.—For the purposes of this section,—_ (a) the expression “accrued holiday remuneration” includes, in relation to any person, all sums which, by virtue either of his contract of employment or of any enactment including any order made or direction given thereunder, are payable on account of the remuneration which would, in the ordinary course, have become payable to him in respect of a period of holiday, had his employment with the company continued until he became entitled to be allowed the holiday; (b) the expression “employee” does not include a workman; and 2[(c) the expression “relevant date” means in the case of a company being wound up by the Tribunal, the date of appointment or first appointment of a provisional liquidator, or if no such appointment was made, the date of the winding up order, unless, in either case, the company had commenced to be wound up voluntarily before that date under the Insolvency and Bankruptcy Code, 2016 (31 of 2016).] **328. Fraudulent preference.—(1) Where a company has given preference to a person who is one of** the creditors of the company or a surety or guarantor for any of the debts or other liabilities of the company, and the company does anything or suffers anything done which has the effect of putting that person into a position which, in the event of the company going into liquidation, will be better than the position he would have been in if that thing had not been done prior to six months of making winding up application, the Tribunal, if satisfied that, such transaction is a fraudulent preference may order as it may think fit for restoring the position to what it would have been if the company had not given that preference. (2) If the Tribunal is satisfied that there is a preference transfer of property, movable or immovable, or any delivery of goods, payment, execution made, taken or done by or against a company within six months before making winding up application, the Tribunal may order as it may think fit and may declare such transaction invalid and restore the position. 3[329. Transfers not in good faith to be void.—Any transfer of property, movable or immovable, or any delivery of goods, made by a company, not being a transfer or delivery made in the ordinary course of its business or in favour of a purchaser or encumbrancer in good faith and for valuable consideration, if made within a period of one year before the presentation of a petition for winding up by the Tribunal under this Act shall be void against the Company Liquidator.] **330. Certain transfers to be void.—Any transfer or assignment by a company of all its properties or** assets to trustees for the benefit of all its creditors shall be void. **331. Liabilities and rights of certain persons fraudulently preferred.—(1) Where a company is** being wound up and anything made, taken or done after the commencement of this Act is invalid under section 328 as a fraudulent preference of a person interested in property mortgaged or charged to secure the company’s debt, then, without prejudice to any rights or liabilities arising, apart from this provision, the person preferred shall be subject to the same liabilities, and shall have the same rights, as if he had undertaken to be personally liable as a surety for the debt, to the extent of the mortgage or charge on the property or the value of his interest, whichever is less. (2) The value of the interest of the person preferred under sub-section (1) shall be determined as at the date of the transaction constituting the fraudulent preference, as if the interest were free of all encumbrances other than those to which the mortgage or charge for the debt of the company was then subject. (3) On an application made to the Tribunal with respect to any payment on the ground that the payment was a fraudulent preference of a surety or guarantor, the Tribunal shall have jurisdiction to determine any questions with respect to the payment arising between the person to whom the payment was made and the surety or guarantor and to grant relief in respect thereof, notwithstanding that it is not necessary so to do 1. Ins. by Act 31 of 2016, s. 255 and the Eleventh Schedule (w.e.f. 15-11-2016). 2. Subs. by s. 255 and the Eleventh Schedule, ibid., for clause (c) (w.e.f. 15-11-2016). 3. Subs. by Act 31 of 2016, s. 255 and the Eleventh Schedule, for section 329 (w.e.f. 15-11-2016). 185 ----- for the purposes of the winding up, and for that purpose, may give leave to bring in the surety or guarantor as a third party as in the case of a suit for the recovery of the sum paid. (4) The provisions of sub-section (3) shall apply mutatis mutandis in relation to transactions other than payment of money. **332. Effect of floating charge.—Where a company is being wound up, a floating charge on the** undertaking or property of the company created within the twelve months immediately preceding the commencement of the winding up, shall, unless it is proved that the company immediately after the creation of the charge was solvent, be invalid, except for the amount of any cash paid to the company at the time of, or subsequent to the creation of, and in consideration for, the charge, together with interest on that amount at the rate of five per cent. per annum or such other rate as may be notified by the Central Government in this behalf. **333. Disclaimer of onerous property.—(1) Where any part of the property of a company which is** being wound up consists of— (a) land of any tenure, burdened with onerous covenants; (b) shares or stocks in companies; (c) any other property which is not saleable or is not readily saleable by reason of the possessor thereof being bound either to the performance of any onerous act or to the payment of any sum of money; or (d) unprofitable contracts, the Company Liquidator may, notwithstanding that he has endeavoured to sell or has taken possession of the property or exercised any act of ownership in relation thereto or done anything in pursuance of the contract, with the leave of the Tribunal and subject to the provisions of this section, by writing signed by him, at any time within twelve months after the commencement of the winding up or such extended period as may be allowed by the Tribunal, disclaim the property: Provided that where the Company Liquidator had not become aware of the existence of any such property within one month from the commencement of the winding up, the power of disclaiming the property may be exercised at any time within twelve months after he has become aware thereof or such extended period as may be allowed by the Tribunal. (2) The disclaimer shall operate to determine, as from the date of disclaimer, the rights, interest and liabilities of the company in or in respect of the property disclaimed, but shall not, except so far as is necessary for the purpose of releasing the company and the property of the company from liability, affect the rights, interest or liabilities of any other person. (3) The Tribunal, before or on granting leave to disclaim, may require such notices to be given to persons interested, and impose such terms as a condition of granting leave, and make such other order in the matter as the Tribunal considers just and proper. (4) The Company Liquidator shall not be entitled to disclaim any property in any case where an application in writing has been made to him by any person interested in the property requiring him to decide whether he will or will not disclaim and the Company Liquidator has not, within a period of twenty-eight days after the receipt of the application or such extended period as may be allowed by the Tribunal, give notice to the applicant that he intends to apply to the Tribunal for leave to disclaim, and in case the property is under a contract, if the Company Liquidator after such an application as aforesaid does not within the said period or extended period disclaim the contract, he shall be deemed to have adopted it. (5) The Tribunal may, on the application of any person who is, as against the Company Liquidator, entitled to the benefit or subject to the burden of a contract made with the company, make an order rescinding the contract on such terms as to payment by or to either party of damages for the nonperformance of the contract, or otherwise as the Tribunal considers just and proper, and any damages payable under the order to any such person maybe proved by him as a debt in the winding up. (6) The Tribunal may, on an application by any person who either claims any interest in any disclaimed property or is under any liability not discharged under this Act in respect of any disclaimed property, and 186 ----- after hearing any such persons as it thinks fit, make an order for the vesting of the property in, or the delivery of the property to, any person entitled thereto or to whom it may seem just that the property should be delivered by way of compensation for such liability as aforesaid, or a trustee for him, and on such terms as the Tribunal considers just and proper, and on any such vesting order being made, the property comprised therein shall vest accordingly in the person named therein in that behalf without any conveyance or assignment for the purpose: Provided that where the property disclaimed is of a leasehold nature, the Tribunal shall not make a vesting order in favour of any person claiming under the company, whether as under-lessee or as mortgagee or holder of a charge by way of demise, except upon the terms of making that person— (a) subject to the same liabilities and obligations as those to which the company was subject under the lease in respect of the property at the commencement of the winding up; or (b) if the Tribunal thinks fit, subject only to the same liabilities and obligations as if the lease had been assigned to that person at that date, and in either event as if the lease had comprised only the property comprised in the vesting order, and any mortgagee or under-lessee declining to accept a vesting order upon such terms shall be excluded from all interest in, and security upon the property, and, if there is no person claiming under the company who is willing to accept an order upon such terms, the Tribunal shall have power to vest the estate and interest of the company in the property in any person liable, either personally or in a representative character, and either alone or jointly with the company, to perform the covenants of the lessee in the lease, free and discharged from all estates, encumbrances and interests created therein by the company. (7) Any person affected by the operation of a disclaimer under this section shall be deemed to be a creditor of the company to the amount of the compensation or damages payable in respect of such effect, and may accordingly prove the amount as a debt in the winding up. **1[334. Transfers, etc., after commencement of winding up to be void.—In the case of a winding up** by the Tribunal, any disposition of the property including actionable claims, of the company and any transfer of shares in the company or alteration in the status of its members, made after the commencement of the winding up shall, unless the Tribunal otherwise orders, be void.] **335. Certain attachments, executions, etc., in winding up by Tribunal to be void.—(1) Where any** company is being wound up by the Tribunal,— (a) any attachment, distress or execution put in force, without leave of the Tribunal against the estate or effects of the company, after the commencement of the winding up; or (b) any sale held, without leave of the Tribunal of any of the properties or effects of the company, after such commencement, shall be void. (2) Nothing in this section shall apply to any proceedings for the recovery of any tax or impost or any dues payable to the Government. **336. Offences by officers of companies in liquidation.—(1) If any person, who is or has been an** officer of a company which, at the time of the commission of the alleged offence, is being wound up, [2][by the Tribunal under this Act or which is subsequently ordered to be wound up by the Tribunal under this Act],— (a) does not, to the best of his knowledge and belief, fully and truly disclose to the Company Liquidator all the property, movable and immovable, of the company, and how and to whom and for what consideration and when the company disposed of any part thereof, except such part as has been disposed of in the ordinary course of the business of the company; (b) does not deliver up to the Company Liquidator, or as he directs, all such part of the movable and immovable property of the company as is in his custody or under his control and which he is required by law to deliver up; 1. Subs. by Act 31 of 2016, s. 255 and the Eleventh Schedule, for section 334 (w.e.f. 15-11-2016). 2. Subs. by s. 255 and the Eleventh Schedule, ibid., for “whether by the Tribunal or voluntarily, or which is subsequently ordered to be wound up by the Tribunal or which subsequently passes a resolution for voluntary winding up” (w.e.f. 15-11-2016). 187 ----- (c) does not deliver up to the Company Liquidator, or as he directs, all such books and papers of the company as are in his custody or under his control and which he is required by law to deliver up; (d) within the twelve months immediately before the commencement of the winding up or at any time thereafter,— (i) conceals any part of the property of the company to the value of one thousand rupees or more, or conceals any debt due to or from the company; (ii) fraudulently removes any part of the property of the company to the value of one thousand rupees or more; (iii) conceals, destroys, mutilates or falsifies, or is privy to the concealment, destruction, mutilation or falsification of, any book or paper affecting or relating to, the property or affairs of the company; (iv) makes, or is privy to the making of, any false entry in any book or paper affecting or relating to, the property or affairs of the company; (v) fraudulently parts with, alters or makes any omission in, or is privy to the fraudulent parting with, altering or making of any omission in, any book or paper affecting or relating to the property or affairs of the company; (vi) by any false representation or other fraud, obtains on credit, for or on behalf of the company, any property which the company does not subsequently pay for; (vii) under the false pretence that the company is carrying on its business, obtains on credit, for or on behalf of the company, any property which the company does not subsequently pay for; or (viii) pawns, pledges or disposes of any property of the company which has been obtained on credit and has not been paid for, unless such pawning, pledging or disposing of the property is in the ordinary course of business of the company; (e) makes any material omission in any statement relating to the affairs of the company; (f) knowing or believing that a false debt has been proved by any person under the winding up, fails for a period of one month to inform the Company Liquidator thereof; (g) after the commencement of the winding up, prevents the production of any book or paper affecting or relating to the property or affairs of the company; (h) after the commencement of the winding up or at any meeting of the creditors of the company within the twelve months next before the commencement of the winding up, attempts to account for any part of the property of the company by fictitious losses or expenses; or (i) is guilty of any false representation or fraud for the purpose of obtaining the consent of the creditors of the company or any of them, to an agreement with reference to the affairs of the company or to the winding up, he shall be punishable with imprisonment for a term which shall not be less than three years but which may extend to five years and with fine which shall not be less than one lakh rupees but which may extend to three lakh rupees: Provided that it shall be a good defence if the accused proves that he had no intent to defraud or to conceal the true state of affairs of the company or to defeat the law. (2) Where any person pawns, pledges or disposes of any property in circumstances which amount to an offence under sub-clause (viii) of clause (d) of sub-section (1), every person who takes in pawn or pledge or otherwise receives the property, knowing it to be pawned, pledged, or disposed of in such circumstances as aforesaid, shall be punishable with imprisonment for a term which shall not be less than three years but which may extend to five years and with fine which shall not be less than three lakh rupees but which may extend to five lakh rupees. 188 ----- _Explanation.—For the purposes of this section, the expression “officer” includes any person in_ accordance with whose directions or instructions the directors of the company have been accustomed to act. **337. Penalty for frauds by officers.—If any person, being at the time of the commission of the alleged** offence an officer of a company which is subsequently ordered to be wound up by the Tribunal [1][under this Act]— (a) has, by false pretences or by means of any other fraud, induced any person to give credit to the company; (b) with intent to defraud creditors of the company or any other person, has made or caused to be made any gift or transfer of, or charge on, or has caused or connived at the levying of any execution against, the property of the company; or (c) with intent to defraud creditors of the company, has concealed or removed any part of the property of the company since the date of any unsatisfied judgment or order for payment of money obtained against the company or within two months before that date, he shall be punishable with imprisonment for a term which shall not be less than one year but which may extend to three years and with fine which shall not be less than one lakh rupees but which may extend to three lakh rupees. **338. Liability where proper accounts not kept.—(1) Where a company is being wound up, if it is** shown that proper books of account were not kept by the company throughout the period of two years immediately preceding the commencement of the winding up, or the period between the incorporation of the company and the commencement of the winding up, whichever is shorter, every officer of the company who is in default shall, unless he shows that he acted honestly and that in the circumstances in which the business of the company was carried on, the default was excusable, be punishable with imprisonment for a term which shall not be less than one year but which may extend to three years and with fine which shall not be less than one lakh rupees but which may extend to three lakh rupees. (2) For the purposes of sub-section (1), it shall be deemed that proper books of account have not been kept in the case of any company,— (a) if such books of account as are necessary to exhibit and explain the transactions and financial position of the business of the company, including books containing entries made from day-to-day in sufficient detail of all cash received and all cash paid, have not been kept; and (b) where the business of the company has involved dealings in goods, statements of the annual stock takings and, except in the case of goods sold by way of ordinary retail trade, of all goods sold and purchased, showing the goods and the buyers and the sellers thereof in sufficient detail to enable those goods and those buyers and sellers to be identified, have not been kept. **339. Liability for fraudulent conduct of business.—(1) If in the course of the winding up of a** company, it appears that any business of the company has been carried on with intent to defraud creditors of the company or any other persons or for any fraudulent purpose, the Tribunal, on the application of the Official Liquidator, or the Company Liquidator or any creditor or contributory of the company, may, if it thinks it proper so to do, declare that any person, who is or has been a director, manager, or officer of the company or any persons who were knowingly parties to the carrying on of the business in the manner aforesaid shall be personally responsible, without any limitation of liability, for all or any of the debts or other liabilities of the company as the Tribunal may direct: Provided that on the hearing of an application under this sub-section, the Official Liquidator or the Company Liquidator, as the case may be, may himself give evidence or call witnesses. (2) Where the Tribunal makes any such declaration, it may give such further directions as it thinks proper for the purpose of giving effect to that declaration and, in particular,— 1. Subs. by Act 31 of 2016, s. 255 and the Eleventh Schedule, for “or which subsequently passes a resolution for voluntary winding up,” (w.e.f. 15-11-2016). 189 ----- (a) make provision for making the liability of any such person under the declaration a charge on any debt or obligation due from the company to him, or on any mortgage or charge or any interest in any mortgage or charge on any assets of the company held by or vested in him, or any person on his behalf, or any person claiming as assignee from or through the person liable or any person acting on his behalf; (b) make such further order as may be necessary for the purpose of enforcing any charge imposed under this sub-section. (3) Where any business of a company is carried on with such intent or for such purpose as is mentioned in sub-section (1), every person who was knowingly a party to the carrying on of the business in the manner aforesaid, shall be liable for action under section 447. (4) This section shall apply, notwithstanding that the person concerned may be punishable under any other law for the time being in force in respect of the matters on the ground of which the declaration is to be made. _Explanation.—For the purposes of this section,—_ (a) the expression “assignee” includes any person to whom or in whose favour, by the directions of the person liable, the debt, obligation, mortgage or charge was created, issued or transferred or the interest was created, but does not include an assignee for valuable consideration, not including consideration by way of marriage, given in good faith and without notice of any of the matters on the ground of which the declaration is made; (b) the expression “officer” includes any person in accordance with whose directions or instructions the directors of the company have been accustomed to act. **340. Power of Tribunal to assess damages against delinquent directors, etc.—(1) If in the course** of winding up of a company, it appears that any person who has taken part in the promotion or formation of the company, or any person, who is or has been a director, manager, Company Liquidator or officer of the company— (a) has misapplied, or retained, or become liable or accountable for, any money or property of the company; or (b) has been guilty of any misfeasance or breach of trust in relation to the company, the Tribunal may, on the application of the Official Liquidator, or the Company Liquidator, or of any creditor or contributory, made within the period specified in that behalf in sub-section (2), inquire into the conduct of the person, director, manager, Company Liquidator or officer aforesaid, and order him to repay or restore the money or property or any part thereof respectively, with interest at such rate as the Tribunal considers just and proper, or to contribute such sum to the assets of the company by way of compensation in respect of the misapplication, retainer, misfeasance or breach of trust, as the Tribunal considers just and proper. (2) An application under sub-section (1) shall be made within five years from the date of the winding up order, or of the first appointment of the Company Liquidator in the winding up, or of the misapplication, retainer, misfeasance or breach of trust, as the case may be, whichever is longer. (3) This section shall apply, notwithstanding that the matter is one for which the person concerned may be criminally liable. **341. Liability under sections 339 and 340 to extend to partners or directors in firms or** **companies.—Where a declaration under section 339 or an order under section 340 is made in respect of a** firm or body corporate, the Tribunal shall also have power to make a declaration under section 339, or pass an order under section 340, as the case may be, in respect of any person who was at the relevant time a partner in that firm or a director of that body corporate. **342. Prosecution of delinquent officers and members of company.—(1) If it appears to the Tribunal** in the course of a winding up by the Tribunal, that any person, who is or has been an officer, or any member, of the company has been guilty of any offence in relation to the company, the Tribunal may, either on the 190 ----- application of any person interested in the winding up or suo motu, direct the liquidator to prosecute the offender or to refer the matter to the Registrar. 1* - - - (5) When any prosecution is instituted under this section, it shall be the duty of the liquidator and of every person, who is or has been an officer and agent of the company to give all assistance in connection with the prosecution which he is reasonably able to give. _Explanation.—For the purposes of this sub-section, the expression “agent”, in relation to a company,_ shall include any banker or legal adviser of the company and any person employed by the company as auditor. 2* - - - **343. Company Liquidator to exercise certain powers subject to sanction.—[3][(1) The Company** Liquidator may, with the sanction of the Tribunal, when the company is being wound up by the Tribunal,— (i) pay any class of creditors in full; (ii) make any compromise or arrangement with creditors or persons claiming to be creditors, or having or alleging themselves to have any claim, present or future, certain or contingent, against the company, or whereby the company may be rendered liable; or (iii) compromise any call or liability to call, debt, and liability capable of resulting in a debt, and any claim, present or future, certain or contingent, ascertained or sounding only in damages, subsisting or alleged to subsist between the company and a contributory or alleged contributory or other debtor or person apprehending liability to the company, and all questions in any way relating to or affecting the assets or liabilities or the winding up of the company, on such terms as may be agreed, and take any security for the discharge of any such call, debt, liability or claim, and give a complete discharge in respect thereof.] (2) Notwithstanding anything contained in sub-section (1), in the case of a winding up by the Tribunal, the Central Government may make rules to provide that the Company Liquidator may, under such circumstances, if any, and subject to such conditions, restrictions and limitations, if any, as may be prescribed, exercise any of the powers referred to in sub-clause (ii) or sub-clause (iii) of clause (b) of sub-section (1) without the sanction of the Tribunal. (3) Any creditor or contributory may apply in the manner prescribed to the Tribunal with respect to any exercise or proposed exercise of powers by the Company Liquidator under this section, and the Tribunal shall after giving a reasonable opportunity to such applicant and the Company Liquidator, pass such orders as it may think fit. **344. Statement that company is in liquidation.—(1) Where a company is being wound up, whether** by the Tribunal or voluntarily, every invoice, order for goods or business letter issued by or on behalf of the company or a Company Liquidator of the company, or a receiver or manager of the property of the company, being a document on or in which the name of the company appears, shall contain a statement that the company is being wound up. (2) If a company contravenes the provisions of sub-section (1), the company, and every officer of the company, the Company Liquidator and any receiver or manager, who wilfully authorises or permits the non-compliance, shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to three lakh rupees. **345. Books and papers of company to be evidence.—Where a company is being wound up, all books** and papers of the company and of the Company Liquidator shall, as between the contributories of the company, be prima facie evidence of the truth of all matters purporting to be recorded therein. 1. Sub-sections (2), (3) and (4) omitted by Act 31 of 2016, s. 255 and the Eleventh Schedule (w.e.f. 15-11-2016). 2. Sub-section (6) omitted by Act 29 of 2020, s. 48 (w.e.f. 21-12-2020). 3. Subs. by Act 31 of 2016, s. 255 and the Eleventh Schedule, for sub-section (1) (w.e.f. 15-11-2016). 191 ----- **346. Inspection of books and papers by creditors and contributories.—(1) At any time after the** making of an order for the winding up of a company by the Tribunal, any creditor or contributory of the company may inspect the books and papers of the company only in accordance with, and subject to such rules as may be prescribed. (2) Nothing contained in sub-section (1) shall exclude or restrict any rights conferred by any law for the time being in force— (a) on the Central Government or a State Government; (b) on any authority or officer thereof; or (c) on any person acting under the authority of any such Government or of any such authority or officer. **347. Disposal of books and papers of company.—[1][(1) When the affairs of a company have been** completely wound up and it is about to be dissolved, the books and papers of such company and those of the Company Liquidator may be disposed of in such manner as the Tribunal directs.] (2) After the expiry of five years from the dissolution of the company, no responsibility shall devolve on the company, the Company Liquidator, or any person to whom the custody of the books and papers has been entrusted, by reason of any book or paper not being forthcoming to any person claiming to be interested therein. (3) The Central Government may, by rules,— (a) prevent for such period as it thinks proper the destruction of the books and papers of a company which has been wound up and of its Company Liquidator; and (b) enable any creditor or contributory of the company to make representations to the Central Government in respect of the matters specified in clause (a) and to appeal to the Tribunal from any order which may be made by the Central Government in the matter. (4) If any person acts in contravention of any rule framed or an order made under sub-section (3), he shall be punishable [2]*** with fine which may extend to [3][fifty thousand rupees]. **348. Information as to pending liquidations.—[4][(1) If the winding up of a company is not concluded** within one year after its commencement, the Company Liquidator shall, unless he is exempted from so doing, either wholly or in part by the Central Government, within two months of the expiry of such year and thereafter until the winding up is concluded, at intervals of not more than one year or at such shorter intervals, if any, as may be prescribed, file a statement in such form containing such particulars as may be prescribed, duly audited, by a person qualified to act as auditor of the company, with respect to the proceedings in, and position of, the liquidation, with the Tribunal: Provided that no such audit as is referred to in this sub-section shall be necessary where the provisions of section 294 apply.] (2) When the statement is filed with the Tribunal under clause (a) of sub-section (1), a copy shall simultaneously be filed with the Registrar and shall be kept by him along with the other records of the company. (3) Where a statement referred to in sub-section (1) relates to a Government company in liquidation, the Company Liquidator shall forward a copy thereof— (a) to the Central Government, if that Government is a member of the Government company; (b) to any State Government, if that Government is a member of the Government company; or 1. Subs. by Act 31 of 2016, s. 255 and the Eleventh Schedule, for sub-section (1) (w.e.f. 15-11-2016). 2. The words “with imprisonment for a term which may extend to six months or” omitted by Act 29 of 2020, s. 49 (w.e.f. 21-12 2020). 3. Subs. by s. 49, ibid., for “fifty thousand rupees, or with both” (w.e.f. 21-12-2020). 4. Subs. by s. 255 and the Eleventh Schedule, ibid., for sub-section (1) (w.e.f. 15-11-2016). 192 ----- (c) to the Central Government and any State Government, if both the Governments are members of the Government company. (4) Any person stating himself in writing to be a creditor or contributory of the company shall be entitled, by himself or by his agent, at all reasonable times, on payment of the prescribed fee, to inspect the statement referred to in sub-section (1), and to receive a copy thereof or an extract there from. (5) Any person fraudulently stating himself to be a creditor or contributory under sub-section (4) shall be deemed to be guilty of an offence under section 182 of the Indian Penal Code (45 of 1860), and shall, on the application of the Company Liquidator, be punishable accordingly. 1[(6) Where a Company Liquidator, who is an insolvency professional registered under the Insolvency and Bankrupt Code, 2016 (31 of 2016) is in default in complying with the provisions of this section, then such default shall be deemed to be a contravention of the provisions of the said Code, and the rules and regulations made thereunder for the purpose of proceedings under chapter VI of Part IV of that Code.] 2* - - - **349. Official Liquidator to make payments into public account of India.—Every Official** Liquidator shall, in such manner and at such times as may be prescribed, pay the monies received by him as Official Liquidator of any company, into the public account of India in the Reserve Bank of India. **350. Company Liquidator to deposit monies into scheduled bank.—(1) Every Company Liquidator** of a company shall, in such manner and at such times as may be prescribed, deposit the monies received by him in his capacity as such in a scheduled bank to the credit of a special bank account opened by him in that behalf: Provided that if the Tribunal considers that it is advantageous for the creditors or contributories or the company, it may permit the account to be opened in such other bank specified by it. (2) If any Company Liquidator at any time retains for more than ten days a sum exceeding five thousand rupees or such other amount as the Tribunal may, on the application of the Company Liquidator, authorise him to retain, then, unless he explains the retention to the satisfaction of the Tribunal, he shall— (a) pay interest on the amount so retained in excess, at the rate of twelve per cent. per annum and also pay such penalty as may be determined by the Tribunal; (b) be liable to pay any expenses occasioned by reason of his default; and (c) also be liable to have all or such part of his remuneration, as the Tribunal may consider just and proper, disallowed, or may also be removed from his office. **351. Liquidator not to deposit monies into private banking account.—Neither the Official** Liquidator nor the Company Liquidator of a company shall deposit any monies received by him in his capacity as such into any private banking account. **352. Company Liquidation Dividend and Undistributed Assets Account.—(1) Where any company** is being wound up and the liquidator has in his hands or under his control any money representing— (a) dividends payable to any creditor but which had remained unpaid for six months after the date on which they were declared; or (b) assets refundable to any contributory which have remained undistributed for six months after the date on which they become refundable, the liquidator shall forthwith deposit the said money into a separate special account to be known as the Company Liquidation Dividend and Undistributed Assets Account maintained in a scheduled bank. (2) The liquidator shall, on the dissolution of the company, pay into the Company Liquidation Dividend and Undistributed Assets Account any money representing unpaid dividends or undistributed assets in his hands at the date of dissolution. 1. Subs. by Act 29 of 2020, s. 50, for sub-section (6) (w.e.f. 21-12-2020). 2. Sub-section (7) omitted by Act 29 of 2020, s. 50 (w.e.f. 21-12-2020). 193 ----- (3) The liquidator shall, when making any payment referred to in sub-sections (1) and (2), furnish to the Registrar, a statement in the prescribed form, setting forth, in respect of all sums included in such payment, the nature of the sums, the names and last known addresses of the persons entitled to participate therein, the amount to which each is entitled and the nature of his claim thereto, and such other particulars as may be prescribed. (4) The liquidator shall be entitled to a receipt from the scheduled bank for any money paid to it under sub-sections (1) and (2), and such receipt shall be an effectual discharge of the Company Liquidator in respect thereof. (5) Where a company is being wound up voluntarily, the Company Liquidator shall, when filing a statement in pursuance of sub-section (1) of section 348, indicate the sum of money which is payable under sub-sections (1) and (2) of this section during the six months preceding the date on which the said statement is prepared, and shall, within fourteen days of the date of filing the said statement, pay that sum into the Company Liquidation Dividend and Undistributed Assets Account. (6) Any person claiming to be entitled to any money paid into the Company Liquidation Dividend and Undistributed Assets Account, whether paid in pursuance of this section or under the provisions of any previous company law may apply to the Registrar for payment thereof, and the Registrar, if satisfied that the person claiming is entitled, may make the payment to that person of the sum due: Provided that the Registrar shall settle the claim of such person within a period of sixty days from the date of receipt of such claim, failing which the Registrar shall make a report to the Regional Director giving reasons of such failure. (7) Any money paid into the Company Liquidation Dividend and Undistributed Assets Account in pursuance of this section, which remains unclaimed thereafter for a period of fifteen years, shall be transferred to the general revenue account of the Central Government, but a claim to any money so transferred may be preferred under sub-section (6) and shall be dealt with as if such transfer had not been made and the order, if any, for payment on the claim will be treated as an order for refund of revenue. (8) Any liquidator retaining any money which should have been paid by him into the Company Liquidation Dividend and Undistributed Assets Account under this section shall— (a) pay interest on the amount so retained at the rate of twelve per cent. per annum and also pay such penalty as may be determined by the Registrar: Provided that the Central Government may in any proper case remit either in part or in whole the amount of interest which the liquidator is required to pay under this clause; (b) be liable to pay any expenses occasioned by reason of his default; and (c) where the winding up is by the Tribunal, also be liable to have all or such part of his remuneration, as the Tribunal may consider just and proper, to be disallowed, and to be removed from his office by the Tribunal. **353. Liquidator to make returns, etc.—(1) If any Company Liquidator who has made any default in** filing, delivering or making any return, account or other document, or in giving any notice which he is by law required to file, deliver, make or give, fails to make good the default within fourteen days after the service on him of a notice requiring him to do so, the Tribunal may, on an application made to it by any contributory or creditor of the company or by the Registrar, make an order directing the Company Liquidator to make good the default within such time as may be specified in the order. (2) Any order under sub-section (1) may provide that all costs of, and incidental to, the application shall be borne by the Company Liquidator. (3) Nothing in this section shall prejudice the operation of any enactment imposing penalties on a Company Liquidator in respect of any such default as aforesaid. **354. Meetings to ascertain wishes of creditors or contributories.—(1) In all matters relating to the** winding up of a company, the Tribunal may— 194 ----- (a) have regard to the wishes of creditors or contributories of the company, as proved to it by any sufficient evidence; (b) if it thinks fit for the purpose of ascertaining those wishes, direct meetings of the creditors or contributories to be called, held and conducted in such manner as the Tribunal may direct; and (c) appoint a person to act as chairman of any such meeting and to report the result thereof to the Tribunal. (2) While ascertaining the wishes of creditors under sub-section (1), regard shall be had to the value of each debt of the creditor. (3) While ascertaining the wishes of contributories under sub-section (1), regard shall be had to the number of votes which may be cast by each contributory. **355. Court, tribunal or person, etc., before whom affidavit may be sworn.—(1) Any affidavit** required to be sworn under the provisions, or for the purposes, of this Chapter may be sworn— (a) in India before any court, tribunal, judge or person lawfully authorised to take and receive affidavits; and (b) in any other country before any court, judge or person lawfully authorised to take and receive affidavits in that country or before an Indian diplomatic or consular officer. (2) All tribunals, judges, Justices, commissioners and persons acting judicially in India shall take judicial notice of the seal, stamp or signature, as the case may be, of any such court, tribunal, judge, person, diplomatic or consular officer, attached, appended or subscribed to any such affidavit or to any other document to be used for the purposes of this Chapter. **356. Powers of Tribunal to declare dissolution of company void.—(1) Where a company has been** dissolved, whether in pursuance of this Chapter or of section 232 or otherwise, the Tribunal may at any time within two years of the date of the dissolution, on application by the Company Liquidator of the company or by any other person who appears to the Tribunal to be interested, make an order, upon such terms as the Tribunal thinks fit, declaring the dissolution to be void, and thereupon such proceedings may be taken as if the company had not been dissolved. 1[(2) The Tribunal shall— (a) forward a copy of the order, within thirty days from the date thereof, to the Registrar who shall record the same; and (b) direct the Company Liquidator or the person on whose application the order was made, to file a certified copy of the order, within thirty days from the date thereof such further period as allowed by the Tribunal, with the Registrar who shall record the same.] 2[357. Commencement of winding up by Tribunal.—The winding up of a company by the Tribunal under this Act shall be deemed to commence at the time of the presentation of the petition for the winding up.] **358. Exclusion of certain time in computing period of limitation.—Notwithstanding anything in the** Limitation Act, 1963 (36 of 1963), or in any other law for the time being in force, in computing the period of limitation specified for any suit or application in the name and on behalf of a company which is being wound up by the Tribunal, the period from the date of commencement of the winding up of the company to a period of one year immediately following the date of the winding up order shall be excluded. PART IV.—Official Liquidators **359. Appointment of Official Liquidator.—(1) For the purposes of this Act, so far as it relates to the** winding up of companies by the Tribunal, the Central Government may appoint as many Official Liquidators, Joint, Deputy or Assistant Official Liquidators as it may consider necessary to discharge the functions of the Official Liquidator. 1. Subs.by Act 29 of 2020, s. 51, for sub-section (2) (w.e.f. 21-12-2020). 2. Subs. by Act 31 of 2016, s. 255 and the Eleventh Schedule, for section 357 (w.e.f. 15-11-2016). 195 ----- (2) The liquidators appointed under sub-section (1) shall be whole-time officers of the Central Government. (3) The salary and other allowances of the Official Liquidator, Joint Official Liquidator, Deputy Official Liquidator and Assistant Official Liquidator shall be paid by the Central Government. **360. Powers and functions of Official Liquidator.—(1) The Official Liquidator shall exercise such** powers and perform such duties as the Central Government may prescribe. (2) Without prejudice to the provisions of sub-section (1), the Official Liquidator may— (a) exercise all or any of the powers as may be exercised by a Company Liquidator under the provisions of this Act; and (b) conduct inquiries or investigations, if directed by the Tribunal or the Central Government, in respect of matters arising out of winding up proceedings. **361. Summary procedure for liquidation.—(1) Where the company to be wound up under this** Chapter, — (i) has assets of book value not exceeding one crore rupees; and (ii) belongs to such class or classes of companies as may be prescribed, the Central Government may order it to be wound up by summary procedure provided under this Part. (2) Where an order under sub-section (1) is made, the Central Government shall appoint the Official Liquidator as the liquidator of the company. (3) The Official Liquidator shall forthwith take into his custody or control all assets, effects and actionable claims to which the company is or appears to be entitled. (4) The Official Liquidator shall, within thirty days of his appointment, submit a report to the Central Government in such manner and form, as may be prescribed, including a report whether in his opinion, any fraud has been committed in promotion, formation or management of the affairs of the company or not. (5) On receipt of the report under sub-section (4), if the Central Government is satisfied that any fraud has been committed by the promoters, directors or any other officer of the company, it may direct further investigation into the affairs of the company and that a report shall be submitted within such time as may be specified. (6) After considering the investigation report under sub-section (5), the Central Government may order that winding up may be proceeded under Part I of this Chapter or under the provision of this Part. **362. Sale of assets and recovery of debts due to company.—(1) The Official Liquidator shall** expeditiously dispose of all the assets whether movable or immovable within sixty days of his appointment. (2) The Official Liquidator shall serve a notice within thirty days of his appointment calling upon the debtors of the company or the contributories, as the case may be, to deposit within thirty days with him the amount payable to the company. (3) Where any debtor does not deposit the amount under sub-section (2), the Central Government may, on an application made to it by the Official Liquidator, pass such orders as it thinks fit. (4) The amount recovered under this section by the Official Liquidator shall be deposited in accordance with the provisions of section 349. **363. Settlement of claims of creditors by Official Liquidator.—(1) The Official Liquidator within** thirty days of his appointment shall call upon the creditors of the company to prove their claims in such manner as may be prescribed, within thirty days of the receipt of such call. (2) The Official Liquidator shall prepare a list of claims of creditors in such manner as may be prescribed and each creditor shall be communicated of the claims accepted or rejected along with reasons to be recorded in writing. 196 ----- **364. Appeal by creditor.—(1) Any creditor aggrieved by the decision of the Official Liquidator under** section 363 may file an appeal before the Central Government within thirty days of such decision. (2) The Central Government may after calling the report from the Official Liquidator either dismiss the appeal or modify the decision of the Official Liquidator. (3) The Official Liquidator shall make payment to the creditors whose claims have been accepted. (4) The Central Government may, at any stage during settlement of claims, if considers necessary, refer the matter to the Tribunal for necessary orders. **365. Order of dissolution of company.—(1) The Official Liquidator shall, if he is satisfied that the** company is finally wound up, submit a final report to— (i) the Central Government, in case no reference was made to the Tribunal under sub-section (4) of section 364; and (ii) in any other case, the Central Government and the Tribunal. (2) The Central Government, or as the case may be, the Tribunal on receipt of such report shall order that the company be dissolved. (3) Where an order is made under sub-section (2), the Registrar shall strike off the name of the company from the register of companies and publish a notification to this effect. CHAPTER XXI PART I.— Companies Authorised to Register under this Act **366. Companies capable of being registered.—(1) For the purposes of this Part, the word “company”** includes any partnership firm, limited liability partnership, cooperative society, society or any other business entity formed under any other law for the time being in force which applies for registration under this Part. (2) With the exceptions and subject to the provisions contained in this section, any company formed, whether before or after the commencement of this Act, in pursuance of any Act of Parliament other than this Act or of any other law for the time being in force or being otherwise duly constituted according to law, and consisting of [1][two or more members], may at any time register under this Act as an unlimited company, or as a company limited by shares, or as a company limited by guarantee, in such manner as may be prescribed and the registration shall not be invalid by reason only that it has taken place with a view to the company’s being wound up: Provided that— (i) a company registered under the Indian Companies Act, 1882 (6 of 1882) or under the Indian Companies Act, 1913 (7 of 1913) or the Companies Act, 1956 (1 of 1956), shall not register in pursuance of this section; (ii) a company having the liability of its members limited by any Act of Parliament other than this Act or by any other law for the time being in force, shall not register in pursuance of this section as an unlimited company or as a company limited by guarantee; (iii) a company shall be registered in pursuance of this section as a company limited by shares only if it has a permanent paid-up or nominal share capital of fixed amount divided into shares, also of fixed amount, or held and transferable as stock, or divided and held partly in the one way and partly in the other, and formed on the principle of having for its members the holders of those shares or that stock, and no other persons; (iv) a company shall not register in pursuance of this section without the assent of a majority of such of its members as are present in person, or where proxies are allowed, by proxy, at a general meeting summoned for the purpose; (v) where a company not having the liability of its members limited by any Act of Parliament or any other law for the time being in force is about to register as a limited company, the majority required to assent as aforesaid shall consist of not less than three-fourths of the members present in person, or where proxies are allowed, by proxy, at the meeting; 1. Subs. by Act 1 of 2018, s. 75, for “seven or more members” (w.e.f. 15-8-2018). 197 ----- (vi) where a company is about to register as a company limited by guarantee, the assent to its being so registered shall be accompanied by a resolution declaring that each member undertakes to contribute to the assets of the company, in the event of its being wound up while he is a member, or within one year after he ceases to be a member, for payment of the debts and liabilities of the company or of such debts and liabilities as may have been contracted before he ceases to be a member, and of the costs, charges and expenses of winding up, and for the adjustment of the rights of the contributories among themselves, such amount as may be required, not exceeding a specified amount. 1[(vii) a company with less than seven members shall register as a private company.] (3) In computing any majority required for the purposes of sub-section (1), when a poll is demanded, regard shall be had to the number of votes to which each member is entitled according to the regulations of the company. **367. Certificate of registration of existing companies.—On compliance with the requirements of this** Chapter with respect to registration, and on payment of such fees, if any, as are payable under section 403, the Registrar shall certify under his hand that the company applying for registration is incorporated as a company under this Act, and in the case of a limited company that it is limited and thereupon the company shall be so incorporated. **368. Vesting of property on registration.—All property, movable and immovable (including** actionable claims), belonging to or vested in a company at the date of its registration in pursuance of this Part, shall, on such registration, pass to and vest in the company as incorporated under this Act for all the estate and interest of the company therein. **369. Saving of existing liabilities.—The registration of a company in pursuance of this Part shall not** affect its rights or liabilities in respect of any debt or obligation incurred, or any contract entered into, by, to, with, or on behalf of, the company before registration. **370. Continuation of pending legal proceedings.—All suits and other legal proceedings taken by or** against the company, or any public officer or member thereof, which are pending at the time of the registration of a company in pursuance of this Part, may be continued in the same manner as if the registration had not taken place: Provided that execution shall not issue against the property or persons of any individual member of the company on any decree or order obtained in any such suit or proceeding; but, in the event of the property of the company being insufficient to satisfy the decree or order, an order may be obtained for winding up the company [2][in accordance with the provisions of this Act or of the Insolvency and Bankruptcy Code, 2016 (31 of 2016)]. **371. Effect of registration under this Part.—(1) When a company is registered in pursuance of this** Part, sub-sections (2) to (7) shall apply. (2) All provisions contained in any Act of Parliament or any other law for the time being in force, or other instrument constituting or regulating the company, including, in the case of a company registered as a company limited by guarantee, the resolution declaring the amount of the guarantee, shall be deemed to be conditions and regulations of the company, in the same manner and with the same incidents as if so much thereof as would, if the company had been formed under this Act, have been required to be inserted in the memorandum, were contained in a registered memorandum, and the residue thereof were contained in registered articles. (3) All the provisions of this Act shall apply to the company and the members, contributories and creditors thereof, in the same manner in all respects as if it had been formed under this Act, subject as follows:— (a) Table F in Schedule I shall not apply unless and except in so far as it is adopted by special resolution; (b) the provisions of this Act relating to the numbering of shares shall not apply to any company whose shares are not numbered; 1. Ins. by Act 1 of 2018, s. 75 (w.e.f. 15-8-2018). 2. Ins. by Act 31 of 2016, s. 255 and the Eleventh Schedule (w.e.f. 15-11-2016). 198 ----- (c) in the event of the company being wound up, every person shall be a contributory, in respect of the debts and liabilities of the company contracted before registration, who is liable to pay or contribute to the payment of any debt or liability of the company contracted before registration, or to pay or contribute to the payment of any sum for the adjustment of the rights of the members among themselves in respect of any such debt or liability, or to pay or contribute to the payment of the costs, charges and expenses of winding up the company, so far as relates to such debts or liabilities as aforesaid; (d) in the event of the company being wound up, every contributory shall be liable to contribute to the assets of the company, in the course of the winding up, all sums due from him in respect of any such liability as aforesaid; and in the event of the death or insolvency of any contributory, the provisions of this Act with respect to the legal representatives of deceased contributories, or with respect to the assignees of insolvent contributories, as the case may be, shall apply. (4) The provisions of this Act with respect to— (a) the registration of an unlimited company as a limited company; (b) the powers of an unlimited company on registration as a limited company, to increase the nominal amount of its share capital and to provide that a portion of its share capital shall not be capable of being called-up except in the event of winding up; (c) the power of a limited company to determine that a portion of its share capital shall not be capable of being called-up except in the event of winding up, shall apply, notwithstanding anything in any Act of Parliament or any other law for the time being in force, or other instrument constituting or regulating the company. (5) Nothing in this section shall authorise the company to alter any such provisions contained in any instrument constituting or regulating the company as would, if the company had originally been formed under this Act, have been required to be contained in the memorandum and are not authorised to be altered by this Act. (6) None of the provisions of this Act (apart from those of section 242) shall derogate from any power of altering its constitution or regulations which may be vested in the company, by virtue of any Act of Parliament or any other law for the time being in force, or other instrument constituting or regulating the company. (7) In this section, the expression “instrument” includes deed of settlement, deed of partnership, or limited liability partnership. **372. Power of Court to stay or restrain proceedings.—The provisions of this Act** [1][or of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), as the case may be,] with respect to staying and restraining suits and other legal proceedings against a company at any time after the presentation of a petition for winding up and before the making of a winding up order, shall, in the case of a company registered in pursuance of this Part, where the application to stay or restrain is by a creditor, extend to suits and other legal proceedings against any contributory of the company. **373. Suits stayed on winding up order.—Where an order has been made for winding up, or a** provisional liquidator has been appointed for, a company registered in pursuance of this Part, no suit or other legal proceeding shall be proceeded with or commenced against the company or any contributory of the company in respect of any debt of the company, except by leave of the Tribunal and except on such terms as the Tribunal may impose. **374. Obligations of companies registering under this Part.—Every company which is seeking** registration under this Part shall,— (a) ensure that secured creditors of the company, prior to its registration under this Part, have either consented to or have given their no objection to company's registration under this Part; (b) publish in a newspaper, advertisement one in English and one in vernacular language in such form as may be prescribed giving notice about registration under this Part, seeking objections and address them suitably; 1. The proviso ins. by Act 31 of 2016, s. 255 and the Eleventh Schedule (w.e.f. 15-11-2016). 199 ----- (c) file an affidavit, duly not arised, from all the members or partners to provide that in the event of registration under this Part, necessary documents or papers shall be submitted to the registering or other authority with which the company was earlier registered, for its dissolution as partnership firm, limited liability partnership, cooperative society, society or any other business entity, as the case may be. (d) comply with such other conditions as may be prescribed. 1[Provided that upon registration as a company under this Part a limited liability partnership incorporated under the Limited Liability Partnership Act, 2008 (6 of 2009) shall be deemed to have been dissolved under that Act without any further act or deed.] PART II.—Winding up of unregistered companies **375. Winding up of unregistered companies.—(1) Subject to the provisions of this Part, any** unregistered company may be wound up under this Act, in such manner as may be prescribed, and all the provisions of this Act, with respect to winding up shall apply to an unregistered company, with the exceptions and additions mentioned in sub-sections (2) to (4). (2) No unregistered company shall be wound up under this Act voluntarily. (3) An unregistered company may be wound up under the following circumstances, namely:— (a) if the company is dissolved, or has ceased to carry on business, or is carrying on business only for the purpose of winding up its affairs; (b) if the company is unable to pay its debts; (c) if the Tribunal is of opinion that it is just and equitable that the company should be wound up. (4) An unregistered company shall, for the purposes of this Act, be deemed to be unable to pay its debts— (a) if a creditor, by assignment or otherwise, to whom the company is indebted in a sum exceeding one lakh rupees then due, has served on the company, by leaving at its principal place of business, or by delivering to the secretary, or some director, manager or principal officer of the company, or by otherwise serving in such manner as the Tribunal may approve or direct, a demand under his hand requiring the company to pay the sum so due, and the company has, for three weeks after the service of the demand, neglected to pay the sum or to secure or compound for it to the satisfaction of the creditor; (b) if any suit or other legal proceeding has been instituted against any member for any debt or demand due, or claimed to be due, from the company, or from him in his character as a member, and notice in writing of the institution of the suit or other legal proceeding having been served on the company by leaving the same at its principal place of business or by delivering it to the secretary, or some director, manager or principal officer of the company or by otherwise serving the same in such manner as the Tribunal may approve or direct, the company has not, within ten days after service of the notice,— (i) paid, secured or compounded for the debt or demand; (ii) procured the suit or other legal proceeding to be stayed; or (iii) indemnified the defendant to his satisfaction against the suit or other legal proceeding, and against all costs, damages and expenses to be incurred by him by reason of the same; (c) if execution or other process issued on a decree or order of any Court or Tribunal in favour of a creditor against the company, or any member thereof as such, or any person authorised to be sued as nominal defendant on behalf of the company, is returned unsatisfied in whole or in part; (d) if it is otherwise proved to the satisfaction of the Tribunal that the company is unable to pay its debts. _Explanation.—For the purposes of this Part, the expression “unregistered company”—_ 1. The proviso ins. by Act 1 of 2018, s. 76 (w.e.f. 15-8-2018). 200 ----- (a) shall not include— (i) a railway company incorporated under any Act of Parliament or other Indian law or any Act of Parliament of the United Kingdom; (ii) a company registered under this Act; or (iii) a company registered under any previous companies law and not being a company the registered office whereof was in Burma, Aden, Pakistan immediately before the separation of that country from India; and (b) save as aforesaid, shall include any partnership firm, limited liability partnership or society or co-operative society, association or company consisting of more than seven members at the time when the petition for winding up the partnership firm, limited liability partnership or society or co-operative society, association or company, as the case may be, is presented before the Tribunal. **376. Power to wind up foreign companies, although dissolved.— Where a body corporate** incorporated outside India which has been carrying on business in India, ceases to carry on business in India, it may be wound up as an unregistered company under this Part, notwithstanding that the body corporate has been dissolved or otherwise ceased to exist as such under or by virtue of the laws of the country under which it was incorporated. **377. Provisions of Chapter cumulative.—(1) The provisions of this Part, with respect to unregistered** companies shall be in addition to and not in derogation of, any provisions hereinbefore in this Act contained with respect to the winding up of companies by the Tribunal. (2) The Tribunal or Official Liquidator may exercise any powers or do any act in the case of unregistered companies which might be exercised or done by the Tribunal or Official Liquidator in winding up of companies formed and registered under this Act: Provided that an unregistered company shall not, except in the event of its being wound up, be deemed to be a company under this Act, and then only to the extent provided by this Part. **378. Saving and construction of enactments conferring power to wind up partnership firm,** **association or company, etc., in certain cases.—Nothing in this Part, shall affect the operation of any** enactment which provides for any partnership firm, limited liability partnership or society or co-operative society, association or company being wound up, or being wound up as a company or as an unregistered company, under the Companies Act, 1956 (1 of 1956), or any Act repealed by that Act: Provided that references in any such enactment to any provision contained in the Companies Act, 1956 (1 of 1956) or in any Act repealed by that Act shall be read as references to the corresponding provision, if any, contained in this Act. 1[CHAPTER XXIA PRODUCER COMPANIES PART I PRELIMINARY **378A. Definitions.— In this Chapter, unless the context otherwise requires,—** (a) “active Member” means a Member who fulfils the quantum and period of patronage of the Producer Company as may be required by the articles; (b) “Chief Executive” means an individual appointed as such under sub-section (1) of section 378W; (c) “inter-State co-operative society” means a multi-State co-operative society as defined in clause (p) of section 3 of the Multi-State Co-operative Societies Act, 2002 (39 of 2002) and includes any co 1. Ins. by Act 29 of 2020, s. 52 (w.e.f. 11-2-2021). 201 ----- operative society registered under any other law for the time being in force, which has, subsequent to its formation, extended any of its objects to more than one State by enlisting the participation of persons or by extending any of its activities outside the State, whether directly or indirectly or through an institution of which it is a constituent; (d) “limited return” means the maximum dividend as may be specified by the articles; (e) “Member” means a person or Producer Institution (whether incorporated or not) admitted as a Member of a Producer Company and who retains the qualifications necessary for continuance as such; (f) “mutual assistance principles” means the principles set out in sub-section (2) of section 378G; (g) “officer” includes any director or Chief Executive or Secretary or any person in accordance with whose directions or instructions part or whole of the business of the Producer Company is carried on; (h) “patronage” means the use of services offered by the Producer Company to its Members by participation in its business activities; (i) “patronage bonus” means payments made by a Producer Company out of its surplus income to the Members in proportion to their respective patronage; (j) “primary produce” means — (i) produce of farmers, arising from agriculture (including animal husbandry, horticulture, floriculture, pisciculture, viticulture, forestry, forest products, re-vegetation, bee raising and farming plantation products), or from any other primary activity or service which promotes the interest of the farmers or consumers; or (ii) produce of persons engaged in handloom, handicraft and other cottage industries; or (iii) any product resulting from any of the above activities, including by-products of such products; or (iv) any product resulting from an ancillary activity that may assist or promote any of the aforesaid activities or anything ancillary thereto; or (v) any activity which is intended to increase the production of anything referred to in sub-clauses (i) to (iv) or improve the quality thereof; (k) “producer” means any person engaged in any activity connected with or relatable to any primary produce; (l) “Producer Company” means a body corporate having objects or activities specified in section 378B and registered as Producer Company under this Act or under the Companies Act, 1956 (1 of 1956); (m) “Producer Institution” means a Producer Company or any other institution having only producer or producers or Producer Company or Producer Companies as its member whether incorporated or not having any of the objects referred to in section 378B and which agrees to make use of the services of the Producer Company or Producer Companies as provided in its articles; (n) “withheld price” means part of the price due and payable for goods supplied by any Member to the Producer Company; and as withheld by the Producer Company for payment on a subsequent date. 202 ----- PART II INCORPORATION OF PRODUCER COMPANIES AND OTHER MATTERS **378B. Objects of Producer Company.—(1) The objects of the Producer Company shall relate to all** or any of the following matters, namely:— (a) production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import of goods or services for their benefit: Provided that the Producer Company may carry on any of the activities specified in this clause either by itself or through other institution; (b) processing including preserving, drying, distilling, brewing, vinting, canning and packaging of produce of its Members; (c) manufacture, sale or supply of machinery, equipment or consumables mainly to its Members; (d) providing education on the mutual assistance principles to its Members and others; (e) rendering technical services, consultancy services, training, research and development and all other activities for the promotion of the interests of its Members; (f) generation, transmission and distribution of power, revitalisation of land and water resources, their use, conservation and communications relatable to primary produce; (g) insurance of producers or their primary produce; (h) promoting techniques of mutuality and mutual assistance; (i) welfare measures or facilities for the benefit of Members as may be decided by the Board; (j) any other activity, ancillary or incidental to any of the activities referred to in clauses (a) to (i) or other activities which may promote the principles of mutuality and mutual assistance amongst the Members in any other manner; (k) financing of procurement, processing, marketing or other activities specified in clauses (a) to (j) which include extending of credit facilities or any other financial services to its Members.’’. (2) Every Producer Company shall deal primarily with the produce of its active Members for carrying out any of its objects specified in this section. **378C. Formation of Producer Company and its registration.—(1) Any ten or more individuals,** each of them being a producer or any two or more Producer Institutions, or a combination of ten or more individuals and Producer Institutions, desirous of forming a Producer Company having its objects specified in section 378B and otherwise complying with the requirements of this Chapter and the provisions of this Act in respect of registration, may form an incorporated company as a Producer Company under this Act. (2) If the Registrar is satisfied that all the requirements of this Act have been complied with in respect of registration and matters precedent and incidental thereto, he shall, within thirty days of the receipt of the documents required for registration, register the memorandum, the articles and other documents, if any, and issue a certificate of incorporation under this Act. (3) A Producer Company so formed shall have the liability of its Members limited by the memorandum to the amount, if any, unpaid on the shares respectively held by them and be termed a company limited by shares. (4) The Producer Company may reimburse to its promoters all other direct costs associated with the promotion and registration of the company including registration, legal fees, printing of a memorandum 203 ----- and articles and the payment thereof shall be subject to the approval at its first general meeting of the Members. (5) On registration under sub-section (2), the Producer Company shall become a body corporate as if it is a private limited company to which the provisions contained in this Chapter apply, without, however, any limit to the number of Members thereof, and the Producer Company shall not, under any circumstance, whatsoever, become or be deemed to become a public limited company under this Act. **378D. Membership and voting rights of Members of Producer Company.— (1)(a) In a case where** the membership consists solely of individual Members, the voting rights shall be based on a single vote for every Member, irrespective of his shareholding or patronage of the Producer Company. (b) In a case where the membership consists of Producer Institutions only, the voting rights of such Producer Institutions shall be determined on the basis of their participation in the business of the Producer Company in the previous year, as may be specified by articles: Provided that during the first year of registration of a Producer Company, the voting rights shall be determined on the basis of the shareholding by such Producer Institutions. (c) In a case where the membership consists of individuals and Producer Institutions, the voting rights shall be computed on the basis of a single vote for every Member. (2) The articles of any Producer Company may provide for the conditions, subject to which a Member may continue to retain his membership, and the manner in which voting rights shall be exercised by the Members. (3) Notwithstanding anything contained in sub-section (1) or sub-section (2), any Producer Company may, if so authorised by its articles, restrict the voting rights to active Members, in any special or general meeting. (4) No person, who has any business interest which is in conflict with business of the Producer Company, shall become a Member of that Company. (5) A Member, who acquires any business interest which is in conflict with the business of the Producer Company, shall cease to be a Member of that Company and be removed as a Member in accordance with the articles. **378E. Benefits to Members.—(1) Subject to the provisions made in articles, every Member shall** initially receive only such value for the produce or products pooled and supplied as the Board of Producer Company may determine, and the withheld price may be disbursed later in cash or in kind or by allotment of equity shares, in proportion to the produce supplied to the Producer Company during the financial year to such extent and in such manner and subject to such conditions as may be decided by the Board. (2) Every Member shall, on the share capital contributed, receive only a limited return: Provided that every such Member may be allotted bonus shares in accordance with the provisions contained in section 378ZJ. (3) The surplus if any, remaining after making provision for payment of limited return and reserves referred to in section 378ZI, may be disbursed as patronage bonus, amongst the Members, in proportion to their participation in the business of the Producer Company, either in cash or by way of allotment of equity shares, or both, as may be decided by the Members at the general meeting. **378F. Memorandum of Producer Company.—The memorandum of association of every Producer** Company shall state— (a) the name of the company with "Producer Company Limited" as the last words of the name of such Company; (b) the State in which the registered office of the Producer Company is to situate; (c) the main objects of the Producer Company shall be one or more of the objects specified in section 378B; 204 ----- (d) the names and addresses of the persons who have subscribed to the memorandum; (e) the amount of share capital with which the Producer Company is to be registered and division thereof into shares of a fixed amount; (f) the names, addresses and occupations of the subscribers being producers, who shall act as the first directors in accordance with sub-section (2) of section 378J; (g) that the liability of its members is limited; (h) against the subscriber's name, the number of shares each subscriber takes: Provided that no subscriber shall take less than one share; (i) that in case the objects of the Producer Company are not confined to one State, the States to whose territories the objects extend. **378G. Articles of association.—(1) There shall be presented, for registration to the Registrar of the** State to which the registered office of the Producer Company is, stated by the memorandum of association, to be situate— (a) memorandum of the Producer Company; (b) its articles duly signed by the subscribers to the memorandum. (2) The articles shall contain the following mutual assistance principles, namely:— (a) the membership shall be voluntary and available, to all eligible persons who, can participate or avail of the facilities or services of the Producer Company, and are willing to accept the duties of membership; (b) each Member shall, save as otherwise provided in this Chapter, have only a single vote irrespective of the shareholding; (c) the Producer Company shall be administered by a Board consisting of persons elected or appointed as directors in the manner consistent with the provisions of this Chapter and the Board shall be accountable to the Members; (d) particulars on limited return on share capital; (e) the surplus arising out of the operations of the Producer Company shall be distributed in an equitable manner by— (i) providing for the development of the business of the Producer Company; (ii) providing for common facilities; and (iii) distributing amongst the Members, as may be admissible in proportion to their respective participation in the business; (f) provision for the education of Members, employees and others, on the principles of mutuality and techniques of mutual assistance; (g) the Producer Company shall actively co-operate with other Producer Companies (and other organisations following similar principles) at local, national or international level so as to best serve the interest of their Members and the communities it purports to serve. (3) Without prejudice to the generality of the foregoing provisions of sub-sections (1) and (2), the articles shall contain the following provisions, namely:— (a) the qualifications for membership, the conditions for continuance or cancellation of membership and the terms, conditions and procedure for transfer of shares; (b) the manner of ascertaining the patronage and voting right based on patronage; (c) subject to the provisions contained in sub-section (1) of section 378N, the manner of constitution of the Board, its powers and duties, the minimum and maximum number of directors, manner of election 205 ----- and appointment of directors and retirement by rotation, qualifications for being elected or continuance as such and the terms of office of the said directors, their powers and duties, conditions for election or co-option of directors, method of removal of directors and the filling up of vacancies on the Board, and the manner and the terms of appointment of the Chief Executive; (d) the election of the Chairman, term of office of directors and the Chairman, manner of voting at the general or special meetings of Members, procedure for voting, by directors at meetings of the Board, powers of the Chairman and the circumstances under which the Chairman may exercise a casting vote; (e) the circumstances under which, and the manner in which, the withheld price is to be determined and distributed; (f) the manner of disbursement of patronage bonus in cash or by issue of equity shares, or both; (g) the contribution to be shared and related matters referred to in sub-section (2) of section 378ZI; (h) the matters relating to issue of bonus shares out of general reserves as set out in section 378ZJ; (i) the basis and manner of allotment of equity shares of the Producer Company in lieu of the whole or part of the sale proceeds of produce or products supplied by the Members; (j) the amount of reserves, sources from which funds may be raised, limitation on raising of funds, restriction on the use of such funds and the extent of debt that may be contracted and the conditions thereof; (k) the credit, loans or advances which may be granted to a Member and the conditions for the grant of the same; (l) the right of any Member to obtain information relating to general business of the company; (m) the basis and manner of distribution and disposal of funds available after meeting liabilities in the event of dissolution or liquidation of the Producer Company; (n) the authorisation for division, amalgamation, merger, creation of subsidiaries and the entering into joint ventures and other matters connected therewith; (o) laying of the memorandum and articles of the Producer Company before a special general meeting to be held within ninety days of its registration; (p) any other provision, which the Members may, by special resolution recommend to be included in the articles. **378H. Amendment of memorandum.—(1) A Producer Company shall not alter the conditions** contained in its memorandum except in the cases, by the mode and to the extent for which express provision is made in this Act. (2) A Producer Company may, by special resolution, not inconsistent with section 378B, alter its objects specified in its memorandum. (3) A copy of the amended memorandum, together with a copy of the special resolution duly certified by two directors, shall be filed with the Registrar within thirty days from the date of adoption of any resolution referred to in sub-section (2): Provided that in the case of transfer of the registered office of a Producer Company from the jurisdiction of one Registrar to another, certified copies of the special resolution certified by two directors shall be filed with both the Registrars within thirty days, and each Registrar shall record the same, and thereupon the Registrar from whose jurisdiction the office is transferred, shall forthwith forward to the other Registrar all documents relating to the Producer Company. (4) The alteration of the provisions of memorandum relating to the change of the place of its registered office from one State to another shall not take effect unless it is approved by the Central Government on an application in such form and manner as may be prescribed. 206 ----- **378-I. Amendment of articles.— (1) Any amendment of the articles shall be proposed by not less than** two-thirds of the elected directors or by not less than one-third of the Members of the Producer Company, and adopted by the Members by a special resolution. (2) A copy of the amended articles together with the copy of the special resolution, both duly certified by two directors, shall be filed with the Registrar within fifteen days from the date of its adoption. **378J. Option to inter-State co-operative societies to become Producer Companies.—(1)** Notwithstanding anything contained in sub-section (1) of section 378C, any inter-State co-operative society with objects not confined to one State may make an application to the Registrar for registration as Producer Company under this Chapter. (2) Every application under sub-section (1) shall be accompanied by— (a) a copy of the special resolution, of not less than two-thirds of total members of inter-State co operative society, for its incorporation as a Producer Company under this Act; (b) a statement showing— (i) names and addresses or the occupation of the directors and the Chief Executive, if any, by whatever name called, of such co-operative; and (ii) list of members of such inter-State co-operative society; (c) a statement indicating that the inter-State co-operative society is engaged in any one or more of the objects specified in section 378B; (d) a declaration by two or more directors of the inter-State co-operative society certifying that particulars given in clauses (a) to (c) are correct. (3) When an inter-State co-operative society is registered as a Producer Company, the words “Producer Company Limited” shall form part of its name with any word or expression to show its identity preceding it. (4) On compliance with the requirements of sub-sections (1) to (3), the Registrar shall, within a period of thirty days of the receipt of application, certify under his hand that the inter-State co-operative society applying for registration is registered and thereby incorporated as a Producer Company under this Chapter. (5) A co-operative society formed by producers, by federation or union of co-operative societies of producers or co-operatives of producers, registered under any law for the time being in force which has extended its objects outside the State, either directly or through a union or federation of co-operatives of which it is a constituent, as the case may be, and any federation or unions of such co-operatives, which has so extended any of its objects or activities outside the State, shall be eligible to make an application under sub-section (1) and to obtain registration as a Producer Company under this Chapter. (6) The inter-State co-operative society shall, upon registration under sub-section (1), stand transformed into a Producer Company, and thereafter shall be governed by the provisions of this Chapter to the exclusion of the law by which it was earlier governed, save in so far as anything done or omitted to be done before its registration as a Producer Company, and notwithstanding anything contained in any other law for the time being in force, no person shall have any claim against the co-operative institution or the company by reason of such conversion or transformation. (7) Upon registration as a Producer Company, the Registrar of Companies who registers the company shall forthwith intimate the Registrar with whom the erstwhile inter-State co-operative society was earlier registered for deletion of the society from its register. **378K. Effect of incorporation of Producer Company.—Every shareholder of the inter-State co-** operative society immediately before the date of registration of Producer Company (hereafter in this Chapter referred to as the date of transformation) shall be deemed to be registered on and from that date as a shareholder of the Producer Company to the extent of the face value of the shares held by such shareholder. 207 ----- **378L. Vesting of undertaking in Producer Company.—(1) All properties and assets, movable and** immovable, of, or belonging to, the inter-State co-operative society as on the date of transformation, shall vest in the Producer Company. (2) All the rights, debts, liabilities, interests, privileges and obligations of the inter-State co-operative society as on the date of transformation shall stand transferred to, and be the rights, debts, liabilities, interests, privileges and obligations of, the Producer Company. (3) Without prejudice to the provisions contained in sub-section (2), all debts, liabilities and obligations incurred, all contracts entered into and all matters and things engaged to be done by, with or for, the society as on the date of transformation for or in connection with their purposes, shall be deemed to have been incurred, entered into, or engaged to be done by, with or for, the Producer Company. (4) All sums of money due to the inter-State co-operative society immediately before the date of transformation, shall be deemed to be due to the Producer Company. (5) Every organisation, which was being managed immediately before the date of transformation by the inter-State co-operative society shall be managed by the Producer Company for such period, to such extent and in such manner as the circumstances may require. (6) Every organisation which was getting financial, managerial or technical assistance from the inter State co-operative society, immediately before the date of transformation, may continue to be given financial, managerial or technical assistance, as the case may be, by the Producer Company, for such period, to such extent and in such manner as that company may deem fit. (7) The amount representing the capital of the erstwhile inter-State co-operative society shall form part of the capital of the Producer Company. (8) Any reference to the inter-State co-operative society in any law other than this Act or in any contract or other instrument, shall be deemed to be reference to the Producer Company. (9) If, on the date of transformation, there is pending any suit, arbitration, appeal or other legal proceeding of whatever nature by or against the inter-State co-operative society, the same shall not abate, be discontinued or be in any way prejudicially affected by reason of the incorporation of the Producer Company under section 378C or transformation of the inter-State co-operative society as a Producer Company under section 378J, as the case may be, but the suit, arbitration, appeal or other proceeding, may be continued, prosecuted and enforced by or against the Producer Company in the same manner and to the same extent as it would have, or may have been continued, prosecuted and enforced by or against the interState co-operative society as if the provisions contained in this Chapter had not come into force. **378M. Concession etc., to be deemed to have been granted to Producer Company.—With effect** from the date of transformation, all fiscal and other concessions, licences, benefits, privileges and exemptions granted to the inter-State co-operative society in connection with the affairs and business of the inter-State co-operative society under any law for the time being in force shall be deemed to have been granted to the Producer Company. **378N. Provisions in respect of officers and other employees of inter-State co-operative society.—** (1) Notwithstanding anything contained in section 378-O, all the directors in the inter-State co-operative society before the incorporation of the Producer Company shall continue in office for a period of one year from the date of transformation and in accordance with the provisions of this Act. (2) Every officer or other employee of the inter-State co-operative society (except a director of the Board, Chairman or Managing Director) serving in its employment immediately before the date of transformation shall, in so far as such officer or other employee is employed in connection with the interState co-operative society which has vested in the Producer Company by virtue of this Act, become, as from the date of transformation, an officer or, as the case may be, other employee of the Producer Company and shall hold his office or service therein by the same tenure, at the same remuneration, upon the same terms and conditions, with the same obligations and with the same rights and privileges as to leave, leave travel concession, welfare scheme, medical benefit scheme, insurance, provident fund, other funds, retirement, voluntary retirement, gratuity and other benefits as he would have held under the erstwhile inter 208 ----- State co-operative society if its undertaking had not vested in the Producer Company and shall continue to do so as an officer or, as the case may be, other employee of the Producer Company. (3) Where an officer or other employee of the inter-State co-operative society opts under sub-section (2) not to be in employment or service of the Producer Company, such officer or other employee shall be deemed to have resigned. (4) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1947) or in any other law for the time being in force, the transfer of the services of any officer or other employee of the inter-State co-operative society to the Producer Company shall not entitle such officer or other employee to any compensation under this Act or under any other law for the time being in force and no such claim shall be entertained by any court, tribunal or other authority. (5) The officers and other employees who have retired before the date of transformation from the service of the inter-State co-operative society and are entitled to any benefits, rights or privileges, shall be entitled to receive the same benefits, rights or privileges from the Producer Company. (6) The trusts of the provident fund or the gratuity fund of the inter-State co-operative society and any other bodies created for the welfare of officers or employees shall continue to discharge functions in the Producer Company as was being done hitherto in the inter-State co-operative society and any tax exemption granted to the provident fund or the gratuity fund would continue to be applied to the Producer Company. (7) Notwithstanding anything contained in this Act or in any other law for the time being in force or in the regulations of the inter-State co-operative society, no director of the Board, Chairman, Managing Director or any other person entitled to manage the whole or substantial part of the business and affairs of the inter-State co-operative society shall be entitled to any compensation against the inter-State co-operative society or the Producer Company for the loss of office or for the premature termination of any contract of management entered into by him with the inter-State co-operative society. PART III MANAGEMENT OF PRODUCER COMPANY **378-O. Number of directors.—Every Producer Company shall have at least five and not more than** fifteen directors: Provided that in the case of an inter-State co-operative society incorporated as a Producer Company, such company may have more than fifteen directors for a period of one year from the date of its incorporation as a Producer Company. **378P. Appointment of directors.— (1)Save as otherwise provided in section 378N, the Members who** sign the memorandum and the articles may designate therein the Board of Directors, not less than five, who shall govern the affairs of the Producer Company until the directors are elected in accordance with the provisions of this section. (2) The election of directors shall be conducted within a period of ninety days of the registration of the Producer Company: Provided that in the case of an inter-State co-operative society which has been registered as a Producer Company under sub-section (4) of section 378J in which at least five directors [including the directors continuing in office under sub-section (1) of section 378N] hold office as such on the date of registration of such company, the provisions of this sub-section shall have effect as if for the words "ninety days", the words "three hundred and sixty-five days" had been substituted. (3) Every person shall hold office of a director for a period not less than one year but not exceeding five years as may be specified in the articles. (4) Every director, who retires in accordance with the articles, shall be eligible for re-appointment as a director. (5) Save as otherwise provided in sub-section (2), the directors of the Board shall be elected or appointed by the Members in the annual general meeting. 209 ----- (6) The Board may co-opt one or more expert directors or an additional director not exceeding one fifth of the total number of directors or appoint any other person as additional director for such period as the Board may deem fit: Provided that the expert directors shall not have the right to vote in the election of the Chairman but shall be eligible to be elected as Chairman, if so provided by its articles: Provided further that the maximum period, for which the expert director or the additional director holds office, shall not exceed such period as may be specified in the articles. **378Q. Vacation of office by directors.— (1) The office of the director of a Producer Company shall** become vacant if,— (a) he is convicted by a court of any offence involving moral turpitude and sentenced in respect thereof to imprisonment for not less than six months; (b) the Producer Company, in which he is a director, has made a default in repayment of any advances or loans taken from any company or institution or any other person and such default continues for ninety days; (c) he has made a default in repayment of any advances or loans taken from the Producer Company in which he is a director; (d) the Producer Company, in which he is a director— (i) has not filed the annual accounts and annual return for any continuous three financial years; or (ii) has failed to, repay its deposit or withheld price or patronage bonus or interest thereon on due date, or pay dividend and such failure continues for one year or more; (e) default is made in holding election for the office of director, in the Producer Company in which he is a director, in accordance with the provisions of this Act and articles; (f) the annual general meeting or extraordinary general meeting of the Producer Company, in which he is a director, is not called in accordance with the provisions of this Act except due to natural calamity or such other reason. (2) The provisions of sub-section (1) shall, as far as may be, apply to the director of a Producer Institution which is a member of a Producer Company. **378R. Powers and functions of Board.—(1) Subject to the provisions of this Act and articles, the** Board of Directors of a Producer Company shall exercise all such powers and to do all such acts and things, as that Company is authorised so to do. (2) In particular and without prejudice to the generality of the foregoing powers, such powers may include all or any of the following matters, namely:— (a) determination of the dividend payable; (b) determination of the quantum of withheld price and recommend patronage to be approved at general meeting; (c) admission of new Members; (d) pursue and formulate the organisational policy, objectives, establish specific long-term and annual objectives, and approve corporate strategies and financial plans; (e) appointment of a Chief Executive and such other officers of the Producer Company, as may be specified in the articles; (f) exercise superintendence, direction and control over Chief Executive and other officers appointed by it; 210 ----- (g) cause proper books of account to be maintained; prepare annual accounts to be placed before the annual general meeting with the report of the auditor and the replies on qualifications, if any, made by the auditors; (h) acquisition or disposal of property of the Producer Company in its ordinary course of business; (i) investment of the funds of the Producer Company in the ordinary course of its business; (j) sanction any loan or advance, in connection with the business activities of the Producer Company to any Member, not being a director or his relative; (k) take such other measures or do such other acts as may be required in the discharge of its functions or exercise of its powers. (3) All the powers specified in sub-sections (1) and (2) shall be exercised by the Board, by means of resolution passed at its meeting on behalf of the Producer Company. _Explanation.—For the removal of doubts, it is hereby declared that a director or a group of directors,_ who do not constitute the Board, shall not exercise any of the powers exercisable by it. **378S. Matters to be transacted at general meeting.— The Board of Directors of a Producer Company** shall exercise the following powers on behalf of that Company, and it shall do so only by means of resolutions passed at the annual general meeting of its Members, namely:— (a) approval of budget and adoption of annual accounts of the Producer Company; (b) approval of patronage bonus; (c) issue of bonus shares; (d) declaration of limited return and decision on the distribution of patronage; (e) specify the conditions and limits of loans that may be given by the Board to any director; and (f) approval of any transaction of the nature as is to be reserved in the articles for approval by the Members. **378T. Liability of directors.— (1) When the directors vote for a resolution, or approve by any other** means, anything done in contravention of the provisions of this Act or any other law for the time being in force or articles, they shall be jointly and severally liable to make good any loss or damage suffered by the Producer Company. (2) Without prejudice to the provisions contained in sub-section (1), the Producer Company shall have the right to recover from its director— (a) where such director has made any profit as a result of the contravention specified in sub-section (1), an amount equal to the profit so made; (b) where the Producer Company incurred a loss or damage as a result of the contravention specified in sub-section (1), an amount equal to that loss or damage. (3) The liability imposed under this section shall be in addition to and not in derogation of a liability imposed on a director under this Act or any other law for the time being in force. **378U. Committee of directors.—(1) The Board may constitute such number of committees as it may** deem fit for the purpose of assisting the Board in the efficient discharge of its functions: Provided that the Board shall not delegate any of its powers or assign the powers of the Chief Executive, to any committee. (2) A committee constituted under sub-section (1) may, with the approval of the Board, co-opt such number of persons as it deems fit as members of the committee: 211 ----- Provided that the Chief Executive appointed under section 378W or a director of the Producer Company shall be a member of such committee. (3) Every such committee shall function under the general superintendence, direction and control of the Board, for such duration, and in such manner as the Board may direct. (4) The fee and allowances to be paid to the members of the committee shall be such as may be determined by the Board. (5) The minutes of each meeting of the committee shall be placed before the Board at its next meeting. **378V.Meetings of Board and quorum.—(1) A meeting of the Board shall be held not less than once** in every three months and at least four such meetings shall be held in every year. (2) Notice of every meeting of the Board of Directors shall be given in writing to every director for the time being in India, and at his usual address in India to every other director. (3) The Chief Executive shall give notice as aforesaid not less than seven days prior to the date of the meeting of the Board and if he fails to do so, he shall be liable to a penalty of five thousand rupees: Provided that a meeting of the Board may be called at shorter notice and the reasons thereof shall be recorded in writing by the Board. (4) The quorum for a meeting of the Board shall be one-third of the total strength of directors, subject to a minimum of three. (5) Save as provided in the articles, directors including the co-opted director, may be paid such fees and allowances for attendance at the meetings of the Board, as may be decided by the Members in the general meeting. **378W. Chief Executive and his functions.— (1) Every Producer Company shall have a full time Chief** Executive, by whatever name called, to be appointed by the Board from amongst persons other than Members. (2) The Chief Executive shall be ex officio director of the Board and such director shall not retire by rotation. (3) Save as otherwise provided in articles, the qualifications, experience and the terms and conditions of service of the Chief Executive shall be such as may be determined by the Board. (4) The Chief Executive shall be entrusted with substantial powers of management as the Board may determine. (5) Without prejudice to the generality of sub-section (4), the Chief Executive may exercise the powers and discharge the functions, namely:— (a) do administrative acts of a routine nature including managing the day-to-day affairs of the Producer Company; (b) operate bank accounts or authorise any person, subject to the general or special approval of the Board in this behalf, to operate the bank account; (c) make arrangements for safe custody of cash and other assets of the Producer Company; (d) sign such documents as may be authorised by the Board, for and on behalf of the company; (e) maintain proper books of account; prepare annual accounts and audit thereof; place the audited accounts before the Board and in the annual general meeting of the Members; (f) furnish Members with periodic information to apprise them of the operation and functions of the Producer Company; (g) make appointments to posts in accordance with the powers delegated to him by the Board; (h) assist the Board in the formulation of goals, objectives, strategies, plans and policies; 212 ----- (i) advise the Board with respect to legal and regulatory matters concerning the proposed and ongoing activities and take necessary action in respect thereof; (j) exercise the powers as may be necessary in the ordinary course of business; (k) discharge such other functions, and exercise such other powers, as may be delegated by the Board. (6) The Chief Executive shall manage the affairs of the Producer Company under the general superintendence, direction and control of the Board and be accountable for the performance of the Producer Company. **378X. Secretary of Producer Company.— (1) Every Producer Company having an average annual** turnover exceeding five crore rupees or such other amount as may be prescribed in each of three consecutive financial years shall have a whole-time secretary. (2) No individual shall be appointed as whole-time secretary unless he possesses membership of the Institute of Company Secretaries of India constituted under the Company Secretaries Act, 1980 (56 of 1980). (3) If a Producer Company fails to comply with the provisions of sub-section (1), the Company and every officer of the Company who is in default, shall be liable to a penalty of one hundred rupees for every day during which the default continues subject to a maximum of rupees one lakh: Provided that in any proceedings against a person in respect of a default under this sub-section, no penalty shall be imposed if it is shown that all reasonable efforts to comply with the provisions of sub-section (1) were taken or that the financial position of the Company was such that it was beyond its capacity to engage a whole-time secretary. **378Y. Quorum.— Unless the articles require a larger number, one-fourth of the total membership shall** constitute the quorum at a general meeting. **378Z. Voting rights.— Save as otherwise provided in sub-sections (1) and (3) of section 378D, every** Member shall have one vote and in the case of equality of votes, the Chairman or the person presiding shall have a casting vote except in the case of election of the Chairman. PART IV GENERAL MEETINGS **37ZA. Annual general meetings.—(1) Every Producer Company shall in each year, hold, in addition** to any other meetings, a general meeting, as its annual general meeting and shall specify the meeting as such in the notices calling it, and not more than fifteen months shall elapse between the date of one annual general meeting of a Producer Company and that of the next: Provided that the Registrar may, for any special reason, permit extension of the time for holding any annual general meeting (not being the first annual general meeting) by a period not exceeding three months. (2) A Producer Company shall hold its first annual general meeting within a period of ninety days from the date of its incorporation. (3) The Members shall adopt the articles of the Producer Company and appoint directors of its Board in the annual general meeting. (4) The notice calling the annual general meeting shall be accompanied by the following documents, namely:— (a) the agenda of the annual general meeting; (b) the minutes of the previous annual general meeting or the extraordinary general meeting; (c) the names of candidates for election, if any, to the office of director including a statement of qualifications in respect of each candidate; (d) the audited balance-sheet and profit and loss accounts of the Producer Company and its subsidiary, if any, together with a report of the Board of Directors of such Company with respect to— 213 ----- (i) the state of affairs of the Producer Company; (ii) the amount proposed to be carried to reserve; (iii) the amount to be paid as limited return on share capital; (iv) the amount proposed to be disbursed as patronage bonus; (v) the material changes and commitments, if any, affecting the financial position of the Producer Company and its subsidiary, which have occurred in between the date of the annual accounts of the Producer Company to which the balance-sheet relates and the date of the report of the Board; (vi) any other matter of importance relating to energy conservation, environmental protection, expenditure or earnings in foreign exchanges; (vii) any other matter which is required to be, or may be, specified by the Board; (e) the text of the draft resolution for appointment of auditors; (f) the text of any draft resolution proposing amendment to the memorandum or articles to be considered at the general meeting, alongwith the recommendations of the Board. (5) The Board of Directors shall, on the requisition made in writing, duly signed and setting out the matters for the consideration, made by one-third of the Members entitled to vote in any general meeting, proceed to call an extraordinary general meeting in accordance with the relevant provisions contained in Chapter VII. (6) Every annual general meeting shall be called, for a time during business hours, on a day that is not a public holiday and shall be held at the registered office of the Producer Company or at some other place within the city, town or village in which the registered office of the Company is situate. (7) A general meeting of the Producer Company shall be called by giving not less than fourteen days prior notice in writing. (8) The notice of the general meeting indicating the date, time and place of the meeting shall be sent to every Member and auditor of the Producer Company. (9) Unless the articles of the Producer Company provide for a larger number, one-fourth of the total number of members of the Producer Company shall be the quorum for its annual general meeting. (10) The proceedings of every annual general meeting alongwith the report of the Board of Directors, the audited balance-sheet and the profit and loss account shall be filed with the Registrar within sixty days of the date on which the annual general meeting is held, with an annual return alongwith the filing fees as applicable under the Act. (11) In the case where a Producer Company is formed by Producer Institutions, such Institutions shall be represented in the general body through the Chairman or the Chief Executive thereof who shall be competent to act on its behalf: Provided that a Producer Institution shall not be represented if such Institution is in default or failure referred to in clauses (d) to (f) of sub-section (1) of section 378Q. PART V SHARE CAPITAL AND MEMBERS RIGHTS **378ZB. Share capital.—(1) The share capital of a Producer Company shall consist of equity shares** only. (2) The shares held by a Member in a Producer Company, shall as far as may be, be in proportion to the patronage of that company. **378ZC. Special user rights.— (1) The producers, who are active Members may, if so provided in the** articles, have special rights and the Producer Company may issue appropriate instruments to them in respect of such special rights. 214 ----- (2) The instruments of the Producer Company issued under sub-section (1) shall, after obtaining approval of the Board in that behalf, be transferable to any other active Member of that Producer Company. _Explanation.—For the purposes of this section, the expression “special right” means any right relating_ to supply of additional produce by the active Member or any other right relating to his produce which may be conferred upon him by the Board. **378ZD.Transferability of shares and attendant rights.—(1) Save as otherwise provided in** sub-sections (2) to (4), the shares of a Member of a Producer Company shall not be transferable. (2) A Member of a Producer Company may, after obtaining the previous approval of the Board, transfer the whole or part of his shares alongwith any special rights, to an active Member at par value. (3) Every Member shall, within three months of his becoming a Member in the Producer Company, nominate, in the manner specified in articles, a person to whom his shares in the Producer Company shall vest in the event of his death. (4) The nominee shall, on the death of the Member, become entitled to all the rights in the shares of the Producer Company and the Board of that Company shall transfer the shares of the deceased Member to his nominee: Provided that in a case where such nominee is not a producer, the Board shall direct the surrender of shares together with special rights, if any, to the Producer Company at par value or such other value as may be determined by the Board. (5) Where the Board of a Producer Company is satisfied that— (a) any Member has ceased to be a primary producer; or (b) any Member has failed to retain his qualifications to be a Member as specified in articles, the Board shall direct the surrender of shares together with special rights, if any, to the Producer Company at par value or such other value as may be determined by the Board: Provided that the Board shall not direct such surrender of shares unless the Member has been served with a written notice and given an opportunity of being heard. PART VI FINANCE, ACCOUNTS AND AUDIT **378ZE. Books of account.—** (1) Every Producer Company shall keep at its registered office proper books of account with respect to— (a) all sums of money received and expended by the Producer Company and the matters in respect of which the receipts and expenditure take place; (b) all sales and purchase of goods by the Producer Company; (c) the instruments of liability executed by or on behalf of the Producer Company; (d) the assets and liabilities of the Producer Company; (e) in case of a Producer Company engaged in production, processing and manufacturing, the particulars relating to utilisation of materials or labour or other items of costs. (2) The balance-sheet and profit and loss accounts of the Producer Company shall be prepared, as far as may be, in accordance with the provisions contained in section 129. 215 ----- **378ZF.Internal audit.— Every Producer Company shall have internal audit of its accounts carried** out, at such interval and in such manner as may be specified in articles, by a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949 (38 of 1949). **378ZG. Duties of auditor under this Chapter.—Without prejudice to the provisions contained in** section 143, the auditor shall report on the following additional matters relating to the Producer Company, namely:— (a) the amount of debts due alongwith particulars of bad debts, if any; (b) the verification of cash balance and securities; (c) the details of assets and liabilities; (d) all transactions which appear to be contrary to the provisions of this Chapter; (e) the loans given by the Producer Company to the directors; (f) the donations or subscriptions given by the Producer Company; (g) any other matter as may be considered necessary by the auditor. **378ZH. Donation or subscription by Producer Company.—A Producer Company may, by special** resolution, make donation or subscription to any institution or individual for the purposes of— (a) promoting the social and economic welfare of Producer Members or producers or general public; or (b) promoting the mutual assistance principles: Provided that the aggregate amount of all such donations and subscriptions in any financial year shall not exceed three per cent. of the net profit of the Producer Company in the financial year immediately preceding the financial year in which the donation or subscription was made: Provided further that no Producer Company shall make directly or indirectly to any political party or for any political purpose to any person any contribution or subscription or make available any facilities including personnel or material. **378Z-I. General and other reserves.—(1) Every Producer Company shall maintain a general reserve** in every financial year, in addition to any reserve maintained by it as may be specified in articles. (2) In a case where the Producer Company does not have sufficient funds in any financial year for transfer to maintain the reserves as may be specified in articles, the contribution to the reserve shall be shared amongst the Members in proportion to their patronage in the business of that Company in that year. **378ZJ. Issue of bonus Shares.— Any Producer Company may, upon recommendation of the Board** and passing of resolution in the general meeting, issue bonus shares by capitalisation of amounts from general reserves referred to in section 378Z-I in proportion to the shares held by the Members on the date of the issue of such shares. PART VII LOANS TO MEMBERS AND INVESTMENTS **378ZK. Loan, etc., to Members.— The Board may, subject to the provisions made in articles, provide** financial assistance to the Members of the Producer Company by way of— (a) credit facility, to any Member, in connection with the business of the Producer Company, for a period not exceeding six months; (b) loans and advances, against security specified in articles to any Member, repayable within a period exceeding three months but not exceeding seven years from the date of disbursement of such loan or advances: 216 ----- Provided that any loan or advance to any director or his relative shall be granted only after the approval by the Members in general meeting. **378ZL. Investment in other companies, formation of subsidiaries etc.— (1) The general reserves** of any Producer Company shall be invested to secure the highest returns available from approved securities, fixed deposits, units, bonds issued by the Government or co-operative or scheduled bank or in such other mode as may be prescribed. (2) Any Producer Company may, for promotion of its objectives acquire the shares of another Producer Company. (3) Any Producer Company may subscribe to the share capital of, or enter into any agreement or other arrangement, whether by way of formation of its subsidiary company, joint venture or in any other manner with any body corporate, for the purpose of promoting the objects of the Producer Company by special resolution in this behalf. (4) Any Producer Company, either by itself or together with its subsidiaries, may invest, by way of subscription, purchase or otherwise, shares in any other company, other than a Producer Company, specified under sub-section (2), or subscription of capital under sub-section (3), for an amount not exceeding thirty per cent. of the aggregate of its paid-up capital and free reserves: Provided that a Producer Company may, by special resolution passed in its general meeting and with prior approval of the Central Government, invest in excess of the limits specified in this section. (5) All investments by a Producer Company may be made if such investments are consistent with the objects of the Producer Company. (6) The Board of a Producer Company may, with the previous approval of Members by a special resolution, dispose of any of its investments referred to in sub-sections (3) and (4). (7) Every Producer Company shall maintain a register containing particulars of all the investments, showing the names of the companies in which shares have been acquired, number and value of shares; the date of acquisition; and the manner and price at which any of the shares have been subsequently disposed of. (8) The register referred to in sub-section (7) shall be kept at the registered office of the Producer Company and the same shall be open to inspection by any Member who may take extracts therefrom. PART VIII PENALTIES **378ZM. Penalty for contravention.—(1) If any person, other than a Producer Company registered** under this Chapter, carries on business under any name which contains the words "Producer Company Limited", he shall be punishable with fine which may extend to ten thousand rupees for every day during which such name has been used by him. (2) If a director or an officer of a Producer Company, who wilfully fails to furnish any information relating to the affairs of the Producer Company required by a Member or a person duly authorised in this behalf, he shall be liable to imprisonment for a term which may extend to six months and with fine equivalent to five per cent. of the turnover of that Company during the preceding financial year. (3) If a director or officer of a Producer Company— (a) fails to hand over the custody of books of account and other documents or property in his custody to the Producer Company of which he is a director or officer; or (b) fails to convene annual general meeting or other general meetings, he shall be punishable with fine which may extend to one lakh rupees, and in the case of a continuing default or failure, with an additional fine which may extend to ten thousand rupees for every day during which such default or failure continues. 217 ----- PART IX AMALGAMATION, MERGER OR DIVISION **378ZN. Amalgamation merger or division, etc. to form new Producer Companies.—(1) A** Producer Company may, by a resolution passed at its general meeting,— (a) decide to transfer its assets and liabilities, in whole or in part, to any other Producer Company, which agrees to such transfer by a resolution passed at its general meeting, for any of the objects specified in section 378B; (b) divide itself into two or more new Producer Companies. (2) Any two or more Producer Companies may, by a resolution passed at any general or special meetings of its Members, decide to— (a) amalgamate and form a new Producer Company; or (b) merge one Producer Company (hereafter in this Chapter referred to as "merging company") with another Producer Company (hereafter in this Chapter referred to as "merged company"). (3) Every resolution of a Producer Company under this section shall be passed at its general meeting by a majority of total Members, with right of vote not less than two-thirds of its Members present and voting and such resolution shall contain all particulars of the transfer of assets and liabilities, or division, amalgamation, or merger, as the case may be. (4) Before passing a resolution under this section, the Producer Company shall give notice thereof in writing together with a copy of the proposed resolution to all the Members and creditors who may give their consent. (5) Notwithstanding anything contained in articles or in any contract to the contrary, any Member, or any creditor not consenting to the resolution shall, during the period of one month of the date of service of the notice on him, have the option,— (a) in the case of any such Member, to transfer his shares with the approval of the Board to any active Member thereby ceasing to continue as a Member of that Company; or (b) in the case of a creditor, to withdraw his deposit or loan or advance, as the case may be. (6) Any Member or creditor, who does not exercise his option within the period specified in sub-section (5), shall be deemed to have consented to the resolution. (7) A resolution passed by a Producer Company under this section shall not take effect until the expiry of one month or until the assent thereto of all the Members and creditors has been obtained, whichever is earlier. (8) The resolution referred to in this section shall provide for— (a) the regulation of conduct of the affairs of the Producer Company in future; (b) the purchase of shares or interest of any Members of the Producer Company by other Members or by the Producer Company; (c) the consequent reduction of its share capital, in case of purchase of shares of one Producer Company by another Producer Company; (d) termination, setting aside or modification of any agreement, howsoever arrived between the company on the one hand and the directors, secretaries and manager on the other hand, apart from such terms and conditions as may, in the opinion of the majority of shareholders, be just and equitable in the circumstances of the case; 218 ----- (e) termination, setting aside or modification of any agreement between the Producer Company and any person not referred to in clause (d): Provided that no such agreement shall be terminated, set aside or modified except after giving due notice to the party concerned: Provided further that no such agreement shall be modified except after obtaining the consent of the party concerned; (f) the setting aside of any transfer, delivery of goods, payment, execution or other act relating to property, made or done by or against the Producer Company within three months before the date of passing of the resolution, which would if made or done against any individual, be deemed in his insolvency to be a fraudulent preference; (g) the transfer to the merged company of the whole or any part of the undertaking, property or liability of the Producer Company; (h) the allotment or appropriation by the merged company of any shares, debentures, policies, or other like interests in the merged company; (i) the continuation by or against the merged company of any legal proceedings pending by or against any Producer Company; (j) the dissolution, without winding up, of any Producer Company; (k) the provision to be made for the Members or creditors who make dissent; (l) the taxes, if any, to be paid by the Producer Company; (m) such incidental, consequential and supplemental matters as are necessary to secure that the division, amalgamation or merger shall be fully and effectively carried out. (9) When a resolution passed by a Producer Company under this section takes effect, the resolution shall be a sufficient conveyance to vest the assets and liabilities in the transferee. (10) The Producer Company shall make arrangements for meeting in full or otherwise satisfying all claims of the Members and the creditors who exercise the option, within the period specified in sub-section (4), not to continue as the Member or creditor, as the case may be. (11) Where the whole of the assets and liabilities of a Producer Company are transferred to another Producer Company in accordance with the provisions of sub-section (9), or where there is merger under sub-section (2), the registration of the first mentioned Company or the merging company, as the case may be, shall stand cancelled and that Company shall be deemed to have been dissolved and shall cease to exist forthwith as a corporate body. (12) Where two or more Producer Companies are amalgamated into a new Producer Company in accordance with the provisions of sub-section (2) and the Producer Company so formed is duly registered by the Registrar, the registration of each of the amalgamating companies shall stand cancelled forthwith on such registration and each of the Companies shall thereupon cease to exist as a corporate body. (13) Where a Producer Company divides itself into two or more Producer Companies in accordance with the provisions of clause (b) of sub-section (1) and the new Producer Companies are registered in accordance with the provisions of this Chapter, the registration of the erstwhile Producer Company shall stand cancelled forthwith and that Company shall be deemed to have been dissolved and cease to exist as a corporate body. (14) The amalgamation, merger or division of companies under the foregoing sub-sections shall not in any manner whatsoever affect the pre-existing rights or obligations and any legal proceedings that might 219 ----- have been continued or commenced by or against any erstwhile company before the amalgamation, merger or division, may be continued or commenced by, or against, the concerned resulting company, or merged company, as the case may be. (15) The Registrar shall strike off the names of every Producer Company deemed to have been dissolved under sub-sections (11) to (14). (16) Any member or creditor or employee aggrieved by the transfer of assets, division, amalgamation or merger may, within thirty days of the passing of the resolution, prefer an appeal to the Tribunal. (17) The Tribunal shall, after giving a reasonable opportunity to the person concerned, pass such orders thereon as it may deem fit. (18) Where an appeal has been filed under sub-section (16), the transfer of assets, division, amalgamation or merger of the Producer Company shall be subject to the decision of the Tribunal. PART X RESOLUTION OF DISPUTES **378Z-O. Disputes.—(1) Where any dispute relating to the formation, management or business of a** Producer Company arises— (a) amongst Members, former Members or persons claiming to be Members or nominees of deceased Members; or (b) between a Member, former Member or a person claiming to be a Member, or nominee of deceased Member and the Producer Company, its Board of Directors, office-bearers, or liquidator, past or present; or (c) between the Producer Company or its Board, and any director, office-bearer or any former director, or the nominee, heir or legal representative of any deceased director of the Producer Company, such dispute shall be settled by conciliation or by arbitration as provided under the Arbitration and Conciliation Act, 1996 (26 of 1996) as if the parties to the dispute have consented in writing for determination of such disputes by conciliation or by arbitration and the provisions of the said Act shall apply accordingly. _Explanation.—For the purposes of this section, a dispute shall include—_ (a) a claim for any debt or other amount due; (b) a claim by surety against the principal debtor, where the Producer Company has recovered from the surety amount in respect of any debtor or other amount due to it from the principal debtor as a result of the default of the principal debtor whether such debt or amount due be admitted or not; (c) a claim by Producer Company against a Member for failure to supply produce as required of him; (d) a claim by a Member against the Producer Company for not taking goods supplied by him. (2) If any question arises whether the dispute relates to formation, management or business of the Producer Company, the question shall be referred to the arbitrator, whose decision thereon shall be final. 220 ----- PART XI MISCELLANEOUS PROVISIONS **378ZP. Strike off name of Producer Company.— (1) Where a Producer Company fails to commence** business within one year of its registration or ceases to transact business with the Members or if the Registrar is satisfied, after making such inquiry as he thinks fit, that the Producer Company is no longer carrying on any of its objects specified in section 378B, he shall make an order striking off the name of the Producer Company, which shall thereupon cease to exist forthwith: Provided that no such order cancelling the registration as aforesaid shall be passed until a notice to show cause has been given by the Registrar to the Producer Company with a copy to all its directors on the proposed action and reasonable opportunity to represent its case has been given. (2) Where the Registrar has reasonable cause to believe that a Producer Company is not maintaining any of the mutual assistance principles specified, he shall strike its name off the register in accordance with the provisions contained in section 248. (3) Any Member of a Producer Company, who is aggrieved by an order made under sub-section (1), may appeal to the Tribunal within sixty days of the order. (4) Where an appeal is filed under sub-section (3), the order of striking off the name shall not take effect until the appeal is disposed of. **378ZQ. Provisions of this Chapter to override other laws.— The provisions of this Chapter shall** have effect notwithstanding anything inconsistent therewith contained in this Act or any other law for the time being in force or any instrument having effect by virtue of any such law; but the provisions of any such Act or law or instrument in so far as the same are not varied by, or are inconsistent with, the provisions of this Chapter shall apply to the Producer Company. **378ZR. Application of provisions relating to private companies.— All the limitations, restrictions** and provisions of this Act, other than those specified in this Chapter, applicable to a private company, shall, as far as may be, apply to a Producer Company, as if it is a private limited company under this Act in so far as they are not in conflict with the provisions of this Chapter. PART XII RE-CONVERSION OF PRODUCER COMPANY TO INTER-STATE CO-OPERATIVE SOCIETY **378ZS. Re-conversion of Producer Company to inter-State co-operative society.—(1) Any** Producer Company, being an erstwhile inter-State co-operative society, formed and registered under this Chapter, may make an application— (a) after passing a resolution in the general meeting by not less than twothirds of its Members present and voting; or (b) on request by its creditors representing three-fourths value of its total creditors, to the Tribunal for its re-conversion to the inter-State co-operative society. (2) The Tribunal shall, on the application made under sub-section (1), direct holding meeting of its Members or such creditors, as the case may be, to be conducted in such manner as it may direct. (3) If a majority in number representing three-fourths in value of the creditors, or Members, as the case may be, present and voting in person at the meeting conducted in pursuance of the directions of the Tribunal under sub-section (2), agree for re-conversion, if sanctioned by the Tribunal, be binding on all the Members and all the creditors, as the case may be, and also on the company which is being converted: Provided that no order sanctioning re-conversion shall be made by the Tribunal unless the Tribunal is satisfied that the company or any other person by whom an application has been made under sub-section (1) has disclosed to the Tribunal, by affidavit or otherwise, all material facts relating to the company, such as the latest financial position of the company, the latest report of the auditor on the accounts of the company, the pendency of any investigation proceedings in relation to the company under Chapter XIV, and the like. 221 ----- (4) An order made by the Tribunal under sub-section (3) shall have no effect until a certified copy of the order has been filed with the Registrar. (5) A copy of every such order shall be annexed to every copy of the memorandum of the company issued after the certified copy of the order has been filed as aforesaid, or in the case of a company not having a memorandum, to every copy so issued of the instrument constituting or defining the constitution of the company. (6) If default is made in complying with sub-section (4), the company, and every officer of the company who is in default, shall be punishable with fine which may extend to one hundred rupees, for each copy in respect of which default is made. (7) The Tribunal may, at any time after an application has been made to it under this section, stay the commencement or continuation of any suit or proceeding against the company on such terms as the Tribunal thinks fit, until the application is finally disposed of. (8) Every Producer Company, which has been sanctioned re-conversion by the Tribunal, shall make an application under the Multi-State Co-operative Societies Act, 2002 (39 of 2002) or any other law for the time being in force for its registration as multi-State co-operative society or co-operative society, as the case may be, within six months of sanction by the Tribunal and file a report thereof to the Tribunal and the Registrar of Companies and to the Registrar of the Co-operative Societies under which it has been registered as a multi-State co-operative society or co-operative society, as the case may be. **378ZT. Power to modify Act in its application to Producer Companies.—(1) The Central** Government may, by notification, direct that any of the provisions of this Act (other than those contained in this Chapter) specified in the said notification— (a) shall not apply to the Producer Companies or any class or category thereof; or (b) shall apply to the Producer Companies or any class or category thereof with such exception or adaptation as may be specified in the notification. (2) A copy of every notification proposed to be issued under sub-section (1), shall be laid in draft before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in disapproving the issue of the notification or both Houses agree in making any modification in the notification, the notification shall not be issued or, as the case may be, shall be issued only in such modified form as may be agreed upon by both the Houses. **378ZU. Power to make rules.—The Central Government may make rules for carrying out the purposes** of this Chapter.] CHAPTER XXII COMPANIES INCORPORATED OUTSIDE INDIA **379. Application of Act to foreign companies.—[1][(1) Sections 380 to 386 (both inclusive) and sections** 392 and 393 shall apply to all foreign companies: 2* - - - 3[(2)] Where not less than fifty per cent. of the paid-up share capital, whether equity or preference or partly equity and partly preference, of a foreign company is held by one or more citizens of India or by one or more companies or bodies corporate incorporated in India, or by one or more citizens of India and one or more companies or bodies corporate incorporated in India, whether singly or in the aggregate, such company shall comply with the provisions of this Chapter and such other provisions of this Act as may be prescribed with regard to the business carried on by it in India as if it were a company incorporated in India. 1. Ins. by Act 1 of 2018, s. 77 (w.e.f. 9-2-2018). 2. The Proviso omitted by Act 29 of 2020, s. 53 (w.e.f. 22-1-2021). 3. Section 379 renumbered as sub-section (2) thereof by s. 77, ibid. (w.e.f. 9-2-2018). 222 ----- **380. Documents, etc., to be delivered to Registrar by foreign companies.—(1) Every foreign** company shall, within thirty days of the establishment of its place of business in India, deliver to the Registrar for registration— (a) a certified copy of the charter, statutes or memorandum and articles, of the company or other instrument constituting or defining the constitution of the company and, if the instrument is not in the English language, a certified translation thereof in the English language; (b) the full address of the registered or principal office of the company; (c) a list of the directors and secretary of the company containing such particulars as may be prescribed; (d) the name and address or the names and addresses of one or more persons resident in India authorised to accept on behalf of the company service of process and any notices or other documents required to be served on the company; (e) the full address of the office of the company in India which is deemed to be its principal place of business in India; (f) particulars of opening and closing of a place of business in India on earlier occasion or occasions; (g) declaration that none of the directors of the company or the authorised representative in India has ever been convicted or debarred from formation of companies and management in India or abroad; and (h) any other information as may be prescribed. (2) Every foreign company existing at the commencement of this Act shall, if it has not delivered to the Registrar before such commencement, the documents and particulars specified in sub-section (1) of section 592 of the Companies Act, 1956 (1 of 1956), continue to be subject to the obligation to deliver those documents and particulars in accordance with that Act. (3) Where any alteration is made or occurs in the documents delivered to the Registrar under this section, the foreign company shall, within thirty days of such alteration, deliver to the Registrar for registration, a return containing the particulars of the alteration in the prescribed form. **381. Accounts of foreign company.—(1) Every foreign company shall, in every calendar year,—** (a) make out a balance sheet and profit and loss account in such form, containing such particulars and including or having annexed or attached thereto such documents as may be prescribed; and (b) deliver a copy of those documents to the Registrar: Provided that the Central Government may, by notification, direct that, in the case of any foreign company or class of foreign companies, the requirements of clause (a) shall not apply, or shall apply subject to such exceptions and modifications as may be specified in that notification. (2) If any such document as is mentioned in sub-section (1) is not in the English language, there shall be annexed to it a certified translation thereof in the English language. (3) Every foreign company shall send to the Registrar along with the documents required to be delivered to him under sub-section (1), a copy of a list in the prescribed form of all places of business established by the company in India as at the date with reference to which the balance sheet referred to in sub-section (1) is made out. **382. Display of name, etc., of foreign company.—Every foreign company shall—** (a) conspicuously exhibit on the outside of every office or place where it carries on business in India, the name of the company and the country in which it is incorporated, in letters easily legible in English characters, and also in the characters of the language or one of the languages in general use in the locality in which the office or place is situate; 223 ----- (b) cause the name of the company and of the country in which the company is incorporated, to be stated in legible English characters in all business letters, billheads and letter paper, and in all notices, and other official publications of the company; and (c) if the liability of the members of the company is limited, cause notice of that fact— (i) to be stated in every such prospectus issued and in all business letters, bill-heads, letter paper, notices, advertisements and other official publications of the company, in legible English characters; and (ii) to be conspicuously exhibited on the outside of every office or place where it carries on business in India, in legible English characters and also in legible characters of the language or one of the languages in general use in the locality in which the office or place is situate. **383. Service on foreign company.—Any process, notice, or other document required to be served on** a foreign company shall be deemed to be sufficiently served, if addressed to any person whose name and address have been delivered to the Registrar under section 380 and left at, or sent by post to, the address which has been so delivered to the Registrar or by electronic mode. **384. Debentures, annual return, registration of charges, books of account and their inspection.—** (1) The provisions of section 71 shall apply mutatis mutandis to a foreign company. (2) The provisions of section 92 [1][and section 135] shall, subject to such exceptions, modifications and adaptations as may be made therein by rules made under this Act, apply to a foreign company as they apply to a company incorporated in India. (3) The provisions of section 128 shall apply to a foreign company to the extent of requiring it to keep at its principal place of business in India, the books of account referred to in that section, with respect to monies received and spent, sales and purchases made, and assets and liabilities, in the course of or in relation to its business in India. (4) The provisions of Chapter VI shall apply _mutatis mutandis_ to charges on properties which are created or acquired by any foreign company. (5) The provisions of Chapter XIV shall apply _mutatis mutandis to the Indian business of a foreign_ company as they apply to a company incorporated in India. **385. Fee for registration of documents.—There shall be paid to the Registrar for registering any** document required by the provisions of this Chapter to be registered by him, such fee, as may be prescribed. **386. Interpretation.—For the purposes of the foregoing provisions of this Chapter,—** (a) the expression “certified” means certified in the prescribed manner to be a true copy or a correct translation; (b) the expression “director”, in relation to a foreign company, includes any person in accordance with whose directions or instructions the Board of Directors of the company is accustomed to act; and (c) the expression “place of business” includes a share transfer or registration office. **387. Dating of prospectus and particulars to be contained therein.—(1) No person shall issue,** circulate or distribute in India any prospectus offering to subscribe for securities of a company incorporated or to be incorporated outside India, whether the company has or has not established, or when formed will or will not establish, a place of business in India, unless the prospectus is dated and signed, and— (a) contains particulars with respect to the following matters, namely:— (i) the instrument constituting or defining the constitution of the company; (ii) the enactments or provisions by or under which the incorporation of the company was effected; 1. Ins. by Act 1 of 2018, s. 78 (w.e.f. 9-2-2018). 224 ----- (iii) address in India where the said instrument, enactments or provisions, or copies thereof, and if the same are not in the English language, a certified translation thereof in the English language can be inspected; (iv) the date on which and the country in which the company would be or was incorporated; and (v) whether the company has established a place of business in India and, if so, the address of its principal office in India; and (b) states the matters specified under section 26: Provided that sub-clauses (i), (ii) and (iii) of clause (a) of this sub-section shall not apply in the case of a prospectus issued more than two years after the date at which the company is entitled to commence business. (2) Any condition requiring or binding an applicant for securities to waive compliance with any requirement imposed by virtue of sub-section (1), or purporting to impute him with notice of any contract, documents or matter not specifically referred to in the prospectus, shall be void. (3) No person shall issue to any person in India a form of application for securities of such a company or intended company as is mentioned in sub-section (1), unless the form is issued with a prospectus which complies with the provisions of this Chapter and such issue does not contravene the provisions of section 388: Provided that this sub-section shall not apply if it is shown that the form of application was issued in connection with a bona fide invitation to a person to enter into an underwriting agreement with respect to securities. (4) This section — (a) shall not apply to the issue to existing members or debenture holders of a company of a prospectus or form of application relating to securities of the company, whether an applicant for securities will or will not have the right to renounce in favour of other persons; and (b) except in so far as it requires a prospectus to be dated, to the issue of a prospectus relating to securities which are or are to be in all respects uniform with securities previously issued and for the time being dealt in or quoted on a recognised stock exchange, but, subject as aforesaid, this section shall apply to a prospectus or form of application whether issued on or with reference to the formation of a company or subsequently. (5) Nothing in this section shall limit or diminish any liability which any person may incur under any law for the time being in force in India or under this Act apart from this section. **388. Provisions as to expert’s consent and allotment.—(1) No person shall issue, circulate or** distribute in India any prospectus offering for subscription in securities of a company incorporated or to be incorporated outside India, whether the company has or has not been established, or when formed will or will not establish, a place of business in India,— (a) if, where the prospectus includes a statement purporting to be made by an expert, he has not given, or has before delivery of the prospectus for registration withdrawn, his written consent to the issue of the prospectus with the statement included in the form and context in which it is included, or there does not appear in the prospectus a statement that he has given and has not withdrawn his consent as aforesaid; or (b) if the prospectus does not have the effect, where an application is made in pursuance thereof, of rendering all persons concerned bound by all the provisions of sections 33 and 40, so far as applicable. (2) For the purposes of this section, a statement shall be deemed to be included in a prospectus, if it is contained in any report or memorandum appearing on the face thereof or by reference incorporated therein or issued therewith. 225 ----- **389. Registration of prospectus.—No person shall issue, circulate or distribute in India any prospectus** offering for subscription in securities of a company incorporated or to be incorporated outside India, whether the company has or has not established, or when formed will or will not establish, a place of business in India, unless before the issue, circulation or distribution of the prospectus in India, a copy thereof certified by the chairperson of the company and two other directors of the company as having been approved by resolution of the managing body has been delivered for registration to the Registrar and the prospectus states on the face of it that a copy has been so delivered, and there is endorsed on or attached to the copy, any consent to the issue of the prospectus required by section 388 and such documents as may be prescribed. **390. Offer of Indian Depository Receipts.—Notwithstanding anything contained in any other law for** the time being in force, the Central Government may make rules applicable for— (a) the offer of Indian Depository Receipts; (b) the requirement of disclosures in prospectus or letter of offer issued in connection with Indian Depository Receipts; (c) the manner in which the Indian Depository Receipts shall be dealt with in a depository mode and by custodian and underwriters; and (d) the manner of sale, transfer or transmission of Indian Depository Receipts, by a company incorporated or to be incorporated outside India, whether the company has or has not established, or will or will not establish, any place of business in India. **391. Application of sections 34 to 36 and Chapter XX.—(1) The provisions of sections 34 to 36 (both** inclusive) shall apply to— (i) the issue of a prospectus by a company incorporated outside India under section 389 as they apply to prospectus issued by an Indian company; (ii) the issue of Indian Depository Receipts by a foreign company. 1[(2) Subject to the provisions of section 376, the provisions of Chapter XX shall apply _mutatis_ _mutandis_ for closure of the place of business of a foreign company in India as if it were a company incorporated in India in case such foreign company has raised monies through offer or issue of securities under this Chapter which have not been repaid or redeemed.] **392. Punishment for contravention.—Without prejudice to the provisions of section 391, if a foreign** company contravenes the provisions of this Chapter, the foreign company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to three lakh rupees and in the case of a continuing offence, with an additional fine which may extend to fifty thousand rupees for every day after the first during which the contravention continues and every officer of the foreign company who is in default shall be punishable [2]*** with fine which shall not be less than twenty-five thousand rupees but which may extend to [3][five lakh rupees]. **393. Company’s failure to comply with provisions of this Chapter not to affect validity of** **contracts, etc.—Any failure by a company to comply with the provisions of this Chapter shall not affect** the validity of any contract, dealing or transaction entered into by the company or its liability to be sued in respect thereof, but the company shall not be entitled to bring any suit, claim any set-off, make any counterclaim or institute any legal proceeding in respect of any such contract, dealing or transaction, until the company has complied with the provisions of this Act applicable to it. **4[393A. Exemptions under this Chapter.—The Central Government may, by notification, exempt** any class of— (a) foreign companies; 1. Subs. by Act 1 of 2018, s. 79, for sub-section (2) (w.e.f. 9-2-2018). 2. The words “with imprisonment for a term which may extend to six months or” omitted by Act 29 of 2020, s. 54 (w.e.f. 21-12 2020). 3. Subs. by s. 54, ibid., for “fifty thousand rupees, or with both” (w.e.f. 21-12-2020). 4. Ins. by s. 55, ibid. (w.e.f. 22-1-2021). 226 ----- (b) companies incorporated or to be incorporated outside India, whether the company has or has not established, or when formed may or may not establish, a place of business in India, as may be specified in the notification, from any of the provisions of this Chapter and a copy of every such notification shall, as soon as may be after it is made, be laid before both Houses of Parliament.] CHAPTER XXIII GOVERNMENT COMPANIES **394. Annual reports on Government companies.—(1) Where the Central Government is a member** of a Government company, the Central Government shall cause an annual report on the working and affairs of that company to be— (a) prepared within three months of its annual general meeting before which the comments given by the Comptroller and Auditor-General of India and the audit report is placed under the proviso to sub-section (6) of section 143; and (b) as soon as may be after such preparation, laid before both Houses of Parliament together with a copy of the audit report and comments upon or supplement to the audit report, made by the Comptroller and Auditor-General of India. (2) Where in addition to the Central Government, any State Government is also a member of a Government company, that State Government shall cause a copy of the annual report prepared under subsection (1) to be laid before the House or both Houses of the State Legislature together with a copy of the audit report and the comments upon or supplement to the audit report referred to in sub-section (1). **395. Annual reports where one or more State Governments are members of companies.—(1)** Where the Central Government is not a member of a Government company, every State Government which is a member of that company, or where only one State Government is a member of the company, that State Government shall cause an annual report on the working and affairs of the company to be— (a) prepared within the time specified in sub-section (1) of section 394; and (b) as soon as may be after such preparation, laid before the House or both Houses of the State Legislature together with a copy of the audit report and comments upon or supplement to the audit report referred to in sub-section (1) of that section. (2) The provisions of this section and section 394 shall, so far as may be, apply to a Government company in liquidation as they apply to any other Government company. CHAPTER XXIV REGISTRATION OFFICES AND FEES **396. Registration offices.—(1) For the purposes of exercising such powers and discharging such** functions as are conferred on the Central Government by or under this Act or under the rules made there under and for the purposes of registration of companies under this Act, the Central Government shall, by notification, establish such number of offices at such places as it thinks fit, specifying their jurisdiction. 227 ----- (2) The Central Government may appoint such Registrars, Additional, Joint, Deputy and Assistant Registrars as it considers necessary for the registration of companies and discharge of various functions under this Act, and the powers and duties that may be exercisable by such officers shall be such as may be prescribed. (3) The terms and conditions of service, including the salaries payable to persons appointed under sub section (2), shall be such as may be prescribed. (4) The Central Government may direct a seal or seals to be prepared for the authentication of documents required for, or connected with, the registration of companies. **397. Admissibility of certain documents as evidence.—Notwithstanding anything contained in any** other law for the time being in force, any document reproducing or derived from returns and documents filed by a company with the Registrar on paper or in electronic form or stored on any electronic data storage device or computer readable media by the Registrar, and authenticated by the Registrar or any other officer empowered by the Central Government in such manner as may be prescribed, shall be deemed to be a document for the purposes of this Act and the rules made thereunder and shall be admissible in any proceedings thereunder without further proof or production of the original as evidence of any contents of the original or of any fact stated therein of which direct evidence is admissible. **398. Provisions relating to filing of applications, documents, inspection, etc., in electronic form.—** (1) Notwithstanding anything to the contrary contained in this Act, and without prejudice to the provisions contained in section 6 of the Information Technology Act, 2000 (21 of 2000), the Central Government may make rules so as to require from such date as may be prescribed in the rules that— (a) such applications, balance sheet, prospectus, return, declaration, memorandum, articles, particulars of charges, or any other particulars or document as may be required to be filed or delivered under this Act or the rules made thereunder, shall be filed in the electronic form and authenticated in such manner as may be prescribed; (b) such document, notice, any communication or intimation, as may be required to be served or delivered under this Act, in the electronic form and authenticated in such manner as may be prescribed; (c) such applications, balance sheet, prospectus, return, register, memorandum, articles, particulars of charges, or any other particulars or document and return filed under this Act or rules made thereunder shall be maintained by the Registrar in the electronic form and registered or authenticated, as the case may be, in such manner as may be prescribed; (d) such inspection of the memorandum, articles, register, index, balance sheet, return or any other particulars or document maintained in the electronic form, as is otherwise available for inspection under this Act or the rules made thereunder, may be made by any person through the electronic form in such manner as may be prescribed; (e) such fees, charges or other sums payable under this Act or the rules made thereunder shall be paid through the electronic form and in such manner as may be prescribed; and (f) the Registrar shall register change of registered office, alteration of memorandum or articles, 1*** issue certificate of incorporation, register such document, issue such certificate, record the notice, receive such communication as may be required to be registered or issued or recorded or received, as the case may be, under this Act or the rules made thereunder or perform duties or discharge functions or exercise powers under this Act or the rules made thereunder or do any act which is by this Act 1. The word “prospectus” omitted by Act 22 of 2019, s. 38 (w.e.f. 15-8-2019). 228 ----- directed to be performed or discharged or exercised or done by the Registrar in the electronic form in such manner as may be prescribed. _Explanation.— For the removal of doubts, it is hereby clarified that the rules made under this section_ shall not relate to imposition of fines or other pecuniary penalties or demand or payment of fees or contravention of any of the provisions of this Act or punishment therefor. (2) The Central Government may, by notification, frame a scheme to carry out the provisions of sub-section (1) through the electronic form. **399. Inspection, production and evidence of documents kept by Registrar.—(1) Save as otherwise** provided elsewhere in this Act, any person may— (a) inspect by electronic means any documents kept by the Registrar in accordance with the rules made, being documents filed or registered by him in pursuance of this Act, or making a record of any fact required or authorised to be recorded or registered in pursuance of this Act, on payment for each inspection of such fees as may be prescribed; (b) require a certificate of the incorporation of any company, or a copy or extract of any other document or any part of any other document to be certified by the Registrar, on payment in advance of such fees as may be prescribed: Provided that the rights conferred by this sub-section shall be exercisable— (i) in relation to documents delivered to the Registrar with a prospectus in pursuance of section 26, only during the fourteen days beginning with the date of publication of the prospectus; and at other times, only with the permission of the Central Government; and (ii) in relation to documents so delivered in pursuance of clause (b) of sub-section (1) of section 388, only during the fourteen days beginning with the date of the prospectus; and at other times, only with the permission of the Central Government. (2) No process for compelling the production of any document kept by the Registrar shall issue from any court or the Tribunal except with the leave of that court or the Tribunal and any such process, if issued, shall bear thereon a statement that it is issued with the leave of the court or the Tribunal. (3) A copy of, or extract from, any document kept and registered at any of the offices for the registration of companies under this Act, certified to be a true copy by the Registrar (whose official position it shall not be necessary to prove), shall, in all legal proceedings, be admissible in evidence as of equal validity with the original document. **400. Electronic form to be exclusive, alternative or in addition to physical form.—The Central** Government may also provide in the rules made under section 398 and section 399 that the electronic form for the purposes specified in these sections shall be exclusive, or in the alternative or in addition to the physical form, therefor. **401. Provision of value added services through electronic form.—The Central Government may** provide such value added services through the electronic form and levy such fee thereon as may be prescribed. **402. Application of provisions of Information Technology Act, 2000.—All the provisions of the** Information Technology Act, 2000 (21 of 2000) relating to the electronic records, including the manner and format in which the electronic records shall be filed, in so far as they are not inconsistent with this Act, shall apply in relation to the records in electronic form specified under section 398. 229 ----- **403. Fee for filing, etc.—(1) Any document, required to be submitted, filed, registered or recorded, or** any fact or information required or authorised to be registered under this Act, shall be submitted, filed, registered or recorded within the time specified in the relevant provision on payment of such fee as may be prescribed: 1[Provided that where any document, fact or information required to be submitted, filed, registered or recorded, as the case may be, under section 92 or 137 is not submitted, filed, registered or recorded, as the case may be, within the period provided in those sections, without prejudice to any other legal action or liability under this Act, it may be submitted, filed, registered or recorded, as the case may be, after expiry of the period so provided in those sections, on payment of such additional fee as may be prescribed, which shall not be less than one hundred rupees per day and different amounts may be prescribed for different classes of companies:] 2[Provided further that where the document, fact or information, as the case may be, in cases other than referred to in the first proviso, is not submitted, filed, registered or recorded, as the case may be, within the period provided in the relevant section, it may, without prejudice to any other legal action or liability under this Act, be submitted, filed, registered or recorded as the case may be, on payment of such additional fee as may be prescribed and different fees may be prescribed for different classes of companies: 3[Provided also that where there is default on two or more occasions in submitting, filing, registering or recording of such document, fact or information, as may be prescribed, it may, without prejudice to any other legal action or liability under this Act, be submitted, filed, registered or recorded, as the case may be, on payment of such higher additional fee, as may be prescribed.]] 4[(2) Where a company fails or commits any default to submit, file, register or record any document, fact or information under sub-section (1) before the expiry of the period specified in the relevant section, the company and the officers of the company who are in default, shall, without prejudice to the liability for the payment of fee and additional fee, be liable for the penalty or punishment provided under this Act for such failure or default.] **404. Fees, etc., to be credited into public account.—All fees, charges and other sums received by any** Registrar, Additional, Joint, Deputy or Assistant Registrar or any other officer of the Central Government in pursuance of any provision of this Act shall be paid into the public account of India in the Reserve Bank of India. CHAPTER XXV COMPANIES TO FURNISH INFORMATION OR STATISTICS **405. Power of Central Government to direct companies to furnish information or statistics.—(1)** The Central Government may, by order, require companies generally, or any class of companies, or any company, to furnish such information or statistics with regard to their or its constitution or working, and within such time, as may be specified in the order. (2) Every order under sub-section (1) shall be published in the Official Gazette and may be addressed to companies generally or to any class of companies, in such manner, as the Central Government may think fit and the date of such publication shall be deemed to be the date on which requirement for information or statistics is made on such companies or class of companies, as the case may be. 1. Subs. by Act 1 of 2018, s. 80, for the first proviso (w.e.f. 7-5-2018). 2. Subs. by, s. 80, ibid, for second and third proviso (w.e.f. 1-7-2022). 3. Subs. by Act 29 of 2020, s. 56, for the third proviso (w.e.f. 1-7-2022). 4. Subs. by Act 1 of 2018, s. 80, for sub-section (2) (w.e.f. 7-5-2018). 230 ----- (3) For the purpose of satisfying itself that any information or statistics furnished by a company or companies in pursuance of any order under sub-section (1) is correct and complete, the Central Government may by order require such company or companies to produce such records or documents in its possession or allow inspection thereof by such officer or furnish such further information as that Government may consider necessary. 1[(4) If any company fails to comply with an order made under sub-section (1) or sub-section (3), or furnishes any information or statistics which is incorrect or incomplete in any material respect, the company and every officer of the company who is in default, shall be liable to a penalty of twenty thousand rupees and in case of continuing failure, with a further penalty of one thousand rupees for each day after the first during which such failure continues, subject to a maximum of three lakh rupees.] (5) Where a foreign company carries on business in India, all references to a company in this section shall be deemed to include references to the foreign company in relation, and only in relation, to such business. CHAPTER XXVI _NIDHIS_ 2[406. Provision relating to Nidhis and its application, etc.—(1) In this section, “Nidhi” or “Mutual Benefit Society” means a company which the Central Government may, by notification in the Official Gazette, declare to be a Nidhi or Mutual Benefit Society, as the case may be. (2) The Central Government may, by notification in the Official Gazette, direct that any of the provisions of this Act specified in the notification— (a) shall not apply to any Nidhi or Mutual Benefit Society; or (b) shall apply to any Nidhi or Mutual Benefit Society with such exceptions, modifications and adaptations as may be specified in the notification. (3) A copy of every notification proposed to be issued under sub-section (2), shall be laid in draft before each House of Parliament, while it is in session, for a total period of thirty days, and if, both Houses agree in disapproving the issue of notification or both Houses agree in making any modification in the notification, the notification shall not be issued or, as the case may be, shall be issued only in such modified form as may be agreed upon by both the Houses. (4) In reckoning any such period of thirty days as is referred to in sub-section (3), no account shall be taken of any period during which the House referred to in sub-section (3) is prorogued or adjourned for more than four consecutive days. (5) The copies of every notification issued under this section shall, as soon as may be after it has been issued, be laid before each House of Parliament.] 1. Subs. by Act 29 of 2020, s. 57, for sub-section (4) (w.e.f. 21-12-2020). 2. Subs. by Act 1 of 2018, s. 81, for section 406 (w.e.f. 15-8-2019). 231 ----- CHAPTER XXVII NATIONAL COMPANY LAW TRIBUNAL AND APPELLATE TRIBUNAL **407. Definitions.—In this Chapter, unless the context otherwise requires,—** (a) “Chairperson” means the Chairperson of the Appellate Tribunal; (b) “Judicial Member” means a member of the Tribunal or the Appellate Tribunal appointed as such and includes the President or the Chairperson, as the case may be; (c) “Member” means a member, whether Judicial or Technical of the Tribunal or the Appellate Tribunal and includes the President or the Chairperson, as the case may be; (d) “President” means the President of the Tribunal; (e) “Technical Member” means a member of the Tribunal or the Appellate Tribunal appointed as such. **408. Constitution of National Company Law Tribunal.—The Central Government shall, by** notification, constitute, with effect from such date as may be specified therein, a Tribunal to be known as the National Company Law Tribunal consisting of a President and such number of Judicial and Technical members, as the Central Government may deem necessary, to be appointed by it by notification, to exercise and discharge such powers and functions as are, or may be, conferred on it by or under this Act or any other law for the time being in force. **409. Qualification of President and Members of Tribunal.—(1) The President shall be a person who** is or has been a Judge of a High Court for five years. (2) A person shall not be qualified for appointment as a Judicial Member unless he— (a) is, or has been, a judge of a High Court; or (b) is, or has been, a District Judge for at least five years; or (c) has, for at least ten years been an advocate of a court. _Explanation.—For the purposes of clause (c), in computing the period during which a person has_ been an advocate of a court, there shall be included any period during which the person has held judicial office or the office of a member of a tribunal or any post, under the Union or a State, requiring special knowledge of law after he become an advocate. (3) A person shall not be qualified for appointment as a Technical Member unless he— (a) has, for at least fifteen years been a member of the Indian Corporate Law Service or Indian Legal Service [1][and has been holding the rank of Secretary or Additional Secretary to the Government of India]; or (b) is, or has been, in practice as a chartered accountant for at least fifteen years; or (c) is, or has been, in practice as a cost accountant for at least fifteen years; or (d) is, or has been, in practice as a company secretary for at least fifteen years; or 2[(e) is a person of proven ability, integrity and standing having special knowledge and professional experience of not less than fifteen years in industrial finance, industrial management, industrial reconstruction, investment and accountancy.] (f) is, or has been, for at least five years, a presiding officer of a Labour Court, Tribunal or National Tribunal constituted under the Industrial Disputes Act, 1947 (14 of 1947). **410. Constitution of Appellate Tribunal.—The Central Government shall, by notification, constitute,** with effect from such date as may be specified therein, an Appellate Tribunal to be known as the National Company Law Appellate Tribunal consisting of a chairperson and such number of Judicial and Technical 1. Subs. by Act 1 of 2018, s. 82, for “out of which at least three years shall be in the pay scale of Joint Secretary to the Government of India or equivalent or above in that service” (w.e.f 9-2-2018). 2. Subs. by Act 1 of 2018, s. 82, for clause (e) (w.e.f. 9-2-2018). 232 ----- Members, [1]***, as the Central Government may deem fit, to be appointed by it by notification, [2][for hearing appeals against— (a) the [3][orders of the Tribunal or of the National Financial Reporting Authority] under this Act; and (b) any direction, decision or order referred to in [4][section 53A] of the Competition Act, 2002 (12 of 2002) in accordance with the provisions of that Act]. **411. Qualifications of chairperson and Members of Appellate Tribunal.—(1) The chairperson shall** be a person who is or has been a Judge of the Supreme Court or the Chief Justice of a High Court. (2) A Judicial Member shall be a person who is or has been a Judge of a High Court or is a Judicial Member of the Tribunal for five years. 5[(3) A technical member shall be a person of proven ability, integrity and standing having special knowledge and professional experience of not less than twenty-five years in industrial finance, industrial management, industrial reconstruction, investment and accountancy.] **412. Selection of Members of Tribunal and Appellate Tribunal.— (1) The President of the Tribunal** and the chairperson and Judicial Members of the Appellate Tribunal, shall be appointed after consultation with the Chief Justice of India. 6[(2) The Members of the Tribunal and the Technical Members of the Appellate Tribunal shall be appointed on the recommendation of a Selection Committee consisting of— (a) Chief Justice of India or his nominee—Chairperson; (b) a senior Judge of the Supreme Court or Chief Justice of High Court— Member; (c) Secretary in the Ministry of Corporate Affairs—Member; and (d) Secretary in the Ministry of Law and Justice—Member. (2A) Where in a meeting of the Selection Committee, there is equality of votes on any matter, the Chairperson shall have a casting vote.] (3) The Secretary, Ministry of Corporate Affairs shall be the Convener of the Selection Committee. (4) The Selection Committee shall determine its procedure for recommending persons under sub section (2). (5) No appointment of the Members of the Tribunal or the Appellate Tribunal shall be invalid merely by reason of any vacancy or any defect in the constitution of the Selection Committee. **413. Term of office of President, chairperson and other Members.— (1) The President and every** other Member of the Tribunal shall hold office as such for a term of five years from the date on which he enters upon his office, but shall be eligible for re-appointment for another term of five years. (2) A Member of the Tribunal shall hold office as such until he attains,— (a) in the case of the President, the age of sixty-seven years; (b) in the case of any other Member, the age of sixty-five years: Provided that a person who has not completed fifty years of age shall not be eligible for appointment as Member: Provided further that the Member may retain his lien with his parent cadre or Ministry or Department, as the case may be, while holding office as such for a period not exceeding one year. 1. The words “not exceeding eleven” omitted by Act 29 of 2020, s. 58 (w.e.f. 22-1-2021). 2. Subs. by Act 7 of 2017, s. 172, for “for hearing appeals against the orders to the Tribunal” (w.e.f. 26-5-2017). 3. Subs. by Act 1 of 2018, s. 83 for “orders of the Tribunal” (w.e.f. 7-5-2018). 4. Subs. by Act 29 of 2020, s. 58, for “section 53N” (w.e.f. 22-1-2021). 5. Subs. by Act 1 of 2018, s. 84, for sub-section (3) (w.e.f. 9-2-2018). 6. Subs. by s. 85, ibid., for sub-section (2) (w.e.f. 9-2-2018). 233 ----- (3) The chairperson or a Member of the Appellate Tribunal shall hold office as such for a term of five years from the date on which he enters upon his office, but shall be eligible for re-appointment for another term of five years. (4) A Member of the Appellate Tribunal shall hold office as such until he attains,— (a) in the case of the Chairperson, the age of seventy years; (b) in the case of any other Member, the age of sixty-seven years: Provided that a person who has not completed fifty years of age shall not be eligible for appointment as Member: Provided further that the Member may retain his lien with his parent cadre or Ministry or Department, as the case may be, while holding office as such for a period not exceeding one year. **414. Salary, allowances and other terms and conditions of service of Members.—The salary,** allowances and other terms and conditions of service of the Members of the Tribunal and the Appellate Tribunal shall be such as may be prescribed: Provided that neither the salary and allowances nor the other terms and conditions of service of the Members shall be varied to their disadvantage after their appointment. **415. Acting President and Chairperson of Tribunal or Appellate Tribunal.—(1) In the event of the** occurrence of any vacancy in the office of the President or the Chairperson by reason of his death, resignation or otherwise, the senior-most Member shall act as the President or the Chairperson, as the case may be, until the date on which a new President or Chairperson appointed in accordance with the provisions of this Act to fill such vacancy enters upon his office. (2) When the President or the Chairperson is unable to discharge his functions owing to absence, illness or any other cause, the senior-most Member shall discharge the functions of the President or the Chairperson, as the case may be, until the date on which the President or the Chairperson resumes his duties. **416. Resignation of Members.—The President, the Chairperson or any Member may, by notice in** writing under his hand addressed to the Central Government, resign from his office: Provided that the President, the Chairperson, or the Member shall continue to hold office until the expiry of three months from the date of receipt of such notice by the Central Government or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is earliest. **417. Removal of Members.—(1) The Central Government may, after consultation with the Chief** Justice of India, remove from office the President, Chairperson or any Member, who— (a) has been adjudged an insolvent; or (b) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or (c) has become physically or mentally incapable of acting as such President, the Chairperson, or Member; or (d) has acquired such financial or other interest as is likely to affect prejudicially his functions as such President, the Chairperson or Member; or (e) has so abused his position as to render his continuance in office prejudicial to the public interest: Provided that the President, the Chairperson or the Member shall not be removed on any of the grounds specified in clauses (b) to (e) without giving him a reasonable opportunity of being heard. (2) Without prejudice to the provisions of sub-section (1), the President, the Chairperson or the Member shall not be removed from his office except by an order made by the Central Government on the ground of proved misbehaviour or incapacity after an inquiry made by a Judge of the Supreme Court nominated by the Chief Justice of India on a reference made to him by the Central Government in which such President, 234 ----- the Chairperson or Member had been informed of the charges against him and given a reasonable opportunity of being heard. (3) The Central Government may, with the concurrence of the Chief Justice of India, suspend from office, the President, the Chairperson or Member in respect of whom reference has been made to the Judge of the Supreme Court under sub-section (2) until the Central Government has passed orders on receipt of the report of the Judge of the Supreme Court on such reference. (4) The Central Government shall, after consultation with the Supreme Court, make rules to regulate the procedure for the inquiry on the ground of proved misbehaviour or incapacity referred to in subsection (2). 1[417A. Qualifications, terms and conditions of service of Chairperson and Member.—Notwithstanding anything contained in this Act, the qualifications, appointment, term of office, salaries and allowances, resignation, removal and other terms and conditions of service of the Chairperson and other Members of the Appellate Tribunal appointed after the commencement of [2][the Tribunals Reforms Act, 2021, shall be governed by the provisions of Chapter II of the said Act]: Provided that the Chairperson and Member appointed before the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall continue to be governed by the provisions of this Act and the rules made thereunder as if the provisions of section 184 of the Finance Act, 2017 had not come into force.] **418. Staff of Tribunal and Appellate Tribunal.—(1) The Central Government shall, in consultation** with the Tribunal and the Appellate Tribunal, provide the Tribunal and the Appellate Tribunal, as the case may be, with such officers and other employees as may be necessary for the exercise of the powers and discharge of the functions of the Tribunal and the Appellate Tribunal. (2) The officers and other employees of the Tribunal and the Appellate Tribunal shall discharge their functions under the general superintendence and control of the President, or as the case may be, the Chairperson, or any other Member to whom powers for exercising such superintendence and control are delegated by him. (3) The salaries and allowances and other conditions of service of the officers and other employees of the Tribunal and the Appellate Tribunal shall be such as may be prescribed. 3[418A. Benches of Appellate Tribunal.—(1) The powers of the Appellate Tribunal may be exercised by the Benches thereof to be constituted by the Chairperson: Provided that a Bench of the Appellate Tribunal shall have at least one Judicial Member and one Technical Member. (2) The Benches of the Appellate Tribunal shall ordinarily sit at New Delhi or such other places as the Central Government may, in consultation with the Chairperson, notify: Provided that the Central Government may, by notification, after consultation with the Chairperson, establish such number of Benches of the Appellate Tribunal, as it may consider necessary, to hear appeals against any direction, decision or order referred to in section 53A of the Competition Act, 2002 (12 of 2003) and under section 61 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016).] **419. Benches of Tribunal.—(1) There shall be constituted such number of Benches of the Tribunal,** as may, by notification, be specified by the Central Government. (2) The Principal Bench of the Tribunal shall be at New Delhi which shall be presided over by the President of the Tribunal. (3) The powers of the Tribunal shall be exercisable by Benches consisting of two Members out of whom one shall be a Judicial Member and the other shall be a Technical Member: 1. Ins. by Act 7 of 2017, s. 172 (w.e.f. 26-5-5017). 2. Subs. by Act 33 of 2021, s. 28, for “Part XIV of Chapter VI of the Finance Act, 2017 (7 of 2017), shall be governed by the provisions of the section 184 of that Act” (w.e.f. 4-4-2021). 3. Ins. by Act 29 of 2020, s. 59 (w.e.f. 22-1-2021). 235 ----- Provided that it shall be competent for the Members of the Tribunal authorised in this behalf to function as a Bench consisting of a single Judicial Member and exercise the powers of the Tribunal in respect of such class of cases or such matters pertaining to such class of cases, as the President may, by general or special order, specify: Provided further that if at any stage of the hearing of any such case or matter, it appears to the Member that the case or matter is of such a nature that it ought to be heard by a Bench consisting of two Members, the case or matter may be transferred by the President, or, as the case may be, referred to him for transfer, to such Bench as the President may deem fit. 1[(4) The Central Government shall, by notification, establish such number of benches of the Tribunal, as it may consider necessary, to exercise the jurisdiction, powers and authority of the Adjudicating Authority conferred on such Tribunal by or under Part II of the Insolvency and Bankruptcy Code, 2016 (31 of 2016).] (5) If the Members of a Bench differ in opinion on any point or points, it shall be decided according to the majority, if there is a majority, but if the Members are equally divided, they shall state the point or points on which they differ, and the case shall be referred by the President for hearing on such point or points by one or more of the other Members of the Tribunal and such point or points shall be decided according to the opinion of the majority of Members who have heard the case, including those who first heard it. **420. Orders of Tribunal.—(1) The Tribunal may, after giving the parties to any proceeding before it,** a reasonable opportunity of being heard, pass such orders thereon as it thinks fit. (2) The Tribunal may, at any time within two years from the date of the order, with a view to rectifying any mistake apparent from the record, amend any order passed by it, and shall make such amendment, if the mistake is brought to its notice by the parties: Provided that no such amendment shall be made in respect of any order against which an appeal has been preferred under this Act. (3) The Tribunal shall send a copy of every order passed under this section to all the parties concerned. **421. Appeal from orders of Tribunal.—(1) Any person aggrieved by an order of the Tribunal may** prefer an appeal to the Appellate Tribunal. _(2) No appeal shall lie to the Appellate Tribunal from an order made by the Tribunal with the consent_ of parties. _(3) Every appeal under sub-section (1) shall be filed within a period of forty-five days from the date on_ which a copy of the order of the Tribunal is made available to the person aggrieved and shall be in such form, and accompanied by such fees, as may be prescribed: Provided that the Appellate Tribunal may entertain an appeal after the expiry of the said period of forty five days from the date aforesaid, but within a further period not exceeding forty-five days, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within that period. _(4) On the receipt of an appeal under sub-section_ _(1), the Appellate Tribunal shall, after giving the_ parties to the appeal a reasonable opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or setting aside the order appealed against. (5) The Appellate Tribunal shall send a copy of every order made by it to the Tribunal and the parties to appeal. **422. Expeditious disposal by Tribunal and Appellate Tribunal.—(1) Every application or petition** presented before the Tribunal and every appeal filed before the Appellate Tribunal shall be dealt with and disposed of by it as expeditiously as possible and every endeavour shall be made by the Tribunal or the Appellate Tribunal, as the case may be, for the disposal of such application or petition or appeal within 1. Subs. by Act 31 of 2016, s. 255 and the Eleventh Schedule, for sub-section (4) (w.e.f. 15-11-2016). 236 ----- three months from the date of its presentation before the Tribunal or the filing of the appeal before the Appellate Tribunal. (2) Where any application or petition or appeal is not disposed of within the period specified in sub section (1), the Tribunal or, as the case may be, the Appellate Tribunal, shall record the reasons for not disposing of the application or petition or the appeal, as the case may be, within the period so specified; and the President or the Chairperson, as the case may be, may, after taking into account the reasons so recorded, extend the period referred to in sub-section (1) by such period not exceeding ninety days as he may consider necessary. **423. Appeal to Supreme Court.—Any person aggrieved by any order of the Appellate Tribunal may** file an appeal to the Supreme Court within sixty days from the date of receipt of the order of the Appellate Tribunal to him on any question of law arising out of such order: Provided that the Supreme Court may, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within the said period, allow it to be filed within a further period not exceeding sixty days. **424. Procedure before Tribunal and Appellate Tribunal.—(1) The Tribunal and the Appellate** Tribunal shall not, while disposing of any proceeding before it or, as the case may be, an appeal before it, be bound by the procedure laid down in the Code of Civil Procedure, 1908 (5 of 1908), but shall be guided by the principles of natural justice, and, subject to the other provisions of this Act [1][or of the Insolvency and Bankruptcy Code, 2016 (31 of 2016)] and of any rules made hereunder, the Tribunal and the Appellate Tribunal shall have power to regulate their own procedure. (2) The Tribunal and the Appellate Tribunal shall have, for the purposes of discharging their functions under this Act[ 1][or under the Insolvency and Bankruptcy Code, 2016 (31 of 2016)], the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) while trying a suit in respect of the following matters, namely:— (a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of documents; (c) receiving evidence on affidavits; (d) subject to the provisions of sections 123 and 124 of the Indian Evidence Act,1872 (1 of 1872), requisitioning any public record or document or a copy of such record or document from any office; (e) issuing commissions for the examination of witnesses or documents; (f) dismissing a representation for default or deciding it ex parte; (g) setting aside any order of dismissal of any representation for default or any order passed by it _ex parte; and_ (h) any other matter which may be prescribed. (3) Any order made by the Tribunal or the Appellate Tribunal may be enforced by that Tribunal in the same manner as if it were a decree made by a court in a suit pending therein, and it shall be lawful for the Tribunal or the Appellate Tribunal to send for execution of its orders to the court within the local limits of whose jurisdiction,— (a) in the case of an order against a company, the registered office of the company is situate; or (b) in the case of an order against any other person, the person concerned voluntarily resides or carries on business or personally works for gain. (4) All proceedings before the Tribunal or the Appellate Tribunal shall be deemed to be judicial proceedings within the meaning of sections 193 and 228, and for the purposes of section 196 of the Indian Penal Code (45 of 1860), and the Tribunal and the Appellate Tribunal shall be deemed to be civil court for the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). 1. Ins. by Act 31 of 2016, s. 255 and the Eleventh Schedule (w.e.f. 15-11-2016). 237 ----- **425. Power to punish for contempt.— The Tribunal and the Appellate Tribunal shall have the same** jurisdiction, powers and authority in respect of contempt of themselves as the High Court has and may exercise, for this purpose, the powers under the provisions of the Contempt of Courts Act, 1971(70 of 1971),which shall have the effect subject to modifications that— (a) the reference therein to a High Court shall be construed as including a reference to the Tribunal and the Appellate Tribunal; and (b) the reference to Advocate-General in section 15 of the said Act shall be construed as a reference to such Law Officers as the Central Government may, specify in this behalf. **426. Delegation of powers.—The Tribunal or the Appellate Tribunal may, by general or special order,** direct, subject to such conditions, if any, as may be specified in the order, any of its officers or employees or any other person authorised by it to inquire into any matter connected with any proceeding or, as the case may be, appeal before it and to report to it in such manner as may be specified in the order. **427. President, Members, officers, etc., to be public servants.—The President, Members, officers** and other employees of the Tribunal and the Chairperson, Members, officers and other employees of the Appellate Tribunal shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **428. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall** lie against the Tribunal, the President, Member, officer or other employee, or against the Appellate Tribunal, the Chairperson, Member, officer or other employees thereof or liquidator or any other person authorised by the Tribunal or the Appellate Tribunal for the discharge of any function under this Act in respect of any loss or damage caused or likely to be caused by any act which is in good faith done or intended to be done in pursuance of this Act. **429. Power to seek assistance of Chief Metropolitan Magistrate, etc.—[1][(1) The Tribunal may, in** any proceedings for winding up of a company under this Act or in any proceedings under the Insolvency and Bankruptcy Code, 2016 (31 of 2016), in order to take into custody or under its control all property, books of account or other documents, request, in writing, the Chief Metropolitan Magistrate, Chief Judicial Magistrate or the District Collector within whose jurisdiction any such property, books of account or other documents of such company under this Act or of corporate persons under the said Code, are situated or found, to take possession thereof, and the Chief Metropolitan Magistrate, Chief Judicial Magistrate or the District Collector, as the case may be, shall, on such request being made to him,— (a) take possession of such property, books of account or other documents; and (b) cause the same to be entrusted to the Tribunal or other persons authorised by it.] (2) For the purpose of securing compliance with the provisions of sub-section (1), the Chief Metropolitan Magistrate, Chief Judicial Magistrate or the District Collector may take or cause to be taken such steps and use or cause to be used such force as may, in his opinion, be necessary. (3) No act of the Chief Metropolitan Magistrate, Chief Judicial Magistrate or the District Collector done in pursuance of this section shall be called in question in any court or before any authority on any ground whatsoever. **430. Civil court not to have jurisdiction.—No civil court shall have jurisdiction to entertain any suit** or proceeding in respect of any matter which the Tribunal or the Appellate Tribunal is empowered to determine by or under this Act or any other law for the time being in force and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act or any other law for the time being in force, by the Tribunal or the Appellate Tribunal. **431. Vacancy in Tribunal or Appellate Tribunal not to invalidate acts or proceedings.—No act or proceeding** of the Tribunal or the Appellate Tribunal shall be questioned or shall be invalid merely on the ground of the existence of any vacancy or defect in the constitution of the Tribunal or the Appellate Tribunal, as the case may be. **432. Right to legal representation.—A party to any proceeding or appeal before the Tribunal or the Appellate** Tribunal, as the case may be, may either appear in person or authorise one or more chartered accountants or company 1. Subs. by Act 31 of 2016, s. 255 and the Eleventh Schedule, for section 429 (w.e.f. 15-11-2016). 238 ----- secretaries or cost accountants or legal practitioners or any other person to present his case before the Tribunal or the Appellate Tribunal, as the case may be. **433. Limitation.—The provisions of the Limitation Act, 1963 (36 of 1963) shall, as far as may be, apply to** proceedings or appeals before the Tribunal or the Appellate Tribunal, as the case maybe. **1[434. Transfer of certain pending proceedings.—(1) On such date as may be notified by the Central** Government in this behalf,— (a) all matters, proceedings or cases pending before the Board of Company Law Administration (herein in this section referred to as the Company Law Board) constituted under sub-section (1) of section 10E of the Companies Act, 1956 (1 of 1956), immediately before such date shall stand transferred to the Tribunal and the Tribunal shall dispose of such matters, proceedings or cases in accordance with the provisions of this Act; (b) any person aggrieved by any decision or order of the Company Law Board made before such date may file an appeal to the High Court within sixty days from the date of communication of the decision or order of the Company Law Board to him on any question of law arising out of such order: Provided that the High Court may if it is satisfied that the appellant was prevented by sufficient cause from filing an appeal within the said period, allow it to be filed within a further period not exceeding sixty days; and (c) all proceedings under the Companies Act, 1956 (1 of 1956), including proceedings relating to arbitration, compromise, arrangements and reconstruction and winding up of companies, pending immediately before such date before any District Court or High Court, shall stand transferred to the Tribunal and the Tribunal may proceed to deal with such proceedings from the stage before their transfer: Provided that only such proceedings relating to the winding up of companies shall be transferred to the Tribunal that are at a stage as may be prescribed by the Central Government: 2[Provided further that any party or parties to any proceedings relating to the winding up of companies pending before any Court immediately before the commencement of the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018, may file an application of transfer of such proceedings and the Court may by order transfer such proceedings to the Tribunal and the proceedings so transferred shall be dealt with by the Tribunal as an application for initiation of corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016 (31 of 2016). 3[Provided further that only such proceedings relating to cases other than winding-up, for which orders for allowing or otherwise of the proceedings are not reserved by the High Courts shall be transferred to the Tribunal 4[Provided also that]— (i) all proceedings under the Companies Act, 1956 other than the cases relating to winding up of companies that are reserved for orders for allowing or otherwise such proceedings; or (ii) the proceedings relating to winding up of companies which have not been transferred from the High Courts; shall be dealt with in accordance with provisions of the Companies Act, 1956 and the Companies (Court) Rules, 1959.] 5[Provided also that proceedings relating to cases of voluntary winding up of a company where notice of the resolution by advertisement has been given under sub-section (1) of section 485 of the Companies Act, 1956 but the company has not been dissolved before the 1st April, 2017 shall continue to be dealt with in accordance with provisions of the Companies Act, 1956 and the Companies (Court) Rules, 1959.] (2) The Central Government may make rules consistent with the provisions of this Act to ensure timely transfer of all matters, proceedings or cases pending before the Company Law Board or the courts, to the Tribunal under this section.] 1. Subs. by Act 31 of 2016, s. 255 and the Eleventh Schedule, for section 434 (w.e.f. 15-11-2016). 2. Ins. by Act 26 of 2018, s. 39 (w.e.f. 6-6-2018). 3. Ins. by Notification No. S.O. 3676(E), dated 7[th] December 2016 (w.e.f. 15-12-2016). 4. Subs. by Notification No. S.O. 2042(E), dated 29[th] June 2017 for “Provided further that” (w.e.f. 29-6-2017). 5. Ins., ibid. (w.e.f. 29-6-2017). 239 ----- CHAPTER XXVIII SPECIAL COURTS **1[435. Establishment of Special Courts.— (1) The Central Government may, for the purpose of** providing speedy trial of [2][offences under this Act, except under section 452, by notification] establish or designate as many Special Courts as may be necessary. (2) A Special Court shall consist of— (a) a single judge holding office as Session Judge or Additional Session Judge, in case of offences punishable under this Act with imprisonment of two years or more; and (b) a Metropolitan Magistrate or a Judicial Magistrate of the First Class, in the case of other offences, who shall be appointed by the Central Government with the concurrence of the Chief Justice of the High Court within whose jurisdiction the judge to be appointed is working.] **436. Offences triable by Special Courts.—(1) Notwithstanding anything contained in the Code of** Criminal Procedure, 1973 (2 of 1974),— (a) [3][all offences specified under sub-section (1) of section 435] shall be triable only by the Special Court established or designated for the area in which the registered office of the company in relation to which the offence is committed or where there are more Special Courts than one for such area, by such one of them as may be specified in this behalf by the High Court concerned; (b) where a person accused of, or suspected of the commission of, an offence under this Act is forwarded to a Magistrate under sub-section (2) or sub-section (2A) of section 167 of the Code of Criminal Procedure, 1973 (2 of 1974), such Magistrate may authorise the detention of such person in such custody as he thinks fit for a period not exceeding fifteen days in the whole where such Magistrate is a Judicial Magistrate and seven days in the whole where such Magistrate is an Executive Magistrate: Provided that where such Magistrate considers that the detention of such person upon or before the expiry of the period of detention is unnecessary, he shall order such person to be forwarded to the Special Court having jurisdiction; (c) the Special Court may exercise, in relation to the person forwarded to it under clause (b), the same power which a Magistrate having jurisdiction to try a case may exercise under section 167 of the Code of Criminal Procedure, 1973 (2 of 1974) in relation to an accused person who has been forwarded to him under that section; and (d) a Special Court may, upon perusal of the police report of the facts constituting an offence under this Act or upon a complaint in that behalf, take cognizance of that offence without the accused being committed to it for trial. (2) When trying an offence under this Act, a Special Court may also try an offence other than an offence under this Act with which the accused may, under the Code of Criminal Procedure, 1973 (2 of 1974) be charged at the same trial. (3) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), the Special Court may, if it thinks fit, try in a summary way any offence under this Act which is punishable with imprisonment for a term not exceeding three years: Provided that in the case of any conviction in a summary trial, no sentence of imprisonment for a term exceeding one year shall be passed: Provided further that when at the commencement of, or in the course of, a summary trial, it appears to the Special Court that the nature of the case is such that the sentence of imprisonment for a term exceeding one year may have to be passed or that it is, for any other reason, undesirable to try the case summarily, the Special Court shall, after hearing the parties, record an order to that effect and thereafter recall any witnesses who may have been examined and proceed to hear or rehear the case in accordance with the procedure for the regular trial. **437. Appeal and revision.—The High Court may exercise, so far as may be applicable, all the powers** conferred by Chapters XXIX and XXX of the Code of Criminal Procedure, 1973 (2 of 1974) on a High 1. Subs. by Act 1 of 2018, s. 86, for “section 435” (w.e.f. 7-5-2018). 2. Subs. by Act 29 of 2020, s. 60, for “offences under this Act, by notification” (w.e.f. 22-1-2021). 3. Subs. by Act 21 of 2015, s. 22, for “all offences under this Act” (w.e.f. 29-5-2015). 240 ----- Court, as if a Special Court within the local limits of the jurisdiction of the High Court were a Court of Session trying cases within the local limits of the jurisdiction of the High Court. **438. Application of Code to proceedings before Special Court.—Save as otherwise provided in this** Act, the provisions of the Code of Criminal Procedure, 1973 (2 of 1974) shall apply to the proceedings before a Special Court and for the purposes of the said provisions, the Special Court shall be [1][deemed to be a Court of Session or the court of Metropolitan Magistrate or a Judicial Magistrate of the First Class, as the case may be,] and the person conducting a prosecution before a Special Court shall be deemed to be a Public Prosecutor. **439. Offences to be non-cognizable.—(1) Notwithstanding anything in the Code of Criminal** Procedure, 1973 (2 of 1974), every offence under this Act except the offences referred to in sub-section (6) of section 212 shall be deemed to be non-cognizable within the meaning of the said Code. (2) No court shall take cognizance of any offence under this Act which is alleged to have been committed by any company or any officer thereof, except on the complaint in writing of the Registrar, a shareholder [2][or a member] of the company, or of a person authorised by the Central Government in that behalf: Provided that the court may take cognizance of offences relating to issue and transfer of securities and non-payment of dividend, on a complaint in writing, by a person authorised by the Securities and Exchange Board of India: Provided further that nothing in this sub-section shall apply to a prosecution by a company of any of its officers. (3) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974),where the complainant under sub-section (2) is the Registrar or a person authorised by the Central Government, the presence of such officer before the Court trying the offences shall not be necessary unless the court requires his personal attendance at the trial. (4) The provisions of sub-section (2) shall not apply to any action taken by the liquidator of a company in respect of any offence alleged to have been committed in respect of any of the matters in Chapter XX or in any other provision of this Act relating to winding up of companies. _Explanation.—The liquidator of a company shall not be deemed to be an officer of the company within_ the meaning of sub-section (2). **440. Transitional provisions.—Any offence committed under this Act, which is triable by a Special** Court shall, until a Special Court is established, be tried by a [3][Court of Session or the Court of Metropolitan Magistrate or a Judicial Magistrate of the First Class, as the case may be] exercising jurisdiction over the area, notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974): Provided that nothing contained in this section shall affect the powers of the High Court under section 407 of the Code to transfer any case or class of cases taken cognizance by a [1][Court of Session or the Court of Metropolitan Magistrate or a Judicial Magistrate of the First Class, as the case may be] under this section. **441. Compounding of certain offences.—(1) Notwithstanding anything contained in the Code of** Criminal Procedure, 1973 (2 of 1974), any offence punishable under this Act (whether committed by a company or any officer thereof) [4][not being an offence punishable with imprisonment only, or punishable with imprisonment and also with fine], may, either before or after the institution of any prosecution, be compounded by— (a) the Tribunal; or (b) where the maximum amount of fine which may be imposed for such offence [5][does not exceed twenty-five lakh rupees], by the Regional Director or any officer authorised by the Central Government, on payment or credit, by the company or, as the case may be, the officer, to the Central Government of 1. Subs. by Act 1 of 2018, s. 87 for “deemed to be a Court of Session” (w.e.f. 7-5-2018). 2. Ins. by Act 1 of 2018, s. 88 (w.e.f. 7-5-2018). 3. Subs. by s. 89, ibid., for “Court of Session” (w.e.f. 7-5-2018). 3. Subs. by s. 90, ibid., for “with fine only”(w.e.f. 9-2-2018). 4. Subs. by Act 22 of 2019, s. 39, for “does not exceed five lakh rupees” (w.e.f. 2-11-2018). 241 ----- such sum as that Tribunal or the Regional Director or any officer authorised by the Central Government, as the case may be, may specify: Provided that the sum so specified shall not, in any case, exceed the maximum amount of the fine which may be imposed for the offence so compounded: Provided further that in specifying the sum required to be paid or credited for the compounding of an offence under this sub-section, the sum, if any, paid by way of additional fee under sub-section (2) of section 403 shall be taken into account: Provided also that any offence covered under this sub-section by any company or its officer shall not be compounded if the investigation against such company has been initiated or is pending under this Act. (2) Nothing in sub-section (1) shall apply to an offence committed by a company or its officer within a period of three years from the date on which a similar offence committed by it or him was compounded under this section. _Explanation.—For the purposes of this section,—_ (a) any second or subsequent offence committed after the expiry of a period of three years from the date on which the offence was previously compounded, shall be deemed to be a first offence; (b) “Regional Director” means a person appointed by the Central Government as a Regional Director for the purposes of this Act. (3) (a) Every application for the compounding of an offence shall be made to the Registrar who shall forward the same, together with his comments thereon, to the Tribunal or the Regional Director or any officer authorised by the Central Government, as the case may be. (b) Where any offence is compounded under this section, whether before or after the institution of any prosecution, an intimation thereof shall be given by the company to the Registrar within seven days from the date on which the offence is so compounded. (c) Where any offence is compounded before the institution of any prosecution, no prosecution shall be instituted in relation to such offence, either by the Registrar or by any share holder of the company or by any person authorised by the Central Government against the offender in relation to whom the offence is so compounded. (d) Where the compounding of any offence is made after the institution of any prosecution, such compounding shall be brought by the Registrar in writing, to the notice of the court in which the prosecution is pending and on such notice of the compounding of the offence being given, the company or its officer in relation to whom the offence is so compounded shall be discharged. (4) The Tribunal or the Regional Director or any officer authorised by the Central Government, as the case may be, while dealing with a proposal for the compounding of an offence for a default in compliance with any provision of this Act which requires a company or its officer to file or register with, or deliver or send to, the Registrar any return, account or other document, may direct, by an order, if it or he thinks fit to do so, any officer or other employee of the company to file or register with, or on payment of the fee, and the additional fee, required to be paid under section 403, such return, account or other document within such time as may be specified in the order. 1[(5) If any officer or other employee of the company who fails to comply with any order made by the Tribunal or the Regional Director or any officer authorised by the Central Government under sub-section (4), the maximum amount of fine for the offence proposed to be compounded under this section shall be twice the amount provided in the corresponding section in which punishment for such offence is provided.] 2[(6) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), any offence which is punishable under this Act with imprisonment only or with imprisonment and also with fine shall not be compoundable.] (7) No offence specified in this section shall be compounded except under and in accordance with the provisions of this section. 1. Subs. by Act 29 of 2020, s. 61, for sub-section (5) (w.e.f. 21-12-2020). 2. Subs. by Act 22 of 2019, s. 39, for sub-section (6) (w.e.f. 2-11-2018). 242 ----- **442. Mediation and Conciliation Panel.—(1) The Central Government shall maintain a panel of** experts to be called as the Mediation and Conciliation Panel consisting of such number of experts having such qualifications as may be prescribed for mediation between the parties during the pendency of any proceedings before the Central Government or the Tribunal or the Appellate Tribunal under this Act. (2) Any of the parties to the proceedings may, at any time during the proceedings before the Central Government or the Tribunal or the Appellate Tribunal, apply to the Central Government or the Tribunal or the Appellate Tribunal, as the case may be, in such form along with such fees as may be prescribed, for referring the matter pertaining to such proceedings to the Mediation and Conciliation Panel and the Central Government or the Tribunal or the Appellate Tribunal, as the case may be, shall appoint one or more experts from the panel referred to in sub-section (1). (3) The Central Government or the Tribunal or the Appellate Tribunal before which any proceeding is pending may, suo motu, refer any matter pertaining to such proceeding to such number of experts from the Mediation and Conciliation Panel as the Central Government or the Tribunal or the Appellate Tribunal, as the case may be, deems fit. (4) The fee and other terms and conditions of experts of the Mediation and Conciliation Panel shall be such as may be prescribed. (5) The Mediation and Conciliation Panel shall follow such procedure as may be prescribed and dispose of the matter referred to it within a period of three months from the date of such reference and forward its recommendations to the Central Government or the Tribunal or the Appellate Tribunal, as the case may be. (6) Any party aggreived by the recommendation of the Mediation and Conciliation Panel may file objections to the Central Government or the Tribunal or the Appellate Tribunal, as the case may be. **443. Power of Central Government to appoint company prosecutors.—Notwithstanding anything** contained in the Code of Criminal Procedure, 1973 (2 of 1974), the Central Government may appoint generally, or for any case, or in any case, or for any specified class of cases in any local area, one or more persons, as company prosecutors for the conduct of prosecutions arising out of this Act and the persons so appointed as company prosecutors shall have all the powers and privileges conferred by the Code on Public Prosecutors appointed under section 24 of the Code. **444. Appeal against acquittal.—Notwithstanding anything contained in the Code of Criminal** Procedure, 1973 (2 of 1974), the Central Government may, in any case arising under this Act, direct any company prosecutor or authorise any other person either by name or by virtue of his office, to present an appeal from an order of acquittal passed by any court, other than a High Court, and an appeal presented by such prosecutor or other person shall be deemed to have been validly presented to the appellate court. **445. Compensation for accusation without reasonable cause.—The provisions of section 250 of the** Code of Criminal Procedure, 1973 (2 of 1974) shall apply mutatis mutandis to compensation for accusation without reasonable cause before the Special Court or the Court of Session. **446. Application of fines.—The court imposing any fine under this Act may direct that the whole or** any part thereof shall be applied in or towards payment of the costs of the proceedings, or in or towards the payment of a reward to the person on whose information the proceedings were instituted. **1[446A. Factors for determining level of punishment.—The court or the Special Court, while deciding** the amount of fine or imprisonment under this Act, shall have due regard to the following factors, namely:— (a) size of the company; (b) nature of business carried on by the company; (c) injury to public interest; (d) nature of the default; and _(e) repetition of the default._ **2[446B. Lesser penalties for certain companies.—Notwithstanding anything contained in this Act, if** penalty is payable for non-compliance of any of the provisions of this Act by a One Person Company, small company, start-up company or Producer Company, or by any of its officer in default, or any other person in respect of such company, then such company, its officer in default or any other person, as the case may 1. Ins. by Act 1 of 2018, s. 91 (w.e.f. 9-2-2018). 2. Subs. by Act 29 of 2020, s. 62, for section 446B (w.e.f. 22-1-2021). 243 ----- be, shall be liable to a penalty which shall not be more than one-half of the penalty specified in such provisions subject to a maximum of two lakh rupees in case of a company and one lakh rupees in case of an officer who is in default or any other person, as the case may be. _Explanation.—For the purposes of this section,—_ (a) “Producer Company” means a company as defined in clause (l) of section 378A; (b) “start-up company” means a private company incorporated under this Act or under the Companies Act, 1956 (1 of 1956) and recognised as start-up in accordance with the notification issued by the Central Government in the Department for Promotion of Industry and Internal Trade.] CHAPTER XXIX MISCELLANEOUS **447. Punishment for fraud.—Without prejudice to any liability including repayment of any debt under** this Actor any other law for the time being in force, any person who is found to be guilty of fraud, 1[involving an amount of at least ten lakh rupees or one per cent. of the turnover of the company, whichever is lower] shall be punishable with imprisonment for a term which shall not be less than six months but which may extend to ten years and shall also be liable to fine which shall not be less than the amount involved in the fraud, but which may extend to three times the amount involved in the fraud: Provided that where the fraud in question involves public interest, the term of imprisonment shall not be less than three years. 2[Provided further that where the fraud involves an amount less than ten lakh rupees or one per cent. of the turnover of the company, whichever is lower, and does not involve public interest, any person guilty of such fraud shall be punishable with imprisonment for a term which may extend to five years or with fine which may extend to [3][fifty lakh rupees] or with both.] _Explanation.—For the purposes of this section—_ (i) “fraud”, in relation to affairs of a company or any body corporate, includes any act, omission, concealment of any fact or abuse of position committed by any person or any other person with the connivance in any manner, with intent to deceive, to gain undue advantage from, or to injure the interests of, the company or its shareholders or its creditors or any other person, whether or not there is any wrongful gain or wrongful loss; (ii) “wrongful gain” means the gain by unlawful means of property to which the person gaining is not legally entitled; (iii) “wrongful loss” means the loss by unlawful means of property to which the person losing is legally entitled. **448. Punishment for false statement.— Save as otherwise provided in this Act, if in any return, report,** certificate, financial statement, prospectus, statement or other document required by, or for, the purposes of any of the provisions of this Act or the rules made thereunder, any person makes a statement,— (a) which is false in any material particulars, knowing it to be false; or (b) which omits any material fact, knowing it to be material, he shall be liable under section 447. **449. Punishment for false evidence.—Save as otherwise provided in this Act, if any person** intentionally gives false evidence— (a) upon any examination on oath or solemn affirmation, authorised under this Act; or (b) in any affidavit, deposition or solemn affirmation, in or about the winding up of any company under this Act, or otherwise in or about any matter arising under this Act, he shall be punishable with imprisonment for a term which shall not be less than three years but which may extend to seven years and with fine which may extend to ten lakh rupees. **450. Punishment where no specific penalty or punishment is provided.—If a company or any** officer of a company or any other person contravenes any of the provisions of this Act or the rules made 1. Ins. by Act 1 of 2018, s. 92 (w.e.f. 9-2-2018). 2. The proviso ins. by s. 92, ibid. (w.e.f. 9-2-2018). 3. Subs. by Act 22 of 2019, s. 41, for “twenty lakh rupees” (w.e.f. 2-11-2018). 244 ----- thereunder, or any condition, limitation or restriction subject to which any approval, sanction, consent, confirmation, recognition, direction or exemption in relation to any matter has been accorded, given or granted, and for which no penalty or punishment is provided elsewhere in this Act, the company and every officer of the company who is in default or such other person shall be [1][liable to a penalty of ten thousand rupees, and in case of continuing contravention, with a further penalty of on thousand rupees for each day after the first during which the contravention continue, subject to a maximum of two lakh rupees in case of a company and fifty thousand rupees in case of an officer who is in default or any other person]. **451. Punishment in case of repeated default.—If a company or an officer of a company commits an** offence punishable either with fine or with imprisonment and where the same offence is committed for the second or subsequent occasions within a period of three years, then, that company and every officer thereof who is in default shall be punishable with twice the amount of fine for such offence in addition to any imprisonment provided for that offence. **452. Punishment for wrongful withholding of property.—(1) If any officer or employee of a** company— (a) wrongfully obtains possession of any property, including cash of the company; or (b) having any such property including cash in his possession, wrongfully withholds it or knowingly applies it for the purposes other than those expressed or directed in the articles and authorised by this Act,3 he shall, on the complaint of the company or of any member or creditor or contributory thereof, be punishable with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees. (2) The Court trying an offence under sub-section (1) may also order such officer or employee to deliver up or refund, within a time to be fixed by it, any such property or cash wrongfully obtained or wrongfully withheld or knowingly misapplied, the benefits that have been derived from such property or cash or in default, to undergo imprisonment for a term which may extend to two years. 2[Provided that the imprisonment of such officer or employee, as the case may be, shall not be ordered for wrongful possession or withholding of a dwelling unit, if the court is satisfied that the company has not paid to that officer or employee, as the case may be, any amount relating to- (a) provident fund, pension fund, gratuity fund or any other fund for the welfare of its officers or employees, maintained by the company; (b) compensation or liability for compensation under the Workmen's Compensation Act, 1923 (19 of 1923) in respect of death or disablement.] **453. Punishment for improper use of “Limited” or “Private Limited”.—If any person or persons** trade or carry on business under any name or title, of which the word “Limited” or the words “Private Limited” or any contraction or imitation thereof is or are the last word or words, that person or each of those persons shall, unless duly incorporated with limited liability, or unless duly incorporated as a private company with limited liability, as the case may be, punishable with fine which shall not be less than five hundred rupees but may extend to two thousand rupees for every day for which that name or title has been used. **454. Adjudication of penalties.—(1) The Central Government may, by an order published in the** Official Gazette, appoint as many officers of the Central Government, not below the rank of Registrar, as adjudicating officers for adjudging penalty under the provisions of this Act in the manner as may be prescribed. (2) The Central Government shall while appointing adjudicating officers, specify their jurisdiction in the order under sub-section (1). 3[(3) The adjudicating officer may, by an order— (a) impose the penalty on the company, the officer who is in default, or any other person, as the case may be, stating therein any non-compliance or default under the relevant provisions of this Act; and 4. Subs. by Act 29 of 2020, s. 63, for certain words (w.e.f. 21-12-2020). 1. Ins. by Act 29 of 2020, s. 64 (w.e.f. 22-1-2021). 2. Subs. by Act 22 of 2019, s. 42, for sub-section (3) (w.e.f. 2-11-2018). 245 ----- (b) direct such company, or officer who is in default, or any other person, as the case may be, to rectify the default, wherever he considers fit.] 1[Provided that in case the default relates to non-compliance of sub-section (4) of section 92 or sub section (1) or sub-section (2) of section 137 and such default has been rectified either prior to, or within thirty days of, the issue of the notice by the adjudicating officer, no penalty shall be imposed in this regard and all proceedings under this section in respect of such default shall be deemed to be concluded.] (4) The adjudicating officer shall, before imposing any penalty, give a reasonable opportunity of being heard to [2][such company, the officer who is in default or any other person]. (5) Any person aggrieved by an order made by the adjudicating officer under sub-section (3) may prefer an appeal to the Regional Director having jurisdiction in the matter. (6) Every appeal under sub-section (5) shall be filed within sixty days from the date on which the copy of the order made by the adjudicating officer is received by the aggrieved person and shall be in such form, manner and be accompanied by such fees as may be prescribed. (7) The Regional Director may, after giving the parties to the appeal an opportunity of being heard, pass such order as he thinks fit, confirming, modifying or setting aside the order appealed against. (8) (i) Where company [3][fails to comply with the order made under sub-section (3) or sub-section (7), as the case may be,] within a period of ninety days from the date of the receipt of the copy of the order, the company shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees. (ii) [4][Where an officer of a company or any other person] who is in default [5][fails to comply with the order made under sub-section (3) or sub-section (7), as the case may be,] within a period of ninety days from the date of the receipt of the copy of the order, such officer shall be punishable with imprisonment which may extend to six months or with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees, or with both. 6[454A.Penalty for repeated default.—Where a company or an officer of a company or any other person having already been subjected to penalty for default under any provisions of this Act, again commits such default within a period of three years from the date of order imposing such penalty passed by the adjudicating officer or the Regional Director, as the case may be, it or he shall be liable for the second or subsequent defaults for an amount equal to twice the amount of penalty provided for such default under the relevant provisions of this Act.] **455. Dormant company.—(1) Where a company is formed and registered under this Act for a future** project or to hold an asset or intellectual property and has no significant accounting transaction, such a company or an inactive company may make an application to the Registrar in such manner as may be prescribed for obtaining the status of a dormant company. _Explanation.—For the purposes of this section,—_ (i) “inactive company” means a company which has not been carrying on any business or operation, or has not made any significant accounting transaction during the last two financial years, or has not filed financial statements and annual returns during the last two financial years; (ii) “significant accounting transaction” means any transaction other than— (a) payment of fees by a company to the Registrar; (b) payments made by it to fulfil the requirements of this Act or any other law; (c) allotment of shares to fulfil the requirements of this Act; and (d) payments for maintenance of its office and records. 3. Ins. by Act 29 of 2020, s. 65 (w.e.f. 22-1-2021). 1. Subs. by Act 22 of 2019, s. 42, for “such company and the officer who is in default” (w.e.f. 2-11-2018). 2. Subs. by s. 42, ibid., for “does not pay the penalty imposed by the adjudicating officer or the Regional Director” (w.e.f. 2-11 2018). 3. The words “Where an officer of a company or any other person” omitted by s. 42, ibid., (w.e.f. 2-11-2018). 4. The words “does not pay the penalty” omitted by s. 42, ibid. (w.e.f.. 2-11-2018). 5. Ins. by s. 43, ibid. (w.e.f. 2-11-2018). 246 ----- (2) The Registrar on consideration of the application shall allow the status of a dormant company to the applicant and issue a certificate in such form as may be prescribed to that effect. (3) The Registrar shall maintain a register of dormant companies in such form as maybe prescribed. (4) In case of a company which has not filed financial statements or annual returns for two financial years consecutively, the Registrar shall issue a notice to that company and enter the name of such company in the register maintained for dormant companies. (5) A dormant company shall have such minimum number of directors, file such documents and pay such annual fee as may be prescribed to the Registrar to retain its dormant status in the register and may become an active company on an application made in this behalf accompanied by such documents and fee as may be prescribed. (6) The Registrar shall strike off the name of a dormant company from the register of dormant companies, which has failed to comply with the requirements of this section. **456. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall** lie against the Government or any officer of the Government or any other person in respect of anything which is in good faith done or intended to be done in pursuance of this Act or of any rules or orders made thereunder, or in respect of the publication by or under the authority of the Government or such officer, of any report, paper or proceedings. **457. Non-disclosure of information in certain cases.—Notwithstanding anything contained in any** other law for the time being in force, the Registrar, any officer of the Government or any other person shall not be compelled to disclose to any court, Tribunal or other authority, the source from where he got any information which— (a) has led the Central Government to order an investigation under section 210; or (b) is or has been material or relevant in connection with such investigation. **458. Delegation by Central Government of its powers and functions.—(1) The Central Government** may, by notification, and subject to such conditions, limitations and restrictions as may be specified therein, delegate any of its powers or functions under this Act other than the power to make rules to such authority or officer as may be specified in the notification: 1* - - - (2) A copy of every notification issued under sub-section (1) shall, as soon as may be after it is issued, be laid before each House of Parliament. **459. Powers of Central Government of Tribunal to accord approval, etc., subject to conditions** **and to prescribe fees on applications.—(1) Where the Central Government or the Tribunal is required or** authorised by any provision of this Act— (a) to accord approval, sanction, consent, confirmation or recognition to, or in relation to, any matter; or (b) to give any direction in relation to any matter; or (c) to grant any exemption in relation to any matter, then, the Central Government or the Tribunal may in the absence of anything to the contrary contained in that provision or any other provision of this Act, accord, give or grant such approval, sanction, consent, confirmation, recognition, direction or exemption, subject to such conditions, limitations or restrictions as it may think fit to impose and may, in the case of a contravention of any such condition, limitation or restriction, rescind or withdraw such approval, sanction, consent, confirmation, recognition, direction or exemption. (2) Save as otherwise provided in this Act, every application which may be, or is required to be, made to the Central Government or the Tribunal under any provision of this Act— (a) in respect of any approval, sanction, consent, confirmation or recognition to be accorded by that Government or the Tribunal to, or in relation to, any matter; or 1. The proviso omitted by Act 1 of 2018, s. 93 (w.e.f. 9-2-2018). 247 ----- (b) in respect of any direction or exemption to be given or granted by that Government or the Tribunal in relation to any matter; or (c) in respect of any other matter, shall be accompanied by such fees as may be prescribed: Provided that different fees may be prescribed for applications in respect of different matters or in case of applications by different classes of companies. **460. Condonation of delay in certain cases.—Notwithstanding anything contained in this Act,—** (a) where any application required to be made to the Central Government under any provision of this Act in respect of any matter is not made within the time specified therein, that Government may, for reasons to be recorded in writing, condone the delay; and (b) where any document required to be filed with the Registrar under any provision of this Act is not filed within the time specified therein, the Central Government may, for reasons to be recorded in writing, condone the delay. **461. Annual report by Central Government.—The Central Government shall cause a general annual** report on the working and administration of this Act to be prepared and laid before each House of Parliament within one year of the close of the year to which the report relates. **462. Power to exempt class or classes of companies from provisions of this Act.—(1) The Central** Government may in the public interest, by notification direct that any of the provisions of this Act,— (a) shall not apply to such class or classes of companies; or (b) shall apply to the class or classes of companies with such exceptions, modifications and adaptations as may be specified in the notification. 1[(2) A copy of every notification proposed to be issued under sub-section (1), shall be laid in draft before each House of Parliament, while it is in session, for a total period of thirty days, and if, both Houses agree in disapproving the issue of notification or both Houses agree in making any modification in the notification, the notification shall not be issued or, as the case may be, shall be issued only in such modified form as may be agreed upon by both the Houses. (3) In reckoning any such period of thirty days as is referred to in sub-section (2), no account shall be taken of any period during which the House referred to in sub-section (2) is prorogued or adjourned for more than four consecutive days. (4) The copies of every notification issued under this section shall, as soon as may be after it has been issued, be laid before each House of Parliament.] **463. Power of court to grant relief in certain cases.—(1) If in any proceeding for negligence, default,** breach of duty, misfeasance or breach of trust against an officer of a company, it appears to the court hearing the case that he is or may be liable in respect of the negligence, default, breach of duty, misfeasance or breach of trust, but that he has acted honestly and reasonably, and that having regard to all the circumstances of the case, including those connected with his appointment, he ought fairly to be excused, the court may relieve him, either wholly or partly, from his liability on such term, as it may think fit: Provided that in a criminal proceeding under this sub-section, the court shall have no power to grant relief from any civil liability which may attach to an officer in respect of such negligence, default, breach of duty, misfeasance or breach of trust. (2) Where any such officer has reason to apprehend that any proceeding will or might be brought against him in respect of any negligence, default, breach of duty, misfeasance or breach of trust, he may apply to the High Court for relief and the High Court on such application shall have the same power to relieve him as it would have had if it had been a court before which a proceedings against that officer for negligence, default, breach of duty, misfeasance or breach of trust had been brought under sub-section (1). (3) No court shall grant any relief to any officer under sub-section (1) or sub-section (2) unless it has, by notice served in the manner specified by it, required the Registrar and such other person, if any, as it thinks necessary, to show cause why such relief should not be granted. 1. Subs. by Act 21 of 2015, s. 23, for sub-section (2) (w.e.f. 29-5-2015). 248 ----- **464. Prohibition of association or partnership of persons exceeding certain number.—(1) No** association or partnership consisting of more than such number of persons as may be prescribed shall be formed for the purpose of carrying on any business that has for its object the acquisition of gain by the association or partnership or by the individual members thereof, unless it is registered as a company under this Act or is formed under any other law for the time being in force: Provided that the number of persons which may be prescribed under this sub-section shall not exceed one hundred. (2) Nothing in sub-section (1) shall apply to— (a) a Hindu undivided family carrying on any business; or (b) an association or partnership, if it is formed by professionals who are governed by special Acts. (3) Every member of an association or partnership carrying on business in contravention of sub section (1) shall be punishable with fine which may extend to one lakh rupees and shall also be personally liable for all liabilities incurred in such business. **465. Repeal of certain enactments and savings.—(1) The Companies Act, 1956 (1 of 1956) and the** Registration of Companies (Sikkim) Act, 1961 (Sikkim Act 8 of 1961) (hereafter in this section referred to as the repealed enactments) shall stand repealed: 1* - - - 2[Provided that] until a date is notified by the Central Government under sub-section (1) of Section 434 for transfer of all matters, proceedings or cases to the Tribunal, the provisions of the Companies Act, 1956 (1 of 1956) in regard to the jurisdiction, powers, authority and functions of the Board of Company Law Administration and court shall continue to apply as if the Companies Act, 1956 has not been repealed: 3[Provided further that] provisions of the Companies Act, 1956 (1 of 1956) referred in the notification issued under section 67 of the Limited Liability Partnership Act, 2008 (6 of 2009) shall, until the relevant notification under such section applying relevant corresponding provisions of this Act to limited liability partnerships is issued, continue to apply as if the Companies Act, 1956 has not been repealed. (2) Notwithstanding the repeal under sub-section (1) of the repealed enactments,— (a) anything done or any action taken or purported to have been done or taken, including any rule, notification, inspection, order or notice made or issued or any appointment or declaration made or any operation undertaken or any direction given or any proceeding taken or any penalty, punishment, forfeiture or fine imposed under the repealed enactments shall, insofar as it is not inconsistent with the provisions of this Act, be deemed to have been done or taken under the corresponding provisions of this Act; (b) subject to the provisions of clause (a), any order, rule, notification, regulation, appointment, conveyance, mortgage, deed, document or agreement made, fee directed, resolution passed, direction given, proceeding taken, instrument executed or issued, or thing done under or in pursuance of any repealed enactment shall, if in force at the commencement of this Act, continue to be in force, and shall have effect as if made, directed, passed, given, taken, executed, issued or done under or in pursuance of this Act; (c) any principle or rule of law, or established jurisdiction, form or course of pleading, practice or procedure or existing usage, custom, privilege, restriction or exemption shall not be affected, notwithstanding that the same respectively may have been in any manner affirmed or recognised or derived by, in, or from, the repealed enactments; (d) any person appointed to any office under or by virtue of any repealed enactment shall be deemed to have been appointed to that office under or by virtue of this Act; (e) any jurisdiction, custom, liability, right, title, privilege, restriction, exemption, usage, practice, procedure or other matter or thing not in existence or in force shall not be revised or restored; (f) the offices existing on the commencement of this Act for the registration of companies shall continue as if they have been established under the provisions of this Act; 1. The first proviso omitted by Act 29 of 2020, s. 66 (w.e.f. 11-2-2021). 2. Subs. by s. 66, ibid., for “Provided further that” (w.e.f. 11-2-2021). 3. Subs. by s.66, ibid., for “Provided also that” (w.e.f. 11-2-2021). 249 ----- (g) the incorporation of companies registered under the repealed enactments shall continue to be valid and the provisions of this Act shall apply to such companies as if they were registered under this Act; (h) all registers and all funds constituted and established under the repealed enactments shall be deemed to be registers and funds constituted or established under the corresponding provisions of this Act; (i) any prosecution instituted under the repealed enactments and pending immediately before the commencement of this Act before any Court shall, subject to the provisions of this Act, continue to be heard and disposed of by the said Court; (j) any inspection, investigation or inquiry ordered to be done under the Companies Act, 1956 (1 of 1956) shall continue to be proceeded with as if such inspection, investigation or inquiry has been ordered under the corresponding provisions of this Act; and (k) any matter filed with the Registrar, Regional Director or the Central Government under the Companies Act, 1956 (1 of 1956) before the commencement of this Act and not fully addressed at that time shall be concluded by the Registrar, Regional Director or the Central Government, as the case may be, in terms of that Act, despite its repeal. (3) The mention of particular matters in sub-section (2) shall not be held to prejudice the general application of section 6 of the General Clauses Act, 1897 (10 of 1897) with regard to the effect of repeal of the repealed enactments as if the Registration of Companies (Sikkim) Act, 1961 (Sikkim Act 8 of 1961) were also a Central Act. **466. Dissolution of Company Law Board and consequential provisions.—(1) Notwithstanding** anything contained in section 465, the Board of Company Law Administration constituted under the Companies Act, 1956 (1 of 1956) (hereafter in this section referred to as the Company Law Board) shall stand dissolved on the constitution of the Tribunal and the Appellate Tribunal: Provided that until the Tribunal and the Appellate Tribunal is constituted, the Chairman, Vice Chairman and Members of the Company Law Board immediately before the constitution of the Tribunal and the Appellate Tribunal, who fulfil the qualifications and requirements provided under this Act regarding appointment as President or Chairperson or Member of the Tribunal or the Appellate Tribunal, shall function as President, Chairperson or Member of the Tribunal or the Appellate Tribunal: Provided further that every officer or other employee, who had been appointed on deputation basis to the Company Law Board, shall, on such dissolution,— (i) become officer or employee of the Tribunal or the Appellate Tribunal, if he fulfils the qualifications and requirements under this Act; and (ii) stand reverted to his parent cadre, Ministry or Department, in any other case: Provided also that every officer and the other employee of the Company Law Board, employed on regular basis by that Board, shall become, on and from such dissolution the officer and other employee, respectively, of the Tribunal or the Appellate Tribunal with the same rights and privileges as to pension, gratuity and other like benefits as would have been admissible to him if he had continued to serve that Board and shall continue to do so unless and until his employment in the Tribunal or the Appellate Tribunal is duly terminated or until his remuneration, terms and conditions of employment are duly altered by the Tribunal or the Appellate Tribunal, as the case may be: Provided also that notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1947) or in any other law for the time being in force, any officer or other employee who becomes an officer or other employee of the Tribunal or the Appellate Tribunal under the preceding proviso shall not be entitled to any compensation under this Act or under any other law for the time being in force and no such claim shall be entertained by any court, tribunal or other authority: Provided also that where the Company Law Board has established a provident fund, superannuation fund, welfare fund or other fund for the benefit of the officers and other employees employed in that Board, the monies relatable to the officers and other employees who have become officers or employees of the Tribunal or the Appellate Tribunal shall, out of the monies standing to the credit of such provident fund, superannuation fund, welfare fund or other fund, stand transferred to, and vest in, the Tribunal or the 250 ----- Appellate Tribunal, as the case may be, and such monies which stand so transferred shall be dealt with by the Tribunal or the Appellate Tribunal in such manner as may be prescribed. (2) The persons holding the offices of Chairman, Vice-Chairman and Members, and officers and other employees of the Company Law Board immediately before the constitution of the Tribunal and the Appellate Tribunal who are not covered under proviso to sub-section(1) shall vacate their respective offices on such constitution and no such Chairman, Vice-Chairman and Members and officers or other employees shall be entitled to claim any compensation for the premature termination of the term of his office or of any contract of service, if any. **467. Power of Central Government to amend Schedules.—(1) Subject to the provisions of this** section, the Central Government may, by notification, alter any of the regulations, rules, Tables, forms and other provisions contained in any of the Schedules to this Act. (2) Any alteration notified under sub-section (1) shall have effect as if enacted in this Act and shall come into force on the date of the notification, unless the notification otherwise directs: Provided that no such alteration in Table F of Schedule I shall apply to any company registered before the date of such alteration. (3) Every alteration made by the Central Government under sub-section (1) shall be laid as soon as may be after it is made before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the alteration, or both Houses agree that the alteration should not be made, the alteration shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done in pursuance of that alteration. **468. Powers of Central Government to make rules relating to winding up.—(1) The Central** Government shall, make rules consistent with the Code of Civil Procedure, 1908 (5 of 1908) providing for all matters relating to the winding up of companies, which by this Act, are to be prescribed, and may make rules providing for all such matters, as may be prescribed. 1[(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (i) as to the mode of proceedings to be held for winding up of a company by the Tribunal under this Act; (ii) for the holding of meetings of creditors and members in connection with proceedings under section 230; (iii) for giving effect to the provisions of this Act as to the reduction of the capital; (iv) generally for all applications to be made to the Tribunal under the provisions of this Act; (v) the holding and conducting of meetings to ascertain the wishes of creditors and contributories; (vi) the settling of lists of contributories and the rectifying of the register of members where required, and collecting and applying the assets; (vii) the payment, delivery, conveyance, surrender or transfer of money, property, books or papers to the liquidator; (viii) the making of calls; and (ix) the fixing of a time within which debts and claims shall be proved.] (3) All rules made by the Supreme Court on the matters referred to in this section as it stood immediately before the commencement of this Act and in force at such commencement, shall continue to be in force, till such time the rules are made by the Central Government and any reference to the High Court in relation to winding up of a company in such rules shall be construed as a reference to the Tribunal. **469. Power of Central Government to make rules.—(1) The Central Government may, by** notification, make rules for carrying out the provisions of this Act. 1. Subs. by Act 31 of 2016, s. 255 and the Eleventh Schedule, for sub-section (2) (w.e.f. 15-11-2016). 251 ----- (2) Without prejudice to the generality of the provisions of sub-section (1), the Central Government may make rules for all or any of the matters which by this Act are required to be, or may be, prescribed or in respect of which provision is to be or may be made by rules. (3) Any rule made under sub-section (1) may provide that a contravention thereof shall be punishable with fine which may extend to five thousand rupees and where the contravention is a continuing one, with a further fine which may extend to five hundred rupees for every day after the first during which such contravention continues. (4) Every rule made under this section and every regulation made by Securities and Exchange Board under this Act, shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. **470. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made after the expiry of a period of five years from the date of commencement of section 1 of this Act. (2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament. 252 ----- **TABLE –A** SCHEDULE I (See sections 4 and 5) MEMORANDUM OF ASSOCIATION OF A COMPANY LIMITED BY SHARES 1st The name of the company is “..................................Limited / Private Limited”. 2nd The registered office of the company will be situated in the State of................................... 3rd (a) The objects to be pursued by the company on its incorporation are:— (b) Matters which are necessary for furtherance of the objects specified in clause 3(a) are:— 4th The liability of the member(s) is limited and this liability is limited to the amount unpaid, if any, on the shares held by them. 5th The share capital of the company is..................................rupees, divided into..................................shares of..................................rupees each. 6th We, the several persons, whose names and addresses are subscribed, are desirous of being formed into a company in pursuance of this memorandum of association, and we respectively agree to take the number of shares in the capital of the company set against our respective names:— Names, addresses, descriptions and occupations of subscribers No. of Shares taken by each subscriber Signature of subscriber Signature, names, addresses, descriptions and occupations of witnesses A.B. of........Merchant .............. Signed before me: Signature...................... C.D. of........Merchant .............. Signed before me: Signature...................... E.F. of........Merchant .............. Signed before me: Signature...................... G.H. of........Merchant .............. Signed before me: Signature...................... I.J. of........Merchant .............. Signed before me: Signature...................... K.L. of........Merchant .............. Signed before me: Signature...................... M.N. of........Merchant .............. Signed before me: Signature...................... Total shares taken: _____________ _____________ 253 ----- 7th I, whose name and address is given below, am desirous of forming a company in pursuance of this memorandum of association and agree to take all the shares in the capital of the company (Applicable in case of one person company):— Name, address, description and occupation of subscriber Signature of subscriber Signature, name, address, description and occupation of witness A.B. ........Merchant Signed before me: Signature...................... 8th Shri/Smt.................., son/daughter of ......................., resident of............ aged............ years shall be the nominee in the event of death of the sole member (Applicable in case of one person company) Dated........................................ the day of .......................... **TABLE –B** MEMORANDUM OF ASSOCIATION OF A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL 1st The name of the company is “..................................Limited/Private Limited”. 2nd The registered office of the company will be situated in the State of.................................. 3rd (a) The objects to be pursued by the company on its incorporation are:— (b) Matters which are necessary for furtherance of the objects specified in clause 3(a) are:— 4th The liability of the member(s) is limited. 5th Every member of the company undertakes to contribute: (i) to the assets of the company in the event of its being wound up while he is a member, or within one year after he ceases to be a member, for payment of the debts and liabilities of the company or of such debts and liabilities as may have been contracted before he ceases to be a member; and (ii) to the costs, charges and expenses of winding up (and for the adjustment of the rights of the contributories among themselves), such amount as may be required, not exceeding..................................rupees. 6th We, the several persons, whose names and addresses are subscribed, are desirous of being formed into a company in pursuance of this memorandum of association. Names, addresses, descriptions and occupations of subscribers Signature of subscriber Signature, names, addresses, descriptions and occupations of witnesses A.B. of........Merchant Signed before me: Signature...................... C.D. of........Merchant Signed before me: Signature...................... E.F. of........Merchant Signed before me: Signature...................... G.H. of........Merchant Signed before me: Signature...................... ----- I.J. of........Merchant Signed before me: Signature...................... K.L. of........Merchant Signed before me: Signature...................... M.N. of........Merchant Signed before me: Signature...................... 7th I, whose name and address is given below, am desirous of forming a company in pursuance of this memorandum of association (Applicable in case of one person company):— Name, address, description and occupation of subscriber Signature of subscriber Signature, name, address, description and occupation of witness A.B. ........Merchant Signed before me: Signature...................... 8th Shri/Smt............., son/daughter of .................., resident of............ aged............ years shall be the nominee in the event of death of the sole member (Applicable in case of one person company) Dated............................ the day of .............................. **TABLE -C** MEMORANDUM OF ASSOCIATION OF A COMPANY LIMITED BY GUARANTEE AND HAVING A SHARE CAPITAL 1st The name of the company is “..................................Limited/Private Limited”. 2nd The registered office of the company will be situated in the State of.................................. 3rd (a) The objects to be pursued by the company on its incorporation are:— (b) Matters which are necessary for furtherance of the objects specified in clause 3(a) are:— 4th The liability of the member(s) is limited. 5th Every member of the company undertakes to contribute: (i) to the assets of the company in the event of its being wound up while he is a member, or within one year after he ceases to be a member, for payment of the debts and liabilities of the company or of such debts and liabilities as may have been contracted before he ceases to be a member; and (ii) to the costs, charges and expenses of winding up (and for the adjustment of the rights of the contributories among themselves), such amount as may be required, not exceeding..................................rupees. 6th The share capital of the company is..................................rupees, divided into..................................shares of..................................rupees each 7th We, the several persons, whose names, addresses are subscribed, are desirous of being formed into a company in pursuance of this memorandum of association and we respectively agree to take the number of shares in the capital of the company set against our respective names:— ----- Names, addresses, descriptions and occupations of subscribers No. of Shares taken by each subscriber Signature of subscriber Signature, names, addresses, descriptions and occupations of witnesses A.B. of........Merchant .............. Signed before me: Signature...................... C.D. of........Merchant .............. Signed before me: Signature...................... E.F. of........Merchant .............. Signed before me: Signature...................... G.H. of........Merchant .............. Signed before me: Signature...................... I.J. of........Merchant .............. Signed before me: Signature...................... K.L. of........Merchant .............. Signed before me: Signature...................... M.N. of........Merchant .............. Signed before me: Signature...................... 8th I, whose name and address is given below, am desirous of forming a company in pursuance of this memorandum of association and agree to take all the shares in the capital of the company (Applicable in case of one person company):— Name, address, description and occupation of subscriber Signature of subscriber Signature, name, address, description and occupation of witness A.B. of ........Merchant Signed before me: Signature...................... 9th Shri/Smt.............., son/daughter of .................., resident of............ aged............ years shall be the nominee in the event of death of the sole member (Applicable in case of one person company) Dated............................ the day of........................... **TABLE -D** MEMORANDUM OF ASSOCIATION OF AN UNLIMITED COMPANY AND NOT HAVING SHARE CAPITAL 1st The name of the company is “..................................Company”. 2nd The registered office of the company will be situated in the State of.................................. 3rd (a) The objects to be pursued by the company on its incorporation are:— (b) Matters which are necessary for furtherance of the objects specified in clause 3(a) are:— 4th The liability of the member(s) is unlimited. 5th We, the several persons, whose names and addresses are subscribed are desirous of being formed into a company in pursuance of this memorandum of association. ----- Names, addresses, descriptions and occupations of subscribers Signature of subscriber Signature, names, addresses, descriptions and occupations of witness A.B. of........Merchant Signed before me: Signature...................... C.D. of........Merchant Signed before me: Signature...................... E.F. of........Merchant Signed before me: Signature...................... G.H. of........Merchant Signed before me: Signature...................... I.J. of........Merchant Signed before me: Signature...................... K.L. of........Merchant Signed before me: Signature...................... M.N. of........Merchant Signed before me: Signature...................... 6th I, whose name and address is given below, am desirous of forming a company in pursuance of this memorandum of association (Applicable in case of one person company):— Name, address, description and occupation of subscriber Signature of subscriber Signature, name, address, description and occupation of witness A.B. ........Merchant Signed before me: Signature...................... 7th Shri/Smt.........., son/daughter of ....................., resident of............ aged............ years shall be the nominee in the event of death of the sole member (Applicable in case of one person company) Dated...................... the day of.................... **TABLE -E** MEMORANDUM OF ASSOCIATION OF AN UNLIMITED COMPANY AND HAVING SHARE CAPITAL 1st The name of the company is “..................................Company”. 2nd The registered office of the company will be situated in the State of................................... 3rd (a) The objects to be pursued by the company on its incorporation are:— (b) Matters which are necessary for furtherance of the objects specified in clause 3(a) are:— ----- 4th The liability of the member(s) is unlimited. 5th The share capital of the company is..................................rupees, divided into..................................shares of..................................rupees each. 6th We, the several persons, whose names, and addresses are subscribed, are desirous of being formed into a company in pursuance of this memorandum of association and we respectively agree to take the number of shares in the capital of the company set against our respective names:— Names, addresses, descriptions and occupations of subscribers No. of Shares taken by each subscriber Signature of subscriber Signature, names, addresses, descriptions and occupations of witnesses A.B. of........Merchant .............. Signed before me: Signature...................... C.D. of........Merchant .............. Signed before me: Signature...................... E.F. of........Merchant .............. Signed before me: Signature...................... G.H. of........Merchant .............. Signed before me: Signature...................... I.J. of.........Merchant .............. Signed before me: Signature...................... K.L. of........Merchant .............. Signed before me: Signature...................... M.N. of........Merchant .............. Signed before me: Signature...................... 7th I, whose name and address is given below, am desirous of forming a company in pursuance of this memorandum of association and agree to take all the shares in the capital of the company (Applicable in case of one person company):— Name, address, description and occupation of subscriber Signature of subscriber Signature, name, address, description and occupation of witness A.B. ........Merchant Signed before me: Signature...................... 8th Shri/Smt..........., son/daughter of ...................., resident of............ aged............ years shall be the nominee in the event of death of the sole member (Applicable in case of one person company) Dated.............................. the day of ............................. ----- **TABLE -F** ARTICLES OF ASSOCIATION OF A COMPANY LIMITED BY SHARES **_Interpretation_** **I. (1) In these regulations—** (a) “the Act” means the Companies Act, 2013, (b) “the seal” means the common seal of the company. (2) Unless the context otherwise requires, words or expressions contained in these regulations shall bear the same meaning as in the Act or any statutory modification thereof in force at the date at which these regulations become binding on the company. **_Share capital and variation of rights_** **II. 1. Subject to the provisions of the Act and these Articles, the shares in the capital of the company shall be** under the control of the Directors who may issue, allot or otherwise dispose of the same or any of them to such persons, in such proportion and on such terms and conditions and either at a premium or at par and at such time as they may from time to time think fit. **2. (i) Every person whose name is entered as a member in the register of members shall be entitled to receive** within two months after incorporation, in case of subscribers to the memorandum or after allotment or within one month after the application for the registration of transfer or transmission or within such other period as the conditions of issue shall be provided,— (a) one certificate for all his shares without payment of any charges; or (b) several certificates, each for one or more of his shares, upon payment of twenty rupees for each certificate after the first. 1[(ii) Every certificate shall specify the shares to which it relates and the amount paid-up thereon and shall be signed by two directors or by a director and the company secretary, wherever the company has appointed a company secretary: Provided that in case the company has a common seal it shall be affixed in the presence of the persons required to sign the certificate. _Explanation.—For the purposes of this item, it is hereby clarified that in case of an One Person Company, it shall_ be sufficient if the certificate is signed by a director and the company secretary, wherever the company has appointed a company secretary, or any other person authorised by the Board for the purpose.] (iii) In respect of any share or shares held jointly by several persons, the company shall not be bound to issue more than one certificate, and delivery of a certificate for a share to one of several joint holders shall be sufficient delivery to all such holders. **3. (i) If any share certificate be worn out, defaced, mutilated or torn or if there be no further space on the back for** endorsement of transfer, then upon production and surrender thereof to the company, a new certificate may be issued in lieu thereof, and if any certificate is lost or destroyed then upon proof thereof to the satisfaction of the company and on execution of such indemnity as the company deem adequate, a new certificate in lieu thereof shall be given. Every certificate under this Article shall be issued on payment of twenty rupees for each certificate. (ii) The provisions of Articles (2) and (3) shall mutatis mutandis apply to debentures of the company. **4. Except as required by law, no person shall be recognised by the company as holding any share upon any trust,** and the company shall not be bound by, or be compelled in any way to recognise (even when having notice thereof) any equitable, contingent, future or partial interest in any share, or any interest in any fractional part of a share, or (except only as by these regulations or by law otherwise provided) any other rights in respect of any share except an absolute right to the entirety thereof in the registered holder. ----- **5. (i) The company may exercise the powers of paying commissions conferred by sub-section (6) of section 40,** provided that the rate per cent. or the amount of the commission paid or agreed to be paid shall be disclosed in the manner required by that section and rules made thereunder. (ii) The rate or amount of the commission shall not exceed the rate or amount prescribed in rules made under sub section (6) of section 40. (iii) The commission may be satisfied by the payment of cash or the allotment of fully or partly paid shares or partly in the one way and partly in the other. **6. (i) If at any time the share capital is divided into different classes of shares, the rights attached to any class** (unless otherwise provided by the terms of issue of the shares of that class) may, subject to the provisions of section 48, and whether or not the company is being wound up, be varied with the consent in writing of the holders of threefourths of the issued shares of that class, or with the sanction of a special resolution passed at a separate meeting of the holders of the shares of that class. (ii) To every such separate meeting, the provisions of these regulations relating to general meetings shall mutatis _mutandis apply, but so that the necessary quorum shall be at least two persons holding at least one-third of the issued_ shares of the class in question. **7. The rights conferred upon the holders of the shares of any class issued with preferred or other rights shall not,** unless otherwise expressly provided by the terms of issue of the shares of that class, be deemed to be varied by the creation or issue of further shares ranking pari passu therewith. **8. Subject to the provisions of section 55, any preference shares may, with the sanction of an ordinary resolution,** be issued on the terms that they are to be redeemed on such terms and in such manner as the company before the issue of the shares may, by special resolution, determine. **_Lien_** **9. (i) The company shall have a first and paramount lien—** (a) on every share (not being a fully paid share), for all monies (whether presently payable or not) called, or payable at a fixed time, in respect of that share; and (b) on all shares (not being fully paid shares) standing registered in the name of a single person, for all monies presently payable by him or his estate to the company: Provided that the Board of directors may at any time declare any share to be wholly or in part exempt from the provisions of this clause. (ii) The company’s lien, if any, on a share shall extend to all dividends payable and bonuses declared from time to time in respect of such shares. **10. The company may sell, in such manner as the Board thinks fit, any shares on which the company has a lien:** Provided that no sale shall be made— (a) unless a sum in respect of which the lien exists is presently payable; or (b) until the expiration of fourteen days after a notice in writing stating and demanding payment of such part of the amount in respect of which the lien exists as is presently payable, has been given to the registered holder for the time being of the share or the person entitled thereto by reason of his death or insolvency. **11. (i) To give effect to any such sale, the Board may authorise some person to transfer the shares sold to the** purchaser thereof. (ii) The purchaser shall be registered as the holder of the shares comprised in any such transfer. (iii) The purchaser shall not be bound to see to the application of the purchase money, nor shall his title to the shares be affected by any irregularity or invalidity in the proceedings in reference to the sale. **12. (i) The proceeds of the sale shall be received by the company and applied in payment of such part of the** t i t f hi h th li i t i tl bl ----- (ii) The residue, if any, shall, subject to a like lien for sums not presently payable as existed upon the shares before the sale, be paid to the person entitled to the shares at the date of the sale. **_Calls on shares_** **13. (i) The Board may, from time to time, make calls upon the members in respect of any monies unpaid on their** shares (whether on account of the nominal value of the shares or by way of premium) and not by the conditions of allotment thereof made payable at fixed times: Provided that no call shall exceed one-fourth of the nominal value of the share or be payable at less than one month from the date fixed for the payment of the last preceding call. (ii) Each member shall, subject to receiving at least fourteen days’ notice specifying the time or times and place of payment, pay to the company, at the time or times and place so specified, the amount called on his shares. (iii) A call may be revoked or postponed at the discretion of the Board. **14. A call shall be deemed to have been made at the time when the resolution of the Board authorising the call** was passed and may be required to be paid by instalments. **15. The joint holders of a share shall be jointly and severally liable to pay all calls in respect thereof.** **16. (i) If a sum called in respect of a share is not paid before or on the day appointed for payment thereof, the** person from whom the sum is due shall pay interest thereon from the day appointed for payment thereof to the time of actual payment at ten per cent. per annum or at such lower rate, if any, as the Board may determine. (ii) The Board shall be at liberty to waive payment of any such interest wholly or in part. **17. (i) Any sum which by the terms of issue of a share becomes payable on allotment or at any fixed date, whether** on account of the nominal value of the share or by way of premium, shall, for the purposes of these regulations, be deemed to be a call duly made and payable on the date on which by the terms of issue such sum becomes payable. (ii) In case of non-payment of such sum, all the relevant provisions of these regulations as to payment of interest and expenses, forfeiture or otherwise shall apply as if such sum had become payable by virtue of a call duly made and notified. **18. The Board—** (a) may, if it thinks fit, receive from any member willing to advance the same, all or any part of the monies uncalled and unpaid upon any shares held by him; and (b) upon all or any of the monies so advanced, may (until the same would, but for such advance, become presently payable) pay interest at such rate not exceeding, unless the company in general meeting shall otherwise direct, twelve per cent. per annum, as may be agreed upon between the Board and the member paying the sum in advance. **_Transfer of shares_** **19.** (i) The instrument of transfer of any share in the company shall be executed by or on behalf of both the transferor and transferee. (ii) The transferor shall be deemed to remain a holder of the share until the name of the transferee is entered in the register of members in respect thereof. **20. The Board may, subject to the right of appeal conferred by section 58 decline to register—** (a) the transfer of a share, not being a fully paid share, to a person of whom they do not approve; or (b) any transfer of shares on which the company has a lien. **21. The Board may decline to recognise any instrument of transfer unless—** (a) the instrument of transfer is in the form as prescribed in rules made under sub-section (1) of section 56; ----- (b) the instrument of transfer is accompanied by the certificate of the shares to which it relates, and such other evidence as the Board may reasonably require to show the right of the transferor to make the transfer; and (c) the instrument of transfer is in respect of only one class of shares. **22. On giving not less than seven days’ previous notice in accordance with section 91and rules made thereunder,** the registration of transfers may be suspended at such times and for such periods as the Board may from time to time determine: Provided that such registration shall not be suspended for more than thirty days at any one time or for more than forty-five days in the aggregate in any year. **_Transmission of shares_** **23. (i) On the death of a member, the survivor or survivors where the member was a joint holder, and his nominee** or nominees or legal representatives where he was a sole holder, shall be the only persons recognised by the company as having any title to his interest in the shares. (ii) Nothing in clause (i) shall release the estate of a deceased joint holder from any liability in respect of any share which had been jointly held by him with other persons. **24. (i) Any person becoming entitled to a share in consequence of the death or insolvency of a member may, upon** such evidence being produced as may from time to time properly be required by the Board and subject as hereinafter provided, elect, either— (a) to be registered himself as holder of the share; or (b) to make such transfer of the share as the deceased or insolvent member could have made. (ii) The Board shall, in either case, have the same right to decline or suspend registration as it would have had, if the deceased or insolvent member had transferred the share before his death or insolvency. **25. (i) If the person so becoming entitled shall elect to be registered as holder of the share himself, he shall deliver** or send to the company a notice in writing signed by him stating that he so elects. (ii) If the person aforesaid shall elect to transfer the share, he shall testify his election by executing a transfer of the share. (iii) All the limitations, restrictions and provisions of these regulations relating to the right to transfer and the registration of transfers of shares shall be applicable to any such notice or transfer as aforesaid as if the death or insolvency of the member had not occurred and the notice or transfer were a transfer signed by that member. **26. A person becoming entitled to a share by reason of the death or insolvency of the holder shall be entitled to** the same dividends and other advantages to which he would been titled if he were the registered holder of the share, except that he shall not, before being registered as a member in respect of the share, be entitled in respect of it to exercise any right conferred by membership in relation to meetings of the company: Provided that the Board may, at any time, give notice requiring any such person to elect either to be registered himself or to transfer the share, and if the notice is not complied with within ninety days, the Board may thereafter withhold payment of all dividends, bonuses or other monies payable in respect of the share, until the requirements of the notice have been complied with. **27. In case of a One Person Company—** (i) on the death of the sole member, the person nominated by such member shall be the person recognised by the company as having title to all the shares of the member; (ii) the nominee on becoming entitled to such shares in case of the member’s death shall be informed of such event by the Board of the company; (iii) such nominee shall be entitled to the same dividends and other rights and liabilities to which such sole member of the company was entitled or liable; ----- (iv) on becoming member, such nominee shall nominate any other person with the prior written consent of such person who, shall in the event of the death of the member, become the member of the company. **_Forfeiture of shares_** **28. If a member fails to pay any call, or instalment of a call, on the day appointed for payment thereof, the Board** may, at any time thereafter during such time as any part of the call or instalment remains unpaid, serve a notice on him requiring payment of so much of the call or instalment as is unpaid, together with any interest which may have accrued. **29. The notice aforesaid shall—** (a) name a further day (not being earlier than the expiry of fourteen days from the date of service of the notice) on or before which the payment required by the notice is to be made; and (b) state that, in the event of non-payment on or before the day so named, the shares in respect of which the call was made shall be liable to be forfeited. **30. If the requirements of any such notice as aforesaid are not complied with, any share in respect of which the** notice has been given may, at any time thereafter, before the payment required by the notice has been made, be forfeited by a resolution of the Board to that effect. **31. (i) A forfeited share may be sold or otherwise disposed of on such terms and in such manner as the Board** thinks fit. (ii) At any time before a sale or disposal as aforesaid, the Board may cancel the forfeiture on such terms as it thinks fit. **32. (i) A person whose shares have been forfeited shall cease to be a member in respect of the forfeited shares,** but shall, notwithstanding the forfeiture, remain liable to pay to the company all monies which, at the date of forfeiture, were presently payable by him to the company in respect of the shares. (ii) The liability of such person shall cease if and when the company shall have received payment in full of all such monies in respect of the shares. **33. (i) A duly verified declaration in writing that the declarant is a director, the manager or the secretary, of the** company, and that a share in the company has been duly forfeited on a date stated in the declaration, shall be conclusive evidence of the facts therein stated as against all persons claiming to be entitled to the share; (ii) The company may receive the consideration, if any, given for the share on any sale or disposal thereof and may execute a transfer of the share in favour of the person to whom the share is sold or disposed of; (iii) The transferee shall thereupon be registered as the holder of the share; and (iv) The transferee shall not be bound to see to the application of the purchase money, if any, nor shall his title to the share be affected by any irregularity or invalidity in the proceedings in reference to the forfeiture, sale or disposal of the share. **34. The provisions of these regulations as to forfeiture shall apply in the case of non-payment of any sum which,** by the terms of issue of a share, becomes payable at a fixed time, whether on account of the nominal value of the share or by way of premium, as if the same had been payable by virtue of a call duly made and notified. ----- **_Alteration of capital_** **35. The company may, from time to time, by ordinary resolution increase the share capital by such sum, to be** divided into shares of such amount, as may be specified in the resolution. **36. Subject to the provisions of section 61, the company may, by ordinary resolution,—** (a) consolidate and divide all or any of its share capital into shares of larger amount than its existing shares; (b) convert all or any of its fully paid-up shares into stock, and reconvert that stock into fully paid-up shares of any denomination; (c) sub-divide its existing shares or any of them into shares of smaller amount than is fixed by the memorandum; (d) cancel any shares which, at the date of the passing of the resolution, have-not been taken or agreed to be taken by any person. **37. Where shares are converted into stock,—** (a) the holders of stock may transfer the same or any part thereof in the same manner as, and subject to the same regulations under which, the shares from which the stock arose might before the conversion have been transferred, or as near thereto as circumstances admit: Provided that the Board may, from time to time, fix the minimum amount of stock transferable, so, however, that such minimum shall not exceed the nominal amount of the shares from which the stock arose. (b) the holders of stock shall, according to the amount of stock held by them, have the same rights, privileges and advantages as regards dividends, voting at meetings of the company, and other matters, as if they held the shares from which the stock arose; but no such privilege or advantage (except participation in the dividends and profits of the company and in the assets on winding up) shall be conferred by an amount of stock which would not, if existing in shares, have conferred that privilege or advantage. (c) such of the regulations of the company as are applicable to paid-up shares shall apply to stock and the words “share” and “shareholder” in those regulations shall include “stock” and “stock-holder” respectively. **38.** The company may, by special resolution, reduce in any manner and with, and subject to, any incident authorised and consent required by law,— (a) its share capital; (b) any capital redemption reserve account; or (c) any share premium account. **_Capitalisation of profits_** **39. (i) The company in general meeting may, upon the recommendation of the Board, resolve—** (a) that it is desirable to capitalise any part of the amount for the time being standing to the credit of any of the company’s reserve accounts, or to the credit of the profit and loss account, or otherwise available for distribution; and (b) that such sum be accordingly set free for distribution in the manner specified in clause (ii) amongst the members who would have been entitled thereto, if distributed by way of dividend and in the same proportions. (ii) The sum aforesaid shall not be paid in cash but shall be applied, subject to the provision contained in clause (iii), either in or towards— (A) paying up any amounts for the time being unpaid on any shares held by such members respectively; (B) paying up in full, unissued shares of the company to be allotted and distributed, credited as fully paid-up, ----- (C) partly in the way specified in sub-clause (A) and partly in that specified in sub-clause (B); (D) A securities premium account and a capital redemption reserve account may, for the purposes of this regulation, be applied in the paying up of unissued shares to be issued to members of the company as fully paid bonus shares; (E) The Board shall give effect to the resolution passed by the company in pursuance of this regulation. **40. (i) Whenever such a resolution as aforesaid shall have been passed, the Board shall—** (a) make all appropriations and applications of the undivided profits resolved to be capitalised thereby, and all allotments and issues of fully paid shares if any; and (b) generally do all acts and things required to give effect thereto. (ii) The Board shall have power— (a) to make such provisions, by the issue of fractional certificates or by payment in cash or otherwise as it thinks fit, for the case of shares becoming distributable infractions; and (b) to authorise any person to enter, on behalf of all the members entitled thereto, into an agreement with the company providing for the allotment to them respectively, credited as fully paid-up, of any further shares to which they may be entitled upon such capitalisation, or as the case may require, for the payment by the company on their behalf, by the application thereto of their respective proportions of profits resolved to be capitalised, of the amount or any part of the amounts remaining unpaid on their existing shares; (iii) any agreement made under such authority shall be effective and binding on such members. **_Buy-back of shares_** **41. Notwithstanding anything contained in these articles but subject to the provisions of sections 68 to 70 and any** other applicable provision of the Act or any other law for the time being in force, the company may purchase its own shares or other specified securities. **_General meetings_** **42. All general meetings other than annual general meeting shall be called extraordinary general meeting.** **43. (i) The Board may, whenever it thinks fit, call an extraordinary general meeting.** (ii) If at any time directors capable of acting who are sufficient in number to form a quorum are not within India, any director or any two members of the company may call an extraordinary general meeting in the same manner, as nearly as possible, as that in which such a meeting may be called by the Board. **_Proceedings at general meetings_** **44. (i) No business shall be transacted at any general meeting unless a quorum of members is present at the time** when the meeting proceeds to business. (ii) Save as otherwise provided herein, the quorum for the general meetings shall be as provided in section 103. **45. The Chairperson, if any, of the Board shall preside as Chairperson at every general meeting of the company.** **46. If there is no such Chairperson, or if he is not present within fifteen minutes after the time appointed for** holding the meeting, or is unwilling to act as Chairperson of the meeting, the directors present shall elect one of their members to be Chairperson of the meeting. **47. If at any meeting no director is willing to act as Chairperson or if no director is present within fifteen minutes** after the time appointed for holding the meeting, the members present shall choose one of their members to be Chairperson of the meeting. **48. In case of a One Person Company—** ----- (i) the resolution required to be passed at the general meetings of the company shall be deemed to have been passed if the resolution is agreed upon by the sole member and communicated to the company and entered in the minutes book maintained under section 118; (ii) such minutes book shall be signed and dated by the member; (iii) the resolution shall become effective from the date of signing such minutes by the sole member. **_Adjournment of meeting_** **49.** (i) The Chairperson may, with the consent of any meeting at which a quorum is present, and shall, if so directed by the meeting, adjourn the meeting from time to time and from place to place. (ii) No business shall be transacted at any adjourned meeting other than the business left unfinished at the meeting from which the adjournment took place. (iii) When a meeting is adjourned for thirty days or more, notice of the adjourned meeting shall be given as in the case of an original meeting. (iv) Save as aforesaid, and as provided in section 103 of the Act, it shall not be necessary to give any notice of an adjournment or of the business to be transacted at an adjourned meeting. **_Voting rights_** **50. Subject to any rights or restrictions for the time being attached to any class or classes of shares,—** (a) on a show of hands, every member present in person shall have one vote; and (b) on a poll, the voting rights of members shall be in proportion to his share in the paid-up equity share capital of the company. **51. A member may exercise his vote at a meeting by electronic means in accordance with section 108 and shall** vote only once. **52. (i) In the case of joint holders, the vote of the senior who tenders a vote, whether in person or by proxy, shall** be accepted to the exclusion of the votes of the other joint holders. (ii) For this purpose, seniority shall be determined by the order in which the names stand in the register of members. **53. A member of unsound mind, or in respect of whom an order has been made by any court having jurisdiction** in lunacy, may vote, whether on a show of hands or on a poll, by his committee or other legal guardian, and any such committee or guardian may, on a poll, vote by proxy. **54. Any business other than that upon which a poll has been demanded may be proceeded with, pending the** taking of the poll. **55. No member shall be entitled to vote at any general meeting unless all calls or other sums presently payable** by him in respect of shares in the company have been paid. **56. (i) No objection shall be raised to the qualification of any voter except at the meeting or adjourned meeting** at which the vote objected to is given or tendered, and every vote not disallowed at such meeting shall be valid for all purposes. (ii) Any such objection made in due time shall be referred to the Chairperson of the meeting, whose decision shall be final and conclusive. ----- **_Proxy_** **57. The instrument appointing a proxy and the power-of-attorney or other authority, if any, under which it is** signed or a notarised copy of that power or authority, shall be deposited at the registered office of the company not less than 48 hours before the time for holding the meeting or adjourned meeting at which the person named in the instrument proposes to vote, or, in the case of a poll, not less than 24 hours before the time appointed for the taking of the poll; and in default the instrument of proxy shall not be treated as valid. **58. An instrument appointing a proxy shall be in the form as prescribed in the rules made under section 105.** **59.** A vote given in accordance with the terms of an instrument of proxy shall be valid, notwithstanding the previous death or insanity of the principal or the revocation of the proxy or of the authority under which the proxy was executed, or the transfer of the shares in respect of which the proxy is given: Provided that no intimation in writing of such death, insanity, revocation or transfer shall have been received by the company at its office before the commencement of the meeting or adjourned meeting at which the proxy is used. **_Board of Directors_** **60.** The number of the directors and the names of the first directors shall be determined in writing by the subscribers of the memorandum or a majority of them. **61. (i) The remuneration of the directors shall, in so far as it consists of a monthly payment, be deemed to accrue** from day-to-day. (ii) In addition to the remuneration payable to them in pursuance of the Act, the directors may be paid all travelling, hotel and other expenses properly incurred by them— (a) in attending and returning from meetings of the Board of Directors or any committee thereof or general meetings of the company; or (b) in connection with the business of the company. **62. The Board may pay all expenses incurred in getting up and registering the company.** **63. The company may exercise the powers conferred on it by section 88 with regard to the keeping of a foreign** register; and the Board may (subject to the provisions of that section) make and vary such regulations as it may thinks fit respecting the keeping of any such register. **64. All cheques, promissory notes, drafts,** _hundis, bills of exchange and other negotiable instruments, and all_ receipts for monies paid to the company, shall be signed, drawn, accepted, endorsed, or otherwise executed, as the case may be, by such person and in such manner as the Board shall from time to time by resolution determine. **65. Every director present at any meeting of the Board or of a committee thereof shall sign his name in a book to** be kept for that purpose. **66. (i) Subject to the provisions of section 149, the Board shall have power at any time, and from time to time, to** appoint a person as an additional director, provided the number of the directors and additional directors together shall not at any time exceed the maximum strength fixed for the Board by the articles. (ii) Such person shall hold office only up to the date of the next annual general meeting of the company but shall be eligible for appointment by the company as a director at that meeting subject to the provisions of the Act. **_Proceedings of the Board_** **67. (i) The Board of Directors may meet for the conduct of business, adjourn and otherwise regulate its meetings,** as it thinks fit. (ii) A director may, and the manager or secretary on the requisition of a director shall, at any time, summon a ----- **68. (i) Save as otherwise expressly provided in the Act, questions arising at any meeting of the Board shall be** decided by a majority of votes. (ii) In case of an equality of votes, the Chairperson of the Board, if any, shall have a second or casting vote. **69. The continuing directors may act notwithstanding any vacancy in the Board; but, if and so long as their number** is reduced below the quorum fixed by the Act for a meeting of the Board, the continuing directors or director may act for the purpose of increasing the number of directors to that fixed for the quorum, or of summoning a general meeting of the company, but for no other purpose. **70. (i) The Board may elect a Chairperson of its meetings and determine the period for which he is to hold office.** (ii) If no such Chairperson is elected, or if at any meeting the Chairperson is not present within five minutes after the time appointed for holding the meeting, the directors present may choose one of their number to be Chairperson of the meeting. **71. (i) The Board may, subject to the provisions of the Act, delegate any of its powers to committees consisting** of such member or members of its body as it thinks fit. (ii) Any committee so formed shall, in the exercise of the powers so delegated, conform to any regulations that may be imposed on it by the Board. **72. (i) A committee may elect a Chairperson of its meetings.** (ii) If no such Chairperson is elected, or if at any meeting the Chairperson is not present within five minutes after the time appointed for holding the meeting, the members present may choose one of their members to be Chairperson of the meeting. **73. (i) A committee may meet and adjourn as it thinks fit.** (ii) Questions arising at any meeting of a committee shall be determined by a majority of votes of the members present, and in case of an equality of votes, the Chairperson shall have a second or casting vote. **74. All acts done in any meeting of the Board or of a committee thereof or by any person acting as a director,** shall, notwithstanding that it may be afterwards discovered that there was some defect in the appointment of any one or more of such directors or of any person acting as aforesaid, or that they or any of them were disqualified, be as valid as if every such director or such person had been duly appointed and was qualified to be a director. **75. Save as otherwise expressly provided in the Act, a resolution in writing, signed by all the members of the** Board or of a committee thereof, for the time being entitled to receive notice of a meeting of the Board or committee, shall be valid and effective as if it had been passed at a meeting of the Board or committee, duly convened and held. **76. In case of a One Person Company—** (i) where the company is having only one director, all the businesses to be transacted at the meeting of the Board shall be entered into minutes book maintained under section 118; (ii) such minutes book shall be signed and dated by the director; (iii) the resolution shall become effective from the date of signing such minutes by the director. **_Chief Executive Officer, Manager, Company Secretary or Chief Financial Officer_** **77. Subject to the provisions of the Act,—** (i) A chief executive officer, manager, company secretary or chief financial officer may be appointed by the Board for such term, at such remuneration and upon such conditions as it may thinks fit; and any chief executive officer, manager, company secretary or chief financial officer so appointed may be removed by means of are solution of the Board; (ii) A director may be appointed as chief executive officer, manager, company secretary or chief financial officer. ----- **78. A provision of the Act or these regulations requiring or authorising a thing to be done by or to a director and** chief executive officer, manager, company secretary or chief financial officer shall not be satisfied by its being done by or to the same person acting both as director and as, or in place of, chief executive officer, manager, company secretary or chief financial officer. **_The Seal_** **79. (i) The Board shall provide for the safe custody of the seal.** (ii) The seal of the company shall not be affixed to any instrument except by the authority of a resolution of the Board or of a committee of the Board authorised by it in that behalf, and except in the presence of at least two directors and of the secretary or such other person as the Board may appoint for the purpose; and those two directors and the secretary or other person aforesaid shall sign every instrument to which the seal of the company is so affixed in their presence. 1[Explanation.—For the purposes of this sub-paragraph it is hereby clarified that on and from the commencement of the Companies (Amendment) Act, 2015 (21 of 2015), i.e. with effect from the 29th May, 2015, company may not be required to have the seal by virtue of registration under the Act and if a company does not have the seal, the provisions of this sub-paragraph shall not be applicable.] **_Dividends and Reserve_** **80.** The company in general meeting may declare dividends, but no dividend shall exceed the amount recommended by the Board. **81. Subject to the provisions of section 123, the Board may from time to time pay to the members such interim** dividends as appear to it to be justified by the profits of the company. **82. (i) The Board may, before recommending any dividend, set aside out of the profits of the company such sums** as it thinks fit as a reserve or reserves which shall, at the discretion of the Board, be applicable for any purpose to which the profits of the company may be properly applied, including provision for meeting contingencies or for equalizing dividends; and pending such application, may, at the like discretion, either be employed in the business of the company or be invested in such investments (other than shares of the company) as the Board may, from time to time, thinks fit. (ii) The Board may also carry forward any profits which it may consider necessary not to divide, without setting them aside as a reserve. **83. (i) Subject to the rights of persons, if any, entitled to shares with special rights as to dividends, all dividends** shall be declared and paid according to the amounts paid or credited as paid on the shares in respect whereof the dividend is paid, but if and so long as nothing is paid upon any of the shares in the company, dividends may be declared and paid according to the amounts of the shares. (ii) No amount paid or credited as paid on a share in advance of calls shall be treated for the purposes of this regulation as paid on the share. (iii) All dividends shall be apportioned and paid proportionately to the amounts paid or credited as paid on the shares during any portion or portions of the period in respect of which the dividend is paid; but if any share is issued on terms providing that it shall rank for dividend as from a particular date such share shall rank for dividend accordingly. **84. The Board may deduct from any dividend payable to any member all sums of money, if any, presently payable** by him to the company on account of calls or otherwise in relation to the shares of the company. **85. (i) Any dividend, interest or other monies payable in cash in respect of shares may be paid by cheque or** warrant sent through the post directed to the registered address of the holder or, in the case of joint holders, to the registered address of that one of the joint holders who is first named on the register of members, or to such person and to such address as the holder or joint holders may in writing direct. (ii) Every such cheque or warrant shall be made payable to the order of the person to whom it is sent. **86. Any one of two or more joint holders of a share may give effective receipts for any dividends, bonuses or** other monies payable in respect of such share. ----- **87. Notice of any dividend that may have been declared shall be given to the persons entitled to share therein in** the manner mentioned in the Act. **88. No dividend shall bear interest against the company.** **_Accounts_** **89. (i) The Board shall from time to time determine whether and to what extent and at what times and places and** under what conditions or regulations, the accounts and books of the company, or any of them, shall be open to the inspection of members not being directors. (ii) No member (not being a director) shall have any right of inspecting any account or book or document of the company except as conferred by law or authorised by the Board or by the company in general meeting. **_Winding up_** **90. Subject to the provisions of Chapter XX of the Act and rules made thereunder—** (i) If the company shall be wound up, the liquidator may, with the sanction of a special resolution of the company and any other sanction required by the Act, divide amongst the members, in specie or kind, the whole or any part of the assets of the company, whether they shall consist of property of the same kind or not. (ii) For the purpose aforesaid, the liquidator may set such value as he deems fair upon any property to be divided as aforesaid and may determine how such division shall be carried out as between the members or different classes of members. (iii) The liquidator may, with the like sanction, vest the whole or any part of such assets in trustees upon such trusts for the benefit of the contributories if he considers necessary, but so that no member shall be compelled to accept any shares or other securities whereon there is any liability. **_Indemnity_** **91.** Every officer of the company shall be indemnified out of the assets of the company against any liability incurred by him in defending any proceedings, whether civil or criminal, in which judgment is given in his favour or in which he is acquitted or in which relief is granted to him by the court or the Tribunal. _Note: The Articles shall be signed by each subscriber of the memorandum of association who shall add his address,_ description and occupation, if any, in the presence of at least one witness who shall attest the signature and shall likewise add his address, description and occupation, if any, and such signatures shall be in form specified below: Names, addresses, descriptions and occupations of subscribers Witnesses (along with names, addresses, descriptions and occupations) A.B. of………….Merchant Signed before me Signature……………. C.D. of………….Merchant Signed before me Signature……………. E.F. of…………. Merchant Signed before me Signature……………. G.H. of………….Merchant Signed before me Signature……………. ----- I.J. of………….Merchant Signed before me Signature……………. K.L. of………….Merchant Signed before me Signature……………. M.N. of………….Merchant Signed before me Signature……………. Dated the……..day of ………20…… Place: ................................ **TABLE – G** ARTICLES OF ASSOCIATION OF A COMPANY LIMITED BY GUARANTEE AND HAVING A SHARE CAPITAL **1. The number of members with which the company proposes to be registered is hundred, but the Board of** Directors may, from time to time, register an increase of members. **2. All the articles of Table F in Schedule I annexed to the Companies Act, 2013 shall be deemed to be incorporated** with these articles and to apply to the company. **TABLE - H** ARTICLES OF ASSOCIATION OF A COMPANY LIMITED BY GUARANTEE AND NOT HAVING SHARE CAPITAL **_Interpretation_** **I. (1) In these regulations—** (a) “the Act” means the Companies Act, 2013; (b) “the seal” means the common seal of the company. (2) Unless the context otherwise requires, words or expressions contained in these regulations shall have the same meaning as in the Act or any statutory modification thereof in force at the date at which these regulations become binding on the company. **_Members_** **II. 1. The number of members with which the company proposes to be registered is hundred, but the Board of** Directors may, from time to time, whenever the company or the business of the company requires it, register an increase of members. **2. The subscribers to the memorandum and such other persons as the Board shall admit to membership shall be** members of the company. **_General meetings_** **3. All general meetings other than annual general meeting shall be called extraordinary general meeting.** **4. (i) The Board may, whenever it thinks fit, call an extraordinary general meeting.** (ii) If at any time directors capable of acting who are sufficient in number to form a quorum are not within India, any director or any two members of the company may call an extraordinary general meeting in the same manner, as nearly as possible, as that in which such a meeting may be called by the Board. ----- **_Proceedings at general meetings_** **5. (i) No business shall be transacted at any general meeting unless a quorum of members is present at the time** when the meeting proceeds to business. (ii) Save as otherwise provided herein, the quorum for the general meetings shall be as provided in section 103. **6. The Chairperson, if any, of the Board shall preside as Chairperson at every general meeting of the company.** **7. If there is no such Chairperson, or if he is not present within fifteen minutes after the time appointed for holding** the meeting, or is unwilling to act as Chairperson of the meeting, the directors present shall elect one of their members to be Chairperson of the meeting. **8. If at any meeting no director is willing to act as Chairperson or if no director is present within fifteen minutes** after the time appointed for holding the meeting, the members present shall choose one of their members to be Chairperson of the meeting. **_Adjournment of meeting_** **9. (i) The Chairperson may, with the consent of any meeting at which a quorum is present, and shall, if so directed** by the meeting, adjourn the meeting from time to time and from place to place. (ii) No business shall be transacted at any adjourned meeting other than the business left unfinished at the meeting from which the adjournment took place. (iii) When a meeting is adjourned for thirty days or more, notice of the adjourned meeting shall be given as in the case of an original meeting. (iv) Save as aforesaid, and as provided in section 103 of the Act, it shall not be necessary to give any notice of an adjournment or of the business to be transacted at an adjourned meeting. **_Voting rights_** **10. Every member shall have one vote.** **11. A member of unsound mind, or in respect of whom an order has been made by any Court having** jurisdiction in lunacy, may vote, whether on a show of hands or on a poll, by his committee or other legal guardian, and any such committee or guardian may, on a poll, vote by proxy. **12. No member shall be entitled to vote at any general meeting unless all sums presently payable by him to the** company have been paid. **13. (i) No objection shall be raised to the qualification of any voter except at the meeting or adjourned meeting** at which the vote objected to is given or tendered, and every vote not disallowed at such meeting shall be valid for all purposes. (ii) Any such objection made in due time shall be referred to the Chairperson of the meeting, whose decision shall be final and conclusive. **14.** A vote given in accordance with the terms of an instrument of proxy shall be valid, notwithstanding the previous death or insanity of the principal or the revocation of the proxy or of the authority under which the proxy was executed, or the transfer of the shares in respect of which the proxy is given: Provided that no intimation in writing of such death, insanity, revocation or transfer shall have been received by the company at its office before the commencement of the meeting or adjourned meeting at which the proxy is used. **15. A member may exercise his vote at a meeting by electronic means in accordance with section 108 and shall** vote only once. **16. Any business other than that upon which a poll has been demanded may be proceeded with, pending the** taking of the poll. ----- **17.** The number of the directors and the names of the first directors shall be determined in writing by the subscribers of the memorandum or a majority of them. **18. (i) The remuneration of the directors shall, in so far as it consists of a monthly payment, be deemed to accrue** from day-to-day. (ii) In addition to the remuneration payable to them in pursuance of the Act, the directors may be paid all travelling, hotel and other expenses properly incurred by them— (a) in attending and returning from meetings of the Board of Directors or any committee thereof or general meetings of the company; or (b) in connection with the business of the company. **_Proceedings of the Board_** **19. (i) The Board of Directors may meet for the conduct of business, adjourn and otherwise regulate its meetings,** as it thinks fit. (ii) A director may, and the manager or secretary on the requisition of a director shall, at any time, summon a meeting of the Board. **20. (i) Save as otherwise expressly provided in the Act, questions arising at any meeting of the Board shall be** decided by a majority of votes. (ii) In case of an equality of votes, the Chairperson of the Board, if any, shall have a second or casting vote. **21. The continuing directors may act notwithstanding any vacancy in the Board; but, if and so long as their number** is reduced below the quorum fixed by the Act for a meeting of the Board, the continuing directors or director may act for the purpose of increasing the number of directors to that fixed for the quorum, or of summoning a general meeting of the company, but for no other purpose. **22. (i) The Board may elect a Chairperson of its meetings and determine the period for which he is to hold office.** (ii) If no such Chairperson is elected, or if at any meeting the Chairperson is not present within five minutes after the time appointed for holding the meeting, the directors present may choose one of their members to be Chairperson of the meeting. **23. (i) The Board may, subject to the provisions of the Act, delegate any of its powers to committees consisting** of such member or members of its body as it thinks fit. (ii) Any committee so formed shall, in the exercise of the powers so delegated, conform to any regulations that may be imposed on it by the Board. **24. (i) A committee may elect a Chairperson of its meetings.** (ii) If no such Chairperson is elected, or if at any meeting the Chairperson is not present within five minutes after the time appointed for holding the meeting, the members present may choose one of their members to be Chairperson of the meeting. **25. (i) A committee may meet and adjourn as it thinks proper.** (ii) Questions arising at any meeting of a committee shall be determined by a majority of votes of the members present, and in case of an equality of votes, the Chairman shall have a second or casting vote. **26. All acts done by any meeting of the Board or of a committee thereof or by any person acting as a director,** shall, notwithstanding that it may be afterwards discovered that there was some defect in the appointment of any one or more of such directors or of any person acting as aforesaid, or that they or any of them were disqualified, be as valid as if every such director or such person had been duly appointed and was qualified to be a director. **27. Save as otherwise expressly provided in the Act, a resolution in writing, signed by all the members of the** Board or of a committee thereof, for the time being entitled to receive notice of a meeting of the Board or committee, ----- **_Chief Executive Officer, Manager, Company Secretary or_** **_Chief Financial Officer_** **28. Subject to the provisions of the Act,—** (i) A chief executive officer, manager, company secretary or chief financial officer may be appointed by the Board for such term, at such remuneration and upon such conditions as it thinks fit; and any chief executive officer, manager, company secretary or chief financial officer so appointed may be removed by means of a resolution of the Board. (ii) A director may be appointed as chief executive officer, manager, company secretary or chief financial officer. **29. A provision of the Act or these regulations requiring or authorising a thing to be done by or to a director and** chief executive officer, manager, company secretary or chief financial officer shall not be satisfied by its being done by or to the same person acting both as director and as, or in place of, chief executive officer, manager, company secretary or chief financial officer. **_The Seal_** **30. (i) The Board shall provide for the safe custody of the seal.** (ii) The seal of the company shall not be affixed to any instrument except by the authority of a resolution of the Board or of a committee of the Board authorised by it in that behalf, and except in the presence of at least two directors and of the secretary or such other person as the Board may appoint for the purpose; and those two directors and the secretary or other person aforesaid shall sign every instrument to which the seal of the company is so affixed in their presence. 1[Explanation.—For the purposes of this sub-paragraph it is hereby clarified that on and from the commencement of the Companies (Amendment) Act, 2015 (21 of 2015), i.e. with effect from the 29th May, 2015, company may not be required to have the seal by virtue of registration under the Act and if a company does not have the seal, the provisions of this sub-paragraph shall not be applicable.] _Note: The Articles shall be signed by each subscriber of the memorandum of association who shall add his address,_ description and occupation, if any, in the presence of at least one witness who shall attest the signature and shall likewise add his address, description and occupation, if any, and such signatures shall be in form specified below: Names, addresses, descriptions and occupations of subscribers Witnesses (along with names, addresses, descriptions and occupations) A.B. of………….Merchant Signed before me Signature……………. C.D. of………….Merchant Signed before me Signature……………. E.F. of…………. Merchant Signed before me Signature……………. G.H. of………….Merchant Signed before me Signature……………. I.J. of………….Merchant Signed before me Signature……………. K.L. of………….Merchant Signed before me Signature……………. M.N. of………….Merchant Signed before me ----- Dated the……..day of ………20…… Place: ................................ Signature……………. **TABLE – I** ARTICLES OF ASSOCIATION OF AN UNLIMITED COMPANY AND HAVING A SHARE CAPITAL **1. The number of members with which the company proposes to be registered is hundred, but the Board of** Directors may, from time to time, register an increase of members. **2. All the articles of Table F in Schedule I annexed to the Companies Act, 2013 shall be deemed to be incorporated** with these articles and to apply to the company. **TABLE - J** ARTICLES OF ASSOCIATION OF AN UNLIMITED COMPANY AND NOT HAVING SHARE CAPITAL **1.** The number of members with which the company proposes to be registered is hundred, but the Board of Directors may, from time to time, whenever the company or the business of the company requires it, register an increase of members. **2. The subscribers to the memorandum and such other persons as the Board shall admit to membership shall be** members of the company. **3. All the articles of Table H in Schedule I annexed to the Companies Act, 2013 shall be deemed to be incorporated** with these articles and to apply to the company. ----- SCHEDULE II (See section 123) **USEFUL LIVES TO COMPUTE DEPRECIATION** **PART ‘A’** 1. Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life. The depreciable amount of an asset is the cost of an asset or other amount substituted for cost, less its residual value. The useful life of an asset is the period over which an asset is expected to be available for use by an entity, or the number of production or similar units expected to be obtained from the asset by the entity. 2. For the purpose of this Schedule, the term depreciation includes amortisation. 3. Without prejudice to the foregoing provisions of paragraph 1,— 1[(i) The useful life of an asset shall not ordinarily be different from the useful life specified in Part C and the residual value of an asset shall not be more than five per cent. of the original cost of the asset: Provided that where a company adopts a useful life different from what is specified in Part C or uses a residual value different from the limit specified above, the financial statements shall disclose such difference and provide justification in this behalf duly supported by technical advice.] 2[(ii) 3[For intangible assets, the relevant Indian Accounting Standards (Ind As) shall apply. Where a company is not required to comply with the Indian Accounting Standards (Ind As), it shall comply with relevant Accounting Standards under Companies (Accounting Standards) Rules, 2006] except in case of intangible assets (Toll Roads) created under 'Build, Operate and Transfer', 'Build, Own, Operate and Transfer' or any other form of public private partnership route in case of road projects. Amortisation in such cases may be done as follows:— (a) Mode of amortization Amortisation Rate = Amortisation Amount= Cost of Intangible Assets (A) x Amorisation Amount Cost of Intangible Assets (A) Actual Revenue for the year (B) Projected Revenue from Intangible Asset (till the end of the concession period) (C) x 100 (b) Meaning of particulars are as follows :— Cost of Intangible Assets (A) = Cost incurred by the company in accordance with the accounting standards. Actual Revenue for the year (13) = Actual revenue (Toll Charges) received during the accounting year. Projected Revenue from Intangible Total projected revenue from the Intangible Assets Asset (C) as provided to the project lender at the time of financial closure/agreement. The amortisation amount or rate should ensure that the whole of the cost of the intangible asset is amortised over the concession period. 1 S b b N tifi ti N G S R 627(E) d t d 29th A t 2014 f b h (i) f h 3 ( f 29 8 2014) ----- Revenue shall be reviewed at the end of each financial year and projected revenue shall be adjusted to reflect such changes, if any, in the estimates as will lead to the actual collection at the end of the concession period. (c) Example:— Cost of creation of Intangible Assets : Rs. 500 Crores Total period of Agreement : 20 Years Time used for creation of Intangible Assets : 2 Years Intangible Assets to be amortised in : 18 Years Assuming that the Total revenue to be generated out of Intangible Assets over the period would be Rs. 600 Crores, in the following manner:— Year No. Revenue( In Rs. Crores) Remarks Year 1 5 Actual Year 2 7.5 Estimate * Year 3 10 Estimate * Year 4 12.5 Estimate * Year 5 17.5 Estimate * Year 6 20 Estimate * Year 7 23 Estimate * Year 8 27 Estimate * Year 9 31 Estimate * Year 10 34 Estimate * Year 11 38 Estimate * Year 12 41 Estimate * Year 13 46 Estimate * Year 14 50 Estimate * Year 15 53 Estimate * Year 16 57 Estimate * Year 17 60 Estimate* Year 18 67.5 Estimate * Total 600 ‘*’ will be actual at the end of financial year. Based on this the charge for first year would be Rs. 4.16 Crore (approximately) (i.e. Rs. 5/Rs. 600 x Rs. 500 Crores) which would be charged to profit and loss and 0.83% (i.e. Rs. 4.16 Crore/ Rs. 500 Crore x 100) is the amortisation rate for the first year. Where a company arrives at the amortisation amount in respect of the said Intangible Assets in accordance with any method as per the applicable Accounting Standards, it shall disclose the same.] **PART ‘B’** 4. The useful life or residual value of any specific asset, as notified for accounting purposes by a Regulatory Authority constituted under an Act of Parliament or by the Central Government shall be applied in calculating the depreciation to be provided for such asset irrespective of the requirements of this Schedule. |Year No.|Revenue( In Rs. Crores)|Remarks| |---|---|---| |Year 1|5|Actual| |Year 2|7.5|Estimate *| |Year 3|10|Estimate *| |Year 4|12.5|Estimate *| |Year 5|17.5|Estimate *| |Year 6|20|Estimate *| |Year 7|23|Estimate *| |Year 8|27|Estimate *| |Year 9|31|Estimate *| |Year 10|34|Estimate *| |Year 11|38|Estimate *| |Year 12|41|Estimate *| |Year 13|46|Estimate *| |Year 14|50|Estimate *| |Year 15|53|Estimate *| |Year 16|57|Estimate *| |Year 17|60|Estimate*| |Year 18|67.5|Estimate *| |Total|600|| ----- **PART ‘C’** 5. Subject to Parts A and B above, the following are the useful lives of various tangible assets: **Nature of assets** **Useful Life** **I.** **Buildings [NESD]** _(a)_ Buildings (other than factory buildings) RCC Frame Structure 60 Years _(b)_ Buildings (other than factory buildings) other than RCC Frame Structure 30 Years _(c)_ Factory buildings -do _(d)_ Fences, wells, tube wells 5 Years _(e)_ Others (including temporary structure, etc.) 3 Years **II.** **Bridges, culverts, bunders, etc. [NESD]** 30 Years **III.** **Roads [NESD]** _(a)_ Carpeted roads _(i)_ Carpeted Roads-RCC 10 Years _(ii)_ Carpeted Roads-other than RCC 5 Years _(b)_ Non-carpeted roads 3 Years **IV.** **Plant and Machinery** _(i)_ **General rate applicable to plant and machinery not covered** **under special plant and machinery** _(a)_ Plant and Machinery other than continuous process plant not covered under specific industries 1[(b) continuous process plant for which no special rate has been prescribed under (ii) below [NESD] _(ii)_ **Special Plant and Machinery** _(a)_ Plant and Machinery related to production and exhibition of Motion Picture Films 1. Cinematograph films—Machinery used in the production and exhibition of cinematograph films, recording and reproducing equipments, developing machines, printing machines, editing machines, synchronizers and studio lights except bulbs 15 Years 25 Years] 13 Years 2. Projecting equipment for exhibition of films -do _(b)_ Plant and Machinery used in glass manufacturing 1. Plant and Machinery except direct fire glass melting furnaces —Recuperative and regenerative glass melting furnaces 2. Plant and Machinery except direct fire glass melting furnaces —Moulds[NESD] 13 Years 8 Years 3. Float Glass Melting Furnaces [NESD] 10 Years _(c)_ Plant and Machinery used in mines and quarries—Portable underground machinery and earth moving machinery used in open cast mining [NESD] _(d)_ Plant and Machinery used in Telecommunications [NESD] 8 Years ----- 1. Towers 18 Years 2. Telecom transceivers, switching centres, transmission and other network equipment 13 Years 3. Telecom—Ducts, Cables and optical fibre 18 Years 4. Satellites -do _(e)_ Plant and Machinery used in exploration, production and refining oil and gas [NESD] 1. Refineries 25 Years 2. Oil and gas assets (including wells), processing plant and facilities -do 3. Petrochemical Plant -do 4. Storage tanks and related equipment -do 5. Pipelines 30 Years 6. Drilling Rig -do 7. Field operations (above ground) Portable boilers, drilling tools, well-head tanks, etc. 8 Years 8. Loggers -do _(f)_ Plant and Machinery used in generation, transmission and distribution of power [NESD] 1. Thermal/ Gas/ Combined Cycle Power Generation Plant 40 Years 2. Hydro Power Generation Plant -do 3. Nuclear Power Generation Plant -do 4. Transmission lines, cables and other network assets -do 5. Wind Power Generation Plant 22 Years 6. Electric Distribution Plant 35 Years 7. Gas Storage and Distribution Plant 30 Years 8. Water Distribution Plant including pipelines -do _(g)_ Plant and Machinery used in manufacture of steel 1. Sinter Plant 20 Years 2. Blast Furnace -do 3. Coke ovens -do 4. Rolling mill in steel plant -do 5. Basic oxygen Furnace Converter 25 Years _(h)_ Plant and Machinery used in manufacture of non-ferrous metals 1. Metal pot line [NESD] 40 Years 2. Bauxite crushing and grinding section [NESD] -do 3. Digester Section [NESD] -do ----- 5. Equipments for Calcination [NESD] -do 6. Copper Smelter [NESD] -do 7. Roll Grinder 40 Years 8. Soaking Pit 30 Years 9. Annealing Furnace -do 10. Rolling Mills -do 11. Equipments for Scalping, Slitting, etc. [NESD] -do 12. Surface Miner, Ripper Dozer, etc., used in mines 25 Years 13. Copper refining plant [NESD] -do _(i)_ Plant and Machinery used in medical and surgical operations [NESD] 1. Electrical Machinery, X-ray and electrotherapeutic apparatus and accessories thereto, medical, diagnostic equipments, namely, Cat-scan, Ultrasound Machines, ECG Monitors, etc. 13 Years 2. Other Equipments. 15 Years _(j)_ Plant and Machinery used in manufacture of pharmaceuticals and chemicals [NESD] 1. Reactors 20 Years 2. Distillation Columns -do 3. Drying equipments/Centrifuges and Decanters -do 4. Vessel/storage tanks -do _(k)_ Plant and Machinery used in civil construction 1. Concreting, Crushing, Piling Equipments and Road Making Equipments 2. Heavy Lift Equipments— 12 Years Cranes with capacity of more than 100 tons 20 Years Cranes with capacity of less than 100 tons 15 Years 3. Transmission line, Tunneling Equipments [NESD] 10 Years 4. Earth-moving equipments 9 Years 5. Others including Material Handling/Pipeline/Welding Equipments [NESD] 12 Years _(l)_ Plant and Machinery used in salt works [NESD] 15 Years **V.** **Furniture and fittings [NESD]** _(i)_ General furniture and fittings 10 Years _(ii)_ Furniture and fittings used in hotels, restaurants and boarding houses, schools, colleges and other educational institutions, libraries; welfare centres; meeting halls, cinema houses; theatres and circuses; and furniture and fittings let out on hire for use on the occasion of marriages and similar functions. **VI.** **Motor Vehicles [NESD]** 8 Years 1 M t l t d th d 10 Years ----- 2. Motor buses, motor lorries, motor cars and motor taxies used in a business of running them on hire 3. Motor buses, motor lorries and motor cars other than those used in a business of running them on hire 6 Years 8 Years 4. Motor tractors, harvesting combines and heavy vehicles -do 5. Electrically operated vehicles including battery powered or fuel cell powered vehicles **VII.** **Ships [NESD]** 1. Ocean-going ships 8 Years _(i)_ Bulk Carriers and liner vessels 25 Years _(ii)_ Crude tankers, product carriers and easy chemical carriers with or without conventional tank coatings. _(iii)_ Chemicals and Acid Carriers: 20 Years _(a)_ With Stainless steel tanks 25 Years _(b)_ With other tanks 20 Years _(iv)_ Liquified gas carriers 30 Years _(v)_ Conventional large passenger vessels which are used for cruise purpose also -do _(vi)_ Coastal service ships of all categories -do _(vii)_ Offshore supply and support vessels 20 Years _(viii)Catamarans and other high speed passenger for ships or boats_ -do _(ix)_ Drill ships 25 Years _(x)_ Hovercrafts 15 Years _(xi)_ Fishing vessels with wooden hull 10 Years _(xii)_ Dredgers, tugs, barges, survey launches and other similar ships used mainly for dredging purposes 2. Vessels ordinarily operating on inland waters— 14 Years _(i)_ Speed boats 13 Years _(ii)_ Other vessels 28 Years **VIII.** **Aircrafts or Helicopters [NESD]** 20 Years **IX.** **Railways sidings, locomotives, rolling stocks, tramways and** **railways used by concerns, excluding railway concerns** **[NESD]** 15 Years **X.** **Ropeway structures [NESD]** 15 Years **XI.** **Office equipment [NESD]** 5 Years **XII.** **Computers and data processing units [NESD]** _(i)_ Servers and networks 6 Years _(ii)_ End user devices, such as, desktops, laptops, etc. 3 Years **XIII.** **Laboratory equipment [NESD]** ----- _(ii)_ Laboratory equipments used in educational institutions 5 Years **XIV.** **Electrical Installations and Equipment [NESD]** 10 years **XV.** **Hydraulic works, pipelines and sluices [NESD]** 15 Years **Notes.—** 1. “Factory buildings” does not include offices, godowns, staff quarters. 2. Where, during any financial year, any addition has been made to any asset, or where any asset has been sold, discarded, demolished or destroyed, the depreciation on such assets shall be calculated on a pro rata basis from the date of such addition or, as the case may be, up to the date on which such asset has been sold, discarded, demolished or destroyed. 3. The following information shall also be disclosed in the accounts, namely:— (i) depreciation methods used; and (ii) the useful lives of the assets for computing depreciation, if they are different from the life specified in the Schedule. 1[4(a) Useful life specified in Part C of the Schedule is for whole of the asset and where cost of a part of the asset is significant to total cost of the asset and useful life of that part is different from the useful life of the remaining asset, useful life of that significant part shall be determined separately. (b) The requirement under sub-paragraph (a) shall be voluntary in respect of the financial year commencing on or after the 1st April, 2014 and mandatory for financial statements in respect of financial years commencing on or after the 1st April, 2015.] 2* - - - 6. The useful lives of assets working on shift basis have been specified in the Schedule based on their single shift working. Except for assets in respect of which no extra shift depreciation is permitted (indicated by NESD in Part C above), if an asset is used for any time during the year for double shift, the depreciation will increase by 50% for that period and incase of the triple shift the depreciation shall be calculated on the basis of 100% for that period. 7. From the date this Schedule comes into effect, the carrying amount of the asset as on that date— (a) shall be depreciated over the remaining useful life of the asset as per this Schedule; (b) after retaining the residual value, [3][may be recognised] in the opening balance of retained earnings where the remaining useful life of an asset is nil. 8. “Continuous process plant” means a plant which is required and designed to operate for twenty-four hours a day. 1 S b b N tifi ti N G S R 627(E) d t d 29th A t 2014 f h 4 ( f 29 8 2014) ----- SCHEDULE III (See section 129) 1[Division I **FINANCIAL STATEMENTS FOR A COMPANY WHOSE FINANCIAL STATEMENTS ARE** **REQUIRED TO COMPLY WITH THE COMPANIES (ACCOUNTING STANDARDS) RULES, 2006** General Instructions for Preparation of Balance Sheet and Statement of Profit and Loss of a Company.] **GENERAL INSTRUCTIONS** 1. Where compliance with the requirements of the Act including Accounting Standards as applicable to the companies require any change in treatment or disclosure including addition, amendment, substitution or deletion in the head or sub-head or any changes, inter se, in the financial statements or statements forming part thereof, the same shall be made and the requirements of this Schedule shall stand modified accordingly. 2. The disclosure requirements specified in this Schedule are in addition to and not in substitution of the disclosure requirements specified in the Accounting Standards prescribed under the Companies Act, 2013. Additional disclosures specified in the Accounting Standards shall be made in the notes to accounts or by way of additional statement unless required to be disclosed on the face of the Financial Statements. Similarly, all other disclosures as required by the Companies Act shall be made in the notes to accounts in addition to the requirements set out in this Schedule. 3. (i) Notes to accounts shall contain information in addition to that presented in the Financial Statements and shall provide where required (a) narrative descriptions or disaggregations of items recognised in those statements; and (b) information about items that do not qualify for recognition in those statements. (ii) Each item on the face of the Balance Sheet and Statement of Profit and Loss shall be cross-referenced to any related information in the notes to accounts. In preparing the Financial Statements including the notes to accounts, a balance shall be maintained between providing excessive detail that may not assist users of financial statements and not providing important information as a result of too much aggregation. 4. (i) Depending upon the [2][Total Income] of the company, the figures appearing in the Financial Statements 3[Shall] be rounded off as given below:— **2[Total Income]** **Rounding off** _(a)_ less than one hundred crore rupees To the nearest hundreds, thousands, lakhs or millions, or decimals thereof. _(b)_ one hundred crore rupees or more To the nearest lakhs, millions or crores, or decimals thereof. (ii) Once a unit of measurement is used, it [4][should] be used uniformly in the Financial Statements. 5. Except in the case of the first Financial Statements laid before the Company (after its incorporation) the corresponding amounts (comparatives) for the immediately preceding reporting period for all items shown in the Financial Statements including notes shall also be given. 6. For the purpose of this Schedule, the terms used herein shall be as per the applicable Accounting Standards. Note:— This part of Schedule sets out the minimum requirements for disclosure on the face of the Balance Sheet, and the Statement of Profit and Loss (hereinafter referred to as “Financial Statements” for the purpose of this Schedule) and Notes. Line items, sub-line items and sub-totals shall be presented as an addition or substitution 1. Subs. by G.S.R. 404(E), dated 6th April, 2016, for “GENERAL INSTURCTIONS FOR PREPARATION OF BALANCE SHEET AND STATEMENT OF PROFIT AND LOSS OF A COMPANY”. 2 Subs by G S R 207(E) dated 24th March 2021 for “Turnover” (w e f 1-4-2021) ----- on the face of the Financial Statements when such presentation is relevant to an understanding of the company’s financial position or performance or to cater to industry/sector-specific disclosure requirements or when required for compliance with the amendments to the Companies Act or under the Accounting Standards. **PART I — BALANCE SHEET** _Name of the Company……………………._ _Balance Sheet as at ………………………_ (Rupees in…………) Particulars Note No. Figures as at the end of current reporting period Figures as at the end of the previous reporting period 1 2 3 4 **I.** **EQUITY AND LIABILITIES** (1) **Shareholders’ funds** _(a)_ Share capital _(b)_ Reserves and surplus _(c)_ Money received against share warrants (2) **Share application money pending** **allotment** (3) **Non-current liabilities** _(a)_ Long-term borrowings _(b)_ Deferred tax liabilities (Net) _(c)_ Other Long-term liabilities _(d)_ Long-term provisions (4) **Current liabilities** _(a)_ Short-term borrowings 1[(b) Trade payables (A) total outstanding dues of micro enterprises and small enterprises; and (B) total outstanding dues of creditors other than micro enterprises and small enterprises.] (c) Other current liabilities (d) Short-term provisions **TOTAL** ----- 1 2 3 4 **II.** **ASSETS** **Non-current assets** (1) (a) [1][Property, Plant and Equipment 2[and Intangible assets]] _(i)_ [3][Property, Plant and Equipment] _(ii)_ Intangible assets _(iii)_ Capital work-in-progress _(iv)_ Intangible assets under development _(b)_ Non-current investments _(c)_ Deferred tax assets (net) _(d)_ Long-term loans and advances _(e)_ Other non-current assets (2) **Current assets** _(a)_ Current investments _(b)_ Inventories _(c)_ Trade receivables _(d)_ Cash and cash equivalents _(e)_ Short-term loans and advances _(f)_ Other current assets **TOTAL** **_See accompanying notes to the Financial Statements._** **_Notes_** **GENERAL INSTRUCTIONS FOR PREPARATION OF BALANCE SHEET** 1. An asset shall be classified as current when it satisfies any of the following criteria:— (a) it is expected to be realised in, or is intended for sale or consumption in, the company’s normal operating cycle; (b) it is held primarily for the purpose of being traded; (c) it is expected to be realised within twelve months after the reporting date; or (d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date. All other assets shall be classified as non-current. 2. An operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. Where the normal operating cycle cannot be identified, it is assumed to have a duration of twelve months. 3. A liability shall be classified as current when it satisfies any of the following criteria:— (a) it is expected to be settled in the company’s normal operating cycle; 1 Subs by Notification No G S R 1022(E) dated 11th October 2018 for “Fixed assets” (w e f 11-10-2018) ----- (b) it is held primarily for the purpose of being traded; (c) it is due to be settled within twelve months after the reporting date; or (d) the company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. All other liabilities shall be classified as non-current. 4. A receivable shall be classified as a “trade receivable” if it is in respect of the amount due on account of goods sold or services rendered in the normal course of business. 5. A payable shall be classified as a “trade payable” if it is in respect of the amount due on account of goods purchased or services received in the normal course of business. 6. A company shall disclose the following in the notes to accounts. **A. Share Capital** For each class of share capital (different classes of preference shares to be treated separately): (a) the number and amount of shares authorised; (b) the number of shares issued, subscribed and fully paid, and subscribed but not fully paid; (c) par value per share; (d) a reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period; (e) the rights, preferences and restrictions attaching to each class of shares including restrictions on the distribution of dividends and the repayment of capital; (f) shares in respect of each class in the company held by its holding company or its ultimate holding company including shares held by or by subsidiaries or associates of the holding company or the ultimate holding company in aggregate; (g) shares in the company held by each shareholder holding more than 5 per cent. shares specifying the number of shares held; (h) shares reserved for issue under options and contracts/commitments for the sale of shares/disinvestment, including the terms and amounts; (i) for the period of five years immediately preceding the date as at which the Balance Sheet is prepared: (A) Aggregate number and class of shares allotted as fully paid-up pursuant to contract (s) without payment being received in cash. (B) Aggregate number and class of shares allotted as fully paid-up by way of bonus shares. (C) Aggregate number and class of shares bought back. (j) terms of any securities convertible into equity/preference shares issued along with the earliest date of conversion in descending order starting from the farthest such date; (k) calls unpaid (showing aggregate value of calls unpaid by directors and officers); (l) forfeited shares (amount originally paid-up). 1[(m) A company shall disclose Shareholding of Promoters* as below: Shares held by promoters at the end of the year % Change during the year*** S.No Promoter No. of % of total name Shares** shares ** Total *Promoter here means promoter as defined in the Companies Act, 2013. ** Details shall be given separately for each class of shares |Shares held by promoters at the end of the year|Col2|Col3|Col4|% Change during the year***| |---|---|---|---|---| |S.No|Promoter name|No. of Shares**|% of total shares **|| |Total||||| ----- *** percentage change shall be computed with respect to the number at the beginning of the year or if issued during the year for the first time then with respect to the date of issue.] **B. Reserves and Surplus** (i) Reserves and Surplus shall be classified as: (a) Capital Reserves; (b) Capital Redemption Reserve; (c) Securities Premium [1]***; (d) Debenture Redemption Reserve; (e) Revaluation Reserve; (f) Share Options Outstanding Account; (g) Other Reserves–(specify the nature and purpose of each reserve and the amount in respect thereof); (h) Surplus i.e., balance in Statement of Profit and Loss disclosing allocations and appropriations such as dividend, bonus shares and transfer to/ from reserves, etc.; (Additions and deductions since last balance sheet to be shown under each of the specified heads); (ii) A reserve specifically represented by earmarked investments shall be termed as a “fund”. (iii) Debit balance of statement of profit and loss shall be shown as a negative figure under the head “Surplus”. Similarly, the balance of “Reserves and Surplus”, after adjusting negative balance of surplus, if any, shall be shown under the head “Reserves and Surplus” even if the resulting figure is in the negative. **C. Long-Term Borrowings** (i) Long-term borrowings shall be classified as: (a) Bonds/debentures; (b) Term loans: (A) from banks. (B) from other parties. (c) Deferred payment liabilities; (d) Deposits; (e) Loans and advances from related parties; (f) Long term maturities of finance lease obligations; (g) Other loans and advances (specify nature). (ii) Borrowings shall further be sub-classified as secured and unsecured. Nature of security shall be specified separately in each case. (iii) Where loans have been guaranteed by directors or others, the aggregate amount of such loans under each head shall be disclosed. (iv) Bonds/debentures (along with the rate of interest and particulars of redemption or conversion, as the case may be) shall be stated in descending order of maturity or conversion, starting from farthest redemption or conversion date, as the case may be. Where bonds/debentures are redeemable by instalments, the date of maturity for this purpose must be reckoned as the date on which the first instalment becomes due. ----- (v) Particulars of any redeemed bonds/debentures which the company has power to reissue shall be disclosed. (vi) Terms of repayment of term loans and other loans shall be stated. (vii) Period and amount of continuing default as on the balance sheet date in repayment of loans and interest, shall be specified separately in each case. **D. Other Long-term Liabilities** Other Long-term Liabilities shall be classified as: (a) Trade payables; (b) Others. **E. Long-term provisions** The amounts shall be classified as: (a) Provision for employee benefits; (b) Others (specify nature). **F. Short-term borrowings** (i) Short-term borrowings shall be classified as: (a) Loans repayable on demand; (A) from banks. (B) from other parties. (b) Loans and advances from related parties; (c) Deposits; (d) Other loans and advances (specify nature). (ii) Borrowings shall further be sub-classified as secured and unsecured. Nature of security shall be specified separately in each case. (iii) Where loans have been guaranteed by directors or others, the aggregate amount of such loans under each head shall be disclosed. (iv) Period and amount of default as on the balance sheet date in repayment of loans and interest, shall be specified separately in each case. 1[(v) current maturities of Long term borrowings shall be disclosed separately.] 2[FA. Trade Payable:— The following details relating to Micro, Small and Medium Enterprises shall be disclosed in the notes: (a) the principal amount and the interest due thereon (to be shown separately) remaining unpaid to any supplier at the end of each accounting year; (b) the amount of interest paid by the buyer in terms of section 16 of the Micro, Small and Medium Enterprises Development Act, 2006 (7 of 2006), along with the amount of the payment made to the supplier beyond the appointed day during each accounting year; (c) the amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under the Micro, Small and Medium Enterprises Development Act, 2006; (d) the amount of interest accrued and remaining unpaid at the end of each accounting year; and (e) the amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues above are actually paid to the small enterprise, for the purpose of disallowance of a deductible expenditure under section 23 of the Micro, Small and Medium Enterprises Development Act, 2006; ----- _Explanation.-The terms 'appointed day’, ‘buyer’, ‘enterprise’, ‘micro enterprise’, ‘small enterprise’ and_ ‘supplier’, shall have the same meaning assigned to those under clauses (b), (d), (e), (h), (m) and (n) respectively of section 2 of the Micro, Small and Medium Enterprises Development Act, 2006.] **1[FB. Trade payables due for payment** The following ageing schedule shall be given for Trade payable due for payment: Trade Payables ageing schedule Particulars Outstanding for following periods from due date of payment# Less than 1-2 2-3 years More than 3 Total 1 year years years (i) MSME (ii) Others (iii) Disputed dues MSME (iv) Disputed duesothers #similar information shall be given where no due date of payment is specified in that case disclosure shall be from the date of the transaction. Unbilled dues shall be disclosed separately;] **G. Other current liabilities** The amounts shall be classified as: 2*** (b) Current maturities of finance lease obligations; (c) Interest accrued but not due on borrowings; (d) Interest accrued and due on borrowings; (e) Income received in advance; (f) Unpaid dividends; (g) Application money received for allotment of securities and due for refund and interest accrued thereon. Share application money includes advances towards allotment of share capital. The terms and conditions including the number of shares proposed to be issued, the amount of premium, if any, and the period before which shares shall be allotted shall be disclosed. It shall also be disclosed whether the company has sufficient authorised capital to cover the share capital amount resulting from allotment of shares out of such share application money. Further, the period for which the share application money has been pending beyond the period for allotment as mentioned in the document inviting application for shares along with the reason for such share application money being pending shall be disclosed. Share application money not exceeding the issued capital and to the extent not refundable shall be shown under the head Equity and share application money to the extent refundable, _i.e., the amount in excess of subscription or in case the_ requirements of minimum subscription are not met, shall be separately shown under “Óther current liabilities”; (h) Unpaid matured deposits and interest accrued thereon; (i) Unpaid matured debentures and interest accrued thereon; (j) Other payables (specify nature). **H. Short-term provisions** |Particulars|Outstanding for following periods from due date of payment#|Col3|Col4|Col5|Col6| |---|---|---|---|---|---| ||Less than 1 year|1-2 years|2-3 years|More than 3 years|Total| |(i) MSME (ii) Others (iii) Disputed dues MSME (iv) Disputed dues- others|||||| ----- The amounts shall be classified as: (a) Provision for employee benefits. (b) Others (specify nature). **I. [1][Property, Plant and Equipment]** (i) Classification shall be given as: (a) Land; (b) Buildings; (c) Plant and Equipment; (d) Furniture and Fixtures; (e) Vehicles; (f) Office equipment; (g) Others (specify nature). (ii) Assets under lease shall be separately specified under each class of asset. 2[(iii) A reconciliation of the gross and net carrying amounts of each class of assets at the beginning and end of the reporting period showing additions, disposals, acquisitions through business combinations, amount of change due to revaluation (if change is 10% or more in the aggregate of the net carrying value of each class of Property, Plant and Equipment) and other adjustments and the related depreciation and impairment losses/reversals shall be disclosed separately.] (iv) Where sums have been written-off on a reduction of capital or revaluation of assets or where sums have been added on revaluation of assets, every balance sheet subsequent to date of such write-off, or addition shall show the reduced or increased figures as applicable and shall by way of a note also show the amount of the reduction or increase as applicable together with the date thereof for the first five years subsequent to the date of such reduction or increase. **J. Intangible assets** (i) Classification shall be given as: (a) Goodwill; (b) Brands /trademarks; (c) Computer software; (d) Mastheads and publishing titles; (e) Mining rights; (f) Copyrights, and patents and other intellectual property rights, services and operating rights; (g) Recipes, formulae, models, designs and prototypes; (h) Licences and franchise; (i) Others (specify nature). 3[(ii) A reconciliation of the gross and net carrying amounts of each class of assets at the beginning and end of the reporting period showing additions, disposals, acquisitions through business combinations, amount of change due to revaluation (if change is 10% or more in the aggregate of the net carrying value of each class of 1 Subs by Notification No G S R 207(E) dated 24th March 2021 for “Tangible Assets” (w e f 1-4-2021) ----- intangible assets) and other adjustments and the related depreciation and impairment losses or reversals shall be disclosed separately.] (iii) Where sums have been written-off on a reduction of capital or revaluation of assets or where sums have been added on revaluation of assets, every balance sheet subsequent to date of such write-off, or addition shall show the reduced or increased figures as applicable and shall by way of a note also show the amount of the reduction or increase as applicable together with the date thereof for the first five years subsequent to the date of such reduction or increase. **K. Non-current investments** (i) Non-current investments shall be classified as trade investments and other investments and further classified as: (a) Investment property; (b) Investments in Equity Instruments; (c) Investments in preference shares; (d) Investments in Government or trust securities; (e) Investments in debentures or bonds; (f) Investments in Mutual Funds; (g) Investments in partnership firms; (h) Other non-current investments (specify nature). Under each classification, details shall be given of names of the bodies corporate indicating separately whether such bodies are (i) subsidiaries, (ii) associates,(iii) joint ventures, or (iv) controlled special purpose entities in whom investments have been made and the nature and extent of the investment so made in each such body corporate (showing separately investments which are partly-paid). In regard to investments in the capital of partnership firms, the names of the firms (with the names of all their partners, total capital and the shares of each partner) shall be given. (ii) Investments carried at other than at cost should be separately stated specifying the basis for valuation thereof; (iii) The following shall also be disclosed: (a) Aggregate amount of quoted investments and market value thereof; (b) Aggregate amount of unquoted investments; (c) Aggregate provision for diminution in value of investments. **L. Long-term loans and advances** (i) Long-term loans and advances shall be classified as: (a) Capital Advances; 1*** (c) Loans and advances to related parties (giving details thereof); (d) Other loans and advances (specify nature). (ii) The above shall also be separately sub-classified as: (a) Secured, considered good; (b) Unsecured, considered good; (c) Doubtful. (iii) Allowance for bad and doubtful loans and advances shall be disclosed under the relevant heads separately. ----- (iv) Loans and advances due by directors or other officers of the company or any of them either severally or jointly with any other persons or amounts due by firms or private companies respectively in which any director is a partner or a director or a member should be separately stated. **M. Other non-current assets** Other non-current assets shall be classified as: (i) Long-term Trade Receivables (including trade receivables on deferred credit terms); 1[(ia) Security Deposits;] (ii) Others (specify nature); (iii) Long term Trade Receivables, shall be sub-classified as: (A) (a) Secured, considered good; (B) Unsecured, considered good; (C) Doubtful. (b) Allowance for bad and doubtful debts shall be disclosed under the relevant heads separately. (c) Debts due by directors or other officers of the company or any of them either severally or jointly with any other person or debts due by firms or private companies respectively in which any director is a partner or a director or a member should be separately stated. [ 1][(iv) For trade receivables outstanding, following ageing schedule shall be given: **Trade Receivables ageing schedule** (Amount in Rs.) Particulars Outstanding for following periods from due date of payment# Less than 6 6 months- 1-2 years 2-3 More than 3 Total months 1 year years years (i) Undisputed Trade receivables-considered good (ii) Undisputed Trade Receivablesconsidered doubtful (iii) Disputed Trade Receivables considered good (iv) Disputed Trade Receivables considered doubtful #similar information shall be given where no due date of payment is specified, in that case disclosure shall be from the date of the transaction. Unbilled dues shall be disclosed separately.] **N. Current Investments** (i) Current investments shall be classified as: (a) Investments in Equity Instruments; (b) Investments in Preference Shares; (c) Investments in Government or trust securities; (d) Investments in debentures or bonds; (e) Investments in Mutual Funds; |Particulars|Outstanding for following periods from due date of payment#|Col3|Col4|Col5|Col6|Col7| |---|---|---|---|---|---|---| ||Less than 6 months|6 months- 1 year|1-2 years|2-3 years|More than 3 years|Total| |(i) Undisputed Trade receivables-considered good (ii) Undisputed Trade Receivables- considered doubtful (iii) Disputed Trade Receivables considered good (iv) Disputed Trade Receivables considered doubtful||||||| ----- (f) Investments in partnership firms; (g) Other investments (specify nature). Under each classification, details shall be given of names of the bodies corporate [indicating separately whether such bodies are: (i) subsidiaries, (ii) associates, (iii) joint ventures, or (iv) controlled special purpose entities] in whom investments have been made and the nature and extent of the investment so made in each such body corporate (showing separately investments which are partly paid). In regard to investments in the capital of partnership firms, the names of the firms (with the names of all their partners, total capital and the shares of each partner) shall be given. (ii) The following shall also be disclosed: (a) The basis of valuation of individual investments; (b) Aggregate amount of quoted investments and market value thereof; (c) Aggregate amount of unquoted investments; (d) Aggregate provision made for diminution in value of investments. **O. Inventories** (i) Inventories shall be classified as: (a) Raw materials; (b) Work-in-progress; (c) Finished goods; (d) Stock-in-trade (in respect of goods acquired for trading); (e) Stores and spares; (f) Loose tools; (g) Others (specify nature). (ii) Goods-in-transit shall be disclosed under the relevant sub-head of inventories. (iii) Mode of valuation shall be stated. **P. Trade Receivables** 1[(i) For trade receivables outstanding, the following ageing schedules shall be given: **Trade Receivables ageing schedule** (Amount in Rs.) |Particulars|Outstanding for following periods from due date of payment#|Col3|Col4|Col5|Col6|Col7| |---|---|---|---|---|---|---| ||Less than 6 months|6 months- 1 year|1-2 years|2-3 years|More than 3 years|Total| |(i) Undisputed Trade receivables-considered good (ii) Undisputed Trade Receivables-considered doubtful (iii) Disputed Trade Receivables considered good (iv) Disputed Trade Receivables considered doubtful||||||| ----- #similar information shall be given where no due date of payment is specified in that case disclosure shall be from the date of the transaction. Unbilled dues shall be disclosed separately.] (ii) Trade receivables shall be sub-classified as: (a) Secured, considered good; (b) Unsecured, considered good; (c) Doubtful. (iii) Allowance for bad and doubtful debts shall be disclosed under the relevant heads separately. (iv) Debts due by directors or other officers of the company or any of them either severally or jointly with any other person or debts due by firms or private companies respectively in which any director is a partner or a director or a member should be separately stated. **Q. Cash and cash equivalents** (i) Cash and cash equivalents shall be classified as: (a) Balances with banks; (b) Cheques, drafts on hand; (c) Cash on hand; (d) Others (specify nature). (ii) Earmarked balances with banks (for example, for unpaid dividend) shall be separately stated. (iii) Balances with banks to the extent held as margin money or security against the borrowings, guarantees, other commitments shall be disclosed separately. (iv) Repatriation restrictions, if any, in respect of cash and bank balances shall be separately stated. (v) Bank deposits with more than twelve months maturity shall be disclosed separately. **R. Short-term loans and advances** (i) Short-term loans and advances shall be classified as: (a) Loans and advances to related parties (giving details thereof); (b) Others (specify nature). (ii) The above shall also be sub-classified as: (a) Secured, considered good; (b) Unsecured, considered good; (c) Doubtful. (iii) Allowance for bad and doubtful loans and advances shall be disclosed under the relevant heads separately. (iv) Loans and advances due by directors or other officers of the company or any of them either severally or jointly with any other person or amounts due by firms or private companies respectively in which any director is a partner or a director or a member shall be separately stated. **S. Other current assets (specify nature)** This is an all-inclusive heading, which incorporates current assets that do not fit into any other asset categories. **T. Contingent liabilities and commitments (to the extent not provided for)** (i) Contingent liabilities shall be classified as: (a) Claims against the company not acknowledged as debt; (b) Guarantees; ----- (ii) Commitments shall be classified as: (a) Estimated amount of contracts remaining to be executed on capital account and not provided for; (b) Uncalled liability on shares and other investments partly paid; (c) Other commitments (specify nature). **U. The amount of dividends proposed to be distributed to equity and preference shareholders for the period** and the related amount per share shall be disclosed separately. Arrears of fixed cumulative dividends on preference shares shall also be disclosed separately. **V. Where in respect of an issue of securities made for a specific purpose, the whole or part of the amount has** not been used for the specific purpose at the balance sheet date, there shall be indicated by way of note how such unutilised amounts have been used or invested. **1[VA. Where the company has not used the borrowings from banks and financial institutions for the specific** purpose for which it was taken at the balance sheet date, the company shall disclose the details of where they have been used.] **W. If, in the opinion of the Board, any of the assets other than [2][Property, Plant and Equipment] [3][,Intangible** assets] and non-current investments do not have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated, the fact that the Board is of that opinion, shall be stated. [4]* * * * * **5[Y. Additional Regulatory Information** (i) Title deeds of Immovable Property not held in name of the Company The company shall provide the details of all the immovable property (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) whose title deeds are not held in the name of the company in format given below and where such immovable property is jointly held with others, details are required to be given to the extent of the company’s share. Relevant line item Description Gross Title deeds Whether title deed Property Reason for in the Balance of item of carrying held in the holder is a held since not being sheet property value name of promoter, director which date held in the or relative# of name of the promoter*/director company** or employee of promoter/director PPE- Land - - - - ** also Building indicate if in dispute Investment Land property- Building PPE retired from Land active use and held Building for disposal others #Relative here means relative as defined in the Companies Act, 2013. *Promoter here means promoter as defined in the Companies Act, 2013. 1. Ins. by Notification No. G.S.R. 207(E), dated 24th March, 2021, (w.e.f. 1-4-2021). 2. Subs. by Notification No. G.S.R. (E), dated 11th October, 2018, for “fixed assets” (w.e.f. 11-10-2018). 3 Ins by Notification No G S R 207(E) dated 24th March 2021 (w e f 1-4-2021) |Relevant line item in the Balance sheet|Description of item of property|Gross carrying value|Title deeds held in the name of|Whether title deed holder is a promoter, director or relative# of promoter*/director or employee of promoter/director|Property held since which date|Reason for not being held in the name of the company**| |---|---|---|---|---|---|---| |PPE-|Land Building|-|-|-|-|** also indicate if in dispute| |Investment property-|Land Building|||||| |PPE retired from active use and held for disposal -|Land Building|||||| |others||||||| ----- (ii)Where the Company has revalued its Property, Plant and Equipment, the company shall disclose as to whether the revaluation is based on the valuation by a registered valuer as defined under rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017. (iii) Following disclosures shall be made where Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either serverally or jointly with any other person, that are: (a) repayable on demand or (b) without specifying any terms or period of repayment Type of Borrower Amount of loan or advance in Percentage to the total Loans and Advances in the nature of loan outstanding the nature of loans Promoters Directors KMPs Related Parties (iv) Capital-Work-in Progress (CWIP) (a) For Capital-work-in progress, following ageing schedule shall be given: CWIP aging schedule (Amount in Rs.) CWIP Amount in CWIP for a period of Total* Less than 1 1-2 years 2-3 years More than 3 years year Projects in progress Projects temporarily suspended *Total shall tally with CWIP amount in the balance sheet. (b) For capital-work-in progress, whose completion is overdue or has exceeded its cost compared to its original plan, following CWIP completion schedule shall be given**: (Amount in Rs.) CWIP To be completed in Less than 1 year 1-2 years 2-3 years More than 3 years Project 1 Project 2” ** Details of projects where actively has been suspended shall be given separately. (v) Intangible assets under development: (a) For Intangible assets under development, following ageing schedule shall be given: **Intangible assets under development aging schedule** (Amount in Rs.) Amount in CWIP for a period of Total* |Type of Borrower|Amount of loan or advance in the nature of loan outstanding|Percentage to the total Loans and Advances in the nature of loans| |---|---|---| |Promoters||| |Directors||| |KMPs||| |Related Parties||| |Col1|Col2|Col3|Col4|Col5|(Amount in Rs.| |---|---|---|---|---|---| |CWIP|Amount in CWIP for a period of||||Total*| ||Less than 1 year|1-2 years|2-3 years|More than 3 years|| |Projects in progress Projects temporarily suspended|||||| |CWIP|To be completed in|Col3|Col4|Col5| |---|---|---|---|---| ||Less than 1 year|1-2 years|2-3 years|More than 3 years| |Project 1 Project 2”||||| ----- |Intangible assets under development|Less than 1 year|1-2 years|2-3 years|More than 3 years|Col6| |---|---|---|---|---|---| |Projects in progress Projects temporarily suspended|||||| *Total shall tally with the amount of Intangible assets under development in the balance sheet. (b) For Intangible assets under development, whose completion is overdue or has exceeded its cost compared to its original plan, following Intangible assets under development completion schedule shall be given**: (Amount in Rs.) Intangible assets To be completed in under development Less than 1 year 1-2 years 2-3 years More than 3 years Project 1 Project 2 ** Details of projects where activity has been suspended shall be given separately. **(vi) Details of Benami Property held** Where any proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder, the company shall disclose the following: (a) Details of such property, including year of acquisition, (b) Amount thereof, (c) Details of Beneficiaries, (d) If property is in the books, then reference to the item in the Balance Sheet, (e) If property is not in the books, then the fact shall be stated with reasons, (f) Where there are proceedings against the company under this law as an abetter of the transaction or as the transferor then the details shall be provided, (g) Nature of proceedings, status of same and company’s view on same. (vii) Where the Company has borrowings from banks or financial institutions on the basis of security of current assets, it shall disclose the following: (a) whether quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts. (b) if not, summary of reconciliation and reasons of material discrepancies, if any to be adequately disclosed. **(viii) Wilful Defaulter*** Where a company is a declared willful defaulter by any bank or financial Institution or other lender, following details shall be given: (a) Date of declaration as willful defaulter, (b) Details of defaults (amount and nature of defaults), - “willful defaulter” here means a person or an issuer who or which is categorized as a willful defaulter by any bank or financial institution (as defined under the Act) or consortium thereof, in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India. |Intangible assets under development|To be completed in|Col3|Col4|Col5| |---|---|---|---|---| ||Less than 1 year|1-2 years|2-3 years|More than 3 years| |Project 1 Project 2||||| ----- Where the company has any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956, the Company shall disclose the following details: Name of struck off Nature of transactions Balance Relationship with the Struck off Company with struck off Company outstanding company, if any, to be disclosed Investments in securities Receivables Payables Shares held by stuck off company Other outstanding balances (to be specified) **(x) Registration of charges or satisfaction with Registrar of Companies** Where any charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period, details and reasons thereof shall be disclosed. **(xi) Compliance with number of layers of companies** Where the company has not complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017, the name and CIN of the companies beyond the specified layers and the relationship/extent of holding of the company in such downstream companies shall be disclosed. **(xii) Following Ratios to be disclosed:-** (a) Current Ratio, (b) Debt-Equity Ratio, (c) Debt Service Coverage Ratio, (d) Return on Equity Ratio, (e) Inventory turnover ratio, (f) Trade Receivables turnover ratio, (g) Trade payables turnover ratio, (h) Net capital turnover ratio, (i) Net profit ratio, (j) Return on Capital employed, (k) Return on investment. The company shall explain the items included in numerator and denominator for computing the above ratios. Further explanation shall be provided for any change in the ratio by more than 25% as compared to the preceding year. **(xiii) Compliance with approved Scheme(s) of Arrangements** Where any Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013, the Company shall disclose that the effect of such Scheme of Arrangements have been accounted for in the books of account of the Company ‘in accordance with the Scheme’ and ‘in accordance with accounting standards’ and deviation in this regard shall be explained. **(xiv) Utilisation of Borrowed funds and share premium:** (A) Where company has advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity (ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall |Name of struck off Company|Nature of transactions with struck off Company|Balance outstanding|Relationship with the Struck off company, if any, to be disclosed| |---|---|---|---| ||Investments in securities||| ||Receivables||| ||Payables||| ||Shares held by stuck off company||| ||Other outstanding balances (to be specified)||| ----- (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries; the company shall disclose the following: (I) date and amount of fund advanced or loaned or invested in Intermediaries with complete details of each Intermediary. (II) date and amount of fund further advanced or loaned or invested by such Intermediaries to other intermediaries or Ultimate Beneficiaries alongwith complete details of the ultimate beneficiaries. (III) date and amount of guarantee, security or the like provided to or on behalf of the Ultimate Beneficiaries. (IV) declaration that relevant provisions of the Foreign Exchange Management Act, 1999 (42 of 1999) and Companies Act has been complied with for such transactions and the transactions are not violative of the Prevention of Money-Laundering act, 2002 (15 of 2003); (B) Where a company has received any fund from any persons (s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries, the company shall disclose the following: (I) date and amount of fund received from Funding parties with complete details of each Funding party. (II) date and amount of fund further advanced or loaned or invested other intermediaries or Ultimate Beneficiaries alongwith complete details of the other intermediaries’ or ultimate beneficiaries. (III) date and amount of guarantee, security or the like provided to or on behalf of the Ultimate Beneficiaries (IV) declaration that relevant provisions of the Foreign Exchange Management Act, 1999 (42 of 1999) and Companies Act has been complied with for such transactions and the transactions are not violative of the Prevention of Money-Laundering act, 2002 (15 of 2003).] **PART II – STATEMENT OF PROFIT AND LOSS** _Name of the Company……………………._ _Profit and loss statement for the year ended ………………………_ (Rupees in…………) Figures as at the end of the previous reporting period Particulars Note No. Figures as at the end of current reporting period 1 2 3 4 I. Revenue from operations xxx xxx II. Other income xxx xxx III. Total [1][Income] (I + II) xxx xxx IV. Expenses: Cost of materials consumed Purchases of Stock-in-Trade ----- Changes in inventories of finished goods xxx xxx work-in-progress and xxx xxx Stock-in-Trade xxx xxx Employee benefits expense xxx xxx Finance costs Depreciation and amortisation expense Other expenses 1 2 3 4 Total expenses xxx xxx V. Profit before exceptional and extraordinary items and tax (III IV) xxx xxx VI. Exceptional items xxx xxx VII. Profit before extraordinary items and tax (V - VI) xxx xxx VIII. Extraordinary items xxx xxx IX. Profit before tax (VII- VIII) xxx xxx X. Tax expense: (1) Current tax xxx xxx (2) Deferred tax xxx xxx XI. Profit (Loss) for the period from continuing operations (VII-VIII) XII. Profit/(loss) from discontinuing operations XIII. Tax expense of discontinuing operations XIV. Profit/(loss) from Discontinuing operations (after tax) (XII-XIII) XV. Profit (Loss) for the period (XI + XIV) XVI. Earnings per equity share: xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx (1) Basic xxx xxx (2) Diluted xxx xxx ----- **_See accompanying notes to the financial statements._** **GENERAL INSTRUCTIONS FOR PREPARATION OF STATEMENT OF** **PROFIT AND LOSS** 1. The provisions of this Part shall apply to the income and expenditure account referred to in sub-clause (ii) of clause (40) of section 2 in like manner as they apply to a statement of profit and loss. 2. (A) In respect of a company other than a finance company revenue from operations shall disclose separately in the notes revenue from— (a) Sale of products; (b) Sale of services; 1[(ba) Grants or donations received (relevant in case of section 8 companies only)] (c) Other operating revenues; _Less:_ (d) Excise duty. (B) In respect of a finance company, revenue from operations shall include revenue from— (a) Interest; and (b) Other financial services. Revenue under each of the above heads shall be disclosed separately by way of notes to accounts to the extent applicable. 3. Finance Costs Finance costs shall be classified as: (a) Interest expense; (b) Other borrowing costs; (c) Applicable net gain/loss on foreign currency transactions and translation. 4. Other income Other income shall be classified as: (a) Interest Income (in case of a company other than a finance company); (b) Dividend Income; (c) Net gain/loss on sale of investments; (d) Other non-operating income (net of expenses directly attributable to such income). 5. Additional Information A Company shall disclose by way of notes additional information regarding aggregate expenditure and income on the following items:— (i) (a) Employee Benefits Expense [showing separately (i) salaries and wages, (ii) contribution to provident and other funds, (iii) expense on Employee Stock Option Scheme (ESOP) and Employee Stock Purchase Plan (ESPP), (iv) staff welfare expenses]. (b) Depreciation and amortisation expense; (c) Any item of income or expenditure which exceeds one per cent. of the revenue from operations or Rs.1,00,000, whichever is higher; ----- (d) Interest Income; (e) Interest expense; (f) Dividend income; (g) Net gain/loss on sale of investments; (h) Adjustments to the carrying amount of investments; (i) Net gain or loss on foreign currency transaction and translation (other than considered as finance cost); (j) Payments to the auditor as (a) auditor; (b) for taxation matters; (c) for company law matters; (d) for management services; (e) for other services; and (f) for reimbursement of expenses; (k) In case of Companies covered under section 135, amount of expenditure incurred on corporate social responsibility activities; (l) Details of items of exceptional and extraordinary nature; (m) Prior period items; (ii) (a) In the case of manufacturing companies,— (1) Raw materials under broad heads. (2) goods purchased under broad heads. (b) In the case of trading companies, purchases in respect of goods traded in by the company under broad heads. (c) In the case of companies rendering or supplying services, gross income derived from services rendered or supplied under broad heads. (d) In the case of a company, which falls under more than one of the categories mentioned in (a), (b) and (c) above, it shall be sufficient compliance with the requirements herein if purchases, sales and consumption of raw material and the gross income from services rendered is shown under broad heads. (e) In the case of other companies, gross income derived under broad heads. (iii) In the case of all concerns having works in progress, works-in-progress under broad heads. (iv) (a) The aggregate, if material, of any amounts set aside or proposed to be set aside, to reserve, but not including provisions made to meet any specific liability, contingency or commitment known to exist at the date as to which the balance sheet is made up. (b) The aggregate, if material, of any amounts withdrawn from such reserves. (v) (a) The aggregate, if material, of the amounts set aside to provisions made for meeting specific liabilities, contingencies or commitments. (b) The aggregate, if material, of the amounts withdrawn from such provisions, as no longer required. (vi) Expenditure incurred on each of the following items, separately for each item:— (a) Consumption of stores and spare parts; (b) Power and fuel; (c) Rent; (d) Repairs to buildings; (e) Repairs to machinery; (f) Insurance; ----- (h) Miscellaneous expenses, (vii) (a) Dividends from subsidiary companies. (b) Provisions for losses of subsidiary companies. (viii) The profit and loss account shall also contain by way of a note the following information, namely:— (a) Value of imports calculated on C.I.F basis by the company during the financial year in respect of— I. Raw materials; II. Components and spare parts; III. Capital goods; (b) Expenditure in foreign currency during the financial year on account of royalty, know-how, professional and consultation fees, interest, and other matters; (c) Total value if all imported raw materials, spare parts and components consumed during the financial year and the total value of all indigenous raw materials, spare parts and components similarly consumed and the percentage of each to the total consumption; (d) The amount remitted during the year in foreign currencies on account of dividends with a specific mention of the total number of non-resident shareholders, the total number of shares held by them on which the dividends were due and the year to which the dividends related; (e) Earnings in foreign exchange classified under the following heads, namely:— I. Export of goods calculated on F.O.B. basis; II. Royalty, know-how, professional and consultation fees; III. Interest and dividend; IV. Other income, indicating the nature thereof. Note:— Broad heads shall be decided taking into account the concept of materiality and presentation of true and fair view of financial statements. 1[(ix) Undisclosed income: The Company shall give details of any transaction not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961), unless there is immunity for disclosure under any scheme and also shall state whether the previously unrecorded income and related assets have been properly recorded in the books of account during the year.; (x) Corporate Social Responsibility (CSR) Where the company covered under section 135 of the companies act, the following shall be disclosed with regard to CSR activities: (a) amount required to be spent by the company during the year, (b) amount of expenditure incurred, (c) shortfall at the end of the year, (d) total of previous years shortfall, (e) reason for shortfall, (f) nature of CSR activities (g) details of related party transactions, e.g., contribution to a trust controlled by the company in relation to CSR expenditure as per relevant Accounting Standard, (h) where a provision is made with respect to a liability incurred by entering into a contractual obligation, the movements in the provision during the year should be shown separately. ----- (xi) Details of Crypto Currency of Virtual Currency Where the Company has traded or invested in Crypto currency or Virtual Currency during the financial year, the following shall be disclosed: (a) profit or loss on transactions involving Crypto currency or Virtual Currency (b) amount or currency held as at the reporting date, (c) deposits or advances from any person for the purpose of trading or investing in Crypto Currency/virtual currency.] **GENERAL INSTRUCTIONS FOR THE PREPARATION OF CONSOLIDATED** **FINANCIAL STATEMENTS** 1. Where a company is required to prepare Consolidated Financial Statements, i.e., consolidated balance sheet and consolidated statement of profit and loss, the company shall _mutatis mutandis follow the requirements of this_ Schedule as applicable to a company in the preparation of balance sheet and statement of profit and loss. In addition, the consolidated financial statements shall disclose the information as per the requirements specified in the applicable Accounting Standards including the following: (i) Profit or loss attributable to “minority interest” and to owners of the parent in the statement of profit and loss shall be presented as allocation for the period. (ii) “Minority interests” in the balance sheet within equity shall be presented separately from the equity of the owners of the parent. 2. In Consolidated Financial Statements, the following shall be disclosed by way of additional information: Name of the entity in the Net Assets, i.e., total assets minus total liabilities Share in profit or loss As % of consolidated net assets Amount As % of consolidated profit or loss Amount 1 2 3 4 5 Parent Subsidiaries Indian 1. 2. 3. . . Foreign 1. 2. ----- 1 2 3 4 5 3. . . Minority Interest in all subsidiaries Associates (Investment as per the equity method) Indian 1. 2. 3. . . Foreign 1. 2. 3. . . Joint Ventures (as per proportionate consolidation/ investment as per the equity method) Indian ________________________________ _______________________________ 1. 2. 3. . . Foreign 1. 2. 3. . . Total ----- 3. All subsidiaries, associates and joint ventures (whether Indian or foreign) will be covered under consolidated financial statements. 4. An entity shall disclose the list of subsidiaries or associates or joint ventures which have not been consolidated in the consolidated financial statements along with the reasons of not consolidating. 1[Division II Financial Statements for a company whose financial statements are drawn up in compliance of the Companies (Indian Accounting Standards) Rules, 2015. **_GENERAL INSTURCTIONS FOR PREPARATION OF FINANCIAL STATEMENTS OF A COMPANY_** **_REQUIRED TO COMPLY WITH Ind AS_** 1. Every company to which Indian Accounting Standards apply, shall prepare its financial statements in accordance with this Schedule or with such modification as may be required under certain circumstances. 2. Where compliance with the requirements of the Act including Indian Accounting Standards (except the option of presenting assets and liabilities in the order of liquidity as provided by the relevant Ind AS) as applicable to the companies require any change in treatment or disclosure including addition, amendment, substitution or deletion in the head or sub-head or any changes inter se, in the financial or statements forming part thereof, the same shall be made and the requirements under this Schedule shall stand modified accordingly. 3. The disclosure requirements specified in the Schedule are in addition to and not in substitution of the disclosure requirements specified in the Indian Accounting Standards. Additional disclosures specified in the Indian Accounting Standards shall be made in the Notes or by way of additional statement or statements unless required to be disclosed on the face of the Financial Statements. Similarly, all other disclosures as required by the Companies Act, 2013 shall be made in the Notes in addition to the requirements set out in this Schedule. 4. (i) Notes shall contain information in addition to that presented in the Financial Statements and shall provide where required (a) narrative descriptions or disaggregations of items recognised in those statements; and (b) information about items that do not qualify for recognition in those statements. (ii) Each item on the face of the Balance Sheet, Statement of Changes in Equity and Statement of Profit and Loss shall be cross-referenced to any related information in the Notes. In preparing the Financial Statements including the Notes, a balance shall be maintained between providing excessive detail that may not assist users of Financial Statements and not providing important information as a result of too much aggregation. 5. Depending upon the [2][Total Income] of the company, the figures appearing in the Financial Statements shall be rounded off as below: **2[Total Income]** **Rounding off** (i) less than one hundred crore rupees To the nearest hundreds, thousands, lakhs or millions, or decimals thereof. (ii) one hundred crore rupees or more To the nearest, lakhs, millions or crores, or decimals thereof. Once a unit of measurement is used, it should be used uniformly in the Financial Statements. 6. Financial Statements shall contain the corresponding amounts (comparatives) for the immediately preceding reporting period for all items shown in the Financial Statements including Notes except in the case of first Financial Statements laid before the company after incorporation. |2[Total Income]|Rounding off| |---|---| |(i) less than one hundred crore rupees|To the nearest hundreds, thousands, lakhs or millions, or decimals thereof.| |(ii) one hundred crore rupees or more|To the nearest, lakhs, millions or crores, or decimals thereof.| ----- 7. Financial Statements shall disclose all ‘material’ items, i.e., the items if they could, individually or collectively, influence the economic decisions that users make on the basis of the financial statements. Materiality depends on the size or nature of the item or a combination of both, to be judged in the particular circumstances. 8. For the purpose of this Schedule, the terms used herein shall have the same meanings assigned to them in Indian Accounting Standards. 9. Where any Act or Regulation requires specific disclosures to be made in the standalone financial statements of a company, the said disclosures shall be made in addition to those required under this Schedule. **Note: This Schedule sets out the minimum requirements for disclosure on the face of the Financial Statements,** _i.e., Balance Sheet, Statement of Changes in Equity for the period, the Statement of Profit and Loss for the period_ (The term ‘Statement of Profit and Loss’ has the same meaning as ‘Profit and Loss Account’) and Notes. Cash flow statement shall be prepared, where applicable, in accordance with the requirements of the relevant Indian Accounting Standard. Line items, sub-line items and sub-totals shall be presented as an addition or substitution on the face of the Financial Statements when such presentation is relevant to an understanding of the company’s financial position or performance or to cater to industry or sector-specific disclosure requirements or when required for compliance with the amendments to the Companies Act, 2013 or under the Indian Accounting Standards. **_PART I –BALANCE SHEET_** _Name of the Company ......................_ _Balance Sheet as at ............................_ (Rupees in ............... ) **_Particulars_** **Note No.** **Figures as at the end of** **Figures as at the end of** **current reporting** **the previous reporting** **period** **period** **1** 2 3 4 (1) **ASSETS** **Non-current assets** (a) Property, Plant and Equipment (b) Capital work-in-progress (c) Investment Property (d) Goodwill (e) Other Intangible assets (f) Intangible assets under development (g) Biological Assets other than bearer plants (h) Financial Assets (i) Investments (ii) Trade receivables (iii) Loans (iv) Others (to be specified) (i) Deferred tax assets (net) (j) Other non-current assets (2) **Current assets** (a) Inventories (b) Financial Assets (i) Investments (ii) Trade receivables (iii) Cash and cash equivalents (iv) Bank balances other than (iii) above (v) Loans (vi) Others (to be specified) (c) Current Tax Assets (Net) (d) Other current assets |Col1|Particulars|Note No.|Figures as at the end of current reporting period|Figures as at the end of the previous reporting period| |---|---|---|---|---| ||1|2|3|4| |(1)|ASSETS Non-current assets|||| |(2)|(a) Property, Plant and Equipment (b) Capital work-in-progress (c) Investment Property (d) Goodwill (e) Other Intangible assets (f) Intangible assets under development (g) Biological Assets other than bearer plants (h) Financial Assets (i) Investments (ii) Trade receivables (iii) Loans (iv) Others (to be specified) (i) Deferred tax assets (net) (j) Other non-current assets Current assets (a) Inventories (b) Financial Assets (i) Investments (ii) Trade receivables (iii) Cash and cash equivalents (iv) Bank balances other than (iii) above (v) Loans (vi) Others (to be specified) (c) Current Tax Assets (Net) (d) Other current assets|||| ----- **Total Assets** 1[Trade Payables (A) total outstanding dues of micro enterprises and small enterprises; and (B) total outstanding dues of creditors other than micro enterprises and (1) small enterprises.] (a) **EQUITY and** **LIABILITIES** **Non-current liabilities** (a) Financial Liabilities (i) Borrowings 2[(ia) Lease liabilities] 1[Trade Payables (A) total outstanding dues of micro enterprises and small enterprises; and (B) total outstanding dues of creditors other than micro enterprises and small (2) enterprises.] (iii) Other financial liabilities (other than those specified in item (b), to be specified) (b) Provisions (c) Deferred tax liabilities (Net) (d) Other non-current liabilities **Current liabilities** (a) Financial Liabilities (i) Borrowings 2[(ia) Lease liabilities] (ii) Trade payables (iii) Other financial liabilities (other than those specified in item (c) (b) Other current liabilities (c) Provisions (d) Current Tax Liabilities (Net) **Total Equity and Liabilities** **See accompanying notes to the financial statements** **3[STATEMENT OF CHANGES IN EQUITY** Name of the Company ............................... A. Equity Share Capital (1) Current reporting period Balance at the Changes in Equity Restated balance at Changes in equity beginning of the Share Capital due to the beginning of the share capital current reporting prior period errors current reporting during the current period period year 1 Subs by Notification No G S R 1022(E) dated 11-10-2018 for "(b) Trade payables" (w e f 11-10-2018) |Col1|Total Assets|Col3|Col4|Col5| |---|---|---|---|---| |(1) (2)|1[Trade Payables (A) total outstanding dues of micro enterprises and small enterprises; and (B) total outstanding dues of creditors other than micro enterprises and small enterprises.] (a) EQUITY and LIABILITIES Non-current liabilities (a) Financial Liabilities (i) Borrowings 2[(ia) Lease liabilities] 1[Trade Payables (A) total outstanding dues of micro enterprises and small enterprises; and (B) total outstanding dues of creditors other than micro enterprises and small enterprises.] (iii) Other financial liabilities (other than those specified in item (b), to be specified) (b) Provisions (c) Deferred tax liabilities (Net) (d) Other non-current liabilities Current liabilities (a) Financial Liabilities (i) Borrowings 2[(ia) Lease liabilities] (ii) Trade payables (iii) Other financial liabilities (other than those specified in item (c) (b) Other current liabilities (c) Provisions (d) Current Tax Liabilities (Net)|||| ||Total Equity and Liabilities|||| |Balance at the beginning of the current reporting period|Changes in Equity Share Capital due to prior period errors|Restated balance at the beginning of the current reporting period|Changes in equity share capital during the current year|Balance at the end of the current reporting period| |---|---|---|---|---| |||||| ----- (2) Previous reporting period Balance at the beginning of the previous reporting period B. Other Equity (1) Current reporting period Share Equity applica- component tion of compound money Capital financial pending Reserve instruments allotment Balance at the beginning of the current reporting period Changes in accounting policy or prior period errors Restated balance at the beginning of the current reporting period Total Comprehensive Income for the Current year Dividends Transfer to retained earnings Any other change (to be specified) Balance at the end of the current reporting period (2) Previous reporting period Share Equity application componen Capital money t of Reserve pending compound allotment financial instrument s Balance at the Beginning of the previous reporting period |Balance at the beginning of the previous reporting period|Changes in Equity Share Capital due to prior period errors|Restated balance at the beginning of the previous reporting period|Changes in equity share capital during the previous year|Balance at the end of the previous reporting period| |---|---|---|---|---| |||||| |Col1|Share applica- tion money pending allotment|Equity component of compound financial instruments|Reserves and Surplus|Col5|Col6|Col7|Debt instru- ments through Other Comprehensive Income|Equity Instru- ments through Other Comprehensive Income|Effective portion of Cash Flow Hedges|Revaluat ion Surplus|Exchange differences on trans- lating the financial state- ments of a foreign operation|Other items of Other Compre- hensive Income (specify nature)|Money received against share warrants|Total| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| ||||Capital Reserve|1[Securities Premium Reserve]|Other Reserv es (specif y nature)|Retained Earnings||||||||| |Balance at the beginning of the current reporting period||||||||||||||| |Changes in accounting policy or prior period errors||||||||||||||| |Restated balance at the beginning of the current reporting period||||||||||||||| |Total Comprehensive Income for the Current year||||||||||||||| |Dividends||||||||||||||| |Transfer to retained earnings||||||||||||||| |Any other change (to be specified)||||||||||||||| |Balance at the end of the current reporting period||||||||||||||| Total |Col1|Share application money pending allotment|Equity componen t of compound financial instrument s|Reserves and Surplus|Col5|Col6|Col7|Col8|Col9|Col10|Col11|Col12|Col13|Col14|Col15| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| ||||Capital Reserve|Securities Premium|Other Reserves (specify nature)|Retained Earnings|Debt instruments through Other Comprehen sive Income|Equity Instruments through Other Comprehen sive Income|Effective portion of Cash Flow Hedges|Revaluation Surplus|Exchange difference s on translating the financial statements of a foreign operation|Other items of Other Compre hensive Income (specify nature)|Money received against share warrants|Total| |Balance at the||||||||||||||| |Beginning of the previous reporting period||||||||||||||| ----- |Changes in accounting policy/prior period errors|Col2|Col3|Col4|Col5|Col6|Col7|Col8|Col9|Col10|Col11|Col12|Col13|Col14|Col15| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| |Restated balance at the beginning of the previous reporting period||||||||||||||| |Total Comprehensiv e Income for the previous year||||||||||||||| |Dividends||||||||||||||| |Transfer to retained earnings||||||||||||||| |Any other change (to be specified)||||||||||||||| |Balance at the end of the previous reporting period||||||||||||||| Note: Remeasurement of defined benefit plans and fair value changes relating to own credit risk of financial liabilities designated at fair value through profit or loss shall be recognized as a part of retained earnings with separate disclosure of such items alongwith the relevant amounts in the Notes or shall be shown as a separate column under Reserves and Surplus.] **_Notes:_** **_GENERAL INSTRUCTIONS FOR PREPARATION OF BALANCE SHEET_** 1. An entity shall classify an asset as current when (a) it expects to realise the asset, or intends to sell or consume it, in its normal operating cycle; (b) it holds the asset primarily for the purpose of trading; (c) it expects to realise the asset within twelve months after the reporting period; or (d) the asset is cash or a cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. An entity shall classify all other assets as non-current. 2. The operating cycle of an entity is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. When the entity’s normal operating cycle is not clearly identifiable, it is assumed to be twelve months. 3. An entity shall classify a liability as current when (a) it expects to settle the liability in its normal operating cycle; (b) it holds the liability primarily for the purpose of trading; (c) the liability is due to be settled within twelve months after the reporting period; or (d) it does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. An entity shall classify all other liabilities as non-current. 4. A receivable shall be classified as a ‘trade receivable’ if it is in respect of the amount due on account of goods sold or services rendered in the normal course of business. 5. A payable shall be classified as a ‘trade payable’ if it is in respect of the amount due on account of goods purchased or services received in the normal course of business. 6 A company shall disclose the following in the Notes: ----- # A. Non-Current Assets I. Property, Plant and Equipment : (i) Classification shall be given as: (a) Land (b) Buildings (c) Plant and Equipment (d) Furniture and Fixtures (e) Vehicles (f) Office equipment (g) Bearer Plants (h) Others (specify nature) (ii) Assets under lease shall be separately specified under each class of assets. 1[(iii) A reconciliation of the gross and net carrying amounts of each class of assets at the beginning and end of the reporting period showing additions, disposals, acquisitions through business combinations, amount of change due to revaluation (if change is 10% or more in the aggregate of the net carrying value of each class of Property, Plant and Equipment) and other adjustments and the related depreciation and impairment losses or reversals shall be disclosed separately.] II. Investment Property: A reconciliation of the gross and net carrying amounts of each class of property at the beginning and end of the reporting period showing additions, disposals, acquisitions through business combinations and other adjustments and the related depreciation and impairment losses or reversals shall be disclosed separately. III Goodwill: A reconciliation of the gross and net carrying amount of goodwill at the beginning and end of the reporting period showing additions, impairments, disposals and other adjustments. IV. Other Intangible assets: (i) Classification shall be given as: (a) Brands or trademarks (b) Computer software (c) Mastheads and publishing titles (d) Mining rights (e) Copyrights, patents, other intellectual property rights, services and operating rights (f) Recipes, formulae, models, designs and prototypes (g) Licenses and franchises (h) Others (specify nature) 2[(ii) A reconciliation of the gross and net carrying amounts of each class of assets at the beginning and end of the reporting period showing additions, disposals, acquisitions through business combinations, amount of change due to revaluation (if change is 10% or more in the aggregate of the net carrying value of each class of intangible assets) and other adjustments and the related amortization and impairment losses or reversals shall be disclosed separately.] V. Biological Assets other than bearer plants: A reconciliation of the carrying amounts of each class of assets at the beginning and end of the reporting period showing additions, disposals, acquisitions through business combinations and other adjustments shall be disclosed separately. ----- VI. Investments: (i) Investments shall be classified as: (a) Investments in Equity Instruments; (b) Investments in Preference Shares; (c) Investments in Government or trust securities; (d) Investments in debentures or bonds; (e) Investments in Mutual Funds; (f) Investments in partnership firms; or (g) Other investments (specify nature). Under each classification, details shall be given of names of the bodies corporate that are (i) subsidiaries, (ii) associates, (iii) joint ventures, or (iv) structured entities, in whom investments have been made and the nature and extent of the investment so made in each such body corporate (showing separately investments which are partly-paid). Investments in partnership firms along alongwith names of the firms, their partners, total capital and the shares of each partner shall be disclosed separately. The following shall also be disclosed: (a) Aggregate amount of quoted investments and market value thereof; (b) Aggregate amount of unquoted investments; and (c) Aggregate amount of impairment in value of investments. VII. Trade Receivables: 1[(i) Trade receivables shall be sub-classified as: (a) Trade Receivables considered good – Secured; (b) Trade Receivables considered good – Unsecured; (c) Trade Receivables which have significant increase in Credit Risk; and (d) Trade Receivables - credit impaired.] (ii) Allowance for bad and doubtful debts shall be disclosed under the relevant heads separately. (iii) Debts due by directors or other officers of the company or any of them either severally or jointly with any other person or debts due by firms or private companies respectively in which any director is a partner or a director or a member should be separately stated. 2[(iv) Trade Receivables ageing schedule (Amount in Rs.) |Particulars|Outstanding for following periods from due date of payment#|Col3|Col4|Col5|Col6|Col7| |---|---|---|---|---|---|---| ||Less than 6 months|6 months -1 year|1-2 years|2-3 years|More than 3 years|Total| |(i) Undisputed Trade Receivables - considered good (ii) Undisputed Trade Receivables- which have significant increase in credit risk||||||| ----- |(iii) Undisputed Trade Receivables- credit impaired (iv) Disputed Trade Receivables- considered good (v) Disputed Trade Receivables – which have significant increase in credit risk (vi) Disputed Trade Receivables- credit impaired|Col2|Col3|Col4|Col5|Col6|Col7| |---|---|---|---|---|---|---| #similar information shall be given where no due date of payment is specified in that case disclosure shall be from the date of the transaction. Unbilled dues shall be disclosed separately;] VIII. Loans: (i) Loans shall be classified as 1*** (b) Loans to related parties (giving details thereof); and (c) Other loans (specify nature). 2[(ii) Loans Receivables shall be sub-classified as: (a) Loans Receivables considered good – Secured; (b) Loans Receivables considered good - Unsecured; (c) Loans Receivables which have significant increase in Credit Risk; and (d) Trade Receivables - credit impaired.] (iii) Allowance for bad and doubtful loans shall be disclosed under the relevant heads separately. (iv) Loans due by directors or other officers of the company or any of them either severally or jointly with any other persons or amounts due by firms or private companies respectively in which any director is a partner or a director or a member should be separately stated. 3[IX. Other financial assets (i) Security Deposits (ii) Bank deposits with more than 12 months maturity (iii) others (to be specified)] IX. Other non-current assets: Other non-current assets shall be classified as (i) Capital Advances; and (ii) Advances other than capital advances; (1) Advances other than capital advances shall be classified as: (a) Security Deposits; (b) Advances to related parties (giving details thereof); and (c) Other advances (specify nature). (2) Advances to directors or other officers of the company or any of them either severally or jointly with any other persons or advances to firms or private companies respectively in which any director is a partner or a director or a member should be separately stated. In case advances are of the nature of a financial asset as per relevant Ind AS, these are to be disclosed under ‘other financial assets’ separately. 1 Sub item (a) omitted by Notification No G S R 207(E) dated 24th March 2021 (w e f 1 4 2021) ----- (iii) Others (specify nature). # B. Current Assets I. Inventories: (i) Inventories shall be classified as (a) Raw materials; (b) Work-in-progress; (c) Finished goods; (d) Stock-in-trade (in respect of goods acquired for trading); (e)Stores and spares; (f) Loose tools; and (g) Others (specify nature). (ii) Goods-in-transit shall be disclosed under the relevant sub-head of inventories. (iii) Mode of valuation shall be stated. II. Investments: (i) Investments shall be classified as (a) Investments in Equity Instruments; (b) Investment in Preference Shares; (c) Investments in government or trust securities; (d) Investments in debentures or bonds; (e) Investments in Mutual Funds; (f) Investments in partnership firms; and (g) Other investments (specify nature). Under each classification, details shall be given of names of the bodies corporate that are (i) subsidiaries, (ii) associates, (iii) joint ventures, or (iv) structured entities, in whom investments have been made and the nature and extent of the investment so made in each such body corporate (showing separately investments which are partly-paid). (ii) The following shall also be disclosed (a) Aggregate amount of quoted investments and market value thereof; (b) Aggregate amount of unquoted investments; (c) Aggregate amount of impairment in value of investments. III. Trade Receivables: 1[(i) Trade receivables shall be sub-classified as: (a) Loans Receivables considered good – Secured; (b) Loans Receivables considered good - Unsecured; (c) Loans Receivables which have significant increase in Credit Risk; and (d) Trade Receivables - credit impaired.] (ii) Allowance for bad and doubtful debts shall be disclosed under the relevant heads separately. (iii) Debts due by directors or other officers of the company or any of them either severally or jointly with any other person or debts due by firms or private companies respectively in which any director is a partner or a director or a member should be separately stated. ----- 1[(iv) For trade receivable outstanding, following ageing schedule shall be given: **Trade Receivables ageing schedule** **(Amount in Rs.)** Particulars Outstanding for following periods from due date of payment# Less than 6 months 6 months - 1-2 2-3 More than Total 1 year years years 3 years (i) Undisputed Trade receivables- considered good (ii) Undisputed Trade Receivables -which have significant increase in credit risk (iii) Undisputed Trade Receivables-credit impaired (iv) Disputed Trade Receivablesconsidered good (v) Disputed Trade Receivableswhich have significant increase in credit risk (iv) Disputed Trade Receivables credit impaired # similar information shall be given where no due date of payment is specified in that case disclosure shall be from the date of the transaction. Unbilled dues shall be disclosed separately.] IV. Cash and cash equivalents: Cash and cash equivalents shall be classified as a. Balances with Banks (of the nature of cash and cash equivalents); b. Cheques, drafts on hand; c. Cash on hand; and d. Others (specify nature). V. Loans: (i) Loans shall be classified as: (a) 2*** (b) Loans to related parties (giving details thereof); and (c) Others (specify nature). 3[(ii) Trade receivables shall be sub-classified as: (a) Loans Receivables considered good – Secured; (b) Loans Receivables considered good - Unsecured; (c) Loans Receivables which have significant increase in Credit Risk; and (d) Trade Receivables - credit impaired.] (iii) Allowance for bad and doubtful loans shall be disclosed under the relevant heads separately. (iv) Loans due by directors or other officers of the company or any of them either severally or jointly with any other person or amounts due by firms or private companies respectively in which any director is a partner or a director or a member shall be separately stated. 1. Ins. by Notification No. G.S.R. 207(E), dated 24th March, 2021, (w.e.f. 1-4-2021). 2 Sub item (a) omitted by Notification No G S R 207(E) dated 24th March 2021 (w e f 1 4 2021) |Particulars|Outstanding for following periods from due date of payment#|Col3|Col4|Col5|Col6|Col7| |---|---|---|---|---|---|---| ||Less than 6 months|6 months - 1 year|1-2 years|2-3 years|More than 3 years|Total| |(i) Undisputed Trade receivables- considered good (ii) Undisputed Trade Receivables -which have significant increase in credit risk (iii) Undisputed Trade Receivables-credit impaired (iv) Disputed Trade Receivables- considered good (v) Disputed Trade Receivables- which have significant increase in credit risk (iv) Disputed Trade Receivables - credit impaired||||||| ----- 1[VA. Other Financial Assets: This is an all-inclusive heading, which incorporates financial assets that do not fit into any other financial asset categories, such as, Security Deposits.] VI. Other current assets (specify nature): This is an all-inclusive heading, which incorporates current assets that do not fit into any other asset categories. Other current assets shall be classified as (i) Advances other than capital advances (1) Advances other than capital advances shall be classified as: (a) Security Deposits; (b) Advances to related parties (giving details thereof); (c) Other advances (specify nature). (2) Advances to directors or other officers of the company or any of them either severally or jointly with any other persons or advances to firms or private companies respectively in which any director is a partner or a director or a member should be separately stated. (ii) Others (specify nature) # C. Cash and Bank balances: The following disclosures with regard to cash and bank balances shall be made: (a) Earmarked balances with banks (for example, for unpaid dividend) shall be separately stated. (b) Balances with banks to the extent held as margin money or security against the borrowings, guarantees, other commitments shall be disclosed separately. (c) Repatriation restrictions, if any, in respect of cash and bank balances shall be separately stated. # D. Equity **I.** Equity Share Capital: For each class of equity share capital: (a) the number and amount of shares authorised; (b) the number of shares issued, subscribed and fully paid, and subscribed but not fully paid; (c) par value per share; (d) a reconciliation of the number of shares outstanding at the beginning and at the end of the period; (e) the rights, preferences and restrictions attaching to each class of shares including restrictions on the distribution of dividends and the repayment of capital; (f) shares in respect of each class in the company held by its holding company or its ultimate holding company including shares held by subsidiaries or associates of the holding company or the ultimate holding company in aggregate; (g) shares in the company held by each shareholder holding more than five per cent. shares specifying the number of shares held; (h) shares reserved for issue under options and contracts or commitments for the sale of shares or disinvestment, including the terms and amounts; (i) for the period of five years immediately preceding the date at which the Balance Sheet is prepared - aggregate number and class of shares allotted as fully paid up pursuant to contract without payment being received in cash; - aggregate number and class of shares allotted as fully paid up by way of bonus shares; and - aggregate number and class of shares bought back; (j) terms of any securities convertible into equity shares issued along with the earliest date of conversion in descending order starting from the farthest such date; (k) calls unpaid (showing aggregate value of calls unpaid by directors and officers); (l) forfeited shares (amount originally paid up). 2[(m) A company shall disclose Shareholding of Promoters* as under: Shares held by promoters at the end of the year % Change during the year*** S.No Promoter name No. of Shares*** %of total shares Total *Promoter hare means promoter as defined in the Companies Act, 2013. |2[(m) A company shall disclose Shareholding of Promoters* as under:|Col2|Col3|Col4|Col5| |---|---|---|---|---| |Shares held by promoters at the end of the year||||% Change during the year***| |S.No|Promoter name|No. of Shares***|%of total shares|| |Total||||| ----- ** Details shall be given separately for each class of shares *** percentage change shall be computed with respect to the number at the beginning of the year or if issued during the year for the first time then with respect to the date of issue.] II. Other Equity: (i) ‘Other Reserves’ shall be classified in the notes as (a) Capital Redemption Reserve; (b) Debenture Redemption Reserve; (c) Share Options Outstanding Account; and (d) Others– (specify the nature and purpose of each reserve and the amount in respect thereof); (Additions and deductions since last balance sheet to be shown under each of the specified heads) (ii) Retained Earnings represents surplus i.e. balance of the relevant column in the Statement of Changes in Equity; (iii) A reserve specifically represented by earmarked investments shall disclose the fact that it is so represented; (iv) Debit balance of Statement of Profit and Loss shall be shown as a negative figure under the head ‘retained earnings’. Similarly, the balance of ‘Other Equity’, after adjusting negative balance of retained earnings, if any, shall be shown under the head ‘Other Equity’ even if the resulting figure is in the negative; and (v) Under the sub-head ‘Other Equity’, disclosure shall be made for the nature and amount of each item. # E. Non-Current Liabilities I. Borrowings: (i) borrowings shall be classified as (a) Bonds or debentures (b) Term loans (I) from banks (II) from other parties (c) Deferred payment liabilities (d) Deposits (e) Loans from related parties 1*** (g) Liability component of compound financial instruments (h) Other loans (specify nature); (ii) borrowings shall further be sub-classified as secured and unsecured. Nature of security shall be specified separately in each case. (iii) where loans have been guaranteed by directors or others, the aggregate amount of such loans under each head shall be disclosed; (iv) bonds or debentures (along with the rate of interest, and particulars of redemption or conversion, as the case may be) shall be stated in descending order of maturity or conversion, starting from farthest redemption or conversion date, as the case may be. Where bonds/debentures are redeemable by installments, the date of maturity for this purpose must be reckoned as the date on which the first installment becomes due; (v) particulars of any redeemed bonds or debentures which the company has power to reissue shall be disclosed; (vi) terms of repayment of term loans and other loans shall be stated; and (vii) period and amount of default as on the balance sheet date in repayment of borrowings and interest shall be specified separately in each case. ----- II. Provisions: The amounts shall be classified as (a) Provision for employee benefits; and (b) Others (specify nature). III. Other non-current liabilities; (a) Advances; and (b) Others (specified nature). # F. Current Liabilities I. Borrowings: (i) Borrowings shall be classified as (a) Loans repayable on demand (I) from banks (II) from other parties (b) Loans from related parties (c) Deposits (d) Other loans (specify nature); (ii) borrowings shall further be sub-classified as secured and unsecured. Nature of security shall be specified separately in each case; (iii) where loans have been guaranteed by directors or others, the aggregate amount of such loans under each head shall be disclosed; (iv) period and amount of default as on the balance sheet date in repayment of borrowings and interest, shall be specified separately in each case. 1[(v) Current maturities of Long term borrowing shall be disclosed separately.] II. Other Financial Liabilities: Other Financial liabilities shall be classified as 2*** (c) Interest accrued; (d) Unpaid dividends; (e) Application money received for allotment of securities to the extent refundable and interest accrued thereon; (f) Unpaid matured deposits and interest accrued thereon; (g) Unpaid matured debentures and interest accrued thereon; and (h) Others (specify nature). ‘Long term debt’ is a borrowing having a period of more than twelve months at the time of origination III. Other current liabilities: The amounts shall be classified as (a) revenue received in advance; (b) other advances (specify nature); and (c) others (specify nature); ----- IV. Provisions: The amounts shall be classified as (i) provision for employee benefits; and (ii) others (specify nature). 1[FA. Trade Payables The following details relating to Micro, Small and Medium Enterprises shall be disclosed in the notes: (a) the principal amount and the interest due thereon (to be shown separately) remaining unpaid to any supplier at the end of each accounting year; (b) the amount of interest paid by the buyer in terms of section 16 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006), along with the amount of the payment made to the supplier beyond the appointed day during each accounting year; (c) the amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under the Micro, Small and Medium Enterprises Development Act, 2006; (d) the amount of interest accrued and remaining unpaid at the end of each accounting year; and (e) the amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues above are actually paid to the small enterprise, for the purpose of disallowance of a deductible expenditure under section 23 of the Micro, Small and Medium Enterprises Development Act, 2006. _Explanation.-The terms 'appointed day', 'buyer',' enterprise', 'micro enterprise', 'small enterprise' and 'supplier', shall have the same_ meaning assigned to those under clauses (b), (d), (e), (h), (m) and (n) respectively of section 2 of the Micro, Small and Medium Enterprises Development Act, 2006.] 2[FB. For trade payables due for payment, following ageing schedule shall be given: **Trade payable aging schedule** (Amount in Rs.) Particulars Outstanding for following periods from due date of payment# Less than 1 year 1-2 years 2-3 years More than 3 Total years (i) MSME (ii) Others (iii) Disputed dues- MSME (iv) Disputed dues- Others #similar information shall be given where no due date of payment is specified in that case disclosure shall be from the date of the transaction. Unbilled dues shall be disclosed separately] # G. The presentation of liabilities associated with group of assets classified as held for sale and non-current assets classified as held for sale shall be in accordance with the relevant Indian Accounting Standards (Ind ASs). # H. Contingent Liabilities and Commitments: (to the extent not provided for) (i) Contingent Liabilities shall be classified as (a) claims against the company not acknowledged as debt; (b) guarantees excluding financial guarantees; and (c) other money for which the company is contingently liable. 1 Ins by Notification No G S R 1022(E) dated 11th October 2018 (w e f 11 10 2018) |Particulars|Outstanding for following periods from due date of payment#|Col3|Col4|Col5|Col6| |---|---|---|---|---|---| ||Less than 1 year|1-2 years|2-3 years|More than 3 years|Total| |(i) MSME (ii) Others (iii) Disputed dues- MSME (iv) Disputed dues- Others|||||| ----- (ii) Commitments shall be classified as (a) estimated amount of contracts remaining to be executed on capital account and not provided for; (b) uncalled liability on shares and other investments partly paid; and (c) other commitments (specify nature). **I.** The amount of dividends proposed to be distributed to equity and preference shareholders for the period and the related amount per share shall be disclosed separately. Arrears of fixed cumulative dividends on irredeemable preference shares shall also be disclosed separately. **J.** Where in respect of an issue of securities made for a specific purpose the whole or part of amount has not been used for the specific purpose at the Balance Sheet date, there shall be indicated by way of note how such unutilised amounts have been used or invested. **1[JA. Where the company has not used the borrowings from banks and financial institutions for the specific purpose for which** it was taken at the balance sheet date, the company shall disclose the details of where they have been used.] **[2]*** ***** ***** ***** ***** [3][L. Additional Regulatory Information (i) Title deeds of Immovable Properties not held in name of the Company The company shall provide the details of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) whose title deeds are not held in the name of the company in following format and where such immovable property is jointly held with others, details are required to be given to the extent of the company’s share. Relevant line item Description Gross Title Whether title deed Property Reason for not being in the Balance of item of carrying deeds holder is a promoter, held held in the name of sheet property value held in director or relative# since the company** the name of promoter*/director which of or employee of date promoter/director PPE Land - - - - **also indicate if in dispute - Building Investment Land property - Building Non-current asset Land held for sale Building others #Relative here means relative as defined in the Companies Act, 2013. 1 Ins by Notification No G S R 207(E) dated 24th March 2021 (w e f 1-4-2021) |Relevant line item in the Balance sheet|Description of item of property|Gross carrying value|Title deeds held in the name of|Whether title deed holder is a promoter, director or relative# of promoter*/director or employee of promoter/director|Property held since which date|Reason for not being held in the name of the company**| |---|---|---|---|---|---|---| |PPE - Investment property|Land Building Land|-|-|-|-|**also indicate if in dispute| |- Non-current asset held for sale - others|Building Land Building|||||| ----- *Promoter here means promoter as defined in the Companies Act, 2013. (ii) The Company shall disclose as to whether the fair value of investment property (as measured for disclosure purposes in the financial statements) is based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. (iii) Where the Company has revalued its Property, Plant and Equipment (including Right-of-Use Assets), the company shall disclose as to whether the revaluation is based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. (iv)Where the company has revalued its intangible assets, the company shall disclose as to whether the revaluation is based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. (v) The following disclosures shall be made where Loans or Advances in the nature of loans are granted to promoters, director, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are: (a) repayable on demand; or (b) without specifying any terms or period of repayment, Type of Borrower Amount of loan or advance in the nature Percentage to the total Loans and of loan outstanding Advances in the nature of loans Promoter Directors KMPs Related Parties (vi) Capital-Work-in Progress (CWIP) **(a) For Capital-work-in progress, following ageing schedule shall be given:** **CWIP aging schedule** (Amount in Rs.) CWIP Amount in CWIP for a period of Total* Less than 1 year 1-2 years 2-3 years More than 3 years Projects in progress Projects temporarily suspended *Total shall tally with CWIP amount in the balance sheet. (b) For capital-work in progress, whose completion is overdue or has exceeded its cost compared to its original plan, following CWIP completion schedule shall be given**: (Amount in Rs.) CWIP To be completed in Less than 1 year 1-2 years 2-3 years More than 3 years |Type of Borrower|Amount of loan or advance in the nature of loan outstanding|Percentage to the total Loans and Advances in the nature of loans| |---|---|---| |Promoter||| |Directors||| |KMPs||| |Related Parties||| |CWIP|Amount in CWIP for a period of|Col3|Col4|Col5|Total*| |---|---|---|---|---|---| ||Less than 1 year|1-2 years|2-3 years|More than 3 years|| |Projects in progress Projects temporarily suspended|||||| ----- |Project 2”|Col2|Col3|Col4|Col5| |---|---|---|---|---| ** Details of projects where activity has been suspended shall be given separately. **(vii) Intangible assets under development:** (a) For Intangible assets under development, following ageing schedule shall be given: **Intangible assets under development aging schedule** (Amount in Rs.) Intangible assets Amount in CWIP for a period of Total* under development Less than 1 year 1-2 year 2-3 years More than 3 years Projects in progress Projects temporarily suspended *Total shall tally with the amount of Intangible assets under development in the balance sheet. (b) For Intangible assets under development, whose completion is overdue or has exceeded its cost compared to its original plan, the following Intangible assets under development completion schedule shall be given**: (Amount in Rs.) Intangible To be completed in assets under development Less than 1 year 1-2 years 2-3 years More than 3 years Project 1 Project 2” ** Details of projects where activity has been suspended shall be given separately. **(viii) Details of Benami Property held** Where any proceeding has been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder, the company shall disclose the following: (a) Details of such property, (b) Amount thereof, (c) Details of Beneficiaries, (d) If property is in the books, then reference to the item in the Balance Sheet, (e) If property is not in the books, then the fact shall be stated with reasons, (f) Where there are proceedings against the company under this law as an abetter of the transaction or as the transferor then the details shall be provided, (g) Nature of proceedings, status of same and company‘s view on same. (ix) where the Company has borrowings from banks or financial institutions on the basis of security of current assets it shall |Intangible assets under development|Amount in CWIP for a period of|Col3|Col4|Col5|Total*| |---|---|---|---|---|---| ||Less than 1 year|1-2 year|2-3 years|More than 3 years|| |Projects in progress Projects temporarily suspended|||||| |Intangible assets under development|To be completed in|Col3|Col4|Col5| |---|---|---|---|---| ||Less than 1 year|1-2 years|2-3 years|More than 3 years| |Project 1 Project 2”||||| ----- (a) whether quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts; (b) if not, summary of reconciliation and reasons of material discrepancies, if any to be adequately disclosed. **(x) Wilful Defaulter*** Where a company is a declared wilful defaulter by any bank or financial Institution or other lender, following details shall be given: (a) Date of declaration as willful defaulter, (b) Details of defaults (amount and nature of defaults) - wilful defaulter‖ here means a person or an issuer who or which is categorized as a willful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India. **(xi) Relationship with Struck off Companies** Where the company has any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956, the Company shall disclose the following details, namely: Name of struck off Nature of transactions with struck- Balance outstanding Relationship with the Struck off Company off Company company, if any, to be disclosed Investment in securities Receivables Payables Shares held by stuck off company Other outstanding balances (to be specified) **(xii) Registration of charges or satisfaction with Registrar of Companies (ROC)** Where any charges or satisfaction yet to be registered with ROC beyond the statutory period, details and reasons thereof shall be disclosed. **(xiii) Compliance with number of layers of companies** Where the company has not complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017, the name and CIN of the companies beyond the specified layers and the relationship or extent of holding of the company in such downstream companies shall be disclosed. **(xiv) Following Ratios to be disclosed:-** (a) Current Ratio, (b) Debt-Equity Ratio, (c) Debt Service Coverage Ratio, (d) Return on Equity Ratio, (e) Inventory turnover ratio, (f) Trade Receivables turnover ratio, (g) Trade payables turnover ratio, (h) Net capital turnover ratio, |Name of struck off Company|Nature of transactions with struck- off Company|Balance outstanding|Relationship with the Struck off company, if any, to be disclosed| |---|---|---|---| ||Investment in securities||| ||Receivables||| ||Payables||| ||Shares held by stuck off company||| ||Other outstanding balances (to be specified)||| ----- (j) Return on Capital employed, (k) Return on investment. The company shall explain the items included in numerator and denominator for computing the above ratios. Further explanation shall be provided for any change in the ratio by more than 25% as compared to the preceding year. **(xv) Compliance with approved Scheme(s) of Arrangements** Where the Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013, the company shall disclose that the effect of such Scheme of Arrangements have been accounted for in the books of account of the Company ‘in accordance with the Scheme’ and ‘in accordance with accounting standards’ and any deviation in this regard shall be explained. **(xvi) Utilisation of Borrowed funds and share premium:** (A) Where company has advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries; the company shall disclose the following: (I) date and amount of fund advanced or loaned or invested in Intermediaries with complete details of each Intermediary. (II) date and amount of fund further advanced or loaned or invested by such Intermediaries to other intermediaries or Ultimate Beneficiaries alongwith complete details of the ultimate beneficiaries. (III) date and amount of guarantee, security or the like provided to or on behalf of the Ultimate Beneficiaries (IV) declaration that relevant provisions of the Foreign Exchange Management Act, 1999 (42 of 1999) and Companies Act has been complied with for such transactions and the transactions are not violative of the Prevention of Money-Laundering act, 2002 (15 of 2003).; (B) Where a company has received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries, the company shall disclose the following: (I) date and amount of fund received from Funding parties with complete details of each Funding party. (II) date and amount of fund further advanced or loaned or invested other intermediaries or Ultimate Beneficiaries alongwith complete details of the other intermediaries‘ or ultimate beneficiaries. (III) date and amount of guarantee, security or the like provided to or on behalf of the Ultimate Beneficiaries (IV) declaration that relevant provisions of the Foreign Exchange Management Act, 1999 (42 of 1999) and Companies Act has been complied with for such transactions and the transactions are not violative of the Prevention of Money-Laundering act, 2002 (15 of 2003). 7. When a company applies an accounting policy retrospectively or makes a restatement of items in the financial statements or when it reclassifies items in its financial statements, the company shall attach to the Balance Sheet, a “Balance Sheet” as at the beginning of the earliest comparative period presented. 8. Share application money pending allotment shall be classified into equity or liability in accordance with relevant Indian Accounting Standards. Share application money to the extent not refundable shall be shown under the head Equity and share application money to the extent refundable shall be separately shown under ‘Other financial liabilities’. 9 Preference shares including premium received on issue shall be classified and presented as ‘Equity’ or ‘Liability’ in accordance ----- 1[plain vanilla], redeemable preference shares shall be classified and presented under ‘non-current liabilities’ as ‘borrowings’ and the disclosure requirements in this regard applicable to such borrowings shall be applicable mutatis mutandis to redeemable preference shares. 10. Compound financial instruments such as convertible debentures, where split into equity and liability components, as per the requirements of the relevant Indian Accounting Standards, shall be classified and presented under the relevant heads in ‘Equity’ and ‘Liabilities’ 11. Regulatory Deferral Account Balances shall be presented in the Balance Sheet in accordance with the relevant Indian Accounting Standards. _PART II – STATEMENT OF PROFIT AND LOSS_ _Name of the Company ..........................._ _Statement of Profit and Loss for the period ended ..............................._ (Rupees in ............... ) **Particulars** **Note No.** **Figures for** **Figures for** **the current** **the** **reporting** **previous** **period** **reporting** **period** I Revenue From Operations II Other Income III Total Income (I+II) IV **EXPENSES** Cost of materials consumed Purchases of Stock-in-Trade Changes in inventories of finished goods, Stock-in -Trade and work-in-progress Employee benefits expense Finance costs Depreciation and amortization expense Other expenses Total expenses (IV) V Profit/(loss) before exceptional items and tax (I- IV) VI Exceptional Items VII Profit/(loss) before tax (V-VI) VIII Tax expense: (1) Current tax (2) Deferred tax IX Profit (Loss) for the period from continuing operations (VII-VIII) X Profit/(loss) from discontinued operations XI Tax expense of discontinued operations XII Profit/(loss) from Discontinued operations (after tax) (X-XI) |Col1|Particulars|Note No.|Col4|Figures for the current reporting period|Col6|Figures for the previous reporting period| |---|---|---|---|---|---|---| |I|Revenue From Operations|||||| |II|Other Income|||||| |III|Total Income (I+II)|||||| |IV|EXPENSES Cost of materials consumed|||||| ||Purchases of Stock-in-Trade|||||| ||Changes in inventories of finished goods, Stock-in -Trade and work-in-progress|||||| ||Employee benefits expense|||||| ||Finance costs|||||| ||Depreciation and amortization expense|||||| ||Other expenses|||||| ||Total expenses (IV)|||||| |V|Profit/(loss) before exceptional items and tax (I- IV)|||||| |VI|Exceptional Items|||||| |VII|Profit/(loss) before tax (V-VI)|||||| |VIII|Tax expense: (1) Current tax (2) Deferred tax|||||| |IX|Profit (Loss) for the period from continuing operations (VII-VIII)|||||| |X|Profit/(loss) from discontinued operations|||||| |XI|Tax expense of discontinued operations|||||| ----- |XIII|Profit/(loss) for the period (IX+XII)|Col3|Col4|Col5|Col6|Col7| |---|---|---|---|---|---|---| |XIV|Other Comprehensive Income A (i) Items that will not be reclassified to profit or loss (ii) Income tax relating to items that will not be reclassified to profit or loss B (i) Items that will be reclassified to profit or loss (ii) Income tax relating to items that will be reclassified to profit or loss|||||| |XV|Total Comprehensive Income for the period (XIII+XIV)(Comprising Profit (Loss) and Other Comprehensive Income for the period)|||||| |XVI|Earnings per equity share (for continuing operation): (1) Basic (2) Diluted|||||| |XVII|Earnings per equity share (for discontinued operation): (1) Basic (2) Diluted|||||| |XVIII|Earnings per equity share(for discontinued & continuing operations) (1) Basic (2) Diluted|||||| **See accompanying notes to the financial statements** **_Notes:_** **_GENERAL INSTRUCTIONS FOR PREPARATION OF STATEMENT OF PROFIT AND LOSS_** 1. The provisions of this Part shall apply to the income and expenditure account, in like manner as they apply to a Statement of Profit and Loss. 2. The Statement of Profit and Loss shall include: (1) Profit or loss for the period; (2) Other Comprehensive Income for the period. The sum of (1) and (2) above is ‘Total Comprehensive Income’. 3. Revenue from operations shall disclose separately in the notes (a) sale of products (including Excise Duty); (b) sale of services; [1]*** 2[(ba) Grants or donations received (relevant in case of section 8 companies only); and] (c) other operating revenues. 4. Finance Costs: Finance costs shall be classified as (a) interest; (b) dividend on redeemable preference shares; (c) exchange differences regarded as an adjustment to borrowing costs; and (d) other borrowing costs (specify nature). 5 Other income: Other income shall be classified as ----- (a) interest Income; (b) dividend Income; and (c) other non-operating income (net of expenses directly attributable to such income). 6. Other Comprehensive Income shall be classified into (A) Items that will not be reclassified to profit or loss (i) Changes in revaluation surplus; (ii) Remeasurements of the defined benefit plans; (iii) Equity Instruments through Other Comprehensive Income; (iv) Fair value changes relating to own credit risk of financial liabilities designated at fair value through profit or loss; (v) Share of Other Comprehensive Income in Associates and Joint Ventures, to the extent not to be classified into profit or loss; and (vi) Others (specify nature). (B) Items that will be reclassified to profit or loss; (i) Exchange differences in translating the financial statements of a foreign operation; (ii) Debt Instruments through Other Comprehensive Income; (iii) The effective portion of gains and loss on hedging instruments in a cash flow hedge; (iv) Share of Other Comprehensive Income in Associates and Joint Ventures, to the extent to be classified into profit or loss; and (v) Others (specify nature). 7. Additional Information: A Company shall disclose by way of notes, additional information regarding aggregate expenditure and income on the following items: (a) employee Benefits expense [showing separately (i) salaries and wages, (ii) contribution to provident and other funds, (iii) share based payments to employees, (iv) staff welfare expenses]. (b) depreciation and amortisation expense; (c) any item of income or expenditure which exceeds one per cent of the revenue from operations or Rs.10,00,000, whichever is higher, in addition to the consideration of ‘materiality’ as specified in clause 7 of the General Instructions for Preparation of Financial Statements of a Company; (d) interest Income; (e) interest Expense; (f) dividend income; (g) net gain or loss on sale of investments; (h) net gain or loss on foreign currency transaction and translation (other than considered as finance cost); (i) payments to the auditor as (a) auditor, (b) for taxation matters, (c) for company law matters, (d) for other services, (e) for reimbursement of expenses; (j) in case of companies covered under section 135, amount of expenditure incurred on corporate social responsibility activities; and (k) d t il f it f ti l t ----- 1[(l) Undisclosed income The Company shall give details of any transaction not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961), unless there is immunity for disclosure under any scheme and shall also state whether the previously unrecorded income and related assets have been properly recorded in the books of account during the year. (m) Corporate Social Responsibility (CSR) Where the company covered under section 135 of the Companies Act, the following shall be disclosed with regard to CSR activities: (i) amount required to be spent by the company during the year, (ii) amount of expenditure incurred, (iii) shortfall at the end of the year, (iv) total of previous years shortfall, (v) reason for shortfall, (vi) nature of CSR activities, (vii) details of related party transactions, e.g., contribution to a trust controlled by the company in relation to CSR expenditure as per relevant Accounting Standard, (viii) where a provision is made with respect to a liability incurred by entering into a contractual obligation, the movements in the provision during the year shall be shown separately. (n) details of Crypto Currency or Virtual Currency Where the Company has traded or invested in Crypto currency or Virtual Currency during the financial year, the following shall be disclosed: (i) profit or loss on transactions involving Crypto currency or Virtual Currency, (ii) amount of currency held as at the reporting date, (iii) deposits or advances from any person for the purpose of trading or investing in Crypto Currency or virtual currency.] 8. Changes in Regulatory Deferral Account Balances shall be presented in the Statement of Profit and Loss in accordance with the relevant Indian Accounting Standards. **_PART III- GENERAL INSTRUCTIONS FOR THE PREPARATION OF CONSOLIDATED FINANCIAL_** **_STATEMENTS_** 1. Where a company is required to prepare Consolidated Financial Statements, i.e., consolidated balance sheet, consolidated statement of changes in equity and consolidated statement of profit and loss, the company shall mutatis _mutandis follow the requirements of this Schedule as applicable to a company in the preparation of balance sheet,_ statement of changes in equity and statement of profit and loss. In addition, the consolidated financial statements shall disclose the information as per the requirements specified in the applicable Indian Accounting Standards notified under the Companies (Indian Accounting Standards) Rules 2015, including the following, namely: (i) Profit or loss attributable to ‘non-controlling interest’ and to ‘owners of the parent’ in the statement of profit and loss shall be presented as allocation for the period. Further, ‘total comprehensive income’ for the period attributable to ‘non-controlling interest’ and to ‘owners of the parent’ shall be presented in the statement of profit and loss as allocation for the period. The aforesaid disclosures for ‘total comprehensive income’ shall also be made in the statement of changes in equity. In addition to the disclosure requirements in the Indian Accounting Standards, the aforesaid disclosures shall also be made in respect of ‘other comprehensive income’. (ii) ‘Non-controlling interests’ in the Balance Sheet and in the Statement of Changes in Equity, within equity, shall be presented separately from the equity of the ‘owners of the parent’. (iii) Investments accounted for using the equity method. ----- 2. In Consolidated Financial Statements, the following shall be disclosed by way of additional information: **Name of the entity in the** **Net Assets, i.e., total** **Share in profit or** **Share** **in** **other** **Share** **in** **total** **Group** **loss** **assets minus total** **comprehensive** **comprehensive** **liabilities** **income** **income** Amount As % of Amount As % of Amount As % of Amount As % of total comprehensi consolidate consolidate consolidated ve income d net assets d profit or other loss comprehensi ve income Parent Subsidiaries Indian 1. 2. 3. . . Foreign 1. 2. 3. . . Non-controlling Interests in all subsidiaries Associates (Investment as per the equity method) Indian |Name of the entity in the Group|Net Assets, i.e., total assets minus total|Col3|Share in profit or loss|Col5|Share in other comprehensive income|Col7|Share in total comprehensive income|Col9| |---|---|---|---|---|---|---|---|---| ||liabilities As % of consolidate d net assets|Amount||||||| ||||As % of consolidate d profit or|Amount|As % of consolidated other|Amount|As % of total comprehensi ve income|Amount| |Parent Subsidiaries Indian 1. 2. 3. . . Foreign 1. 2. 3. . . Non-controlling Interests in all|||loss||comprehensi ve income|||| ----- |Foreign 1. 2. 3. . . Joint Ventures (investment as per the equity method) Indian 1. 2. 3. . . Foreign 1. 2. 3. . .|Col2|Col3|Col4|Col5|Col6|Col7|Col8|Col9| |---|---|---|---|---|---|---|---|---| |Total||||||||| 3. All subsidiaries, associates and joint ventures (whether Indian or foreign) will be covered under consolidated financial statements. 4. An entity shall disclose the list of subsidiaries or associates or joint ventures which have not been consolidated in the consolidated financial statements along with the reasons of not consolidating.] **1[Division III** Financial Statements for a Non-Banking Financial Company (NBFC) whose financial statements are drawn up in compliance of the Companies (Indian Accounting Standards) Rules, 2015. **_GENERAL INSTURCTIONS FOR PREPARATION OF FINANCIAL STATEMENTS OF A NON-BANKING_** **_FINANCIAL COMPANY (NBFC) THAT IS REQUIRED TO COMPLY WITH INDIAN ACCOUNTING STAND-_** **_ARDS (Ind AS)_** 1. Every Non-Banking Financial company as defined in the Companies (Indian Accounting Standards) (Amend ment) Rules, 2016 to which Indian Accounting Standards apply, shall prepare its financial statements in accordance with this Schedule or with such modification as may be required under certain circumstances. 2. Where compliance with the requirements of relevant Act, Regulations, Guidelines or Circulars issued by the relevant regulator from time to time including Indian Accounting Standards (Ind AS) (except the option of presenting assets and liabilities in accordance with current, non-current classification as provided by relevant Ind AS) as applicable to the NBFCs require any change in treatment or disclosure including addition, amendment, substitution or deletion in the head or sub-head or any changes inter se, in the financial statements or statements forming part thereof, the same shall be made and the requirements under this Schedule shall stand modified accordingly. 3. The disclosure requirements specified in this Schedule are in addition to and not in substitution of the disclosure requirements specified in the Indian Accounting Standards. Additional disclosures specified in the Indian Accounting Standards shall be made in the Notes or by way of additional statement or statements unless required to be disclosed on the face of the Financial Statements. Similarly, all other disclosures as required by the Companies Act, 2013 shall be made in the Notes in addition to the requirements set out in this Schedule. ----- 4. (i) Notes shall contain information in addition to that presented in the Financial Statements and shall provide where required (a) narrative descriptions or disaggregations of items recognised in those statements; and (b) information about items that do not qualify for recognition in those statements. (ii) Each item on the face of the Balance Sheet, Statement of Changes in Equity and Statement of Profit and Loss shall be cross-referenced to any related information in the Notes. In preparing the Financial Statements including the Notes, a balance shall be maintained between providing excessive details that may not assist users of Financial Statements and not providing important information as a result of too much aggregation. 5. Depending upon the total income of the NBFC, the figures appearing in the Financial Statements shall be rounded off as below: Total Income Rounding off (i) less than one hundred crore rupees To the nearest hundreds, thousands, lakhs or millions, or decimals thereof. (ii) one hundred crore rupees or more To the nearest, lakhs, millions or crores, or decimals thereof. Once a unit of measurement is used, it should be used uniformly in the Financial Statements. 6. Financial Statements shall contain the corresponding amounts (comparatives) for the immediately preceding reporting period for all items shown in the Financial Statements including Notes except in the case of first Financial Statements after incorporation. 7. Financial Statements shall disclose all ‘material’ items, i.e., the items if they could, individually or collectively, influence the economic decisions that users make on the basis of the financial statements. Materiality depends on the size or nature of the item or a combination of both, to be judged in the particular circumstances. 8. For the purpose of this Schedule, the terms used herein shall have the same meanings assigned to them in Indian Accounting Standards. 9. Where any Act, Regulation, Guidelines or Circulars issued by the relevant regulators from time to time requires specific disclosures to be made in the standalone financial statements of an NBFC, the said disclosures shall be made in addition to those required under this Schedule. 10. The NBFCs preparing financial statements as per this Schedule may change the order of presentation of line items on the face of financial statements or order of line items within the schedules in order of liquidity, if appropriate, considering the operations performed by the NBFC. **Note: This Schedule sets out the minimum requirements for disclosure on the face of the Financial Statements, i.e., Balance** Sheet, Statement of Changes in Equity for the period, the Statement of Profit and Loss for the period (The term ‘Statement of Profit and Loss’ has the same meaning as ‘Profit and Loss Account’) and Notes. Cash flow statement shall be prepared, where applicable, in accordance with the requirements of the relevant Indian Accounting Standard. Line items, sub-line items and sub-totals shall be presented as an addition or substitution on the face of the Financial Statements when such presentation is relevant to an understanding of the NBFC’s financial position or performance or to cater to categories of NBFCs as prescribed by the relevant regulator or sector-specific disclosure requirements or when required for compliance with the amendments to the relevant statutes or under the Indian Accounting Standards. |Total Income|Rounding off| |---|---| |(i) less than one hundred crore rupees|To the nearest hundreds, thousands, lakhs or millions, or decimals thereof.| |(ii) one hundred crore rupees or more|To the nearest, lakhs, millions or crores, or decimals thereof.| ----- **_PART I –BALANCE SHEET_** _Name of the Non-Banking Financial Company……………………._ _Balance Sheet as at ………………………_ |Col1|Particulars|Note No.|Figures as at the end of current reporting period|Figures as at the end of the previous reporting period| |---|---|---|---|---| ||1||2|3| ||ASSETS|||| |(1)|Financial Assets|||| |(a)|Cash and cash equivalents|||| |(b)|Bank Balance other than (a) above|||| |(c)|Derivative financial instruments|||| |(d)|Receivables|||| ||(I) Trade Receivables|||| ||(II) Other Receivables|||| |(e)|Loans|||| |(f)|Investments|||| |(g)|Other Financial assets (to be specified)|||| |||||| |(2)|Non-financial Assets|||| |(a)|Inventories|||| |(b)|Current tax assets (Net)|||| |(c)|Deferred tax Assets (Net)|||| |(d)|Investment Property|||| |(e)|Biological assets other than bearer plants|||| |(f)|Property, Plant and Equipment|||| |(g)|Capital work-in-progress|||| |(h)|Intangible assets under development|||| |(i)|Goodwill|||| |(j)|Other Intangible assets|||| |(k)|Other non-financial assets (to be specified)|||| ||Total Assets|||| ----- **Total Liabilities and** **Equity** **See accompanying notes to the financial statements** **1[STATEMENT OF CHANGES IN EQUITY** _Name of the Company……………………._ A. Equity Share Capital (1) Current reporting period |Col1|LIABILITIES AND EQUITY|Col3|Col4|Col5| |---|---|---|---|---| ||LIABILITIES|||| |(1)|Financial Liabilities|||| |(a)|Derivative financial instruments|||| |(b)|Payables|||| ||(I)Trade Payables|||| ||(i) total outstanding dues of micro enterprises and small enterprises|||| ||(ii) total outstanding dues of creditors other than micro enterprises and small enterprises|||| ||(II) Other Payables|||| ||(i) total outstanding dues of micro enterprises and small enterprises|||| ||(ii) total outstanding dues of creditors other than micro enterprises and small enterprises|||| |(c)|Debt Securities|||| |(d)|Borrowings (Other than Debt Securities)|||| |(e)|Deposits|||| |(f)|Subordinated Liabilities|||| |(g)|Other financial liabilities(to be specified)|||| |(2)|Non-Financial Liabilities|||| |(a)|Current tax liabilities (Net)|||| |(b)|Provisions|||| |(c)|Deferred tax liabilities (Net)|||| |(d)|Other non-financial liabilities(to be specified)|||| |||||| |(3)|EQUITY|||| |(a)|Equity Share capital|||| |(b)|Other Equity|||| ||Total Liabilities and Equity|||| Balance at the end of the Current reporting period |Balance at the beginning of the current reporting period|Changes in Equity Shares Capital due to prior period errors|Restated balance at the beginning of the current reporting period|Changes in equity share capital during the current year|Balance at the end of the Current reporting period| |---|---|---|---|---| |||||| ----- (2) Previous reporting period Balance at the beginning of the previous reporting period period errors B. Other Equity (1) Current reporting period Share Equity application Component Money of pending compound allotment financial instruments Balance at the beginning of the current reporting period Changes in accounting Policy/prior Period errors Restated balance at the beginning of the current reporting period Total Comprehensive Income for the current year Dividends Transfer to retained earnings Any other Change (to be specified) Balance at the end of the current Reporting period (2) Previous reporting period Share Equity application Component Money of pending compound allotment financial instruments Balance at the beginning of the previous reporting period Changes in accounting policy/prior Period errors Restated balance at the beginning of the previous reporting period T t l |Balance at the beginning of the previous reporting period|Changes in Equity Shares Capital due to prior period errors|Restated balance at the beginning of the previous reporting period|Changes in equity share capital during the previous year|Balance at the end of the previous reporting period| |---|---|---|---|---| |||||| |Col1|Share application Money pending allotment|Equity Component of compound financial instruments|Reserves and Surplus|Col5|Col6|Col7|Col8|Col9|Col10|Col11|Col12|Col13|Money received against share warrants|Total| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| ||||Capital Reserve|Securities Premium|Other Reserves (specify nature)|Retained Earnings|Debt instrument through Other Comprehens ive Income|Equity Instruments through Other Comprehens ive Income|Effective Portion of Cash Flow Hedges|Revaluati on Surplus|Exchange Differences On translating the financial statements of a foreign|Other items of other Compreh ensive Income (specify nature)||| |Balance at the beginning of the current reporting period||||||||||||||| |Changes in accounting Policy/prior Period errors||||||||||||||| |Restated balance at the beginning of the current reporting period||||||||||||||| |Total Comprehensive Income for the current year||||||||||||||| |Dividends||||||||||||||| |Transfer to retained earnings||||||||||||||| |Any other Change (to be specified)||||||||||||||| |Balance at the end of the current Reporting period||||||||||||||| |Col1|Share application Money pending allotment|Equity Component of compound financial instruments|Reserves and Surplus|Col5|Col6|Col7|Col8|Col9|Col10|Col11|Col12|Col13|Money received against share warrants|Total| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| ||||Capital Reserve|Securities Premium|Other Reserves (specify nature)|Retained Earnings|Debt instrument through Other Comprehens ive Income|Equity Instruments through Other Comprehens ive Income|Effective Portion of Cash Flow Hedges|Revaluati on Surplus|Exchange Differences On translating the financial statements of a foreign|Other items of other Compreh ensive Income (specify nature)||| |Balance at the beginning of the previous reporting period||||||||||||||| |Changes in accounting policy/prior Period errors||||||||||||||| |Restated balance at the beginning of the previous reporting period||||||||||||||| ----- |Income for the previous year|Col2|Col3|Col4|Col5|Col6|Col7|Col8|Col9|Col10|Col11|Col12|Col13|Col14|Col15| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| |Dividends||||||||||||||| |Transfer to retained earnings||||||||||||||| |Any other change (to be specified)||||||||||||||| |Balance at the end of the previous reporting period||||||||||||||| Note: Remeasurement of defined benefit plans and fair value changes relating to own credit risk of financial liabilities designated at fair value through profit or loss shall be recognised as a part of retained earnings with separate disclosure of such items alongwith the relevant amounts in the Notes or shall be shown as a separate column under Reserves and Surplus.] **_Notes_** **_GENERAL INSTRUCTIONS FOR PREPARATION OF BALANCE SHEET_** A Non-Banking Financial company shall disclose the following in the notes to accounts: **(A)** **Cash and cash equivalents: Cash and cash equivalents shall be classified as:** (i) Cash on hand (ii) Balances with Banks (of the nature of cash and cash equivalents); (iii) Cheques, drafts on hand; and (iv) Others (specify nature). **Cash and Bank balances: The following disclosures with regard to cash and bank balances shall be made:** (i) Earmarked balances with banks (for example, for unpaid dividend) shall be separately stated. (ii) Balances with banks to the extent held as margin money or security against the borrowings, guarantees, other commitments shall be disclosed separately. (iii) Repatriation restrictions, if any, in respect of cash and bank balances shall be separately stated. **(B)** **Derivative financial Instruments** _1_ _Explain use of derivatives_ _2_ _Cross-reference to Financial Risks section for management of risks arising from derivatives_ **(Current Year)** **(Previous Year)** **Part I** **Notional amounts** **Fair Value -** **Fair Value -** **Notional amounts** **Fair Value -** **Fair Value -** **Assets** **Liabilities** **Assets** **Liabilities** **(i)Currency** **derivatives:** -Spot and forwards -Currency Futures -Currency swaps -Options purchased -Options sold (written) -Others **Sub total (i)** **(ii)Interest rate** **derivatives** -Forward Rate Agreements and Interest Rate Swaps |Part I|(Current Year)|Col3|Col4|(Previous Year)|Col6|Col7| |---|---|---|---|---|---|---| ||Notional amounts|Fair Value - Assets|Fair Value - Liabilities|Notional amounts|Fair Value - Assets|Fair Value - Liabilities| |(i)Currency derivatives:||||||| |-Spot and forwards||||||| |-Currency Futures||||||| |-Currency swaps||||||| |-Options purchased||||||| |-Options sold (written)||||||| |-Others||||||| |Sub total (i)||||||| |||||||| |(ii)Interest rate derivatives||||||| ----- |-Options sold (written)|Col2|Col3|Col4|Col5|Col6|Col7| |---|---|---|---|---|---|---| |-Futures||||||| |-Others||||||| |Subtotal(ii)||||||| |(iii)Credit derivatives||||||| |(iv) Equity linked derivatives||||||| |(v) Other derivatives (Please specify)||||||| |||||||| |Total Derivative Financial Instruments (i)+(ii)+(iii)+(iv)+(v)||||||| |Part II||||||| |||||||| |Included in above (Part I) are derivatives held for hedging and risk management purposes as follows:||||||| |(i)Fair value hedging:||||||| |- Currency derivatives||||||| |- Interest rate derivatives||||||| |- Credit derivatives||||||| |- Equity linked derivatives||||||| |- Others||||||| |Sub total (i)||||||| |(ii)Cash flow hedging:||||||| |- Currency derivatives||||||| |- Interest rate derivatives||||||| |- Credit derivatives||||||| - Equity linked derivatives ----- - Others Sub total (ii) (iii)Net investment hedging: (iv) Undesignated Derivatives Total Derivative Financial Instruments (i)+ (ii)+(iii)+(iv) With respect to hedges and hedge accounting, NBFCs may provide a description in accordance with the requirements of Indian Accounting Standards, of how derivatives are used for hedging, explain types of hedges recognized for accounting purposes and their usage/application by the entity. **(C)** **Receivables:** (i) Receivables shall be sub-classified as: (a) Receivables considered good - Secured; (b) Receivables considered good - Unsecured; (c) Receivables which have significant increase in Credit Risk; and (d) Receivables - credit impaired (ii) Allowance for impairment loss allowance shall be disclosed under the relevant heads separately. (iii) Debts due by directors or other officers of the NBFC or any of them either severally or jointly with any other person or debts due by firms including limited liability partnerships (LLPs), private companies respectively in which any director is a partner or a director or a member should be separately stated. 1[(iv) For trade receivable outstanding, following ageing schedule shall be given: **Trade Receivables aging schedule** (Amount in Rs.) |- Others|Col2|Col3|Col4|Col5|Col6|Col7| |---|---|---|---|---|---|---| |Sub total (ii)||||||| |(iii)Net investment hedging:||||||| |(iv) Undesignated Derivatives||||||| |Total Derivative Financial Instruments (i)+ (ii)+(iii)+(iv)||||||| |Particulars|Outstanding for following periods from due date of payment#|Col3|Col4|Col5|Col6|Col7| |---|---|---|---|---|---|---| ||Less than 6 months|6 months - 1 year|1-2 years|2-3 years|More than 3 years|Total| |(i) Undisputed Trade receivables - Considered good (ii) Undisputed Trade Receivable – which have significant increase in credit risk (iii) Undisputed Trade Receivables – credit Impaired (iv) Disputed Trade Receivables-considered good (v)Disputed Trade Receivables- which have significant increase in credit risk (vi) Disputed Trade Receivables – credit impaired||||||| ----- #similar information shall be given where no due date of payment is specified in that case disclosure shall be from the date of the transaction. Unbilled dues shall be disclosed separately] **(D)** **Loans** |Col1|(Current Year)|Col3|Col4|Col5|Col6|Col7|(Previous Year)|Col9|Col10|Col11|Col12|Col13| |---|---|---|---|---|---|---|---|---|---|---|---|---| ||Amor- tised cost|At Fair Value|||Sub total|Total|Amor- tised cost|At Fair Value|||Sub total|Total| |||Through Other Compre- hensive Income|Through profit or loss|Designat- ed at fair value through profit or loss||||Through Other Comprehen- sive Income|Through profit or loss|Designat- ed at fair value through profit or loss||| ||(1)|(2)|(3)|(4)|(5=2+ 3+4)|(6=1 + 5)|(7)|(8)|(9)|(10)|(11=8+ 9+10)|(12=(7) + (11)| |Loans||||||||||||| |(A) (i) Bills Purchased and Bills Discounted||||||||||||| |(ii) Loans repayable on Demand||||||||||||| |(iii) Term Loans||||||||||||| |(iv) Leasing||||||||||||| |(v) Factoring||||||||||||| |(vi) Others (to be specified)||||||||||||| |Total (A) -Gross||||||||||||| |Less: Impairment loss allowance||||||||||||| |Total (A) - Net||||||||||||| |||||||||||||| |(B) (i) Secured by tangible assets||||||||||||| |(ii)Secured by intangible assets||||||||||||| |(iii) Covered by Bank/Government Guarantees||||||||||||| |(iv) Unsecured||||||||||||| |Total (B)-Gross||||||||||||| |Less: Impairment loss allowance||||||||||||| |Total (B)-Net||||||||||||| |(C) (I) Loans in India||||||||||||| |(i) Public Sector||||||||||||| |(ii) Others (to be specified)||||||||||||| |Total (C)- Gross||||||||||||| |Less: Impairment loss allowance||||||||||||| |Total(C) (I)-Net||||||||||||| |(C) (II)Loans outside India||||||||||||| |Less: Impairment||||||||||||| |loss allowance||||||||||||| ----- **(E)** **Investments** **Investments** **Amor-** **tised** **Invest-** **cost** **vest- ments** **(1)** **(2)** Mutual funds Government securi- ties Other approved securi- ties Debt securi- ties Equity instruments Subsidiaries Associates Joint Ventures Others (specify) **Total –** **Gross (A)** (i) Investments outside India (ii) Investments in India **Total (B)** Total (A) to tally with (B) Less: Allowance for Impair- pairment loss (C) Total – Net D= (A)-(C) |Investments|Col2|Col3|Col4|Col5|Col6|Col7|Col8|Col9|Col10|Col11|Col12|Col13|Col14|Col15| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| |Invest- vest- ments|(Current Year)|||||||(Previous Year)||||||| ||Amor- tised cost|At Fair Value|||Sub- Total|Oth- ers*|Total|Amor- tised cost|At Fair Value|||Sub-Total|Oth- ers*|Total| |||Through Other Compre- hensive Income|Thro ugh profit or loss|Desig- nated at fair value through profit or loss|||||Through Other Compre- hensive Income|Thro ugh profit or loss|Desig- nated at fair value throug h profit or loss|||| ||(1)|(2)|(3)|(4)|(5)=(2)+ (3)+(4)|(6)|(7)=(1) + (5)+(6)|(8)|(9)|(10)|(11)|(12)=(9)+ (10)+(11)|(13)|(14)=(8)+ (12)+(13)| |Mutual funds||||||||||||||| |Gov- ernment securi- ties||||||||||||||| |Other ap- proved securi- ties||||||||||||||| |Debt securi- ties||||||||||||||| |Equity instru- ments||||||||||||||| |Subsid- iaries||||||||||||||| |Associates||||||||||||||| |Joint Ven- tures||||||||||||||| |Others (specify)||||||||||||||| |Total – Gross (A)||||||||||||||| |(i) Invest- ments outside India||||||||||||||| |(ii) Invest- ments in India||||||||||||||| |Total (B)||||||||||||||| |Total (A) to tally with (B)||||||||||||||| |Less: Allow- ance for Impair- pair- ment loss (C)||||||||||||||| ----- - Other basis of measurement such as cost may be explained as a footnote **(F)** **Investment Property** A reconciliation of the gross and net carrying amounts of each class of property at the beginning and end of the reporting period showing additions, disposals, acquisitions through business combinations and other adjustments and the related depreciation and impairment losses or reversals shall be disclosed separately. **(G)** **Biological Assets other than bearer plants:** A reconciliation of the carrying amounts of each class of assets at the beginning and end of the reporting period showing additions, disposals, acquisitions through business combinations and other adjustments shall be disclosed separately. **(H)** **Property, Plant and Equipment** (i) Classification shall be given as: (a) Land (b) Buildings (c) Plant and Equipment (d) Furniture and Fixtures (e) Vehicles (f) Office equipment (g) Bearer Plants (h) Others (specify nature) (ii) Assets under lease shall be separately specified under each class of asset. 1[(iii) reconciliation of the gross and net carrying amounts of each class of assets at the beginning and end of the reporting period showing additions, disposals, acquisitions through business combinations, amount of change due to revaluation (if change is 10% or more in the aggregate of the net carrying value of each class of Property, Plant and Equipment) and other adjustments and the related depreciation and impairment losses or reversals shall be disclosed separately.] **(I)** **Goodwill** A reconciliation of the gross and net carrying amount of goodwill at the beginning and end of the reporting period showing additions, impairments, disposals and other adjustments. **(J)** **Other Intangible assets** (iii) Classification shall be given as: (a) Brands or trademarks (b) Computer software (c) Mastheads and publishing titles (d) Mining rights (e) Copyrights, patents, other intellectual property rights, services and operating rights (f) Recipes, formulae, models, designs and prototypes (g) Licenses and franchises (h) Others (specify nature 2[(ii) A reconciliation of the gross and net carrying amounts of each class of assets at the beginning and end of the reporting period showing additions, disposals, acquisitions through business combinations, amount of change due to revaluation (if change is 10% or more in the aggregate of the net carrying value of each class of intangible assets) and other adjustments and the related amortization and impairment losses or reversals shall be disclosed separately.] **(K)** **Payables** The following details relating to Micro, Small and Medium Enterprises shall be disclosed: (a) the principal amount and the interest due thereon (to be shown separately) remaining unpaid to any supplier at the ----- end of each accounting year; (b) the amount of interest paid by the buyer in terms of section 16 of the Micro, Small and Medium Enterprises Development Act, 2006, along with the amount of the payment made to the supplier beyond the appointed day during each accounting year; (c) the amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under the Micro, Small and Medium Enterprises Development Act, 2006; (d) the amount of interest accrued and remaining unpaid at the end of each accounting year; and (e) the amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues above are actually paid to the small enterprise, for the purpose of disallowance of a deductible expenditure under section 23 of the Micro, Small and Medium Enterprises Development Act, 2006. _Explanation.— The terms ‘appointed day’, ‘buyer’, ‘enterprise’, ‘micro enterprise’, ‘small enterprise’ and ‘supplier’,_ shall have the same meaning assigned to those under clauses (b), (d), (e), (h), (m) and (n) respectively of section 2 of the Micro, Small and Medium Enterprises Development Act, 2006.” 1[(KA) For trade payables due for payment, following ageing schedule shall be given: **Trade Payables aging schedule** (Amount in Rs.) Particulars Outstanding for following periods from due date of payment# Less 1-2 years 2-3 years More than 3 Total than 1 years year (i) MSME (ii) Others (iii) Disputed duesMSME (iv) Disputed duesOthers #similar information shall be given where no due date of payment is specified in that case disclosure shall be from the date of the transaction. Unbilled dues shall be disclosed separately] **(L)** **Debt Securities** **(Current Year)** **(Previous Year)** **At Amortised** **At** **Fair** **Designated at** **Total** **At Amortised** **At** **Fair** **Designated at** **Total** **Cost** **Value** **fair value** **Cost** **Value** **fair value** **Through** **through profit** **Through** **through profit** **profit** **or** **or loss** **profit** **or** **or loss** **loss** **loss** (1) (2) (3) (4)=(1)+(2)+(3) (5) (6) (7) (8)=(5)+(6)+(7) |Particulars|Outstanding for following periods from due date of payment#|Col3|Col4|Col5|Col6| |---|---|---|---|---|---| ||Less than 1 year|1-2 years|2-3 years|More than 3 years|Total| |(i) MSME (ii) Others (iii) Disputed dues- MSME (iv) Disputed dues- Others|||||| |Col1|(Current Year)|Col3|Col4|Col5|(Previous Year)|Col7|Col8|Col9| |---|---|---|---|---|---|---|---|---| ||At Amortised Cost|At Fair Value Through profit or loss|Designated at fair value through profit or loss|Total|At Amortised Cost|At Fair Value Through profit or loss|Designated at fair value through profit or loss|Total| ||(1)|(2)|(3)|(4)=(1)+(2)+(3)|(5)|(6)|(7)|(8)=(5)+(6)+(7)| |Liability component of compound financial instruments||||||||| |Others (Bonds/ Debenture etc.)||||||||| |Total (A)||||||||| |Debt securities in India||||||||| |Debt securities outside India||||||||| ----- |Total (B) to tally with (A)|Col2|Col3|Col4|Col5|Col6|Col7|Col8|Col9| |---|---|---|---|---|---|---|---|---| (i) bonds or debentures (along with the rate of interest, and particulars of redemption or conversion, as the case may be) shall be stated in descending order of maturity or conversion, starting from earliest redemp- tion or conversion date, as the case may be. Where bonds/debentures are redeemable by installments, the date of maturity for this purpose must be reckoned as the date on which the first installment becomes due; (ii) particulars of any redeemed bonds or debentures which the NBFC has power to reissue shall be disclosed. **(M)** **Borrowings (Other than Debt Securities)** **(Current Year)** **(Previous Year)** **At** **At fair value** **Designated at** **Total** **At** **At fair value** **Designated at** **Total** **Amortised** **Through** **fair** **value** **Amortised** **Through** **fair** **value** **Cost** **profit or loss** **through profit** **Cost** **profit or loss** **through profit** **or loss** **or loss** **(1)** **(2)** **(3)** **(4)=(1)+(2)+(3) (1)** **(2)** **(3)** **(4)=(1)+(2)+(3)** (a)Term loans (i)from banks (ii)from other parties (b)Deferred payment liabilities (c)Loans from related parties (d) Finance lease obligations (e)Liability component of compound financial instruments (f)Loans repayable on demand (i)from banks (ii)from other parties (g) Other loans (specify nature) **Total (A)** Borrowings in India Borrowings outside India **Total (B) to tally** **with (A)** (i) Borrowings shall further be sub-classified as secured and unsecured. Nature of security shall be specified separately in each case. (ii) Where borrowings have been guaranteed by directors or others, the aggregate amount of such borrowings under each head shall be disclosed; (iii) terms of repayment of term loans and other loans shall be stated; and (iv) period and amount of default as on the balance sheet date in repayment of borrowings and interest shall be specified separately in each case. **(N)** **Deposits** **(Current Year)** **(Previous Year)** **At Amortised** **At fair** **Designated at** **Total** **At Amortised** **At fair** **Designated at** **Total** **Cost** **value** **fair value** **Cost** **value** **fair value** **through** **through profit** **through** **through profit** **profit or** **or loss** **profit or** **or loss** **loss** **loss** (1) (2) (3) (4)=(1)+(2)+(3) (5) (6) (7) (8)=(5)+(6)+(7) Deposits (i) Public |Col1|(Current Year)|Col3|Col4|Col5|(Previous Year)|Col7|Col8|Col9| |---|---|---|---|---|---|---|---|---| ||At Amortised Cost|At fair value Through profit or loss|Designated at fair value through profit or loss|Total|At Amortised Cost|At fair value Through profit or loss|Designated at fair value through profit or loss|Total| ||(1)|(2)|(3)|(4)=(1)+(2)+(3)|(1)|(2)|(3)|(4)=(1)+(2)+(3)| |(a)Term loans||||||||| |(i)from banks||||||||| |(ii)from other parties||||||||| |(b)Deferred payment liabilities||||||||| |(c)Loans from related parties||||||||| |(d) Finance lease obligations||||||||| |(e)Liability component of compound financial instruments||||||||| |(f)Loans repayable on demand||||||||| |(i)from banks||||||||| |(ii)from other parties||||||||| |(g) Other loans (specify nature)||||||||| |Total (A)||||||||| |Borrowings in India||||||||| |Borrowings outside India||||||||| |Total (B) to tally with (A)||||||||| |Col1|(Current Year)|Col3|Col4|Col5|(Previous Year)|Col7|Col8|Col9| |---|---|---|---|---|---|---|---|---| ||At Amortised Cost|At fair value through profit or loss|Designated at fair value through profit or loss|Total|At Amortised Cost|At fair value through profit or loss|Designated at fair value through profit or loss|Total| ||(1)|(2)|(3)|(4)=(1)+(2)+(3)|(5)|(6)|(7)|(8)=(5)+(6)+(7)| |Deposits||||||||| ----- |(ii) From Banks|Col2|Col3|Col4|Col5|Col6|Col7|Col8|Col9| |---|---|---|---|---|---|---|---|---| |(iii)From Others||||||||| |Total||||||||| **(O)** **Subordinated Liabilities** **(Current Year)** **(Previous Year)** **At** **At fair** **Designated** **Total** **At** **At fair** **Designated at** **Total** **Amortised** **value** **at fair** **Amortised** **value** **fair value** **Cost** **through** **value** **Cost** **through** **through** **profit or** **through** **profit or** **profit or loss** **loss** **profit or** **loss** **loss** (1) (2) (3) (4)=(1)+(2)+(3) (5) (6) (7) (8)=(5)+ (6)+(7) Perpetual Debt Instruments to the extent that do not qualify as equity Preference Shares other than those that qualify as Equity Others (specifying the nature and type of instrument issued) **Total (A)** Subordinated Liabilities in India Subordinated Liabilities outside India **Total (B) to tally** **with (A)** **(P)** **Other Financial Liabilities (to be specified): Other Financial liabilities shall be classified as-** (a) Interest accrued; (b) Unpaid dividends; (c) Application money received for allotment of securities to the extent refundable and interest accrued thereon; (d) Unpaid matured deposits and interest accrued thereon; (e) Unpaid matured debentures and interest accrued thereon; (f) Margin money (to be specified);and (g) Others (specify nature) **(Q)** **Provisions: The amounts shall be classified as-** (a) Provision for employee benefits; and (b) Others (specify nature) **(R)** **Other Non-financial liabilities (to be specified):** |Col1|(Current Year)|Col3|Col4|Col5|(Previous Year)|Col7|Col8|Col9| |---|---|---|---|---|---|---|---|---| ||At Amortised Cost|At fair value through profit or loss|Designated at fair value through profit or loss|Total|At Amortised Cost|At fair value through profit or loss|Designated at fair value through profit or loss|Total| ||(1)|(2)|(3)|(4)=(1)+(2)+(3)|(5)|(6)|(7)|(8)=(5)+ (6)+(7)| |Perpetual Debt Instruments to the extent that do not qualify as equity||||||||| |Preference Shares other than those that qualify as Equity||||||||| |Others (specifying the nature and type of instrument issued)||||||||| |Total (A)||||||||| |||||||||| |Subordinated Liabilities in India||||||||| |Subordinated Liabilities outside India||||||||| |Total (B) to tally with (A)||||||||| ----- (c) Others (specify nature). **(S)** **Equity Share Capital : For each class of equity share capital:** (a) the number and amount of shares authorized; (b) the number of shares issued, subscribed and fully paid, and subscribed but not fully paid; (c) par value per share; (d) a reconciliation of the number of shares outstanding at the beginning and at the end of the period; (e) the rights, preferences and restrictions attaching to each class of shares including restrictions on the distribution of dividends and the repayment of capital; (f) shares in respect of each class in the company held by its holding company or its ultimate holding company including shares held by or by subsidiaries or associates of the holding company or the ultimate holding company in aggregate; (g) shares in the company held by each shareholder holding more than five percent shares specifying the number of shares held; (h) shares reserved for issue under options and contracts/commitments for the sale of shares or disinvestment, including the terms and amounts; (i) For the period of five years immediately preceding the date at which the Balance Sheet is prepared: - Aggregate number and class of shares allotted as fully paid up pursuant to contract without payment being received in cash; - Aggregate number and class of shares allotted as fully paid up by way of bonus shares; and - Aggregate number and class of shares bought back; (j) terms of any securities convertible into equity shares issued along with the earliest date of conversion in descending order starting from the farthest such date; (k) calls unpaid (showing aggregate value of calls unpaid by directors and officers); (l) forfeited shares (amount originally paid up) (m) An NBFC shall disclose information that enables users of its financial statements to evaluate the NBFC’s objectives, policies and processes for managing capital. 1[(n) A Company shall disclose Shareholding of Promoter* as below: Shares held by promoters at the end of the year % Change during the year*** S.No Promoter Name No. of %of Shares** total shares** Total *Promoter here means promoter as defined in the Companies Act, 2013. ** Details shall be given separately for each class of shares *** percentage change shall be computed with respect to the number at the beginning of the year or if issued during the year for the first time then with respect to the date of issue.] **(T)** **Other Equity** (i) Other Reserves’ shall be classified in the notes as: (a) Capital Redemption Reserve; (b) Debenture Redemption Reserve; (c) Share Options Outstanding Account; (d) Statutory Reserves; and (e) Others – (specify the nature and purpose of each reserve and the amount in respect thereof); (Additions and deductions since last balance sheet to be shown under each of the specified heads) (iii) Retained Earnings represents surplus i.e. balance of the relevant column in the Statement of Changes in |1[(n) A Company shall disclose Shareholding of Promoter* as below:|Col2|Col3|Col4|Col5| |---|---|---|---|---| |Shares held by promoters at the end of the year||||% Change during the year***| |S.No|Promoter Name|No. of Shares**|%of total shares**|| |Total||||| ----- Equity; (iv) A reserve specifically represented by earmarked investments shall disclose the fact that it is so represented; (v) Debit balance of Statement of Profit and Loss shall be shown as a negative figure under the head ‘retained earnings’. Similarly, the balance of ‘Other Equity’, after adjusting negative balance of retained earnings, if any, shall be shown under the head ‘Other Equity’ even if the resulting figure is in the negative; (vi) Under the sub-head ‘Other Equity’, disclosure shall be made for the nature and amount of each item; and (vii) Under the sub-head ‘Other Equity’, disclosure shall be made for conditions or restrictions for distribution attached to statutory reserves. **(U)** **Contingent Liabilities and commitments (to the extent not provided for)** (i) Contingent Liabilities shall be classified as: (a) Claims against the company not acknowledged as debt; (b) Guarantees excluding financial guarantees; and (c) Other money for which the company is contingently liable (ii) Commitments shall be classified as: (a) Estimated amount of contracts remaining to be executed on capital account and not provided for; (b) Uncalled liability on shares and other investments partly paid; (c) Other commitments (specify nature). **(V)** The amount of dividends proposed to be distributed to equity and preference shareholders for the period and the related amount per share shall be disclosed separately. Arrears of fixed cumulative dividends on irredeemable preference shares shall also be disclosed separately. **(W)** Where in respect of an issue of securities made for a specific purpose the whole or part of amount has not been used for the specific purpose at the Balance Sheet date, there shall be indicated by way of note how such unutilized amounts have been used or invested. 1[(WA) Where the company has not used the borrowings from banks and financial institution for the specific purpose for which it was taken at the balance sheet date, the company shall disclose the details of where they have been used; (WB) Additional Regulatory Information (i) Title deeds of Immovable Properties not held in name of the Company The company shall provide the details of all the immovable property (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) whose title deeds are not held in the name of the company in following format and where such immovable property is jointly held with others, details are required to be given to the extent of the company‘s share. |Relevant line item in the Balance sheet|Description of item of property|Gross carrying value|Title deeds held in the name of|Whether title deed holder is promoter, director or relative # of promoter/director or employee of promoter/director|Property held since which date|Reason for not being held in the name of the company**| |---|---|---|---|---|---|---| |PPE - Investment Property - Non- current asset held for sale|Land Building Land Building Land Building|-|-|-|-|*** also Indicate if in dispute| ----- |others|Col2|Col3|Col4|Col5|Col6|Col7| |---|---|---|---|---|---|---| #Relative here means relative as defined in the Companies Act, 2013. *Promoter here means promoter as defined in the Companies Act, 2013. (ii) The company shall disclose as to whether the fair value of investment property (as measured for disclosure purposes in the financial statements) is based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. (iii) Where the Company has revalued its Property, Plant and Equipment (including Right-of-Use Assets), the company shall disclose as to whether the revaluation is based on valuation by a Registered Valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. (iv) Where the Company has revalued its Intangible assets, the company shall disclose as to whether the revaluation is based on valuation by a Registered Valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. (v) Following disclosures shall be made where loans or advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as defined under the Companies Act, 2013), either severally or jointly with any other person that are: (a) repayable on demand or (b) without specifying any terms or period of repayment Type of Borrower Amount of loan or advances in the nature Percentage to the total of loan outstanding Loans and Advances in the nature of loans Promoter Directors KMPs Related parties **(iv) Capital-work-in Progress (CWIP)** **(a) For Capital-work-in progress, following ageing schedule shall be given:** **CWIP aging schedule** (Amount in Rs.) CWIP Amount in CWIP for a period of Total* Less than 1 year 1-2 years 2-3 years More than 3 years Projects in progress Projects temporarily suspended *Total shall tally with CWIP amount in the balance sheet. (b) For capital-work-in progress, whose completion is overdue or has exceeded its cost compared to its original plan, following CWIP completion schedule shall be given**: |Type of Borrower|Amount of loan or advances in the nature of loan outstanding|Percentage to the total Loans and Advances in the nature of loans| |---|---|---| |Promoter||| |Directors||| |KMPs||| |Related parties||| |CWIP|Amount in CWIP for a period of|Col3|Col4|Col5|Total*| |---|---|---|---|---|---| ||Less than 1 year|1-2 years|2-3 years|More than 3 years|| |Projects in progress Projects temporarily suspended|||||| |Col1|(Amount in Rs.)|Col3|Col4|Col5| |---|---|---|---|---| |CWIP|To be completed in|||| ||Less than 1 year|1-2 years|2-3 years|More than 3 years| ----- |Project 2”|Col2|Col3|Col4|Col5| |---|---|---|---|---| ** Details of projects where activity has been suspended shall be given separately. **(vii) Intangible assets under development:** (a) For Intangible assets under development, following ageing schedule shall be given: **Intangible assets under development aging schedule** (Amount in Rs.) Intangible assets Amount in CWIP for a period of Total* under development Less than 1 year 1-2 years 2-3 years More than 3 years Projects in progress Projects temporarily suspended *Total shall tally with the amount of Intangible assets under development in the balance sheet. (b) For Intangible assets under development, whose completion is overdue or has exceeded its cost compared to its original plan, following Intangible assets under development completion schedule shall be given**: (Amount in Rs.) Intangible assets under To be completed in development Less than 1 1-2 years 2-3 years More than 3 years year Project 1 Project 2 **Details of projects where activity has been suspended shall be given separately. **(viii) Details of Benami Property held** Where any proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder, the company shall disclose the following: (a) Details of such property, (b) Amount thereof, (c) Details of Beneficiaries, (d) If property is in the books, then reference to the item in the Balance Sheet, (e) If property is not in the books, then the fact shall be stated with reasons, (f) Where there are proceedings against the company under this law as an abetter of the transaction or as the transferor then the details shall be provided. (g) Nature of proceedings, status of same and company‘s view on same. **(ix) Where the Company has borrowings from banks or financial institutions on the basis of security of current assets, it shall** disclose the following: (a) whether quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts, (b) if not summary of reconciliation and reasons of material discrepancies if any to be adequately disclosed |Intangible assets under development|Amount in CWIP for a period of|Col3|Col4|Col5|Total*| |---|---|---|---|---|---| ||Less than 1 year|1-2 years|2-3 years|More than 3 years|| |Projects in progress Projects temporarily suspended|||||| |Intangible assets under development|To be completed in|Col3|Col4|Col5| |---|---|---|---|---| ||Less than 1 year|1-2 years|2-3 years|More than 3 years| |Project 1 Project 2||||| ----- **(X) Wilful Defaulter*** Where a company is a declared wilful defaulter by any bank or financial Institution or other lender, following details shall be given, namely: (a) date of declaration as wilful defaulter, (b) details of defaults (amount and nature of defaults). *wilful defaulter‖ here means a person or an issuer who or which is categorized as a willful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India. **(xi) Relationship with Struck off Companies** Where the company has any transactions with the companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956, the Company shall disclose the following details, Name of struck off Nature of transactions with Balance outstanding Relationship with the Struck Company struck-off Company off company, if any, to be disclosed Investment in securities Receivables Payables Shares held by stuck off company Other outstanding balances (to be specified) **(xii) Registration of charges or satisfaction with Registrar of Companies (ROC)** Where any charges or satisfaction yet to be registered with ROC beyond the statutory period, details and reasons thereof shall be disclosed. **(xiii) Compliance with number of layers of companies** Where the company has not complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017, the name and CIN of the companies beyond the specified layers and the relationship/extent of holding of the company in such downstream companies shall be disclosed. **(xiv) Following Ratios shall be disclosed** (a) Capital to risk-weighted assets ration (CRAR) (b) Tier I CRAR (C) Tier II CRAR (d) Liquidity Coverage Ratio **(xv) Compliance with approved Scheme(s) of Arrangements** Where any Scheme of Arrangements has been approval by the Competent Authority in terms of section 230 to 237 of the Companies Act, 2013, the Company shall disclose that the effect of such Scheme of Arrangements have been accounted for in the books of account of the Company ‘in accordance with the Scheme’ and ‘in accordance with accounting standards’. Any deviation in this regard shall be explained. **(xvi) Utilisation of Borrowed funds and share premium:** (A) Where company has advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the |Name of struck off Company|Nature of transactions with struck-off Company|Balance outstanding|Relationship with the Struck off company, if any, to be disclosed| |---|---|---|---| ||Investment in securities||| ||Receivables||| ||Payables||| ||Shares held by stuck off company||| ||Other outstanding balances (to be specified)||| ----- (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries; the company shall disclose the following: (I) date and amount of fund advanced or loaned or invested in Intermediaries with complete details of each Intermediary. (II) date and amount of fund further advanced or loaned or invested by such Intermediaries to other intermediaries or Ultimate Beneficiaries alongwith complete details of the ultimate beneficiaries. (III) date and amount of guarantee, security or the like provided to or on behalf of the Ultimate Beneficiaries (IV) declaration that relevant provisions of the Foreign Exchange Management Act, 1999 (42 of 1999) and Companies Act has been complied with for such transactions and the transactions are not violative of the Prevention of MoneyLaundering act, 2002 (15 of 2003).; (B) Where a company has received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries, the company shall disclose the following: (I) date and amount of fund received from Funding parties with complete details of each Funding party. (II) date and amount of fund further advanced or loaned or invested other intermediaries or Ultimate Beneficiaries alongwith complete details of the other intermediaries‘ or ultimate beneficiaries. (III) date and amount of guarantee, security or the like provided to or on behalf of the Ultimate Beneficiaries (IV) declaration that relevant provisions of the Foreign Exchange Management Act, 1999 (42 of 1999) and Companies Act has been complied with for such transactions and the transactions are not violative of the Prevention of MoneyLaundering act, 2002 (15 of 2003).;] **(X)** **Other Classification related General Instructions** 1. When an NBFC applies an accounting policy retrospectively or makes a restatement of items in the financial statements or when it reclassifies items in its financial statements, the NBFC shall attach to the Balance Sheet, a “Balance Sheet” as at the beginning of the earliest comparative period presented. 2. Share application money pending allotment shall be classified into equity or liability in accordance with relevant Indian Accounting Standards. Share application money to the extent not refundable shall be shown under the head Equity and share application money to the extent refundable shall be separately shown under ‘Other financial liabilities’. 3. Preference shares including premium received on issue, shall be classified and presented as ‘Equity’ or ‘Liability’ in accordance with the requirements of the relevant Indian Accounting Standards. Accordingly, the disclosure and presentation requirements in this regard applicable to the relevant class of equity or liability shall be applicable mutatis mutandis to the preference shares. For instance, plain vanila redeemable preference shares shall be classified and presented under ‘liabilities’ as ‘borrowings’ or ‘subordinated liability’ and the disclosure requirements in this regard applicable to such borrowings shall be applicable mutatis mutandis to redeemable preference shares. 4. Compound financial instruments such as convertible debentures, where split into equity and liability components, as per the requirements of the relevant Indian Accounting Standards, shall be classified and presented un- der the relevant heads in ‘‘Liabilities and Equity’. 5. Regulatory Deferral Account Balances shall be presented in the Balance Sheet in accordance with the relevant Indian Accounting Standards. ----- **_PART II – STATEMENT OF PROFIT AND LOSS_** _Name of the Non-Banking Financial Company……………………._ _Statement of Profit and Loss for the period ended ………………………_ **Particulars** **Note No.** **Figures for the current** **Revenue from operations** (i) Interest Income (ii) Dividend Income (iii) Rental Income (iv) Fees and commission Income (v) Net gain on fair value changes (vi) Net gain on derecognition of financial instruments under amortised cost category (vii) Sale of products(including Excise Duty) (viii) Sale of services (ix) Others (to be specified) (I) **Total Revenue from operations** (II) Other Income (to be specified) (III) **Total Income (I+II)** **Expenses** (i) Finance Costs (ii) Fees and commission expense (iii) Net loss on fair value changes (iv) Net loss on derecognition of financial instruments under amortised cost category (v) Impairment on financial instruments (vi) Cost of materials consumed (vii) Purchases of Stock-in-trade (viii) Changes in Inventories of finished goods, stock-in-trade and work-in- progress (ix) Employee Benefits Expenses (x) Depreciation, amortization and impairment (xi) Others expenses (to be specified) (IV ) **Total Expenses (IV)** (V ) Profit / (loss) before exceptional items and tax (III-IV) (VI ) Exceptional items (VII ) Profit/(loss) before tax (V -VI ) (VIII) Tax Expense: (1) Current Tax (2) Deferred Tax (Rupees in ...................... ) |Col1|Particulars|Note No.|Figures for the current reporting period|Figures for the previous reporting period| |---|---|---|---|---| ||Revenue from operations|||| |(i)|Interest Income|||| |(ii)|Dividend Income|||| |(iii)|Rental Income|||| |(iv)|Fees and commission Income|||| |(v)|Net gain on fair value changes|||| |(vi)|Net gain on derecognition of financial instruments under amortised cost category|||| |(vii)|Sale of products(including Excise Duty)|||| |(viii)|Sale of services|||| |(ix)|Others (to be specified)|||| |(I)|Total Revenue from operations|||| |||||| |(II)|Other Income (to be specified)|||| |(III)|Total Income (I+II)|||| |||||| ||Expenses|||| |(i)|Finance Costs|||| |(ii)|Fees and commission expense|||| |(iii)|Net loss on fair value changes|||| |(iv)|Net loss on derecognition of financial instruments under amortised cost category|||| |(v)|Impairment on financial instruments|||| |(vi)|Cost of materials consumed|||| |(vii)|Purchases of Stock-in-trade|||| |(viii)|Changes in Inventories of finished goods, stock-in-trade and work-in- progress|||| |(ix)|Employee Benefits Expenses|||| |(x)|Depreciation, amortization and impairment|||| |(xi)|Others expenses (to be specified)|||| |(IV )|Total Expenses (IV)|||| |||||| |(V )|Profit / (loss) before exceptional items and tax (III-IV)|||| |(VI )|Exceptional items|||| |(VII )|Profit/(loss) before tax (V -VI )|||| ----- |Col1|Particulars|Note No.|Figures for the current reporting period|Figures for the previous reporting period| |---|---|---|---|---| ||Revenue from operations|||| |(IX)|Profit / (loss) for the period from continuing operations(VII-VIII)|||| |(X)|Profit/(loss) from discontinued operations|||| |(XI)|Tax Expense of discontinued operations|||| |(XII)|Profit/(loss) from discontinued operations(After tax) (X- XI)|||| |(XIII)|Profit/(loss) for the period (IX+XII)|||| |||||| |(XIV)|Other Comprehensive Income|||| ||(A) (i) Items that will not be reclassified to profit or loss (specify items and amounts)|||| ||(ii) Income tax relating to items that will not be reclassified to profit or loss|||| ||Subtotal (A)|||| ||(B) (i) Items that will be reclassified to profit or loss (specify items and amounts)|||| ||(ii) Income tax relating to items that will be reclassified to profit or loss|||| ||Subtotal (B)|||| ||Other Comprehensive Income (A + B)|||| |||||| |(XV)|Total Comprehensive Income for the period (XIII+XIV) (Comprising Profit (Loss) and other Comprehensive Income for the period)|||| |||||| |(XVI)|Earnings per equity share (for continuing operations)|||| ||Basic (Rs.)|||| ||Diluted (Rs.)|||| |||||| |(XVII)|Earnings per equity share (for discontinued operations)|||| ||Basic (Rs.)|||| ||Diluted (Rs.)|||| |||||| |(XVIII)|Earnings per equity share (for continuing and discontinued operations)|||| ||Basic (Rs.)|||| ||Diluted (Rs.)|||| **See accompanying notes to the financial statements** ----- **_Notes_** **_GENERAL INSTRUCTIONS FOR PREPARATION OF STATEMENT OF PROFIT AND LOSS_** **1.** The provisions of this Part shall apply to the income and expenditure account, in like manner as they apply to a Statement of Profit and Loss. **2.** The Statement of Profit and Loss shall include: (A) Profit or loss for the period; (B) Other Comprehensive Income for the period. The sum of (A) and (B) above is ‘Total Comprehensive Income’. **3.** **Interest Income** **(Current Year)** **(Previous Year)** **Particulars** On Financial On Financial Assets Interest On Financial On Financial Interest Assets measured measured at Income on Assets Assets measured Income on at fair value Amortised Cost Financial measured at at Amortised Cost Financial through OCI Assets fair value Assets classified at through OCI classified at fair value fair value through profit through profit or loss or loss Interest on Loans Interest income from investments Interest on deposits with Banks Other interest Income Total **4.** **Net gain/ (loss) on fair value changes*** **Particulars** **(Current Year)** **(Previous Year)** (A) Net gain/ (loss) on financial instruments at fair value through profit or loss (i) On trading portfolio - Investments - Derivatives - Others (ii) On financial instruments designated at fair value through profit or loss (B) Others ( to be specified) Total Net gain/(loss) on fair value changes (C) Fair Value changes: -Realised -Unrealised Total Net gain/(loss) on fair value changes(D) to tally with (C) *Fair value changes in this schedule are other than those arising on account of accrued interest income/expense. |3. Interest Income|Col2|Col3|Col4|Col5|Col6|Col7| |---|---|---|---|---|---|---| |Particulars|(Current Year)|||(Previous Year)||| ||On Financial Assets measured at fair value through OCI|On Financial Assets measured at Amortised Cost|Interest Income on Financial Assets classified at fair value through profit or loss|On Financial Assets measured at fair value through OCI|On Financial Assets measured at Amortised Cost|Interest Income on Financial Assets classified at fair value through profit or loss| |Interest on Loans||||||| |Interest income from investments||||||| |Interest on deposits with Banks||||||| |Other interest Income||||||| |Total||||||| |4. Net gain/ (loss) on fair value changes*|Col2|Col3| |---|---|---| |Particulars|(Current Year)|(Previous Year)| |(A) Net gain/ (loss) on financial instruments at fair value through profit or loss||| |(i) On trading portfolio||| |- Investments||| |- Derivatives||| |- Others||| |(ii) On financial instruments designated at fair value through profit or loss||| |(B) Others ( to be specified)||| |Total Net gain/(loss) on fair value changes (C)||| |Fair Value changes: -Realised -Unrealised||| |Total Net gain/(loss) on fair value changes(D) to tally with (C)||| ----- **5.** **Other Income (to be specified)** **Particulars** **(Current Year)** **(Previous Year)** Net gain/(loss) on ineffective portion of hedges Net gain/(loss) on derecognition of property, plant and equipment Net gain or loss on foreign currency transaction and translation (other than considered as finance cost)( to be specified) Others ( to be specified)* Total - Any item under the subhead ‘Others’ which exceeds one per cent of the total income to be presented separately. **6.** **Finance Costs** **Particulars** **(Current Year)** **(Previous Year)** On Financial On Financial liabilities On Financial On Financial liabilities measured at Amortised liabilities measured liabilities measured measured at fair Cost at fair value through at Amortised Cost value through profit or loss profit or loss Interest on deposits Interest on borrowings Interest on debt securities Interest on subordinated liabilities Other interest expense Total **7.** **Employee Benefits Expenses** **Particulars** **(Current Year)** **(Previous Year)** Salaries and wages Contribution to provident and other funds Share Based Payments to employees Staff welfare expenses Others (to be specified) Total **8.** **Impairment on financial instruments** |Particulars|(Current Year)|(Previous Year)| |---|---|---| |Net gain/(loss) on ineffective portion of hedges||| |Net gain/(loss) on derecognition of property, plant and equipment||| |Net gain or loss on foreign currency transaction and translation (other than considered as finance cost)( to be specified)||| |Others ( to be specified)*||| |Total||| |Particulars|(Current Year)|Col3|(Previous Year)|Col5| |---|---|---|---|---| ||On Financial liabilities measured at fair value through profit or loss|On Financial liabilities measured at Amortised Cost|On Financial liabilities measured at fair value through profit or loss|On Financial liabilities measured at Amortised Cost| |Interest on deposits||||| |Interest on borrowings||||| |Interest on debt securities||||| |Interest on subordinated liabilities||||| |Other interest expense||||| |Total||||| |Particulars|(Current Year)|(Previous Year)| |---|---|---| |Salaries and wages||| |Contribution to provident and other funds||| |Share Based Payments to employees||| |Staff welfare expenses||| |Others (to be specified)||| |Total||| |Particulars|(Current Year)|Col3|(Previous Year)|Col5| |---|---|---|---|---| ||On Financial instruments measured at fair value through OCI|On Financial instruments measured at Amortised Cost|On Financial instruments measured at fair value through OCI|On Financial instruments measured at Amortised Cost| |Loans||||| |Investments||||| |Others (to be specified)||||| |Total||||| ----- **9.** **Other expenses (to be specified)** **Particulars** **(Current Year)** **(Previous Year)** Rent, taxes and energy costs Repairs and maintenance Communication Costs Printing and stationery Advertisement and publicity Director’s fees, allowances and expenses Auditor’s fees and expenses Legal and Professional charges Insurance Other expenditure Total - Any item under the subhead ‘Others expenditure’ which exceeds one per cent of the total income to be presented separately. **10. Other Comprehensive Income shall be classified into-** (A) Items that will not be reclassified to profit or loss i. Changes in revaluation surplus; ii. Remeasurements of the defined benefit plans; iii. Equity Instruments through Other Comprehensive Income; iv. Fair value changes relating to own credit risk of financial liabilities designated at fair value through profit or loss; v. Share of Other Comprehensive Income in Associates and Joint Ventures, to the extent not to be classified into profit or loss; and vi. Others (specify nature). (B) Items that will be reclassified to profit or loss; i. Exchange differences in translating the financial statements of a foreign operation; ii. Debt Instruments through Other Comprehensive Income; iii. The effective portion of gains and loss on hedging instruments in a cash flow hedge; iv. Share of Other Comprehensive Income in Associates and Joint Ventures, to the extent to be classified into profit or loss; and v. Others (specify nature). **11.** **Additional Information: An NBFC shall disclose by way of notes, additional information regarding aggregate** expenditure and income on the following items: i. Depreciation, amortisation and impairment ii. payments to the auditor as (a) auditor, (b) for taxation matters, (c) for company law matters, (d) for other services, (e) for reimbursement of expenses; iii. in case of NBFCs covered under section 135, amount of expenditure incurred on corporate social responsi bility activities; and iv. details of items of exceptional nature 1[v. undisclosed income |9. Other expenses (to be specified)|Col2|Col3| |---|---|---| |Particulars|(Current Year)|(Previous Year)| |Rent, taxes and energy costs||| |Repairs and maintenance||| |Communication Costs||| |Printing and stationery||| |Advertisement and publicity||| |Director’s fees, allowances and expenses||| |Auditor’s fees and expenses||| |Legal and Professional charges||| |Insurance||| |Other expenditure||| |Total||| ----- The Company shall give details of any transactions not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961), unless there is immunity for disclosure under any scheme. Also, state whether the previously unrecorded income and related assets have been properly recorded in the books of account during the year. vi. Corporate Social Responsibility (CSR) Where the company (NBFC) covered under section 135 of the Companies Act, the following shall be disclosed with regard to CSR activated: (a) amount required to be spent by the company during the year, (b) amount of expenditure incurred, (c) shortfall at the end of the year, (d) total of previous years shortfall, (e) reason for shortfall, (f) nature of CSR activities, (g) details of related party transactions, e.g., contribution to a trust controlled by the company in relation to CSR expenditure as per relevant Accounting Standard, (h) where a provision is made with respect to a liability incurred by entering into a contractual obligation, the movements in the provision during the year shall be shown separately. vii details of Crypto Currency or Virtual Currency Where the Company has traded or invested in Crypto currency or virtual Currency during the financial year, the following shall be disclosed: (a) profit or loss on transactions involving Crypto currency or Virtual Currency. (b) amount of currency held as at the reporting date. (c) deposits or advances from any person for the purpose of trading or investing in Crypto Currency or virtual currency.] **PART III-** **_GENERAL INSTRUCTIONS FOR THE PREPARATION OF CONSOLIDATED_** **_FINANCIAL STATEMENTS_** **(1)** Where a Non-Banking Financial Company (NBFC) is required to prepare Consolidated Financial Statements, i.e., consolidated balance sheet, consolidated statement of changes in equity and consolidated statement of profit and loss, the NBFC shall mutatis mutandis follow the requirements of this Schedule as applicable to an NBFC in the preparation of balance sheet, statement of changes in equity and statement of profit and loss. However, where the consolidated financial statements contains elements pertaining to NBFCs and other than NBFCs, mixed basis of presentation may be followed for consolidated financial statements where both kinds of opera- tions are significant. In addition, the consolidated financial statements shall disclose the information as per the requirements specified in the applicable Indian Accounting Standards notified under the Companies (Indian Ac- counting Standards) Rules 2015, including the following, namely: (i) Profit or loss attributable to ‘non-controlling interest’ and to ‘owners of the parent’ in the statement of profit and loss shall be presented as allocation for the period. Further, ‘total comprehensive income’ for the period attributable to ‘non-controlling interest’ and to ‘owners of the parent’ shall be presented in the statement of profit and loss as allocation for the period. The aforesaid disclosures for ‘total comprehensive income’ shall also be made in the statement of changes in equity. In addition to the disclosure requirements in the Indian Accounting Standards, the aforesaid disclosures shall also be made in respect of ‘other comprehensive income’. (ii) ‘Non-controlling interests’ in the Balance Sheet and in the Statement of Changes in Equity, within equity, shall be presented separately from the equity of the ‘owners of the parent’. (iii) Investments accounted for using the equity method. ----- **(2)** In Consolidated Financial Statements, the following shall be disclosed by way of additional information: |(2) In Co|onsolidated Financial Stateme|Col3|ents, the following shall be discl|Col5|losed by way of additional i|Col7|information:|Col9| |---|---|---|---|---|---|---|---|---| |Name of the entity in the Group|Net Assets, i.e., total assets minus total liabilities||Share in profit or loss||Share in other comprehensive income||Share in total comprehensive income|| ||As % of consolidated net assets|Amount||||||| ||||As % of consolidated profit or loss|Amount|As % of consolidated other comprehensive income|Amount|As % of total comprehensive income|Amount| |ent Subsidiaries Indian 1. 2. 3. . . Foreign 1. 2. 3. . . Non- controlling Interests in all subsidiaries Associates (Investment as per the equity method) Indian 1. 2. 3. . . Foreign 1. 2. 3. . . Joint||||||||| ----- |Ventures(as per the equity method) Indian 1. 2. 3. . . Foreign 1. 2. 3. . .|Col2|Col3|Col4|Col5|Col6|Col7|Col8|Col9| |---|---|---|---|---|---|---|---|---| |Total||||||||| **(3)** All subsidiaries, associates and joint ventures (whether Indian or foreign) will be covered under consolidated financial statements. **(4)** An entity shall disclose the list of subsidiaries or associates or joint ventures which have not been consolidated in the consolidated financial statements along with the reasons of not consolidating.] 357 ----- SCHEDULE IV [See section 149(8)] **CODE FOR INDEPENDENT DIRECTORS** The Code is a guide to professional conduct for independent directors. Adherence to these standards by independent directors and fulfilment of their responsibilities in a professional and faithful manner will promote confidence of the investment community, particularly minority shareholders, regulators and companies in the institution of independent directors. **I. Guidelines of professional conduct:** An independent director shall: (1) uphold ethical standards of integrity and probity; (2) act objectively and constructively while exercising his duties; (3) exercise his responsibilities in a bona fide manner in the interest of the company; (4) devote sufficient time and attention to his professional obligations for informed and balanced decision making; (5) not allow any extraneous considerations that will vitiate his exercise of objective independent judgment in the paramount interest of the company as a whole, while concurring in or dissenting from the collective judgment of the Board in its decision making; (6) not abuse his position to the detriment of the company or its shareholders or for the purpose of gaining direct or indirect personal advantage or advantage for any associated person; (7) refrain from any action that would lead to loss of his independence; (8) where circumstances arise which make an independent director lose his independence, the independent director must immediately inform the Board accordingly; (9) assist the company in implementing the best corporate governance practices. **II. Role and functions:** The independent directors shall: (1) help in bringing an independent judgment to bear on the Board’s deliberations especially on issues of strategy, performance, risk management, resources, key appointments and standards of conduct; (2) bring an objective view in the evaluation of the performance of board and management; (3) scrutinise the performance of management in meeting agreed goals and objectives and monitor the reporting of performance; (4) satisfy themselves on the integrity of financial information and that financial controls and the systems of risk management are robust and defensible; (5) safeguard the interests of all stakeholders, particularly the minority shareholders; (6) balance the conflicting interest of the stakeholders; (7) determine appropriate levels of remuneration of executive directors, key managerial personnel and senior management and have a prime role in appointing and where necessary recommend removal of executive directors, key managerial personnel and senior management; (8) moderate and arbitrate in the interest of the company as a whole, in situations of conflict between management and shareholder’s interest. **III. Duties :** The independent directors shall— (1) undertake appropriate induction and regularly update and refresh their skills, knowledge and familiarity with the company; 358 ----- (2) seek appropriate clarification or amplification of information and, where necessary, take and follow appropriate professional advice and opinion of outside experts at the expense of the company; (3) strive to attend all meetings of the Board of Directors and of the Board committees of which he is a member; (4) participate constructively and actively in the committees of the Board in which they are chairpersons or members; (5) strive to attend the general meetings of the company; (6) where they have concerns about the running of the company or a proposed action, ensure that these are addressed by the Board and, to the extent that they are not resolved, insist that their concerns are recorded in the minutes of the Board meeting; (7) keep themselves well informed about the company and the external environment in which it operates; (8) not to unfairly obstruct the functioning of an otherwise proper Board or committee of the Board; (9) pay sufficient attention and ensure that adequate deliberations are held before approving related party transactions and assure themselves that the same are in the interest of the company; (10) ascertain and ensure that the company has an adequate and functional vigil mechanism and to ensure that the interests of a person who uses such mechanism are not prejudicially affected on account of such use; (11) report concerns about unethical behavior, actual or suspected fraud or violation of the company’s code of conduct or ethics policy; (12) [1][act within their authority], assist in protecting the legitimate interests of the company, shareholders and its employees; (13) not disclose confidential information, including commercial secrets, technologies, advertising and sales promotion plans, unpublished price sensitive information, unless such disclosure is expressly approved by the Board or required by law. **IV. Manner of appointment:** (1) Appointment process of independent directors shall be independent of the company management; while selecting independent directors the Board shall ensure that there is appropriate balance of skills, experience and knowledge in the Board so as to enable the Board to discharge its functions and duties effectively. (2) The appointment of independent director(s) of the company shall be approved at the meeting of the shareholders. (3) The explanatory statement attached to the notice of the meeting for approving the appointment of independent director shall include a statement that in the opinion of the Board, the independent director proposed to be appointed fulfils the conditions specified in the Act and the rules made thereunder and that the proposed director is independent of the management. (4) The appointment of independent directors shall be formalised through a letter of appointment, which shall set out : (a) the term of appointment; (b)the expectation of the Board from the appointed director; the Board-level committee(s) in which the director is expected to serve and its tasks; (c) the fiduciary duties that come with such an appointment along with accompanying liabilities; (d)provision for Directors and Officers (D and O) insurance, if any; (e) the Code of Business Ethics that the company expects its directors and employees to follow; (f) the list of actions that a director should not do while functioning as such in the company; and 1. Subs. by Notification No. S.O. 2113(E), dated 5[th] July 2017, for “ acting within his authority” . 359 ----- (g)the remuneration, mentioning periodic fees, reimbursement of expenses for participation in the Boards and other meetings and profit related commission, if any. (5) The terms and conditions of appointment of independent directors shall be open for inspection at the registered office of the company by any member during normal business hours. (6) The terms and conditions of appointment of independent directors shall also be posted on the company’s website. **V. Re-appointment:** The re-appointment of independent director shall be on the basis of report of performance evaluation. **VI. Resignation or removal:** (1) The resignation or removal of an independent director shall be in the same manner as is provided in sections 168 and 169 of the Act. (2) An independent director who resigns or is removed from the Board of the company shall be replaced by a new independent director within [1][three months] from the date of such resignation or removal, as the case may be. (3) Where the company fulfils the requirement of independent directors in its Board even without filling the vacancy created by such resignation or removal, as the case may be, the requirement of replacement by a new independent director shall not apply. **VII. Separate meetings:** (1) The independent directors of the company shall hold at least one meeting [2][in a financial year], without the attendance of non-independent directors and members of management; (2) All the independent directors of the company shall strive to be present at such meeting; (3) The meeting shall: (a) review the performance of non-independent directors and the Board as a whole; (b) review the performance of the Chairperson of the company, taking into account the views of executive directors and non-executive directors; (c) assess the quality, quantity and timeliness of flow of information between the company management and the Board that is necessary for the Board to effectively and reasonably perform their duties. **VIII. Evaluation mechanism:** (1) The performance evaluation of independent directors shall be done by the entire Board of Directors, excluding the director being evaluated. (2) On the basis of the report of performance evaluation, it shall be determined whether to extend or continue the term of appointment of the independent director. 3[Note: The Provisions of sub-paragraph (2) and (7) of paragraph II, paragraph IV, paragraph V, clauses (a) and (b) of sub-paragraph (3) of paragraph VI and paragraph VIII shall not apply in the case of a Government company as defined under clause (45) of section 2 of the Companies Act, 2013 (18 of 2013), if the requirements in respect of matters specified in these paragraph are specified by the concerned Ministries or Departments of the Central Government or as the case may be, the State Governments and such requirements are complied with by the Government companies.] 1. Subs. by Notification No. S.O. 2113(E), dated 5th July 2017, for “a period of not more than one hundred and eight days” (w.e.f. 5-7-2017). 2. Subs. by ibid., for “in a year” (w.e.f. 5-7-2017). 3. Ins. by ibid.(w.e.f. 5-7-2017). 360 ----- SCHEDULE V (See sections 196 and 197) **PART I** CONDITIONS TO BE FULFILLED FOR THE APPOINTMENT OF A MANAGING OR WHOLE-TIME DIRECTOR OR A MANAGER WITHOUT THE APPROVAL OF THE CENTRAL GOVERNMENT APPOINTMENTS No person shall be eligible for appointment as a managing or whole-time director or a manager (hereinafter referred to as managerial person) of a company unless he satisfies the following conditions, namely:— (a) he had not been sentenced to imprisonment for any period, or to a fine exceeding one thousand rupees, for the conviction of an offence under any of the following Acts, namely:— (i) the Indian Stamp Act, 1899 (2 of 1899); (ii) the Central Excise Act, 1944 (1 of 1944); (iii) the Industries (Development and Regulation) Act, 1951 (65 of 1951); (iv) the Prevention of Food Adulteration Act, 1954 (37 of 1954); (v) the Essential Commodities Act, 1955 (10 of 1955); 1[(vi) the Companies Act, 2013 (18 of 2013) or any previous company law;] (vii) the Securities Contracts (Regulation) Act, 1956 (42 of 1956); (viii) the Wealth-tax Act, 1957 (27 of 1957); (ix) the Income-tax Act, 1961 (43 of 1961); (x) the Customs Act, 1962 (52 of 1962); (xi) the Competition Act, 2002 (12 of 2003); (xii) the Foreign Exchange Management Act, 1999 (42 of 1999); (xiii) the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986); (xiv) the Securities and Exchange Board of India Act, 1992 (15 of 1992); (xv) the Foreign Trade (Development and Regulation) Act, 1922 (22 of 1922); (xvi) the Prevention of Money-Laundering Act, 2002 (15 of 2003); 2[(xvii) the Insolvency and Bankruptcy Code, 2016 (31 of 2016); (xviii) the Goods and Services Tax Act, 2017 (12 of 2017); (xix) the Fugitive Economic Offenders Act, 2018 (17 of 2018).] (b) he had not been detained for any period under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (52 of 1974): Provided that where the Central Government has given its approval to the appointment of a person convicted or detained under sub-paragraph (a) or sub-paragraph (b), as the case may be, no further approval of the Central Government shall be necessary for the subsequent appointment of that person if he had not been so convicted or detained subsequent to such approval. (c) he has completed the age of twenty-one years and has not attained the age of seventy years: 1. Subs. by Notification No. G.S.R. 2922(E), dated 12th September, 2016, for sub-paragraph (vi). 2. Ins. by Notification No. S.O. 4822(E), dated 12th September, 2018 (w.e.f. 12-9-2018). 361 ----- Provided that where he has attained the age of seventy years; and where his appointment is approved by a special resolution passed by the company in general meeting, no further approval of the Central Government shall be necessary for such appointment; (d) where he is a managerial person in more than one company, he draws remuneration from one or more companies subject to the ceiling provided in section V of Part II; (e) he is resident of India. _Explanation I.—For the purpose of this Schedule, resident in India includes a person who has been_ staying in India for a continuous period of not less than twelve months immediately preceding the date of his appointment as a managerial person and who has come to stay in India,— (i) for taking up employment in India; or (ii) for carrying on a business or vacation in India. _Explanation II.—This condition shall not apply to the companies in Special Economic Zones as_ notified by Department of Commerce from time to time: Provided that a person, being a non-resident in India shall enter India only after obtaining a proper Employment Visa from the concerned Indian mission abroad. For this purpose, such person shall be required to furnish, along with the visa application form, profile of the company, the principal employer and terms and conditions of such person’s appointment. **PART II** REMUNERATION **Section I.— Remuneration payable by companies having profits:** Subject to the provisions of section 197, a company having profits in a financial year may pay remuneration to a managerial person or persons [1][or other director or directors] not exceeding the limits specified in such section. **2[Section II.— Remuneration payable by companies having no profit or inadequate profit 3***:** Where in any financial year during the currency of tenure of a managerial person [1][or other director], a company has no profits or its profits are inadequate, it may, [3]***, pay remuneration to the managerial person 1[or other director] not exceeding the limits under (A) and (B) given below:— 4[(A): (1) (2) (3) **SI. No.** **Where the effective capital (in** **Limit of yearly remuneration payable** **Limit** **of** **yearly** **rupees) is** **shall not exceed (in Rupees) in case of a** **remuneration** **payable** **managerial person** **shall not exceed (in rupees)** **in case of other director** (i) Negative or less than 5 60 lakhs 12 Lakhs crores. (ii) 5 crores and above but less than 100 84 lakhs 17 Lakhs crores. (iii) 100 crores and above but less than 120 lakhs 24 Lakhs 250 crores. (iv) 250 crores and above. 120 lakhs plus 0.01% of the effective 24 Lakhs plus 0.01% of the capital in excess of Rs. 250 crores: effective capital in excess of Rs. 250 crores:] 5[Provided that the remuneration in excess of above limits may be paid] if the resolution passed by the shareholders is a special resolution. 1. Ins. by Notification No. S.O. 1256(E), dated 18th March, 2021 (w.e.f. 18-3-2021). 2. Subs. by Notification No. S.O. 2922(E), dated 12th September 2016, for Section II. 3. The words “without Central Government approval” omitted by Notification No. S.O. 4822(E), dated 12th September, 2018 (w.e.f. 12-9-2018). 4. Subs. by Notification No. S.O. 1256(E), for Table (A) dated 18th March, 2021 (w.e.f. 18-3-2021). 5. Subs. by Notification No. S.O. 4822(E), for “Provided that the above limits shall be doubled” (w.e.f. 12-9-2018). 362 |4[(A):|Col2|Col3|Col4| |---|---|---|---| ||(1)|(2)|(3)| |SI. No.|Where the effective capital (in rupees) is|Limit of yearly remuneration payable shall not exceed (in Rupees) in case of a managerial person|Limit of yearly remuneration payable shall not exceed (in rupees) in case of other director| |(i)|Negative or less than 5 crores.|60 lakhs|12 Lakhs| |(ii)|5 crores and above but less than 100 crores.|84 lakhs|17 Lakhs| |(iii)|100 crores and above but less than 250 crores.|120 lakhs|24 Lakhs| |(iv)|250 crores and above.|120 lakhs plus 0.01% of the effective capital in excess of Rs. 250 crores:|24 Lakhs plus 0.01% of the effective capital in excess of Rs. 250 crores:]| ----- _Explanation.— It is hereby clarified that for a period less than one year, the limits shall be pro-rated._ (B) In case of a managerial person who is functioning in a professional capacity, [1][remuneration as per item (A) may be paid], if such managerial person is not having any interest in the capital of the company or its holding company or any of its subsidiaries directly or indirectly or through any other statutory structures and not having any direct or indirect interest or related to the directors or promoters of the company or its holding company or any of its subsidiaries at any time during the last two years before or on or after the date of appointment and possesses graduate level qualification with expertise and specialised knowledge in the field in which the company operates: Provided that any employee of a company holding shares of the company not exceeding 0.5% of its paid up share capital under any scheme formulated for allotment of shares to such employees including Employees Stock Option Plan or by way of qualification shall be deemed to be a person not having any interest in the capital of the company: Provided further that the limits specified under items (A) and (B) of this section shall apply, if (i) payment of remuneration is approved by a resolution passed by the Board and, in the case of a company covered under sub-section (1) of section 178 also by the Nomination and Remuneration Committee; (ii) 2[the company has not committed any default in payment of dues to any bank or public financial institution or non-convertible debenture holders or any other secured creditor, and in case of default, the prior approval of the bank or public financial institution concerned or the non-convertible debenture holders or other secured creditor, as the case may be, shall be obtained by the company before obtaining the approval in the general meeting;] (iii) an ordinary resolution or a special resolution, as the case may be, has been passed for payment of remuneration as per [3]*** item (A) or a special resolution has been passed for payment of remuneration as per item (B), at the general meeting of the company for a period not exceeding three years. (iv) a statement along with a notice calling the general meeting referred to in clause (iii) is given to the shareholders containing the following information, namely: I. General information: (1) Nature of industry (2) Date or expected date of commencement of commercial production (3) In case of new companies, expected date of commencement of activities as per project approved by financial institutions appearing in the prospectus (4) Financial performance based on given indicators (5) Foreign investments or collaborations, if any. II. Information about the appointee: (1) Background details (2) Past remuneration (3) Recognition or awards (4) Job profile and his suitability (5) Remuneration proposed (6) Comparative remuneration profile with respect to industry, size of the company, profile of the position and person (in case of expatriates the relevant details would be with respect to the country of his origin) (7) Pecuniary relationship directly or indirectly with the company, or relationship with the managerial personnel, if any. 1. Subs. by Notification No. S.O. 4822(E), dated 12th September, 2018, for “no approval of Central Government is required” (w.e.f. 12-9-2018). 2. Subs. by ibid., for clause (ii) (w.e.f. 12-9-2018). 3. The words “the limits laid down in” omitted by ibid., (w.e..f 12-9-2018). 363 ----- III. Other information: (1) Reasons of loss or inadequate profits (2) Steps taken or proposed to be taken for improvement (3) Expected increase in productivity and profits in measurable terms IV. Disclosures: The following disclosures shall be mentioned in the Board of Director’s report under the heading “Corporate Governance”, if any, attached to the financial statement: (i) all elements of remuneration package such as salary, benefits, bonuses, stock options, pension, etc., of all the directors; (ii) details of fixed component and performance linked incentives along with the performance criteria; (iii) service contracts, notice period, severance fees; and (iv) stock option details, if any, and whether the same has been issued at a discount as well as the period over which accrued and over which exercisable. **_Explanation: For the purposes of Section II of this part, “Statutory Structure” means any entity which is entitled_** to hold shares in any company formed under any statute. ] **Section III.— Remuneration payable by companies having no profit or inadequate** [1]***profit in **certain special circumstances:** In the following circumstances a company may, [1]***, pay remuneration to a managerial person [2][or other director] in excess of the amounts provided in Section II above:— (a) where the remuneration in excess of the limits specified in Section I or Section II is paid by any other company and that other company is either a foreign company or has got the approval of its shareholders in general meeting to make such payment, and treats this amount as managerial remuneration for the purpose of section 197 and the total managerial remuneration payable by such other company to its managerial persons including such amount or amounts is within permissible limits under section 197. 3[(b) where the company— (i) is a newly incorporated company, for a period of seven years from the date of its incorporation, or (ii) is a sick company, for whom a scheme of revival or rehabilitation has been ordered by the Board for Industrial and Financial Reconstruction for a period of five years from the date of sanction of scheme of revival, or (iii) is a company in relation to which a resolution plan has been approved by the National Company Law Tribunal under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) for a period of five years from the date of such approval, it may pay [4][any remuneration to its managerial persons [2][or other directors]].] (c) where remuneration of a managerial person [2][or other director] exceeds the limits in Section II but the remuneration has been fixed by the Board for Industrial and Financial Reconstruction or the National Company Law Tribunal: Provided that the limits under this Section shall be applicable subject to meeting all the conditions specified under Section II and the following additional conditions:— 1. The words “without Central Government approval” omitted by Notification No. S.O. 4822(E), dated 12th September, 2018 (w.e.f. 12-9-2018). 2. Ins. by Notification No. S.O. 1256(E), dated 18[th] March, 2021 (w.e.f. 18-3-2021). 3. Subs. by Act 31 of 2016, s. 255 and the Eleventh Schedule, for clause (b) (w.e.f. 15-11-2016). 4. Subs. by Notification No. S.O. 4822(E), dated 12th September, 2018, for “remuneration up to two times the amount permissible under Section II” (w.e.f. 12-9-2018). 364 ----- (i) except as provided in para (a) of this Section, the managerial person is not receiving remuneration from any other company; (ii) the auditor or Company Secretary of the company or where the company has not appointed a Secretary, a Secretary in whole-time practice, certifies that all secured creditors and term lenders have stated in writing that they have no objection for the appointment of the managerial person [1][or other director] as well as the quantum of remuneration and such certificate is filed along with the return as prescribed under sub-section (4) of section 196. (iii) the auditor or Company Secretary or where the company has not appointed a secretary, a secretary in whole-time practice certifies that there is no default on payments to any creditors, and all dues to deposit holders are being settled on time. **2*** ***** ***** ***** ***** 1[Explanation.-For the purposes of Section I, Section II and Section III, the term “or other director” shall mean a non-executive director or an independent director.] **Section IV.— Perquisites not included in managerial remuneration:** 1. A managerial person shall be eligible for the following perquisites which shall not be included in the computation of the ceiling on remuneration specified in Section II and Section III:— (a) contribution to provident fund, superannuation fund or annuity fund to the extent these either singly or put together are not taxable under the Income-tax Act, 1961(43 of 1961); (b) gratuity payable at a rate not exceeding half a month’s salary for each completed year of service; and (c) encashment of leave at the end of the tenure. 2. In addition to the perquisites specified in paragraph 1 of this section, an expatriate managerial person (including a non-resident Indian) shall be eligible to the following perquisites which shall not be included in the computation of the ceiling on remuneration specified in Section II or Section III— (a) Children’s education allowance: In case of children studying in or outside India, an allowance limited to a maximum of Rs. 12,000 per month per child or actual expenses incurred, whichever is less. Such allowance is admissible up to a maximum of two children. (b) Holiday passage for children studying outside India or family staying abroad: Return holiday passage once in a year by economy class or once in two years by first class to children and to the members of the family from the place of their study or stay abroad to India if they are not residing in India, with the managerial person. (c) Leave travel concession: Return passage for self and family in accordance with the rules specified by the company where it is proposed that the leave be spent in home country instead of anywhere in India. _Explanation I.— For the purposes of Section II of this Part, “effective capital” means the aggregate_ of the paid-up share capital (excluding share application money or advances against shares); amount, if any, for the time being standing to the credit of share premium account; reserves and surplus (excluding revaluation reserve); long-term loans and deposits repayable after one year (excluding working capital loans, overdrafts, interest due on loans unless funded, bank guarantee, etc., and other short-term arrangements) as reduced by the aggregate of any investments (except in case of investment by an investment company whose principal business is acquisition of shares, stock, debentures or other securities),accumulated losses and preliminary expenses not written off. _Explanation II.— (a) Where the appointment of the managerial person is made in the year in which_ company has been incorporated, the effective capital shall be calculated as on the date of such appointment; (b) In any other case the effective capital shall be calculated as on the last date of the financial year preceding the financial year in which the appointment of the managerial person is made. 1. Ins. by Notification No. S.O. 1256(E), dated 18[th] March, 2021 (w.e.f. 18-3-2021). 2. Clause (d) omitted by Notification No. S.O. 4822(E), dated 12th September, 2018 (w.e.f. 12-9-2018). 365 ----- _Explanation III.— For the purposes of this Schedule, “family” means the spouse, dependent children_ and dependent parents of the managerial person. _Explanation IV.— The Nomination and Remuneration Committee while approving the remuneration_ under Section II or Section III, shall— (a) take into account, financial position of the company, trend in the industry, appointee’s qualification, experience, past performance, past remuneration, etc.; (b) be in a position to bring about objectivity in determining the remuneration package while striking a balance between the interest of the company and the shareholders. _Explanation V.— For the purposes of this Schedule, “negative effective capital” means the effective_ capital which is calculated in accordance with the provisions contained in Explanation I of this Part is less than zero. _Explanation VI.— For the purposes of this Schedule:—_ 1* - - - (B) “Remuneration” means remuneration as defined in clause (78) of section 2 and includes reimbursement of any direct taxes to the managerial person. **Section V. —Remuneration payable to a managerial person in two companies:** Subject to the provisions of sections I to IV, a managerial person shall draw remuneration from one or both companies, provided that the total remuneration drawn from the companies does not exceed the higher maximum limit admissible from any one of the companies of which he is a managerial person. **PART III** **Provisions applicable to Parts I and II of this Schedule** 1. The appointment and remuneration referred to in Part I and Part II of this Schedule shall be subject to approval by a resolution of the shareholders in general meeting. 2. The auditor or the Secretary of the company or where the company is not required to appointed a Secretary, a Secretary in whole-time practice shall certify that the requirement of this Schedule have been complied with and such certificate shall be incorporated in the return filed with the Registrar under subsection (4) of section 196. **PART IV** The Central Government may, by notification, exempt any class or classes of companies from any of the requirements contained in this Schedule. 1. Clause (A) omitted by Notification No S.O. 4822(E), dated 12th September, 2018 (w.e.f. 12-9-2018). 366 ----- SCHEDULE VI (See sections 55 and 186) The term “infrastructural projects” or “infrastructural facilities” includes the following projects or activities:— (1) Transportation (including inter modal transportation), includes the following:— (a) roads, national highways, state highways, major district roads, other district roads and village roads, including toll roads, bridges, highways, road transport providers and other road-related services; (b) rail system, rail transport providers, metro rail roads and other railway related services; (c) ports (including minor ports and harbours), inland waterways, coastal shipping including shipping lines and other port related services; (d) aviation, including airports, heliports, airlines and other airport related services; (e) logistics services. (2) Agriculture, including the following, namely:— (a) infrastructure related to storage facilities; (b) construction relating to projects involving agro-processing and supply of inputs to agriculture; (c) construction for preservation and storage of processed agro-products, perishable goods such as fruits, vegetables and flowers including testing facilities for quality. (3) Water management, including the following, namely:— (a) water supply or distribution; (b) irrigation; (c) water treatment. (4) Telecommunication, including the following, namely:— (a) basic or cellular, including radio paging; (b) domestic satellite service (i.e., satellite owned and operated by an Indian company for providing telecommunication service); (c) network of trunking, broadband network and internet services. (5) Industrial, commercial and social development and maintenance, including the following, namely:— (a) real estate development, including an industrial park or special economic zone; (b) tourism, including hotels, convention centres and entertainment centres; (c) public markets and buildings, trade fair, convention, exhibition, cultural centres, sports and recreation infrastructure, public gardens and parks; (d) construction of educational institutions and hospitals; (e) other urban development, including solid waste management systems, sanitation and sewerage systems. 367 ----- (6) Power, including the following:— (a) generation of power through thermal, hydro, nuclear, fossil fuel, wind and other renewable sources; (b) transmission, distribution or trading of power by laying a network of new transmission or distribution lines. (7) Petroleum and natural gas, including the following:— (a) exploration and production; (b) import terminals; (c) liquefaction and re-gasification; (d) storage terminals; (e) transmission networks and distribution networks including city gas infrastructure. (8) Housing, including the following:— (a) urban and rural housing including public / mass housing, slum rehabilitation, etc; (b) other allied activities such as drainage, lighting, laying of roads, sanitation and facilities. (9) Other miscellaneous facilities/services, including the following:— (a) mining and related activities; (b) technology related infrastructure; (c) manufacturing of components and materials or any other utilities or facilities required by the infrastructure sector like energy saving devices and metering devices; (d) environment related infrastructure; (e) disaster management services; (f) preservation of monuments and icons; (g) emergency services (including medical, police, fire and rescue). (10) such other facility service as may be prescribed. 368 ----- SCHEDULE VII (See section 135) Activities which may be included by companies in their Corporate Social Responsibility Policies Activities relating to:— 1[(i) eradicating hunger, poverty and malnutrition, 2[promoting health care including preventive health] and sanitation [3][Including contribution to the Swatch Bharat Kosh set-up by the Central Government for the promotion of sanitation] and making available safe drinking water; (ii) promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly, and the differently abled and livelihood enhancement projects; (ii) promoting gender equality, empowering women, setting up homes and hostels for women and orphans; setting up old age homes, day care centres and such other facilities for senior citizens and measures for reducing inequalities faced by socially and economically backward groups; (iv) ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agroforestry, conservation of natural resources and maintaining quality of soil, air and water 4[including contribution to the Clean Ganga Fund set-up by the Central Government for rejuvenation of river Ganga]; (v) protection of national heritage, art and culture including restoration of buildings and sites of historical importance and works of art; setting up public libraries; promotion and development of traditional arts and handicrafts; (vi) measures for the benefit of armed forces veterans, war widows and their dependents; (vii) training to promote rural sports, nationally recognised sports, paralympic sports and Olympic sports; (viii) contribution to the Prime Minister's National Relief Fund [5][or Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund)] or any other fund set up by the Central Government for socio-economic development and relief and welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women; 6[(ix)(a) Contribution to incubators or research and development projects in the field of science, technology, engineering and medicine, funded by the Central Government or State Government or Public Sector Undertaking or any agency of the Central Government or State Government; and (b) Contributions to public funded Universities; Indian Institute of Technology (IITs); National Laboratories and autonomous bodies established under Department of Atomic Energy (DAE); Department of Biotechnology (DBT); Department of Science and Technology (DST); Department of Pharmaceuticals; Ministry of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homoeopathy (AYUSH); Ministry of Electronics and Information Technology and other bodies, namely Defense Research and Development Organisation (DRDO); Indian Council of Agricultural Research (ICAR); Indian Council of Medical Research (ICMR) and Council of Scientific and Industrial Research (CSIR), engaged in conducting research in science, technology, engineering and medicine aimed at promoting Sustainable Development Goals (SDGs)] (x) rural development projects.] 7[(xi) slum are development. 1. Subs. by Notification No. G.S.R. 130(E), dated 27th February 2014, for item (i) to (x) (w.e.f. 1-4-2014). 2. Subs. by Notification No. G.S.R. 261(E), dated 31st March 2014 for “promoting preventive health care” (w.e.f. 31-3 2014). 3. Ins. by Notification No. G.S.R. 741(E), dated by 24th October, 2014 (w.e.f. 24-10-2014). 4. Ins. by ibid. (w.e.f. 24-10-2014). 5. Ins. by Notification No. G.S.R. 313(E), dated 26th May, 2020 (w.e.f. 28-03-2020). 6. Subs. by Notification No. G.S.R. 525(E), dated 24[th] August, 2020 (w.e.f. 24-08-2020). 7. Ins. by Notification No. G.S.R. 568(E), dated by 6th August 2016. 369 ----- _Explanation.— For the purposes of this item, the term ‘slum area’ shall mean any area declared as_ such by the Central Government or any State Government or any other competent authority under any law for the time being in force.] 1[(xii) disaster management, including relief, rehabilitation and reconstruction activities.] 1. Ins. by Notification No. G.S.R. 390(E), dated 30th May, 2019 (w.e.f. 30-5-2019). 370 -----

10-Sep-2013

20

The National Food Security Act, 2013

https://www.indiacode.nic.in/bitstream/123456789/2113/1/201320.pdf

central

# THE NATIONAL FOOD SECURITY ACT, 2013 ________________ ARRANGEMENT OF SECTIONS _______________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II PROVISIONS FOR FOOD SECURITY 3. Right to receive foodgrains at subsidised prices by persons belonging to eligible households under Targeted Public Distribution System. 4. Nutritional support to pregnant women and lactating mothers. 5. Nutritional support to children. 6. Prevention and management of child malnutrition. 7. Implementation of schemes for realisation of entitlements. CHAPTER III FOOD SECURITY ALLOWANCE 8. Right to receive food security allowance in certain cases. CHAPTER IV IDENTIFICATION OF ELIGIBLE HOUSEHOLDS 9. Coverage of population under Targeted Public Distribution System. 10. State Government to prepare guidelines and to identify priority households. 11. Publication and display of list of eligible households. CHAPTER V REFORMS IN TARGETED PUBLIC DISTRIBUTION SYSTEM 12. Reforms in Targeted Public Distribution System. 1 ----- CHAPTER VI WOMEN EMPOWERMENT SECTIONS 13. Women of eighteen years of age or above to be head of household for purpose of issue of ration cards. CHAPTER VII GRIEVANCE REDRESSAL MECHANISM 14. Internal grievance redressal mechanism. 15. District Grievance Redressal Officer. 16. State Food Commission. 17. Salary and allowances of Chairperson, Member, Member-Secretary and other staff of State Commission. 18. Designation of any Commission or body to function as State Commission. 19. Joint State Food Commission. 20. Powers relating to inquiries. 21. Vacancies, etc., not to invalidate proceedings of State Commission. CHAPTER VIII OBLIGATIONS OF CENTRAL GOVERNMENT FOR FOOD SECURITY 22. Central Government to allocate required quantity of foodgrains from central pool to State Governments. 23. Provisions for funds by Central Government to State Government in certain cases. CHAPTER IX OBLIGATIONS OF STATE GOVERNMENT FOR FOOD SECURITY 24. Implementation and monitoring of schemes for ensuring food security. CHAPTER X OBLIGATIONS OF LOCAL AUTHORITIES 25. Implementation of Targeted Public Distribution System by local authority in their areas. 26. Obligations of local authority. CHAPTER XI TRANSPARENCY AND ACCOUNTABILITY 27. Disclosure of records of Targeted Public Distribution System. 28. Conduct of social audit. 29. Setting up of Vigilance Committees. 2 ----- CHAPTER XII PROVISIONS FOR ADVANCING FOOD SECURITY SECTIONS 30. Food security for people living in remote, hilly and tribal areas. 31. Steps to further advance food and nutritional security. CHAPTER XIII MISCELLANEOUS 32. Other welfare schemes. 33. Penalties. 34. Power to adjudicate. 35. Power to delegate by Central Government and State Government. 36. Act to have overriding effect. 37. Power to amend Schedules. 38. Power of Central Government to give directions. 39. Power of Central Government to make rules. 40. Power of State Government to make rules. 41. Transitory provisions for schemes, guidelines, etc. 42. Power to remove difficulties. 43. Utilisation of institutional mechanism for other purposes. 44. _Force Majeure._ 45. Repeal and savings. SCHEDULE I. SCHEDULE II. SCHEDULE III. SCHEDULE IV. 3 ----- # THE NATIONAL FOOD SECURITY ACT, 2013 ACT NO. 20 OF 2013 [10th September, 2013.] # An Act to provide for food and nutritional security in human life cycle approach, by ensuring access to adequate quantity of quality food at affordable prices to people to live a life with dignity and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Sixty-fourth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the National Food Security** Act, 2013. (2) It extends to the whole of India. (3) Save as otherwise provided, it shall be deemed to have come into force on the 5th day of July, 2013. **2. Definitions.—In this Act, unless the context otherwise requires,—** (1) "anganwadi" means a child care and development center set up under the Integrated Child Development Services Scheme of the Central Government to render services covered under section 4, clause (a) of sub-section (1) of section 5 and section 6; (2) "central pool" means the stock of food grains which is,— (i) procured by the Central Government and the State Governments through minimum support price operations; (ii) maintained for allocations under the Targeted Public Distribution System, other welfare schemes, including calamity relief and such other schemes; (iii) kept as reserves for schemes referred to in sub-clause (ii); (3) "eligible households" means households covered under the priority households and the Antyodaya Anna Yojana referred to in sub-section (1) of section 3; (4) "fair price shop" means a shop which has been licensed to distribute essential commodities by an order issued under section 3 of the Essential Commodities Act, 1955 (10 of 1955), to the ration card holders under the Targeted Public Distribution System; (5) "foodgrains" means rice, wheat or coarse grains or any combination thereof conforming to such quality norms as may be determined, by order, by the Central Government from time to time; (6) "food security" means the supply of the entitled quantity of foodgrains and meal specified under Chapter II; (7) "food security allowance" means the amount of money to be paid by the concerned State Government to the entitled persons under section 8; (8) "local authority" includes Panchayat, municipality, district board, cantonment board, town planning authority and in the States of Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura where Panchayats do not exist, the village council or committee or any other body, by whatever name called, which is authorised under the Constitution or any law for the time being in force for self 4 ----- governance or any other authority or body vested with the control and management of civic services, within a specified local area; (9) "meal" means hot cooked or pre-cooked and heated before its service meal or take home ration, as may be prescribed by the Central Government; (10) "minimum support price" means the assured price announced by the Central Government at which foodgrains are procured from farmers by the Central Government and the State Governments and their agencies, for the central pool; (11) "notification" means a notification issued under this Act and published in the Official Gazette; (12) "other welfare schemes" means such Government schemes, in addition to the Targeted Public Distribution System, under which foodgrains or meals are supplied as part of the schemes; (13) "person with disability" means a person defined as such in clause (t) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996); (14) "priority households" means households identified as such under section 10; (15) "prescribed" means prescribed by rules made under this Act; (16) "ration card" means a document issued under an order or authority of the State Government for the purchase of essential commodities from the fair price shops under the Targeted Public Distribution System; (17) "rural area" means any area in a State except those areas covered by any urban local body or a cantonment board established or constituted under any law for the time being in force; (18) "Schedule" means a Schedule appended to this Act; (19) "senior citizen" means a person defined as such under clause (h) of section 2 of the Maintenance and Welfare of Parents and Senior Citizens Act, 2007 (56 of 2007); (20) "social audit" means the process in which people collectively monitor and evaluate the planning and implementation of a programme or scheme; (21) "State Commission" means the State Food Commission constituted under section 16; (22) "State Government", in relation to a Union territory, means the Administrator thereof appointed under article 239 of the Constitution; (23) "Targeted Public Distribution System" means the system for distribution of essential commodities to the ration card holders through fair price shops; (24) "Vigilance Committee" means a committee constituted under section 29 to supervise the implementation of all schemes under this Act; (25) the words and expressions not defined here but defined in the Essential Commodities Act, 1955 (10 of 1955), or any other relevant Act shall have the meaning respectively assigned to them in those Acts. CHAPTER II PROVISIONS FOR FOOD SECURITY **3. Right to receive foodgrains at subsidised prices by persons belonging to eligible households** **under Targeted Public Distribution System.—(1) Every person belonging to priority households,** identified under sub-section (1) of section 10, shall be entitled to receive five kilograms of foodgrains per person per month at subsidised prices specified in Schedule I from the State Government under the Targeted Public Distribution System: 5 ----- Provided that the households covered under Antyodaya Anna Yojana shall, to such extent as may be specified by the Central Government for each State in the said scheme, be entitled to thirty-five kilograms of foodgrains per household per month at the prices specified in Schedule I: Provided further that if annual allocation of foodgrains to any State under the Act is less than the average annual off take of foodgrains for last three years under normal Targeted Public Distribution System, the same shall be protected at prices as may be determined by the Central Government and the State shall be allocated foodgrains as specified in Schedule IV. _Explanation.— For the purpose of this section, the "Antyodaya Anna Yojana" means, the scheme by_ the said name launched by the Central Government on the 25th day of December, 2000; and as modified from time to time. (2) The entitlements of the persons belonging to the eligible households referred to in sub-section (1) at subsidised prices shall extend up to seventy-five per cent. of the rural population and up to fifty per cent. of the urban population. (3) Subject to sub-section (1), the State Government may provide to the persons belonging to eligible households, wheat flour in lieu of the entitled quantity of foodgrains in accordance with such guidelines as may be specified by the Central Government. **4. Nutritional support to pregnant women and lactating mothers.—Subject to such schemes as** may be framed by the Central Government, every pregnant woman and lactating mother shall be entitled to— (a) meal, free of charge, during pregnancy and six months after the child birth, through the local _anganwadi, so as to meet the nutritional standards specified in Schedule II; and_ (b) maternity benefit of not less than rupees six thousand, in such instalments as may be prescribed by the Central Government: Provided that all pregnant women and lactating mothers in regular employment with the Central Government or State Governments or Public Sector Undertakings or those who are in receipt of similar benefits under any law for the time being in force shall not be entitled to benefits specified in clause (b). **5. Nutritional support to children.—(1) Subject to the provisions contained in clause (b), every** child up to the age of fourteen years shall have the following entitlements for his nutritional needs, namely:— (a) in the case of children in the age group of six months to six years, age appropriate meal, free of charge, through the local anganwadi so as to meet the nutritional standards specified in Schedule II: Provided that for children below the age of six months, exclusive breast feeding shall be promoted; (b) in the case of children, up to class VIII or within the age group of six to fourteen years, whichever is applicable, one mid-day meal, free of charge, everyday, except on school holidays, in all schools run by local bodies, Government and Government aided schools, so as to meet the nutritional standards specified in Schedule II. (2) Every school, referred to in clause (b) of sub-section (1), and anganwadi shall have facilities for cooking meals, drinking water and sanitation: Provided that in urban areas facilities of centralised kitchens for cooking meals may be used, wherever required, as per the guidelines issued by the Central Government. 6 ----- **6. Prevention and management of child malnutrition.—The State Government shall, through the** local anganwadi, identify and provide meals, free of charge, to children who suffer from malnutrition, so as to meet the nutritional standards specified in Schedule II. **7. Implementation of Schemes for realisation of entitlements.—The State Governments shall** implement schemes covering entitlements under sections 4, 5 and section 6 in accordance with the guidelines, including cost sharing, between the Central Government and the State Governments in such manner as may be prescribed by the Central Government. CHAPTER III FOOD SECURITY ALLOWANCE **8. Right to receive food security allowance in certain cases.—** In case of non-supply of the entitled quantities of foodgrains or meals to entitled persons under Chapter II, such persons shall be entitled to receive such food security allowance from the concerned State Government to be paid to each person, within such time and manner as may be prescribed by the Central Government. CHAPTER IV IDENTIFICATION OF ELIGIBLE HOUSEHOLDS **9. Coverage of population under Targeted Public Distribution System.—** The percentage coverage under the Targeted Public Distribution System in rural and urban areas for each State shall, subject to sub-section (2) of section 3, be determined by the Central Government and the total number of persons to be covered in such rural and urban areas of the State shall be calculated on the basis of the population estimates as per the census of which the relevant figures have been published. **10. State Government to prepare guidelines and to identify priority households.—** (1) The State Government shall, within the number of persons determined under section 9 for the rural and urban areas, identify— (a) the households to be covered under the Antyodaya Anna Yojana to the extent specified under sub-section (1) of section 3, in accordance with the guidelines applicable to the said scheme; (b) the remaining households as priority households to be covered under the Targeted Public Distribution System, in accordance with such guidelines as the State Government may specify: Provided that the State Government may, as soon as possible, but within such period not exceeding three hundred and sixty-five days, after the commencement of the Act, identify the eligible households in accordance with the guidelines framed under this sub-section: Provided further that the State Government shall continue to receive the allocation of foodgrains from the Central Government under the existing Targeted Public Distribution System, till the identification of such households is complete. (2) The State Government shall update the list of eligible households, within the number of persons determined under section 9 for the rural and urban areas, in accordance with the guidelines framed under sub-section (1). **11. Publication and display of list of eligible households.—The State Government shall place the** list of the identified eligible households in the public domain and display it prominently. CHAPTER V REFORMS IN TARGETED PUBLIC DISTRIBUTION SYSTEM **12. Reforms in Targeted Public Distribution System.—(1) The Central and State Governments** shall endeavour to progressively undertake necessary reforms in the Targeted Public Distribution System in consonance with the role envisaged for them in this Act. 7 ----- (2) The reforms shall, inter alia, include— (a) doorstep delivery of foodgrains to the Targeted Public Distribution System outlets; (b) application of information and communication technology tools including end-to-end computerisation in order to ensure transparent recording of transactions at all levels, and to prevent diversion; (c) leveraging ''aadhaar'' for unique identification, with biometric information of entitled beneficiaries for proper targeting of benefits under this Act; (d) full transparency of records; (e) preference to public institutions or public bodies such as Panchayats, selfhelp groups, co operatives, in licensing of fair price shops and management of fair price shops by women or their collectives; (f) diversification of commodities distributed under the Public Distribution System over a period of time; (g) support to local public distribution models and grains banks; (h) introducing schemes, such as, cash transfer, food coupons, or other schemes, to the targeted beneficiaries in order to ensure their foodgrain entitlements specified in Chapter II, in such area and manner as may be prescribed by the Central Government. CHAPTER VI WOMEN EMPOWERMENT **13. Women of eighteen years of age or above to be head of household for purpose of issue of** **ration cards.—(1) The eldest woman who is not less than eighteen years of age, in every eligible** household, shall be head of the household for the purpose of issue of ration cards. (2) Where a household at any time does not have a woman or a woman of eighteen years of age or above, but has a female member below the age of eighteen years, then, the eldest male member of the household shall be the head of the household for the purpose of issue of ration card and the female member, on attaining the age of eighteen years, shall become the head of the household for such ration cards in place of such male member. CHAPTER VII GRIEVANCE REDRESSAL MECHANISM **14. Internal grievance redressal mechanism.—Every State Government shall put in place an** internal grievance redressal mechanism which may include call centres, help lines, designation of nodal officers, or such other mechanism as may be prescribed. **15. District Grievance Redressal Officer.—(1) The State Government shall appoint or designate,** for each district, an officer to be the District Grievance Redressal Officer for expeditious and effective redressal of grievances of the aggrieved persons in matters relating to distribution of entitled foodgrains or meals under Chapter II, and to enforce the entitlements under this Act. (2) The qualifications for appointment as District Grievance Redressal Officer and its powers shall be such as may be prescribed by the State Government. (3) The method and terms and conditions of appointment of the District Grievance Redressal Officer shall be such as may be prescribed by the State Government. 8 ----- (4) The State Government shall provide for the salary and allowances of the District Grievance Redressal Officer and other staff and such other expenditure as may be considered necessary for their proper functioning. (5) The officer referred to in sub-section (1) shall hear complaints regarding non-distribution of entitled foodgrains or meals, and matters relating thereto, and take necessary action for their redressal in such manner and within such time as may be prescribed by the State Government. (6) Any complainant or the officer or authority against whom any order has been passed by officer referred to in sub-section (1), who is not satisfied with the redressal of grievance may file an appeal against such order before the State Commission. (7) Every appeal under sub-section (6) shall be filed in such manner and within such time as may be prescribed by the State Government. **16. State Food Commission.—(1) Every State Government shall, by notification, constitute a State** Food Commission for the purpose of monitoring and review of implementation of this Act. (2) The State Commission shall consist of— (a) a Chairperson; (b) five other Members; and (c) a Member-Secretary, who shall be an officer of the State Government not below the rank of Joint Secretary to that Government: Provided that there shall be at least two women, whether Chairperson, Member or Member Secretary: Provided further that there shall be one person belonging to the Scheduled Castes and one person belonging to the Scheduled Tribes, whether Chairperson, Member or Member-Secretary. (3) The Chairperson and other Members shall be appointed from amongst persons— (a) who are or have been member of the All India Services or any other civil services of the Union or State or holding a civil post under the Union or State having knowledge and experience in matters relating to food security, policy making and administration in the field of agriculture, civil supplies, nutrition, health or any allied field; or (b) of eminence in public life with wide knowledge and experience in agriculture, law, human rights, social service, management, nutrition, health, food policy or public administration; or (c) who have a proven record of work relating to the improvement of the food and nutrition rights of the poor. (4) The Chairperson and every other Member shall hold office for a term not exceeding five years from the date on which he enters upon his office and shall be eligible for reappointment: Provided that no person shall hold office as the Chairperson or other Member after he has attained the age of sixty-five years. (5) The method of appointment and other terms and conditions subject to which the Chairperson, other Members and Member-Secretary of the State Commission may be appointed, and time, place and procedure of meetings of the State Commission (including the quorum at such meetings) and its powers, shall be such as may be prescribed by the State Government. (6) The State Commission shall undertake the following functions, namely:— (a) monitor and evaluate the implementation of this Act, in relation to the State; 9 ----- (b) either _suo motu_ or on receipt of complaint inquire into violations of entitlements provided under Chapter II; (c) give advice to the State Government on effective implementation of this Act; (d) give advice to the State Government, their agencies, autonomous bodies as well as non governmental organisations involved in delivery of relevant services, for the effective implementation of food and nutrition related schemes, to enable individuals to fully access their entitlements specified in this Act; (e) hear appeals against orders of the District Grievance Redressal Officer; (f) prepare annual reports which shall be laid before the State Legislature by the State Government. (7) The State Government shall make available to the State Commission, such administrative and technical staff, as it may consider necessary for proper functioning of the State Commission. (8) The method of appointment of the staff under sub-section (7), their salaries, allowances and conditions of service shall be such, as may be prescribed by the State Government. (9) The State Government may remove from office the Chairperson or any Member who— (a) is, or at any time has been, adjudged as an insolvent; or (b) has become physically or mentally incapable of acting as a member; or (c) has been convicted of an offence which, in the opinion of the State Government, involves moral turpitude; or (d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a member; or (e) has so abused his position as to render his continuation in office detrimental to the public interest. (10) No such Chairperson or Member shall be removed under clause (d) or clause (e) of sub-section (9) unless he has been given a reasonable opportunity of being heard in the matter. **17. Salary and allowances of Chairperson, Member, Member-Secretary and other staff of State** **Commission.—The State Government shall provide for salary and allowances of Chairperson, other** Members, Member-Secretary, support staff, and other administrative expenses required for proper functioning of the State Commission. **18. Designation of any Commission or body to function as State Commission.—The State** Government may, if considers it necessary, by notification, designate any statutory commission or a body to exercise the powers and perform the functions of the State Commission referred to in section 16. **19. Joint State Food Commission.—Notwithstanding anything contained in sub-section (1) of** section 16, two or more States may have a Joint State Food Commission for the purposes of this Act with the approval of the Central Government. **20. Powers relating to inquiries.—(1) The State Commission shall, while inquiring into any matter** referred to in clauses (b) and (e) of sub-section (6) of section 16, have all the powers of a civil court while trying a suit under the Code of Civil Procedure, 1908 (5 of 1908) and, in particular, in respect of the following matters, namely:— (a) summoning and enforcing the attendance of any person and examining him on oath; (b) discovery and production of any document; 10 ----- (c) receiving evidence on affidavits; (d) requisitioning any public record or copy thereof from any court or office; and (e) issuing commissions for the examination of witnesses or documents. (2) The State Commission shall have the power to forward any case to a Magistrate having jurisdiction to try the same and the Magistrate to whom any such case is forwarded shall proceed to hear the complaint against the accused as if the case has been forwarded to him under section 346 of the Code of Criminal Procedure, 1973 (2 of 1974). **21. Vacancies, etc., not to invalidate proceedings of State Commission.—No act or proceeding of** the State Commission shall be invalid merely by reason of— (a) any vacancy in, or any defect in the constitution of, the State Commission; or (b) any defect in the appointment of a person as the Chairperson or a Member of the State Commission; or (c) any irregularity in the procedure of the State Commission not affecting the merits of the case. CHAPTER VIII OBLIGATIONS OF CENTRAL GOVERNMENT FOR FOOD SECURITY **22. Central Government to allocate required quantity of foodgrains from central pool to State** **Governments.—(1) The Central Government shall, for ensuring the regular supply of foodgrains to** persons belonging to eligible households, allocate from the central pool the required quantity of foodgrains to the State Governments under the Targeted Public Distribution System, as per the entitlements under section 3 and at prices specified in Schedule I. (2) The Central Government shall allocate foodgrains in accordance with the number of persons belonging to the eligible households identified in each State under section 10. (3) The Central Government shall provide foodgrains in respect of entitlements under sections 4, 5 and section 6, to the State Governments, at prices specified for the persons belonging to eligible households in Schedule I. (4) Without prejudice to sub-section (1), the Central Government shall,— (a) procure foodgrains for the central pool through its own agencies and the State Governments and their agencies; (b) allocate foodgrains to the States; (c) provide for transportation of foodgrains, as per allocation, to the depots designated by the Central Government in each State; (d) provide assistance to the State Government in meeting the expenditure incurred by it towards intra-State movement, handling of foodgrains and margins paid to fair price shop dealers, in accordance with such norms and manner as may be prescribed by the Central Government; and (e) create and maintain required modern and scientific storage facilities at various levels. **23. Provisions for funds by Central Government to State Government in certain cases.—In case** of short supply of foodgrains from the central pool to a State, the Central Government shall provide funds to the extent of short supply to the State Government for meeting obligations under Chapter II in such manner as may be prescribed by the Central Government. 11 ----- CHAPTER IX OBLIGATIONS OF STATE GOVERNMENT FOR FOOD SECURITY **24. Implementation and monitoring of schemes for ensuring food security.—(1) The State** Government shall be responsible for implementation and monitoring of the schemes of various Ministries and Departments of the Central Government in accordance with guidelines issued by the Central Government for each scheme, and their own schemes, for ensuring food security to the targeted beneficiaries in their State. (2) Under the Targeted Public Distribution System, it shall be the duty of the State Government to— (a) take delivery of foodgrains from the designated depots of the Central Government in the State, at the prices specified in Schedule I, organise intra-State allocations for delivery of the allocated foodgrains through their authorised agencies at the door-step of each fair price shop; and (b) ensure actual delivery or supply of the foodgrains to the entitled persons at the prices specified in Schedule I. (3) For foodgrain requirements in respect of entitlements under sections 4, 5 and section 6, it shall be the responsibility of the State Government to take delivery of foodgrains from the designated depots of the Central Government in the State, at the prices specified in Schedule I for persons belonging to eligible households and ensure actual delivery of entitled benefits, as specified in the aforesaid sections. (4) In case of non-supply of the entitled quantities of foodgrains or meals to entitled persons under Chapter II, the State Government shall be responsible for payment of food security allowance specified in section 8. (5) For efficient operations of the Targeted Public Distribution System, every State Government shall,— (a) create and maintain scientific storage facilities at the State, District and Block levels, being sufficient to accommodate foodgrains required under the Targeted Public Distribution System and other food based welfare schemes; (b) suitably strengthen capacities of their Food and Civil Supplies Corporations and other designated agencies; (c) establish institutionalised licensing arrangements for fair price shops in accordance with the relevant provisions of the Public Distribution System (Control) Order, 2001 made under the Essential Commodities Act, 1955 (10 of 1955), as amended from time. CHAPTER X OBLIGATIONS OF LOCAL AUTHORITIES **25. Implementation of Targeted Public Distribution System by local authority in their areas.—** (1) The local authorities shall be responsible for the proper implementation of this Act in their respective areas. (2) Without prejudice to sub-section (1), the State Government may assign, by notification, additional responsibilities for implementation of the Targeted Public Distribution System to the local authority. **26. Obligations of local authority.—In implementing different schemes of the Ministries and** Departments of the Central Government and the State Governments, prepared to implement provisions of this Act, the local authorities shall be responsible for discharging such duties and responsibilities as may be assigned to them, by notification, by the respective State Governments. 12 ----- CHAPTER XI TRANSPARENCY AND ACCOUNTABILITY **27. Disclosure of records of Targeted Public Distribution System.—All Targeted Public** Distribution System related records shall be placed in the public domain and kept open for inspection to the public, in such manner as may be prescribed by the State Government. **28. Conduct of social audit.—(1) Every local authority, or any other authority or body, as may be** authorised by the State Government, shall conduct or cause to be conducted, periodic social audits on the functioning of fair price shops, Targeted Public Distribution System and other welfare schemes, and cause to publicise its findings and take necessary action, in such manner as may be prescribed by the State Government. (2) The Central Government may, if it considers necessary, conduct or cause to be conducted social audit through independent agencies having experience in conduct of such audits. **29. Setting up of Vigilance Committees.—(1) For ensuring transparency and proper functioning of** the Targeted Public Distribution System and accountability of the functionaries in such system, every State Government shall set up Vigilance Committees as specified in the Public Distribution System (Control) Order, 2001, made under the Essential Commodities Act, 1955 (10 of 1955), as amended from time to time, at the State, District, Block and fair price shop levels consisting of such persons, as may be prescribed by the State Government giving due representation to the local authorities, the Scheduled Castes, the Scheduled Tribes, women and destitute persons or persons with disability. (2) The Vigilance Committees shall perform the following functions, namely:— (a) regularly supervise the implementation of all schemes under this Act; (b) inform the District Grievance Redressal Officer, in writing, of any violation of the provisions of this Act; and (c) inform the District Grievance Redressal Officer, in writing, of any malpractice or misappropriation of funds found by it. CHAPTER XII PROVISIONS FOR ADVANCING FOOD SECURITY **30. Food security for people living in remote, hilly and tribal areas.—The Central Government** and the State Governments shall, while implementing the provisions of this Act and the schemes for meeting specified entitlements, give special focus to the needs of the vulnerable groups especially in remote areas and other areas which are difficult to access, hilly and tribal areas for ensuring their food security. **31. Steps to further advance food and nutritional security.—The Central Government, the State** Governments and local authorities shall, for the purpose of advancing food and nutritional security, strive to progressively realise the objectives specified in Schedule III. CHAPTER XIII MISCELLANEOUS **32. Other welfare schemes.—(1) The provisions of this Act shall not preclude the Central** Government or the State Government from continuing or formulating other food based welfare schemes. (2) Notwithstanding anything contained in this Act, the State Government may, continue with or formulate food or nutrition based plans or schemes providing for benefits higher than the benefits provided under this Act, from its own resources. 13 ----- **33. Penalties.—Any public servant or authority found guilty, by the State Commission at the time of** deciding any complaint or appeal, of failing to provide the relief recommended by the District Grievance Redressal Officer, without reasonable cause, or wilfully ignoring such recommendation, shall be liable to penalty not exceeding five thousand rupees: Provided that the public servant or the public authority, as the case may be, shall be given a reasonable opportunity of being heard before any penalty is imposed. **34. Power to adjudicate.—(1) For the purpose of adjudging penalty under section 33, the State** Commission shall authorise any of its member to be an adjudicating officer for holding an inquiry in the prescribed manner after giving any person concerned a reasonable opportunity of being heard for the purpose of imposing any penalty. (2) While holding an inquiry the adjudicating officer shall have power to summon and enforce the attendance of any person acquainted with the facts and circumstances of the case to give evidence or to produce any document which in the opinion of the adjudicating officer, may be useful for or relevant to the subject matter of the inquiry and if, on such inquiry, he is satisfied that the person has failed to provide the relief recommended by the District Grievance Redressal Officer, without reasonable cause, or wilfully ignored such recommendation, he may impose such penalty as he thinks fit in accordance with the provisions of section 33. **35. Power to delegate by Central Government and State Government.—(1) The Central** Government may, by notification, direct that the powers exercisable by it (except the power to make rules), in such circumstances and subject to such conditions and limitations, be exercisable also by the State Government or an officer subordinate to the Central Government or the State Government as it may specify in the notification. (2) The State Government may, by notification, direct that the powers exercisable by it (except the power to make rules), in such circumstances and subject to such conditions and limitations, be exercisable also by an officer subordinate to it as it may specify in the notification. **36. Act to have overriding effect.—The provisions of this Act or the schemes made thereunder shall** have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of such law. **37. Power to amend Schedules.—(1) If the Central Government is satisfied that it is necessary or** expedient so to do, it may, by notification, amend Schedule I or Schedule II or Schedule III or Schedule IV and thereupon Schedule I or Schedule II or Schedule III or Schedule IV, as the case may be, shall be deemed to have been amended accordingly. (2) A copy of every notification issued under sub-section (1), shall be laid before each House of Parliament as soon as may be after it is issued. **38. Power of Central Government to give directions.—The Central Government may, from time to** time, give such directions, as it may consider necessary, to the State Governments for the effective implementation of the provisions of this Act and the State Governments shall comply with such directions. **39. Power of Central Government to make rules.—(1) The Central Government may, in** consultation with the State Governments and by notification, make rules to carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) scheme including cost sharing for providing maternity benefit to pregnant women and lactating mothers under clause (b) of section 4; 14 ----- (b) schemes covering entitlements under sections 4, 5 and section 6 including cost sharing under section 7; (c) amount, time and manner of payment of food security allowance to entitled individuals under section 8; (d) introducing schemes of cash transfer, food coupons or other schemes to the targeted beneficiaries in order to ensure their foodgrains entitlements in such areas and manner under clause (h) of sub-section (2) of section 12; (e) the norms and manner of providing assistance to the State Governments in meeting expenditure under clause (d) of sub-section (4) of section 22; (f) manner in which funds shall be provided by the Central Government to the State Governments in case of short supply of foodgrains, under section 23; (g) any other matter which is to be, or may be, prescribed or in respect of which provision is to be made by the Central Government by rules. (3) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **40. Power of State Government to make rules.—(1) The State Government may, by notification,** and subject to the condition of previous publication, and consistent with this Act and the rules made by the Central Government, make rules to carry out the provisions of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) guidelines for identification of priority households under sub-section (1) of section 10; (b) internal grievance redressal mechanism under section 14; (c) qualifications for appointment as District Grievance Redressal Officer and its powers under sub-section (2) of section 15; (d) method and terms and conditions of appointment of the District Grievance Redressal Officer under sub-section (3) of section 15; (e) manner and time limit for hearing complaints by the District Grievance Redressal Officer and the filing of appeals under sub-sections (5) and (7) of section 15; (f) method of appointment and the terms and conditions of appointment of Chairperson, other Members and Member-Secretary of the State Commission, procedure for meetings of the Commission and its powers, under sub-section (5) of section 16; (g) method of appointment of staff of the State Commission, their salaries, allowances and conditions of service under sub-section (8) of section 16; (h) manner in which the Targeted Public Distribution System related records shall be placed in the public domain and kept open for inspection to public under section 27; 15 ----- (i) manner in which the social audit on the functioning of fair price shops, Targeted Public Distribution System and other welfare schemes shall be conducted under section 28; (j) composition of Vigilance Committees under sub-section (1) of section 29; (k) schemes or programmes of the Central Government or the State Governments for utilisation of institutional mechanism under section 43; (l) any other matter which is to be, or may be, prescribed or in respect of which provision is to be made by the State Government by rules. (3) Every rule, notification and guidelines made or issued by the State Government under this Act shall, as soon as may be after it is made or issued, be laid before each House of the State Legislature where there are two Houses, and where there is one House of the State Legislature, before that House. **41. Transitory provisions for schemes, guidelines, etc.—The schemes, guidelines, orders and food** standard, grievance redressal mechanism, vigilance committees, existing on the date of commencement of this Act, shall continue to be in force and operate till such schemes, guidelines, orders and food standard, grievance redressal mechanism, vigilance committees are specified or notified under this Act or the rules made thereunder: Provided that anything done or any action taken under the said schemes, guidelines, orders and food standard, grievance redressal mechanism, or by vigilance committees shall be deemed to have been done or taken under the corresponding provisions of this Act and shall continue to be in force accordingly unless and until superseded by anything done or by any action taken under this Act. **42. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order, published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulty: Provided that no order shall be made under this section after the expiry of two years from the date of commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **43. Utilisation of institutional mechanism for other purposes.—The services of authorities to be** appointed or constituted under sections 15 and 16 may be utilised in the implementation of other schemes or programmes of the Central Government or the State Governments, as may be prescribed by the State Government. **44. Force Majeure.—The Central Government, or as the case may be, the State Government, shall be** liable for a claim by any person entitled under this Act, except in the case of war, flood, drought, fire, cyclone or earthquake affecting the regular supply of foodgrains or meals to such person under this Act: Provided that the Central Government may, in consultation with the Planning Commission, declare whether or not any such situation affecting the regular supply of foodgrains or meals to such person has arisen or exists. **45. Repeal and savings.—(1) The National Food Security Ordinance, 2013 (Ord. 7 of 2013) is** hereby repealed. (2) Notwithstanding such repeal,— (a) anything done, any action taken or any identification of eligible households made; or (b) any right, entitlement, privilege, obligation or liability acquired, accrued or incurred; or (c) any guidelines framed or directions issued; or 16 ----- (d) any investigation, inquiry or any other legal proceeding initiated, conducted or continued in respect of such right, entitlement, privilege, obligation or liability as aforesaid; or (e) any penalty imposed in respect of any offence, under the said Ordinance shall be deemed to have been done, taken, made, acquired, accrued, incurred, framed, issued, initiated, conducted, continued or imposed under the corresponding provisions of this Act. 17 ----- SCHEDULE I [See sections 3(1), 22(1), (3) and 24(2), (3)] SUBSIDISED PRICES UNDER TARGETED PUBLIC DISTRIBUTION SYSTEM Eligible households shall be entitled to foodgrains under section 3 at the subsidised price not exceeding rupees 3 per kg for rice, rupees 2 per kg for wheat and rupee 1 per kg for coarse grains for a period of three years from the date of commencement of this Act; and thereafter, at such price, as may be fixed by the Central Government, from time to time, not exceeding,— (i) the minimum support price for wheat and coarse grains; and (ii) the derived minimum support price for rice, as the case may be. 18 ----- SCHEDULE II [See sections 4(a), 5(1) and 6] NUTRITIONAL STANDARDS _Nutritional standards: The nutritional standards for children in the age group of 6 months to 3 years,_ age group of 3 to 6 years and pregnant women and lactating mothers required to be met by providing “Take Home Rations” or nutritious hot cooked meal in accordance with the Integrated Child Development Services Scheme and nutritional standards for children in lower and upper primary classes under the Mid Day Meal Scheme are as follows: Serial number Category Type of meal2 Calories (Kcal) Protein (g) 1 2 3 4 5 1. Children (6 months to 3 years) Take Home Ration 500 12-15 2. Children (3 to 6 years) Morning Snack and Hot Cooked Meal 500 12-15 3. Children (6 months to 6 years) who are malnourished Take Home Ration 800 20-25 4. Lower primary classes Hot Cooked Meal 450 12 5. Upper primary classes Hot Cooked Meal 700 20 6. Pregnant women and Lactating mothers Take Home Ration 600 18-20 19 ----- SCHEDULE III (See section 31) PROVISIONS FOR ADVANCING FOOD SECURITY (1) Revitalisation of Agriculture— (a) agrarian reforms through measures for securing interests of small and marginal farmers; (b) increase in investments in agriculture, including research and development, extension services, micro and minor irrigation and power to increase productivity and production; (c) ensuring livelihood security to farmers by way of remunerative prices, access to inputs, credit, irrigation, power, crop insurance, etc.; (d) prohibiting unwarranted diversion of land and water from food production. (2) Procurement, Storage and Movement related interventions— (a) incentivising decentralised procurement including procurement of coarse grains; (b) geographical diversification of procurement operations; (c) augmentation of adequate decentralised modern and scientific storage; (d) giving top priority to movement of foodgrains and providing sufficient number of rakes for this purpose, including expanding the line capacity of railways to facilitate foodgrain movement from surplus to consuming regions. (3) Others: Access to— (a) safe and adequate drinking water and sanitation; (b) health care; (c) nutritional, health and education support to adolescent girls; (d) adequate pensions for senior citizens, persons with disability and single women. 20 ----- S. No. SCHEDULE IV [See section 3(1)] STATE-WISE ALLOCATION OF FOODGRAINS Name of the State Quantity (in lakh tons) 1 2 3 1. Andhra Pradesh 32.10 2. Arunachal Pradesh 0.89 3. Assam 16.95 4. Bihar 55.27 5. Chhattisgarh 12.91 6. Delhi 5.73 7. Goa 0.59 8. Gujarat 23.95 9. Haryana 7.95 10. Himachal Pradesh 5.08 11. Jammu and Kashmir 7.51 12. Jharkhand 16.96 13. Karnataka 25.56 14. Kerala 14.25 15. Madhya Pradesh 34.68 16. Maharashtra 45.02 17. Manipur 1.51 18. Meghalaya 1.76 19. Mizoram 0.66 20. Nagaland 1.38 21. Odisha 21.09 22. Punjab 8.70 23. Rajasthan 27.92 24. Sikkim 0.44 25. Tamilnadu 36.78 26. Tripura 2.71 27. Uttar Pradesh 96.15 28. Uttarakhand 5.03 21 ----- 1 2 3 29. West Bengal 38.49 30. Andaman and Nicobar Islands 0.16 31. Chandigarh 0.31 32. Dadra and Nagar Haveli 0.15 33. Daman and Diu 0.07 34. Lakshadweep 0.05 35. Pudducherry 0.50 Total 549.26 ———— 22 -----

18-Sep-2013

25

The Prohibition of Employment as Manual Scavengers and their Rehabilitation Act, 2013

https://www.indiacode.nic.in/bitstream/123456789/2119/1/201325.pdf

central

# THE PROHIBITION OF EMPLOYMENT AS MANUAL SCAVENGERS AND THEIR REHABILITATION ACT, 2013 ________________ ARRANGEMENT OF SECTIONS _______________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. 3. Act to have overriding effect. CHAPTER II IDENTIFICATION OF INSANITARY LATRINES 4. Local authorities to survey insanitary latrines and provide sanitary community latrines. CHAPTER III PROHIBITION OF INSANITARY LATRINES AND EMPLOYMENT AND ENGAGEMENT AS MANUAL SCAVENGER 5. Prohibition of insanitary latrines and employment and engagement of manual scavenger. 6. Contract, agreement, etc., to be void. 7. Prohibition of persons from engagement or employment for hazardous cleaning of sewers and septic tanks. 8. Penalty for contravention of section 5 or section 6. 9. Penalty for contravention of section 7. 10. Limitation of prosecution. CHAPTER IV IDENTIFICATION OF MANUAL SCAVENGERS IN URBAN AND RURAL AREAS AND THEIR REHABILITATION 11. Survey of manual scavengers in urban areas by Municipalities. 12. Application by an urban manual scavenger for identification. 13. Rehabilitation of persons identified as manual scavengers by a Municipality. 14. Survey of manual scavengers in rural areas by Panchayats. 15. Application by a rural manual scavenger for identification. 16. Rehabilitation of persons identified as manual scavengers by a Panchayat. CHAPTER V IMPLEMENTING AUTHORITIES 17. Responsibility of local authorities to ensure elimination of insanitary latrines. 18. Authorities who may be specified for implementing provisions of this Act. 19. Duty of District Magistrate and authorised officers. 20. Appointment of inspectors and their powers. 1 ----- CHAPTER VI PROCEDURE FOR TRIAL SECTIONS 21. Offences to be tried by Executive Magistrate. 22. Offence to be cognizable and non-bailable. 23. Offences by companies. CHAPTER VII VIGILANCE COMMITTEES 24. Vigilance Committees. 25. Functions of Vigilance Committee. 26. State Monitoring Committee. 27. Functions of the State Monitoring Committee. 28. Duty of States or Union territories to send periodic reports to the Central Government. 29. Central Monitoring Committee. 30. Functions of the Central Monitoring Committee. 31. Functions of National Commission for Safai Karamcharis. 32. Power of State Government to designate an appropriate authority to monitor the implementation of this Act. CHAPTER VIII MISCELLANEOUS 33. Duty of local authorities and other agencies to use modern technology for cleaning of sewers, etc. 34. Protection of action taken in good faith. 35. Jurisdiction of civil courts barred. 36. Power of appropriate Government to make rules. 37. Power of Central Government to make model rules. 38. Power to remove difficulties. 39. Power to exempt. 2 ----- # THE PROHIBITION OF EMPLOYMENT AS MANUAL SCAVENGERS AND THEIR REHABILITATION ACT, 2013 ACT NO. 25 OF 2013 [18th September, 2013.] # An Act to provide for the prohibition of employment as manual scavengers, rehabilitation of manual scavengers and their families, and for matters connected therewith or incidental thereto. WHEREAS promoting among the citizens fraternity assuring the dignity of the individual is enshrined as one of the goals in the Preamble to the Constitution; AND WHEREAS the right to live with dignity is also implicit in the Fundamental Rights guaranteed in Part III of the Constitution; AND WHEREAS article 46 of the Constitution, _inter alia,_ provides that the State shall protect the weaker sections, and, particularly, the Scheduled Castes and the Scheduled Tribes from social injustice and all forms of exploitation; AND WHEREAS the dehumanising practice of manual scavenging, arising from the continuing existence of insanitary latrines and a highly iniquitous caste system, still persists in various parts of the country, and the existing laws have not proved adequate in eliminating the twin evils of insanitary latrines and manual scavenging; AND WHEREAS it is necessary to correct the historical injustice and indignity suffered by the manual scavengers, and to rehabilitate them to a life of dignity. BE it enacted by Parliament in the Sixty-fourth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1.** **Short title, extent and commencement.—(1) This Act may be called the Prohibition of** Employment as Manual Scavengers and their Rehabilitation Act, 2013. (2) It extends to the whole of India [1]***. (3) It shall come into force on such date[2] as the Central Government may, by notification in the Official Gazette, appoint: Provided that the date so notified shall not be earlier than sixty days after the date of publication of 3[the said notification] in the Official Gazette. **2.** **Definitions.—(1) In this Act, unless the context otherwise requires,—** (a) “agency” means any agency, other than a local authority, which may undertake sanitation facilities in an area and includes a contractor or a firm or a company which engages in development and maintenance of real estate; (b) “appropriate government”, in relation to Cantonment Boards, railway lands, and lands and buildings owned by the Central Government, a Central Public Sector Undertaking or an autonomous body wholly or substantially funded by the Central Government, means the Central Government and in all other cases, the State Government; (c) “Chief Executive Officer”, in relation to a Municipality or Panchayat, means, its senior-most executive officer, by whatever name called; 1. The words “except the State of Jammu and Kashmir” omitted by Act 34 of 2019, s. 95 and the Fifth Schedule (w.e.f. 31-10-2019). 2. 6th December, 2013, vide notification No. S.O. 2989(E), dated 1st October, 2013, see Gazette of India, Extraordinary, Part II, Sec. 3(ii). 3. Subs. by Act 17 of 2015, s. 3 and the Second Schedule, for “the notification” (w.e.f. 13-5-2015). 3 ----- (d) “hazardous cleaning” by an employee, in relation to a sewer or septic tank, means its manual cleaning by such employee without the employer fulfilling his obligations to provide protective gear and other cleaning devices and ensuring observance of safety precautions, as may be prescribed or provided in any other law, for the time being in force or rules made thereunder; (e) “insanitary latrine” means a latrine which requires human excreta to be cleaned or otherwise handled manually, either _in situ, or in an open drain or pit into which the excreta is discharged or_ flushed out, before the excreta fully decomposes in such manner as may be prescribed: Provided that a water flush latrine in a railway passenger coach, when cleaned by an employee with the help of such devices and using such protective gear, as the Central Government may notify in this behalf, shall not be deemed to be an insanitary latrine. (f) “local authority” means,— (i) a Municipality or a Panchayat, as defined in clause (e) and clause (f) of article 243P of the Constitution, which is responsible for sanitation in its area of jurisdiction; (ii) a Cantonment Board constituted under section 10 of the Cantonments Act, 2006 (41 of 2006); and (iii) a railway authority; (g) “manual scavenger” means a person engaged or employed, at the commencement of this Act or at any time thereafter, by an individual or a local authority or an agency or a contractor, for manually cleaning, carrying, disposing of, or otherwise handling in any manner, human excreta in an insanitary latrine or in an open drain or pit into which the human excreta from the insanitary latrines is disposed of, or on a railway track or in such other spaces or premises, as the Central Government or a State Government may notify, before the excreta fully decomposes in such manner as may be prescribed, and the expression “manual scavenging” shall be construed accordingly. _Explanation.—For the purpose of this clause,—_ (a) “engaged or employed” means being engaged or employed on a regular or contract basis; (b) a person engaged or employed to clean excreta with the help of such devices and using such protective gear, as the Central Government may notify in this behalf, shall not be deemed to be a ‘manual scavenger’; (h) “National Commission for Safai Karmacharis” means the National Commission for Safai Karamcharis constituted under section 3 of the National Commission for Safai Karmacharis Act, 1993 (64 of 1993) and continued by Resolution of the Government of India in the Ministry of Social Justice and Empowerment _vide_ No.17015/18/2003-SCD-VI, dated 24th February, 2004 and as amended from time to time; (i) “notification” means a notification published in the Official Gazette and the expression “notify” shall be construed accordingly; (j) “occupier”, in relation to the premises where an insanitary latrine exists, or someone is employed as a manual scavenger, means the person who, for the time being, is in occupation of such premises; (k) “owner”, in relation to the premises where an insanitary latrine exists or someone is employed as a manual scavenger, means, the person who, for the time being has legal title to such premises; (l) “prescribed” means prescribed by the rules made under this Act; (m) “railway authority” means an authority administering railway land, as may be notified by the Central Government in this behalf; (n) “railway land” shall have the meaning assigned to it in clause (32A) of section 2 of the Railways Act, 1989 (24 of 1989); 4 ----- (o) “sanitary latrine” means a latrine which is not an ‘insanitary latrine’; (p) “septic tank” means a water-tight settling tank or chamber, normally located underground, which is used to receive and hold human excreta, allowing it to decompose through bacterial activity; (q) “sewer” means an underground conduit or pipe for carrying off human excreta, besides other waste matter and drainage wastes; (r) “State Government”, in relation to a Union territory, means the Administrator thereof appointed under article 239 of the Constitution; (s) “survey” means a survey of manual scavengers undertaken in pursuance of section 11 or section 14. (2) Words and expressions used and not defined in this Act, but defined in the Cantonments Act, 2006 (41 of 2006), shall have the same meanings respectively assigned to them in that Act. (3) The reference to a Municipality under Chapters IV to VIII of this Act shall include a reference to, as the case may be, the Cantonment Board or the railway authority, in respect of areas included within the jurisdiction of the Cantonment Board and the railway land, respectively. **3. Act to have overriding effect.—The provisions of this Act shall have effect notwithstanding** anything inconsistent therewith contained in the Employment of Manual Scavengers and Construction of Dry Latrines (Prohibition) Act, 1993 ( 46 of 1993) or in any other law, or in any instrument having effect by virtue of any other law. CHAPTER II IDENTIFICATION OF INSANITARY LATRINES **4.** **Local authorities to survey insanitary latrines and provide sanitary community latrines.—(1)** Every local authority shall,— (a) carry out a survey of insanitary latrines existing within its jurisdiction, and publish a list of such insanitary latrines, in such manner as may be prescribed, within a period of two months from the date of commencement of this Act; (b) give a notice to the occupier, within fifteen days from the date of publication of the list under clause (a), to either demolish the insanitary latrine or convert it into a sanitary latrine, within a period of six months from the date of commencement of this Act: Provided that the local authority may for sufficient reasons to be recorded in writing extend the said period not exceeding three months; (c) construct, within a period not exceeding nine months from the date of commencement of this Act, such number of sanitary community latrines as it considers necessary, in the areas where insanitary latrines have been found. (2) Without prejudice to the provisions contained in sub-section (1), Municipalities, Cantonment Boards and railway authorities shall also construct adequate number of sanitary community latrines, within such period not exceeding three years from the date of commencement of this Act, as the appropriate Government may, by notification, specify, so as to eliminate the practice of open defecation in their jurisdiction. (3) It shall be the responsibility of local authorities to construct community sanitary latrines as specified in sub-sections (1) and (2), and also to make arrangements for their hygienic upkeep at all times. _Explanation.—For the purposes of this section, “community” in relation to railway authorities means_ passengers, staff and other authorised users of railways. 5 ----- CHAPTER III PROHIBITION OF INSANITARY LATRINES AND EMPLOYMENT AND ENGAGEMENT AS MANUAL SCAVENGER **5.** **Prohibition of insanitary latrines and employment and engagement of manual scavenger.—** (1) Notwithstanding anything inconsistent therewith contained in the Employment of Manual Scavengers and Construction of Dry Latrines (Prohibition) Act, 1993 (46 of 1993), no person, local authority or any agency shall, after the date of commencement of this Act,— (a) construct an insanitary latrine; or (b) engage or employ, either directly or indirectly, a manual scavenger, and every person so engaged or employed shall stand discharged immediately from any obligation, express or implied, to do manual scavenging. (2) Every insanitary latrine existing on the date of commencement of this Act, shall either be demolished or be converted into a sanitary latrine, by the occupier at his own cost, before the expiry of the period so specified in clause (b) of sub-section (1) of section 4: Provided that where there are several occupiers in relation to an insanitary latrine, the liability to demolish or convert it shall lie with,— (a) the owner of the premises, in case one of the occupiers happens to be the owner; and (b) all the occupiers, jointly and severally, in all other cases: Provided that the State Government may give assistance for conversion of insanitary latrines into sanitary latrines to occupiers from such categories of persons and on such scale, as it may, by notification, specify: Provided further that non-receipt of State assistance shall not be a valid ground to maintain or use an insanitary latrine, beyond the said period of nine months. (3) If any occupier fails to demolish an insanitary latrine or convert it into a sanitary latrine within the period specified in sub-section (2), the local authority having jurisdiction over the area in which such insanitary latrine is situated, shall, after giving notice of not less than twenty one days to the occupier, either convert such latrine into a sanitary latrine, or demolish such insanitary latrine, and shall be entitled to recover the cost of such conversion or, as the case may be, of demolition, from such occupier in such manner as may be prescribed. **6.** **Contract, agreement, etc., to be void.—(1) Any contract, agreement or other instrument entered** into or executed before the date of commencement of this Act, engaging or employing a person for the purpose of manual scavenging shall, on the date of commencement of this Act, be terminated and such contract, agreement or other instrument shall be void and inoperative and no compensation shall be payable therefor. (2) Notwithstanding anything contained in sub-section (1), no person employed or engaged as a manual scavenger on a full-time basis shall be retrenched by his employer, but shall be retained, subject to his willingness, in employment on at least the same emoluments, and shall be assigned work other than manual scavenging. **7.** **Prohibition of persons from engagement or employment for hazardous cleaning of sewers** **and septic tanks.—No person, local authority or any agency shall, from such date as the State** Government may notify, which shall not be later than one year from the date of commencement of this Act, engage or employ, either directly or indirectly, any person for hazardous cleaning of a sewer or a septic tank. **8. Penalty for contravention of section 5 or section 6.—Whoever contravenes the provisions of** section 5 or section 6 shall for the first contravention be punishable with imprisonment for a term which may extend to one year or with fine which may extend to fifty thousand rupees or with both, and for any 6 ----- subsequent contravention with imprisonment which may extend to two years or with fine which may extend to one lakh rupees, or with both. **9. Penalty for contravention of section 7.—Whoever contravenes the provisions of section 7 shall** for the first contravention be punishable with imprisonment for a term which may extend to two years or with fine which may extend to two lakh rupees or with both, and for any subsequent contravention with imprisonment which may extend to five years or with fine which may extend to five lakh rupees, or with both. **10. Limitation of prosecution.—No court shall take cognizance of any offence punishable under this** Act except upon a complaint thereof is made by a person in this behalf within three months from the date of the occurrence of the alleged commission of the offence. CHAPTER IV IDENTIFICATION OF MANUAL SCAVENGERS IN URBAN AND RURAL AREAS AND THEIR REHABILITATION **11.** **Survey of manual scavengers in urban areas by Municipalities.—(1) If any Municipality has** reason to believe that some persons are engaged or employed in manual scavenging within its jurisdiction, the Chief Executive Officer of such Municipality shall cause a survey to be undertaken to identify such persons. (2) The content and methodology of the survey referred to in sub-section (1) shall be such as may be prescribed, and it shall be completed within a period of two months from its commencement in the case of Municipal Corporations, and within a period of one month in the case of other Municipalities. (3) The Chief Executive Officer of the Municipality, in whose jurisdiction the survey is undertaken, shall be responsible for accurate and timely completion of the survey. (4) After completion of the survey, the Chief Executive Officer shall cause to be drawn up a provisional list of persons found to be working as manual scavengers within the jurisdiction of his Municipality and fulfilling the eligibility conditions as may be prescribed, shall cause such provisional list to be published for general information in such manner, as may be prescribed, and shall invite objections to the list from the general public. (5) Any person having any objection, either to the inclusion or exclusion of any name in the provisional list published in pursuance of sub-section (4), shall, within a period of fifteen days from such publication, file an objection, in such form as the Municipality may notify, to the Chief Executive Officer. (6) All objections received in pursuance of sub-section (5), shall be enquired into, and thereafter a final list of persons found to be working as manual scavengers within the local limits of the municipality, shall be published by it in such manner, as may be prescribed. (7) As soon as the final list of manual scavengers, referred to in sub-section (6) is published, the persons included in the said list shall, subject to the provisions of sub-section (2) of section 6, stand discharged from any obligation to work as manual scavengers. **12. Application by an urban manual scavenger for identification.—(1) Any person working as a** manual scavenger in an urban area, may, either during the survey undertaken by the Municipality in pursuance of section 11, within whose jurisdiction he works, or at any time thereafter, apply, in such manner, as may be prescribed, to the Chief Executive Officer of the Municipality, or to any other officer authorised by him in this behalf, for being identified as a manual scavenger. (2) On receipt of an application under sub-section (1), the Chief Executive Officer shall cause it to be enquired into, either as part of the survey undertaken under section 11, or, when no such survey is in progress, within fifteen days of receipt of such application, to ascertain whether the applicant is a manual scavenger. (3) If an application is received under sub-section (1) when a survey under section 11 is not in progress, and is found to be true after enquiry in accordance with sub-section (2), action shall be taken to 7 ----- add the name of such a person to the final list published under sub-section (6) of section 11, and the consequences mentioned in sub-section (7) thereof shall follow. **13. Rehabilitation of persons identified as manual scavengers by a Municipality.—(1) Any** person included in the final list of manual scavengers published in pursuance of sub-section (6) of section 11 or added thereto in pursuance of sub-section (3) of section 12, shall be rehabilitated in the following manner, namely:— (a) he shall be given, within one month,— (i) a photo identity card, containing, inter alia, details of all members of his family dependent on him, and (ii) such initial, one time, cash assistance, as may be prescribed; (b) his children shall be entitled to scholarship as per the relevant scheme of the Central Government or the State Government or the local authorities, as the case may be; (c) he shall be allotted a residential plot and financial assistance for house construction, or a ready-built house, with financial assistance, subject to eligibility and willingness of the manual scavenger, and the provisions of the relevant scheme of the Central Government or the State Government or the concerned local authority; (d) he, or at least one adult member of his family, shall be given, subject to eligibility and willingness, training in a livelihood skill, and shall be paid a monthly stipend of not less than three thousand rupees, during the period of such training; (e) he, or at least one adult member of his family, shall be given, subject to eligibility and willingness, subsidy and concessional loan for taking up an alternative occupation on a sustainable basis, in such manner as may be stipulated in the relevant scheme of the Central Government or the State Government or the concerned local authority; (f) he shall be provided such other legal and programmatic assistance, as the Central Government or State Government may notify in this behalf. (2) The District Magistrate of the district concerned shall be responsible for rehabilitation of each manual scavenger in accordance with the provisions of sub-section (1) and the State Government or the District Magistrate concerned may, in addition, assign responsibilities in his behalf to officers subordinate to the District Magistrate and to officers of the concerned Municipality. **14.** **Survey of manual scavengers in rural areas by Panchayats.—If any Panchayat has reason to** believe that some persons are engaged in manual scavenging within its jurisdiction, the Chief Executive Officer of such Panchayat shall cause a survey of such manual scavengers to be undertaken, _mutatis_ _mutandis, in accordance with the provisions of section 11 and section 12, to identify such person._ **15. Application by a rural manual scavenger for identification.—(1) Any person working as a** manual scavenger, in a rural area, may, either during the survey undertaken by the Panchayat within whose jurisdiction he works, in pursuance of section 14 or at any time thereafter, apply, in such manner, as may be prescribed, to the Chief Executive Officer of the concerned Panchayat, or to any other officer authorised by him in this behalf, for being identified as a manual scavenger. (2) On receipt of an application under sub-section (1), the Chief Executive Officer shall cause it to be enquired into, either as part of the survey undertaken under section 14 or when no such survey is in progress, within fifteen days of receipt of such application, so as to ascertain whether the applicant is a manual scavenger. **16. Rehabilitation of persons identified as manual scavengers by a Panchayat.—Any person** included in the final list of manual scavengers, published in pursuance of section 14 or added thereto in pursuance of sub-section (2) of section 15 shall be rehabilitated, _mutatis mutandis, in the manner laid_ down for urban manual scavengers in section 13. 8 ----- CHAPTER V IMPLEMENTING AUTHORITIES **17. Responsibility of local authorities to ensure elimination of insanitary latrines.—** Notwithstanding anything contained in any other law for the time being in force, it shall be the responsibility of every local authority to ensure, through awareness campaign or in such other manner that after the expiry of a period of nine months, from the date of commencement of this Act,— (i) no insanitary latrine is constructed, maintained or used within its jurisdiction; and (ii) in case of contravention of clause (i), action is taken against the occupier under sub-section (3) of section 5. **18. Authorities who may be specified for implementing provisions of this Act.—The appropriate** Government may confer such powers and impose such duties on local authority and District Magistrate as may be necessary to ensure that the provisions of this Act are properly carried out, and a local authority and the District Magistrate may, specify the subordinate officers, who shall exercise all or any of the powers, and perform all or any of the duties, so conferred or imposed, and the local limits within which such powers or duties shall be carried out by the officer or officers so specified. **19. Duty of District Magistrate and authorised officers.—The District Magistrate and the authority** authorised under section 18 or any other subordinate officers specified by them under that section shall ensure that, after the expiry of such period as specified for the purpose of this Act,— (a) no person is engaged or employed as manual scavenger within their jurisdiction; (b) no one constructs, maintains, uses or makes available for use, an insanitary latrine; (c) manual scavengers identified under this Act are rehabilitated in accordance with section 13, or as the case may be, section 16; (d) persons contravening the provisions of section 5 or section 6 or section 7 are investigated and prosecuted under the provisions of this Act; and (e) all provisions of this Act applicable within his jurisdiction are duly complied with. **20. Appointment of inspectors and their powers.—(1) The appropriate Government may, by** notification, appoint such persons as it thinks fit to be inspectors for the purposes of this Act, and define the local limits within which they shall exercise their powers under this Act. (2) Subject to any rules made in this behalf, an inspector may, within the local limits of his jurisdiction, enter, at all reasonable times, with such assistance as he considers necessary, any premises or place for the purpose of,— (a) examining and testing any latrine, open drain or pit or for conducting an inspection of any premises or place, where he has reason to believe that an offence under this Act has been or is being or is about to be committed, and to prevent employment of any person as manual scavenger; (b) examine any person whom he finds in such premises or place and who, he has reasonable cause to believe, is employed as a manual scavenger therein, or is otherwise in a position to furnish information about compliance or non-compliance with the provisions of this Act and the rules made thereunder; (c) require any person whom he finds on such premises, to give information which is in his power to give, with respect to the names and addresses of persons employed on such premises as manual scavenger and of the persons or agency or contractor employing or engaging them; (d) seize or take copies of such registers, record of wages or notices or portions thereof as he may consider relevant in respect of an offence under this Act which he has reason to believe has been committed by the principal employer or agency; and (e) exercise such other powers as may be prescribed. 9 ----- (3) Any person required to produce any document or thing or to give any information required by an inspector under sub-section (2) shall be deemed to be legally bound to do so within the meaning of section 175 and section 176 of the Indian Penal Code (45 of 1860). (4) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974), shall, so far as may be, apply to any such search or seizure under sub-section (2) as they apply to such search or seizure made under the authority of a warrant issued under section 94 of the said Code. CHAPTER VI PROCEDURE FOR TRIAL **21. Offences to be tried by Executive Magistrate.—(1) The State Government may confer, on an** Executive Magistrate, the powers of a Judicial Magistrate of the first class for the trial of offences under this Act; and, on such conferment of powers, the Executive Magistrate, on whom the powers are so conferred, shall be deemed, for the purposes of the Code of Criminal Procedure, 1973 (2 of 1974), to be a Judicial Magistrate of the first class. (2) An offence under this Act may be tried summarily. **22. Offence to be cognizable and non-bailable.—Notwithstanding anything contained in the Code** of Criminal Procedure, 1973 (2 of 1974), every offence under this Act shall be cognizable and nonbailable. **23. Offences by companies.—(1) Where an offence under this Act has been committed by a** company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly. (2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section,—_ (a) “company” means any body corporate and includes a firm or other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm. CHAPTER VII VIGILANCE COMMITTEES **24.** **Vigilance Committees.—(1) Every State Government shall, by notification, constitute a** Vigilance Committee for each district and each Sub-Division. (2) Each Vigilance Committee constituted for a district shall consist of the following members, namely:— (a) the District Magistrate—Chairperson, ex officio; (b) all members of the State Legislature belonging to the Scheduled Castes elected from the district—members: Provided that if a district has no member of the State Legislature belonging to the Scheduled Castes, the State Government may nominate such number of other members of the State Legislature from the district, not exceeding two, as it may deem appropriate. (c) the district Superintendent of Police— member, ex officio; 10 ----- (d) the Chief Executive Officer of,— (i) the Panchayat at the district level—member, ex officio; (ii) the Municipality of the district headquarters—member, ex officio; (iii) any other Municipal Corporation constituted in the district— member, ex officio; (iv) Cantonment Board, if any, situated in the district—member, ex officio; (e) one representative be nominated by the railway authority located in the district; (f) not more than four social workers belonging to organisation working for the prohibition of manual scavenging and rehabilitation of manual scavengers, or, representing the scavenger community, resident in the district, to be nominated by the District Magistrate, two of whom shall be women; (g) one person to represent the financial and credit institutions in the district, to be nominated by the District Magistrate; (h) the district-level officer in-charge of the Scheduled Castes Welfare— Member-Secretary, _ex officio;_ (i) district-level officers of Departments and agencies who, in the opinion of the District Magistrate, subject to general orders, if any, of the State Government, have a significant role to play in the implementation of this Act. (3) Each Vigilance Committee, constituted for a Sub-Division, shall consist of the following members, namely:— (a) the Sub-Divisional Magistrate—Chairperson, ex officio; (b) the Chairpersons and the Chief Executive Officers of Panchayats at intermediate level of the Sub-Division, and where Panchayats at intermediate level, do not exist, Chairpersons from two Panchayats at Village level to be nominated by the Sub-Divisional Magistrate—member, ex officio; (c) the Sub-Divisional Officer of Police—member, ex officio; (d) Chief Executive Officer of— (i) the Municipality of the Sub-Divisional headquarters—member, ex officio; and (ii) Cantonment Board, if any, situated in the Sub-Division—member, ex officio; (e) one representative to be nominated by the railway authority located in the Sub-Division—member, ex officio; (f) two social workers belonging to the organisation working for the prohibition of manual scavenging and rehabilitation of the manual scavengers, or representing the scavenger community resident in the Sub-Division, to be nominated by the District Magistrate, one of whom shall be a woman; (g) one person to represent the financial and credit institutions in the Sub-Division, to be nominated by the Sub-Divisional Magistrate; (h) the Sub-Divisional level officer in-charge of Scheduled Castes welfare— Member-Secretary, _ex officio;_ (i) Sub-Divisional level officers of Department and agencies who in the opinion of the Sub-Divisional Magistrate, subject to any general orders of the State Government or the District Magistrate, have a significant role to play in the implementation of this Act—member, ex officio. (4) Each Vigilance Committee constituted at district and Sub-Divisional level shall meet at least once in every three months. (5) No proceeding of a Vigilance Committees shall be invalid merely by reason of any defect in its constitution. 11 ----- **25. Functions of Vigilance Committee.—The functions of Vigilance Committee shall be—** (a) to advise the District Magistrate or, as the case may be, the Sub-Divisional Magistrate, on the action which needs to be taken, to ensure that the provisions of this Act or of any rule made thereunder are properly implemented; (b) to oversee the economic and social rehabilitation of manual scavengers; (c) to co-ordinate the functions of all concerned agencies with a view to channelise adequate credit for the rehabilitation of manual scavengers; (d) to monitor the registration of offences under this Act and their investigation and prosecution. **26. State Monitoring Committee.—(1) Every State Government shall, by notification, constitute a** State Monitoring Committee, consisting of the following members, namely:— (a) the Chief Minister of State or a Minister nominated by him—Chairperson, ex officio; (b) the Minister-in-charge of the Scheduled Castes Welfare, and such other Department, as the State Government may notify; (c) Chairperson of the State Commissions for Safai Karamcharis, and Scheduled Castes, if any— member, ex officio; (d) representatives of the National Commission for Scheduled Castes, and Safai Karamcharis— member, ex officio; (e) not less than two members of the State Legislature belonging to the Scheduled Castes, nominated by the State Government: Provided that if any State Legislature has no member belonging to the Scheduled Castes, the State Government may nominate the members belonging to the Scheduled Tribes; (f) the Director-General of Police— member, ex officio; (g) Secretaries to the State Government in the Departments of Home, Panchayati Raj, Urban Local Bodies, and such other Departments, as the State Government may notify; (h) Chief Executive Officer of at least one Municipal Corporation, Panchayat at the district-level, Cantonment Board and railway authority as the State Government may notify; (i) not more than four social workers belonging to organisation working for the prohibition of manual scavenging and rehabilitation of manual scavengers, or, representing the scavenger community, resident in the State, to be nominated by the State Government, two of whom shall be women; (j) State-level head of the convener Bank of the State Level Bankers’ Committee— member, _ex officio;_ (k) Secretary of the Department of the State Government dealing with development of the Scheduled Castes—Member-Secretary, ex officio; (l) such other representative of Departments of the State Government and such other agencies which, in the opinion of the State Government, are concerned with the implementation of this Act. (2) The State Monitoring Committee shall meet at least once in every six months and shall observe such rules of procedure in regard to the transaction of business at its meetings as may be prescribed. **27. Functions of the State Monitoring Committee.—The functions of the State Monitoring** Committee shall be— (a) to monitor and advise the State Government and local authorities for effective implementation of this Act; (b) to co-ordinate the functions of all concerned agencies; 12 ----- (c) to look into any other matter incidental thereto or connected therewith for implementation of this Act. **28. Duty of States or Union territories to send periodic reports to the Central Government.—** Every State or Union territory Government and Union territory administration shall send such periodic reports to the Central Government about progress of implementation of this Act, as the Central Government may require. **29.** **Central Monitoring Committee.—(1) The Central Government shall, by notification, constitute** a Central Monitoring Committee in accordance with the provisions of this section. (2) The Central Monitoring Committee shall consist of the following members, namely:— (a) The Union Minister for Social Justice and Empowerment—Chairperson, ex officio; (b) Chairperson of the National Commission for Scheduled Castes—member, ex officio; (c) Minister of State in the Ministry of Social Justice and Empowerment— member, ex officio; (d) Chairperson, National Commission for Safai Karamcharis— member, ex officio; (e) the Member of the Planning Commission dealing with development of the Scheduled Castes—member, ex officio; (f) three elected members of Parliament belonging to Scheduled Castes, two from the Lok Sabha and one from the Rajya Sabha; (g) Secretaries of the Ministries of,— (i) Social Justice and Empowerment, Department of Social Justice and Empowerment; (ii) Urban Development; (iii) Housing and Urban Poverty Alleviation; (iv) Drinking Water and Sanitation; (v) Panchayati Raj; (vi) Finance, Department of Financial Services; and (vii) Defence, members, ex officio; (h) Chairman, Railway Board—member, ex officio; (i) Director-General, Defence Estates— member, ex officio; (j) representatives of not less than six State Governments and one Union territory, as the Central Government may, notify; (k) not more than six social workers belonging to organisation working for the prohibition of manual scavenging and rehabilitation of manual scavengers, or, representing the scavenger community, resident in the country, to be nominated by the Chairperson, two of whom shall be women; (l) Joint Secretary, Department of Social Justice and Empowerment in the Ministry of Social Justice and Empowerment, looking after development of Scheduled Castes—Member-Secretary, _ex officio;_ (m) such other representatives of Central Ministries or Departments and agencies which, in the opinion of the Chairperson, are concerned with the implementation of this Act. (3) The Central Monitoring Committee shall meet at least once in every six months. 13 ----- **30. Functions of the Central Monitoring Committee.—The functions of the Central Monitoring** Committee shall be,— (a) to monitor and advise the Central Government and State Government for effective implementation of this Act and related laws and programmes; (b) to co-ordinate the functions of all concerned agencies; (c) to look into any other matter incidental to or connected with implementation of this Act. **31. Functions of National Commission for Safai Karamcharis.—(1) The National Commission for** Safai Karamcharis shall perform the following functions, namely:— (a) to monitor the implementation of this Act; (b) to enquire into complaints regarding contravention of the provisions of this Act, and to convey its findings to the concerned authorities with recommendations requiring further action; and (c) to advise the Central and the State Governments for effective implementation of the provisions of this Act. (d) to take suo motu notice of matter relating to non-implementation of this Act. (2) In the discharge of its functions under sub-section (1), the National Commission shall have the power to call for information with respect to any matter specified in that sub-section from any Government or local or other authority. **32. Power of State Government to designate an appropriate authority to monitor the** **implementation of this Act.—(1) The State Government may, by notification, designate a State** Commission for Safai Karamcharis or a State Commission for the Scheduled Castes or such other statutory or other authority, as it deems fit, to perform, within the State, _mutatis mutandis, the functions_ specified in sub-section (1) of section 31. (2) An authority designated under sub-section (1) shall, within the State, have, mutatis mutandis, the powers of the National Commission for Safai Karamcharis as specified in sub-section (2) of section 31. CHAPTER VIII MISCELLANEOUS **33. Duty of local authorities and other agencies to use modern technology for cleaning of** **sewers, etc.—(1) It shall be the duty of every local authority and other agency to use appropriate** technological appliances for cleaning of sewers, septic tanks and other spaces within their control with a view to eliminating the need for the manual handling of excreta in the process of their cleaning. (2) It shall be the duty of the appropriate Government to promote, through financial assistance, incentives and otherwise, the use of modern technology, as mentioned in sub-section (1). **34. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall** lie against an appropriate Government or any officer of the appropriate Government or any member of the Committee for anything which is in good faith done or intended to be done under this Act. **35. Jurisdiction of civil courts barred.—No civil court shall have jurisdiction in respect of any** matter to which any provision of this Act applies and no injunction shall be granted by any civil court in respect of anything, which is done or intended to be done, by or under this Act. **36.** **Power of appropriate Government to make rules.—(1) The appropriate Government shall, by** notification, make rules for carrying out the provisions of this Act, within a period not exceeding three months from the date of commencement of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the obligation of an employer, under clause (d) of sub-section (1) of section 2; 14 ----- (b) the manner in which the excreta fully decomposes under clauses (e) and (g) of sub-section (1) of section 2; (c) the manner of carrying out survey of insanitary latrine and publishing list thereof under clause (a) of sub-section (1) of section 4; (d) procedure of giving notice and recovering cost of demolition of an insanitary latrine under sub-section (3) of section 5; (e) content and methodology of the survey under sub-section (2) of section 11; (f) the eligibility conditions for identification of manual scavengers and publication of provisional list of persons found to be working as manual scavengers under sub-section (4) of section 11; (g) publication of final list of persons found to be working as manual scavengers under sub section (6) of section 11; (h) manner of application to be made to the Chief Executive Officer of the municipality, or to an officer authorised by him in this behalf, under sub-section (1) of section 12 or, as the case may be, sub-section (1) of section 15; (i) provision of initial, one time, cash assistance under sub-clause (ii) of clause (a) of sub-section (1) of section 13; (j) such other powers of Inspectors under clause (e) of sub-section (2) of section 20; and (k) any other matter which is required to be, or may be, prescribed. (3) Every rule made under this Act by the Central Government shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. (4) Every rule made under this Act by the State Government shall, as soon as may be after it is made, be laid before each House of State Legislature, where there are two Houses and where there is one House of State Legislature, before that House. **37.** **Power of Central Government to make model rules.—(1) Notwithstanding anything contained** in section 36 of this Act:— (a) the Central Government shall, by notification, publish model rules for the guidance and use of State Governments; and (b) in case the State Government fails to notify the rules under section 36 of this Act within the period of three months specified therein, then the model rules as notified by the Central Government shall be deemed to have come into effect, mutatis mutandis, in such State, till such time as the State Government notifies its rules. (2) The model rules made by the Central Government under this Act shall be laid, as soon as may be after they are made, before each House of Parliament while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses make any modification in the rule, the rule shall thereafter have effect only in such modified form; so, however, that any such modification shall be without prejudice to the validity of anything previously done under that rule. **38. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, 15 ----- not inconsistent with the provisions of this Act, as may appear to it to be necessary or expedient for the removal of the difficulty: Provided that no such order shall be made in relation to a State after the expiration of three years from the commencement of this Act in that State. (2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament. **39. Power to exempt.—(1) The appropriate Government may, by a general or special order published** in the Official Gazette, for reasons to be recorded, and subject to such conditions as it may impose, exempt any area, category of buildings or class of persons from any provisions of this Act or from any specified requirement contained in this Act or any rule, order, notification, bye-laws or scheme made thereunder or dispense with the observance of any such requirement in a class or classes of cases, for a period not exceeding six months at a time. (2) Every general or special order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament or each House of State Legislature, where there are two Houses and where there is one House of State Legislature, before that House. ———— 16 -----

18-Sep-2013

23

The Pension Fund Regulatory and Development Authority Act, 2013

https://www.indiacode.nic.in/bitstream/123456789/2117/1/a2013-23.pdf

central

# THE PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY ACT, 2013 ______________________ ARRANGEMENT OF SECTIONS ________________ CHAPTER I PRELIMININARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II PENSION FUND REGULATORY AND DEVELOMENT AUTHORITY 3. Establishment and incorporation of Authority. 4. Composition of Authority. 5. Term of office and conditions of service of Chairperson and members of Authority. 6. Removal of members from office. 7. Restriction on future employment of members. 8. Administrative powers of Chairperson. 9. Meetings of Authority. 10. Vacancies,etc., not to invalidate proceedings of Authority. 11. Officers and employees of Authority. CHAPTER III EXTENT AND APPLICATION 12. Extent and application. CHAPTER IV TRANSEFER OF ASSETS, LIABILITIES, ETC., OF INTERIM PENSION FUND REGULATORYAND DEVELOPMENT AUTHORITY 13. Transfer of assets, liabilities, etc., of Interim Pension Fund Regulatory and Development Authority. CHAPTER V DUTIES, POWERS AND FUNCTIONS OF AUTHORITY 14. Duties, powers and functions of Authority. 15. Power to issue directions. 16. Power of investigation. 17. Search and seizure. 18. Power of Authority to ensure compliance. 1 ----- SECTIONS 19. Management by Administrator. CHAPTER VI NATIONAL PENSION SYSTEM 20. National Pension System. 21. Central Recordkeeping Agency. 22. Point of presence 23. Pension funds. 24. Certain restrictions on foreign companies or individual or association of persons. 25. Prohibition of investment of funds of subscribers outside India. 26. Eligibility norms of the central recordkeeping agency, etc. CHAPTER VII REGISTRATION OF INTERMEDIARIES 27. Registration of central recordkeeping agency, pension fund, point of presence, etc. CHAPTER VIII PENALTIES AND ADJUDICATION 28. Penalty for failure by an intermediary or any other person to comply with provisions of this Act, rules, regulations and directions. 29. Crediting sums realised by way of penalties to Subscriber Education and Protection Fund. 30. Power to adjudicate. 31. Attachment of assets and supersession of management of intermediary. 32. Offences. 33. Power to grant immunity. 34. Exemption from tax on wealth, income, profits and gains. 35. Cognizance of offences by court. 36. Appeal to Securities Appellate Tribunal. 37. Civil Court not to have jurisdiction. 38. Appeal to Supreme Court. CHAPTER IX FINANCE, ACCOUNT AND AUDIT 39. Grants by Central Government. 40. Constitution of Pension Regulatory and Development Fund. 41. Constitution of Subscriber Education and Protection Fund. 42. Accounts and audit. 2 ----- CHAPTER X MISCELLANEOUS SECTIONS 43. Power of Central Government to issue directions. 44. Power of Central Government to supersede Authority. 45. Establishment of Pension Advisory Committee. 46. Furnishing of returns, etc., to Central Government. 47. Members, officers and employees of Authority to be public servants. 48. Protection of action taken in good faith. 49. Delegation of powers. 50. Offences by companies. 50A. Powers of Authority not to apply to International Financial Services Centre. 51. Power to make rules. 52. Power to make regulations. 53. Rules and regulations to be laid before Parliament. 54. Power to remove difficulties. 55. Application of other laws not barred. 56. Savings. 3 ----- # THE PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY ACT, 2013 ACT NO. 23 OF 2013 [18th September, 2013.] # An Act to provide for the establishment of an Authority to promote old age income security by establishing, developing and regulating pension funds, to protect the interests of subscribers to schemes of pension funds and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Sixty-fourth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1.** **Short title, extent and commencement.—(1) This Act may be called the Pension Fund** Regulatory and Development Authority Act, 2013. (2) It extends to the whole of India. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint: Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. **2. Definitions.—(1) In this Act, unless the context otherwise requires,—** (a) “Authority” means the Pension Fund Regulatory and Development Authority established under sub-section (1) of section 3; (b) “central recordkeeping agency” means an agency registered under section 27 to perform the functions of recordkeeping, accounting, administration and customer service for subscribers to schemes; (c) “Chairperson” means the Chairperson of the Authority; (d) “document” shall include any matter written, expressed or described upon any substance by means of letters, figures or marks, or by more than one of those means, in printed or in electronic version, which is intended to be used, or which may be used, by the Interim Pension Fund Regulatory and Development Authority, or Authority or an intermediary or any other entity connected with the National Pension System, for the purpose of recording that matter; (e) “individual pension account” means an account of a subscriber, executed by a contract setting out the terms and conditions under the National Pension System; (f) “Interim Pension Fund Regulatory and Development Authority” means the Interim Pension Fund Regulatory and Development Authority set up by the Central Government through Resolutions No. F. No. 5/7/2003-ECB&PR, dated the 10th October, 2003 and F. No. 1(6)/2007-PR, dated the 14th November, 2008; (g) “intermediary” includes pension fund, central recordkeeping agency, National Pension System Trust, pension fund adviser, retirement adviser, point of presence and such other person or entity connected with collection, management, recordkeeping and distribution of accumulations; 1. 1st February, 2014,vide Notification No. S.O. 302(E), dated 1st February, 2014, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 4 ----- (h) “member” means a member of the Authority and includes its Chairperson; (i) “National Pension System” means the contributory pension system referred to in section 20 whereby contributions from a subscriber are collected and accumulated in an individual pension account using a system of points of presence, a central recordkeeping agency and pension funds as may be specified by regulations; (j) “National Pension System Trust” means the Board of Trustees who hold the assets of subscribers for their benefit; (k) “notification” means a notification published in the Official Gazette; (l) “pension fund” means an intermediary which has been granted a certificate of registration under sub-section (3) of section 27 by the Authority as a pension fund for receiving contributions, accumulating them and making payments to the subscriber in the manner as may be specified by regulations; (m) “Pension Regulatory and Development Fund” means the fund constituted under sub section(1) of section 40; (n) “point of presence” means an intermediary registered with the Authority under sub-section (3) of section 27 as a point of presence and capable of electronic connectivity with the central recordkeeping agency for the purposes of receiving and transmitting funds and instructions and pay out of funds; (o) “prescribed” means prescribed by rules made under this Act; (p) “regulated assets” means the assets and properties, both tangible and intangible, owned, leased or developed by and other rights belonging to, the central recordkeeping agency; (q) “regulations” means the regulations made by the Authority under this Act; (r) “scheme” means a scheme of pension fund approved by the Authority under this Act; (s) “Securities Appellate Tribunal” means a Securities Appellate Tribunal established under sub section (1) of section 15K of the Securities and Exchange Board of India Act, 1992(15 of 1992); (t) “subscriber” includes a person who subscribes to a scheme of a pension fund; (u) “Subscriber Education and Protection Fund” means the fund constituted under sub-section (1) of section 41; (v) “Trustee Bank" means a banking company as defined in the Banking Regulation Act, 1949 (10 of 1949). (2) Words and expressions used and not defined in this Act, but defined in— (i) the Insurance Act, 1938 (4 of 1938); (ii) the Companies Act, 1956(1 of 1956); (iii) the Securities Contracts (Regulation) Act, 1956 (42 of 1956); and (iv) the Securities and Exchange Board of India Act, 1992 (15 of 1992), shall have the meanings respectively assigned to them under those Acts. CHAPTER II PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY **3. Establishment and incorporation of Authority.—(1)With effect from such date as the Central** Government may, by notification, appoint, there shall be established, for the purposes of this Act, an Authority to be called the Pension Fund Regulatory and Development Authority. 5 ----- (2)The Authority shall be a body corporate by the name aforesaid, having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to contract and shall, by the said name, sue or be sued. (3)The head office of the Authority shall be in the National Capital Region referred to in clause (f) of section 2 of the National Capital Region Planning Board Act, 1985 (2 of 1985). (4)The Authority may establish offices at other places in India. **4.Composition of Authority.—The Authority shall consist of the following Members, namely:—** (a) a Chairperson; (b) three whole-time members; and (c) three part-time members, to be appointed by the Central Government from amongst persons of ability, integrity and standing and having knowledge and experience in economics or finance or law with at least one person from each discipline. **5. Term of office and conditions of service of Chairperson and members of Authority.—(1) The** Chairperson and every whole-time member shall hold office for a term of five years from the date on which he enters upon his office and shall be eligible for reappointment: Provided that no person shall hold office as a Chairperson after he has attained the age of sixty-five years: Provided further that no person shall hold office as a whole-time member after he has attained the age of sixty-two years. (2) A part-time member shall hold office as such for a term not exceeding five years from the date on which he enters upon his office. (3)The salary and allowances payable to, and other terms and conditions of service of, the members other than part-time members shall be such as may be prescribed. (4)The part-time members shall receive such allowances as may be prescribed. (5)The salary, allowances and other conditions of service of a member shall not be varied to his disadvantage after his appointment. (6) Notwithstanding anything contained in sub-section (1) or sub-section (2), a member may— (a) relinquish his office, by giving in writing to the Central Government, a notice of not less than thirty days; or (b) be removed from his office in accordance with the provisions of section 6. **6. Removal of members from office.—(1) The Central Government may remove from office the** Chairperson or any other member who— (a) is, or at any time has been, adjudged as insolvent; or (b) has become physically or mentally incapable of acting as a member; or (c) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or (d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a member; or (e) has, in the opinion of the Central Government, so abused his position as to render his continuance in office detrimental to the public interest. (2) No such Chairperson or other member shall be removed under clause (d) or clause (e) of sub section (1) unless he has been given a reasonable opportunity of being heard in the matter. 6 ----- **7. Restriction on future employment of members.—(1) The Chairperson and the whole-time** members shall not, for a period of two years from the date on which they cease to hold office as such, except with the previous approval of the Central Government, accept— (a) any employment either under the Central Government or under any State Government; or (b) any appointment in any regulated entity in the pension sector. (2) The Chairperson and the whole-time members of the Interim Pension Fund Regulatory and Development Authority holding the office as such before the commencement of this Act, shall not, on and after such commencement, accept any appointment in any regulated entity in the pension sector for a period of two years from the date on which they cease to hold office as such, except with the previous approval of the Central Government. **8. Administrative powers of Chairperson.—The Chairperson shall have the powers of general** superintendence and direction in respect of all administrative matters of the Authority. **9. Meetings of Authority.—(1) The Authority shall meet at such times and places and shall observe** such rules of procedure in regard to the transaction of business at its meetings (including quorum at such meetings) as may be provided by regulations. (2) The Chairperson or, if for any reason, he is unable to attend a meeting of the Authority, any other member chosen by the members present from amongst themselves at the meeting, shall preside at the meeting. (3) All questions which come up before any meeting of the Authority shall be decided by a majority of votes by the members present and voting, and in the event of an equality of votes, the Chairperson or in his absence, the person presiding shall have a second or casting vote. (4) If any member, who is a director of a company and who as such director, has any direct or indirect pecuniary interest in any matter coming up for consideration at a meeting of the Authority, he shall, as soon as possible after relevant circumstances have come to his knowledge, disclose the nature of his interest at such meeting and such disclosure shall be recorded in the proceedings of the Authority, and the member shall not take part in any deliberation or decision of the Authority with respect to that matter. **10. Vacancies, etc., not to invalidate proceedings of Authority.—No act or proceeding of the** Authority shall be invalid merely by reason of— (a) any vacancy in, or any defect in the constitution of, the Authority; or (b) any defect in the appointment of a person acting as a member of the Authority; or (c) any irregularity in the procedure of the Authority not affecting the merits of the case. **11. Officers and employees of Authority.—(1)The Authority may appoint such officers and other** employees as it considers necessary for the efficient discharge of its functions under this Act. (2) The terms and other conditions of service of officers and other employees of the Authority appointed under sub-section (1) shall be such as may be determined by regulations. CHAPTER III EXTENT AND APPLICATION **12. Extent and application.—(1) This Act shall apply to—** (a) the National Pension System; (b) any other pension scheme not regulated by any other enactment. (2) Every pension scheme referred to in clause (b) shall conform to the regulations made by the Authority within such time as may be specified in the regulations. 7 ----- (3) Notwithstanding anything contained in sub-section (1), the provisions of this Act shall not apply to– (a) the schemes or funds under– (i) the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948 (46of 1948); (ii) the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952); (iii) the Seamen’s Provident Fund Act, 1966 (4 of 1966); (iv) the Assam Tea Plantations Provident Fund and Pension Fund Scheme Act, 1955 (Assam Act X of 1955); and (v) the Jammu and Kashmir Employees’ Provident Funds Act, 1961 (Jammu and Kashmir Act XV of 1961); (b) contracts referred to in sub-section (11) of section 2 of the Insurance Act, 1938 (4 of 1938); (c) any other pension scheme, which the Central Government may, by notification, exempt from the application of this Act; (d) persons appointed before the 1st day of January, 2004 to public services in connection with the affairs of the Union, or to All-India Services constituted under section 2A of the All-India Services Act, 1951 (61 of 1951); (e) persons appointed to public services in connection with the affairs of any State, or such Union territories as may be specified by notification by the Central Government. (4) Notwithstanding anything contained in sub-section (3), any State Government or administrator of a Union territory may, by notification, extend the National Pension System to its employees. (5) Notwithstanding anything contained in clause (c) of sub-section (3), the Central Government may, by notification, extend the application of this Act to any other pension scheme including any other pension scheme exempted and notified under clause (c) of sub-section (3). (6) Any person governed under any of the schemes or funds referred to in sub-section (3) may, at his option, also join the National Pension System. CHAPTER IV TRANSFER OF ASSETS, LIABILITIES, ETC., OF INTERIM PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY **13. Transfer of assets, liabilities, etc., of Interim Pension Fund Regulatory and Development** **Authority.—On and from the date of establishment of the Pension Fund Regulatory and Development** Authority,— (a) all the assets and liabilities of the Interim Pension Fund Regulatory and Development Authority shall stand transferred to, and vested in, the Authority. _Explanation.—The assets of the Interim Pension Fund Regulatory and Development Authority_ shall be deemed to include all rights and powers, all properties, whether movable or immovable, including, in particular, cash balances, deposits and all other interests and rights in, or arising out of, such properties as may be in the possession of the Interim Pension Fund Regulatory and Development Authority and all books of account and other documents relating to the same; and liabilities shall be deemed to include all debts, liabilities and obligations of whatever kind; (b) without prejudice to the provisions of clause (a), all debts, obligations and liabilities incurred, all contracts entered into and all matters and things engaged to be done by, with or for the Interim Pension Fund Regulatory and Development Authority immediately before that day, for or in connection with the purpose of the said Regulatory Authority, shall be deemed to have been incurred, entered into or engaged to be done by, with or for, the Authority; 8 ----- (c) all sums of money due to the Interim Pension Fund Regulatory and Development Authority immediately before that day shall be deemed to be due to the Authority; and (d) all suits and other legal proceedings instituted or which could have been instituted by or against the Interim Pension Fund Regulatory and Development Authority immediately before that day may be continued or may be instituted by or against the Authority. CHAPTER V DUTIES, POWERS AND FUNCTIONS OF AUTHORITY **14.Duties, powers and functions of Authority.—(1) Subject to the provisions of this Act and any** other law for the time being in force, the Authority shall have the duty, to regulate, promote and ensure orderly growth of the National Pension System and pension schemes to which this Act applies and to protect the interests of subscribers of such System and schemes. (2) Without prejudice to the generality of the provisions contained in sub-section (1), the powers and functions of the Authority shall include— (a) regulating the National Pension System and the pension schemes to which this Act applies; (b) approving the schemes, the terms and conditions thereof and laying down norms for the management of the corpus of the pension funds, including investment guidelines under such schemes; (c) registering and regulating intermediaries; (d) issuing to an intermediary, on application, a certificate of registration and renewing, modifying, withdrawing, suspending or cancelling such registration; (e) protecting the interests of subscribers by— (i) ensuring safety of the contribution of subscribers to various schemes of pension funds to which this Act applies; (ii) ensuring that the intermediation and other operational costs under the National Pension System are economical and reasonable; (f) establishing mechanism for redressal of grievances of subscribers to be determined by regulations; (g) promoting professional or organisations connected with the pension system; (h) adjudication of disputes between intermediaries and between intermediaries and subscribers; (i) collecting data and requiring the intermediaries to collect such data and undertaking and commissioning studies, research and projects; (j) undertaking steps for educating subscribers and the general public on issues relating to pension, retirement savings and related issues and training of intermediaries; (k) standardising dissemination of information about performance of pension funds and performance benchmarks; (l) regulating the regulated assets; (m) levying fees or other charges for carrying out the purposes of this Act; (n) specifying by regulations the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by intermediaries; (o) calling for information from, undertaking inspection of, conducting inquiries and investigations including audit of, intermediaries and other entities or organisations connected with pension funds; (p) exercising such other powers and functions as may be prescribed. 9 ----- (3) Notwithstanding anything contained in any other law for the time being in force, while exercising the powers under clause (o) of sub-section (2), the Authority shall have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) while trying a suit, in respect of the following matters, namely:— (i) the discovery and production of books of account and other documents, at such place and at such time as may be specified by the Authority; (ii) summoning and enforcing the attendance of persons and examining them on oath; (iii) inspection of any book, register and other document of any person or intermediary referred to in section 26, at any place; (iv) issuing commissions for the examination of witnesses or documents; (v) any other matter which may be prescribed. (4) Without prejudice to the provisions contained in sub-sections (1), (2) and (3) and section 16, the Authority may, by order, for reasons to be recorded in writing, in the interest of subscribers, take any of the following measures, pending investigation or inquiry, namely:— (i) restrain persons from participating in any scheme; (ii) restrain any office bearer of an intermediary from acting as such; (iii) impound and retain the proceeds under the scheme in respect of any activity which is under investigation; (iv) attach, after passing an order, on an application made for approval, by the Judicial Magistrate of first class having jurisdiction, for a period not exceeding one month, one or more bank account or accounts of any intermediary or any person associated with the scheme in any manner involved in violation of any of the provisions of this Act or the rules or the regulations made thereunder: Provided that only the bank account or accounts or any transaction entered therein, relating to the proceeds actually involved in the violation of any of the provisions of this Act or the rules or the regulations made thereunder shall be allowed to be attached; (v) direct any intermediary or any person associated with the scheme in any manner not to dispose of or alienate an asset forming part of any activity which is under investigation: Provided that the Authority shall, either before or after, passing such orders, under this section, give to such intermediaries or persons concerned an opportunity of being heard. **15. Power to issue directions.—Save as otherwise provided in section 14, if after making, or causing** to be made, an inquiry, the Authority is satisfied that it is necessary— (i) in the interests of subscribers or orderly development of National Pension System or a pension scheme to which this Act applies; or (ii) to prevent the affairs of any intermediary or other persons or entities referred to in section 27 being conducted in a manner detrimental to the interests of subscribers; or (iii) to secure the proper management of any such intermediary or person or entity, it may issue such directions to such intermediaries or entities or to any person or class of persons referred to in section 27, or associated with the pension fund, as it may deem fit: Provided that the Authority shall, either before or after passing such orders, give an opportunity of being heard to such intermediaries, entities or persons concerned. **16. Power of investigation.—(1) Where the Authority has a reasonable ground to believe that—** (a) the activities of the pension fund are being conducted in a manner detrimental to the interest of the subscriber; or 10 ----- (b) any intermediary or any person associated with the schemes of the pension fund has violated any of the provisions of this Act or the rules or the regulations made or directions issued by the Authority thereunder, it may, at any time, by order in writing, direct any person (hereafter in this section referred to as the Investigating Authority) specified in the order to investigate the affairs of such intermediary or persons associated with the pension fund and to report thereon to the Authority. (2) Without prejudice to the provisions contained in sections 235 to 241 of the Companies Act, 1956 (1 of 1956), it shall be the duty of every manager, managing director, officer and other employee of the company, in case of a company and every intermediary or persons or entity referred to in section 27 or every person associated with the pension fund to preserve and to produce to the Investigating Authority or any person authorised by him in this behalf, all the books, registers, other documents and record of, or relating to, the company or, as the case may be, of or relating to, the intermediary or such person, which are in their custody or power. (3) The Investigating Authority may require any intermediary or any person or entity associated with the pension fund in any manner to furnish such information to, or produce such books, or other documents, or record before him or any person authorised by him in this behalf as he may consider necessary if the furnishing of such information or the production of such books, or register, or other documents, or record is relevant or necessary for the purposes of its investigation. (4) The Investigating Authority may keep in its custody any books, registers, other documents and record produced under sub-section (2) or sub-section (3) for six months and thereafter shall return the same to any intermediary or any person associated or entity with the pension fund by whom or on whose behalf the books, registers, other documents and record are produced: Provided that the Investigating Authority may call for any book, register, other documents and record if they are required again: Provided further that if the person on whose behalf the books, registers, other documents and record are produced requires certified copies of the books, registers, other documents or record produced before the Investigating Authority, it shall give certified copies of such books, registers, other documents or, as the case may be, record to such person or on whose behalf the books, registers, other documents and record were produced. (5) Any person, directed to make an investigation under sub-section (1), may examine on oath any intermediary or any person associated with the pension fund in any manner, in relation to the affairs of his business and may administer an oath accordingly and for that purpose may require any of those persons to appear before him personally. (6) Notes of any examination under sub-section (5) shall be taken down in writing and shall be read over to, or by, and signed by, the person examined, and may thereafter be used in evidence against him. (7) If any person fails without reasonable cause or refuses— (a) to produce to an Investigating Authority or any person authorised by him in this behalf any book, register, other document or record which it is his duty under sub-section(2) or sub-section (3) to furnish; or (b) to furnish any information which it is his duty under sub-section (3) to furnish; or (c) to appear before the Investigating Authority personally when required to do so under sub section (5) or to answer any question which is put to him by the Investigating Authority in pursuance of that sub-section; or (d) to sign the notes of any examination referred to in sub-section (6), he shall be punishable with imprisonment for a term which may extend to one year, or with fine, which may extend to twenty-five crore rupees, or with both, and also with a further fine which may extend to ten lakh rupees for every day after the first day during which the failure or refusal continues. 11 ----- **17. Search and seizure.—(1) Where the Authority, in consequence of information in its possession,** has reason to believe that– (a) any person who has been required under sub-section (3) of section 16 to produce, or cause to be produced, any books, accounts or other documents in his custody or power has omitted or failed to produce, or cause to be produced, such books, accounts or other documents; or (b) any person to whom a requisition to produce any books, accounts or other documents as aforesaid has been or might be issued will not, or would not, produce or cause to be produced, any books, accounts or other documents which will be useful for, or relevant to, an investigation under sub-section (1) of section 16; or (c) a contravention of any provision of this Act has been committed or is likely to be committed by an intermediary; or (d) any claim which is due to be settled by the intermediary, has been or is likely to be rejected or settled at a figure higher than a reasonable amount; or (e) any claim which is due to be settled by an intermediary, has been or is likely to be rejected or settled at a figure lower than a reasonable amount; or (f) any illegal fees and charges have been transacted or are likely to be transacted by an intermediary; or (g) any books, accounts, papers, receipts, vouchers, survey reports or other documents, belonging to an intermediary are likely to be tampered with, falsified or manufactured, it may authorise any officer of the Authority, not below the rank equivalent to that of a Gazetted Officer of the Government (hereafter referred to as the authorised officer), to– (i) enter and search any building or place where he has reason to suspect that such books, accounts or other documents, or any books or papers relating to any claim, rebate or commission or any receipts, vouchers, reports or other documents are kept; (ii) break open the lock of any box, locker, safe, almirah or other receptacle for exercising the powers conferred by clause (i) where the keys thereof are not available; (iii) seize all or any such books, accounts or other documents, found as a result of such search; (iv) place marks of identification on such books, accounts or other documents or make or cause to be made extracts or copies therefrom. (2) The authorised officer may requisition the services of any police officer or of any officer of the Central Government, or of both, to assist him for all or any of the purposes specified in sub-section (1) and it shall be the duty of every such police officer or officer to comply with such requisition. (3) The authorised officer may, where it is not practicable to seize any such book, account or other document, specified in sub-section (1), serve an order on the person who is in immediate possession or control thereof that he shall not remove, part with or otherwise deal with it except with the previous permission of such officer and such officer may take such steps as may be necessary for ensuring compliance with this sub-section. (4) The authorised officer may, during the course of the search or seizure, examine on oath any person who is found to be in possession or control of any books, accounts or other documents, and any statement made by such person during such examination may thereafter be used in evidence in any proceeding under this Act. (5) The books, accounts, papers, receipts, vouchers, reports, or other documents seized under sub section (1) shall not be retained by the authorised officer for a period exceeding one hundred and eighty days from the date of the seizure unless the reasons for retaining the same are recorded by him in writing and the approval of the Authority for such retention is obtained: 12 ----- Provided that the Authority shall not authorise the retention of the books, accounts, papers, receipts, vouchers, reports, or other documents for a period exceeding thirty days after all the proceedings under this Act, for which the books, accounts, papers, receipts, vouchers, reports, or other documents are relevant, are completed. (6) The person from whose custody the books, accounts, papers, receipts, vouchers, reports, or other documents are seized under sub-section (1) may make copies thereof, or take extracts therefrom, in the presence of the authorised officer or any other person empowered by him in this behalf at such place and time as the authorised officer may appoint in this behalf. (7) If a person legally entitled to the books, accounts, papers, receipts, vouchers, reports or other documents seized under sub-section (1) objects for any reason to the approval given by the Authority under sub-section (5), he may make an application to the Central Government stating therein the reason for such objection and requesting for the return of the books, accounts, papers, receipts, vouchers, report or other documents. (8) On receipt of the application under sub-section (7), the Central Government may, after giving the applicant an opportunity of being heard, pass such order as it thinks fit. (9) The provisions of the Code of Criminal Procedure, 1973(2 of 1974) relating to searches and seizures shall apply, so far as may be, to every search and seizure made under sub-section (1). (10) The Central Government may, by notification, make rules in relation to any search or seizure under this section and in particular, and without prejudice to the generality of the foregoing power, such rules may provide for the procedure to be followed by the authorised officer,– (i) for obtaining ingress into such building or place to be searched where free ingress thereto is not available; (ii) for ensuring safe custody of any books, accounts, papers, receipts, vouchers, reports, or other documents seized under this section. **18.Power of Authority to ensure compliance.—If the Authority finds, after causing an inquiry to be** made, that any person has violated, or is likely to violate, any provisions of this Act, or any rule or regulation made thereunder, the Authority may pass an order requiring such person to cease and desist from committing or causing such violation. **19. Management by Administrator.—(1) If at any time the Authority has reason to believe that the** central recordkeeping agency or pension fund is acting in a manner likely to be prejudicial to the interest of subscribers, it may, after giving the central recordkeeping agency or pension fund, as the case may be, an opportunity of being heard, make a report thereon to the Central Government. (2) If the Central Government, after considering the report made under sub-section (1) is of the opinion, that it is necessary or proper to do so, it may appoint an Administrator to manage the affairs of the central recordkeeping agency or pension fund, as the case may be, under the direction and control of the Authority, in such manner as may be specified by notification. CHAPTER VI NATIONAL PENSION SYSTEM **20. National Pension System.—(1) The contributory pension system notified by the Government of** India in the Ministry of Finance _vide_ notification number F. No. 5/7/2003-ECB & PR, dated the 22nd December, 2003, shall be deemed to be the National Pension System with effect from the 1st day of January, 2004, and such National Pension System may be amended from time to time by regulations. (2) Notwithstanding anything contained in the said notification, the National Pension System shall, on the commencement of this Act, have the following basic features, namely:– (a) every subscriber shall have an individual pension account under the National Pension System; 13 ----- (b) withdrawals, not exceeding twenty-five per cent. of the contribution made by the subscriber, may be permitted from the individual pension account subject to the conditions, such as purpose, frequency and limits, as may be specified by the regulations; (c) the functions of recordkeeping, accounting and switching of options by the subscriber shall be effected by the central recordkeeping agency; (d) there shall be a choice of multiple pension funds and multiple schemes: Provided that— (a) the subscriber shall have an option of investing up to hundred per cent. of his funds in Government Securities; and (b) the subscriber, seeking minimum assured returns, shall have an option to invest his funds in such schemes providing minimum assured returns as may be notified by the Authority; (e) there shall be portability of individual pension accounts in case of change of employment; (f) collection and transmission of contributions and instructions shall be through points of presence to the central recordkeeping agency; (g) there shall not be any implicit or explicit assurance of benefits except market based guarantee mechanism to be purchased by the subscriber; (h) a subscriber shall not exit from the National Pension System except as may be specified by the regulations; and (i) at exit, the subscriber shall purchase an annuity from a life insurance company in accordance with the regulations. (3) In addition to the individual pension account mentioned in clause (a) of sub-section (2), a subscriber may also, at his option, have an additional account under the National Pension System having the features mentioned in clauses (c) to (g) of sub-section (2) and also having the additional feature that the subscriber shall be free to withdraw part or all of his money at any time from the additional account. **21. Central Recordkeeping Agency.—(1) The Authority shall, by granting a certificate of** registration under sub-section (3) of section 27, appoint a central recordkeeping agency: Provided that the Authority may, in public interest, appoint more than one central recordkeeping agency. (2) The central recordkeeping agency shall be responsible for receiving instructions from subscribers through the points of presence, transmitting such instructions to pension funds, effecting switching instructions received from subscribers and discharging such other duties and functions, as may be assigned to it under the certificate of registration or as may be determined by regulations. (3) All the assets and properties owned, leased or developed by the central recordkeeping agency, shall constitute regulated assets and upon expiry of certificate of registration or earlier revocation thereof, the Authority shall be entitled to appropriate and take over the regulated assets, either by itself or through an administrator or a person nominated by it in this behalf: Provided that the central recordkeeping agency shall be entitled to be compensated the fair value, to be ascertained by the Authority, of such regulated assets as may be determined by regulations: Provided further that where the earlier revocation of the certificate of registration is based on violation of the conditions in the certificate of registration or the provisions of this Act or regulations, unless otherwise determined by the Authority, the central recordkeeping agency shall not be entitled to claim any compensation in respect of such regulated assets. 14 ----- **22. Point of presence.—(1) The Authority may, by granting a certificate of registration under sub-** section (3) of section 27, permit one or more persons to act as a point of presence for the purpose of receiving contributions and instructions, transmitting them to the Trustee Bank or the central recordkeeping agency, as the case may be, and paying out benefits to subscribers in accordance with the regulations made by the Authority from time to time in this regard. (2) A point of presence shall functions in accordance with the terms of its certificate of registration and the regulations made under this Act. **23.Pension funds.—(1) The Authority may, by granting a certificate of registration under sub-section** (3) of section 27, permit one or more persons to act as a pension fund for the purpose of receiving contributions, accumulating them and making payments to the subscriber in such manner as may be specified by regulations. (2) The number of pension funds shall be determined by regulations and the Authority may, in public interest, vary the number of pension funds: Provided that at least one of the pension funds shall be a Government company. _Explanation.—For the purposes of this sub-section, the expression “Government company” shall_ have the meaning assigned to it in section 617 of the Companies Act, 1956 (1 of 1956). (3) The pension fund shall function in accordance with the terms of its certificate of registration and the regulations made under this Act. (4) The pension fund shall manage the schemes in accordance with the regulations. **24. Certain restrictions on foreign companies or individual or association of persons.—The** aggregate holding of equity shares by a foreign company either by itself or through its subsidiary companies or its nominees or by an individual or by an association of persons whether registered or not under any law of a country outside India taken in aggregate in the pension fund shall not exceed twentysix per cent. of the paid-up capital of such fund or such percentage as may be approved for an Indian insurance company under the provisions the Insurance Act, 1938 (4 of 1938) whichever is higher. _Explanation.—For the purposes of this section, the expression “foreign company” shall have the_ meaning assigned to it in clause (23A) of section 2 of the Income-tax Act, 1961 (43 of 1961). **25. Prohibition of investment of funds of subscribers outside India.—No pension fund shall,** directly or indirectly invest outside India, the funds of subscribers. **26. Eligibility norms of the central recordkeeping agency, etc.—The central recordkeeping** agency, points of presence and pension funds, shall satisfy the eligibility norms as may be specified by the regulations, including minimum capital requirement, past track-record including the ability to provide guaranteed returns, costs and fees, geographical reach, customer base, information technology capability, human resources and such other matters. CHAPTER VII REGISTRATION OF INTERMEDIARIES **27. Registration of central recordkeeping agency, pension fund, point of presence, etc.—(1) No** intermediary, including a pension fund or a point of presence to the extent regulated under this Act, shall commence any activity relating to a pension fund except under and in accordance with the conditions of a certificate of registration granted by the Authority in accordance with the provisions of this Act and the regulations: 15 ----- Provided that any intermediary, including any point of presence, who had been associated with a pension scheme and appointed to act as such by the Interim Pension Fund Regulatory and Development Authority immediately before the establishment of the Authority under this Act for which no registration certificate was necessary prior to such establishment, and may continue to do so for a period of six months from such establishment or, if he has made an application for such registration within the said period of six months till the disposal of such application. (2) Every application for grant of a certificate of registration under this Act shall be in such form and manner and shall be accompanied by such fees as may be determined by regulations. (3) The Authority may, after considering the application and subject to such terms and conditions as it may specify, grant a certificate of registration as a central recordkeeping agency, point of presence, pension fund or such other intermediary, as the case may be. (4) The Authority may, by order, suspend or cancel a certificate of registration granted under sub section (3) in such manner as may be determined by regulations: Provided that no order under this sub-section shall be made unless the person concerned has been given a reasonable opportunity of being heard. CHAPTER VIII PENALTIES AND ADJUDICATION **28. Penalty for failure by an intermediary or any other person to comply with provisions or this** **Act, rules, regulations and directions.—(1) Any person, who is required under this Act or any rules or** regulations made thereunder,— (a) to obtain a certificate of registration from the Authority for carrying on any activity under this Act, carries on such activities without obtaining such certificate of registration, he shall be liable to a penalty of one lakh rupees for each day during which the failure continues or one crore rupees, whichever is less; (b) to comply with the terms and conditions of a certificate of registration fails to do so, he shall be liable to a penalty of one lakh rupees for each day during which the failure continues or one crore rupees, whichever is less; (c) to furnish any information, document, books, returns or report to the Authority, fails to furnish the same within the time specified by the Authority, he shall be liable to a penalty which may extend to one crore rupees or five times the amount of profits made or losses avoided, whichever is higher; (d) to maintain books of account or records, fails to maintain the same, he shall be liable to a penalty of one lakh rupees for each day during which the failure continues or five times the amount of profits made or losses avoided, whichever is higher. (2) If any person, who is required under this Act or any rules or regulations made thereunder, to enter into an agreement with his client, fails to enter into such agreement, he shall be liable to a penalty of one lakh rupees for each day during which the failure continues or five times the amount of profits made or losses avoided, whichever is higher. (3) If any intermediary registered with the Authority, after having been called upon by the Authority, in writing, to redress the grievances of subscribers, fails to redress such grievances within the time stipulated by the Authority, he shall be liable to a penalty of not more than one crore rupees or five times the amount of profits made or losses avoided, whichever is higher. (4) If any person, who is registered under this Act as an intermediary, fails to segregate moneys of the client or clients or uses the moneys of a client or clients for self or for any other client, he shall be liable to a penalty not exceeding one crore rupees or five times the amount of profits made or losses avoided, whichever is higher. (5) Whoever fails to comply with any provision of this Act, the rules or the regulations made or the directions issued by the Authority under the provisions of this Act for which no separate penalty has been 16 ----- provided, he shall be liable to a penalty which may extend to one crore rupees or five times the amount of profits made or losses avoided, whichever is higher. **29. Crediting sums realised by way of penalties to Subscriber Education and Protection** **Fund.—All sums realised by way of penalties under this Act shall be credited to the Subscriber** Education and Protection Fund established under sub-section (1) of section 41. **30. Power to adjudicate.—(1) For the purposes of adjudging under section 28, the Authority shall** appoint any of its officers not below the rank specified by regulations to be an adjudicating officer for holding an inquiry as may be determined by regulations, after giving the person concerned a reasonable opportunity of being heard for the purpose of imposing any penalty. (2) While holding an inquiry, the adjudicating officer shall have the power to summon and enforce the attendance of any person acquainted with the facts and circumstances of the case to give evidence or to produce any document which, in the opinion of the adjudicating officer, may be useful for or relevant to the subject matter of the inquiry and if, on such inquiry, he is satisfied that the person has failed to comply with the provisions of section 28, he may recommend such penalty as he thinks fit in accordance with the provisions of that section, to the member in charge of investigation and surveillance. (3) The penalty shall be imposed by a member other than the member in charge of investigation and surveillance: Provided that while adjudging the quantum of penalty under section 28, the member shall have due regard to the following factors, namely:— (a) amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default; (b) amount of loss caused to a subscriber or group of subscribers; and (c) the repetitive nature of the default. **31. Attachment of assets and supersession of management of intermediary.—(1) Any person** aggrieved may apply to the Authority for an interim measure of protection in respect of any of the following matters, namely:– (a) the retention, preservation, interim custody or sale of any asset or property which is regulated by the provisions of this Act; (b) securing any pension fund, moneys and other assets and properties owned by or under the control of the pension fund; (c) interim injunction or appointment of an administrator; and (d) such other interim measures as may appear to the Authority to be just and necessary, and the Authority shall have power to make such orders including an order for attachment of assets of the pension fund as it deems fit in this regard. (2) Where, on a complaint received by the Authority or _suo motu, the Authority, after conducting an_ inquiry, comes to a conclusion that the governing board or board of directors, by whatever name called, or the persons in control of any intermediary to the extent regulated under this Act are indulging in any activity which is in contravention of the provisions of this Act or regulations, it may supersede the governing board or board of directors or management of the intermediary in accordance with the provisions of the regulations. (3) In case the governing board or board of directors or management of an intermediary is superseded under sub-section (2), the Authority may appoint an Administrator to manage the affairs of the intermediary in accordance with the provisions contained in the regulations. **32. Offences.—(1) Without prejudice to any award of penalty by the member under this Act, if any** person contravenes or attempts to contravene or abets the contravention of the provisions of this Act or of 17 ----- any rules or regulations made thereunder, he shall be punishable with imprisonment for a term which may extend to ten years, or with fine, which may extend to twenty-five crore rupees or with both. (2) If any person fails to pay the penalty imposed by the member or fails to comply with any of the directions or orders issued by the member, he shall be punishable with imprisonment for a term which shall not be less than one month but which may extend to ten years, or with fine, which may extend to twenty-five crore rupees, or with both. **33. Power to grant immunity.—(1) The Central Government may, on the recommendation by the** Authority, if satisfied, that any person, who is alleged to have violated any of the provisions of this Act or the rules or the regulations made thereunder, has made a full and true disclosure in respect of alleged violation, grant to such person, subject to such conditions as it may think fit to impose, immunity from prosecution for any offence under this Act, or the rules or the regulations made thereunder and also from the imposition of any penalty under this Act with respect to the alleged violation: Provided that no such immunity shall be granted by the Central Government in cases where the proceedings for the prosecution for any such offence have been instituted before the date of receipt of application for grant of such immunity: Provided further that the recommendation of the Authority under this sub-section shall not be binding upon the Central Government. (2) An immunity granted to a person under sub-section (1) may, at any time, be withdrawn by the Central Government, if it is satisfied that such person had, in the course of the proceedings, not complied with the condition on which the immunity was granted or had given false evidence, and thereupon such person may be tried for the offence with respect to which the immunity was granted or for any other offence of which he appears to have been guilty in connection with the contravention and shall also become liable to the imposition of any penalty under this Act to which such person would have been liable, had no such immunity been granted. **34. Exemption from tax on wealth, income, profits and gains.—Notwithstanding anything** contained in– (i) the Wealth-tax Act, 1957 (27 of 1957); (ii) the Income-tax Act, 1961(43 of 1961); or (iii) any other enactment for the time being in force relating to tax on wealth, income, profits or gains, the Authority shall not be liable to pay wealth-tax, income-tax or any other tax in respect of its wealth, income, profits or gains derived. **35. Cognizance of offences by court.—(1) No court shall take cognizance of any offence punishable** under this Act or any rules or regulations made thereunder, save on a complaint made by the Authority. (2) No court inferior to that of a Court of Session shall try any offence punishable under this Act. **36.Appeal to Securities Appellate Tribunal.—(1) Any person aggrieved by an order made by the** Authority or by an adjudicating officer under this Act may prefer an appeal before the Securities Appellate Tribunal which shall have jurisdiction over the matter. (2) Every appeal under sub-section (1) shall be filed within a period of forty-five days from the date of receipt of the order appealed against and it shall be in such form and manner and shall be accompanied by such fee as may be prescribed: Provided that the Securities Appellate Tribunal may entertain an appeal after the expiry of the said period, if it is satisfied that there was sufficient cause for not preferring the appeal within that period. (3) On receipt of an appeal under sub-section (1), the Securities Appellate Tribunal may, after giving the parties to the appeal, an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or setting aside the order appealed against. 18 ----- (4) The Securities Appellate Tribunal shall send a copy of every order made by it to the Authority, the parties to the appeal and to the adjudicating officers concerned. (5) The appeal filed before the Securities Appellate Tribunal under sub-section (1) shall be dealt with by it as expeditiously as possible and endeavour shall be made by it to dispose of the appeal finally within six months from the date on which the appeal is presented to it. (6) Without prejudice to the provisions of sections 15T and 15U of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Securities Appellate Tribunal shall deal with an appeal under this section in accordance with such procedure as may be prescribed. **37. Civil Court not to have jurisdiction.—No civil court shall have jurisdiction to entertain any suit** or proceeding in respect of any matter which an adjudicating officer appointed under this Act or a Securities Appellate Tribunal is empowered by or under this Act to determine and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act. **38.Appeal to Supreme Court.— Any person aggrieved by any decision or order of the Securities** Appellate Tribunal under this Act may file an appeal to the Supreme Court within sixty days from the date of communication of the decision or order of the Securities Appellate Tribunal to him on any question of law arising out of such order: Provided that the Supreme Court may, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within the said period, allow it to be filed within a further period not exceeding sixty days. CHAPTER IX FINANCE, ACCOUNT AND ADUIT **39. Grants by Central Government.—The Central Government may, after due appropriation made** by Parliament by law in this behalf, make to the Authority grants of such sums of money as that Government may think fit for being utilised for the purposes of this Act. **40. Constitution of Pension Regulatory and Development Fund.—(1) There shall be constituted a** fund to be called the Pension Regulatory and Development Fund and there shall be credited thereto— (a) all Government grants, fees and charges received by the Authority; (b) all sums received by the Authority from such other source as may be decided upon by the Central Government. (2) The Fund shall be applied for meeting— (a) the salaries, allowances and other remuneration of the Chairperson and other members and officers and other employees of the Authority; (b) other expenses of the Authority in connection with the discharge of its functions and for the purposes of this Act. **41.Constitution of Subscriber Education and Protection Fund.—(1) The Authority shall establish** a fund to be called the Subscriber Education and Protection Fund. (2) There shall be credited to the Subscriber Education and Protection Fund the following amounts, namely:— (a) grants and donations given to the Subscriber Education and Protection Fund by the Central Government, State Governments, companies or any other institutions for the purposes of the Subscriber Education and Protection Fund; (b) the interest or other income received out of the investments made from the Subscriber Education and Protection Fund; (c) the sums realised by way of penalties by the Authority under section 28. 19 ----- (3) The Subscriber Education and Protection Fund shall be administered and utilised by the Authority for protection of the interests of subscribers in accordance with regulations made for the purpose. **42. Accounts and audit.—(1) The Authority shall maintain proper accounts and other relevant** records and prepare an annual statement of accounts in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India. (2) The accounts of the Authority shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Authority to the Comptroller and Auditor-General. (3) The Comptroller and Auditor-General of India and any other person appointed by him in connection with the audit of the accounts of the Authority shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General generally has in connection with the audit of the Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Authority. (4) The accounts of the Authority as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf, together with the audit-report thereon, shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament. CHAPTER X MISCELLANEOUS **43.Power of Central Government to issue directions.—(1) Without prejudice to the foregoing** provisions of this Act, the Authority shall, in exercise of its powers or the performance of its functions under this Act, be bound by such directions on questions of policy, other than those relating to technical and administrative matters, as the Central Government may give, in writing to it, from time to time: Provided that the Authority shall, as far as practicable, be given an opportunity to express its views before any direction is given under this sub-section. (2) The decision of the Central Government, whether a question is one of policy or not, shall be final. **44. Power of Central Government to supersede Authority.—(1) If at any time the Central** Government is of the opinion that— (a) on account of circumstances beyond the control of the Authority, it is unable to discharge the functions or perform the duties imposed on it by or under the provisions of this Act; or (b) the Authority has persistently defaulted in complying with any direction issued by the Central Government that the Central Government is entitled to issue under this Act or in the discharge of the functions or performance of the duties imposed on it by or under the provisions of this Act and as a result of such default the financial position of the Authority or the administration of the Authority has deteriorated; or (c) circumstances exist which render it necessary in the public interest so to do, the Central Government may, by notification and for reasons to be specified therein, supersede the Authority for such period, not exceeding six months, as may be specified in the notification: Provided that before issuing any such notification, the Central Government shall give a reasonable opportunity to the Authority to make representations against the proposed supersession and shall consider the representations, if any, of the Authority. (2) Upon the publication of a notification under sub-section (1) superseding the Authority,— (a) the Chairperson and other members shall, as from the date of supersession, vacate their offices as such; 20 ----- (b) all the powers, functions and duties which may, by or under the provisions of this Act, be exercised or discharged by or on behalf of the Authority shall, until the Authority is reconstituted under sub-section (3), be exercised and discharged by the Central Government; and (c) all properties owned or controlled by the Authority shall, until the Authority is reconstituted under sub-section (3), vest in the Central Government. (3) On or before the expiration of the period of supersession specified in the notification issued under sub-section (1), the Central Government shall reconstitute the Authority. (4) The Central Government shall, as soon as may be, cause a copy of the notification issued under sub-section (1) and a full report of any action taken by it, to be laid before each House of Parliament. **45. Establishment of Pension Advisory Committee.—(1) The Authority may, by notification,** establish with effect from such date as it may specify in the notification, a Committee to be known as the Pension Advisory Committee. (2) The Pension Advisory Committee shall consist of not more than twenty-five members, excluding _ex officio_ members, to represent the interests of employees’ associations, subscribers, commerce and industry, intermediaries, and organisations engaged in pension research. (3) The Chairperson and the members of the Authority shall be the _ex officio_ Chairperson and _ex_ _officio members of the Pension Advisory Committee._ (4) The objects of the Pension Advisory Committee shall be to advise the Authority on matters relating to the making of the regulations under section 52. (5) Without prejudice to the provisions of sub-section (4), the Pension Advisory Committee may advise the Authority on such matters as may be referred to it by the Authority and also on such matters as the Committee may deem fit. **46. Furnishing of returns, etc., to Central Government.—(1) The Authority shall furnish to the** Central Government at such time and in such form and manner as may be prescribed, or as the Central Government may direct to furnish such returns, statements and other particulars in regard to any proposed or existing programme for the promotion and development of the pension industry as the Central Government may, from time to time, require. (2) Without prejudice to the provisions of sub-section (1), the Authority shall, within nine months after the close of each financial year, submit to the Central Government a report giving a true and full account of its activities including the activities for promotion and development of schemes of pension funds regulated under this Act during the previous financial year. (3) Copies of the reports received under sub-section (2) shall be laid, as soon as may be, after they are received, before each House of Parliament. **47. Members, officers and employees of Authority to be public servants.—The Chairperson and** other members and officers and other employees of the Authority shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this Act, to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **48. Protection of action taken in good faith.—No suit, prosecution or other legal proceedings shall** lie against the Central Government or the Authority or any officer of Central Government or any member, officer or other employees of the Authority for anything which is in good faith done or intended to be done under this Act or the rules or regulations made thereunder. **49. Delegation of powers.—(1) The Authority may, by general or special order in writing, delegate** to any member, officer of the Authority or any other person subject to such conditions, if any, as may be specified in the order, such of its powers and functions under this Act (except the powers under section 52) as it may deem necessary. (2) The Authority may, by a general or special order in writing, also form committees of the members and delegate to them the powers and functions of the Authority as may be specified by the regulations. 21 ----- **50. Offences by companies.—(1) Where an offence under this Act has been committed by a** company, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act if he proves that the offence was committed without his knowledge or that he has exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section,—_ (a) “company” means any body corporate and includes a firm or other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm. 1[50A. Powers of Authority not to apply to International Financial Services Centre.— Notwithstanding anything contained in any other law for the time being in force, the powers exercisable by the Authority under this Act,— (a) shall not extend to an International Financial Services Centre set up under sub-section (1) of section 18 of the Special Economic Zones Act, 2005 (28 of 2005); (b) shall be exercisable by the International Financial Services Centres Authority established under sub-section (1) of section 4 of the International Financial Services Centres Authority Act, 2019, in so far as regulation of financial products, financial services and financial institutions that are permitted in the International Financial Services Centres are concerned.] **51.Power to make rules.—(1) The Central Government may, by notification, make rules for carrying** out the provisions of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the salary and allowances payable to and the other conditions of service of the Chairperson and whole-time members under sub-section (3) of section 5; (b) the allowances payable to part-time members under sub-section (4) of section 5; (c) the additional functions which may be performed by the Authority under clause (p) of sub section (2) of section 14; (d) any other matter in respect of which the Authority may exercise the powers of a civil court under clause (v) of sub-section (3) of section 14; (e) the procedure to be followed by the authorised officer under sub-section (10) of section 17; (f) the form and manner in which an appeal may be filed before the Securities Appellate Tribunal and the fee which shall accompany such appeal, under sub-section (2) of section 36; (g) the procedure to be followed by the Securities Appellate Tribunal in dealing with an appeal, under sub-section (6) of section 36; 1. Ins. by Act 50 of 2019, s. 33 and the second Schedule (w.e.f. 1-10-2020). 22 ----- (h) the form in which annual statement of accounts shall be maintained by the Authority under sub-section (1) of section 42; (i) the time within which and the form and manner in which returns and reports are to be made by the Authority to the Central Government under sub-section (1) of section 46; (j) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be made, by rules. **52. Power to make regulations.—(1) The Authority may, by notification, make regulations** consistent with this Act and the rules made thereunder for carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:— (a) the time and places of meetings of the Authority and the procedure to be followed at such meetings (including the quorum at such meetings) under sub-section (1) of section 9; (b) the terms and other conditions of service of the officers and other employees of the Authority under sub-section (2) of section 11; (c) the regulations to be made by the Authority in respect of pension schemes referred to in clause (b) of sub-section (1) of section 12 and the time within which such schemes should conform to the regulations, made under sub-section (2) of that section; (d) the establishing of mechanisms for redressing grievances of subscribers under clause (f) of sub-section (2) of section 14; (e) the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by intermediaries under clause (n) of sub-section (2) of section 14; (f) amendment to the National Pension System referred to in sub-section (1) of section 20; (g) the conditions of its purpose, frequency and limits for withdrawals from individual pension account referred to in clause (b) of sub-section (2) of section 20; (h) the conditions subject to which the subscriber shall exit from the National Pension System referred to in clause (h) of sub-section (2) of section 20; (i) the conditions subject to which the subscriber shall purchase an annuity referred to in clause (i) of sub-section (2) of section 20; (j) the duties and functions of central recordkeeping agency under sub-section (2) of section 21; (k) the determination of compensation of fair value of the regulated assets payable to central recordkeeping agency under proviso to sub-section (3) of section 21; (l) the manner of receiving contributions and instructions and transmitting them to the Trustee Bank or central recordkeeping agency, as the case may be, and paying out the benefits to the subscribers, under sub-section (1), and the regulations governing functioning of points of presence under sub-section (2) of section 22; (m) the manner in which a pension fund may receive contributions, accumulate them and make payments to the subscriber under sub-section (1), the number of pension funds under sub-section (2), the functioning of the pension fund under sub-section(3), and the manner of managing the schemes by the pension fund under sub-section (4) of section 23; (n) the form and manner in which an application for grant of certificate of registration shall be made and the fee which shall accompany such application under sub-section (2) of section 27; (o) the conditions subject to which a certificate of registration may be granted to an intermediary under sub-section (3) of section 27; (p) the procedure and manner of suspension or cancellation of certificate of registration of intermediaries under sub-section (4) of section 27; 23 ----- (q) the procedure for holding inquiry by an adjudicating officer under sub-section (1) of section 30; (r) the supersession of the governing board or board of directors of the intermediary under sub section (2) of section 31; (s) the management of affairs of the intermediary by an Administrator under sub-section (3) of section 31; (t) the manner of administering and utilising the Subscriber Education and Protection Fund under sub-section (3) of section 41; (u) the delegation of powers and functions of the Authority to committees under sub-section (2) of section 49; (v) establishment, duties and functioning of the National Pension System Trust; (w) any other matter which is required to be or may be specified by regulations or in respect of which provision is to be or may be made by regulations. **53. Rules and regulations to be laid before Parliament.—Every rule and every regulation made** under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. **54. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order, published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear it to be necessary for removing the difficulty: Provided that no order shall be made under this section after the expiry of five years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **55. Application of other laws not barred.—The provisions of this Act shall be in addition to and** not in derogation of the provisions of any other law for the time being in force. **56. Savings.—Anything done or any action taken by the Interim Pension Fund Regulatory and** Development Authority and Central Government under the Resolutions of the Government of India in the Ministry of Finance number F. No. 5/7/2003-ECB&PR, dated the 10th October, 2003 and F.No.1(6)2007PR, dated the 14th November, 2008 and notification number F. No. 5/7/2003-ECB & PR, dated the 22nd December, 2003, shall be deemed to have been done or taken under the corresponding provisions of this Act. 24 -----

18-Sep-2013

26

The Rajiv Gandhi National Aviation University Act, 2013

https://www.indiacode.nic.in/bitstream/123456789/2120/1/201326.pdf

central

# THE RAJIV GANDHI NATIONAL AVIATION UNIVERSITY ACT, 2013 _______________ ARRANGEMENT OF SECTIONS _________ SECTIONS 1. Short title and commencement. 2. Definitions. 3. Establishment of University. 4. Objects of University. 5. Powers of University. 6. Jurisdiction. 7. University open to all classes, castes and creed. 8. Fund of University. 9. The Visitor. 10. Officers of University. 11. The Chancellor. 12. The Vice-Chancellor. 13. The Deans of Schools. 14. The Registrar. 15. The Finance Officer. 16. The Controller of Examinations. 17. Other officers. 18. Authorities of University. 19. The Court. 20. The Executive Council. 21. The Academic Council. 22. The Board of Affiliation and Recognition. 23. The Boards of Schools. 24. The Finance Committee. 25. Other authorities of University. 26. Power to make Statutes. 27. Statutes how to be made. 28. Power to make Ordinances. 29. Regulations. 30. Annual report. 31. Annual accounts. 32. Returns and information. 33. Conditions of service of employees. 34. Tribunal of Arbitration. 35. Procedure of appeal and arbitration in disciplinary cases against students. 36. Right to appeal. 37. Provident and pension fund. 38. Disputes as to constitution of University and bodies. 39. Constitution of Committees. 40. Filling of casual vacancies. 41. Proceedings of University authorities or bodies not invalidated by vacancies. 1 ----- SECTIONS 42. Protection of action taken in good faith. 43. Mode of proof of University record. 44. Power to remove difficulties. 45. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid before Parliament. 46. Transitional provisions. 47. Completion of courses of studies in Colleges or Institutions affiliated to University. 48. Role of Central Government. 2 ----- # THE RAJIV GANDHI NATIONAL AVIATION UNIVERSITY ACT, 2013 ACT NO. 26 OF 2013 [18th September, 2013.] An Act to establish and incorporate a national aviation University to facilitate and promote aviation studies and research to achieve excellence in areas of aviation management, policy, science and technology, aviation environment, training in governing fields of safety and security regulations on aviation and other related fields to produce quality human resources to cater to the needs of the aviation sector and to provide for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Sixty-fourth Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the Rajiv Gandhi National Aviation** University Act, 2013. _(2) It shall come into force on such date[1] as the Central Government may, by notification in the_ Official Gazette, appoint and different dates may be appointed for different provisions of this Act. **2. Definitions.—In this Act, and in all Statutes made hereunder, unless the context otherwise** requires,— (a) “Academic Council” means the Academic Council of the University; (b) “academic staff” means such categories of staff as are designated as academic staff by the Ordinances; (c) “Board of Schools” means the Board of Schools of the University; (d) “Campus” means the unit established or constituted by the University for making arrangements for instruction, research, education and training; (e) “Chancellor and Vice-Chancellor” mean, respectively, the Chancellor and Vice-Chancellor of the University; (f) “College” means a college maintained by or admitted to the privileges of the University for imparting education and training in aviation studies or in its associated disciplines; (g) “Court” means the Court of the University; (h) “Dean of School” means an administrative officer in charge of a college, faculty or a Division in a University; (i) “Department” means a Department of Studies and includes a Centre of Studies; (j) “Director General” means the Director General of Civil Aviation; (k) “Distance Education System” means the system of imparting education through any means of communication, such as broadcasting, telecasting, internet, correspondence courses, seminars, contact programmes, e-learning or the combination of such means; (l) “employee” means any person appointed by the University and includes teachers and other staff of the University; (m) “Executive Council” means the Executive Council of the University; (n) “Finance Committee” means the Finance Committee of the University; 1.18th November, 2013, vide notification No. S.O. 3446 (E), dated 18th November, 2013, _see Gazette of India,_ Extraordinary, Part II, sec. 3(ii). 3 ----- _(o) “Hall” means a unit of residence for the students of the University or of a College or an_ Institution maintained by the University; (p) “Institution” means an institution, school, college or centre of studies maintained by or admitted to the privileges of the University for imparting education, training and research in aviation studies or in its associated disciplines; _(q) “notification” means a notification published in the Official Gazette;_ (r) “off-shore Campus” means an institution, college, centres, school or campus of the University established outside the country; (s) “principal” means the head of a college or an institution; (t) “recognised Institution” means an institution admitted to the privileges of the University for imparting education in aviation studies or its associated disciplines; (u) “recognised teachers” means such persons as are recognised by the University for the purpose of imparting instructions in a college or an institution admitted to the privileges of the University; (v) “school” means a School of Studies of the University; (w) “Statutes”, “Ordinances” and “Regulations” mean, respectively, the Statutes, the Ordinances and the Regulations of the University made under this Act; (x) “teachers of the University” means Professors, Associate Professors, Assistant Professors, Readers, Senior Lecturers, Lecturers and such other persons as may be appointed or recognised for imparting instruction or conducting research in the University or in any college or institution maintained by the University or for giving guidance to students for any course of study of the University are designated as teachers by the Statutes; (y) “University” means the National Aviation University established under this Act; (z) “University Grants Commission” means the Commission established under section 4 of the University Grants Commission Act, 1956 (3 of 1956). **3. Establishment of University.—(1) There shall be established a University by the name of “Rajiv** Gandhi National Aviation University”. (2) The headquarters of the University shall be at Fursatganj in the District of Raebareli in the State of Uttar Pradesh. (3) The University may establish or maintain campuses and centres at such other places within its jurisdiction as it may deem fit. (4) The first Chancellor, the first Vice-Chancellor, the first members of the Court, the Executive Council, the Academic Council, and all persons who may hereafter become such officers or members, so long as they continue to hold such office or membership, shall constitute the University. (5) The University shall have perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property and to contract, and shall by that name, sue and be sued. (6) The University shall be a teaching, research and affiliating Aviation University. **4. Objects of University.—The objects of the University shall be,—** (i) to facilitate and promote aviation studies, teaching, training, research and extension work with focus on emerging areas of studies such as aviation management, aviation regulation and policy, aviation history, aviation science and engineering, aviation law, aviation safety and security, aviation 4 ----- medicine, search and rescue, transportation of dangerous goods, environmental studies and other related fields, and also to achieve excellence in these and connected fields in emerging areas and such areas as may emerge in future; (ii) to promote advanced knowledge by providing institutional and research facilities in such branches of learning as it may deem fit and to make provisions for integrated courses in management, science and other key and frontier areas of technology and allied disciplines in the educational programmes of the University; (iii) to create an ambience for learning and scholarship in aviation technology; (iv) to take appropriate measures for ensuring and regulating the quality of aviation education programmes in India offered by recognised institutions; (v) to develop academic standards of an international level and undertake other measures as it may deemed fit, to facilitate the development for skilled aviation man power including the licensed category of aviation personnel; (vi) to develop various programmers for airlines, airport, aviation authorities and staff ranging from airline management and marketing, airport management, regulations and aviation law, aviation safety and security or any other programme and train manpower in aviation field; (vii) to take appropriate measures for promoting innovations in teaching-learning process, undertake inter-disciplinary studies and research. **5. Powers of University.—(1) The University shall have the following powers, namely:—** (i) to provide for instructions in the aviation related natural sciences, social sciences, humanities, engineering, technology and medicine or as the University may, from time to time, determine and to make provision for research and for the advancement and dissemination of knowledge; (ii) to recognise aviation training colleges and institutes and to make provisions for recognising of such colleges and institutions, maintenance of standards and to undertake special studies; (iii) to establish and maintain campuses, departments, laboratories, libraries, museums, centres of research, training and specialised studies; (iv) to establish and maintain hostel, health centres and other related facilities like auditoria, playgrounds, gymnasiums, swimming pools and training facilities; (v) to establish linkages and collaborate with any other college or University, research institution, industry association, professional or any other organisations in India or outside India to conceptualise, design and develop specific programmes on aviation as part of education and research, training programmes and exchange programmes for students, academic staff and others; (vi) to provide for establishment of campuses, colleges and Institutions for serving a group of recognised colleges and to provide for and maintain commoner source centres in such campuses in the form of libraries, laboratories, computer centres and the like centres of learning; (vii) to prepare educational programmes or courses leading to award of Diploma, Degree, Post Graduate Degrees in the field of civil aviation; (viii) to grant, subject to such conditions as the University may determine, degrees including doctoral degrees, diplomas or certificates other than Certificates of Competencies of licensed aviation personnel, which shall continue to be issued by Director General of Civil Aviation, Government of India till the Central Government otherwise decides, and confer degrees and other academic distinctions on the basis of examinations, evaluation or any other method of testing on persons, and to withdraw any such degrees including doctoral degrees, diplomas, certificates, or other academic distinctions for good and sufficient cause; 5 ----- (ix) to confer honorary degrees or other distinctions in the manner prescribed by the Statutes; (x) to organise and to undertake extra-mural studies, training and extension services; (xi) to institute Directorships, Principalships, Professorships, Associate Professorships, Assistant Professorships and other teaching or academic positions, required by the University and to appoint persons to such Principalships, Professorships, Associate Professorships, Assistant Professorships or academic positions; (xii) to provide for the terms and conditions of service of Directors, Principals and teachers and other members of the academic staff appointed by the University; (xiii) to appoint persons working in any other University or organisation as teachers of the University for a specified period; (xiv) to recognise an institution of higher learning for such purposes as the University may determine and to withdraw such recognition; (xv) to organise and conduct refresher courses, workshops, seminars and other programmes for teachers, evaluators and other academic staff; (xvi) to appoint on contract or otherwise visiting Professors, Emeritus Professors, Consultants, Scholars and such other persons who may contribute to the advancement of the objects of the University; (xvii) to create teaching, non-teaching, administrative, ministerial and other posts in the University and to make appointments thereto; (xviii) to co-operate or collaborate or associate with any other University or authority or institution of higher learning within India or located outside the country, in such manner and for such purposes as the University may determine; (xix) to approve appointment of persons for imparting instructions in any institution admitted to the privileges of the University and to withdraw such approval; (xx) to inspect recognised institutions through suitable machinery established for the purpose, and to take measures to ensure that proper standards of instruction, teaching and training are maintained by them, and adequate library, laboratory, hospital, workshop and other academic facilities are provided for; (xxi) to coordinate the work of different colleges and institutions working in the same and similar areas; (xxii) to set up facilities like computer centre, training centre, instrumentation centre, library, simulators or other units for research and instruction as are, in the opinion of the University, necessary for the furtherance of its objects; (xxiii) to set up curriculum development centres for different subjects; (xxiv) to admit to its privileges colleges and institutions, not maintained by the University, and to withdraw all or any of those privileges in accordance with such conditions as may be prescribed by the Statutes; (xxv) to recognise guide, supervise and control Halls not maintained by the University and other accommodation for students, and to withdraw any such recognition; (xxvi) to make provision for research and advisory services and for that purpose, to enter into such arrangements with other institutions or bodies as the University may deem necessary; (xxvii) to determine standards of admission to the University, which may include examination, evaluation or any other method of testing; 6 ----- (xxviii) to institute and award fellowships, scholarships, studentships, assistantships, medals and prizes; (xxix) to demand and receive payment of fees and other charges; (xxx) to supervise the residences of the students of the University and to make arrangements for promoting their health and general welfare; (xxxi) to make such special arrangements in respect of women students as the University may consider desirable; (xxxii) to regulate the conduct of the students of the University; (xxxiii) to control and regulate admission of students for various courses of study in Departments, recognised institutions, schools and centres of studies; (xxxiv) to regulate the work and conduct of the employees of the University; (xxxv) to regulate and enforce discipline among the employees and students of the University and to take such disciplinary measures in this regard as may be deemed necessary; (xxxvi) to make arrangements for promoting the health and general welfare of the employees of the University; (xxxvii) to receive benefactions, donations and gifts from persons and to name after them such chairs, institutions, buildings and the like, the University may determine, whose gift or donation to the University is worth such amount as the University may decide; (xxxviii) to acquire, hold, manage and dispose of any property, movable or immovable, including trust and endowment properties for the purposes of the University; (xxxix) to borrow, with the approval of the Central Government, on the security of the property of the University, money for the purposes of the University; (xl) to assess needs of the students in terms of subjects, fields of specialisation, levels of education and training of technical manpower, both on short and long term basis, and to initiate necessary programmers to meet these needs; (xli) to initiate measures to enlist the co-operation of the industry to provide complementary facilities; (xlii) to provide for instruction through “distance learning” and “open approach” and for mobility of students from the non-formal open learning stream to the formal stream and vice versa; (xliii) to establish such campuses, special centres, specialised laboratories or other units for research and instruction as are, in the opinion of the University, necessary for the furtherance of its objective; (xliv) to confer autonomous status on a college or an institution or a Department, as the case may be, in accordance with the Statutes; (xlv) to arrange for the training to upgrade aviation standard of the employees of the industry and institutes and to levy fees for such training as prescribed by the Statutes; (xlvi) to establish off-shore Campus at any place outside the Country as and when it is considered necessary for advancing the aims and objects of the University; and (xlvii) to do all such other acts and things as may be necessary, incidental or conducive to the attainment of all or any of its objects. (2) In exercising its powers referred to in sub-section (1), it shall be the endeavour of the University to maintain an international character and highest possible standards of teaching and research. 7 ----- **6. Jurisdiction.—The jurisdiction of the University shall extend to the whole of India.** **7. University open to all classes, castes and creed.—The University shall be open to persons of** either sex and of whatever caste, creed, race or class, and it shall not be lawful for the University to adopt or impose on any person any test whatsoever of religious belief or profession in order to entitle him to be appointed as a teacher of the University or to hold any other office therein or be admitted as a student in the University or to graduate thereat or to enjoy or exercise any privilege thereof: Provided that nothing in this section shall be deemed to prevent the University from making special provisions for the employment or promotion of educational interests of women, physically challenged or of persons belonging to the weaker sections of the society and, in particular, of the Scheduled Castes and the Scheduled Tribes: Provided further that no such special provision shall be made on the ground of domicile. **8. Fund of University.—(1) There shall be a University Fund which shall include—** (a) any contribution or grant made by the Central Government or an instrumentality of the Central Government; (b) any contribution or grant made by the State Governments; (c) any contribution from aviation companies and aviation industry both Indian and international; (d) any bequests, donations, endowments or other grants made by any private individual or institution; (e) income received by the University from fees and charges; and (f) amounts received from any other source. (2) The said fund shall be utilised for such purposes of the University and in such manner as may be prescribed by the Statutes and the Ordinances. **9. The Visitor.—(1) The President of India shall be the Visitor of the University:** Provided that the President may, by order, nominate any person to be the Visitor and such person so nominated shall hold office for such term, not exceeding five years as may be specified in the order and the person so nominated shall exercise the powers and discharge duties of the Visitor. (2) The Visitor may, from time to time, appoint one or more persons to review the work and progress of the University, including colleges and institutions managed by it, and to submit a report thereon; and upon receipt of that report, the Visitor may, after obtaining the views of the Executive Council thereon through the Vice-Chancellor, take such action and issue such directions, as he considers necessary, in respect of any of the matters dealt within the report and the University shall be bound to comply with such directions. (3) The Visitor shall have the right to cause an inspection to be made by such person or persons as he may direct, of the University, its buildings, libraries, laboratories and equipment, and of any college, institution or campus maintained by the University and also of the examinations, instruction and other work conducted or done by the University and to cause an inquiry to be made in like manner in respect of any matter connected with the administration or finances of the University, colleges or institutions. (4) The Visitor shall, in every matter referred to in sub-section (3), give notice to the University of his intention to cause an inspection or inquiry to be made— (a) to the University, if such inspection or inquiry is to be made in respect of the University or any college or institution maintained by it, or (b) to the management of the college or institution, if the inspection or inquiry is to be made in respect of the college or institution admitted to the privileges of the University, and the University or 8 ----- the management, as the case may be, shall have the right to make such representations to the Visitor, as it may consider necessary. (5) After considering the representations, if any, made by the University or the management, as the case may be, the Visitor may cause to be made such inspection or inquiry as is referred to in sub-section (3). (6) Where any inspection or inquiry has been caused to be made by the Visitor, the University shall be entitled to appoint a representative, who shall have the right to be present in person and be heard at such inspection or inquiry. (7) The Visitor may, if the inspection or inquiry is made in respect of the University, college or institution maintained by it, address the Vice-Chancellor with reference to the result of such inspection or inquiry together with such views and advice with regard to the action to be taken thereon, as the Visitor may be pleased to offer, and on receipt of address made by the Visitor, the Vice-Chancellor shall communicate forthwith to the Executive Council the results of the inspection or inquiry, and the views of the Visitor and the advice tendered by him upon the action to be taken thereon. (8) The Visitor may, if the inspection or inquiry is made in respect of any college or institution admitted to the privileges of the University, address the management concerned through the Vice-Chancellor with reference to the result of such inspection or inquiry, his views thereon and such advice as he may be pleased to offer upon the action to be taken thereon. (9) The Executive Council or the management, as the case may be, shall communicate, through the Vice-Chancellor to the Visitor such action, if any, as it proposes to take or has been taken upon the result of such inspection or inquiry. (10) Where, the Executive Council or the management does not, within a reasonable time, take action to the satisfaction of the Visitor, the Visitor may, after considering any explanation furnished or representation made by the Executive Council or the management, issue such directions as he may think fit and the Executive Council shall comply with such directions. (11) Without prejudice to the foregoing provisions of this section, the Visitor may, by order in writing, annul any proceeding of the University which is not in conformity with the Act, the Statutes or the Ordinances: Provided that before making any such order, the Visitor shall call upon the Registrar to show cause why such an order should not be made, and, if any cause is shown within a reasonable time, he shall consider the same. (12) Notwithstanding anything contained in the foregoing provisions, the Visitor may give any direction to the University after giving an opportunity to the University as the circumstances warrant. (13) The Visitor shall have such other powers as may be prescribed by the Statutes. **10. Officers of University.—The following shall be the officers of the University:—** (1) the Chancellor; (2) the Vice-Chancellor; (3) the Deans of Schools; (4) the Registrar; (5) the Finance Officer; (6) the Controller of Examinations; and (7) such other officers as may be declared by the Statutes to be officers of the University. 9 ----- **11. The Chancellor.—(1) The Chancellor shall be appointed by the Visitor in such manner as may be** prescribed by the Statutes. (2) The Chancellor shall, by virtue of his office, be the head of the University. (3) The Chancellor shall, if present, preside at the Convocations of the University held for conferring degrees. **12. The Vice-Chancellor.—(1) The Vice-Chancellor shall be appointed by the Visitor in such** manner for such term and on such emoluments and other conditions of service as may be prescribed by the Statutes. (2) The Vice-Chancellor shall be the principal executive and academic officer of the University and shall exercise general supervision and control over the affairs of the University and give effect to the decisions of all the authorities of the University. (3) The Vice-Chancellor may, if he is of opinion that immediate action is necessary on any matter, exercise any power conferred on any authority of the University by or under this Act and shall report to such authority the action taken by him on such matter: Provided that if the authority concerned is of opinion that such action ought not to have been taken, it may refer the matter to the Visitor whose decision thereon shall be final: Provided further that any person in the service of the University who is aggrieved by the action taken by the Vice-Chancellor under this sub-section shall have the right to appeal against such action to the Executive Council within ninety days from the date on which decision on such action is communicated to him and thereupon the Executive Council may confirm, modify or reverse the action taken by the Vice-Chancellor. (4) The Vice-Chancellor, if he is of the opinion that any decision of any authority of the University is beyond the powers of the authority conferred by the provisions of this Act, the Statutes or the Ordinances or that any decision taken is not in the interest of the University, may ask the authority concerned to review its decision within sixty days of such decision and if the authority refuses to review the decision either in whole or in part or no decision is taken by it within the said period of sixty days, the matter shall be referred to the Visitor whose decision thereon shall be final: Provided that the decision of the authority concerned shall remain suspended during the period of such decision by the authority or the Visitor, as the case may be, under this sub-section. (5) The Vice-Chancellor may cause an inspection to be made by such person or persons as he may direct, of a College or an Institution not being maintained by the University, its buildings, libraries, laboratories and equipment, and also examinations, teaching and other work conducted or done by the college or the institution and cause an inquiry, to be made in the like manner, in respect of any matter connected with the quality of education and other academic activities of the colleges or the institutions. (6) The Vice-Chancellor shall exercise such other powers and perform such other duties as may be prescribed by the Statutes or the Ordinances. **13. The Deans of Schools.—Every Dean of the School shall be appointed in such manner and shall** exercise such powers and perform such duties, as may be prescribed by the Statutes. **14. The Registrar.—(1) The Registrar shall be appointed in such manner and on such terms and** conditions of service, as may be prescribed by the Statutes. (2) The Registrar shall have the power to enter into agreements, sign documents and authenticate records on behalf of the University. (3) The Registrar shall exercise such powers and perform such duties, as may be prescribed by the Statutes. 10 ----- **15. The Finance Officer.—The Finance Officer shall be appointed in such manner and on such terms** and conditions of service and shall exercise such powers and perform such duties, as may be prescribed by the Statutes. **16. The Controller of Examinations.—The Controller of Examinations shall be appointed in such** manner and on such terms and conditions of service and shall exercise such powers and perform such duties, as may be prescribed by the Statutes. **17. Other officers.—The manner of appointment, terms and conditions of services and powers and** duties of other officers of the University shall be prescribed by the Statutes. **18. Authorities of University.—The following shall be the authorities of the University, namely:—** (1) the Court; (2) the Executive Council; (3) the Academic Council; (4) the Board of Affiliation and Recognition; (5) the Boards of Schools; (6) the Finance Committee; and (7) such other authorities as may be declared by the Statutes to be the authorities of the University. **19. The Court.—(1) The constitution of the Court and the term of office of its members shall be** prescribed by the Statutes: Provided that such number of members, as may be prescribed by the Statutes, shall be elected from among the teachers, employees and students of the University. (2) Subject to the provisions of this Act, the Court shall have the following powers and functions, namely:— (a) to review, from time to time, the broad policies and programmes of the University and to suggest measures for the improvement and development of the University; (b) to consider and pass resolutions on the annual report and the annual accounts of the University and the audit report on such accounts; (c) to advise the Visitor in respect of any matter which may be referred to it for advice; and (d) to perform such other functions as may be prescribed by the Statutes. **20. The Executive Council.—(1) The Executive Council shall be the principal executive body of the** University: Provided that until the first Executive Council is formed, the Steering Committee of the Ministry of Civil Aviation shall function as an interim Executive Council. (2) The constitution of the Executive Council, the term of office of its members and its powers and functions shall be prescribed by the Statutes: Provided that such number of members as may be prescribed by the Statutes shall be from among the elected members of the Court. **21. The Academic Council.—(1) The Academic Council shall be the principal academic body of the** University and shall, subject to the provisions of this Act, the Statutes and the Ordinances, have the control and supervision over, and be responsible for, the maintenance of standards of instruction, 11 ----- education and examination within the University and shall exercise such other powers and perform such other duties as may be conferred or imposed upon it as may be prescribed by the Statutes. (2) The Academic Council shall have the right to advise the Executive Council on all academic matters. (3) The constitution of the Academic Council and the term of office of its members shall be such as may be prescribed by the Statutes. **22. The Board of Affiliation and Recognition.—(1) The Board of Affiliation and Recognition shall** be responsible for admitting Colleges and Institutions to the privileges of the University. (2) The constitution of the Board of Affiliation and Recognition, the term of office of its members and its powers and duties shall be such as may be prescribed by the Statutes. **23. The Boards of Schools.—(1) There shall be such number of Boards of Schools as the University** may determine from time to time. (2) The constitution, powers and functions of the Boards of Schools shall be such as may be prescribed by the Statutes. **24. The Finance Committee.—The constitution, powers and functions of the Finance Committee** shall be prescribed by the Statutes. **25. Other authorities of University.—The constitution, powers and functions of other authorities, as** may be declared by the Statutes to be the authorities of the University, shall be prescribed by the Statutes. **26. Power to make Statutes.—Subject to the provisions of this Act, the Statutes may provide for all** or any of the following matters, namely:— (a) the constitution, powers and functions of authorities and other bodies of the University, as may be constituted from time to time; (b) the election and continuance in office of the members of the said authorities and bodies, the filling up of vacancies of members, and all other matters relating to those authorities and other bodies for which it may be necessary or desirable to provide; (c) the manner of appointment of the officers of the University, terms and conditions of service, their powers, emoluments and functions that may be exercised and performed by such authority; (d) the manner of appointment of teachers, academic staff and other employees of the University, their emoluments and other conditions of service: Provided that the terms and conditions of teachers, academic staff and other employees shall not be varied to their disadvantage; (e) the manner of appointment of teachers and academic staff working in any other University or organisation for a specific period for undertaking a joint project, their terms and conditions of service and emoluments; (f) the conditions of service of employees including provisions for pension, insurance and provident fund, the manner of termination of service and disciplinary action; (g) the principles governing the seniority of service of the employees of the University; (h) the procedure for arbitration in cases of dispute between employees or students of the University and the University; (i) the procedure for appeal to the Executive Council by any employee or student against the action of any officer or authority of the University; (j) the coordination and determination of standards in the University; 12 ----- (k) the conferment of autonomous status on a College or an Institution or a Department; (l) the establishment and abolition of schools, Departments, centres, Halls, Colleges and Institutions; (m) the conferment of honorary degrees; (n) the withdrawal of degrees, diplomas, certificates and other academic distinctions; _(o) the conditions under which Colleges and Institutions may be admitted to the privileges of the_ University and the withdrawal of such privileges; (p) the Institution of fellowships, scholarships, studentships, assistantships, medals and prizes; (q) the delegation of powers vested in the authorities or officers of the University; (r) the maintenance of discipline among the employees and students; and (s) all other matters which by this Act are to be or may be provided for by the Statutes. **27. Statutes how to be made.—(1) The first Statutes of the University shall be framed by the** Steering Committee of the Ministry of Civil Aviation and the copy of the same shall be laid as soon as may be, after it is made, before each House of Parliament. (2) Without prejudice to the provisions contained in sub-section (1), the Executive Council may, from time to time, make new or additional Statutes or may amend or repeal the Statutes in the manner hereafter in this section provided: Provided that the Executive Council shall not make, amend or repeal any Statutes affecting the status, powers or constitution of any authority of the University until such authority has been given reasonable opportunity of expressing an opinion in writing on the proposed changes, and any opinion so expressed shall be considered by the Executive Council. (3) Every new Statute or addition to the Statutes or any amendment or repeal of a Statute shall require the assent of the Visitor, who may assent thereto or withhold assent or remit to the Executive Council for reconsideration in the light of the observation, if any, made by him. (4) A new Statute or a Statute amending or repealing an existing Statute shall have no validity unless it has been assented to by the Visitor. (5) Notwithstanding anything contained in the foregoing sub-sections, the Visitor may make new or additional Statutes or amend or repeal the Statutes referred to in sub-section (1), during the period of three years immediately after the commencement of this Act: Provided that the Visitor may, on the expiry of the said period of three years, make, within one year from the date of such expiry, such detailed Statutes as he may consider necessary and such detailed Statutes shall be laid before both Houses of Parliament. (6) Notwithstanding anything contained in this section, the Visitor may direct the University to make provisions in the Statutes in respect of any matter specified by him and if the Executive Council is unable to implement such direction within sixty days of its receipt, the Visitor may, after considering the reasons, if any, communicated by the Executive Council for its inability to comply with such direction, make or amend the Statutes suitably. **28. Power to make Ordinances.—(1) Subject to the provisions of this Act and the Statutes, the** Ordinances may provide for all or any of the following matters, namely:— (a) the admission of students to the University and their enrolment as such; (b) the courses of study to be laid down for all degrees, diplomas and certificates of the University; 13 ----- (c) the medium of instruction and examination; (d) the award of degrees, diplomas, certificates and other academic distinctions, the qualifications for the same and the means to be taken relating to the granting and obtaining of the same; (e) the fees to be charged for courses of study in the University and for admission to examinations, degrees and diplomas of the University; (f) the conditions for award of fellowships, scholarships, studentships, assistantships, medals and prizes; (g) the conduct of examinations, including the term of office and manner of appointment and the duties of examining bodies, examiners and moderators; (h) the conditions of residence of the students of the University; (i) the special arrangements, if any, which may be made for the residence, discipline and teaching of women students and the prescribing of special courses of studies for them; (j) the appointment and emoluments of employees other than those for whom provision has been made in the Statutes; (k) the establishment of Centre of Studies, Board of Studies, Special centre, Specialised Laboratories and other Committees; (l) the manner of co-operation and collaboration with other Universities in India or abroad and authorities including learned bodies or associations; (m) the creation, composition and functions of any other body which is considered necessary for improving the academic life of the University; (n) such other terms and conditions of service of teachers and other academic staff as are not prescribed by the Statutes; _(o) the supervision and management of Colleges and Institutions admitted to the privileges of the_ University; (p) the setting up of a machinery for redressal of grievances of employees; and (q) all other matters which by this Act or the Statutes may be provided for by the Ordinances. (2) The first Ordinances shall be made by the Vice-Chancellor with the previous approval of the Central Government and the Ordinances so made may be amended, repealed or added to at any time by the Executive Council in the manner prescribed by the Statutes. **29. Regulations.—The authorities of the University may make Regulations, consistent with this Act,** the Statutes and the Ordinances in the manner prescribed by the Statutes, for the conduct of their own business and that of the Committees, if any, appointed by them and not provided for by this Act, the Statutes or the Ordinances. **30. Annual report.—(1) The annual report of the University shall be prepared under the direction of** the Executive Council, which shall include, among other matters, the steps taken by the University towards the fulfilment of its objects and shall be submitted to the Court on or after such date as may be prescribed by the Statutes and the Court shall consider the report in its annual meeting. (2) The Court shall submit the annual report to the Visitor along with its comments, if any. (3) A copy of the annual report, as prepared under sub-section (1), shall also be submitted to the Central Government, which shall, as soon as may be, cause the same to be laid before both Houses of Parliament. 14 ----- (4) A copy of the annual report shall also be exhibited on the website of the University after having been laid in both Houses of Parliament. **31.Annual accounts.—(1) The annual accounts and balance-sheet of the University shall be prepared** under the directions of the Executive Council and shall, once at least every year and at intervals of not more than fifteen months, be audited by the Comptroller and Auditor-General of India or by such persons as he may authorise in this behalf. (2) A copy of the annual accounts together with the audit report thereon shall be submitted to the Court along with the observations if any, of the Executive Council and the Court will submit the same to the Visitor along with its observation. (3) Any observation made by the Visitor on the annual accounts shall be brought to the notice of the Court and the observations of the Court, if any, shall, after being considered by the Executive Council, be submitted to the Visitor. (4) A copy of the annual accounts together with the audit report, as submitted to the Visitor, shall also be submitted to the Central Government, which shall, as soon as may be, cause the same to be laid before both Houses of Parliament. (5) The audited annual accounts after having been laid before both Houses of Parliament shall be published in the Gazette of India. **32. Returns and information.—The University shall furnish to the Central Government such returns** or other information with respect to its property or activities as the Central Government may, from time to time, require, within such period as may be specified by the Central Government. **33. Conditions of service of employees.—(1) The University shall enter into written contract of** service with every employee of the University appointed on regular basis or otherwise and the terms and conditions of the contract shall not be inconsistent with the provisions of this Act, the Statutes and the Ordinances. (2) A copy of the contract referred to in sub-section (1) shall be kept with the University and a copy thereof shall also be furnished to the employee concerned. **34. Tribunal of Arbitration.—(1) Any dispute arising out of the contract between the University and** any employee shall, at the request of the employee, be referred to a Tribunal of Arbitration consisting of one member appointed by the Executive Council, one member nominated by the employee concerned and an umpire appointed by the Visitor. (2) The decision of the Tribunal of Arbitration shall be final and binding on the parties and no suit shall lie in any civil court in respect of the matters decided by the Tribunal: Provided that nothing in this sub-section shall preclude the employee from availing of the judicial remedies available under articles 32 and 226 of the Constitution. (3) Every request made by the employee under sub-section (1), shall be deemed to be a submission to arbitration upon the terms of this section within the meaning of the Arbitration and Conciliation Act, 1996 (26 of 1996). (4) The procedure for regulating the work of the Tribunal shall be prescribed by the Statutes. **35. Procedure of appeal and arbitration in disciplinary cases against students.—(1) Any student** or candidate for an examination whose name has been removed from the rolls of the University by the orders or resolution of the Vice-Chancellor, Disciplinary Committee or Examination Committee, as the case may be, and who has been debarred from appearing at the examinations of the University for more than one year, may, within ten days of the date of receipt of such orders or copy of such resolution by 15 ----- him, appeal to the Executive Council and the Executive Council may confirm, modify or reverse the decision of the Vice-Chancellor or the Committee, as the case may be. (2) Any dispute arising out of any disciplinary action taken by the University against a student shall, at the request of such student, be referred to a Tribunal of Arbitration and the provisions of section 36 shall, as far as may be, apply to a reference made under this sub-section. **36. Right to appeal.—Every employee or student of the University, notwithstanding anything** contained in this Act, have a right to appeal within such time as may be prescribed by the Statutes, to the Executive Council against the decision of any officer or authority of the University or of the Principal of any College or Institution, as the case may be, and thereupon the Executive Council may confirm, modify or reverse the decision appealed against. **37. Provident and pension fund.—(1) The University shall constitute for the benefit of its** employees such provident or pension fund or provide such insurance schemes as it may deem fit in such manner and subject to such conditions as may be prescribed by the Statutes. (2) Where such provident fund or pension fund has been so constituted, the Central Government may declare that the provision of the Provident Funds Act, 1925 (19 of 1925) shall apply to such fund, as if it were a Government provident fund. **38. Disputes as to constitution of University authorities and bodies.—If any question arises as to** whether any person has been duly elected or appointed as, or is entitled to be, a member of any authority or other body of the University, the matter shall be referred to the Visitor whose decision thereon shall be final. **39. Constitution of Committees.—Where any authority of the University is given power by this Act** or the Statutes to appoint Committees, such Committees shall, save as otherwise provided, consist of the members of the authority concerned and of such other person, if any, as the authority in each case may think fit. **40. Filling of casual vacancies.—All the casual vacancies among the members (other than ex officio** members) of any authority or other body of the University shall be filled, as soon as may be convenient, by the person or body who appointed, elected or co-opted the members whose place has become vacant and the person appointed, elected or co-opted to a casual vacancy shall be a member of such authority or body for the residue of the term for which the person of whose place he fills would have been a member. **41. Proceedings of University authorities or bodies not invalidated by vacancies.—No act or** proceedings of any authority or other body of the University shall be invalid merely by reason of the existence of a vacancy or vacancies among its members. **42. Protection of action taken in good faith.—No suit or other legal proceedings shall lie against** any officer or other employee of the University for anything which is in good faith done or intended to be done in pursuance of any of the provisions of this Act, the Statutes or the Ordinances. **43. Mode of proof of University record.—A copy of any receipt, application, notice, order,** proceedings resolution of any authority or Committee of the University, or other documents in possession of the University, or any entry in any register duly maintained by the University, if certified by the Registrar, shall be received as prima facie evidence of such receipt, application, notice, order, proceeding, resolution or documents or the existence of entry in the register and shall be admitted as evidence of the matters and transactions therein where the original thereof would, if produced, have been admissible in evidence, notwithstanding anything contained in the Indian Evidence Act, 1872 (1 of 1872) or in any other law for the time being in force. **44. Power of remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, 16 ----- not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made under this section after the expiry of three years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **45. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid** **before Parliament.—(1) Every Statute, Ordinance or Regulation made under this Act shall be published** in the Official Gazette and hosted on the website of the University. (2) Every Statute, Ordinance or Regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the Statute, Ordinance or Regulation or both Houses agree that the Statute, Ordinance or Regulation should not be made, the Statute, Ordinance or Regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that Statute, Ordinance or Regulation. (3) The power to make Statutes, Ordinances or Regulations shall include the power to give retrospective effect from a date not earlier than the date of commencement of this Act, to the Statutes, Ordinances or Regulations or any of them but no retrospective effect shall be given to any Statute, Ordinance or Regulation so as to prejudicially affect the interests of any person to whom such Statute, Ordinance or Regulation may be applicable. **46. Transitional provisions.—Notwithstanding anything contained in this Act and the Statutes,—** (a) the first Chancellor and the first Vice-Chancellor shall be appointed by the Visitor in such manner and on such conditions as may be deemed fit and each of the said officers shall hold office for such term, not exceeding five years, as may be specified by the Visitor; (b) the first Registrar and the first Finance Officer shall be appointed by the Visitor on the recommendation of the Vice-Chancellor and each of the said officers shall hold office for a term of three years; (c) the first Court and the first Executive Council shall consist of not more than ten members and ten members, respectively, who shall be nominated by the Visitor and shall hold office for a term of three years; (d) the first Academic Council shall consist of not more members than Executive Council and they shall hold office for a term of three years: Provided that any vacancy occurs in the above offices or authorities, the same shall be filled by appointment or nomination, as the case may be, by the Visitor, and the person so appointed or nominated shall hold office for so long as the officer or member in whose place he is appointed or nominated would have held that office, if such vacancy have not occurred. **47. Completion of courses of studies in Colleges or Institutions affiliated to University.—** Notwithstanding anything contained in this Act, or in the Statutes or the Ordinances, any student of a College or an Institution, who, immediately before the admission of such College or Institution to the privileges of the University, was studying for a degree, diploma or certificate of any University constituted under any Act, shall be permitted by the University, to complete his course for that degree, diploma or certificate, as the case may be, and the University shall provide for the instructions and 17 ----- examination of such student in accordance with the syllabus of studies of such College or Institution or University, as the case may be. **48. Role of Central Government.—(1) The University shall, in discharge of its functions under this** Act, be bound by such directions on questions of policy as the Central Government may give in writing to it from time to time. (2) The decision of the Central Government as to whether a question is one of policy or not shall be final. 18 -----

26-Sep-2013

30

The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013

https://www.indiacode.nic.in/bitstream/123456789/2121/1/A2013-30.pdf

central

## THE RIGHT TO FAIR COMPENSATION AND TRANSPARENCY IN LAND ACQUISITION, REHABILITATION AND RESETTLEMENT ACT, 2013 ––––––––––––––– ARRANGEMENT OF SECTIONS –––––––––––––––– CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Application of Act. 3. Definitions. CHAPTER II DETERMINATION OF SOCIAL IMPACT AND PUBLIC PURPOSE A.—PRELIMINARY INVESTIGATION FOR DETERMINATION OF SOCIAL IMPACT AND PUBLIC _PURPOSE_ 4. Preparation of Social Impact Assessment study. 5. Public hearing for Social Impact Assessment. 6. Publication of Social Impact Assessment study. B.—APPRAISAL OF SOCIAL IMPACT ASSESSMENT REPORT BY AN EXPERT GROUP 7. Appraisal of Social Impact Assessment report by an Expert Group. 8. Examination of proposals for land acquisition and Social Impact Assessment report by appropriate Government. 9. Exemption from Social Impact Assessment. CHAPTER III SPECIAL PROVISION TO SAFEGUARD FOOD SECURITY 10. Special provision to safeguard food security. CHAPTER IV NOTIFICATION AND ACQUISITION 11. Publication of preliminary notification and power of officers thereupon. 12. Preliminary survey of land and power of officers to carry out survey. 13. Payment for damage. 14. Lapse of Social Impact Assessment report. 15. Hearing of objections. ----- SECTIONS 16. Preparation of Rehabilitation and Resettlement Scheme by the Administrator. 17. Review of the Rehabilitation and Resettlement Scheme. 18. Approved Rehabilitation and Resettlement Scheme to be made public. 19. Publication of declaration and summary of Rehabilitation and Resettlement. 20. Land to be marked out, measured and planned including marking of specific areas. 21. Notice to persons interested. 22. Power to require and enforce the making of statements as to names and interests. 23. Enquiry and land acquisition award by Collector. 24. Land acquisition process under Act No. 1 of 1984 shall be deemed to have lapsed in certain cases. 25. Period within which an award shall be made. 26. Determination of market value of land by Collector. 27. Determination of amount of compensation. 28. Parameters to be considered by Collector in determination of award. 29. Determination of value of things attached to land or building. 30. Award of solatium. CHAPTER V REHABILITATION AND RESETTLEMENT AWARD 31. Rehabilitation and Resettlement Award for affected families by Collector. 32. Provision of infrastructural amenities in resettlement area. 33. Corrections to awards by Collector. 34. Adjournment of enquiry. 35. Power to summon and enforce attendance of witnesses and production of documents. 36. Power to call for records, etc. 37. Awards of Collector when to be final. 38. Power to take possession of land to be acquired. 39. Additional compensation in case of multiple displacements. 40. Special powers in case of urgency to acquire land in certain cases. 41. Special provisions for Scheduled Castes and Scheduled Tribes. 42. Reservation and other benefits. CHAPTER VI PROCEDURE AND MANNER OF REHABILITATION AND RESETTLEMENT 43. Appointment of Administrator. 44. Commissioner for rehabilitation and resettlement. 45. Rehabilitation and resettlement committee at project level. ----- SECTIONS 46. Provisions relating to rehabilitation and resettlement to apply in case of certain persons other than specified persons. 47. Quantification and deposit of rehabilitation and resettlement amount. CHAPTER VII NATIONAL MONITORING COMMITTEE FOR REHABILITATION AND RESETTLEMENT 48. Establishment of National Monitoring Committee for rehabilitation and resettlement. 49. Reporting requirements. 50. Establishment of State Monitoring Committee for rehabilitation and resettlement. CHAPTER VIII ESTABLISHMENT OF LAND ACQUISITION, REHABILITATION AND RESETTLEMENT AUTHORITY 51. Establishment of Land Acquisition, Rehabilitation and Resettlement Authority. 52. Composition of Authority. 53. Qualifications for appointment as Presiding Officer. 54. Terms of office of Presiding Officer. 55. Staff of Authority. 56. Salary and allowances and other terms and conditions of service of Presiding Officers. 57. Filling up of vacancies. 58. Resignation and removal. 59. Orders constituting Authority to be final and not to invalidate its proceedings. 60. Powers of Authority and procedure before it. 61. Proceedings before Authority to be judicial proceedings. 62. Members and officers of Authority to be public servants. 63. Jurisdiction of civil courts barred. 64. Reference to Authority. 65. Collector’s statement to Authority. 66. Service of notice by Authority. 67. Restriction on scope of proceedings. 68. Proceedings to be in public. 69. Determination of award by Authority. 70. Form of award. 71. Costs. 72. Collector may be directed to pay interest on excess compensation. 73. Re-determination of amount of compensation on the basis of the award of the Authority. 74. Appeal to High Court. ----- CHAPTER IX APPORTIONMENT OF COMPENSATION SECTIONS 75. Particulars of apportionment to be specified. 76. Dispute as to apportionment. CHAPTER X PAYMENT 77. Payment of compensation or deposit of same in Authority. 78. Investment of money deposited in respect of lands belonging to person incompetent to alienate. 79. Investment of money deposited in other cases. 80. Payment of interest. CHAPTER XI TEMPORARY OCCUPATION OF LAND 81. Temporary occupation of waste or arable land, procedure when difference as to compensation exists. 82. Power to enter and take possession and compensation on restoration. 83. Difference as to condition of land. CHAPTER XII OFFENCES AND PENALTIES 84. Punishment for false information, mala fide action, etc. 85. Penalty for contravention of provisions of Act. 86. Offences by companies. 87. Offences by Government departments. 88. Cognizance of offences by court. 89. Offences to be non-cognizable. 90. Offences to be cognizable only on complaint filed by certain persons. CHAPTER XIII MISCELLANEOUS 91. Magistrate to enforce surrender. 92. Service of notice. 93. Completion of acquisition not compulsory, but compensation to be awarded when not completed. 94. Acquisition of part of house or building. 95. Acquisition of land at cost of a local authority or Requiring Body. 96. Exemption from income-tax, stamp duty and fees. ----- SECTIONS 97. Acceptance of certified copy as evidence. 98. Notice in case of suits for anything done in pursuance of Act. 99. No change of purpose to be allowed. 100. No change of ownership without permission to be allowed. 101. Return of unutilised land. 102. Difference in price of land when transferred for higher consideration to be shared. 103. Provisions to be in addition to existing laws. 104. Option of appropriate Government to lease. 105. Provisions of this Act not to apply in certain cases or to apply with certain modifications. 106. Power to amend Schedule. 107. Power of State Legislatures to enact any law more beneficial to affected families. 108. Option to affected families to avail better compensation and rehabilitation and resettlement. 109. Power of appropriate Government to make rules. 110. Rules made by Central Government to be laid before Parliament. 111. Rules made by State Government to be laid before State Legislature. 112. Previous publication of rules made by Central and State Government. 113. Power to remove difficulties. 114. Repeal and saving. THE FIRST SCHEDULE. THE SECOND SCHEDULE. THE THIRD SCHEDULE. THE FOURTH SCHEDULE. ----- ## THE RIGHT TO FAIR COMPENSATION AND TRANSPARENCY IN LAND ACQUISITION, REHABILITATION AND RESETTLEMENT ACT, 2013 ACT No. 30 OF 2013 [26th September, 2013.] ## An Act to ensure, in consultation with institutions of local self-government and Gram Sabhas established under the Constitution, a humane, participative, informed and transparent process for land acquisition for industrialisation, development of essential infrastructural facilities and urbanisation with the least disturbance to the owners of the land and other affected families and provide just and fair compensation to the affected families whose land has been acquired or proposed to be acquired or are affected by such acquisition and make adequate provisions for such affected persons for their rehabilitation and resettlement and for ensuring that the cumulative outcome of compulsory acquisition should be that affected persons become partners in development leading to an improvement in their post acquisition social and economic status and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Sixty-fourth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1.** **Short title, extent and commencement.–(1) This Act may be called the Right to Fair** Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. (2)It extends to the whole of India [1]***. (3) It shall come into force on such date[2] as the Central Government may, by notification in the Official Gazette, appoint: Provided that the Central Government shall appoint such date within three months from the date on which the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Bill, 2013 receives the assent of the President. **2. Application of Act.–(1) The provisions of this Act relating to land acquisition, compensation,** rehabilitation and resettlement, shall apply, when the appropriate Government acquires land for its own use, hold and control, including for Public Sector Undertakings and for public purpose, and shall include the following purposes, namely:— (a) for strategic purposes relating to naval, military, air force, and armed forces of the Union, including central paramilitary forces or any work vital to national security or defence of India or State police, safety of the people; or (b) for infrastructure projects, which includes the following, namely:— (i) all activities or items listed in the notification of the Government of India in the Department of Economic Affairs (Infrastructure Section) number 13/6/2009-INF, dated the 27th March, 2012, excluding private hospitals, private educational institutions and private hotels; (ii) projects involving agro-processing, supply of inputs to agriculture, warehousing, cold storage facilities, marketing infrastructure for agriculture and allied activities such as dairy, fisheries, and meat processing, set up or owned by the appropriate Government or by a 1. The word “except the State of Jammu and Kashmir omitted by Act 34 of 2019, s. 95, and the Fifth Schedule (w.e.f. 31-10 2019). 2. 1st January 2014, vide notification No. 3729(E), dated 19th December, 2013, see Gazette of India, Extraordinary, Part II, sec. 3(ii). ----- farmers’ cooperative or by an institution set up under a statute; (iii) project for industrial corridors or mining activities, national investment and manufacturing zones, as designated in the National Manufacturing Policy; (iv) project for water harvesting and water conservation structures, sanitation; (v) project for Government administered, Government aided educational and research schemes or institutions; (vi) project for sports, health care, tourism, transportation or space programme; (vii) any infrastructure facility as may be notified in this regard by the Central Government and after tabling of such notification in Parliament; (c) project for project affected families; (d) project for housing for such income groups, as may be specified from time to time by the appropriate Government; (e) project for planned development or the improvement of village sites or any site in the urban areas or provision of land for residential purposes for the weaker sections in rural and urban areas; (f) project for residential purposes to the poor or landless or to persons residing in areas affected by natural calamities, or to persons displaced or affected by reason of the implementation of any scheme undertaken by the Government, any local authority or a corporation owned or controlled by the State. (2) The provisions of this Act relating to land acquisition, consent, compensation, rehabilitation and resettlement, shall also apply, when the appropriate Government acquires land for the following purposes, namely:— (a) for public private partnership projects, where the ownership of the land continues to vest with the Government, for public purpose as defined in sub-section (1); (b) for private companies for public purpose, as defined in sub-section (1): Provided that in the case of acquisition for— (i) private companies, the prior consent of at least eighty per cent, of those affected families, as defined in sub-clauses (i) and (v) of clause (c) of section 3; and (ii) public private partnership projects, the prior consent of at least seventy per cent. of those affected families, as defined in sub-clauses (i) and (v) of clause (c) of section 3, shall be obtained through a process as may be prescribed by the appropriate Government: Provided further that the process of obtaining the consent shall be carried out along with the Social Impact Assessment study referred to in section 4: Provided also that no land shall be transferred by way of acquisition, in the Scheduled Areas in contravention of any law (including any order or judgment of a court which has become final) relating to land transfer, prevailing in such Scheduled Areas. (3) The provisions relating to rehabilitation and resettlement under this Act shall apply in the cases where,— (a) a private company purchases land, equal to or more than such limits in rural areas or urban areas, as may be prescribed by the appropriate Government, through private negotiations with the owner of the land in accordance with the provisions of section 46; (b) a private company requests the appropriate Government for acquisition of a part of an area so prescribed for a public purpose: Provided that where a private company requests the appropriate Government for partial acquisition of land for public purpose, then, the rehabilitation and resettlement entitlements under ----- the Second Schedule shall be applicable for the entire area which includes the land purchased by the private company and acquired by the Government for the project as a whole. **STATE AMENDMENTS** **Andhra Pradesh** In section 2, of sub-section (2), after the second proviso, the following proviso shall be added, namely: “Provided also that the acquisition of land for the projects listed in section 10A and the purposes specified therein shall be exempted from the provisions of the first proviso to this sub-section”. [Vide Andhra Pradesh Act 22 of 2018, sec. 2 (w.e.f. 1-1-2014).] **Maharashtra** In section 2 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (30 of 2013), in its application to the State of Maharashtra (hereinafter referred to as “the principal Act”), in sub-section (2), after the second proviso, the following proviso shall be added, namely: “Provided also that, the acquisition of land for the projects listed in section 10A and the purposes specified therein, shall be exempted from the provisions of the first proviso to this subsection.” [Vide Maharashtra Act 37 of 2018, sec. 2 (w.e.f. 26-4-2018).] **3. Definition.–In this Act, unless the context otherwise requires,—** (a) “Administrator” means an officer appointed for the purpose of rehabilitation and resettlement of affected families under sub-section (1) of section 43; (b) “affected area” means such area as may be notified by the appropriate Government for the purposes of land acquisition; (c) “affected family” includes— (i) a family whose land or other immovable property has been acquired; (ii) a family which does not own any land but a member or members of such family may be agricultural labourers, tenants including any form of tenancy or holding of usufruct right, share-croppers or artisans or who may be working in the affected area for three years prior to the acquisition of the land, whose primary source of livelihood stand affected by the acquisition of land; (iii) the Scheduled Tribes and other traditional forest dwellers who have lost any of their forest rights recognised under the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 (2 of 2007) due to acquisition of land; (iv) family whose primary source of livelihood for three years prior to the acquisition of the land is dependent on forests or water bodies and includes gatherers of forest produce, hunters, fisher folk and boatmen and such livelihood is affected due to acquisition of land; (v) a member of the family who has been assigned land by the State Government or the Central Government under any of its schemes and such land is under acquisition; (vi) a family residing on any land in the urban areas for preceding three years or more prior to the acquisition of the land or whose primary source of livelihood for three years prior to the acquisition of the land is affected by the acquisition of such land; (d) “agricultural land” means land used for the purpose of— (i) agriculture or horticulture; ----- (ii) dairy farming, poultry farming, pisciculture, sericulture, seed farming breeding of livestock or nursery growing medicinal herbs; (iii) raising of crops, trees, grass or garden produce; and (iv) land used for the grazing of cattle; (e) “appropriate Government” means,— (i) in relation to acquisition of land situated within the territory of, a State, the State Government; (ii) in relation to acquisition of land situated within a Union territory (except Puducherry), the Central Government; (iii) in relation to acquisition of land situated within the Union territory of Puducherry, the Government of Union territory of Puducherry; (iv) in relation to acquisition of land for public purpose in more than one State, the Central Government, in consultation with the concerned State Governments or Union territories; and (v) in relation to the acquisition of land for the purpose of the Union as may be specified by notification, the Central Government: Provided that in respect of a public purpose in a District for an area not exceeding such as may be notified by the appropriate Government, the Collector of such District shall be deemed to be the appropriate Government; (f) “Authority” means the Land Acquisition and Rehabilitation and Resettlement Authority established under section 51; (g) “Collector” means the Collector of a revenue district, and includes a Deputy Commissioner and any officer specially designated by the appropriate Government to perform the functions of a Collector under this Act; (h) “Commissioner” means the Commissioner for Rehabilitation and Resettlement appointed under sub-section (1) of section 44; (i) “cost of acquisition” includes— (i) amount of compensation which includes solatium, any enhanced compensation ordered by the Land Acquisition and Rehabilitation and Resettlement Authority or the Court and interest payable thereon and any other amount determined as payable to the affected families by such Authority or Court; (ii) demurrage to be paid for damages caused to the land and standing crops in the process of acquisition; (iii) cost of acquisition of land and building for settlement of displaced or adversely affected families; (iv) cost of development of infrastructure and amenities at the resettlement areas; (v) cost of rehabilitation and resettlement as determined in accordance with the provisions of this Act; (vi) administrative cost,— (A) for acquisition of land, including both in the project site and out of project area lands, not exceeding such percentage of the cost of compensation as may be specified by the appropriate Government; (B) for rehabilitation and resettlement of the owners of the land and other affected families whose land has been acquired or proposed to be acquired or other families affected by such acquisition; (vii) cost of undertaking ‘Social impact Assessment study’; ----- (j) “company” means— (i) a company as defined in section 3 of the Companies Act, 1956 (1 of 1956) other than a Government company; (ii) a society registered under the Societies Registration Act, 1860 (21 of 1860) or under any corresponding law for the time being in force in a State; (k) “displaced family” means any family, who on account of acquisition of land has to be relocated and resettled from the affected area to the resettlement area; (l) “entitled to act”, in relation to a person, shall be deemed to include the following persons, namely:— (i) trustees for other persons beneficially interested with reference to any such case, and that to the same extent as the person beneficially interested could have acted if free from disability; (ii) the guardians of minors and the committees or managers of lunatics to the same extent as the minors, lunatics or other persons of unsound mind themselves, if free from disability, could have acted: Provided that the provisions of Order XXXII of the First Schedule to the Code of Civil Procedure, 1908 (5 of 1908) shall, _mutatis mutandis, apply in the case of persons interested_ appearing before a Collector or Authority by a next friend, or by a guardian for the case, in proceedings under this Act; (m) “family” includes a person, his or her spouse, minor children, minor brothers and minor sisters dependent on him: Provided that widows, divorcees and women deserted by families shall be considered separate families. _Explanation.—An adult of either gender with or without spouse or children or dependents_ shall be considered as a separate family for the purposes of this Act; (n) “holding of land” means the total land held by a person as an owner, occupant or tenant or otherwise; (o) “infrastructure project” shall include any one or more of the items specified in clause (b) of sub-section (1) of section 2; (p) “land” includes benefits to arise out of land, and things attached to the earth or permanently fastened to anything attached to the earth; (q) “landless” means such persons or class of persons who may be,— (i) considered or specified as such under any State law for the time being in force; or (ii) in a case of landless not being specified under sub-clause (i), as may be specified by the appropriate Government; (r) “land owner” includes any person,— (i) whose name is recorded as the owner of the land or building or part thereof, in the records of the authority concerned; or (ii) any person who is granted forest rights under the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 (2 of 2007) or under any other law for the time being in force; or (iii) who is entitled to be granted Patta rights on the land under any law of the State including assigned lands; or (iv) any person who has been declared as such by an order of the court or Authority; ----- (s) “local authority” includes a town planning authority (by whatever name called) set up under any law for the time being in force, a Panchayat as defined in article 243 and a Municipality as defined in article 243P, of the Constitution; (t) “marginal farmer” means a cultivator with an un-irrigated land holding up to one hectare or irrigated land holding up to one-half hectare; (u) “market value” means the value of land determined in accordance with section 26; (v) “notification” means a notification published in the Gazette of India or, as the case may be, the Gazette of a State and the expression “notify” shall be construed accordingly; (w) “patta” shall have the same meaning as assigned to it in the relevant Central or State Acts or rules or regulations made thereunder; (x) “person interested” means— (i) all persons claiming an interest in compensation to be made on account of the acquisition of land under this Act; (ii) the Scheduled Tribes and other traditional forest dwellers, who have lost any forest rights recognised under the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 (2 of 2007); (iii) a person interested in an easement affecting the land; (iv) persons having tenancy rights under the relevant State laws including share-croppers by whatever name they may be called; and (v) any person whose primary source of livelihood is likely to be adversely affected; (y) “prescribed” means prescribed by rules made under this Act; (z) “project” means a project for which land is being acquired, irrespective of the number of persons affected; (za) “public purpose” means the activities specified under sub-section (1) of section 2; (zb) “Requiring Body” means a company, a body corporate, an institution, or any other organisation or person for whom land is to be acquired by the appropriate Government, and includes the appropriate Government, if the acquisition of land is for such Government either for its own use or for subsequent transfer of such land is for public purpose to a company, body corporate, an institution, or any other organisation, as the case may be, under lease, licence or through any other mode of transfer of land; (zc) “Resettlement Area” means an area where the affected families who have been displaced as a result of land acquisition are resettled by the appropriate Government; (zd) “Scheduled Areas” means the Scheduled Areas as defined in section 2 of the Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996 (40 of 1996); (ze) “small farmer” means a cultivator with an un-irrigated land holding up to two hectares or with an irrigated land holding up to one hectare, but more than the holding of a marginal farmer. **STATE AMENDMENT** **Jammu And Kashmir and Ladakh (UTS).—** **Section 3.-** In clause (e):— (i) in sub-clause (ii), after “except Puducherry”, insert “and Jammu and Kashmir”; (ii) in sub-clause (iii), after “Union territory of Puducherry” occurring at both the places, insert “and Union territory of Jammu and Kashmir”. [Vide the Jammu and Kashmir Reorganization (Adaptation of Central Laws) _Order, 2020,_ _vide_ _notification No. S.O. 1123(E), dated (18-3-2020).]_ ----- CHAPTER II DETERMINATION OF SOCIAL IMPACT AND PUBLIC PURPOSE A.—PRELIMINARY INVESTIGATION FOR DETERMINATION OF SOCIAL IMPACT AND _PUBLICPURPOSE_ **4. Preparation of Social Impact Assessment study.–(1) Whenever the appropriate Government** intends to acquire land for a public purpose, it shall consult the concerned Panchayat, Municipality or Municipal Corporation, as the case may be, at village level or ward level, in the affected area and carry out a Social Impact Assessment study in consultation with them, in such manner and from such date as may be specified by such Government by notification. (2) The notification issued by the appropriate Government for commencement of consultation and of the Social Impact Assessment study under sub-section (1) shall be made available in the local language to the Panchayat, Municipality or Municipal Corporation, as the case may be, and in the offices of the District Collector, the Sub-Divisional Magistrate and the Tehsil, and shall be published in the affected areas, in such manner as may be prescribed, and uploaded on the website of the appropriate Government: Provided that the appropriate Government shall ensure that adequate representation has been given to the representatives of Panchayat, Gram Sabha, Municipality or Municipal Corporation, as the case may be, at the stage of carrying out the Social Impact Assessment study: Provided further that the appropriate Government shall ensure the completion of the Social Impact Assessment study within a period of six months from the date of its commencement. (3) The Social Impact Assessment study report referred to in sub-section (1) shall be made available to the public in the manner prescribed under section 6. (4) The Social Impact Assessment study referred to in sub-section (1) shall, amongst other matters, include all the following, namely:— (a) assessment as to whether the proposed acquisition serves public purpose; (b) estimation of affected families and the number of families among them likely to be displaced; (c) extent of lands, public and private, houses, settlements and other common properties likely to be affected by the proposed acquisition; (d) whether the extent of land proposed for acquisition is the absolute bare- minimum extent needed for the project; (e) whether land acquisition at an alternate place has been considered and found not feasible; (f) study of social impacts of the project, and the nature and cost of addressing them and the impact of these costs on the overall costs of the project vis-a-vis the benefits of the project: Provided that Environmental Impact Assessment study, if any, shall be carried out simultaneously and shall not be contingent upon the completion of the Social Impact Assessment study. (5) While undertaking a Social Impact Assessment study under sub-section (1), the appropriate Government shall, amongst other things, take into consideration the impact that the project is likely to have on various components such as livelihood of affected families, public and community properties, assets and infrastructure particularly roads, public transport, drainage, sanitation, sources of drinking water, sources of water for cattle, community ponds, grazing land, plantations, public utilities such as post offices, fair price shops, food storage godowns, electricity supply, health care facilities, schools and educational or training facilities, anganwadis, children parks, places of worship, land for traditional tribal institutions and burial and cremation grounds. (6) The appropriate Government shall require the authority conducting the Social Impact Assessment study to prepare a Social Impact Management Plan, listing the ameliorative measures ----- required to be undertaken for addressing the impact for a specific component referred to in sub-section (5), and such measures shall not be less than what is provided under a scheme or programme, in operation in that area, of the Central Government or, as the case may be, the State Government, in operation in the affected area. **5. Public hearing for Social Impact Assessment.–Whenever a Social Impact Assessment is** required to be prepared under section 4, the appropriate Government shall ensure that a public hearing is held at the affected area, after giving adequate publicity about the date, time and venue for the public hearing, to ascertain the views of the affected families to be recorded and included in the Social Impact Assessment Report. **6. Publication of Social Impact Assessment study.–(1)The appropriate Government shall ensure** that the Social Impact Assessment study report and the Social Impact Management Plan referred to in sub-section (6) of section 4 are prepared and made available in the local language to the Panchayat, Municipality or Municipal Corporation, as the case may be, and the offices of the District Collector, the Sub-Divisional Magistrate and the Tehsil, and shall be published in the affected areas, in such manner as may be prescribed, and uploaded on the website of the appropriate Government. (2) Wherever Environment Impact Assessment is carried out, a copy of the Social Impact Assessment report shall be made available to the Impact Assessment Agency authorised by the Central Government to carry out environmental impact assessment: Provided that, in respect of irrigation projects where the process of Environment Impact Assessment is required under the provisions of any other law for the time being in force, the provisions of this Act relating to Social Impact Assessment shall not apply. B.—APPRAISAL OF SOCIAL IMPACT ASSESSMENT REPORT BY AN EXPERT GROUP **7. Appraisal of Social Impact Assessment report by an Expert Group.–(1) The appropriate** Government shall ensure that the Social Impact Assessment report is evaluated by an independent multi-disciplinary Expert Group, as may be constituted by it. (2) The Expert Group constituted under sub-section (1) shall include the following, namely:— (a) two non-official social scientists; (b) two representatives of Panchayat, Gram Sabha, Municipality or Municipal Corporation, as the case may be; (c) two experts on rehabilitation; and (d) a technical expert in the subject relating to the project. (3) The appropriate Government may nominate a person from amongst the members of the Expert Group as the Chairperson of the Group. (4) If the Expert Group constituted under sub-section (1), is of the opinion that,— (a) the project does not serve any public purpose; or (b) the social costs and adverse social impacts of the project outweigh the potential benefits, it shall make a recommendation within two months from the date of its constitution to the effect that the project shall be abandoned forthwith and no further steps to acquire the land will be initiated in respect of the same: Provided that the grounds for such recommendation shall be recorded in writing by the Expert Group giving the details and reasons for such decision: Provided further that where the appropriate Government, inspite of such recommendations, proceeds with the acquisition, then, it shall ensure that its reasons for doing so are recorded in writing. (5) If the Expert Group constituted under sub-section (1), is of the opinion that,— (a) the project will serve any public purpose; and ----- (b) the potential benefits outweigh the social costs and adverse social impacts, it shall make specific recommendations within two months from the date of its constitution whether the extent of land proposed to be acquired is the absolute bare-minimum extent needed for the project and whether there are no other less displacing options available: Provided that the grounds for such recommendation shall be recorded in writing by the Expert Group giving the details and reasons for such decision. (6) The recommendations of the Expert Group referred to in sub-sections (4) and (5) shall be made available in the local language to the Panchayat, Municipality or Municipal Corporation, as the case may be, and the offices of the District Collector, the Sub-Divisional Magistrate and the Tehsil, and shall be published in the affected areas, in such manner as may be prescribed and uploaded on the website of the appropriate Government. **8. Examination of proposals for land acquisition and Social Impact Assessment report by** **appropriate Government.–(1) The appropriate Government shall ensure that—** (a) there is a legitimate and _bona fide public purpose for the proposed acquisition which_ necessitates the acquisition of the land identified; (b) the potential benefits and the public purpose referred to in clause (a) shall outweigh the social costs and adverse social impact as determined by the Social Impact Assessment that has been carried out; (c) only the minimum area of land required for the project is proposed to be acquired; (d) there is no unutilised land which has been previously acquired in the area; (e) the land, if any, acquired earlier and remained unutilised, is used for such public purpose and make recommendations in respect thereof. (2) The appropriate Government shall examine the report of the Collector, if any, and the report of the Expert Group on the Social Impact Assessment study and after considering all the reports, recommend such area for acquisition which would ensure minimum displacement of people, minimum disturbance to the infrastructure, ecology and minimum adverse impact on the individuals affected. (3) The decision of the appropriate Government shall be made available in the local language to the Panchayat, Municipality or Municipal Corporation, as the case may be, and the offices of the District Collector, the Sub-Divisional Magistrate and the Tehsil, and shall be published in the affected areas, in such manner as may be prescribed, and uploaded on the website of the appropriate Government: Provided that where land is sought to be acquired for the purposes as specified in sub-section (2) of section 2, the appropriate Government shall also ascertain as to whether the prior consent of the affected families as required under the proviso to sub-section (2) of section 2, has been obtained in the manner as may be prescribed. **9. Exemption from Social Impact Assessment.–Where land is proposed to be acquired invoking** the urgency provisions under section 40, the appropriate Government may exempt undertaking of the Social Impact Assessment study. CHAPTER III SPECIAL PROVISION TO SAFEGUARD FOOD SECURITY **10.** **Special provision to safeguard food security.–(1) Save as otherwise provided in sub-section** (2), no irrigated multi-cropped land shall be acquired under this Act. (2) Such land may be acquired subject to the condition that it is being done under exceptional circumstances, as a demonstrable last resort, where the acquisition of the land referred to in subsection (1) shall, in aggregate for all projects in a district or State, in no case exceed such limits as may be notified by the appropriate Government considering the relevant State specific factors and circumstances. (3) Whenever multi-crop irrigated land is acquired under sub-section (2), an equivalent area of ----- culturable wasteland shall be developed for agricultural purposes or an amount equivalent to the value of the land acquired shall be deposited with the appropriate Government for investment in agriculture for enhancing food-security. (4) In a case not falling under sub-section (1), the acquisition of the agricultural land in aggregate for all projects in a district or State, shall in no case exceed such limits of the total net sown area of that district or State, as may be notified by the appropriate Government: Provided that the provisions of this section shall not apply in the case of projects that are linear in nature such as those relating to railways, highways, major district roads, irrigation canals, power lines and the like. **STATE AMENDMENTS** **Andhra Pradesh** After Chapter III, the following Chapter shall be inserted, namely: “CHAPTER III A PROVISIONS OF CHAPTER II AND CHAPTER HI NOT TO APPLY TO CERTAIN PROJECTS 10A. Power of State Government to exempt certain projects:–The State Government may, in the public interest, by notification in the Andhra Pradesh Gazette, exempt any of the following projects from the application of the provisions of Chapter II and Chapter III of this Act, namely: (a) such projects vital to national security or defence of India and every part thereof, including preparation for defence or defence production. (b) rural infrastructure including electrification; (c) affordable housing and housing for the poor people; (d) industrial corridors set up by the State Government and its undertakings (in which case the land shall be acquired up to one kilometer on both sides of designated railway lines or roads for such industrial corridor); and (e) infrastructure projects, including projects under public-private partnership where the ownership of the land continues to vest with the Government: Provided that the State Government shall, before the issue of notification, ensure the extent of land for the proposed acquisition keeping in view the minimum land required for such project.” [Vide Andhra Pradesh Act 22 of 2018, sec. 3 (w.e.f. 1-1-2014).] **Maharashtra** After section 10 of the principal Act, the following section shall be inserted, namely: “10A. Power of State Government to exempt certain projects The State Government may, in the public interest, by notification in the Official Gazette, exempt any of the following projects from the application of the provisions of Chapter II and Chapter III of this Act, namely: (a) such projects vital to national security or defence of India and every part thereof, including preparation for defence or defence production; (b) rural infrastructure including irrigation and electrification; (c) affordable housing and housing for the poor people; (d) industrial area or industrial estate set up by the State Government and its undertaking ; (e) industrial corridor set up by the State Government and its undertaking (in which case the land shall be acquired up to one kilometre on both sides of designated railway line or roads for such industrial corridor); and ----- (f) infrastructure projects including projects under public-private partnership where the ownership of land continues to vest with the Government: Provided that, the State Government shall, before issue of notification, ensure the extent of land for the proposed acquisition keeping in view the bare minimum land required for such project.] [Vide Maharashtra Act 37 of 2018, sec. 3 (w.e.f. 26-4-2018).] CHAPTER IV NOTIFICATION AND ACQUISITION **11.** **Publication of preliminary notification and power of officers.–(1) Whenever, it appears to** the appropriate Government that land in any area is required or likely to be required for any public purpose, a notification (hereinafter referred to as preliminary notification) to that effect along with details of the land to be acquired in rural and urban areas shall be published in the following manner, namely:— (a) in the Official Gazette; (b) in two daily newspapers circulating in the locality of such area of which one shall be in the regional language; (c) in the local language in the Panchayat, Municipality or Municipal Corporation, as the case may be and in the offices of the District Collector, the Sub-divisional Magistrate and the Tehsil; (d) uploaded on the website of the appropriate Government; (e) in the affected areas, in such manner as may be prescribed. (2) Immediately after issuance of the notification under sub-section (1), the concerned Gram Sabha or Sabhas at the village level, municipalities in case of municipal areas and the Autonomous Councils in case of the areas referred to in the Sixth Schedule to the Constitution, shall be informed of the contents of the notification issued under the said sub-section in all cases of land acquisition at a meeting called especially for this purpose. (3) The notification issued under sub-section (1) shall also contain a statement on the nature of the public purpose involved, reasons necessitating the displacement of affected persons, summary of the Social Impact Assessment Report and particulars of the Administrator appointed for the purposes of rehabilitation and resettlement under section 43. (4) No person shall make any transaction or cause any transaction of land specified in the preliminary notification or create any encumbrances on such land from the date of publication of such notification till such time as the proceedings under this Chapter are completed: Provided that the Collector may, on the application made by the owner of the land so notified, exempt in special circumstances to be recorded in writing, such owner from the operation of this subsection: Provided further that any loss or injury suffered by any person due to his wilful violation of this provision shall not be made up by the Collector. (5) After issuance of notice under sub-section (1), the Collector shall, before the issue of a declaration under section 19, undertake and complete the exercise of updating of land records as prescribed within a period of two months. **12. Preliminary survey of land and power of officers to carry out survey.–For the purposes of** enabling the appropriate Government to determine the extent of land to be acquired, it shall be lawful for any officer, either generally or specially authorised by such Government in this behalf, and for his servants and workmen,— (a) to enter upon and survey and take levels of any land in such locality; (b) to dig or bore into the sub-soil; ----- (c) to do all other acts necessary to ascertain whether the land is adapted for such purpose; (d) to set out the boundaries of the land proposed to be taken and the intended line of the work (if any) proposed to be made thereon; and (e) to mark such levels, boundaries and line by placing marks and cutting trenches and where otherwise the survey cannot be completed and the levels taken and the boundaries and line marked, to cut down and clear away any part of any standing crop, fence or jungle: Provided that no act under clauses (a) to (e) in respect of land shall be conducted in the absence of the owner of the land or in the absence of any person authorised in writing by the owner: Provided further that the acts specified under the first proviso may be undertaken in the absence of the owner, if the owner has been afforded a reasonable opportunity to be present during the survey, by giving a notice of at least sixty days prior to such survey: Provided also that no person shall enter into any building or upon any enclosed court or garden attached to a dwelling-house (unless with the consent of the occupier thereof) without previously giving such occupier at least seven days’ notice in writing of his intention to do so. **13. Payment for damage.–The officer so authorised under section 12 shall at the time of entry** under section 12 pay or tender payment for any damage caused, and, in case of dispute as to the sufficiency of the amount so paid or tendered, he shall at once refer the dispute to the decision of the Collector or other chief revenue officer of the district, and such decision shall be final. **14. Lapse of Social Impact Assessment report.–Where a preliminary notification under section** 11 is not issued within twelve months from the date of appraisal of the Social Impact Assessment report submitted by the Expert Group under section 7, then, such report shall be deemed to have lapsed and a fresh Social Impact Assessment shall be required to be undertaken prior to acquisition proceedings under section 11: Provided that the appropriate Government, shall have the power to extend the period of twelve months, if in its opinion circumstances exist justifying the same: Provided further that any such decision to extend the period shall be recorded in writing and the same shall be notified and be uploaded on the website of the authority concerned. **15. Hearing of objections.–(1) Any person interested in any land which has been notified under** sub-section (1) of section 11, as being required or likely to be required for a public purpose, may within sixty days from the date of the publication of the preliminary notification, object to— (a) the area and suitability of land proposed to be acquired; (b) justification offered for public purpose; (c) the findings of the Social Impact Assessment report. (2) Every objection under sub-section (1) shall be made to the Collector in writing, and the Collector shall give the objector an opportunity of being heard in person or by any person authorised by him in this behalf or by an Advocate and shall, after hearing all such objections and after making such further inquiry, if any, as he thinks necessary, either make a report in respect of the land which has been notified under sub-section (1) of section 11, or make different reports in respect of different parcels of such land, to the appropriate Government, containing his recommendations on the objections, together with the record of the proceedings held by him along with a separate report giving therein the approximate cost of land acquisition, particulars as to the number of affected families likely to be resettled, for the decision of that Government. (3) The decision of the appropriate Government on the objections made under sub-section (2) shall be final. **16. Preparation of Rehabilitation and Resettlement Scheme by the Administrator.–(1) Upon** the publication of the preliminary notification under sub-section (1) of section 11 by the Collector, the Administrator for Rehabilitation and Resettlement shall conduct a survey and undertake a census of the affected families, in such manner and within such time as may be prescribed, which shall include— ----- (a) particulars of lands and immovable properties being acquired of each affected family; (b) livelihoods lost in respect of land losers and landless whose livelihoods are primarily dependent on the lands being acquired; (c) a list of public utilities and Government buildings which are affected or likely to be affected, where resettlement of affected families is involved; (d) details of the amenities and infrastructural facilities which are affected or likely to be affected, where resettlement of affected families is involved; and (e) details of any common property resources being acquired. (2) The Administrator shall, based on the survey and census under sub-section (1), prepare a draft Rehabilitation and Resettlement Scheme, as prescribed which shall include particulars of the rehabilitation and resettlement entitlements of each land owner and landless whose livelihoods are primarily dependent on the lands being acquired and where resettlement of affected families is involved— (i) a list of Government buildings to be provided in the Resettlement Area; (ii) details of the public amenities and infrastructural facilities which are to be provided in the Resettlement Area. (3) The draft Rehabilitation and Resettlement scheme referred to in sub-section (2) shall include time limit for implementing Rehabilitation and Resettlement Scheme. (4) The draft Rehabilitation and Resettlement scheme referred to in sub-section (2) shall be made known locally by wide publicity in the affected area and discussed in the concerned Gram Sabhas or Municipalities. (5) A public hearing shall be conducted in such manner as may be prescribed, after giving adequate publicity about the date, time and venue for the public hearing at the affected area: Provided that in case where an affected area involves more than one Gram Panchayat or Municipality, public hearings shall be conducted in every Gram Sabha and Municipality where more than twenty-five per cent. of land belonging to that Gram Sabha or Municipality is being acquired: Provided further that the consultation with the Gram Sabha in Scheduled Areas shall be in accordance with the provisions of the Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996 (40 of 1996). (6) The Administrator shall, on completion of public hearing submit the draft Scheme for Rehabilitation and Resettlement along with a specific report on the claims and objections raised in the public hearing to the Collector. **17. Review of the Rehabilitation and Resettlement Scheme.–(1) The Collector shall review the** draft Scheme submitted under sub-section (6) of section 16 by the Administrator with the Rehabilitation and Resettlement Committee at the project level constituted under section 45. (2) The Collector shall submit the draft Rehabilitation and Resettlement Scheme with his suggestions to the Commissioner Rehabilitation and Resettlement for approval of the Scheme. **18. Approved Rehabilitation and Resettlement Scheme to be made public.–The Commissioner** shall cause the approved Rehabilitation and Resettlement Scheme to be made available in the local language to the Panchayat, Municipality or Municipal Corporation, as the case may be, and the offices of the District Collector, the Sub-Divisional Magistrate and the Tehsil, and shall be published in the affected areas, in such manner as may be prescribed, and uploaded on the website of the appropriate Government. **19. Publication of declaration and summary of Rehabilitation and Resettlement.–(1) When** the appropriate Government is satisfied, after considering the report, if any, made under sub-section (2) of section 15, that any particular land is needed for a public purpose, a declaration shall be made to that effect, along with a declaration of an area identified as the “resettlement area” for the purposes of rehabilitation and resettlement of the affected families, under the hand and seal of a Secretary to such ----- Government or of any other officer duly authorised to certify its orders and different declarations may be made from time to time in respect of different parcels of any land covered by the same preliminary notification irrespective of whether one report or different reports has or have been made (wherever required). (2) The Collector shall publish a summary of the Rehabilitation and Resettlement Scheme along with declaration referred to in sub-section (1): Provided that no declaration under this sub-section shall be made unless the summary of the Rehabilitation and Resettlement Scheme is published along with such declaration: Provided further that no declaration under this sub-section shall be made unless the Requiring Body deposits an amount, in full or part, as may be prescribed by the appropriate Government toward the cost of acquisition of the land: Provided also that the Requiring Body shall deposit the amount promptly so as to enable the appropriate Government to publish the declaration within a period of twelve months from the date of the publication of preliminary notification under section 11. (3) In projects where land is acquired in stages, the application for acquisition itself can specify different stages for the rehabilitation and resettlement, and all declarations shall be made according to the stages so specified. (4) Every declaration referred to in sub-section (1) shall be published in the following manner, namely:— (a) in the Official Gazette; (b) in two daily newspapers being circulated in the locality, of such area of which one shall be in the regional language; (c) in the local language in the Panchayat, Municipality or Municipal Corporation, as the case may be, and in the offices of the District Collector, the Sub-Divisional Magistrate and the Tehsil; _(d) uploaded on the website of the appropriate Government;_ _(e) in the affected areas, in such manner as may be prescribed._ (5) Every declaration referred to in sub-section (1) shall indicate,— (a) the district or other territorial division in which the land is situated; (b) the purpose for which it is needed, its approximate area; and (c) where a plan shall have been made for the land, the place at which such plan may be inspected without any cost. (6) The declaration referred to in sub-section (1) shall be conclusive evidence that the land is required for a public purpose and, after making such declaration, the appropriate Government may acquire the land in such manner as specified under this Act. (7) Where no declaration is made under sub-section (1) within twelve months from the date of preliminary notification, then such notification shall be deemed to have been rescinded: Provided that in computing the period referred to in this sub-section, any period or periods during which the proceedings for the acquisition of the land were held up on account of any stay or injunction by the order of any Court shall be excluded: Provided further that the appropriate Government shall have the power to extend the period of twelve months, if in its opinion circumstances exist justifying the same: Provided also that any such decision to extend the period shall be recorded in writing and the same shall be notified and be uploaded on the website of the authority concerned. ----- **20. Land to be marked out, measured and planned including marking of specific areas.–The** Collector shall thereupon cause the land, unless it has been already marked out under section 12, to be marked out and measured, and if no plan has been made thereof, a plan to be made of the same. **21. Notice to persons interested.–(1) The Collector shall publish the public notice on his website** and cause public notice to be given at convenient places on or near the land to be taken, stating that the Government intends to take possession of the land, and that claims to compensations and rehabilitation and resettlement for all interests in such land may be made to him. (2) The public notice referred to in sub-section (1) shall state the particulars of the land so needed, and require all persons interested in the land to appear personally or by agent or advocate before the Collector at a time and place mentioned in the public notice not being less than thirty days and not more than six months after the date of publication of the notice, and to state the nature of their respective interests in the land and the amount and particulars of their claims to compensation for such interests, their claims to rehabilitation and resettlement along with their objections, if any, to the measurements made under section 20. (3) The Collector may in any case require such statement referred to in sub-section (2) to be made in writing and signed by the party or his agent. (4) The Collector shall also serve notice to the same effect on the occupier, if any, of such land and on all such persons known or believed to be interested therein, be entitled to act for persons so interested, as reside or have agents authorised to receive service on their behalf, within the revenue district in which the land is situated. (5) In case any person so interested resides elsewhere, and has no such agent, the Collector shall ensure that the notice shall be sent to him by post in letter addressed to him at his last known residence, address of place or business and also publish the same in at least two national daily newspapers and also on his website. **22. Power to require and enforce the making of statements as to names and interests.–(1) The** Collector may also require any such person to make or deliver to him, at a time and place mentioned (such time not being less than thirty days after the date of the requisition), a statement containing, so far as may be practicable, the name of every other person possessing any interest in the land or any part thereof as co-proprietor, sub-proprietor, mortgagee, tenant or otherwise, and of the nature of such interest, and of the rents and profits, if any, received or receivable on account thereof for three years next preceding the date of the statement. (2) Every person required to make or deliver a statement under this section shall be deemed to be legally bound to do so within the meaning of sections 175 and 176 of the Indian Penal Code (45 of 1860). **23. Enquiry and land acquisition award by Collector.–On the day so fixed, or on any other day** to which the enquiry has been adjourned, the Collector shall proceed to enquire into the objections (if any) which any person interested has stated pursuant to a notice given under section 21, to the measurements made under section 20, and into the value of the land at the date of the publication of the notification, and into the respective interests of the persons claiming the compensation and rehabilitation and resettlement, shall make an award under his hand of— (a) the true area of the land; (b) the compensation as determined under section 27 along with Rehabilitation and Resettlement Award as determined under section 31 and which in his opinion should be allowed for the land; and (c) the apportionment of the said compensation among all the persons known or believed to be interested in the land, or whom, or of whose claims, he has information, whether or not they have respectively appeared before him. ----- **STATE AMENDMENTS** **Andhra Pradesh** In the Principal Act, after section 23, the following section shall be inserted, namely: **“23A. Award of Col lector without enquiry in case of agreement of interested persons.—(1)** Notwithstanding anything contained in section 23, if at any stage of the proceedings, the Collector is satisfied that all the persons interested in the land who appeared before him have agreed in writing on the matters to be included in the award of the Collector in the form prescribed, he may, without making further enquiry, make an award according to the terms of such agreement. (2) The determination of compensation for any land under sub-section (1) shall not in any way affect the determination of compensation in respect of other lands in the same locality or elsewhere in accordance with the other provisions of this Act. (3) Notwithstanding anything contained in the Registration Act, 1908 (Act 16 of 1908), no agreement made under sub-section (1) shall be liable to registration under that Act.” [Vide Andhra Pradesh Act 22 of 2018, sec. 4 (w.e.f. 1-1-2014).] **Maharashtra** After section 23 of the principal Act, the following section shall be inserted, namely: **“23A. Award of Collector without enquiry in case of agreement of interested persons.–(1)** Notwithstanding anything contained in section 23, if at any stage of the proceedings, the Collector is satisfied that all the persons interested in the land who appeared before him have agreed in writing on the matters to be included in the award of the Collector in the form prescribed by rules made by the State Government, he may, without making further enquiry, make an award according to the terms of such agreement. (2) The determination of compensation for any land under sub-section (1) shall not in any way affect the determination of compensation in respect of other lands in the same locality or elsewhere in accordance with the other provisions of this Act. (3) Notwithstanding anything contained in the Registration Act, 1908 (16 of 1908), no agreement made under sub-section (1) shall be liable to registration under that Act.” [Vide Maharashtra Act 37 of 2018, sec. 4 (w.e.f. 26-4-2014).] **24. Land acquisition process under Act No. 1 of 1894 shall be deemed to have lapsed in** **certain cases.–(1) Notwithstanding anything contained in this Act, in any case of land acquisition** proceedings initiated under the Land Acquisition Act, 1894,— (a) where no award under section 11 of the said Land Acquisition Act has been made, then, all provisions of this Act relating to the determination of compensation shall apply; or (b) where an award under said section 11 has been made, then such proceedings shall continue under the provisions of the said Land Acquisition Act, as if the said Act has not been repealed. (2) Notwithstanding anything contained in sub-section (1), in case of land acquisition proceedings initiated under the Land Acquisition Act, 1894 (1 of 1894),where an award under the said section 11 has been made five years or more prior to the commencement of this Act but the physical possession of the land has not been taken or the compensation has not been paid the said proceedings shall be deemed to have lapsed and the appropriate Government, if it so chooses, shall initiate the proceedings of such land acquisition afresh in accordance with the provisions of this Act: ----- Provided that where an award has been made and compensation in respect of a majority of land holdings has not been deposited in the account of the beneficiaries, then, all beneficiaries specified in the notification for acquisition under section 4 of the said Land Acquisition Act, shall be entitled to compensation in accordance with the provisions of this Act. **STATE AMENDMENTS** **Andhra Pradesh** In the Principal Act, in section 24, in sub-section (2), – “(1) in the existing proviso, for the expression “where an award has been made” the expression “where the said award has been made 5 years or more prior to the commencement of this Act” shall be substituted; (2) after the existing proviso, the following proviso shall be added, namely: Provided further that in computing the period referred to in this sub-section, any period or periods during which the proceedings for acquisition of the land were held up on account of any order, stay, suspension or injunction issued by any Court or the period specified in the award of a Tribunal for taking possession or such period where possession has been taken but the compensation is lying deposited in a Court or in any designated account maintained for this purpose, shall be excluded.” [Vide Andhra Pradesh Act 22 of 2018, sec. 5 (w.e.f. 1-1-2014).] **Maharashtra** In section 24 of the principal Act, in sub-section (2), after the proviso, the following proviso shall be added, namely: “Provided further that, in computing the period referred to in this sub-section, any period or periods during which the proceedings for acquisition of the land were held up on account of any stay or injunction issued by any court or the period specified in the award of a Tribunal for taking possession or such period where possession has been taken but the compensation is lying deposited in a court or in any designated account maintained for this purpose on account of refusal or not coming forward for receiving compensation despite receipt of such notice under sub-section (2) of section 12 of the Land Acquisition Act, 1894 (I of 1894), shall be excluded. Also if the said land is mutated within three years after passing the award in the name of acquiring body, it shall be deemed that the possession of the land has been taken.” [Vide Maharashtra Act 37 of 2018, sec. 5 (26-4-2018).] **Haryana** In section 24 of the principal Act, (i) after sub-section (1), the following Explanation shall be inserted, namely: **Explanation.-For the purpose of this sub-section, a land acquisition proceeding shall be** deemed to have been initiated under the Land Acquisition Act, 1894 (Central Act 1 of 1894) where notification under section 4 of the said Act has been published in any form under sub-section (1) of the said section. (ii) in sub-section (2), (a) the word “physical” shall be omitted; ----- (b) for the word “or” occurring after the words “possession of the land has not been taken”, the word “and” shall be substituted; (c) in the proviso, for the sign “.”existing at the end, the sign “:” shall be substituted; and (d) after the existing proviso, the following proviso shall be added at the end, namely: Provided further that in computing the period referred to in this sub-section, any period during which the proceedings for acquisition of the land were held up on account of any stay or injunction issued by order of any court, shall be excluded: Provided further that the entry in rapat roznamcha regarding taking or handing over possession recorded by the Land Acquisition Officer or Revenue Official shall be treated as possession taken for all intents and purposes. [Vide Haryana Act 21 of 2018, sec. 2 (9-5-2018).] **25. Period within which an award shall be made.–The Collector shall make an award within a** period of twelve months from the date of publication of the declaration under section 19 and if no award is made within that period, the entire proceedings for the acquisition of the land shall lapse: Provided that the appropriate Government shall have the power to extend the period of twelve months if in its opinion, circumstances exist justifying the same: Provided further that any such decision to extend the period shall be recorded in writing and the same shall be notified and be uploaded on the website of the authority concerned. **26. Determination of market value of land by Collector.–(1) The Collector shall adopt the** following criteria in assessing and determining the market value of the land, namely:— (a) the market value, if any, specified in the Indian Stamp Act, 1899 (2 of 1899) for the registration of sale deeds or agreements to sell, as the case may be, in the area, where the land is situated; or (b) the average sale price for similar type of land situated in the nearest village or nearest vicinity area; or (c) consented amount of compensation as agreed upon under sub-section (2) of section 2 in case of acquisition of lands for private companies or for public private partnership projects, whichever is higher: Provided that the date for determination of market value shall be the date on which the notification has been issued under section 11. _Explanation 1.—The average sale price referred to in clause (b) shall be determined taking into_ account the sale deeds or the agreements to sell registered for similar type of area in the near village or near vicinity area during immediately preceding three years of the year in which such acquisition of land is proposed to be made. _Explanation 2.—For determining the average sale price referred to in Explanation 1, one-half of_ the total number of sale deeds or the agreements to sell in which the highest sale price has been mentioned shall be taken into account. _Explanation_ 3.—While determining the market value under this section and the average sale price referred to in Explanation 1 or Explanation 2, any price paid as compensation for land acquired under the provisions of this Act on an earlier occasion in the district shall not be taken into consideration. ----- _Explanation 4.—While determining the market value under this section and the average sale_ price referred to in _Explanation 1 or_ _Explanation 2, any price paid, which in the opinion of the_ Collector is not indicative of actual prevailing market value may be discounted for the purposes of calculating market value. (2) The market value calculated as per sub-section (1) shall be multiplied by a factor to be specified in the First Schedule. (3) Where the market value under sub-section (1) or sub-section (2) cannot be determined for the reason that— (a) the land is situated in such area where the transactions in land are restricted by or under any other law for the time being in force in that area; or (b) the registered sale deeds or agreements to sell as mentioned in clause _(a) of_ sub-section (1) for similar land are not available for the immediately preceding three years; or (c) the market value has not been specified under the Indian Stamp Act, 1899 (2 of 1899) by the appropriate authority, the State Government concerned shall specify the floor price or minimum price per unit area of the said land based on the price calculated in the manner specified in sub-section (1) in respect of similar types of land situated in the immediate adjoining areas: Provided that in a case where the Requiring Body offers its shares to the owners of the lands (whose lands have been acquired) as a part compensation, for acquisition of land, such shares in no case shall exceed twenty-five per cent, of the value so calculated under sub-section (1) or sub-section (2) or sub-section (3) as the case may be: Provided further that the Requiring Body shall in no case compel any owner of the land (whose land has been acquired) to take its shares, the value of which is deductible in the value of the land calculated under sub-section (1): Provided also that the Collector shall, before initiation of any land acquisition proceedings in any area, take all necessary steps to revise and update the market value of the land on the basis of the prevalent market rate in that area: Provided also that the appropriate Government shall ensure that the market value determined for acquisition of any land or property of an educational institution established and administered by a religious or linguistic minority shall be such as would not restrict or abrogate the right to establish and administer educational institutions of their choice. **27. Determination of amount of compensation.–The Collector having determined the market** value of the land to be acquired shall calculate the total amount of compensation to be paid to the land owner (whose land has been acquired) by including all assets attached to the land. **28. Parameters to be considered by Collector in determination of award.–In determining the** amount of compensation to be awarded for land acquired under this Act, the Collector shall take into consideration— _firstly, the market value as determined under section 26 and the award amount in accordance_ with the First and Second Schedules; ----- _secondly, the damage sustained by the person interested, by reason of the taking of any_ standing crops and trees which may be on the land at the time of the Collector's taking possession thereof; _thirdly, the damage (if any) sustained by the person interested, at the time of the Collector's_ taking possession of the land, by reason of severing such land from his other land; _fourthly, the damage (if any) sustained by the person interested, at the time of the Collector's_ taking possession of the land, by reason of the acquisition injuriously affecting his other property, movable or immovable, in any other manner, or his earnings; _fifthly, in consequence of the acquisition of the land by the Collector, the person interested is_ compelled to change his residence or place of business, the reasonable expenses (if any) incidental to such change; _sixthly, the damage (if any)_ _bona fide resulting from diminution of the profits of the land_ between the time of the publication of the declaration under section 19 and the time of the Collector's taking possession of the land; and _seventhly, any other ground which may be in the interest of equity, justice and beneficial to the_ affected families. **29.** **Determination of value of things attached to land or building.–(1) The Collector in** determining the market value of the building and other immovable property or assets attached to the land or building which are to be acquired, use the services of a competent engineer or any other specialist in the relevant field, as may be considered necessary by him. (2) The Collector for the purpose of determining the value of trees and plants attached to the land acquired, use the services of experienced persons in the field of agriculture, forestry, horticulture, sericulture, or any other field, as may be considered necessary by him. (3) The Collector for the purpose of assessing the value of the standing crops damaged during the process of land acquisition, may use the services of experienced persons in the field of agriculture as may be considered necessary by him. **30. Award of solatium.–(1) The Collector having determined the total compensation to be paid,** shall, to arrive at the final award, impose a “Solatium” amount equivalent to one hundred per cent. of the compensation amount. _Explanation.—For the removal of doubts it is hereby declared that solatium amount shall be in_ addition to the compensation payable to any person whose land has been acquired. (2) The Collector shall issue individual awards detailing the particulars of compensation payable and the details of payment of the compensation as specified in the First Schedule. (3) In addition to the market value of the land provided under section 26, the Collector shall, in every case, award an amount calculated at the rate of twelve per cent. per annum on such market value for the period commencing on and from the date of the publication of the notification of the Social Impact Assessment study under sub-section (2)of section 4, in respect of such land, till the date of the award of the Collector or the date of taking possession of the land, whichever is earlier. **STATE AMENDMENTS** **Andhra Pradesh** In the Principal Act, after Chapter-IV, the following new Chapter IV A shall be inserted, namely: ----- CHAPTER IV A Voluntary acquisition of land **30A. Acquisition of land by the State Government by entering into agreement.:--(1)** Notwithstanding anything contained in the Principal Act, or any other law, whenever it appears to the State Government that the land is needed in any area for any public purpose, the State Government or its Authorized Officer will enter into an agreement with the willing land owner to sell the land in favour of the State for the matters specified therein in a prescribed form. (2) The State Government or its Authorized Officer shall pass an order in terms of agreement under sub-section (1) for acquisition, and the substance of the order shall be notified in the Gazette. On such publication of notification, the title, ownership and all interests of the land owner who enters into agreements, shall vest with the State, free from all encumbrances. (3) Notwithstanding anything contained in the Registration Act, 1908 (Act l6 of 1908), no agreement entered under sub-section (1) shall be liable to registration under that Act. (4) If any family, other than the family of the land owner who entered into an agreement, is affected by the acquisition of land under this section, the State Government shall pay a lumpsum amount towards rehabilitation and resettlement, if any, as prescribed in the rules framed hereunder: Provided that no agreement or the lumpsum amount towards rehabilitation and resettlement as may be prescribed, shall be abnormally at variance to the disadvantage of the land owners.] [Vide Andhra Pradesh Act 22 of 2018, sec. 6 (w.e.f. 1-1-2014).] CHAPTER V REHABILITATION AND RESETTLEMENT AWARD **31.** **Rehabilitation and Resettlement** **Award for affected families by** **Collector.–(1) The** Collector shall pass Rehabilitation and Resettlement Awards for each affected family in terms of the entitlements provided in the Second Schedule. (2) The Rehabilitation and Resettlement Award shall include all of the following, namely:— (a) rehabilitation and resettlement amount payable to the family; (b) bank account number of the person to which the rehabilitation and resettlement award amount is to be transferred; (c) particulars of house site and house to be allotted, in case of displaced families; _(d) particulars of land allotted to the displaced families;_ (e) particulars of one time subsistence allowance and transportation allowance in case of displaced families; (f) particulars of payment for cattle shed and petty shops; (g) particulars of one-time amount to artisans and small traders; (h)d etails of mandatory employment to be provided to the members of the affected families; (i) particulars of any fishing rights that may be involved; (j) particulars of annuity and other entitlements to be provided; (k) particulars of special provisions for the Scheduled Castes and the Scheduled Tribes to be provided: ----- Provided that in case any of the matters specified under clauses (a) to (k) are not applicable to any affected family the same shall be indicated as “not applicable”: Provided further that the appropriate Government may, by notification increase the rate of rehabilitation and resettlement amount payable to the affected families, taking into account the rise in the price index. **STATE AMENDMENTS** **Andhra Pradesh** In the Principal Act, after section 31, the following section shall be inserted, namely: **“31A. Payment of Lump sum amount by State Government:–Notwithstanding anything** contained in this Act, whenever the land is to be acquired for any projects as notified in section 10A, it shall be competent for the state Government to pay such lumpsum about as may be prescribed in the rules in lieu of Rehabilitation.” Provided that the payment of such lumpsum amount in lieu of Rehabilitation and Resettlement as may be prescribed, shall not be abnormally at variance to the disadvantage of the affected families.” [Vide Andhra Pradesh Act 22 of 2018, sec. 7 (w.e.f. 1-1-2014).] **Maharashtra** After section 31 of the principal Act, the following section shall be inserted, namely: **“31A. Payment of lump sum amount by State Government for its linear nature projects.–** Notwithstanding anything contained in this Act, it shall be competent for the State Government to pay, whenever the land is to be acquired for its own use amounting to less than one hundred acres or whenever the land is to be acquired in case of projects which are linear in nature as referred to the proviso to sub-section (4) of section 10, as Rehabilitation and Resettlement cost, such lump sum amount equal to fifty per cent. of the amount of compensation as determined under section 27 to the affected families.” [Vide Maharashtra Act 37 of 2018, sec. 6 (26-4-2018).] **32. Provision of infrastructural amenities in resettlement area.–In every resettlement area as** defined under this Act, the Collector shall ensure the provision of all infrastructural facilities and basic minimum amenities specified in the Third Schedule. **33. Corrections to awards by Collector.–(1) The Collector may at any time, but not later than six** months from the date of award or where he has been required under the provisions of this Act to make a reference to the Authority under section 64, before the making of such reference, by order, correct any clerical or arithmetical mistakes in either of the awards or errors arising therein either on his own motion or on the application of any person interested or local authority: Provided that no correction which is likely to affect prejudicially any person shall be made unless such person has been given a reasonable opportunity of making representation in the matter. (2) The Collector shall give immediate notice of any correction made in the award so corrected to all the persons interested. (3) Where any excess amount is proved to have been paid to any person as a result of the correction made under sub-section (1), the excess amount so paid shall be liable to be refunded and in the case of any default or refusal to pay, the same may be recovered, as prescribed by the appropriate Government. **STATE AMENDMENTS** **Andhra Pradesh** In the principal Act, after section 33, the following new section 33 A shall be inserted, namely: ----- **“33A. Recovery of the amount wrongfully paid.–Notwithstanding anything contained in any** other law, the authority in a reference under section 64 or the High Court in appeal under section 74, or any other authority in any legal proceedings find that the money has been wrongfully paid to any person under this Act, the State Government or its authorized person or Collector shall recover the same as arrears of land revenue.” [Vide Andhra Pradesh Act 22 of 2018, sec. 8 (w.e.f. 1-1-2014).] **34. Adjournment of enquiry.–The Collector may, for any cause he thinks fit, from time to time** adjourn the enquiry to a day to be fixed by him. **35. Power to summon and enforce attendance of witnesses and production of documents.–For** the purpose of enquiries under this Act, the Collector shall have powers to summon and enforce the attendance of witnesses, including the parties interested of any of them, and to compel the production of documents by the same means, and (so far as may be) in the same manner as is provided in the case of a Civil Court under the Code of Civil Procedure, 1908 (5 of 1908). **36. Power to call for records, etc.–The appropriate Government may at any time before the** award is made by the Collector under section 30 call for any record of any proceedings (whether by way of inquiry or otherwise) for the purpose of satisfying itself as to the legality or propriety of any findings or order passed or as to the regularity of such proceedings and may pass such order or issue such direction in relation thereto as it may think fit: Provided that the appropriate Government shall not pass or issue any order or direction prejudicial to any person without affording such person a reasonable opportunity of being heard. **37. Awards of Collector when to be final.–(1) The Awards shall be filed in the Collector’s office** and shall, except as hereinafter provided, be final and conclusive evidence, as between the Collector and the persons interested, whether they have respectively appeared before the Collector or not, of the true area and market value of the land and the assets attached thereto, solatium so determined and the apportionment of the compensation among the persons interested. (2) The Collector shall give immediate notice of his awards to such of the persons interested who are not present personally or through their representatives when the awards are made. (3) The Collector shall keep open to the public and display a summary of the entire proceedings undertaken in a case of acquisition of land including the amount of compensation awarded to each individual along with details of the land finally acquired under this Act on the website created for this purpose. **38. Power to take possession of land to be acquired.–(1) The Collector shall take possession of** land after ensuring that full payment of compensation as well as rehabilitation and resettlement entitlements are paid or tendered to the entitled persons within a period of three months for the compensation and a period of six months for the monetary part of rehabilitation and resettlement entitlements listed in the Second Schedule commencing from the date of the award made under section 30: Provided that the components of the Rehabilitation and Resettlement Package in the Second and Third Schedules that relate to infrastructural entitlements shall be provided within a period of eighteen months from the date of the award: Provided further that in case of acquisition of land for irrigation or hydel project, being a public purpose, the rehabilitation and resettlement shall be completed six months prior to submergence of the lands acquired. (2) The Collector shall be responsible for ensuring that the rehabilitation and resettlement process is completed in all its aspects before displacing the affected families. **39. Additional compensation in case of multiple displacements.–The Collector shall, as far as** possible, not displace any family which has already been displaced by the appropriate Government for the purpose of acquisition under the provisions of this Act, and if so displaced, shall pay an additional ----- compensation equivalent to that of the compensation determined under this Act for the second or successive displacements. **40. Special powers in case of urgency to acquire land in certain cases.–(1) In cases of urgency,** whenever the appropriate Government so directs, the Collector, though no such award has been made, may, on the expiration of thirty days from the publication of the notice mentioned in section 21, take possession of any land needed for a public purpose and such land shall thereupon vest absolutely in the Government, free from all encumbrances. (2) The powers of the appropriate Government under sub-section (1) shall be restricted to the minimum area required for the defence of India or national security or for any emergencies arising out of natural calamities or any other emergency with the approval of Parliament: Provided that the Collector shall not take possession of any building or part of a building under this sub-section without giving to the occupier thereof at least forty-eight hours notice of his intention to do so, or such longer notice as may be reasonably sufficient to enable such occupier to remove his movable property from such building without unnecessary inconvenience. (3) Before taking possession of any land under sub-section (1) or sub-section (2), the Collector shall tender payment of eighty per cent. of the compensation for such land as estimated by him to the person interested entitled thereto. (4) In the case of any land to which, in the opinion of the appropriate Government, the provisions of sub-section (1), sub-section (2) or sub-section (3) are applicable, the appropriate Government may direct that any or all of the provisions of Chapter II to Chapter VI shall not apply, and, if it does so direct, a declaration may be made under section 19 in respect of the land at any time after the date of the publication of the preliminary notification under sub-section (1) of section 11. (5) An additional compensation of seventy-five per cent. of the total compensation as determined under section 27, shall be paid by the Collector in respect of land and property for acquisition of which proceedings have been initiated under sub-section (1) of this section: Provided that no additional compensation will be required to be paid in case the project is one that affects the sovereignty and integrity of India, the security and strategic interests of the State or relations with foreign States. **STATE AMENDMENTS** **Maharashtra** “In section 40 of the principal Act, in sub-section (2), after the words “approval of Parliament”, the words “or to comply with the directions given by the Central Government to the State Government” shall be added.” [Vide Maharashtra Act 37 of 2018, sec. 7 (w.e.f. 26.4.2018).] **41. Special provisions for Scheduled Castes and Scheduled Tribes.–(1) As far as possible, no** acquisition of land shall be made in the Scheduled Areas. (2) Where such acquisition does take place it shall be done only as a demonstrable last resort. (3) In case of acquisition or alienation of any land in the Scheduled Areas, the prior consent of the concerned Gram Sabha or the Panchayats or the autonomous District Councils, at the appropriate level in Scheduled Areas under the Fifth Schedule to the Constitution, as the case may be, shall be obtained, in all cases of land acquisition in such areas, including acquisition in case of urgency, before issue of a notification under this Act, or any other Central Act or a State Act for the time being in force: Provided that the consent of the Panchayats or the Autonomous Districts Councils shall be obtained in cases where the Gram Sabha does not exist or has not been constituted. (4) In case of a project involving land acquisition on behalf of a Requiring Body which involves involuntary displacement of the Scheduled Castes or the Scheduled Tribes families, a Development Plan shall be prepared, in such form as may be prescribed, laying down the details of procedure for settling land rights due, but not settled and restoring titles of the Scheduled Tribes as well as the ----- Scheduled Castes on the alienated land by undertaking a special drive together with land acquisition. (5) The Development Plan shall also contain a programme for development of alternate fuel, fodder and non-timber forest produce resources on non-forest lands within a period of five years, sufficient to meet the requirements of tribal communities as well as the Scheduled Castes. (6) In case of land being acquired from members of the Scheduled Castes or the Scheduled Tribes, at least one-third of the compensation amount due shall be paid to the affected families initially as first instalment and the rest shall be paid after taking over of the possession of the land. (7) The affected families of the Scheduled Tribes shall be resettled preferably in the same Scheduled Area in a compact block so that they can retain their ethnic, linguistic and cultural identity. (8) The resettlement areas predominantly inhabited by the Scheduled Castes and the Scheduled Tribes shall get land, to such extent as may be decided by the appropriate Government free of cost for community and social gatherings. (9) Any alienation of tribal lands or lands belonging to members of the Scheduled Castes in disregard of the laws and regulations for the time being in force shall be treated as null and void, and in the case of acquisition of such lands, the rehabilitation and resettlement benefits shall be made available to the original tribal land owners or land owners belonging to the Scheduled Castes. (10) The affected Scheduled Tribes, other traditional forest dwellers and the Scheduled Castes having fishing rights in a river or pond or dam in the affected area shall be given fishing rights in the reservoir area of the irrigation or hydel projects. (11) Where the affected families belonging to the Scheduled Castes and the Scheduled Tribes are relocated outside of the district, then, they shall be paid an additional twenty-five per cent. rehabilitation and resettlement benefits to which they are entitled in monetary terms along with a onetime entitlement of fifty thousand rupees. **42. Reservation and other benefits.–(1) All benefits, including the reservation benefits available** to the Scheduled Tribes and the Scheduled Castes in the affected areas shall continue in the resettlement area. (2) Whenever the affected families belonging to the Scheduled Tribes who are residing in the Scheduled Areas referred to in the Fifth Schedule or the tribal areas referred to in the Sixth Schedule to the Constitution are relocated outside those areas, than, all the statutory safeguards, entitlements and benefits being enjoyed by them under this Act shall be extended to the area to which they are resettled regardless of whether the resettlment area is a Scheduled Area referred to in the said Fifth Schedule, or a tribal area referred to in the said Sixth Schedule, or not. (3) Where the community rights have been settled under the provisions of the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 (2 of 2007), the same shall be quantified in monetary amount and be paid to the individual concerned who has been displaced due to the acquisition of land in proportion with his share in such community rights. CHAPTER VI PROCEDURE AND MANNER OF REHABILITATION AND RESETTLEMENT **43. Appointment of Administrator.–(1) Where the appropriate Government is satisfied that there** is likely to be involuntary displacement of persons due to acquisition of land, then, the State Government shall, by notification, appoint in respect of that project, an officer not below the rank of Joint Collector or Additional Collector or Deputy Collector or equivalent official of Revenue Department to be the Administrator for Rehabilitation and Resettlement. (2) The Administrator shall, with a view to enable him to function efficiently and to meet the special time-frame, be provided with such powers, duties and responsibilities as may be prescribed by the appropriate Government and provided with office infrastructure and be assisted by such officers and employees who shall be subordinate to him as the appropriate Government may decide. (3) Subject to the superintendence, directions and control of the appropriate Government and the ----- Commissioner for Rehabilitation and Resettlement, the formulation, execution and monitoring of the Rehabilitation and Resettlement Scheme shall vest in the Administrator. **44. Commissioner for rehabilitation and resettlement.–(1) The State Government shall appoint** an officer of the rank of Commissioner or Secretary of that Government for rehabilitation and resettlement of affected families under this Act, to be called the Commissioner for Rehabilitation and Resettlement. (2) The Commissioner shall be responsible for supervising the formulation of rehabilitation and resettlement schemes or plans and proper implementation of such schemes or plans. (3) The Commissioner shall be responsible for the post-implementation social audit in consultation with the Gram Sabha in rural areas and municipality in urban areas. **45. Rehabilitation and resettlement committee at project level.–(1) Where land proposed to be** acquired is equal to or more than one hundred acres, the appropriate Government shall constitute a Committee under the chairmanship of the Collector to be called the Rehabilitation and Resettlement Committee, to monitor and review the progress of implementation of the Rehabilitation and Resettlement scheme and to carry out post-implementation social audits in consultation with the Gram Sabha in rural areas and municipality in urban areas. (2) The Rehabilitation and Resettlement Committee shall include, apart from officers of the appropriate Government, the following members, namely:— (a) a representative of women residing in the affected area; (b) a representative each of the Scheduled Castes and the Scheduled Tribes residing in the affected area; (c) a representative of a voluntary organisation working in the area; _(d) a representative of a nationalised bank;_ (e) the Land Acquisition Officer of the project; (f) the Chairpersons of the panchayats or municipalities located in the affected area or their nominees; (g) the Chairperson of the District Planning Committee or his nominee; (h) the Member of Parliament and Member of the Legislative Assembly of the concerned area or their nominees; (i) a representative of the Requiring Body; and (j) Administrator for Rehabilitation and Resettlement as the Member-Convenor. (3) The procedure regulating the discharge of the process given in this section and other matters connected thereto of the Rehabilitation and Resettlement Committee shall be such as may be prescribed by the appropriate Government. **46. Provisions relating to rehabilitation and resettlement to apply in case of certain persons** **other than specified persons.—(1) Where any person other than a specified person is purchasing land** through private negotiations for an area equal to or more than such limits, as may be notified by the appropriate Government, considering the relevant State specific factors and circumstances, for which the payment of Rehabilitation and Resettlement Costs under this Act is required, he shall file an application with the District Collector notifying him of— (a) intent to purchase; (b) purpose for which such purchase is being made; (c) particulars of lands to be purchased. (2) It shall be the duty of the Collector to refer the matter to the Commissioner for the satisfaction of all relevant provisions under this Act related to rehabilitation and resettlement. ----- (3) Based upon the Rehabilitation and Resettlement Scheme approved by the Commissioner as per the provisions of this Act, the Collector shall pass individual awards covering Rehabilitation and Resettlement entitlements as per the provisions of this Act. (4) No land use change shall be permitted if rehabilitation and resettlement is not complied with in full. (5) Any purchase of land by a person other than specified persons without complying with the provisions of Rehabilitation and Resettlement Scheme shall be void ab initio: Provided that the appropriate Government may provide for rehabilitation and resettlement provisions on sale or purchase of land in its State and shall also fix the limits or ceiling for the said purpose. (6) If any land has been purchased through private negotiations by a person on or after the 5th day of September, 2011, which is more than such limits referred to in sub-section (1) and, if the same land is acquired within three years from the date of commencement of this Act, then, forty per cent. of the compensation paid for such land acquired shall be shared with the original land owners. _Explanation.—For the purpose of this section, the expression—_ (a) “original land owner” refers to the owner of the land as on the 5th day of September, 2011; (b) “specified persons” includes any person other than— (i) appropriate Government; (ii) Government company; (iii) association of persons or trust or society as registered under the Societies Registration Act, 1860 (21 of 1860), wholly or partially aided by the appropriate Government or controlled by the appropriate Government. **STATE AMENDMENTS** **Andhra Pradesh** [In the principal Act, in section 46, in sub-section (6), in the Explanation, in clause (b), the words “any person other than”, shall be omitted.] [Vide Andhra Pradesh Act 22 of 2018, sec. 9 (w.e.f. 1-1-2014).] **Maharashtra** “In section 46 of the principal Act, in sub-section (6), in the Explanation, in clause (b), sub-clauses (i) and (ii) shall be deleted.” [Vide Maharashtra Act 37 of 2018, sec. 8 (w.e.f. 26.4.2018).] **Haryana** “In clause (b) of Explanation to section 46 of the principal Act, the words “any person other than” shall be omitted.” [Vide Haryana Act 21 of 2018, sec. 3 (w.e.f. 9.5.2018).] **47. Quantification and deposit of rehabilitation and resettlement amount.–Where the** Collector is of the view that the obligations of the Requiring Body with regard to rehabilitation and resettlement can be quantified into monetary amount, he shall allow the payment of such amount into an account in complete satisfaction of such obligations, which shall be administered by the Administrator appointed under section 43, under the supervision of the Collector. CHAPTER VII NATIONAL MONITORING COMMITTEE FOR REHABILITATION AND RESETTLEMENT **48.** **Establishment of National Monitoring Committee for rehabilitation and resettlement.–(1)** The Central Government may, whenever necessary, for national or inter-State projects, constitute a National Monitoring Committee for reviewing and monitoring the implementation of rehabilitation and resettlement schemes or plans under this Act. (2) The Committee may, besides having representation of the concerned Ministries and Departments of the Central and State Governments, associate with it eminent experts from the relevant fields. ----- (3) The procedures to be followed by the Committee and the allowances payable to the experts shall be such as may be prescribed. (4) The Central Government shall provide officers and other employees to the Committee necessary for its efficient functioning. **49. Reporting requirements.–The States and Union territories shall provide all the relevant** information on the matters covered under this Act, to the National Monitoring Committee in a regular and timely manner, and also as and when required. **50. Establishment of State Monitoring Committee for rehabilitation and resettlement.–(1)** The State Government shall constitute a State Monitoring Committee for reviewing and monitoring the implementation of rehabilitation and resettlement schemes or plans under this Act. (2) The Committee may, besides having representatives of the concerned Ministries and Departments of the State Government, associate with it eminent experts from the relevant fields. (3) The procedures to be followed by the Committee and the allowances payable to the experts shall be such as may be prescribed by the State. (4) The State Government shall provide such officers and other employees to the Committee as may be necessary for its efficient functioning. CHAPTER VIII ESTABLISHMENT OF LAND ACQUISITION, REHABILITATION AND RESETTLEMENT AUTHORITY **51.** **Establishment of Land Acquisition, Rehabilitation and Resettlement Authority.–(1) The** appropriate Government shall, for the purpose of providing speedy disposal of disputes relating to land acquisition, compensation, rehabilitation and resettlement, establish, by notification, one or more Authorities to be known as “the Land Acquisition, Rehabilitation and Resettlement Authority” to exercise jurisdiction, powers and authority conferred on it by or under this Act. (2) The appropriate Government shall also specify in the notification referred to in sub-section (1) the areas within which the Authority may exercise jurisdiction for entertaining and deciding the references made to it under section 64 or applications made by the applicant under second proviso to sub-section (1) of section 64. **52. Composition of Authority.–(1) The Authority shall consist of one person only (hereinafter** referred to as the Presiding Officer) to be appointed, by notification, by the appropriate Government. (2) Notwithstanding anything contained in sub-section (1), the appropriate Government may authorise the Presiding Officer of one Authority to discharge also the functions of the Presiding Officer of another Authority. **53. Qualifications for appointment as Presiding Officer.–(1) A person shall not be qualified for** appointment as the Presiding Officer of an Authority unless,— (a) he is or has been a District Judge; or (b) he is a qualified legal practitioner for not less than seven years. (2) A Presiding Officer shall be appointed by the appropriate Government in consultation with the Chief Justice of a High Court in whose jurisdiction the Authority is proposed to be established. **54. Terms of office of Presiding Officer.–The Presiding Officer of an Authority shall hold office** for a term of three years from the date on which he enters upon his office or until he attains the age of sixty-five years, whichever is earlier. **55. Staff of Authority.–(1) The appropriate Government shall provide the Authority with a** Registrar and such other officers and employees as that Government may think fit. (2) The Registrar and other officers and employees of an Authority shall discharge their functions under the general superintendence of the Presiding Officer. (3) The salaries and allowances and other conditions of service of the Registrar and other officers ----- and employees of an Authority shall be such as may be prescribed. **56. Salary and allowances and other terms and conditions of service of Presiding Officers.–** The salary and allowances payable to and the other terms and conditions of service (including pension, gratuity and other retirement benefits) of the Presiding Officer of an Authority, shall be such as may be prescribed: Provided that neither the salary and allowances nor the other terms and conditions of service of the said Presiding Officers shall be varied to their disadvantage after appointment. **57. Filling up of vacancies.–If, for any reason other than temporary absence, any vacancy occurs** in the office of the Presiding Officer of an Authority then the appropriate Government shall appoint another person in accordance with the provisions of this Act to fill the vacancy and the proceedings may be continued before the Authority from the stage at which the vacancy is filled. **58. Resignation and removal.–(1) The Presiding Officer of an Authority may, by notice in** writing under his hand addressed to the appropriate Government, resign his office: Provided that the Presiding Officer shall, unless he is permitted by the appropriate Government to relinquish his office sooner, continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is earlier. (2) The Presiding Officer of an Authority shall not be removed from his office except by an order made by the appropriate Government on the ground of proven misbehaviour or incapacity after inquiry in the case of the Presiding Officer of an Authority made by a Judge of a High Court in which the Presiding Officer concerned has been informed of the charges against him and given a reasonable opportunity of being heard in respect of these charges. (3) The appropriate Government may, by rules, regulate the procedure for the investigation of misbehaviour or incapacity of the aforesaid Presiding Officer. **59. Orders constituting Authority to be final and not to invalidate its proceedings.–No order** of the appropriate Government appointing any person as the Presiding Officer of an Authority shall be called in question in any manner, and no act or proceeding before an Authority shall be called in question in any manner on the ground merely of any defect in the constitution of an Authority. **60. Powers of Authority and procedure before it.–(1) The Authority shall, for the purposes of its** functions under this Act, shall have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) in respect of the following matters, namely:— (a) summoning and enforcing the attendance of any person and examining him on oath; (b) discovery and production of any document or other material object producible as evidence; (c) receiving evidence on affidavits; (d) requisitioning of any public record; (e) issuing commission for the examination of witnesses; (f) reviewing its decisions, directions and orders; (g) any other matter which may be prescribed. (2) The Authority shall have original jurisdiction to adjudicate upon every reference made to it under section 64. (3) The Authority shall not be bound by the procedure laid down in the Code of Civil Procedure, 1908 (5 of 1908) but shall be guided by the principles of natural justice and subject to the other provisions of this Act and of any rules made thereunder, the Authority shall have the power to regulate its own procedure. (4) The Authority shall, after receiving reference under section 64 and after giving notice of such reference to all the parties concerned and after affording opportunity of hearing to all parties, dispose ----- of such reference within a period of six months from the date of receipt of such reference and make an award accordingly. (5) The Authority shall arrange to deliver copies of the award to the parties concerned within a period of fifteen days from the date of such award. **61. Proceedings before Authority to be judicial proceedings.–All proceedings before the** Authority shall be deemed to be judicial proceedings within the meaning of sections 193 and 228 of the Indian Penal Code (45 of 1860) and the Authority shall be deemed to be a civil court for the purposes of sections 345 and 346 of the Code of Criminal Procedure, 1973 (2 of 1974). **62. Members and officers of Authority to be public servants.–The Member and officers of the** Authority shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **63. Jurisdiction of civil courts barred.–No civil court (other than High Court under article 226 or** article 227 of the Constitution or the Supreme Court) shall have jurisdiction to entertain any dispute relating to land acquisition in respect of which the Collector or the Authority is empowered by or under this Act, and no injunction shall be granted by any court in respect of any such matter. **64. Reference to Authority.–(1) Any person interested who has not accepted the award may, by** written application to the Collector, require that the matter be referred by the Collector for the determination of the Authority, as the case may be, whether his objection be to the measurement of the land, the amount of the compensation, the person to whom it is payable, the rights of Rehabilitation and Resettlement under Chapters V and VI or the apportionment of the compensation among the persons interested: Provided that the Collector shall, within a period of thirty days from the date of receipt of application, make a reference to the appropriate Authority: Provided further that where the Collector fails to make such reference within the period so specified, the applicant may apply to the Authority, as the case may be, requesting it to direct the Collector to make the reference to it within a period of thirty days. (2) The application shall state the grounds on which objection to the award is taken: Provided that every such application shall be made— (a) if the person making it was present or represented before the Collector at the time when he made his award, within six weeks from the date of the Collector’s award; (b) in other cases, within six weeks of the receipt of the notice from the Collector under section 21, or within six months from the date of the Collector’s award, whichever period shall first expire: Provided further that the Collector may entertain an application after the expiry of the said period, within a further period of one year, if he is satisfied that there was sufficient cause for not filing it within the period specified in the first proviso. **65. Collector’s statement to Authority.–(1) In making the reference, the Collector shall state for** the information of the Authority, in writing under his hand— (a) the situation and extent of the land, with particulars of any trees, buildings or standing crops thereon; (b) the names of the persons whom he has reason to think interested in such land; (c) the amount awarded for damages and paid or tendered under section 13, and the amount of compensation awarded under the provisions of this Act; (d) the amount paid or deposited under any other provisions of this Act; and (e) if the objection be to the amount of the compensation, the grounds on which the amount of compensation was determined. ----- (2) The statement under sub-section (1) shall be attached a schedule giving the particulars of the notices served upon, and of the statements in writing made or delivered by the persons interested respectively. **66. Service of notice by Authority.–The Authority shall thereupon cause a notice specifying the** day on which the Authority will proceed to determine the objection, and directing their appearance before the Authority on that day, to be served on the following persons, namely:— (a) the applicant; (b) all persons interested in the objection, except such (if any) of them as have consented without protest to receive payment of the compensation awarded; and (c) if the objection is in regard to the area of the land or to the amount of the compensation, the Collector. **67. Restriction on scope of proceedings.–The scope of the enquiry in every such proceeding shall** be restricted to a consideration of the interest of the persons affected by the objection. **68. Proceedings to be in public.–Every such proceeding shall take place in public, and all persons** entitled to practice in any Civil Court in the State shall be entitled to appear, plead and act (as the case may be) in such proceeding. **69. Determination of award by Authority.–(1) In determining the amount of compensation to be** awarded for land acquired including the Rehabilitation and Resettlement entitlements, the Authority shall take into consideration whether the Collector has followed the parameters set out under section 26 to section 30 and the provisions under Chapter V of this Act. (2) In addition to the market value of the land, as above provided, the Authority shall in every case award an amount calculated at the rate of twelve per cent. per annum on such market value for the period commencing on and from the date of the publication of the preliminary notification under section 11 in respect of such land to the date of the award of the Collector or the date of taking possession of the land, whichever is earlier. _Explanation.—In computing the period referred to in this sub-section, any period or periods during_ which the proceedings for the acquisition of the land were held up on account of any stay or injunction by the order of any Court shall be excluded. (3) In addition to the market value of the land as above provided, the Authority shall in every case award a solatium of one hundred per cent. over the total compensation amount. **70. Form of award.–(1) Every award under this Chapter shall be in writing signed by the** Presiding Officer of the Authority, and shall specify the amount awarded under clause first of section 28, and also the amounts (if any) respectively awarded under each of the other clauses of the same subsection, together with the grounds of awarding each of the said amounts. (2) Every such award shall be deemed to be a decree and the statement of the grounds of every such award a judgment within the meaning of clause (2), and clause (9) of respectively, of section 2 of the Code of Civil Procedure, 1908 (5 of 1908). **71. Costs.–(1) Every such award shall also state the amount of costs incurred in the proceeding** under this Chapter, and by what persons and in what proportions they are to be paid. (2) When the award of the Collector is not upheld, the cost shall ordinarily be paid by the Collector, unless the Authority concerned is of the opinion that the claim of the applicant was so extravagant or that he was so negligent in putting his case before the Collector that some deduction from his costs should be made or that he should pay a part of the Collector’s costs. **72. Collector may be directed to pay interest on excess compensation.–If the sum, which in the** opinion of the Authority concerned, the Collector ought to have awarded as compensation is in excess of the sum which the Collector did award as compensation, the award of the Authority concerned may direct that the Collector shall pay interest on such excess at the rate of nine per cent. per annum from the date on which he took possession of the land to the date of payment of such excess into Authority: ----- Provided that the award of the Authority concerned may also direct that where such excess or any part thereof is paid to the Authority after the date or expiry of a period of one year from the date on which possession is taken, interest at the rate of fifteen per cent. per annum shall be payable from the date of expiry of the said period of one year on the amount of such excess or part thereof which has not been paid into Authority before the date of such expiry. **73. Re-determination of amount of compensation on the basis of the award of the Authority.–** (1) Where in an award under this Chapter, the Authority concerned allows to the applicant any amount of compensation in excess of the amount awarded by the Collector under section 23, the persons interested in all the other land covered by the same preliminary notification under section 11, and who are also aggrieved by the award of the Collector may, notwithstanding that they had not made an application to the Collector, by written application to the Collector within three months from the date of the award of the Authority concerned require that the amount of compensation payable to them may be re-determined on the basis of the amount of compensation awarded by the Authority: Provided that in computing the period of three months within which an application to the Collector shall be made under this sub-section, the day on which the award was pronounced and the time requisite for obtaining a copy of the award shall be excluded. (2) The Collector shall, on receipt of an application under sub-section (1), conduct an inquiry after giving notice to all the persons interested and giving them a reasonable opportunity of being heard, and make an award determining the amount of compensation payable to the applicants. (3) Any person who has not accepted the award under sub-section (2) may, by written application to the Collector, require that the matter be referred by the Collector for the determination of the Authority concerned. **74. Appeal to High Court.–(1) The Requiring Body or any person aggrieved by the Award passed** by an Authority under section 69 may file an appeal to the High Court within sixty days from the date of Award: Provided that the High Court may, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within the said period, allow it to be filed within a further period not exceeding sixty days. (2) Every appeal referred to under sub-section (1) shall be heard as expeditiously as possible and endeavour shall be made to dispose of such appeal within six months from the date on which the appeal is presented to the High Court. _Explanation.—For the purposes of this section, “High Court” means the High Court within the_ jurisdiction of which the land acquired or proposed to be acquired is situated. CHAPTER IX APPORTIONMENT OF COMPENSATION **75. Particulars of apportionment to be specified.–When there are several persons interested, if** such persons agree in the apportionment of the compensation, the particulars of such apportionment shall be specified in the award, and as between such persons the award shall be conclusive evidence of the correctness of the apportionment. **76. Dispute as to apportionment.–When the amount of compensation has been settled, if any** dispute arises as to the apportionment of the same or any part thereof, or as to the persons to whom the same or any part thereof is payable, the Collector may refer such disputes to the Authority. CHAPTER X PAYMENT **77. Payment of compensation or deposit of same in Authority.–(1) On making an award under** section 30, the Collector shall tender payment of the compensation awarded by him to the persons interested entitled thereto according to the award and shall pay it to them by depositing the amount in their bank accounts unless prevented by someone or more of the contingencies mentioned in ----- sub-section (2). (2) If the person entitled to compensation shall not consent to receive it, or if there be no person competent to alienate the land, or if there be any dispute as to the title to receive the compensation or as to the apportionment of it, the Collector shall deposit the amount of the compensation in the Authority to which a reference under section 64 would be submitted: Provided that any person admitted to be interested may receive such payment under protest as to the sufficiency of the amount: Provided further that no person who has received the amount otherwise than under protest shall be entitled to make any application under sub-section (1) of section 64: Provided also that nothing herein contained shall affect the liability of any person, who may receive the whole or any part of any compensation awarded under this Act, to pay the same to the person lawfully entitled thereto. **78. Investment of money deposited in respect of lands belonging to person incompetent to** **alienate.–(1) If any money is deposited in the Authority concerned under sub-section (2) of section 77** and it appears that the land in respect whereof the same was awarded belonged to any person who had no power to alienate the same, the Authority concerned shall— (a) order the money to be invested in the purchase of other lands to be held under the like title and conditions of ownership as the land in respect of which such money shall have been deposited was held; or (b) if such purchase cannot be effected forthwith, then in such Government of other approved securities as the Authority concerned shall think fit, and shall direct the payment of the interest or other proceeds arising from such investment to the person or persons who would for the time being have been entitled to the possession of the said land, and such moneys shall remain so deposited and invested until the same be applied— (i) in the purchase of such other lands as aforesaid; or (ii) in payment to any person or persons becoming absolutely entitled thereto. (2) In all cases of money deposited to which this section applies the Authority concerned shall order the costs of the following matters, including therein all reasonable charge and expenses incident thereon, to be paid by the Collector, namely:— (a) the costs of such investments as aforesaid; (b) the costs of the orders for the payment of the interest or other proceeds of the securities upon which such moneys are for the time being invested, and for the payment out of the Authority concerned of the principal of such moneys, and of all proceedings relating thereto, except such as may be occasioned by litigation between adverse claimants. **79. Investment of money deposited in other cases.–When any money shall have been deposited** in the Authority concerned under this Act for any cause other than the causes mentioned in section 78, the Authority may, on the application of any party interested or claiming an interest in such money, order the same to be invested in such Government or other approved securities as it may think proper, and paid in such manner as it may consider will give the parties interested therein the same benefit from it as they might have had from the land in respect whereof such money shall have been deposited or as near thereto as may be. **80. Payment of interest.–When the amount of such compensation is not paid or deposited on or** before taking possession of the land, the Collector shall pay the amount awarded with interest thereon at the rate of nine per cent. per annum from the time of so taking possession until it shall have been so paid or deposited: Provided that if such compensation or any part thereof is not paid or deposited within a period of one year from the date on which possession is taken, interest at the rate of fifteen per cent. per annum ----- shall be payable from the date or expiry of the said period of one year on the amount of compensation or part thereof which has not been paid or deposited before the date of such expiry. CHAPTER XI TEMPORARY OCCUPATION OF LAND **81.** **Temporary occupation of waste or arable land, procedure when difference as to** **compensation exists.–(1) Whenever it appears to the appropriate Government that the temporary** occupation and use of any waste or arable land are needed for any public purpose, the appropriate Government may direct the Collector to procure the occupation and use of the same for such terms as it shall think fit, not exceeding three years from the commencement of such occupation. (2) The Collector shall thereupon give notice in writing to the person interested in such land of the purpose for which the same is needed, and shall, for the occupation and use thereof for such term as aforesaid, and for the materials (if any) to be taken therefrom, pay to them such compensation, either in a gross sum of money, or by monthly or other periodical payments, as shall be agreed upon in writing between him and such persons respectively. (3) In case the Collector and the persons interested differ as to the sufficiency of the compensation or apportionment thereof, the Collector shall refer such difference to the decision of the Authority. **82. Power to enter and take possession and compensation on restoration.–(1) On payment of** such compensation, or on executing such agreement, or on making a reference under section 64, the Collector may enter upon and take possession of the land, and use or permit the use thereof in accordance with the terms of the said notice. (2) On the expiration of the term, the Collector shall make or tender to the persons interested compensation for the damage (if any) done to the land and not provided for by the agreement, and shall restore the land to the persons interested therein: Provided that, if the land has become permanently unfit to be used for the purpose for which it was used immediately before the commencement of such term, and if the persons interested shall so require, the appropriate Government shall proceed under this Act to acquire the land as if it was needed permanently for a public purpose. **83. Difference as to condition of land.–In case the Collector and persons interested differ as to** the condition of the land at the expiration of the term, or as to any matter connected with the said agreement, the Collector shall refer such difference to the decision of the Authority concerned. CHAPTER XII OFFENCES AND PENALTIES **84.** **Punishment for false information, mala fide action, etc.–(1) If a person, in connection with a** requirement or direction under this Act, provides any information that is false or misleading, or produces any false document, he shall be liable to be punished with imprisonment of either description for a term which may extend to six months, or with fine which may extend to one lakh rupees, or with both. (2) Any rehabilitation and resettlement benefit availed of by making a false claim or through fraudulent means shall be liable to be recovered by the appropriate Government in the manner as may be prescribed. (3) Disciplinary proceedings may be drawn up by the disciplinary authority against a Government servant, who if proved to be guilty of a mala fide action in respect of any provision of this Act, shall be liable to such punishment including a fine as the disciplinary authority may decide. **85. Penalty for contravention of provisions of Act.–If any person contravenes any of the** provisions relating to payment of compensation or rehabilitation and resettlement, every such person shall be liable to a punishment of six months which may extend to three years or with fine or with both. **86. Offences by companies.–(1) Where an offence under this Act has been committed by a** ----- company, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or that the commission of the offence is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purposes of this section,—_ (a)”company” means any body corporate and includes a firm or other association of individuals and a Requiring Body; and (b) “director”, in relation to a firm, means a partner in the firm. **87. Offences by Government departments.–(1) Where an offence under this Act has been** committed by any department of the Government, the head of the department, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this section shall render any person liable to any punishment if such person proves that the offence was committed without his knowledge or that such person exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a Department of the Government and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of any officer, other than the head of the department, such officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. **STATE AMENDMENTS** **Andhra Pradesh** In the principal Act, for section 87, along with the marginal heading the following section shall be substituted, namely: **“87. Offences by Government officials. –Where any offence under this Act has been committed** by any person who is or was employed in the Central Government or the State Government, as the case may be, at the time of commission of such alleged offence, the Court shall take cognizance of such offence provided the procedure laid down in section 197 of the Code of Criminal Procedure, 1973 (Act 2 of 1974) is followed.” [Vide Andhra Pradesh Act 22 of 2018, sec. 10 (w.e.f. 1-1-2014).] **Maharashtra** For section 87 of the principal Act, the following section shall be substituted, namely:“87. Offences by Government Officials. –Where any offence under this Act has been committed by any person who is or was employed in the Central Government or the State Government, as the case may be, at the time of commission of such alleged offence, the court shall take cognizance of such offence provided the procedure laid down in section 197 of the Code of Criminal Procedure, 1973 (2 of 1974), in its application to the State of Maharashtra, is followed.” [Vide Maharashtra Act 37 of 2018, sec. 9 (w.e.f. 26-4-2018).] **Haryana** After section 87 of the principal Act, the following section shall be inserted, namely: **“87A. Offences by Government officials.- Where an offence under this Act has been committed** by any person who is or was employed in the Central Government or State Government, as the case may be, at the time of commission of such alleged offence, no court shall take cognizance of such ----- offence unless the procedure laid down in section 197 of the Code of Criminal Procedure, 1973 (Central Act 2 of 1974) has been followed.” [Vide Haryana Act 21 of 2018, sec. 4 (w.e.f. 9-5-2018).] **88. Cognizance of offences by court.–No court inferior to that of a Metropolitan Magistrate or a** Judicial Magistrate of the first class shall be competent to try any offence punishable under this Act. **89. Offences to be non-cognizable.–Notwithstanding anything contained in the Code of Criminal** Procedure, 1973 (2 of 1974) every offence under this Act shall be deemed to be non-cognizable. **90. Offences to be cognizable only on complaint filed by certain persons.–No court shall take** cognizance of any offence under this Act which is alleged to have been committed by a Requiring Body except on a complaint in writing made by the Collector or any other officer authorised by the appropriate Government or any member of the affected family. CHAPTER XIII MISCELLANEOUS **91. Magistrate to enforce surrender.–If the Collector is opposed or impeded in taking possession** under this Act of any land, he shall, if a Magistrate, enforce the surrender of the land to himself, and if not a Magistrate, he shall apply to a Magistrate or to the Commissioner of Police, and such Magistrate or Commissioner, as the case may be, shall enforce the surrender of the land to the Collector. **92. Service of notice.–(1) Save as otherwise provided in section 66, the service of any notice** under this Act shall be made by delivering or tendering a copy thereof signed, in the case of a notice, by the officer therein mentioned, and, in the case of any other notice, by order of the Collector. (2) Whenever it may be practicable, the service of the notice shall be made on the person therein named. (3) When such person cannot be found, the service may be made on any adult member of his family residing with him; and, if no such adult member can be found, the notice may be served by fixing the copy on the outer door of the house in which the person therein named ordinarily dwells or carries on business, or by fixing a copy thereof in some conspicuous place in the office of the officer aforesaid or of the Collector or in the court-house, and also in some conspicuous part of the land to be acquired: Provided that, if the Collector or Judge shall so direct, a notice may be sent by post, in a letter addressed to the person named therein at his last known residence, address or place of business and also publish the same in at least two national daily newspapers and also on his website. **93. Completion of acquisition not compulsory, but compensation to be awarded when not** **completed.–(1) The appropriate Government shall be at liberty to withdraw from the acquisition of** any land of which possession has not been taken. (2) Whenever the appropriate Government withdraws from any such acquisition, the Collector shall determine the amount of compensation due for the damage suffered by the owner in consequence of the notice or of any proceedings thereunder, and shall pay such amount to the person interested, together with all costs reasonably incurred by him in the prosecution of the proceedings under this Act relating to the said land. **94. Acquisition of part of house or building.–(1) The provisions of this Act shall not be put in** force for the purpose of acquiring a part only of any house, manufactory or other building, if the owner desires that the whole of such house, manufactory or building shall be so acquired: Provided that, if any question shall arise as to whether any land proposed to be taken under this Act does or does not form part of a house, manufactory or building within the meaning of this section, the Collector shall refer the determination of such question to the Authority concerned and shall not be taken possession of such land until after the question has been determined. (2) In deciding on such a reference made under the proviso to sub-section (1), the Authority concerned shall have regard to the question whether the land proposed to be taken, is reasonably required for the full and unimpaired use of the house, manufactory or building. (3) If, in the case of any claim under this Act, by a person interested, on account of the severing of ----- the land to be acquired from his other land, the appropriate Government is of opinion that the claim is unreasonable or excessive, it may, at any time before the Collector has made his award, order the acquisition of the whole of the land of which the land first sought to be acquired forms a part. (4) In the case of any acquisition of land so required no fresh declaration or other proceedings under sections 11 to 19, (both inclusive) shall be necessary; but the Collector shall without delay furnish a copy of the order of the appropriate Government to the person interested, and shall thereafter proceed to make his award under section 23. **95. Acquisition of land at cost of a local authority or Requiring Body.–(1) Where the** provisions of this Act are put in force for the purpose of acquiring land at the cost of any fund controlled or managed by a local authority or of any Requiring Body, the charges of land incidental to such acquisition shall be defrayed from or by such fund or Requiring Body. (2) In any proceeding held before a Collector or Authority concerned in such cases the local authority or Requiring Body concerned may appear and adduce evidence for the purpose of determining the amount of compensation: Provided that no such local authority or Requiring Body shall be entitled to demand a reference to the Authority concerned under section 64. **96. Exemption from income-tax, stamp duty and fees.–No income tax or stamp duty shall be** levied on any award or agreement made under this Act, except under section 46 and no person claiming under any such award or agreement shall be liable to pay any fee for a copy of the same. **97. Acceptance of certified copy as evidence.–In any proceeding under this Act, a certified copy** of a document registered under the Registration Act, 1908 (16 of 1908) including a copy given under section 57 of that Act, may be accepted as evidence of the transaction recorded in such document. **98. Notice in case of suits for anything done in pursuance of Act.–No suit or other proceeding** shall be commenced against any person for anything done in pursuance of this Act, without giving to such person a month’s previous notice in writing of the intended proceeding, and of the cause thereof, nor after tender of sufficient amendments. **99. No change of purpose to be allowed.–No change from the purpose or related purposes for** which the land is originally sought to be acquired shall be allowed: Provided that if the land acquired is rendered unusable for the purpose for which it was acquired due to a fundamental change because of any unforeseen circumstances, then the appropriate Government may use such land for any other public purpose. **100. No change of ownership without permission to be allowed.–No change of ownership** without specific permission from the appropriate Government shall be allowed. **101. Return of unutilised land.– When any land acquired under this Act remains unutilised for a** period of five years from the date of taking over the possession, the same shall be returned to the original owner or owners or their legal heirs, as the case may be, or to the Land Bank of the appropriate Government by reversion in the manner as may be prescribed by the appropriate Government. _Explanation.—For the purpose of this section, “Land Bank” means a governmental entity that_ focuses on the conversion of Government owned vacant, abandoned, unutilised acquired lands and tax-delinquent properties into productive use. **STATE AMENDMENTS** **Andhra Pradesh** “In the principal Act, in section 101, for the words “a period of five years”, the words “a period specified for setting up of any project or for five years, whichever is later,” shall be substituted.” [Vide Andhra Pradesh Act 22 of 2018, sec. 11 (w.e.f. 1-1-2014).] **Haryana** After section 101 of the principal Act, the following section shall be inserted, namely: **“101A. Power to denotify land.- When any public purpose, for which the land acquired** under the Land Acquisition Act, 1894 (Central Act 1 of 1894) becomes unviable or non-essential, the State Government shall be at liberty to denotify such land, on such terms, as considered ----- expedient by the State Government, including the payment of compensation on account of damages, if any, sustained by the land owner due to such acquisition: Provided that where a part of the acquired land has been utilized or any encumbrances have been created, the landowner may be compensated by providing alternative land alongwith payment of damages, if any, as determined by the State Government.” [Vide Haryana Act 21 of 2018, sec. 5 (w.e.f. 9-5-2018).] **102. Difference in price of land when transferred for higher consideration to be shared.–** Whenever the ownership of any land acquired under this Act is transferred to any person for a consideration, without any development having taken place on such land, forty per cent. of the appreciated land value shall be shared amongst the persons from whom the lands were acquired or their heirs, in proportion to the value at which the lands were acquired within a period of five years from the date of acquisition: Provided that benefit shall accrue only on the first sale or transfer that occurs after the conclusion of the acquisition proceedings. **103. Provisions to be in addition to existing laws.–The provisions of this Act shall be in addition** to and not in derogation of, any other law for the time being in force. **104. Option of appropriate Government to lease.–Notwithstanding anything contained in this** Act, the appropriate Government shall, wherever possible, be free to exercise the option of taking the land on lease, instead of acquisition, for any public purpose referred to in sub-section (1) of section 2. **105. Provisions of this Act not to apply in certain cases or to apply with certain** **modifications.–(1) Subject to sub-section (3), the provisions of this Act shall not apply to the** enactments relating to land acquisition specified in the Fourth Schedule. (2) Subject to sub-section (2) of section 106, the Central Government may, by notification, omit or add to any of the enactments specified in the Fourth Schedule. (3) The Central Government shall, by notification, within one year from the date of commencement of this Act, direct that any of the provisions of this Act relating to the determination of compensation in accordance with the First Schedule and rehabilitation and resettlement specified in the Second and Third Schedules, being beneficial to the affected families, shall apply to the cases of land acquisition under the enactments specified in the Fourth Schedule or shall apply with such exceptions or modifications that do not reduce the compensation or dilute the provisions of this Act relating to compensation or rehabilitation and resettlement as may be specified in the notification, as the case may be. (4) A copy of every notification proposed to be issued under sub-section (3), shall be laid in draft before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in disapproving the issue of the notification or both Houses agree in making any modification in the notification, the notification shall not be issued or, as the case may be, shall be issued only in such modified form as may be agreed upon by both the Houses of Parliament. **STATE AMENDMENTS** **Maharashtra** After section 105 of the principal Act, the following section shall be inserted, namely :“105-A. Provisions of this Act not to apply to certain Maharashtra Acts or to apply with **certain modifications.–(1) Subject to sub-section (2), the provisions of this Act shall not apply to** acquisition of land under the enactments specified in the Fifth Schedule. (2) The State Government may, by notification, within one year from the date of commencement of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Maharashtra Amendment) Act, 2018 (Mah. XXXVII of 2018), direct that any of the provisions of this Act, relating to the determination of compensation in accordance with the First Schedule and rehabilitation and resettlement specified in the Second and Third Schedules, being beneficial to the affected families, shall apply to the cases of land acquisition under the enactments specified in the Fifth Schedule or shall apply with such exceptions or modifications that do not reduce ----- the compensation or dilute the provisions of this Act relating to the compensation, rehabilitation and resettlement as may be specified in the notification, as the case may be : Provided that, no such notification shall be issued except on a resolution passed by both Houses of the State Legislature.” [Vide Maharashtra Act 37 of 2018, sec. 10 (w.e.f. 26-4-2018).] **Maharashtra** **Amendment of section 105A of Act 30 of 2013.—In section 105-A of the Right to Fair** Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (30 of 2013), in its application to the State of Maharashtra, as amended by the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Maharashtra Amendment) Act, 2018 (Mah XXXVII of 2018), in sub-section (2), for the words, brackets and figures “within one year from the date of commencement of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Maharashtra Amendment) Act, 2018 (Mah XXXVII of 2018)” the words, brackets and figures “within one year from the date of commencement of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Maharashtra Amendment) Act, 2020 (Mah. III of 2022)” shall be substituted. [Vide Maharashtra Act III of 2022, sec. 2 (w.e.f. 20-01-2022).] **106. Power to amend Schedule.–(1) The Central Government may, by notification, amend or** alter any of the Schedules to this Act, without in any way reducing the compensation or diluting the provisions of this Act relating to compensation or rehabilitation and resettlement. (2) A copy of every notification proposed to be issued under sub-section (1), shall be laid in draft before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in disapproving the issue of the notification or both Houses agree in making any modification in the notification, the notification shall not be issued or as the case may be, shall be issued only in such modified form as may be agreed upon by both the Houses of Parliament. **107. Power of State Legislatures to enact any law more beneficial to affected families.–** Nothing in this Act shall prevent any State from enacting any law to enhance or add to the entitlements enumerated under this Act which confers higher compensation than payable under this Act or make provisions for rehabilitation and resettlement which is more beneficial than provided under this Act. **108. Option to affected families to avail better compensation and rehabilitation and** **resettlement.–(1) Where a State law or a policy framed by the Government of a State provides for a** higher compensation than calculated under this Act for the acquisition of land, the affected persons or his family or member of his family may at their option opt to avail such higher compensation and rehabilitation and resettlement under such State law or such policy of the State. (2) Where a State law or a policy framed by the Government of a State offers more beneficial rehabilitation and resettlement provisions under that Act or policy than under this Act, the affected persons or his family or member of his family may at his option opt to avail such rehabilitation and resettlement provisions under such State law or such policy of the State instead of under this Act. **109. Power of appropriate Government to make rules.–(1) Subject to the other provisions of** this Act, the appropriate Government may, by notification, make rules for carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing, such rules may provide for all or any of the following matters, namely:— (a) the process of obtaining the prior consent under the first proviso to sub-section (2) of section 2; (b) the limits of land in rural areas or urban areas under clause (a) of sub-section (3) of section 2; ----- (c) the manner and the time limit for carrying out social impact assessment study under sub-section (1) of section 4; (d) the manner of preparing and publishing social impact assessment study reports under sub-section (1) of section 6; (e) the manner and time for conducting survey and undertaking census under sub-section (2) of section 16; (f) the manner of preparing draft Rehabilitation and Resettlement Scheme under sub-section (5) of section 16; (g) the manner of conducting public hearing under sub-section (5) of section 16; (h) the manner of depositing amount by the Requiring Body under second proviso to sub-section (2) of section 19; (i) the manner in which and the period within which any excess amount paid may be recovered under sub-section (3) of section 33; (j) the form in which the Development Plan shall be prepared under sub-section (4) of section 41; (k) the powers, duties and responsibilities of Administrator under sub-section (2) of section 43; (l) the procedure of Rehabilitation and Resettlement Committee under sub-section (3) of section 45; (m) the procedure to be followed by the Rehabilitation and Resettlement Committee and allowances to be paid to the experts under sub-section (3) of section 48; (n) the procedures to be followed by the State Monitoring Committee and the allowances payable to the experts under sub-section (3) of section 50; (o) the salaries and allowances and other conditions of service of the Registrar and other officers and employees of an Authority under sub-section (3) of section 55; (p) the salary and allowances payable to and the other terms and conditions of service (including pension, gratuity and other retirement benefits) of, the Presiding Officer of an Authority under section 56; (q) any other matter under clause (g) of sub-section (1) of section 60; (r) the manner of recovery of the rehabilitation and resettlement benefits, availed of by making false claim or through fraudulent means, under sub-section (2) of section 84; (s) the manner of returning the unutilised land by reversion under section 101; (t) manner of publication wherever the provisions of this Act provide for; (u) any other matter which is required to be or may be specified under this Act. **STATE AMENDMENTS** **Andhra Pradesh** In the principal Act, in section 109, in sub-section (2), after clause (u) the following clause shall be added, namely: “(v) to give effect to the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Andhra Pradesh Amendment) Act, 2018” [Vide Andhra Pradesh Act 22 of 2018, sec. 12 (w.e.f. 1-1-2014).] **110. Rules made by Central Government to be laid before Parliament.–Every rule made by** the Central Government under this Act shall be laid as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or two or more successive sessions, and if, before the expiry of the session immediately ----- following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **111. Rules made by State Government to be laid before State Legislature.–Every rule made by** the State Government under this Act shall be laid, as soon as may be after it is made, before each House of the State Legislature where it consists of two Houses, or where such Legislature consists of one House, before that House. **112. Previous publication of rules made by Central and State Government.–The power to** make rules by the Central or State Government under this Act shall be subject to the condition of the rules, being made after previous publication. **113. Power to remove difficulties.–(1) If any difficulty arises in giving effect to the provisions of** this Part, the Central Government may, by order, make such provisions or give such directions not inconsistent with the provisions of this Act as may appear to it to be necessary or expedient for the removal of the difficulty: Provided that no such power shall be exercised after the expiry of a period of two years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **114. Repeal and saving.–(1) The Land Acquisition Act, 1894 (1 of 1894) is hereby repealed.** (2) Save as otherwise provided in this Act the repeal under sub-section (1) shall not be held to prejudice or affect the general application of section 6 of the General Clauses Act, 1897 (10 of 1897) with regard to the effect of repeals. ----- THE FIRST SCHEDULE [See section 30(2)] COMPENSATION FOR LAND OWNERS The following components shall constitute the minimum compensation package to be given to those whose land is acquired and to tenants referred to in clause (c) of section 3 in a proportion to be decided by the appropriate Government. Serial No. Component of compensation package in respect of land acquired under the Act Manner of determination of value Date of determination of value (1) (2) (3) (4) 1. Market value of land To be determined as provided under section 26. 2. Factor by which the market value is to be multiplied in the case of rural areas 3. Factor by which the market value is to be multiplied in the case of urban areas 4. Value of assets attached to land or building 1.00 (One) to 2.00 (Two) based on the distance of project from urban area, as may be notified by the appropriate Government. 1(One). To be determined as provided under section 29. 5. Solatium Equivalent to one hundred per cent. of the market value of land mentioned against serial number 1 multiplied by the factor specified against serial number 2 for rural areas or serial number 3 for urban areas plus value of assets attached to land or building against serial number 4 under column (2). 6. Final award in rural areas Market value of land mentioned against serial number 1 multiplied by the factor specified against serial number 2 plus value of assets attached to land or building mentioned against serial number 4 under column (2) plus solatium mentioned against serial number 5 under column (2). 7. Final award in urban areas Market value of land mentioned against serial number 1 multiplied by the factor specified against serial number 3 plus value of assets attached to land or building mentioned against serial number 4 under column (2) plus solatium mentioned against serial number 5 under column (2). 8. Other component, if any, to be included NOTE.–The date on which values mentioned under column (2) are determined should be indicated under column (4) against each serial number. ----- THE SECOND SCHEDULE [See sections 31(1), 38(1) and 105(3)] ELEMENTS OF REHABILITATION AND RESETTLEMENT ENTITLEMENTS FOR ALL THE AFFECTED FAMILIES (BOTH LAND OWNERS AND THE FAMILIES WHOSE LIVELIHOOD IS PRIMARILY DEPENDENT ON LAND ACQUIRED) IN ADDITION TO THOSE PROVIDED IN THE FIRST SCHEDULE. Serial No. Elements of Rehabilitation and Resettlement Entitlements Entitlement/provision Whether provided or not (if provided, details to be given) (1) (2) (3) (4) 1. Provision of housing units in case of displacement (1) If a house is lost in rural areas, a constructed house shall be provided as per the Indira Awas Yojana specifications. If a house is lost in urban areas, a constructed house shall be provided, which will be not less than 50 sqmts in plinth area. (2) The benefits listed above shall also be extended to any affected family which is without homestead land and which has been residing in the area continuously for a period of not less than three years preceding the date of notification of the affected area and which has been involuntarily displaced from such area: Provided that any such family in urban areas which opts not to take the house offered, shall get a one-time financial assistance for house construction, which shall not be less than one lakh fifty thousand rupees: Provided further that if any affected family in rural areas so prefers, the equivalent cost of the house may be offered in lieu of the constructed house: Provided also that no family affected by acquisition shall be given more than one house under the provisions of this Act. _Explanation.–The houses in urban area may, if_ necessary, be provided in multi-storied building complexes. 2. Land for Land In the case of irrigation project, as far as possible and in lieu of compensation to be paid for land acquired, each affected family owning agricultural land in the affected area and whose land has been acquired or lost, or who has, as a consequence of the acquisition or loss of land, been reduced to the status of a marginal farmer or landless, shall be allotted, in the name of each person included in the records of rights with regard to the affected family, a minimum of one acre of land in the command area of the project for which the land is acquired: Provided that in every project those persons losing land and belonging to the Scheduled Castes or the Scheduled Tribes will be provided land equivalent to land acquired or two and a one-half acres, whichever is lower. ----- (1) (2) (3) (4) 3. Offer forDeveloped Land In case the land is acquired for urbanisation purposes, twenty per cent. of the developed land will be reserved and offered to land owning project affected families, in proportion to the area of their land acquired and at a price equal to the cost of acquisition and the cost of development: Provided that in case the land owning project affected family wishes to avail of this offer, an equivalent amount will be deducted from the land acquisition compensation package payable to it. 4. Choice of Annuity or Employment 5. Subsistence grant fordisplaced families for a period of one year 6. Transportation cost for displaced families The appropriate Government shall ensure that the affected families are provided with the following options: (a) where jobs are created through the project, after providing suitable training and skill development in the required field, make provision for employment at a rate not lower than the minimum wages provided for in any other law for the time being in force, to at least one member per affected family in the project or arrange for a job in such other project as may be required; or (b) onetime payment of five lakhs rupees per affected family; or (c) annuity policies that shall pay not less than two thousand rupees per month per family for twenty years, with appropriate indexation to the Consumer Price Index for Agricultural Labourers. Each affected family which is displaced from the land acquired shall be given a monthly subsistence allowance equivalent to three thousand rupees per month for a period of one year from the date of award. In addition to this amount, the Scheduled Castes and the Scheduled Tribes displaced from Scheduled Areas shall receive an amount equivalent to fifty thousand rupees. In case of displacement from the Scheduled Areas, as far as possible, the affected families shall be relocated in a similar ecological zone, so as to preserve the economic opportunities, language, culture and community life of the tribal communities. Each affected family which is displaced shall get a onetime financial assistance of fifty thousand rupees as transportation cost for shifting of the family, building materials, belongings and cattle. 7. Cattle shed/Petty shops cost Each affected family having cattle or having a petty shop shall get one-time financial assistance of such amount as the appropriate Government may, by notification, specify subject to a minimum of twentyfive thousand rupees for construction of cattle shed or petty shop as the case may be. ----- (1) (2) (3) (4) 8. One-time grant to artisan, small traders and certain others Each affected family of an artisan, small trader or self-employed person or an affected family which owned nonagricultural land or commercial, industrial or institutional structure in the affected area, and which has been involuntarily displaced from the affected area due to land acquisition, shall get one-time financial assistance of such amount as the appropriate Government may, by notification, specify subject to a minimum of twenty-five thousand rupees. 9. Fishing rights In cases of irrigation or hydel projects, the affected families may be allowed fishing rights in the reservoirs, in such manner as may be prescribed by the appropriate Government. 10. One-time Resettlement Allowance 11. Stamp duty and registration fee Each affected family shall be given a one-time “Resettlement Allowance” of fifty thousand rupees only. (1) The stamp duty and other fees payable for registration of the land or house allotted to the affected families shall be borne by the Requiring Body. (2) The land for house allotted to the affected families shall be free from all encumbrances. (3) The land or house allotted may be in the joint names of wife and husband of the affected family. ----- THE THIRD SCHEDULE [See sections 32, 38(1) and 105(3)] PROVISION OF INFRASTRUCTURAL AMENITIES For resettlement of populations, the following infrastructural facilities and basic minimum amenities are to be provided at the cost of the Requisitioning Authority to ensure that the resettled population in the new village or colony can secure for themselves a reasonable standard of community life and can attempt to minimise the trauma involved in displacement. A reasonably habitable and planned settlement would have, as a minimum, the following facilities and resources, as appropriate: Serial No. Component of infrastructure amenities provided/proposed to be provided by the acquirer of land Details of infrastructure amenities provided by the acquirer of land (1) (2) (3) 1. Roads within the resettled villages and an all-weather road link to the nearest pucca road, passages and easement rights for all the resettled families be adequately arranged. 2. Proper drainage as well as sanitation plans executed before physical resettlement. 3. One or more assured sources of safe drinking water for each family as per the norms prescribed by the Government of India. 4. Provision of drinking water for cattle. 5. Grazing land as per proportion acceptable in the State. 6. A reasonable number of Fair Price Shops. 7. Panchayat Ghars, as appropriate. 8. Village level Post Offices, as appropriate, with facilities for opening saving accounts. 9. Appropriate seed-cum-fertilizer storage facility if needed. 10. Efforts must be made to provide basic irrigation facilities to the agricultural land allocated to the resettled families if not from the irrigation project, then by developing a cooperative or under some Government scheme or special assistance. 11. All new villages established for resettlement of the displaced persons shall be provided with suitable transport facility which must include public transport facilities through local bus services with the nearby growth centres/urban localities. 12. Burial or cremation ground, depending on the caste- communities at the site and their practices. 13. Facilities for sanitation, including individual toilet points. 14. Individual single electric connections (or connection through nonconventional sources of energy like solar energy), for each household and for public lighting. 15. Anganwadi’s providing child and mother supplemental nutritional services. 16. School as per the provisions of the Right of Children to Free and Compulsory Education Act, 2009 (35 of 2009); ----- (1) (2) (3) 17. Sub-health centre within two kilometres range. 18. Primary Health Centre as prescribed by the Government of India. 19. Playground for children. 20. One community centre for every hundred families. 21. Places of worship and chowpal/tree platform for every fifty families for community assembly, of numbers and dimensions consonant with the affected area. 22. Separate land must be earmarked for traditional tribal institutions. 23. The forest dweller families must be provided, where possible, with their forest rights on non-timber forest produce and common property resources, if available close to the new place of settlement and, in case any such family can continue their access or entry to such forest or common property in the area close to the place of eviction, they must continue to enjoy their earlier rights to the aforesaid sources of livelihood. 24. Appropriate security arrangements must be provided for the settlement, if needed. 25. Veterinary service centre as per norms. NOTE.– Details of each component of infrastructural amenities mentioned under column (2) against serial numbers 1 to 25 should be indicated by the acquirer of land under column (3). ----- THE FOURTH SCHEDULE (See section 105) LIST OF ENACTMENTS REGULATING LAND ACQUISITION AND REHABILITATION AND RESETTLEMENT 1. The Ancient Monuments and Archaeological Sites and Remains Act, 1958 (24 of 1958). 2. The Atomic Energy Act, 1962 (33 of 1962). 3. The Damodar Valley Corporation Act, 1948 (14 of 1948). 4. The Indian Tramways Act, 1886 (11 of 1886) 5. The Land Acquisition (Mines) Act, 1885 (18 of 1885). 6. The Metro Railways (Construction of Works) Act, 1978 (33 of 1978). 7. The National Highways Act, 1956 (48 of 1956). 8. The Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962 (50 of 1962). 9. The Requisitioning and Acquisition of Immovable Property Act, 1952 (30 of 1952). 10. The Resettlement of Displaced Persons (Land Acquisition) Act, 1948 (60 of 1948). 11. The Coal Bearing Areas Acquisition and Development Act, 1957 (20 of 1957). 12. The Electricity Act, 2003 (36 of 2003). 13. The Railways Act, 1989 (24 of 1989). # ––––––– ----- **STATE AMENDMENTS** **Maharashtra** After the Fourth Schedule to the principal Act, the following Schedule shall be added, namely: “THE FIFTH SCHEDULE (See section 105-A) LIST OF MAHARASHTRA ENACTMENTS REGULATING LAND ACQUISITION IN THE STATE OF MAHARASHTRA 1. The Maharashtra Highways Act (LV of 1955). 2. The Maharashtra Industrial Development Act, 1961 (Mah. III of 1962). 3. The Maharashtra Regional and Town Planning Act, 1966 (Mah. XXXVII of 1966). 4. The Maharashtra Housing and Area Development Act, 1976 (Mah. XXVIII of 1977).” [Vide Maharashtra Act 37 of 2018, sec. 12 (w.e.f. 26-4-2018).] -----

1-Jan-2014

01

The Lokpal and Lokayuktas Act, 2013

https://www.indiacode.nic.in/bitstream/123456789/2122/1/201401.pdf

central

# THE LOKPAL AND LOKAYUKTAS ACT, 2013 ____________ # ARRANGEMENT OF SECTIONS __________ PART I PRELIMINARY SECTIONS 1. Short title, extent, application and commencement. PART II LOKPAL FOR THE UNION CHAPTER I DEFINITIONS 2. Definitions. CHAPTER II ESTABLISHMENT OF LOKPAL 3. Establishment of Lokpal. 4. Appointment of Chairperson and Members on recommendations of Selection Committee. 5. Filling of vacancies of Chairperson or Members. 6. Term of office of Chairperson and Members. 7. Salary, allowances and other conditions of service of Chairperson and Members. 8. Restriction on employment by Chairperson and Members after ceasing to hold office. 9. Member to act as Chairperson or to discharge his functions in certain circumstances. 10. Secretary, other officers and staff of Lokpal. CHAPTER III INQUIRY WING 11. Inquiry Wing. CHAPTER IV PROSECUTION WING 12. Prosecution Wing. CHAPTER V EXPENSES OF LOKPAL TO BE CHARGED ON CONSOLIDATED FUND OF INDIA 13. Expenses of Lokpal to be charged on Consolidated Fund of India. CHAPTER VI JURISDICTION IN RESPECT OF INQUIRY 14. Jurisdiction of Lokpal to include Prime Minister, Ministers, members of Parliament, Groups A, B, C and D officers and officials of Central Government. 15. Matters pending before any court or committee or authority for inquiry not to be affected. 16. Constitution of benches of Lokpal. 1 ----- SECTIONS 17. Distribution of business amongst benches. 18. Power of Chairperson to transfer cases. 19. Decision to be by majority. CHAPTER VII PROCEDURE IN RESPECT OF PRELIMINARY INQUIRY AND INVESTIGATION 20. Provisions relating to complaints and preliminary inquiry and investigation. 21. Persons likely to be prejudicially affected to be heard. 22. Lokpal may require any public servant or any other person to furnish information, etc. 23. Power of Lokpal to grant sanction for initiating prosecution. 24. Action on investigation against public servant being Prime Minister, Ministers or members of Parliament. CHAPTER VIII POWERS OF LOKPAL 25. Supervisory powers of Lokpal. 26. Search and seizure. 27. Lokpal to have powers of civil court in certain cases. 28. Power of Lokpal to utilise services of officers of Central or State Government. 29. Provisional attachment of assets. 30. Confirmation of attachment of assets. 31. Confiscation of assets, proceeds, receipts and benefits arisen or procured by means of corruption in special circumstances. 32. Power of Lokpal to recommend transfer or suspension of public servant connected with allegation of corruption. 33. Power of Lokpal to give directions to prevent destruction of records during preliminary inquiry. 34. Power to delegate. CHAPTER IX SPECIAL COURTS 35. Special Courts to be constituted by Central Government. 36. Letter of request to a contracting State in certain cases. CHAPTER X COMPLAINTS AGAINST CHAIRPERSON, MEMBERS AND OFFICIALS OF LOKPAL 37. Removal and suspension of Chairperson and Members of Lokpal. 38. Complaints against officials of Lokpal. CHAPTER XI ASSESSMENT OF LOSS AND RECOVERY THEREOF BY SPECIAL COURT 39. Assessment of loss and recovery thereof by special court. CHAPTER XII FINANCE, ACCOUNTS AND AUDIT 40. Budget. 2 ----- SECTIONS 41. Grants by Central Government. 42. Annual statement of accounts. 43. Furnishing of returns, etc., to Central Government. CHAPTER XIII DECLARATION OF ASSETS 44. Declaration of assets. 45. Presumption as to acquisition of assets by corrupt means in certain cases. CHAPTER XIV OFFENCES AND PENALTIES 46. Prosecution for false complaint and payment of compensation, etc., to public servant. 47. False complaint made by society or association of persons or trust. CHAPTER XV MISCELLANEOUS 48. Reports of Lokpal. 49. Lokpal to function as appellate authority for appeals arising out of any other law for the time being in force. 50. Protection of action taken in good faith by any public servant. 51. Protection of action taken in good faith by others. 52. Members, officers and employees of Lokpal to be public servants. 53. Limitation to apply in certain cases. 54. Bar of jurisdiction. 55. Legal assistance. 56. Act to have overriding effect. 57. Provisions of this Act to be in addition of other laws. 58. Amendment of certain enactments. 59. Power to make rules. 60. Power of Lokpal to make regulations. 61. Laying of rules and regulations. 62. Power to remove difficulties. PART III ESTABLISHMENT OF THE LOKAYUKTA 63. Establishment of Lokayukta. THE SCHEDULE. 3 ----- # THE LOKPAL AND LOKAYUKTAS ACT, 2013 ACT NO. 1 OF 2014 [1st January, 2014.] # An Act to provide for the establishment of a body of Lokpal for the Union and Lokayukta for States to inquire into allegations of corruption against certain public functionaries and for matters connected therewith or incidental thereto. WHEREAS the Constitution of India established a Democratic Republic to ensure justice for all; AND WHEREAS India has ratified the United Nations Convention Against Corruption; AND WHEREAS the Government's commitment to clean and responsive governance has to be reflected in effective bodies to contain and punish acts of corruption; NOW, THEREFORE, it is expedient to enact a law, for more effective implementation of the said Convention and to provide for prompt and fair investigation and prosecution in cases of Corruption. BE it enacted by Parliament in the Sixty-fourth Year of the Republic of India as follows:— PART I PRELIMINARY **1. Short title, extent, application and commencement.—(1) This Act may be called the Lokpal and** Lokayuktas Act, 2013. (2) It extends to the whole of India. (3) It shall apply to public servants in and outside India. _(4) It shall come into force on such date[1] as the Central Government may, by notification in the_ Official Gazette, appoint. PART II LOKPAL FOR THE UNION CHAPTER I DEFINITIONS **2. Definitions.—(1) In this Act, unless the context otherwise requires,—** (a) "bench" means a bench of the Lokpal; (b) "Chairperson" means the Chairperson of the Lokpal; (c) "competent authority", in relation to— (i) the Prime Minister, means the House of the People; (ii) a member of the Council of Ministers, means the Prime Minister; (iii) a member of Parliament other than a Minister, means— _(A)_ in the case of a member of the Council of States, the Chairman of the Council; and _(B)_ in the case of a member of the House of the People, the Speaker of the House; (iv) an officer in the Ministry or Department of the Central Government, means the Minister in charge of the Ministry or Department under which the officer is serving; (v) a chairperson or members of any body or Board or corporation or authority or company or society or autonomous body (by whatever name called) established or constituted under any Act of Parliament or wholly or partly financed by the Central Government or controlled by it, means 1. 16th January, 2014, vide notification No. S.O. 119 (E), dated 16th January, 2014, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 4 ----- the Minister in charge of the administrative Ministry of such body or Board or corporation or authority or company or society or autonomous body; (vi) an officer of any body or Board or corporation or authority or company or society or autonomous body (by whatever name called) established or constituted under any Act of Parliament or wholly or partly financed by the Central Government or controlled by it, means the head of such body or Board or corporation or authority or company or society or autonomous body; (vii) in any other case not falling under sub-clauses (i) to (vi) above, means such Department or authority as the Central Government may, by notification, specify: Provided that if any person referred to in sub-clause (v) or sub-clause (vi) is also a member of Parliament, then, the competent authority shall be— (A) in case such member is a member of the Council of States, the Chairman of the Council; and (B) in case such member is a member of the House of the People, the Speaker of the House; (d) "Central Vigilance Commission" means the Central Vigilance Commission constituted under sub-section (1) of section 3 of the Central Vigilance Commission Act, 2003 (45 of 2003); (e) "complaint" means a complaint, made in such form as may be prescribed, alleging that a public servant has committed an offence punishable under the Prevention of Corruption Act, 1988 (49 of 1988); (f) "Delhi Special Police Establishment" means the Delhi Special Police Establishment constituted under sub-section (1) of section 2 of the Delhi Special Police Establishment Act, 1946 (25 of 1946); (g) "investigation" means an investigation as defined under clause (h) of section 2 of the Code of Criminal Procedure, 1973 (2 of 1974); (h) "Judicial Member" means a Judicial Member of the Lokpal; (i) "Lokpal" means the body established under section 3; (j) "Member" means a Member of the Lokpal; (k) "Minister" means a Union Minister but does not include the Prime Minister; (l) "notification" means notification published in the Official Gazette and the expression "notify" shall be construed accordingly; (m) "preliminary inquiry" means an inquiry conducted under this Act; (n) "prescribed" means prescribed by rules made under this Act; (o) "public servant" means a person referred to in clauses (a) to (h) of sub-section (1) of section 14 but does not include a public servant in respect of whom the jurisdiction is exercisable by any court or other authority under the Army Act, 1950 (45 of 1950), the Air Force Act, 1950 (46 of 1950), the Navy Act, 1957 (62 of 1957) and the Coast Guard Act, 1978 (30 of 1978) or the procedure is applicable to such public servant under those Acts; (p) "regulations" means regulations made under this Act; (q) "rules" means rules made under this Act; (r) "Schedule" means a Schedule appended to this Act; (s) "Special Court" means the court of a Special Judge appointed under sub-section (1) of section 3 of the Prevention of Corruption Act, 1988 (49 of 1988). (2) The words and expressions used herein and not defined in this Act but defined in the Prevention of Corruption Act, 1988 (49 of 1988), shall have the meanings respectively assigned to them in that Act. 5 ----- (3) Any reference in this Act to any other Act or provision thereof which is not in force in any area to which this Act applies shall be construed to have a reference to the corresponding Act or provision thereof in force in such area. CHAPTER II ESTABLISHMENT OF LOKPAL **3. Establishment of Lokpal.—(1) On and from the commencement of this Act, there shall be** established, for the purpose of this Act, a body to be called the "Lokpal". (2) The Lokpal shall consist of— (a) a Chairperson, who is or has been a Chief Justice of India or is or has been a Judge of the Supreme Court or an eminent person who fulfills the eligibility specified in clause (b) of sub-section (3); and (b) such number of Members, not exceeding eight out of whom fifty per cent. shall be Judicial Members: Provided that not less than fifty per cent. of the Members of the Lokpal shall be from amongst the persons belonging to the Scheduled Castes, the Scheduled Tribes, Other Backward Classes, Minorities and women. (3) A person shall be eligible to be appointed,— (a) as a Judicial Member if he is or has been a Judge of the Supreme Court or is or has been a Chief Justice of a High Court; (b) as a Member other than a Judicial Member, if he is a person of impeccable integrity and outstanding ability having special knowledge and expertise of not less than twenty-five years in the matters relating to anti-corruption policy, public administration, vigilance, finance including insurance and banking, law and management. (4) The Chairperson or a Member shall not be— (i) a member of Parliament or a member of the Legislature of any State or Union territory; (ii) a person convicted of any offence involving moral turptitude; (iii) a person of less than forty-five years of age, on the date of assuming office as the Chairperson or Member, as the case may be; (iv) a member of any Panchayat or Municipality; (v) a person who has been removed or dismissed from the service of the Union or a State, and shall not hold any office of trust or profit (other than his office as the Chairperson or a Member) or be affiliated with any political party or carry on any business or practise any profession and, accordingly, before he enters upon his office, a person appointed as the Chairperson or a Member, as the case may be, shall, if— (a) he holds any office of trust or profit, resign from such office; or (b) he is carrying on any business, sever his connection with the conduct and management of such business; or (c) he is practising any profession, cease to practise such profession. **4. Appointment of Chairperson and Members on recommendations of Selection** **Committee.—(1) The Chairperson and Members shall be appointed by the President after obtaining the** recommendations of a Selection Committee consisting of— (a) the Prime Minister—Chairperson; (b) the Speaker of the House of the People—Member; (c) the Leader of Opposition in the House of the People—Member; 6 ----- (d) the Chief Justice of India or a Judge of the Supreme Court nominated by him—Member; (e) one eminent jurist, as recommended by the Chairperson and Members referred to in clauses (a) to (d) above, to be nominated by the President—Member. (2) No appointment of a Chairperson or a Member shall be invalid merely by reason of any vacancy in the Selection Committee. (3) The Selection Committee shall for the purposes of selecting the Chairperson and Members of the Lokpal and for preparing a panel of persons to be considered for appointment as such, constitute a Search Committee consisting of at least seven persons of standing and having special knowledge and expertise in the matters relating to anti-corruption policy, public administration, vigilance, policy making, finance including insurance and banking, law and management or in any other matter which, in the opinion of the Selection Committee, may be useful in making the selection of the Chairperson and Members of the Lokpal: Provided that not less than fifty per cent. of the members of the Search Committee shall be from amongst the persons belonging to the Scheduled Castes, the Scheduled Tribes, Other Backward Classes, Minorities and women: Provided further that the Selection Committee may also consider any person other than the persons recommended by the Search Committee. (4) The Selection Committee shall regulate its own procedure in a transparent manner for selecting the Chairperson and Members of the Lokpal. (5) The term of the Search Committee referred to in sub-section (3), the fees and allowances payable to its members and the manner of selection of panel of names shall be such as may be prescribed. **5. Filling of vacancies of Chairperson or Members.—The President shall take or cause to be taken** all necessary steps for the appointment of a new Chairperson and Members at least three months before the expiry of the term of the Chairperson or Member, as the case may be, in accordance with the procedure laid down in this Act. **6. Term of office of Chairperson and Members.—The Chairperson and every Member shall, on the** recommendations of the Selection Committee, be appointed by the President by warrant under his hand and seal and hold office as such for a term of five years from the date on which he enters upon his office or until he attains the age of seventy years, whichever is earlier: Provided that he may— (a) by writing under his hand addressed to the President, resign his office; or (b) be removed from his office in the manner provided in section 37. **7. Salary, allowances and other conditions of service of Chairperson and Members.—The salary,** allowances and other conditions of service of— (i) the Chairperson shall be the same as those of the Chief Justice of India; (ii) other Members shall be the same as those of a Judge of the Supreme Court: Provided that if the Chairperson or a Member is, at the time of his appointment, in receipt of pension (other than disability pension) in respect of any previous service under the Government of India or under the Government of a State, his salary in respect of service as the Chairperson or, as the case may be, as a Member, be reduced— (a) by the amount of that pension; and (b) if he has, before such appointment, received, in lieu of a portion of the pension due to him in respect of such previous service, the commuted value thereof, by the amount of that portion of the pension: Provided further that the salary, allowances and pension payable to, and other conditions of service of, the Chairperson or a Member shall not be varied to his disadvantage after his appointment. 7 ----- **8. Restriction on employment by Chairperson and Members after ceasing to hold office.—(1)** On ceasing to hold office, the Chairperson and every Member shall be ineligible for— (i) reappointment as the Chairperson or a Member of the Lokpal; (ii) any diplomatic assignment, appointment as administrator of a Union territory and such other assignment or appointment which is required by law to be made by the President by warrant under his hand and seal; (iii) further employment to any other office of profit under the Government of India or the Government of a State; (iv) contesting any election of President or Vice-President or Member of either House of Parliament or Member of either House of a State Legislature or Municipality or Panchayat within a period of five years from the date of relinquishing the post. (2) Notwithstanding anything contained in sub-section (1), a Member shall be eligible to be appointed as a Chairperson, if his total tenure as Member and Chairperson does not exceed five years. _Explanation.—For the purposes of this section, it is hereby clarified that where the Member is_ appointed as the Chairperson, his term of office shall not be more than five years in aggregate as the Member and the Chairperson. **9. Member to act as Chairperson or to discharge his functions in certain circumstances.—(1) In** the event of occurrence of any vacancy in the office of the Chairperson by reason of his death, resignation or otherwise, the President may, by notification, authorise the senior-most Member to act as the Chairperson until the appointment of a new Chairperson to fill such vacancy. (2) When the Chairperson is unable to discharge his functions owing to absence on leave or otherwise, the senior-most Member available, as the President may, by notification, authorise in this behalf, shall discharge the functions of the Chairperson until the date on which the Chairperson resumes his duties. **10. Secretary, other officers and staff of Lokpal.—(1) There shall be a Secretary to the Lokpal in** the rank of Secretary to Government of India, who shall be appointed by the Chairperson from a panel of names sent by the Central Government. (2) There shall be a Director of Inquiry and a Director of Prosecution not below the rank of Additional Secretary to the Government of India or equivalent, who shall be appointed by the Chairperson from a panel of names sent by the Central Government. (3) The appointment of officers and other staff of the Lokpal shall be made by the Chairperson or such Member or officer of Lokpal as the Chairperson may direct: Provided that the President may by rule require that the appointment in respect of any post or posts as may be specified in the rule, shall be made after consultation with the Union Public Service Commission. (4) Subject to the provisions of any law made by Parliament, the conditions of service of Secretary and other officers and staff of the Lokpal shall be such as may be specified by regulations made by the Lokpal for the purpose: Provided that the regulations made under this sub-section shall, so far as they relate to salaries, allowances, leave or pensions, require the approval of the President. CHAPTER III INQUIRY WING **11. Inquiry Wing.—(1) Notwithstanding anything contained in any law for the time being in force,** the Lokpal shall constitute an Inquiry Wing headed by the Director of Inquiry for the purpose of conducting preliminary inquiry into any offence alleged to have been committed by a public servant punishable under the Prevention of Corruption Act, 1988 (49 of 1988): Provided that till such time the Inquiry Wing is constituted by the Lokpal, the Central Government shall make available such number of officers and other staff from its Ministries or Departments, as may be required by the Lokpal, for conducting preliminary inquiries under this Act. 8 ----- (2) For the purposes of assisting the Lokpal in conducting a preliminary inquiry under this Act, the officers of the Inquiry Wing not below the rank of the Under Secretary to the Government of India, shall have the same powers as are conferred upon the Inquiry Wing of the Lokpal under section 27. CHAPTER IV PROSECUTION WING **12. Prosecution Wing.—(1) The Lokpal shall, by notification, constitute a Prosecution Wing headed** by the Director of Prosecution for the purpose of prosecution of public servants in relation to any complaint by the Lokpal under this Act: Provided that till such time the Prosecution Wing is constituted by the Lokpal, the Central Government shall make available such number of officers and other staff from its Ministries or Departments, as may be required by the Lokpal, for conducting prosecution under this Act. (2) The Director of Prosecution shall, after having been so directed by the Lokpal, file a case in accordance with the findings of investigation report, before the Special Court and take all necessary steps in respect of the prosecution of public servants in relation to any offence punishable under the Prevention of Corruption Act, 1988 (49 of 1988). (3) The case under sub-section (2), shall be deemed to be a report, filed on completion of investigation, referred to in section 173 of the Code of Criminal Procedure, 1973 (2 of 1974). CHAPTER V EXPENSES OF LOKPAL TO BE CHARGED ON CONSOLIDATED FUND OF INDIA **13. Expenses of Lokpal to be charged on Consolidated Fund of India.—The administrative** expenses of the Lokpal, including all salaries, allowances and pensions payable to or in respect of the Chairperson, Members or Secretary or other officers or staff of the Lokpal, shall be charged upon the Consolidated Fund of India and any fees or other moneys taken by the Lokpal shall form part of that Fund. CHAPTER VI JURISDICTION IN RESPECT OF INQUIRY **14. Jurisdiction of Lokpal to include Prime Minister, Ministers, members of Parliament,** **Groups A, B, C and D officers and officials of Central Government.—(1) Subject to the other** provisions of this Act, the Lokpal shall inquire or cause an inquiry to be conducted into any matter involved in, or arising from, or connected with, any allegation of corruption made in a complaint in respect of the following, namely:— (a) any person who is or has been a Prime Minister: Provided that the Lokpal shall not inquire into any matter involved in, or arising from, or connected with, any such allegation of corruption against the Prime Minister,— (i) in so far as it relates to international relations, external and internal security, public order, atomic energy and space; (ii) unless a full bench of the Lokpal consisting of its Chairperson and all Members considers the initiation of inquiry and at least two-thirds of its Members approves of such inquiry: Provided further that any such inquiry shall be held _in camera_ and if the Lokpal comes to the conclusion that the complaint deserves to be dismissed, the records of the inquiry shall not be published or made available to anyone; (b) any person who is or has been a Minister of the Union; (c) any person who is or has been a member of either House of Parliament; (d) any Group 'A' or Group 'B' officer or equivalent or above, from amongst the public servants defined in sub-clauses (i) and (ii) of clause (c) of section 2 of the Prevention of Corruption Act, 1988 (49 of 1988) when serving or who has served, in connection with the affairs of the Union; 9 ----- (e) any Group 'C' or Group 'D' official or equivalent, from amongst the public servants defined in sub-clauses (i) and (ii) of clause (c) of section 2 of the Prevention of Corruption Act, 1988 (49 of 1988) when serving or who has served in connection with the affairs of the Union subject to the provision of sub-section (1) of section 20; (f) any person who is or has been a chairperson or member or officer or employee in any body or Board or corporation or authority or company or society or trust or autonomous body (by whatever name called) established by an Act of Parliament or wholly or partly financed by the Central Government or controlled by it: Provided that in respect of such officers referred to in clause (d) who have served in connection with the affairs of the Union or in any body or Board or corporation or authority or company or society or trust or autonomous body referred to in clause (e) but are working in connection with the affairs of the State or in any body or Board or corporation or authority or company or society or trust or autonomous body (by whatever name called) established by an Act of the State Legislature or wholly or partly financed by the State Government or controlled by it, the Lokpal and the officers of its Inquiry Wing or Prosecution Wing shall have jurisdiction under this Act in respect of such officers only after obtaining the consent of the concerned State Government; (g) any person who is or has been a director, manager, secretary or other officer of every other society or association of persons or trust (whether registered under any law for the time being in force or not), by whatever name called, wholly or partly financed by the Government and the annual income of which exceeds such amount as the Central Government may, by notification, specify; (h) any person who is or has been a director, manager, secretary or other officer of every other society or association of persons or trust (whether registered under any law for the time being in force or not) in receipt of any donation from any foreign source under the Foreign Contribution (Regulation) Act, 2010 (42 of 2010) in excess of ten lakh rupees in a year or such higher amount as the Central Government may, by notification, specify. _Explanation.—For the purpose of clauses (f) and (g), it is hereby clarified that any entity or_ institution, by whatever name called, corporate, society, trust, association of persons, partnership, sole proprietorship, limited liability partnership (whether registered under any law for the time being in force or not), shall be the entities covered in those clauses: Provided that any person referred to in this clause shall be deemed to be a public servant under clause (c) of section 2 of the Prevention of Corruption Act, 1988 (49 of 1988) and the provisions of that Act shall apply accordingly. (2) Notwithstanding anything contained in sub-section (1), the Lokpal shall not inquire into any matter involved in, or arising from, or connected with, any such allegation of corruption against any member of either House of Parliament in respect of anything said or a vote given by him in Parliament or any committee thereof covered under the provisions contained in clause (2) of article 105 of the Constitution. (3) The Lokpal may inquire into any act or conduct of any person other than those referred to in sub-section (1), if such person is involved in the act of abetting, bribe giving or bribe taking or conspiracy relating to any allegation of corruption under the Prevention of Corruption Act, 1988 (49 of 1988) against a person referred to in sub-section (1): Provided that no action under this section shall be taken in case of a person serving in connection with the affairs of a State, without the consent of the State Government. (4) No matter in respect of which a complaint has been made to the Lokpal under this Act, shall be referred for inquiry under the Commissions of Inquiry Act, 1952 (60 of 1952). _Explanation.—For the removal of doubts, it is hereby declared that a complaint under this Act shall_ only relate to a period during which the public servant was holding or serving in that capacity. **15. Matters pending before any court or committee or authority for inquiry not to be** **affected.—In case any matter or proceeding related to allegation of corruption under the Prevention** of Corruption Act, 1988 (49 of 1988) has been pending before any court or committee of either House 10 ----- of Parliament or before any other authority prior to commencement of this Act or prior to commencement of any inquiry after the commencement of this Act, such matter or proceeding shall be continued before such court, committee or authority. **16. Constitution of benches of Lokpal.—(1) Subject to the provisions of this Act,—** (a) the jurisdiction of the Lokpal may be exercised by benches thereof; (b) a bench may be constituted by the Chairperson with two or more Members as the Chairperson may deem fit; (c) every bench shall ordinarily consist of at least one Judicial Member; (d) where a bench consists of the Chairperson, such bench shall be presided over by the Chairperson; (e) where a bench consists of a Judicial Member, and a non-Judicial Member, not being the Chairperson, such bench shall be presided over by the Judicial Member; (f) the benches of the Lokpal shall ordinarily sit at New Delhi and at such other places as the Lokpal may, by regulations, specify. (2) The Lokpal shall notify the areas in relation to which each bench of the Lokpal may exercise jurisdiction. (3) Notwithstanding anything contained in sub-section (2), the Chairperson shall have the power to constitute or reconstitute benches from time to time. (4) If at any stage of the hearing of any case or matter it appears to the Chairperson or a Member that the case or matter is of such nature that it ought to be heard by a bench consisting of three or more Members, the case or matter may be transferred by the Chairperson or, as the case may be, referred to him for transfer, to such bench as the Chairperson may deem fit. **17. Distribution of business amongst benches.—Where benches are constituted, the Chairperson** may, from time to time, by notification, make provisions as to the distribution of the business of the Lokpal amongst the benches and also provide for the matters which may be dealt with by each bench. **18. Power of Chairperson to transfer cases.—On an application for transfer made by the** complainant or the public servant, the Chairperson, after giving an opportunity of being heard to the complainant or the public servant, as the case may be, may transfer any case pending before one bench for disposal to any other bench. **19. Decision to be by majority.—If the Members of a bench consisting of an even number of** Members differ in opinion on any point, they shall state the point or points on which they differ, and make a reference to the Chairperson who shall either hear the point or points himself or refer the case for hearing on such point or points by one or more of the other Members of the Lokpal and such point or points shall be decided according to the opinion of the majority of the Members of the Lokpal who have heard the case, including those who first heard it. CHAPTER VII PROCEDURE IN RESPECT OF PRELIMINARY INQUIRY AND INVESTIGATION **20. Provisions relating to complaints and preliminary inquiry and investigation.—(1) The** Lokpal on receipt of a complaint, if it decides to proceed further, may order— (a) preliminary inquiry against any public servant by its Inquiry Wing or any agency (including the Delhi Special Police Establishment) to ascertain whether there exists a _prima facie_ case for proceeding in the matter; or (b) investigation by any agency (including the Delhi Special Police Establishment) when there exists a prima facie case: Provided that the Lokpal shall if it has decided to proceed with the preliminary inquiry, by a general or special order, refer the complaints or a category of complaints or a complaint received by it in respect of public servants belonging to Group A or Group B or Group C or Group D to the Central Vigilance 11 ----- Commission constituted under sub-section (1) of section 3 of the Central Vigilance Commission Act, 2003 (45 of 2003): Provided further that the Central Vigilance Commission in respect of complaints referred to it under the first proviso, after making preliminary inquiry in respect of public servants belonging to Group A and Group B, shall submit its report to the Lokpal in accordance with the provisions contained in sub-sections (2) and (4) and in case of public servants belonging to Group C and Group D, the Commission shall proceed in accordance with the provisions of the Central Vigilance Commission Act, 2003 (45 of 2003): Provided also that before ordering an investigation under clause (b), the Lokpal shall call for the explanation of the public servant so as to determine whether there exists a _prima facie_ case for investigation: Provided also that the seeking of explanation from the public servant before an investigation shall not interfere with the search and seizure, if any, required to be undertaken by any agency (including the Delhi Special Police Establishment) under this Act. (2) During the preliminary inquiry referred to in sub-section (1), the Inquiry Wing or any agency (including the Delhi Special Police Establishment) shall conduct a preliminary inquiry and on the basis of material, information and documents collected seek the comments on the allegations made in the complaint from the public servant and the competent authority and after obtaining the comments of the concerned public servant and the competent authority, submit, within sixty days from the date of receipt of the reference, a report to the Lokpal. (3) A bench consisting of not less than three Members of the Lokpal shall consider every report received under sub-section (2) from the Inquiry Wing or any agency (including the Delhi Special Police Establishment), and after giving an opportunity of being heard to the public servant, decide whether there exists a prima facie case, and proceed with one or more of the following actions, namely:— (a) investigation by any agency or the Delhi Special Police Establishment, as the case may be; (b) initiation of the departmental proceedings or any other appropriate action against the concerned public servants by the competent authority; (c) closure of the proceedings against the public servant and to proceed against the complainant under section 46. (4) Every preliminary inquiry referred to in sub-section (1) shall ordinarily be completed within a period of ninety days and for reasons to be recorded in writing, within a further period of ninety days from the date of receipt of the complaint. (5) In case the Lokpal decides to proceed to investigate into the complaint, it shall direct any agency (including the Delhi Special Police Establishment) to carry out the investigation as expeditiously as possible and complete the investigation within a period of six months from the date of its order: Provided that the Lokpal may extend the said period by a further period not exceeding of six months at a time for the reasons to be recorded in writing. (6) Notwithstanding anything contained in section 173 of the Code of Criminal Procedure, 1973 (2 of 1974), any agency (including the Delhi Special Police Establishment) shall, in respect of cases referred to it by the Lokpal, submit the investigation report under that section to the court having jurisdiction and forward a copy thereof to the Lokpal. (7) A bench consisting of not less than three Members of the Lokpal shall consider every report received by it under sub-section (6) from any agency (including the Delhi Special Police Establishment) and after obtaining the comments of the competent authority and the public servant may— (a) grant sanction to its Prosecution Wing or investigating agency to file charge-sheet or direct the closure of report before the Special Court against the public servant; (b) direct the competent authority to initiate the departmental proceedings or any other appropriate action against the concerned public servant. (8) The Lokpal may, after taking a decision under sub-section (7) on the filing of the charge-sheet, direct its Prosecution Wing or any investigating agency (including the Delhi Special Police 12 ----- Establishment) to initiate prosecution in the Special Court in respect of the cases investigated by the agency. (9) The Lokpal may, during the preliminary inquiry or the investigation, as the case may be, pass appropriate orders for the safe custody of the documents relevant to the preliminary inquiry or, as the case may be, investigation as it deems fit. (10) The website of the Lokpal shall, from time to time and in such manner as may be specified by regulations, display to the public, the status of number of complaints pending before it or disposed of by it. (11) The Lokpal may retain the original records and evidences which are likely to be required in the process of preliminary inquiry or investigation or conduct of a case by it or by the Special Court. (12) Save as otherwise provided, the manner and procedure of conducting a preliminary inquiry or investigation (including such material and documents to be made available to the public servant) under this Act, shall be such as may be specified by regulations. **21. Persons likely to be prejudicially affected to be heard.—If, at any stage of the proceeding, the** Lokpal— (a) considers it necessary to inquire into the conduct of any person other than the accused; or (b) is of opinion that the reputation of any person other than an accused is likely to be prejudicially affected by the preliminary inquiry, the Lokpal shall give to that person a reasonable opportunity of being heard in the preliminary inquiry and to produce evidence in his defence, consistent with the principles of natural justice. **22. Lokpal may require any public servant or any other person to furnish information, etc.—** Subject to the provisions of this Act, for the purpose of any preliminary inquiry or investigation, the Lokpal or the investigating agency, as the case may be, may require any public servant or any other person who, in its opinion, is able to furnish information or produce documents relevant to such preliminary inquiry or investigation, to furnish any such information or produce any such document. **23. Power of Lokpal to grant sanction for initiating prosecution.—(1) Notwithstanding anything** contained in section 197 of the Code of Criminal Procedure, 1973 (2 of 1974) or section 6A of the Delhi Special Police Establishment Act, 1946 (25 of 1946) or section 19 of the Prevention of Corruption Act, 1988 (49 of 1988), the Lokpal shall have the power to grant sanction for prosecution under clause (a) of sub-section (7) of section 20. (2) No prosecution under sub-section (1) shall be initiated against any public servant accused of any offence alleged to have been committed by him while acting or purporting to act in the discharge of his official duty, and no court shall take cognizance of such offence except with the previous sanction of the Lokpal. (3) Nothing contained in sub-sections (1) and (2) shall apply in respect of the persons holding office in pursuance of the provisions of the Constitution and in respect of which a procedure for removal of such person has been specified therein. (4) The provisions contained in sub-sections (1), (2) and (3) shall be without prejudice to the generality of the provisions contained in article 311 and sub-clause (c) of clause (3) of article 320 of the Constitution. **24. Action on investigation against public servant being Prime Minister, Ministers or members** **of Parliament.—Where, after the conclusion of the investigation, the findings of the Lokpal disclose the** commission of an offence under the Prevention of Corruption Act, 1988 (49 of 1988) by a public servant referred to in clause (a) or clause (b) or clause (c) of sub-section (1) of section 14, the Lokpal may file a case in the Special Court and shall send a copy of the report together with its findings to the competent authority. 13 ----- CHAPTER VIII POWERS OF LOKPAL **25. Supervisory powers of Lokpal.—(1) The Lokpal shall, notwithstanding anything contained in** section 4 of the Delhi Special Police Establishment Act, 1946 (25 of 1946) and section 8 of the Central Vigilance Commission Act, 2003 (45 of 2003), have the powers of superintendence over, and to give direction to the Delhi Special Police Establishment in respect of the matters referred by the Lokpal for preliminary inquiry or investigation to the Delhi Special Police Establishment under this Act: Provided that while exercising powers of superintendence or giving direction under this sub-section, the Lokpal shall not exercise powers in such a manner so as to require any agency (including the Delhi Special Police Establishment) to whom the investigation has been given, to investigate and dispose of any case in a particular manner. (2) The Central Vigilance Commission shall send a statement, at such interval as the Lokpal may direct, to the Lokpal in respect of action taken on complaints referred to it under the second proviso to sub-section (1) of section 20 and on receipt of such statement, the Lokpal may issue guidelines for effective and expeditious disposal of such cases. (3) Any officer of the Delhi Special Police Establishment investigating a case referred to it by the Lokpal, shall not be transferred without the approval of the Lokpal. (4) The Delhi Special Police Establishment may, with the consent of the Lokpal, appoint a panel of Advocates, other than the Government Advocates, for conducting the cases referred to it by the Lokpal. (5) The Central Government may from time to time make available such funds as may be required by the Director of the Delhi Special Police Establishment for conducting effective investigation into the matters referred to it by the Lokpal and the Director shall be responsible for the expenditure incurred in conducting such investigation. **26. Search and seizure.—(1) If the Lokpal has reason to believe that any document which, in its** opinion, shall be useful for, or relevant to, any investigation under this Act, are secreted in any place, it may authorise any agency (including the Delhi Special Police Establishment) to whom the investigation has been given to search for and to seize such documents. (2) If the Lokpal is satisfied that any document seized under sub-section (1) may be used as evidence for the purpose of any investigation under this Act and that it shall be necessary to retain the document in its custody or in the custody of such officer as may be authorised, it may so retain or direct such authorised officer to retain such document till the completion of such investigation: Provided that where any document is required to be returned, the Lokpal or the authorised officer may return the same after retaining copies of such document duly authenticated. **27. Lokpal to have powers of civil court in certain cases.—(1) Subject to the provisions of this** section, for the purpose of any preliminary inquiry, the Inquiry Wing of the Lokpal shall have all the powers of a civil court, under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit in respect of the following matters, namely:— (i) summoning and enforcing the attendance of any person and examining him on oath; (ii) requiring the discovery and production of any document; (iii) receiving evidence on affidavits; (iv) requisitioning any public record or copy thereof from any court or office; (v) issuing commissions for the examination of witnesses or documents: Provided that such commission, in case of a witness, shall be issued only where the witness, in the opinion of the Lokpal, is not in a position to attend the proceeding before the Lokpal; and (vi) such other matters as may be prescribed. (2) Any proceeding before the Lokpal shall be deemed to be a judicial proceeding within the meaning of section 193 of the Indian Penal Code (45 of 1860). 14 ----- **28. Power of Lokpal to utilise services of officers of Central or State Government.—(1) The** Lokpal may, for the purpose of conducting any preliminary inquiry or investigation, utilise the services of any officer or organisation or investigating agency of the Central Government or any State Government, as the case may be. (2) For the purpose of preliminary inquiry or investigating into any matter pertaining to such inquiry or investigation, any officer or organisation or agency whose services are utilised under sub-section (1) may, subject to the superintendence and direction of the Lokpal,— (a) summon and enforce the attendance of any person and examine him; (b) require the discovery and production of any document; and (c) requisition any public record or copy thereof from any office. (3) The officer or organisation or agency whose services are utilised under sub-section (2) shall inquire or, as the case may be, investigate into any matter pertaining to the preliminary inquiry or investigation and submit a report thereon to the Lokpal within such period as may be specified by it in this behalf. **29. Provisional attachment of assets.—(1) Where the Lokpal or any officer authorised by it in this** behalf, has reason to believe, the reason for such belief to be recorded in writing, on the basis of material in his possession, that— (a) any person is in possession of any proceeds of corruption; (b) such person is accused of having committed an offence relating to corruption; and (c) such proceeds of offence are likely to be concealed, transferred or dealt with in any manner which may result in frustrating any proceedings relating to confiscation of such proceeds of offence, the Lokpal or the authorised officer may, by order in writing, provisionally attach such property for a period not exceeding ninety days from the date of the order, in the manner provided in the Second Schedule to the Income-tax Act, 1961 (43 of 1961) and the Lokpal and the officer shall be deemed to be an officer under sub-rule (e) of rule 1 of that Schedule. (2) The Lokpal or the officer authorised in this behalf shall, immediately after attachment under sub-section (1), forward a copy of the order, along with the material in his possession, referred to in that sub-section, to the Special Court, in a sealed envelope, in the manner as may be prescribed and such Court may extend the order of attachment and keep such material for such period as the Court may deem fit. (3) Every order of attachment made under sub-section (1) shall cease to have effect after the expiry of the period specified in that sub-section or after the expiry of the period as directed by the Special Court under sub-section (2). (4) Nothing in this section shall prevent the person interested in the enjoyment of the immovable property attached under sub-section (1) or sub-section (2), from such enjoyment. _Explanation.—For the purposes of this sub-section, "person interested", in relation to any immovable_ property, includes all persons claiming or entitled to claim any interest in the property. **30. Confirmation of attachment of assets.—(1) The Lokpal, when it provisionally attaches any** property under sub-section (1) of section 29 shall, within a period of thirty days of such attachment, direct its Prosecution Wing to file an application stating the facts of such attachment before the Special Court and make a prayer for confirmation of attachment of the property till completion of the proceedings against the public servant in the Special Court. (2) The Special Court may, if it is of the opinion that the property provisionally attached had been acquired through corrupt means, make an order for confirmation of attachment of such property till the completion of the proceedings against the public servant in the Special Court. (3) If the public servant is subsequently acquitted of the charges framed against him, the property, subject to the orders of the Special Court, shall be restored to the concerned public servant along with benefits from such property as might have accrued during the period of attachment. 15 ----- (4) If the public servant is subsequently convicted of the charges of corruption, the proceeds relatable to the offence under the Prevention of Corruption Act, 1988 (49 of 1988) shall be confiscated and vest in the Central Government free from any encumbrance or leasehold interest excluding any debt due to any bank or financial institution. _Explanation.—For the purposes of this sub-section, the expressions "bank", "debt" and "financial_ institution" shall have the meanings respectively assigned to them in clauses (d), (g) and (h) of section 2 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (51 of 1993). **31. Confiscation of assets, proceeds, receipts and benefits arisen or procured by means of** **corruption in special circumstances.—(1) Without prejudice to the provisions of sections 29 and 30,** where the Special Court, on the basis of prima facie evidence, has reason to believe or is satisfied that the assets, proceeds, receipts and benefits, by whatever name called, have arisen or procured by means of corruption by the public servant, it may authorise the confiscation of such assets, proceeds, receipts and benefits till his acquittal. (2) Where an order of confiscation made under sub-section (1) is modified or annulled by the High Court or where the public servant is acquitted by the Special Court, the assets, proceeds, receipts and benefits, confiscated under sub-section (1) shall be returned to such public servant, and in case it is not possible for any reason to return the assets, proceeds, receipts and benefits, such public servant shall be paid the price thereof including the money so confiscated with interest at the rate of five per cent. per annum thereon calculated from the date of confiscation. **32. Power of Lokpal to recommend transfer or suspension of public servant connected with** **allegation of corruption.—(1) Where the Lokpal, while making a preliminary inquiry into allegations of** corruption, is prima facie satisfied, on the basis of evidence available,— (i) that the continuance of the public servant referred to in clause (d) or clause (e) or clause (f) of sub-section (1) of section 14 in his post while conducting the preliminary inquiry is likely to affect such preliminary inquiry adversely; or (ii) such public servant is likely to destroy or in any way tamper with the evidence or influence witnesses, then, the Lokpal may recommend to the Central Government for transfer or suspension of such public servant from the post held by him till such period as may be specified in the order. (2) The Central Government shall ordinarily accept the recommendation of the Lokpal made under sub-section (1), except for the reasons to be recorded in writing in a case where it is not feasible to do so for administrative reasons. **33. Power of Lokpal to give directions to prevent destruction of records during preliminary** **inquiry.—The Lokpal may, in the discharge of its functions under this Act, issue appropriate directions** to a public servant entrusted with the preparation or custody of any document or record— (a) to protect such document or record from destruction or damage; or (b) to prevent the public servant from altering or secreting such document or record; or (c) to prevent the public servant from transferring or alienating any assets allegedly acquired by him through corrupt means. **34. Power to delegate.—The Lokpal may, by general or special order in writing, and subject to such** conditions and limitations as may be specified therein, direct that any administrative or financial power conferred on it may also be exercised or discharged by such of its Members or officers or employees as may be specified in the order. CHAPTER IX SPECIAL COURTS **35. Special Courts to be constituted by Central Government.—(1) The Central Government shall** constitute such number of Special Courts, as recommended by the Lokpal, to hear and decide the cases arising out of the Prevention of Corruption Act, 1988 (49 of 1988) or under this Act. 16 ----- (2) The Special Courts constituted under sub-section (1) shall ensure completion of each trial within a period of one year from the date of filing of the case in the Court: Provided that in case the trial cannot be completed within a period of one year, the Special Court shall record reasons therefore and complete the trial within a further period of not more than three months or such further periods not exceeding three months each, for reasons to be recorded in writing before the end of each such three months period, but not exceeding a total period of two years. **36. Letter of request to a contracting State in certain cases.—(1) Notwithstanding anything** contained in this Act or the Code of Criminal Procedure, 1973 (2 of 1974) if, in the course of an preliminary inquiry or investigation into an offence or other proceeding under this Act, an application is made to a Special Court by an officer of the Lokpal authorised in this behalf that any evidence is required in connection with the preliminary inquiry or investigation into an offence or proceeding under this Act and he is of the opinion that such evidence may be available in any place in a contracting State, and the Special Court, on being satisfied that such evidence is required in connection with the preliminary inquiry or investigation into an offence or proceeding under this Act, may issue a letter of request to a court or an authority in the contracting State competent to deal with such request to— (i) examine the facts and circumstances of the case; (ii) take such steps as the Special Court may specify in such letter of request; and (iii) forward all the evidence so taken or collected to the Special Court issuing such letter of request. (2) The letter of request shall be transmitted in such manner as the Central Government may prescribe in this behalf. (3) Every statement recorded or document or thing received under sub-section (1) shall be deemed to be evidence collected during the course of the preliminary inquiry or investigation. CHAPTER X COMPLAINTS AGAINST CHAIRPERSON, MEMBERS AND OFFICIALS OF LOKPAL **37. Removal and suspension of Chairperson and Members of Lokpal.—(1) The Lokpal shall not** inquire into any complaint made against the Chairperson or any Member. (2) Subject to the provisions of sub-section (4), the Chairperson or any Member shall be removed from his office by order of the President on grounds of misbehaviour after the Supreme Court, on a reference being made to it by the President on a petition signed by at least one hundred Members of Parliament has, on an inquiry held in accordance with the procedure prescribed in that behalf, reported that the Chairperson or such Member, as the case may be, ought to be removed on such ground. (3) The President may suspend from office the Chairperson or any Member in respect of whom a reference has been made to the Supreme Court under sub-section (2), on receipt of the recommendation or interim order made by the Supreme Court in this regard until the President has passed orders on receipt of the final report of the Supreme Court on such reference. (4) Notwithstanding anything contained in sub-section (2), the President may, by order, remove from the office, the Chairperson or any Member if the Chairperson or such Member, as the case may be,— (a) is adjudged an insolvent; or (b) engages, during his term of office, in any paid employment outside the duties of his office; or (c) is, in the opinion of the President, unfit to continue in office by reason of infirmity of mind or body. (5) If the Chairperson or any Member is, or becomes, in any way concerned or interested in any contract or agreement made by or on behalf of the Government of India or the Government of a State or participates in any way in the profit thereof or in any benefit or emolument arising therefrom otherwise than as a member and in common with the other members of an incorporated company, he shall, for the purposes of sub-section (2), be deemed to be guilty of misbehaviour. 17 ----- **38. Complaints against officials of Lokpal.—(1) Every complaint of allegation or wrongdoing made** against any officer or employee or agency (including the Delhi Special Police Establishment), under or associated with the Lokpal for an offence punishable under the Prevention of Corruption Act, 1988 (49 of 1988) shall be dealt with in accordance with the provisions of this section. (2) The Lokpal shall complete the inquiry into the complaint or allegation made within a period of thirty days from the date of its receipt. (3) While making an inquiry into the complaint against any officer or employee of the Lokpal or agency engaged or associated with the Lokpal, if it is _prima facie_ satisfied on the basis of evidence available, that— (a) continuance of such officer or employee of the Lokpal or agency engaged or associated in his post while conducting the inquiry is likely to affect such inquiry adversely; or (b) an officer or employee of the Lokpal or agency engaged or associated is likely to destroy or in any way tamper with the evidence or influence witnesses, then, the Lokpal may, by order, suspend such officer or employee of the Lokpal or divest such agency engaged or associated with the Lokpal of all powers and responsibilities hereto before exercised by it. (4) On the completion of the inquiry, if the Lokpal is satisfied that there is prima facie evidence of the commission of an offence under the Prevention of Corruption Act, 1988 (49 of 1988) or of any wrongdoing, it shall, within a period of fifteen days of the completion of such inquiry, order to prosecute such officer or employee of the Lokpal or such officer, employee, agency engaged or associated with the Lokpal and initiate disciplinary proceedings against the official concerned: Provided that no such order shall be passed without giving such officer or employee of the Lokpal, such officer, employee, agency engaged or associated, a reasonable opportunity of being heard. CHAPTER XI ASSESSMENT OF LOSS AND RECOVERY THEREOF BY SPECIAL COURT **39. Assessment of loss and recovery thereof by Special Court.—If any public servant is convicted** of an offence under the Prevention of Corruption Act, 1988 (49 of 1988) by the special Court, notwithstanding and without prejudice to any law for the time being in force, it may make an assessment of loss, if any, caused to the public exchequer on account of the actions or decisions of such public servant not taken in good faith and for which he stands convicted, and may order recovery of such loss, if possible or quantifiable, from such public servant so convicted: Provided that if the Special Court, for reasons to be recorded in writing, comes to the conclusion that the loss caused was pursuant to a conspiracy with the beneficiary or beneficiaries of actions or decisions of the public servant so convicted, then such loss may, if assessed and quantifiable under this section, also be recovered from such beneficiary or beneficiaries proportionately. CHAPTER XII FINANCE, ACCOUNTS AND AUDIT **40. Budget.—The Lokpal shall prepare, in such form and at such time in each financial year as may** be prescribed, its budget for the next financial year, showing the estimated receipts and expenditure of the Lokpal and forward the same to the Central Government for information. **41. Grants by Central Government.—The Central Government may, after due appropriation made** by Parliament by law in this behalf, make to the Lokpal grants of such sums of money as are required to be paid for the salaries and allowances payable to the Chairperson and Members and the administrative expenses, including the salaries and allowances and pension payable to or in respect of officers and other employees of the Lokpal. **42. Annual statement of accounts.—(1) The Lokpal shall maintain proper accounts and other** relevant records and prepare an annual statement of accounts in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India. 18 ----- (2) The accounts of the Lokpal shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him. (3) The Comptroller and Auditor-General of India or any person appointed by him in connection with the audit of the accounts of the Lokpal under this Act shall have the same rights, privileges and authority in connection with such audit, as the Comptroller and Auditor-General of India generally has, in connection with the audit of the Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Lokpal. (4) The accounts of the Lokpal, as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf, together with the audit report thereon, shall be forwarded annually to the Central Government and the Central Government shall cause the same to be laid before each House of Parliament. **43. Furnishing of returns, etc., to Central Government.—The Lokpal shall furnish to the Central** Government, at such time and in such form and manner as may be prescribed or as the Central Government may request, such returns and statements and such particulars in regard to any matter under the jurisdiction of the Lokpal, as the Central Government may, from time to time, require. CHAPTER XIII DECLARATION OF ASSETS **1[44. Declaration of assets.—On and from the date of commencement of this Act, every public** servant shall make a declaration of his assets and liabilities in such form and manner as may be prescribed.] **45. Presumption as to acquisition of assets by corrupt means in certain cases.—If any public** servant wilfully or for reasons which are not justifiable, fails to— (a) to declare his assets; or (b) gives misleading information in respect of such assets and is found to be in possession of assets not disclosed or in respect of which misleading information was furnished, then, such assets shall, unless otherwise proved, be presumed to belong to the public servant and shall be presumed to be assets acquired by corrupt means: Provided that the competent authority may condone or exempt the public servant from furnishing information in respect of assets not exceeding such minimum value as may be prescribed. CHAPTER XIV OFFENCES AND PENALTIES **46. Prosecution for false complaint and payment of compensation, etc., to public servant.—(1)** Notwithstanding anything contained in this Act, whoever makes any false and frivolous or vexatious complaint under this Act shall, on conviction, be punished with imprisonment for a term which may extend to one year and with fine which may extend to one lakh rupees. (2) No Court, except a Special Court, shall take cognizance of an offence under sub-section (1). (3) No Special Court shall take cognizance of an offence under sub-section (1) except on a complaint made by a person against whom the false, frivolous or vexatious complaint was made or by an officer authorised by the Lokpal. (4) The prosecution in relation to an offence under sub-section (1) shall be conducted by the public prosecutor and all expenses connected with such prosecution shall be borne by the Central Government. (5) In case of conviction of a person [being an individual or society or association of persons or trust (whether registered or not)], for having made a false complaint under this Act, such person shall be liable to pay compensation to the public servant against whom he made the false complaint in addition to the legal expenses for contesting the case by such public servant, as the Special Court may determine. 1. Subs. by Act 37 of 2016, s. 2, for section 44 (w.e.f. 16-1-2014). 19 ----- (6) Nothing contained in this section shall apply in case of complaints made in good faith. _Explanation.—For the purpose of this sub-section, the expression “good faith” means any act_ believed or done by a person in good faith with due care, caution and sense of responsibility or by mistake of fact believing himself justified by law under section 79 of the Indian Penal Code (45 of 1860). **47. False complaint made by society or association of persons or trust.—(1) Where any offence** under sub-section (1) of section 46 has been committed by any society or association of persons or trust (whether registered or not), every person who, at the time the offence was committed, was directly in charge of, and was responsible to, the society or association of persons or trust, for the conduct of the business or affairs or activities of the society or association of persons or trust as well as such society or association of persons or trust shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a society or association of persons or trust (whether registered or not) and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of such society or association of persons or trust, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. CHAPTER XV MISCELLANEOUS **48. Reports of Lokpal.—It shall be the duty of the Lokpal to present annually to the President a** report on the work done by the Lokpal and on receipt of such report the President shall cause a copy thereof together with a memorandum explaining, in respect of the cases, if any, where the advice of the Lokpal was not accepted, the reason for such non-acceptance to be laid before each House of Parliament. **49. Lokpal to function as appellate authority for appeals arising out of any other law for the** **time being in force.—The Lokpal shall function as the final appellate authority in respect of appeals** arising out of any other law for the time being in force providing for delivery of public services and redressal of public grievances by any public authority in cases where the decision contains findings of corruption under the Prevention of Corruption Act, 1988 (49 of 1988). **50. Protection of action taken in good faith by any public servant.—No suit, prosecution or other** legal proceedings under this Act shall lie against any public servant, in respect of anything which is done in good faith or intended to be done in the discharge of his official functions or in exercise of his powers. **51. Protection of action taken in good faith by others.—No suit, prosecution or other legal** proceedings shall lie against the Lokpal or against any officer, employee, agency or any person, in respect of anything which is done in good faith or intended to be done under this Act or the rules or the regulations made thereunder. **52. Members, officers and employees of Lokpal to be public servants.—The Chairperson,** Members, officers and other employees of the Lokpal shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this Act, to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **53. Limitation to apply in certain cases.—The Lokpal shall not inquire or investigate into any** complaint, if the complaint is made after the expiry of a period of seven years from the date on which the offence mentioned in such complaint is alleged to have been committed. **54. Bar of jurisdiction.—No civil court shall have jurisdiction in respect of any matter which the** Lokpal is empowered by or under this Act to determine. 20 ----- **55. Legal assistance.—The Lokpal shall provide to every person against whom a complaint has been** made, before it, under this Act, legal assistance to defend his case before the Lokpal, if such assistance is requested for. **56. Act to have overriding effect.—The provisions of this Act shall have effect notwithstanding** anything inconsistent therewith contained in any enactment other than this Act or in any instrument having effect by virtue of any enactment other than this Act. **57. Provisions of this Act to be in addition of other laws.—The provisions of this Act shall be in** addition to, and not in derogation of, any other law for the time being in force. **58. Amendment of certain enactments.—The enactments specified in the Schedule shall be** amended in the manner specified therein. **59. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules to carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the form of complaint referred to in clause (e) of sub-section (1) of section 2; (b) the term of the Search Committee, the fee and allowances payable to its members and the manner of selection of panel of names under sub-section (5) of section 4; (c) the post or posts in respect of which the appointment shall be made after consultation with the Union Public Service Commission under the proviso to sub-section (3) of section 10; (d) other matters for which the Lokpal shall have the powers of a civil court under clause (vi) of sub-section (1) of section 27; (e) the manner of sending the order of attachment along with the material to the Special Court under sub-section (2) of section 29; (f) the manner of transmitting the letter of request under sub-section (2) of section 36; (g) the form and the time for preparing in each financial year the budget for the next financial year, showing the estimated receipts and expenditure of the Lokpal under section 40; (h) the form for maintaining the accounts and other relevant records and the form of annual statement of accounts under sub-section (1) of section 42; (i) the form and manner and the time for preparing the returns and statements along with particulars under section 43; (j) the form and the time for preparing an annual return giving a summary of its activities during the previous year under sub-section (5) of section 44; 1 [(k) the form and manner of declaration of assets and liabilities by public servants under section 44: Provided that the rules may be made under this clause retrospectively from the date on which that provisions of this Act came into force;] (l) the minimum value for which the competent authority may condone or exempt a public servant from furnishing information in respect of assets under the proviso to section 45; (m) any other matter which is to be or may be prescribed. **60. Power of Lokpal to make regulations.—(1) Subject to the provisions of this Act and the rules** made thereunder, the Lokpal may, by notification in the Official Gazette, make regulations to carry out the provisions of this Act. 1. Subs. by Act 37 of 2016. s. 3, for clause (k) (w.e.f. 16-1-2014). 21 ----- (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:— (a) the conditions of service of the secretary and other officers and staff of the Lokpal and the matters which in so far as they relate to salaries, allowances, leave or pensions, require the approval of the President under sub-section (4) of section 10; (b) the place of sittings of benches of the Lokpal under clause (f) of sub-section (1) of section 16; (c) the manner for displaying on the website of the Lokpal, the status of all complaints pending or disposed of along with records and evidence with reference thereto under sub-section (10) of section 20; (d) the manner and procedure of conducting preliminary inquiry or investigation under sub-section (11) of section 20; (e) any other matter which is required to be, or may be, specified under this Act. **61. Laying of rules and regulations.—Every rule and regulation made under this Act shall be laid,** as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation, or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. **62. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order, published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act, as appear to be necessary for removing the difficulty: Provided that no such order shall be made under this section after the expiry of a period of two years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. PART III ESTABLISHMENT OF THE LOKAYUKTA **63. Establishment of Lokayukta.—Every State shall establish a body to be known as the Lokayukta** for the State, if not so established, constituted or appointed, by a law made by the State Legislature, to deal with complaints relating to corruption against certain public functionaries, within a period of one year from the date of commencement of this Act. 22 ----- THE SCHEDULE [See section 58] AMENDMENT TO CERTAIN ENACTMENTS PART I AMENDMENT TO THE COMMISSIONS OF INQUIRY ACT, 1952 (60 OF 1952) **Amendment of section 3.—In section 3, in sub-section (1), for the words “The appropriate** Government may”, the words and figures “Save as otherwise provided in the Lokpal and Lokayuktas Act, 2013, the appropriate Government may” shall be substituted. PART II AMENDMENTS TO THE DELHI SPECIAL POLICE ESTABLISHMENT ACT, 1946 (25 OF 1946) **1. Amendment of section 4A.—In section 4A,—** (i) for sub-section (1), the following sub-section shall be substituted, namely:— “(1) The Central Government shall appoint the Director on the recommendation of the Committee consisting of— (a) the Prime Minister—Chairperson; (b) the Leader of Opposition in the House of the People—Member; (c) the Chief Justice of India or Judge of the Supreme Court nominated by him—Member.”; (ii) sub-section (2) shall be omitted. **2. Insertion of new section 4BA.—After section 4B, the following section shall be inserted,** namely:— “4BA. Director of Prosecution.—(1) There shall be a Directorate of Prosecution headed by a Director who shall be an officer not below the rank of Joint Secretary to the Government of India, for conducting prosecution of cases under this Act. (2) The Director of Prosecution shall function under the overall supervision and control of the Director. (3) The Central Government shall appoint the Director of Prosecution on the recommendation of the Central Vigilance Commission. (4) The Director of Prosecution shall notwithstanding anything to the contrary contained in the rules relating to his conditions of service, continue to hold office for a period of not less than two years from the date on which he assumes office.”. **3. Amendment of section 4C.—In section 4C, for sub-section (1), the following sub-section shall be** substituted, namely:— “(1) The Central Government shall appoint officers to the posts of the level of Superintendent of Police and above except Director, and also recommend the extension or curtailment of the tenure of such officers in the Delhi Special Police Establishment, on the recommendation of a committee consisting of:— (a) the Central Vigilance Commissioner—Chairperson; (b) Vigilance Commissioners—Members; (c) Secretary to the Government of India in charge of the Ministry of Home—Member; 23 ----- (d) Secretary to the Government of India in charge of the Department of Personnel—Member: Provided that the Committee shall consult the Director before submitting its recommendation to the Central Government.". PART III AMENDMENTS TO THE PREVENTION OF CORRUPTION ACT, 1988 (49 OF 1988) **1. Amendment of sections 7, 8, 9 and 12.—In sections 7, 8, 9 and section 12,—** (a) for the words “six months”, the words “three years” shall respectively be substituted; (b) for the words “five years”, the words “seven years” shall respectively be substituted. **2. Amendment of section 13.—In section 13, in sub-section (2),—** (a) for the words “one year”, the words “four years” shall be substituted; (b) for the words “seven years”, the words “ten years” shall be substituted. **3. Amendment of section 14.—In section 14,—** (a) for the words “two years”, the words “five years” shall be substituted; (b) for the words “seven years”, the words “ten years” shall be substituted. **4. Amendment of section 15.—In section 15, for the words “which may extend to three years”, the** words “which shall not be less than two years but which may extend to five years” shall be substituted. **5. Amendment of section 19.—In section 19, after the words “except with the previous sanction”,** the words “save as otherwise provided in the Lokpal and Lokayuktas Act, 2013” shall be inserted. PART IV AMENDMENT TO THE CODE OF CRIMINAL PROCEDURE, 1973 (2 OF 1974) **Amendment of section 197.—In section 197, after the words “except with the previous sanction”,** the words “save as otherwise provided in the Lokpal and Lokayuktas Act, 2013” shall be inserted. PART V AMENDMENTS TO THE CENTRAL VIGILANCE COMMISSION ACT, 2003 (45 OF 2003) **1. Amendment of section 2.—In section 2, after clause (d), the following clause shall be inserted,** namely:— „(da) “Lokpal” means the Lokpal established under sub-section (1) of section 3 of the Lokpal and Lokayuktas Act, 2013;‟. **2. Amendment of section 8.—In section 8, in sub-section (2), after clause (b), the following clause** shall be inserted, namely:— “(c) on a reference made by the Lokpal under proviso to sub-section (1) of section 20 of the Lokpal and Lokayuktas Act, 2013, the persons referred to in clause (d) of sub-section (1) shall also include— (i) members of Group B, Group C and Group D services of the Central Government; (ii) such level of officials or staff of the corporations established by or under any Central Act, Government companies, societies and other local authorities, owned or controlled by the Central Government, as that Government may, by notification in the Official Gazette, specify in this behalf: 24 ----- Provided that till such time a notification is issued under this clause, all officials or staff of the said corporations, companies, societies and local authorities shall be deemed to be the persons referred in clause (d) of sub-section (1).". **3. Insertion of new sections 8A and 8B.—After section 8, the following sections shall be inserted,** namely:— “8A. Action on preliminary inquiry in relation to public servants.—(1) Where, after the conclusion of the preliminary inquiry relating to corruption of public servants belonging to Group C and Group D officials of the Central Government, the findings of the Commission disclose, after giving an opportunity of being heard to the public servant, a _prima facie_ violation of conduct rules relating to corruption under the Prevention of Corruption Act, 1988 (49 of 1988) by such public servant, the Commission shall proceed with one or more of the following actions, namely:— (a) cause an investigation by any agency or the Delhi Special Police Establishment, as the case may be; (b) initiation of the disciplinary proceedings or any other appropriate action against the concerned public servant by the competent authority; (c) closure of the proceedings against the public servant and to proceed against the complainant under section 46 of the Lokpal and Lokayuktas Act, 2013. (2) Every preliminary inquiry referred to in sub-section (1) shall ordinarily be completed within a period of ninety days and for reasons to be recorded in writing, within a further period of ninety days from the date of receipt of the complaint. 8B. Action on investigation in relation to public servants.—(1) In case the Commission decides to proceed to investigate into the complaint under clause (a) of sub-section (1) of section 8A, it shall direct any agency (including the Delhi Special Police Establishment) to carry out the investigation as expeditiously as possible and complete the investigation within a period of six months from the date of its order and submit the investigation report containing its findings to the Commission: Provided that the Commission may extend the said period by a further period of six months for the reasons to be recorded in writing. (2) Notwithstanding anything contained in section 173 of the Code of Criminal Procedure, 1973 (2 of 1974), any agency (including the Delhi Special Police Establishment) shall, in respect of cases referred to it by the Commission, submit the investigation report to the Commission. (3) The Commission shall consider every report received by it under sub-section (2) from any agency (including the Delhi Special Police Establishment) and may decide as to— (a) file charge-sheet or closure report before the Special Court against the public servant; (b) initiate the departmental proceedings or any other appropriate action against the concerned public servant by the competent authority.". **4. Insertion of new section 11A.—After section 11, the following section shall be inserted,** namely:— “11A. Director of inquiry for making preliminary inquiry.—(1) There shall be a Director of Inquiry, not below the rank of Joint Secretary to the Government of India, who shall be appointed by the Central Government for conducting preliminary inquiries referred to the Commission by the Lokpal. (2) The Central Government shall provide the Director of Inquiry such officers and employees as may be required for the discharge of his functions under this Act.”. 25 -----

1-Mar-2014

06

The Andhra Pradesh Reorganisation Act, 2014

https://www.indiacode.nic.in/bitstream/123456789/2123/1/A2014-6.pdf

central

# THE ANDHRA PRADESH REORGANISATION ACT, 2014 _______________ ARRANGEMENT OF SECTIONS _______________ PART I PRELIMINARY SECTIONS 1. Short title. 2. Definitions. PART II REORGANISATION OF THE STATE OF ANDHRA PRADESH 3. Formation of Telangana State. 4. State of Andhra Pradesh and territorial divisions thereof. 5. Hyderabad to be common capital for States of Telangana and Andhra Pradesh. 6. Expert Committee for setting up of a capital for Andhra Pradesh. 7. Governor of existing State of Andhra Pradesh to be common Governor. 8. Responsibility of Governor to protect residents of common capital of Hyderabad. 9. Assistance of police forces from Central Government to successor States, etc. 10. Amendment of First Schedule to Constitution. 11. Saving powers of State Governments. PART III REPRESENTATION IN THE LEGISLATURES 12. Amendment of Fourth Schedule to Constitution. 13. Allocation of sitting members. 14. Representation in House of the People. 15. Delimitation of Parliamentary and Assembly Constituencies. 16. Provision as to sitting members. 17. Provisions as to Legislative Assemblies. 18. Representation of Anglo-Indian community. 19. Allocation of sitting members. 20. Duration of Legislative Assemblies. 21. Speaker, Deputy Speaker and rules of procedure. 22. Legislative Council for successor States. 23. Provisions as to Legislative Councils. 24. Amendment of Delimitation of Council Constituencies Order. 25. Chairman, Deputy Chairman and rules of procedure. 26. Delimitation of constituencies. 27. Power of Election Commission to maintain Delimitation Orders up-to date. 28. Amendment of Scheduled Castes Order. 29. Amendment of Scheduled Tribes Order. PART IV HIGH COURT 30. High Court of Judicature at Hyderabad to be common High Court till establishment of High Court of Andhra Pradesh. 1 ----- SECTIONS 31. High Court of Andhra Pradesh. 32. Judges of Andhra Pradesh High Court. 33. Jurisdiction of Andhra Pradesh High Court. 34. Special provision relating to Bar Council and advocates. 35. Practice and procedure in Andhra Pradesh High Court. 36. Custody of seal of Andhra Pradesh High Court. 37. Form of writs and other processes. 38. Powers of Judges. 39. Procedure as to appeals to Supreme Court. 40. Transfer of proceedings from Hyderabad High Court to Andhra Pradesh High Court. 41. Right to appear or to act in proceedings transferred to Andhra Pradesh High Court. 42. Interpretation. 43. Savings. PART V AUTHORISATION OF EXPENDITURE AND DISTRIBUTION OF REVENUES 44. Authorisation of expenditure of Telangana State. 45. Reports relating to accounts of Andhra Pradesh State. 46. Distribution of revenue. # PART VI APPORTIONMENT OF ASSETS AND LIABILITIES 47. Application of Part. 48. Land and goods. 49. Treasury and bank balances. 50. Arrears of taxes. 51. Right to recover loans and advances. 52. Investments and credits in certain funds. 53. Assets and liabilities of State undertakings. 54. Public Debt. 55. Floating Debt. 56. Refund of taxes collected in excess. 57. Deposits, etc. 58. Provident Fund. 59. Pensions. 60. Contracts. 61. Liability in respect of actionable wrong. 62. Liability as guarantor. 63. Items in suspense. 64. Residuary provision. 65. Apportionment of assets or liabilities by agreement. 66. Power of Central Government to order allocation or adjustment in certain cases. 67. Certain expenditure to be charged on Consolidated Fund. 2 ----- PART VII PROVISIONS AS TO CERTAIN CORPORATIONS SECTIONS 68. Provisions for various companies and corporations. 69. Continuance of arrangements in regard to generation and supply of electric power and supply of water. 70. Provisions as to Andhra Pradesh State Financial Corporation. 71. Certain provisions for companies. 72. Temporary provisions as to continuance of certain existing road transport permits. 73. Special provisions relating to, retrenchment compensation in certain cases. 74. Special provision as to income-tax. 75. Continuance of facilities in certain State institutions. PART VIII PROVISIONS AS TO SERVICES 76. Provisions relating to All-India Services. 77. Provisions relating to other services. 78. Other provisions relating to services. 79. Provisions as to continuance of officers in same post. 80. Advisory committees. 81. Power of Central Government to give directions. 82. Provision for employees of Public Sector Undertakings, etc. 83. Provisions as to State Public Service Commission. PART IX MANAGEMENT AND DEVELOPMENT OF WATER RESOURCES 84. Apex Council for Godavari and Krishna river water resources and their Management Boards. 85. Constitution and functions of River Management Board. 86. Staff of the Management Board. 87. Jurisdiction of Board. 88. Power of Board to make regulations. 89. Allocation of water resources. 90. Polavaram Irrigation Project to be a national project. 91. Arrangements on Tungabhadra Board. PART X INFRASTRUCTURE AND SPECIAL ECONOMIC MEASURES 92. Successor States to follow principles, guidelines, etc., issued by Central Government. 93. Measures for progress and development of successor States. 94. Fiscal measures including tax incentives. PART XI ACCESS TO HIGHER EDUCATION 95. Equal opportunities for quality higher education to all students. 3 ----- PART XII LEGAL AND MISCELLANEOUS PROVISIONS SECTIONS 96. Amendment of article 168 of the Constitution. 97. Amendment of article 371D of the Constitution. 98. Amendment of section 15A of Act 43 of 1951. 99. Amendment of section 15 of Act 37 of 1956. 100. Territorial extent of laws. 101. Power to adapt laws. 102. Power to construe laws. 103. Power to name authorities, etc., for exercising statutory functions. 104. Legal proceedings. 105. Transfer of pending proceedings. 106. Right of pleaders to practise in certain cases. 107. Effect of provisions of the Act inconsistent with other laws. 108. Power toremove difficulties. THE FIRST SCHEDULE THE SECOND SCHEDULE THE THIRD SCHEDULE THE FOURTH SCHEDULE THE FIFTH SCHEDULE THE SIXTH SCHEDULE THE SEVENTH SCHEDULE THE EIGHTH SCHEDULE THE NINTH SCHEDULE THE TENTH SCHEDULE THE ELEVENTH SCHEDULE THE TWELFTH SCHEDULE THE THIRTEENTH SCHEDULE 4 ----- # THE ANDHRA PRADESH REORGANISATION ACT, 2014 ACT NO. 6 OF 2014 [1st March, 2014.] # An Act to provide for the reorganisation of the existing State of Andhra Pradesh and for matters connected therewith. BE it enacted by Parliament in the Sixty-fifth Year of the Republic of India as follows:— PART I PRELIMINARY **1. Short title.—This Act may be called the Andhra Pradesh ReorganisationAct,2014.** **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “appointed day” means the day[1] which the Central Government may, by notification in the Official Gazette, appoint; (b) “article” means an article of the Constitution; (c) “assembly constituency”, “council constituency” and “parliamentary constituency” have the same meanings as in the Representation of the People Act, 1950(43 of 1950); (d) “Election Commission” means the Election Commission appointed by the President under article 324; (e) “existing State of Andhra Pradesh” means the State of Andhra Pradesh asexisting immediately before the appointed day; (f) “law” includes any enactment, ordinance, regulation, order, bye-law, rule, scheme, notification or other instrument having, immediately before the appointedday, the force of law in the whole or in any part of the existing State ofAndhra Pradesh; (g) “notified order” means an order published in the Official Gazette; (h) “population ratio”, in relation to the States of Andhra Pradesh and Telangana, means the ratio of 58.32: 41.68 as per 2011 Census; (i) “sitting member”, in relation to either House of Parliament or of the Legislature of the existing State of Andhra Pradesh, means a person who immediately before the appointed day, is a member of that House; (j) “successor State”, in relation to the existing State of Andhra Pradesh, meansthe State of Andhra Pradesh or the State of Telangana, as the case may be; (k) “transferred territory” means the territory which on the appointed day is transferred from the existing State of Andhra Pradesh to the State of Telangana; (l) “treasury” includes a sub-treasury; and (m) any reference to a district, mandal, tehsil, taluk or other territorial division of the existing State of Andhra Pradesh shall be construed as a reference to the area comprised within that territorial division on the appointed day. 1. 2nd June, 2014, _vide notification No. S.O. 655(E), dated 4th March, 2014,_ _see Gazette of India, Extraordinary, Part II,_ sec. 3(ii). 5 ----- PART II REORGANISATION OF THE STATE OF ANDHRA PRADESH **3. Formation of Telangana State.—On and from the appointed day, there shall be formed a new** State to be known as the State of Telangana comprising the following territories of the existing State of Andhra Pradesh, namely:— Adilabad, Karimnagar, Medak, Nizamabad, Warangal, Ranga Reddy, Nalgonda, Mahbubnagar, [1][Khammam (but excluding the Mandals of Kukunoor, Velairpadu and Bhurgampadu but not including its revenue villages of Pinapaka, Morampalli Banzar, Bhurgampad, Nagineniprolu, Krishnasagar, Tekula, Sarapaka, Iravendi, Mothepattinagar, Uppusaka, Sompalli and Nakripeta under the Palvancha Revenue Division, and the Mandals of Chintoor, Kunavaram, Vararamachandrapuram and Bhadrachalam but not including the revenue village of Bhadrachalam under the Bhadrachalam Revenue Division)] and Hyderabad districts, and there upon the said territories shall cease to form part of the existing State ofAndhra Pradesh. **4.State of Andhra Pradesh and territorial divisions thereof.––On and from the appointed day, the** State of Andhra Pradesh shall comprise the territories of the existing State of Andhra Pradesh other than those specified insection 3. **5. Hyderabad to be common capital for States of Telangana and Andhra Pradesh.––(1) On and** from the appointed day, Hyderabad in the existing State of Andhra Pradesh, shall be the common capital of the State of Telangana and the State of Andhra Pradesh for such period not exceeding ten years. (2) After expiry of the period referred to in sub-section (1), Hyderabad shall be the capital of the State of Telangana and there shall be a new capital for the State of Andhra Pradesh. _Explanation.––In this Part, the common capital includes the existing area notified as the Greater_ Hyderabad Municipal Corporation under the Hyderabad Municipal Corporation Act, 1955 (Hyderabad Act No. 2 of 1956). **6. Expert Committee for setting up of a capital for Andhra Pradesh.—The Central Government** shall constitute an expert committee to study various alternatives regarding the new capital for the successor State of Andhra Pradesh and make appropriate recommendations in a period not exceeding six months from the date of enactment of the Andhra Pradesh Reorganisation Act, 2014. **7. Governor of existing State of Andhra Pradesh to be common Governor.—On and from the** appointed day, the Governor of the existing State of Andhra Pradesh shall be the Governor for both the successor States of Andhra Pradesh and Telangana for such period as may be determined by the President. **8. Responsibility of Governor to protect residents of common capital of Hyderabad.—(1) On and** from the appointed day, for the purposes of administration of the common capital area, the Governor shall have special responsibility for the security of life, liberty and property of all those who reside in such area. (2) In particular, the responsibility of the Governor shall extend to matters such as lawand order, internal security and security of vital installations, and management and allocation of Government buildings in the common capital area. (3) In discharge of the functions, the Governor shall, after consulting the Council of Ministers of the State of Telangana, exercise his individual judgment as to the action to betaken: Provided that if any question arises whether any matter is or is not a matter as respects which the Governor is under this sub-section required to act in the exercise of his individual judgment, the decision of the Governor in his discretion shall be final, and the validity of anything done by the Governor shall not be called in question on the ground that he ought or ought not to have acted in the exercise of his individual judgment. 1. Subs. by Act 19 of 2014, s.2, for certain words (w.e.f. 29-5-2014). 6 ----- (4) The Governor shall be assisted by two advisors to be appointed by the Central Government. **9. Assistance of police forces from Central Government to successor States, etc.—(1) The Central** Government shall assist the successor States of Andhra Pradeshand Telangana to raise additional police forces. (2) The Central Government shall, for a period of three years, on and from the appointed day, maintain and administer the Greyhound Training Centre in Hyderabad which shallfunction as a common training centre for the successor States and, at the expiry of the said period, the existing Greyhound Training Centre in Hyderabad shall become the training centre of the State of Telangana. (3) The Central Government shall assist the successor State of Andhra Pradesh to set up a similar state-of the-art training centre at such place as the State Government of Andhra Pradesh may by order notify. (4) The Central Government shall provide financial assistance to the successor States in setting up new operational hubs for Greyhounds at such locations as the successor States may by order notify. (5) The Greyhound and OCTOPUS forces of the existing State of Andhra Pradesh shall be distributed between the successor States after seeking options from the personnel and, each of these forces, on or after the appointed day shall function under the respective Director General of Police of the successor States. **10.Amendment of First Schedule to Constitution.—On and from the appointed day, in the First** Schedule to the Constitution, underthe heading “I. THE STATES’’,–– (a) in the paragraph relating to the territories of the State of Andhra Pradesh, after the words, brackets and figures “Second Schedule to the Andhra Pradesh and Madras (Alteration of Boundaries) Act, 1959(56 of 1959)”, the following shall be inserted, namely:— “and the territories specified in section 3 of the Andhra Pradesh Reorganisation Act, 2014”; (b) after entry 28, the following entry shall be inserted, namely:— “29. Telangana: The territories specified in section 3 of the Andhra Pradesh Reorganisation Act, 2014.”. **11. Saving powers of State Governments.—Nothing in the foregoing provisions of this Part shall be** deemed to affect the power of the Government of Andhra Pradesh or the Government of Telangana to alter, after the appointed day, the name, area or boundaries of any district or other territorial division in the State. PART III REPRESENTATION IN THE LEGISLATURES _The Council of States_ **12. Amendment of Fourth Schedule to Constitution.—On and from the appointed day, in the** Fourth Schedule to the Constitution, in the Table,— (a) in entry 1, for the figures “18”, the figures “11” shall be substituted; (b) entries 2 to 30 shall be renumbered as entries 3 to 31, respectively; (c) after entry 1, the following entry shall be inserted, namely:— “2. Telangana .............................................. 7”. **13. Allocation of sitting members.—(1) On and from the appointed day, eighteen sitting members of** the Council of States representing the existing State of Andhra Pradesh shall be deemed to have been elected to fill the seats allotted to the States of Andhra Pradesh and Telangana, as specifiedin the First Schedule to this Act. (2) The term of office of such sitting members shall remain unaltered. 7 ----- _The House of the People_ **14. Representation in House of the People.—On and from the appointed day, there shall be** allocated 25 seats to the successor State of Andhra Pradesh, and 17 seats to the successor State of Telangana, in the House of the People, and the First Schedule to the Representation of the People Act, 1950 (43 of 1950) shall be deemed to be amended accordingly. **15. Delimitation of Parliamentary and Assembly Constituencies.—(1) On and from the appointed** day, the Delimitation of Parliamentary and Assembly Constituencies Order, 2008, shall stand amended as directed in the Second Schedule to thisAct. (2) The Election Commission may conduct the elections to the House of the People and the Legislative Assemblies of the successor States of Andhra Pradesh and Telanganaas per the allocation of seats specified in the Delimitation of Parliamentary and Assembly Constituencies Order, 2008 as amended by this Act. **16. Provision as to sitting members.—(1) Every sitting member of the House of the People** representing a constituency which, on the appointed day by virtue of the provisions of section 14, stands allotted, with or without alteration of boundaries, to the successor States of Andhra Pradesh or Telangana, shall be deemed to have been elected to the House of the People by that constituency as so allotted. (2) The term of office of such sitting members shall remain unaltered. _The Legislative Assembly_ **17. Provisions as to Legislative Assemblies.—(1) Subject to the provisions of sub-section (2), the** number of seats in the Legislative Assemblies of the States of Andhra Pradesh and Telangana, on and from the appointed day, shall be 175 and 119, respectively. (2) In the Second Schedule to the Representation of the People Act, 1950 (43 of 1950), under the heading “I. STATES”:— # (a) for entry 1, the following entry shall be substituted, namely:— 1 2 3 4 5 6 7 “1. Andhra Pradesh 294 39 15 175 297”; (b) entries 25 to 28 shall be renumbered as entries 26 to 29, respectively; (c) after entry 24, the following entry shall be inserted, namely:— 12 3 4 5 67 “25. Telangana— — — 119 19 12”. **18. Representation of Anglo-Indian community.—Notwithstanding any thing in sub-section (1) of** section 17 the Governor of the State may nominate one member each to the Legislative Assemblies of the successor States to give representation to the Anglo-Indian community in accordance with article 333 of the Constitution. **19. Allocation of sitting members.— (1) Every sitting member of the Legislative Assembly of the** existing State of Andhra Pradesh elected to fill a seat in that Assembly from a constituency which on the appointed day by virtue of the provisions of section 17 stands allotted, with or without alteration of boundaries, to the State of Telangana shall, on and from that day, cease to be a member of the Legislative Assembly of Andhra Pradesh and shall be deemed to have been elected to fill a seat in the Legislative Assembly of Telangana from that constituency as so allotted. (2) All other sitting members of the Legislative Assembly of the existing State of Andhra Pradesh shall continue to be members of the Legislative Assembly of that State and any such sitting member 8 ----- representing a constituency, the extent or the name of which are altered by virtue of the provisions of section 17, shall be deemed to have been elected to the Legislative Assembly of Andhra Pradesh by that constituency as so altered. (3) Notwithstanding anything contained in any other law for the time being in force, the Legislative Assemblies of Andhra Pradesh and Telangana shall be deemed to be duly constituted on the appointed day. **20. Duration of Legislative Assemblies.—The period of five years referred to in clause (1) of article** 172 shall, in the case of the Legislative Assembly of the State of Andhra Pradesh and of the Legislative Assembly of the State of Telangana, be deemed to have commenced on the date on which it actually commenced in the case of the Legislative Assembly of the existing State of Andhra Pradesh. **21. Speaker, Deputy Speaker and rules of procedure.—(1) The person who immediately before the** appointed day is the Speaker of the Legislative Assembly of the existing State of Andhra Pradesh shall continue to be the Speaker of that Assembly on and from that day and the members of that Assembly shall choose from amongst the members of the Assembly, a member to be the Deputy Speaker of that Assembly. (2) As soon as may be after the appointed day, the Deputy Speaker of the Legislative Assembly of the existing State of Andhra Pradesh shall become the Deputy Speaker of the Legislative Assembly of the successor State of Telangana and until the Speaker is chosen by that Assembly, the duties of the office of the Speaker shall be performed by the Deputy Speaker so appointed. (3) The rules of procedure and conduct of business of the Legislative Assembly of Andhra Pradesh as in force immediately before the appointed day shall, until rules are madeunder clause (1) of article 208, be the rules of procedure and conduct of business of the Legislative Assembly of Telangana, subject to such modifications and adaptations as may be made therein by the speaker thereof. _The Legislative Councils_ **22. Legislative Council for successor States.— (1) There shall be constituted a Legislative Council** for each of the successorStates consisting of not more than [1][58 members in the Legislative Council of Andhra Pradesh] and 40 members in the Legislative Council of Telangana in accordance with the provisions contained in article 169 of the Constitution. (2) The existing Legislative Council of the State of Andhra Pradesh shall, on and from the appointed day, be deemed to have been constituted as two Legislative Councils of the successor States and the existing members shall be allotted to the Councils as specified in the Fourth Schedule. **23.Provisions as to Legislative Councils.—(1) On and from the appointed day, there shall be** [2][58 seats in the Legislative Council of Andhra Pradesh] and 40 seats in the Legislative Council of Telangana, respectively. (2) In the Representation of the People Act, 1950 (43 of 1950),–– (i) in the Third Schedule,–– 3[(a) for the existing entry 1, the following entry shall be substituted, namely:–– 1 2 3 4 5 67 “1. Andhra Pradesh 58205 5 208”;] (b) after entry 7, the following entry shall be inserted, namely:— 1 2 3 4 5 6 7 “7A. Telangana 40 14 3 3 14 6”; 1. Subs. by Act 12 of 2015, s. 2, for “50 members in the Legislative Council of Andhra Pradesh” (w.e.f. 29-4-2015). 2. Subs. by s. 3, ibid., for “50 seats in the Legislative Council of Andhra Pradesh” (w.e.f. 29-4-2015). 3. Subs. by s. 3, ibid., for entry 1 (w.e.f. 29-4-2015). 9 ----- (ii) in the Fourth Schedule, after the heading “Tamil Nadu” and the entries relating thereunder, the following heading and the entries shall be inserted, namely:— “TELANGANA 1. Municipal Corporations. 2. Municipalities. 3. Nagar Panchayats. 4. Cantonment Boards. 5. Zila Praja Parishads. 6. Mandal Praja Parishads.”. **24. Amendment of Delimitation of Council Constituencies Order.—(1) On and from the appointed** day, the Delimitation of Council Constituencies (Andhra Pradesh) Order,2006 shall stand amended as directed in Part I of the Third Schedule. (2) On and from the appointed day, the Delimitation of Council Constituencies (Telangana) Order, 2014, as specified in Part II of the Third Schedule shall apply to the successor State of Telangana. (3) The Central Government may, in consultation with the successor States of Andhra Pradesh, or as the case may be, Telangana, by notification in the Official Gazette amend the Third Schedule. **25. Chairman, Deputy Chairman and rules of procedure.—(1) The person who immediately** before the appointed day is the Chairman of the Legislative Council of the existing State of Andhra Pradesh shall continue to be the Chairmanof that Council on and from that day and the members of that Council shall choose from amongst the members of the Council, a member to be the Deputy Chairman of that Council. (2) As soon as may be after the appointed day, the Deputy Chairman of the Legislative Council of the existing State of Andhra Pradesh shall become the Deputy Chairman of the Legislative Council of the successor State of Telangana and until the Chairman is chosen by that Council, the duties of the office of Chairman shall be performed by the Deputy Chairman so appointed. (3) The rules of procedure and conduct of business of the Legislative Council of Andhra Pradesh as in force immediately before the appointed day shall, until rules are made under clause (1) of article 208, be the rules of procedure and conduct of business of the Legislative Council of Telangana, subject to such modifications and adaptations as may be made therein by the Chairman thereof. _Delimitation of constituencies_ **26. Delimitation of constituencies.—(1) Subject to the provisions contained in article 170 of the** Constitution and without prejudice to section 15 of this Act, the number of seats in the Legislative Assembly of the successor States of Andhra Pradesh and Telangana shall be increased from 175 and 119 to 225 and 153, respectively, and delimitation of the constituencies may be determined by the Election Commission in the manner hereinafter provided— (a) the number of seats to be reserved for the Scheduled Castes and the Scheduled Tribes in the Legislative Assemblies of the States of Andhra Pradesh and Telangana, respectively, having regard to the relevant provisions of the Constitution; (b) the assembly constituencies into which each State referred to in clause (a) shall be divided, the extent of each of such constituencies and in which of them seats shall be reserved for the Scheduled Castes or for the Scheduled Tribes; and (c) the adjustments in the boundaries and description of the extent of the parliamentary constituencies in each State referred to in clause (a) that may benecessary or expedient. 10 ----- (2) In determining the matters referred to in clauses (b) and (c) of sub-section (1), the Election Commission shall have regard to the following provisions, namely:–– (a) all the constituencies shall be single-member constituencies; (b) all constituencies shall, as far as practicable, be geographically compact areas, and in delimiting them, regard shall be had to physical features, existing boundaries of administrative units, facilities of communication and conveniences to the public; and (c) constituencies in which seats are reserved for the Scheduled Castes and the Scheduled Tribes shall, as far as practicable, be located in areas where the proportion of their population to the total population is the largest. (3) The Election Commission shall, for the purpose of assisting it in the performance of its functions under sub-section (1), associate with it self as associate members, five persons as the Central Government may by order specify, being persons who are the members of the Legislative Assembly of the State or of the House of the People representing theState: Provided that none of the associate members shall have a right to vote or to sign any decision of the Election Commission. (4) If, owing to death or resignation, the office of an associate member falls vacant, it shall be filled as far as practicable, in accordance with the provisions of sub-section (3). (5) The Election Commission shall–– (a) publish its proposals for the delimitation of constituencies together with the dissenting proposals, if any, of any associate member who desires publication thereof in the Official Gazette and in such other manner as the Commission may consider fit, together with a notice inviting objections and suggestions in relation to the proposals and specifying a date on or after which the proposals will be further considered by it; (b) consider all objections and suggestions which may have been received by it before the date so specified; and (c) after considering all objections and suggestions which may have been received by it before the date so specified, determine by one or more orders the delimitation of constituencies and cause such order or orders to be published in the Official Gazette, and upon such publication, the order or orders shall have the full force of law and shall notbe called in question in any court. (6) As soon as may be after such publication, every such order relating to assembly constituencies shall be laid before the Legislative Assembly of the concerned State. **27.Power of Election Commission to maintain Delimitation Orders up-to date.––(1) The Election** Commission may, from time to time, by notification in the Official Gazette,— (a) correct any printing mistakes in any order made under section 26 or any error arising therein from inadvertent slip or omission; and (b) where the boundaries or name of any territorial division mentioned in any such order or orders is or are altered, make such amendments as appear to it to be necessary or expedient for bringing such order up-to-date. (2) Every notification under this section relating to an assembly constituency shall be laid, as soon as may be after it is issued, before the concerned Legislative Assembly. _Scheduled Castes and Scheduled Tribes_ **28. Amendment of Scheduled Castes Order.––On and from the appointed day, the Constitution** (Scheduled Castes) Order, 1950 (C.O. 19), shall stand amended as directed in the Fifth Schedule to this Act. 11 ----- **29. Amendment of Scheduled Tribes Order.––On and from the appointed day, the Constitution** (Scheduled Tribes) Order, 1950 (C.O. 22), shall stand amended as directed in the Sixth Schedule to this Act. PART IV HIGH COURT **30. High Court of Judicature at Hyderabad to be common High Court till establishment of High** **Court of Andhra Pradesh.––(1) On and from the appointed day,––** (a) the High Court of Judicature at Hyderabad shall be the common High Courtfor the State of Telangana and the State of Andhra Pradesh till a separate High Court for the State of Andhra Pradesh is constituted under article 214 of the Constitution read with section 31 of this Act; (b) the Judges of the High Court at Hyderabad for the existing State of Andhra Pradesh holding office immediately before the appointed day shall become on that day the Judges of the common High Court. (2) The expenditure in respect of salaries and allowances of the Judges of the common High Court shall be allocated amongst the States of Andhra Pradesh and Telangana on the basis of population ratio. **31. High Court of Andhra Pradesh.––(1) Subject to the provisions of section 30, there shall be a** separate High Court forthe State of Andhra Pradesh (hereinafter referred to asthe High Court of Andhra Pradesh) and the High Court of Judicature at Hyderabad shall become the High Court for the State of Telangana (hereinafter referred to as the High Court at Hyderabad). (2) The principal seat of the High Court of Andhra Pradesh shall be at such place as the President may, by notified order, appoint. (3) Notwithstanding anything contained in sub-section (2), the Judges and division courts of the High Court of Andhra Pradesh may sit at such other place or places in the State of Andhra Pradesh other than its principal seat as the Chief Justice may, with the approval of the Governor of Andhra Pradesh, appoint. **32. Judges of Andhra Pradesh High Court.––(1) Such of the Judges of the High Court at** Hyderabad holding office immediately before the date of establishment of the High Court of Andhra Pradesh as may be determined by the President, shall, from that date cease to be Judges of the High Court at Hyderabad and become, Judges of the High Court of Andhra Pradesh. (2) The persons who by virtue of sub-section (1) become Judges of the High Court of Andhra Pradesh shall, except in the case where any such person is appointed to be the Chief Justice of that High Court, rank in that Court according to the priority of their respective appointments as Judges of the High Court at Hyderabad. **33. Jurisdiction of Andhra Pradesh High Court.––The High Court of Andhra Pradesh shall have,** in respect of any part of the territories included in the State of Andhra Pradesh, all such jurisdiction, powers and authorityas, under the law in force immediately before the datereferred to in sub-section (1) of section 30, are exercisable in respect of that part of the said territories by the High Court at Hyderabad. **34.Special provision relating to Bar Council and advocates.––(1) On and from the date referred to** in sub-section (1) of section 30, in the Advocates Act, 1961 (25 of 1961),in section 3, in sub-section (1), in clause (a), for the words “Rajasthan, Uttar Pradesh”, the words “Rajasthan,Telangana, Uttar Pradesh” shall be substituted. (2) Any person who immediately before the date referred to in sub-section (1) of section 30 is an advocate on the roll of the Bar Council of the existing State of Andhra Pradesh and practising as an advocate in the High Court at Hyderabad, may givehis option in writing, within one year from that date to the Bar Council of such existing State, to transfer his name on the roll of the Bar Council of Telangana and notwithstanding any thing contained in the Advocates Act, 1961 (25 of 1961) and the rules made thereunder, on suchoption so given his name shall be deemed to have been transferred on the roll of the 12 ----- Bar Council of Telangana with effect from the date of the option so given for the purposes of the said Act, and the rules made thereunder. (3) The persons other than the advocates who are entitled immediately before thedate referred to in sub-section (1) of section 30, to practise in the High Court at Hyderabad or any subordinate court thereof shall, on and after that date, be recognised as such persons entitled also to practise in the High Court of Andhra Pradesh or any subordinate court there of, as the case may be. (4) The right of audience in the High Court of Andhra Pradesh shall be regulated in accordance with the like principles as immediately before the date referred to in sub-section (1) of section 30, are in force with respect to the right of audience in the High Court at Hyderabad. **35. Practice and procedure in Andhra Pradesh High Court.––Subject to the provisions of this** Part, the law in force immediately before the datereferred to in sub-section (1) of section 30 with respect to practice and procedure in the High Court at Hyderabad shall, with the necessary modifications, apply in relation to the High Court of Andhra Pradesh, and accordingly, the High Court of Andhra Pradesh shall have all such powers to make rules and orders with respect to practice and procedure as are immediately before that date exercisable by the High Court at Hyderabad: Provided that any rules or orders which are in force immediately before the datereferred to in sub-section (1) of section 30 with respect to practice and procedure in the High Court at Hyderabad shall, until varied or revoked by rules or orders made by the High Court of Andhra Pradesh, apply with the necessary modifications in relation to practice and procedure in the High Court of Andhra Pradesh as if made by that Court. **36. Custody of seal of Andhra Pradesh High Court.––The law in force immediately before the date** referred to in sub-section (1) of section 30 with respect to the custody of the seal of the High Court at Hyderabad shall, with the necessary modifications, apply with respect to the custody of the seal of the High Court of Andhra Pradesh. **37. Form of writs and other processes.––The law in force immediately before the date referred to in** sub-section (1) of section 30 with respect to the form of writs and other processes used, issued or awarded by the High Court at Hyderabad shall, with the necessary modifications, apply with respect to the form of writs and other processes used, issued or awarded by the High Court of Andhra Pradesh. **38. Powers of Judges.––The law in force immediately before the date referred to in sub-section (1) of** section 30 relating to the powers of the Chief Justice, single Judges and division courts of the High Court at Hyderabad and with respect to all matters ancillary to the exercise of those powers shall, with the necessary modifications, apply in relation to the High Court of Andhra Pradesh. **39. Procedure as to appeals to Supreme Court.–– The law in force immediately before the date** referred to in sub-section (1) of section 30 relating to appeals to the Supreme Court from the High Court at Hyderabad and the Judges and division courts thereof shall, with the necessary modifications, apply in relation to the High Court of Andhra Pradesh. **40. Transfer of proceedings from Hyderabad High Court to Andhra Pradesh High Court.––(1)** Except as hereinafter provided, the High Court at Hyderabad shall, as from the date referred to in sub-section (1) of section 30, have no jurisdiction in respect of the State of Andhra Pradesh. (2) Such proceedings pending in the High Court at Hyderabad immediately before the date referred to in sub-section (1) of section 30 as are certified, whether before or after that day, by the Chief Justice of that High Court, having regard to the place of accrual of the cause of action and other circumstances, to be proceedings which ought to be heard and decided by the High Court of Andhra Pradesh shall, as soon as may be after such certification, be transferred to the High Court of Andhra Pradesh. (3) Notwithstanding anything contained in sub-sections (1) and (2) of this section or in section 33, but save as hereinafter provided, the High Court at Hyderabad shall have, and the High Court of Andhra Pradesh shall not have, jurisdiction to entertain, hear or dispose of appeals, applications for leave to the Supreme Court, applications for review and other proceedings where any such proceedings seek any relief 13 ----- in respect of any order passed by the High Court at Hyderabad before the date referred to in sub-section (1) of section 30: Provided that if after any such proceedings have been entertained by the High Courtat Hyderabad, it appears to the Chief Justice of that High Court that they ought to be transferred to the High Court of Andhra Pradesh, he shall order that they shall be so transferred, and such proceedings shall thereupon be transferred accordingly. (4) Any order made by the High Court at Hyderabad–– (a) before the date referred to in sub-section (1) of section 30, in any proceedings transferred to the High Court of Andhra Pradesh by virtue of sub-section (2), or (b) in any proceedings with respect to which the High Court at Hyderabad retains jurisdiction by virtue of sub-section (3), shall for all purposes have effect, not only as an order of the High Court at Hyderabad, but also as an order made by the High Court of Andhra Pradesh. **41. Right to appear or to act in proceedings transferred to Andhra Pradesh High Court.––Any** person who, immediately before the date referred to in sub-section (1) of section 30, is an advocate entitled to practise or any other persons entitled to practise in the High Court at Hyderabad and was authorised to appear in any proceedings transferred from that High Court to the High Court of Andhra Pradesh under section 40, shall have the right to appear in the High Court of Andhra Pradesh in relation to those proceedings. **42. Interpretation.––For the purposes of section 40,––** (a) proceedings shall be deemed to be pending in a court until that court has disposed of all issues between the parties, including any issues with respect to the taxation of the costs of the proceedings and shall include appeals, applications for leave to appeal to the Supreme Court, applications for review, petitions for revision and petitions for writs; and (b) references to a High Court shall be construed as including references to a Judge or division court thereof, and references to an order made by a court or a Judge shall be construed as including references to a sentence, judgment or decree passed or made by that court or Judge. **43.Savings.––Nothing in this Part shall affect the application to the High Court of Andhra Pradesh of** any provisions of the Constitution, and this Part shall have effect subject to anyprovision that may be made on or after the date referred to in sub-section (1) of section 30 with respect to that High Court by any Legislature or other authority having power to make such provision. PART V AUTHORISATION OF EXPENDITURE AND DISTRIBUTION OF REVENUES **44. Authorisation of expenditure of Telangana State.––The Governor of existing State of Andhra** Pradesh may, at any time before the appointed day, authorise such expenditure from the Consolidated Fund of the State of Telangana as he deems necessary for any period not more than six months beginning with the appointed day pending the sanction of such expenditure by the Legislative Assembly of the State of Telangana: Provided that the Governor of Telangana may, after the appointed day, authorise such further expenditure as he deems necessary from the Consolidated Fund of the State of Telangana for any period not extending beyond the said period of six months. **45. Reports relating to accounts of Andhra Pradesh State.––(1) The reports of the Comptroller** and Auditor-General of India referred to in clause (2) of article 151 relating tothe accounts of the existing State of Andhra Pradesh inrespect of any period prior to the appointed day shall be submitted to the Governor of each of the successor States of Andhra Pradesh and Telangana who shall cause them to be laid before the Legislature of that State. 14 ----- (2) The President may by order–– (a) declare any expenditure incurred out of the Consolidated Fund of Andhra Pradesh on any service in respect of any period prior to the appointed dayduring the financialyear or in respect of any earlier financial year in excess of theamount granted for that service and for that year as disclosed in the reports referred toin sub-section (1) to have been duly authorised; and (b) provide for any action to be taken on any matter arising out of the said reports. **46. Distribution of revenue.––(1)The award made by the Thirteenth Finance Commission to the** existing State of Andhra Pradesh shall be apportioned between the successor States by the Central Government on the basis of population ratio and other parameters: Provided that on the appointed day, the President shall make a reference to the Fourteenth Finance Commission to take into account the resources available to the successor States and make separate awards for each of the successor States. (2) Notwithstanding anything in sub-section (1), the Central Government may, having regard to the resources available to the successor State of Andhra Pradesh, make appropriate grants and also ensure that adequate benefits and incentives in the form of special development package are given to the backward areas of that State. (3) The Central Government shall, while considering the special development package for the successor State of Andhra Pradesh, provide adequate incentives, in particular for Rayalaseema and north coastal regions of that State. PART VI APPORTIONMENT OF ASSETS AND LIABILITIES **47. Application of Part.––(1) The provisions of this Part shall apply in relation to the apportionment** of the assets and liabilities of the existing State of Andhra Pradesh immediately before the appointed day. (2) The successor States shall be entitled to receive benefits arising out of the decisions taken by the existing State of Andhra Pradesh and the successor States shall be liable tobear the financial liabilities arising out of the decisions taken by the existing State of Andhra Pradesh. (3) The apportionment of assets and liabilities shall be subject to such financial adjustment as may be necessary to secure just, reasonable and equitable apportionment ofthe assets and liabilities amongst the successor States. (4) Any dispute regarding the amount of financial assets and liabilities shall be settled through mutual agreement, failing which by order by the Central Government on the adviceof the Comptroller and Auditor-General of India. **48. Land and goods.––(1) Subject to the other provisions of this Part, all land and all stores, articles** andother goods belonging to the existing State of Andhra Pradesh shall,— (a) if within the transferred territory, pass to the State of Telangana; or (b) in any other case, remain the property of the State of Andhra Pradesh: Provided that in case of properties situated outside the existing State of Andhra Pradesh, such properties shall be apportioned between the successor States onthe basis of population ratio: Provided further that where the Central Government is of opinion that any goods or class of goods should be distributed among the States of Andhra Pradesh and Telangana, otherwise than according to the situation of the goods, the Central Government may issue such directions as it thinks fit for a just and equitable distribution of the goods and the goods shall pass to the successor States accordingly: Provided also that in case of any dispute relating to the distribution of any goods or class of goods under this sub-section, the Central Government shall endeavour to settle such dispute through mutual agreement arrived at between the Governments of the successor States for that purpose, failing which the 15 ----- Central Government may, on request by any of the Governments of the successor States, after consulting the Governments of the successor States, issue such direction as it may deem fit for the distribution of such goods or class of goods, as the case may be, under this sub-section. (2) Stores held for specific purposes, such as use or utilisation in particular institutions, workshops or undertakings or on particular works under construction, shall pass to the successor States in whose territories such institutions, workshops, undertakings or works are located. (3) Stores relating to the Secretariat and offices of Heads of Departments having jurisdiction over the whole of the existing State of Andhra Pradesh shall be divided betweenthe successor States on the basis of population ratio. (4) In this section, the expression “land” includes immovable property of every kindand any rights in or over such property, and the expression “goods” does not includecoins, bank notes and currency notes. **49. Treasury and bank balances.––The total of the cash balances in all treasuries of the existing** State of Andhra Pradesh and the credit balances of the existing State of Andhra Pradesh with the Reserve Bank of India, the State Bank of India or any other bank immediately before the appointed day shall be divided between the States of Andhra Pradesh and Telangana onthe basis of population ratio: Provided that for the purposes of such division, there shall be no transfer of cash balances from any treasury to any other treasury and the apportionment shall be effected by adjusting the credit balances of the two States in the books of the Reserve Bank of India on the appointed day: Provided further that if the State of Telangana has no account on the appointed day with the Reserve Bank of India, the adjustment shall be made in such manner as the Central Government may, by order, direct. **50. Arrears of taxes.––The right to recover arrears of the tax or duty on property, including arrears of** land revenue, shall belong to the successor State in which the property is situated, and the right to recover arrears of any other tax or duty shall belong to the successor State in whose territories the place of assessment of that tax or duty is included on the appointed day. **51.Right to recover loans and advances.––(1) The right of the existing State of Andhra Pradesh to** recover any loans oradvances made before the appointed day to any local body, society, agriculturist or other person in an area within that State shall belong to the successor State in which that area is included on that day. (2) The right of the existing State of Andhra Pradesh to recover any loans or advances made before the appointed day to any person or institution outside that State shall belong to the State of Andhra Pradesh: Provided that any sum recovered in respect of any such loan or advance shall be divided between the States of Andhra Pradesh and Telangana on the basis of population ratio. **52. Investments and credits in certain funds.––(1) The securities held in respect of the investments** made from Cash Balances Investment Account or from any Fund in the Public Account of the existing State of Andhra Pradesh as specified in the Seventh Schedule shall be apportioned on the basis of population ratio of the successor States: Provided that the securities held in investments made from the Calamity Relief Fund of the existing State of Andhra Pradesh shall be divided in the ratio of the area of the territories occupied by the successor States. (2) The investments of the existing State of Andhra Pradesh immediately before the appointed day in any special fund, the objects of which are confined to a local area, shall belong to the State in which that area is included on the appointed day: Provided that the investments in such special funds on multiple entities situated indifferent parts of the existing State, and such parts fall within the territories of the States of Andhra Pradesh and Telangana, shall be apportioned between the successor States on the basis of population ratio. 16 ----- (3) The investments of the existing State of Andhra Pradesh immediately before the appointed day in any private, commercial or industrial undertaking, the objects of which are confined to a local area, shall belong to the successor State in which such area is included on the appointed day: Provided that investments in such entities, having multiple units situated in different parts of the existing State, and such parts fall within the territories of the States of Andhra Pradesh and Telangana, shall be apportioned between the successor States on the basis of population ratio. (4) Where any body corporate constituted under a Central Act, State Act or Provincial Act for the existing State of Andhra Pradesh or any part thereof has, by virtue of the provisions of Part II, become an inter-State body corporate, the investments in, or loans oradvances to, any such body corporate by the existing State of Andhra Pradesh made beforethe appointed day shall, save as otherwise expressly provided by or under this Act, be divided between the States of Andhra Pradesh and Telangana in the same proportion in which the assets of the body corporate are divided under the provisions of this Part. **53. Assets and liabilities of State undertakings.––(1) The assets and liabilities relating to any** commercial or industrial undertaking of the existing State of Andhra Pradesh,where such undertaking or part thereof is exclusively located in, or its operations are confined to, a local area, shall pass to the State in which that area is included on the appointed day, irrespective of the location of its headquarters: Provided that where the operation of such undertaking becomes inter-State by virtue of the provisions of Part II, the assets and liabilities of–– (a) the operational units of the undertaking shall be apportioned between the two successor States on location basis; and (b) the headquarters of such undertaking shall be apportioned between the two successor States on the basis of population ratio. (2) Upon apportionment of the assets and liabilities, such assets and liabilities shall be transferred in physical form on mutual agreement or by making payment or adjustment through any other mode as may be agreed to by the successor States. **54. Public Debt.––(1) All liabilities on account of Public Debt and Public Account of the existing** State of Andhra Pradesh outstanding immediately before the appointed day shall be apportioned on the basis of population ratio of the successor States unless a different mode of apportionment is provided under the provisions of this Act. (2) The individual items of liabilities to be allocated to the successor States and the amount of contribution required to be made by one successor State to another shall be such as may be ordered by the Central Government on the advice of the Comptroller and Auditor-General of India: Provided that till such orders are issued, the liabilities on account of Public Debt and Public Account of the existing State of Andhra Pradesh shall continue to be the liabilities ofthe successor State of Andhra Pradesh. (3) The liability on account of loan raised from any source and re-lent by the existing State of Andhra Pradesh to such entities as may be specified by the Central Government and whose area of operation is confined to either of the successor States shall devolve on the respective States as specified in sub-section (4). (4) The public debt of the existing State of Andhra Pradesh attributable to loan taken from any source for the express purpose of re-lending the same to a specific institution and outstanding immediately before the appointed day shall,— (a) if re-lent to any local body, body corporate or other institution in any local area, be the debt of the State in which the local area is included on the appointed day; or (b) if re-lent to any other corporation or institution which becomes an inter-State corporation or institution on the appointed day, be divided between the States of Andhra Pradesh and Telangana in 17 ----- the same proportion in which the assets of such body corporate or institution are divided under the provisions of Part VII. (5) Where a sinking fund or a depreciation fund is maintained by the existing State of Andhra Pradesh for repayment of any loan raised by it, the securities held in respect of investments made from that fund shall be divided between the successor States of Andhra Pradesh and Telangana in the same proportion in which the total public debt is divided between the two States under this section. (6) In this section, the expression “Government security” means a security createdand issued by a State Government for the purpose of raising a public loan and having any of the forms specified in, or prescribed under, clause (2) of section 2 of the Public Debt Act, 1944 (18 of 1944). **55. Floating Debt.—All liabilities of the existing State of Andhra Pradesh in respect of any floating** loan to provide short term finance to any local body, body corporate or other institution, shall be determined on the following basis, namely:–– (a) if, the purposes of the floating loan are, on and from the appointed day, exclusive purposes of either of the successor States, then, of that State; (b) in any other case, it shall be divided on the basis of population ratio. **56. Refund of taxes collected in excess.—(1) The liability of the existing State of Andhra Pradesh to** refund any tax or duty on property, including land revenue, collected inexcess shall be the liability of the successor State in whose territories the property is situated, and the liability of the existing State of Andhra Pradesh to refund any other tax or duty collected inexcess shall be apportioned between the Successor States of Andhra Pradesh and Telangana onthe basis of population ratio and the State discharging the liability shall be entitled to receive from the other Stateits share of the liability, if any. (2) The liability of the existing State of Andhra Pradesh to refund any other tax or duty collected in excess on the appointed day shall be the liability of the successor State in whose territories the place of assessment of such tax or duty is included, and the liability of the existing State of Andhra Pradesh to refund any other tax or duty collected in excess shall be apportioned between the Successor States of Andhra Pradesh and Telangana on the basis of population ratio and the State discharging the liability shall be entitled to receive from the other State its share of the liability, if any. **57. Deposits, etc.—(1) The liability of the existing State of Andhra Pradesh inrespect of any civil** deposit or local fund deposit shall, as from the appointed day, be the liability of the successor State in whose area the deposit has been made. (2) The liability of the existing State of Andhra Pradesh in respect of any charitable or other endowment shall, as from the appointed day, be the liability of the successor State in whose area the institution entitled to the benefit of the endowment is located or of the successor State to which the objects of the endowment, under the terms thereof, are confined: Provided that any civil deposits or loan funds or charitable or other endowment fund maintained by the existing State of Andhra Pradesh before the appointed day having jurisdiction over the entire State shall be apportioned between the successor States on thebasis of population ratio. **58. Provident Fund.—The liability of the existing State of Andhra Pradesh inrespect of the Provident** Fund account of a Government servant in service on the appointed day shall, as from that day, be the liability of the successor State to which that Government servant is permanently allotted. **59. Pensions.—The liability of the existing State of Andhra Pradesh in respect of pensions shall pass** to, or be apportioned between, the successor States of Andhra Pradesh and Telangana in accordance with the provisions contained in the Eighth Schedule to this Act. **60.Contracts.—(1) Where, before the appointed day, the existing State of Andhra Pradesh has made** any contract in the exercise of its executive power for any purposes of the State, that contract shall,–– (a) if the purposes of the contract are, on and from the appointed day, exclusive purposes of either of the successor States of Andhra Pradesh and Telangana, then it shall be deemed to have been 18 ----- made in exercise of the executive power of that State and the liability shall be discharged by that State; and (b) in any other case, all rights and liabilities which have accrued or may accrue under any such contract shall be apportioned between the successor States on the basis of population ratio or in any other manner as may be agreed to by the successor States. (2) For the purposes of this section, there shall be deemed to be included in the liabilities which have accrued or may accrue under any contract–– (a) any liability to satisfy an order or award made by any court or other tribunal in proceedings relating to the contract; and (b) any liability in respect of expenses incurred in or in connection with any such proceedings. (3) This section shall have effect subject to the other provisions of this Part relating to the apportionment of liabilities in respect of loans, guarantees and other financial obligations; and the bank balances and securities shall, notwithstanding that they partake of the nature of contractual rights, be dealt with under those provisions. **61. Liability in respect of actionable wrong.—Where, immediately before the appointed day, the** existing State of Andhra Prades his subject to any liability in respect of any actionable wrong other than breach of contract, that liability shall,–– (a) if the cause of action arose wholly within the territories which, as from that day, are the territories of either of the successor States of Andhra Pradesh or Telangana, be the liability of that State; and (b) in any other case, be apportioned between the successor States on the basis of population ratio or in any other manner as may be agreed to by the successor States. **62. Liability as guarantor.—Where, immediately before the appointed day, the existing State of** Andhra Pradeshis liable as guarantor in respect of any liability of a registered co-operative society or other person, that liability shall,— (a) if the area of operations of such society or persons is confined to the territories which, as from that day, are the territories of either of the States of Andhra Pradesh or Telangana, be a liability of that State; and (b) in any other case, be apportioned between the successor States on the basis of population ratio or in any other manner as may be agreed to by the successor States. **63. Items in suspense.—If any item in suspense is ultimately found to affect an asset or liability of** the nature referred to in any of the foregoing provisions of this Part, it shall be dealt with in accordance with that provision. **64. Residuary provision.—The benefit or burden of any asset or liability of the existing State of** Andhra Pradesh not dealt with in the foregoing provisions of this Part shall pass to the State of Andhra Pradesh in the first instance, subject to such financial adjustment as may be agreed upon between the States of Andhra Pradesh and Telangana or, in default of such agreement,as the Central Government may, by order, direct. **65. Apportionment of assets or liabilities by agreement.—Where the successor States of Andhra** Pradesh and Telangana agree that the benefit or burden of any particular asset or liability should be apportioned between them in a manner other than that provided for in the foregoing provisions of this Part, notwithstanding anything contained therein, the benefit or burden of that asset or liability shall be apportioned in the manner agreed upon. **66. Power of Central Government to order allocation or adjustment in certain cases.—Where,** by virtue of any of the provisions of this Part, either of the successor States of Andhra Pradesh and Telangana becomes entitled to any property or obtains any benefits or becomes subject to any liability, and the Central Government is of opinion, on a reference made within a period of three years from the 19 ----- appointed day by either of the States, that it is just and equitable that such property or those benefits should be transferred to, or shared with, the other successor State, or that a contribution towards that liability should be made by the other successor State, the said property or benefits shall be allocated in such manner between the two States, or the other State shall make to the State subject to the liability such contribution in respect thereof, as the Central Government may, after consultation with the two State Governments, by order, determine. **67. Certain expenditure to be charged on Consolidated Fund.—All sums payable by the State of** Andhra Pradesh or by the State of Telangana, as the case may be, to the other State, or by the Central Government to the successor States, by virtue of the provisions of this Act, shall be charged on the Consolidated Fund of the State by which such sums are payable or, as the case may be, the Consolidated Fund of India. PART VII PROVISIONS AS TO CERTAIN CORPORATIONS **68. Provisions for various companies and corporations.—(1) The companies and corporations** specified in the Ninth Schedule constituted for the existing State of Andhra Pradesh shall, on and from the appointed day, continue to function in those areas in respect of which they were functioning immediately before that day, subject to the provisions of this section. (2) The assets, rights and liabilities of the companies and corporations referred to in sub-section (1) shall be apportioned between the successor States in the manner provided in section 53. **69. Continuance of arrangements in regard to generation and supply of electric power and** **supply of water.—If it appears to the Central Government that the arrangement in regard to the** generation or supply of electric power or the supply of water for any area or in regard to the execution of any project for such generation or supply has been or is likely to be modified to the disadvantage of that area by reason of the fact that it is, by virtue of the provisions of Part II, outside the State in which the power stations and other installations for the generation and supply of such power, or the catchment area, reservoirs and other works for the supply of water, as the case may be, are located, the Central Government may, after consultation with the Governments of the successor States wherever necessary, give such directions as it deems proper to the State Government or other authority concerned for the maintenance, so far as practicable, of the previous arrangement and the State to which such directions are given shall comply with them. **70. Provisions as to Andhra Pradesh State Financial Corporation.—(1) The Andhra Pradesh State** Financial Corporation established under the State Financial Corporations Act, 1951 (63 of 1951) shall, on and from the appointed day, continue to functionin those areas in respect of which it was functioning immediately before that day, subject tothe provisions of this section and to such directions as may, from time to time, be issued by the Central Government. (2) Any directions issued by the Central Government under sub-section (1) in respect of the Corporation may include a direction that the said Act, in its application to the Corporation, shall have effect subject to such exceptions and modifications as may be specified in the direction. (3) Notwithstanding anything contained in sub-section (1) or sub-section (2), the Board of Directors of the Corporation may, with the previous approval of the Central Government and shall, if so required by the Central Government, convene at any time after the appointed day a meeting for the consideration of a scheme for the reconstitution or reorganisation or dissolution, as the case may be, of the Corporation, including proposals regarding the formation of new Corporations, and the transfer thereto of the assets, rights and liabilities of the existing Corporation, and if such a scheme is approved at the general meeting by a resolution passed bya majority of the share holders present and voting, the scheme shall be submitted to the Central Government for its sanction. (4) If the scheme is sanctioned by the Central Government either without modifications or with modifications which are approved at a general meeting, the Central Government shall certify the scheme, and upon such certification, the scheme shall, notwithstanding any thing to the contrary contained in any 20 ----- law for the time being in force, be binding on the Corporations affected by the scheme as well as the shareholders and creditors thereof. (5) If the scheme is not so approved or sanctioned, the Central Government may refer the scheme to such Judge of the High Court of Andhra Pradesh or the High Court of Telangana as may be nominated in this behalf by the Chief Justice thereof, and the decision of the Judge inregard to the scheme shall be final and shall be binding on the Corporations affected by the scheme as well as the shareholders and creditors thereof. (6) Nothing in the preceding provisions of this section shall be construed as preventing the Government of the States of Andhra Pradesh and Telangana from constituting, at anytime on or after the appointed day, a State Financial Corporation for that State under the State Financial Corporations Act, 1951 (63 of 1951). **71. Certain provisions for companies.—Notwithstanding anything in this Part, the Central** Government may, for each of the companies specified in the Ninth Schedule to this Act, issue directions– (a) regarding the division of the interests and shares of the existing State of Andhra Pradesh in the Company between the successor States; (b) requiring the reconstitution of the Board of Directors of the Company so as to give adequate representation to the successor States. **72. Temporary provisions as to continuance of certain existing road transport permits.—(1)** Notwithstanding anything contained in section 88 of the Motor Vehicles Act, 1988 (59 of 1988), a permit granted by the State Transport Authority of the existing State of Andhra Pradesh or any Regional Transport Authority in that State shall, if such permit was, immediately before the appointed day, valid and effective in any area in the transferred territory, be deemed to continue to be valid and effective in that area after that day till its period of validity subject to the provisions of that Act as for the time being in force in that area; and it shall not be necessary for any such permit to be countersigned by the State Transport Authority of Telangana or any Regional Transport Authority therein for the purpose of validating it for use in such area: Provided that the Central Government may, after consultation with the successor State Government or Governments concerned add to amend or vary the conditions attached to the permit by the Authority by which the permit was granted. (2) No tolls, entrance fees or other charges of a like nature shall be levied after the appointed day in respect of any transport vehicle for its operations in any of the successor States under any such permit, if such vehicle was, immediately before that day, exempt from the payment of any such toll, entrance fees or other charges for its operations in the transferred territory: Provided that the Central Government may, after consultation with the State Government or Governments concerned, authorise the levy of any such toll, entrance fees or other charges, as the case may be: Provided further that the provisions of this sub-section shall not be applicable where any such tolls, entrance fees or other charges of a like nature are leviable for the use of any road or bridge which is constructed or developed for commercial purpose by the State Government, an undertaking of the State Government, a joint undertaking in which the State Government is a shareholder or the private sector. **73. Special provisions relating to, retrenchment compensation in certain cases.—Where on** account of the reorganisation of the existing State of Andhra Pradesh under this Act, any body corporate constituted under a Central Act, State Act or Provincial Act, any co-operative society registered under any law relating to co-operative societies or any commercial or industrial undertaking of that State is reconstituted or reorganised in any manner whatsoever or is amalgamated with any other body corporate, co-operative society or undertaking, or is dissolved, and in consequence of such reconstitution, reorganisation, amalgamation or dissolution, any workman employed by such body corporate or in any such co-operative societyor undertaking, is transferred to, or re-employed by, any other body corporate, or in any other co-operative society or undertaking, then, notwithstanding anything contained in section 21 ----- 25F or section 25FF or section 25FFF of the Industrial Disputes Act, 1947 (14 of 1947), such transfer or re-employment shall not entitle him to any compensation under that section: Provided that— (a) the terms and conditions of service applicable to the workman after suchtransfer or re employment are not less favourable to the workman than those applicable to him immediately before the transfer or re-employment; (b) the employer in relation to the body corporate, the co-operative society orthe undertaking where the workman transferred or re-employed is, by agreement or otherwise, legally liable to pay to the workman, in the event of his retrenchment, compensation undersection 25F or section 25FF or section 25FFF of the Industrial Disputes Act, 1947 (14 of 1947) on the basis that his service has been continuous and has not been interrupted by the transfer or re-employment. **74. Special provision as to income-tax.—Where the assets, rights and liabilities of any body** corporate carrying on business are, under the provisions of this Part, transferred to any other bodies corporate which after the transfer carry on the same business, the losses or profits or gains sustained by the body corporate first-mentioned which, but for such transfer, would have been allowed to be carried forward and set off in accordance with the provisions of Chapter VI of the Income-tax Act, 1961 (43 of 1961), shall be apportioned amongst the transferee bodies corporate in accordance with the rules to be made by the Central Government in this behalf and, upon such apportionment, the share of loss allotted to each transferee body corporate shall be dealt with in accordance with the provisions of Chapter VI of the said Act, as if the transferee body corporate had itself sustained such loss in a business carried on by it in the years in which those losses were sustained. **75. Continuance of facilities in certain State institutions.—(1) The Government of the State of** Andhra Pradesh or the State of Telangana, as the case may be, shall, in respect of the institutions specified in the Tenth Schedule to this Act, located in that State, continue to provide facilities to the people of the other State which shall not, in any respect, be less favourable to such people than what were being provided to them before the appointed day, for such period and upon such terms and conditions as may be agreed upon between the two State Governments within a period of one year from the appointed day or, if no agreement is reached within the said period, as may be fixed by order of the Central Government. (2) The Central Government may, at any time within one year from the appointed day, by notification in the Official Gazette, specify in the Tenth Schedule referred to in sub-section (1) any other institution existing on the appointed day in the States of Andhra Pradesh and Telangana and, on the issue of such notification, such Schedule shall bedeemed to be amended by the inclusion of the said institution therein. PART VIII PROVISIONS AS TO SERVICES **76. Provisions relating to All-India Services.—(1) In this section, the expression “State cadre”––** (a) in relation to the Indian Administrative Service, has the meaning assigned to it in the Indian Administrative Service (Cadre) Rules, 1954; (b) in relation to the Indian Police Service, has the meaning assigned to it in the Indian Police Service (Cadre) Rules, 1954; and (c) in relation to the Indian Forest Service, has the meaning assigned to it in the Indian Forest Service (Cadre) Rules, 1966. (2) In place of the cadres of the Indian Administrative Service, Indian Police Serviceand Indian Forest Service for the existing State of Andhra Pradesh, there shall, on and from the appointed day, be two separate cadres, one for the State of Andhra Pradesh and the other for the State of Telangana in respect of each of these services. 22 ----- (3) The provisional strength, composition and allocation of officers to the State cadres referred to in sub-section (2) shall be such as the Central Government may, by order, determine on or after the appointed day. (4) The members of each of the said services borne on the Andhra Pradesh cadre immediately before the appointed day shall be allocated to the successor State cadres of the same service constituted under sub-section (2) in such manner and with effect from such date or dates as the Central Government may, by order, specify. (5) Nothing in this section shall be deemed to affect the operation, on or after the appointed day, of the All-India Services Act, 1951 (61 of 1951), or the rules made thereunder. **77. Provisions relating to other services.—(1) Every person who immediately before the appointed** day is serving on substantive basis in connection with the affairs of the existing State of Andhra Pradesh shall, on and from that day provisionally continue to serve in connection with the affairs of the State of Andhra Pradesh unless he is required, by general or special order of the Central Government to serve provisionally in connection with the affairs of the State of Telangana: Provided that every direction under this sub-section issued after the expiry of a period of one year from the appointed day shall be issued with the consultation of the Governments of the successor States. (2) As soon as may be after the appointed day, the Central Government shall, by general or special order, determine the successor State to which every person referred to in sub-section (1) shall be finally allotted for service, after consideration of option received by seeking option from the employees, and the date with effect from which such allotment shall take effect or be deemed to have taken effect: Provided that even after the allocation has been made, the Central Government may, in order to meet any deficiency in the service, depute officers of other State services from one successor State to the other: Provided further that as far as local, district, zonal and multi-zonal cadres are concerned, the employees shall continue to serve, on or after the appointed day, in that cadre: Provided also that the employees of local, district, zonal and multi-zonal cadres which fall entirely in one of the successor States, shall be deemed to be allotted to that successor State: Provided also that if a particular zone or multi-zone falls in both the successor States, then the employees of such zonal or multi-zonal cadre shall be finally allotted to one or the other successor States in terms of the provisions of this sub-section. (3) Every person who is finally allotted under the provisions of sub-section (2) to asuccessor State shall, if he is not already serving therein, be made available for serving in the successor State from such date as may be agreed upon between the Governments of the successor States or, in default of such agreement, as may be determined by the Central Government: Provided that the Central Government shall have the power to review any of its orders issued under this section. **78. Other provisions relating to services.—(1) Nothing in this section or insection 77 shall be** deemed to affect, on or after the appointed day, the operation of theprovisions of Chapter I of Part XIV of the Constitutionin relation to determination of the conditions of service of persons serving in connectionwith the affairs of the Union or any State: Provided that the conditions of service applicable immediately before the appointed day in the case of any person deemed to have been allocated to the State of Andhra Pradesh or to the State of Telangana under section 77 shall not be varied to his disadvantage except with the previous approval of the Central Government. (2) All services prior to the appointed day rendered by a person,— (a) if he is deemed to have been allocated to any State under section 77, shall be deemed to have been rendered in connection with the affairs of that State; 23 ----- (b) if he is deemed to have been allocated to the Union in connection with the administration of the successor State of Telangana, shall be deemed to have been rendered in connection with the affairs of the Union, for the purposes of the rules regulating his conditions of service. (3) The provisions of section 77 shall not apply in relation to members of any All-India Service. **79. Provisions as to continuance of officers in same post.—Every person who, immediately before** the appointed day, is holding or discharging the duties of any post or office in connection with the affairs of the existing State of Andhra Pradesh in any area which on that day falls within one of the successor States shall continue to hold the same post or office in that successor State, and shall be deemed, on and from that day, to have been duly appointed to the post or office by the Government of, or other appropriate authority in, that successor State: Provided that nothing in this section shall be deemed to prevent a competent authority, on and from the appointed day, from passing in relation to such person any order affecting the continuance in such post or office. **80. Advisory committees.—(1) The Central Government may, by order, establish one or more** Advisory Committees, within a period of thirty days from the date of enactment of the Andhra Pradesh Reorganisation Act, 2014, for the purpose of assisting it in regard to–– (a) the discharge of any of its functions under this Part; and (b) the ensuring of fair and equitable treatment to all persons affected by the provisions of this Part and the proper consideration of any representations made by such persons. (2) The allocation guidelines shall be issued by the Central Government on or after the date of enactment of the Andhra Pradesh Reorganisation Act, 2014 and the actual allocation of individual employees shall be made by the Central Government on the recommendations of the Advisory Committee: Provided that in case of disagreement or conflict of opinion, the decision of the Central Government shall be final: Provided further that necessary guidelines as and when required shall be framed by the Central Government or as the case may be, by the State Advisory Committee which shall be approved by the Central Government before such guidelines are issued. **81. Power of Central Government to give directions.—The Central Government may give such** directions to the State Government of Andhra Pradesh and the State Government of Telangana as may appear to it to be necessary for the purpose of giving effect to the foregoing provisions of this Part and the State Governments shall comply with such directions. **82. Provision for employees of Public Sector Undertakings, etc.—On and from the appointed day,** the employees of State Public Sector Undertakings, corporations and other autonomous bodies shall continue to function in such undertaking, corporation or autonomous bodies for a period of one year and during this period the corporate body concerned shall determine the modalities for distributing the personnel between the two successor States. **83. Provisions as to State Public Service Commission.—(1) The Public Service Commission for the** existing State of Andhra Pradesh shall, on and from the appointed day, be the Public Service Commission for the State of Andhra Pradesh. (2) There shall be constituted a Public Service Commission in accordance with article 315 of the Constitution by the successor State of Telangana, and until such Commissionis constituted, the Union Public Service Commission may, with the approval of the President, agree to serve the needs of the State of Telangana in terms of clause (4) of that article. (3) The persons holding office immediately before the appointed day as the Chairman or other member of the Public Service Commission for the existing State of Andhra Pradesh shall, as from the 24 ----- appointed day, be the Chairman or, as the case may be, the other memberof the Public Service Commission for the State of Andhra Pradesh. (4) Every person who becomes the Chairman or other member of the Public ServiceCommission for the State of Andhra Pradesh on the appointed day under sub-section (3) shall–– (a) be entitled to receive from the Government of the State of Andhra Pradesh conditions of service not less favourable than those to which he was entitled under the provisions applicable to him; (b) subject to the proviso to clause (2) of article 316, hold office orcontinue to hold office until the expiration of his term of office as determined under the provisions applicable to him immediately before the appointed day. (5) The report of the Andhra Pradesh Public Service Commission as to the work done by the Commission in respect of any period prior to the appointed day shall be presented under clause (2) of article 323 to the Governors of the States of Andhra Pradesh and Telangana and the Governor of the State of Andhra Pradesh shall, on receipt of such report, cause a copy thereof together with a memorandum explaining as far as possible, as respects thecases, if any, where the advice of the Commission was not accepted, the reasons for such non-acceptance to be laid before the Legislature of the State of Andhra Pradesh and it shall not be necessary to cause such report or any such memorandum to be laid before the Legislative Assembly of the State of Telangana. PART IX MANAGEMENT AND DEVELOPMENT OF WATER RESOURCES **84. Apex Council for Godavari and Krishna river water resources and their Management** **Boards.—(1) The Central Government shall, on and from the appointed day, constitute an Apex Council** for the supervision of the functioning of the Godavari River Management Board and Krishna River Management Board. (2) The Apex Council shall consist of––– (a) Minister of Water Resources, Government of India—Chairperson; (b) Chief Minister of State of Andhra Pradesh—Member; (c) Chief Minister of State of Telangana—Member. (3) The functions of the Apex Council shall include–– (i) supervision of the functioning of the Godavari River Management Board and Krishna River Management Board; (ii) planning and approval of proposals for construction of new projects, if any, based on Godavari or Krishna river water, after getting the proposal appraised and recommended by the River Management Boards and by the Central Water Commission, wherever required; (iii) resolution of any dispute amicably arising out of the sharing of river waters through negotiations and mutual agreement between the successor States; (iv) reference of any disputes not covered under Krishna Water Disputes Tribunal, to a Tribunal to be constituted under the Inter-State River Water DisputesAct, 1956 (33 of 1956). **85. Constitution and functions of River Management Board.—(1) The Central Government shall** constitute two separate Boards to be called the Godavari River Management Board and Krishna River Management Board (to be known as the Board), within a period of sixty days from the appointed day, for the administration, regulation, maintenance and operation of such projects, as may be notified by the CentralGovernment from time to time. (2) The headquarters of Godavari River Management Board shall be located in the successor State of Telangana and of the Krishna River Management Board shall be located in the successor State of Andhra Pradesh. 25 ----- (3) The Godavari River Management Board and Krishna River Management Board shall be autonomous bodies under the administrative control of the Central Government, and shall comply with such directions as may, from time to time, be given to them by the Central Government. (4) Each Board shall consist of the following Chairperson and Members, namely:–– ` (a) a Chairperson not below the rank or level of Secretary or Additional Secretary to the Government of India to be appointed by the Central Government; (b) two members, to be nominated by each of the successor States, of which one shall be the technical member not below the rank of Chief Engineer and the other administrative member to represent the concerned States; (c) one expert to be nominated by the Central Government. (5) Each Board shall have a full-time Member Secretary, not below the rank of Chief Engineer in the Central Water Commission, to be appointed by the Central Government. (6) The Central Government shall create such number of posts of the rank of Chief Engineer in the Central Water Commission, as it considers necessary. (7) Each Board shall be assisted in the day to day management of reservoirs by the Central Industrial Security Force constituted under the Central Industrial Security Force Act, 1968 (50 of 1968), on such terms and conditions as the Central Government may specify. (8) The functions of each Board shall include–– (a) the regulation of supply of water from the projects to the successor States having regard to–– (i) awards granted by the Tribunals constituted under the Inter-State River Water Disputes Act, 1956 (33 of 1956); (ii) any agreement entered into or arrangement made covering the Government of existing State of Andhra Pradesh and any other State or Union territory; (b) the regulation of supply of power generated to the authority in-charge ofthe distribution of power having regard to any agreement entered into or arrangement made covering the Government of the existing State of Andhra Pradesh and any other State or Union territory; (c) the construction of such of the remaining on-going or new works connected with the development of the water resources projects relating to the rivers or their tributaries through the successor States as the Central Government may specify by notification in the Official Gazette; (d) making an appraisal of any proposal for construction of new projects on Godavari or Krishna rivers and giving technical clearance, after satisfying that such projects do not negatively impact the availability of water as per the awards of the Tribunals constituted under the Inter-State River Water Disputes Act, 1956 (33 of 1956) for the projects already completed or taken up before the appointed day; and (e) such other functions as the Central Government may entrust to it on the basis of the principles specified in the Eleventh Schedule. **86. Staff of the Management Board.––(1) The Board shall employ such staff as it may consider** necessary for the efficient discharge of its functions under this Act and such staff shall, at the first instance, be appointed on deputation from the successor States in equal proportion and absorbed permanently in the Board. (2) The Government of the successor States shall at all times provide the necessary funds to the Board to meet all expenses (including the salaries and allowances of the staff) required for the discharge of its functions and such amounts shall be apportioned between the States concerned in such proportion as the Central Government may, having regard to the benefits to each of the said States, specify. 26 ----- (3) The Board may delegate such of its powers, functions and duties as it may deem fit to the Chairman of the said Board or to any officer subordinate to the Board. (4) The Central Government may, for the purpose of enabling the Board tofunctionefficiently, issue such directions to the State Governments concerned, or any other authority, and the State Governments, or the other authority, shall comply with such directions. **87. Jurisdiction of Board.––(1) The Board shall ordinarily exercise jurisdiction on Godavari and** Krishna riversin regard to any of the projects over headworks (barrages, dams, reservoirs, regulating structures), part of canal network and transmission lines necessary to deliver water orpower to the States concerned, as may be notified by the Central Government, having regard to the awards, if any, made by the Tribunals constituted under the Inter-State River Water Disputes Act, 1956 (33 of 1956). (2) If any question arises as to whether the Board has jurisdiction under sub-section (1) over any project referred thereto, the same shall be referred to the Central Government for decision thereon. **88. Power of Board to make regulations.––The Board may make regulations consistent with the Act** and the rules made thereunder, to provide for— (a) regulating the time and place of meetings of the Board and the procedure to be followed for the transaction of business at such meetings; (b) delegation of powers and duties of the Chairman or any officer of the Board; (c) the appointment and regulation of the conditions of service of the officers and other staff of the Board; (d) any other matter for which regulations are considered necessary by the Board. **89. Allocation of water resources.––The term of the Krishna Water Disputes Tribunal shall be** extended with the following terms of reference, namely:–– (a) shall make project-wise specific allocation, if such allocation have not been made by a Tribunal constituted under the Inter-State River Water Disputes Act, 1956 (33 of 1956); (b) shall determine an operational protocol for project-wise release of water in the event of deficit flows. _Explanation.––For the purposes of this section, it is clarified that the project specific awards already_ made by the Tribunal on or before the appointed day shall be binding on the successor States. **90. Polavaram Irrigation Project to be a national project.––(1) The Polavaram Irrigation Project is** hereby declared to be a national project. (2) It is hereby declared that it is expedient in the public interest that the Union should take under its control the regulation and development of the Polavaram Irrigation Project for the purposes of irrigation. (3) The consent for Polavaram Irrigation Project shall be deemed to have been given by the successor State of Telangana. (4) The Central Government shall execute the project and obtain all requisite clearances including environmental, forests, and rehabilitation and resettlement norms. **91.Arrangements on Tungabhadra Board.––(1) The Governments of the successor States of** Andhra Pradesh and Telangana shall replace the existing State of Andhra Pradesh on the Tungabhadra Board. (2) The Tungabhadra Board shall continue to monitor the release of water to High Level Canal, Low Level Canal and Rajolibanda Diversion Scheme. 27 ----- PART X INFRASTRUCTURE AND SPECIAL ECONOMIC MEASURES **92. Successor States to follow principles, guidelines, etc., issued by Central Government.––The** principles, guidelines, directions and orders issued by the Central Government,on and from the appointed day, on matters relating to coal, oil and natural gas, and power generation, transmission and distribution as enumerated in the Twelfth Schedule shall be implemented by the successor States. **93.Measures for progress and development of successor States.––The Central Government shall** take all necessary measures as enumerated in the Thirteenth Schedule for the progress and sustainable development of the successor States within a period of ten years from the appointed day. **94. Fiscal measures including tax incentives.––(1) The Central Government shall take appropriate** fiscal measures, including offer of tax incentives, to the successor States, to promote industrialisation and economic growth in both the States. (2) The Central Government shall support the programmes for the development of backward areas in the successor States, including expansion of physical and social infrastructure. (3) The Central Government shall provide special financial support for the creation of essential facilities in the new capital of the successor State of Andhra Pradesh includingthe Raj Bhawan, High Court, Government Secretariat, Legislative Assembly, Legislative Council, and such other essential infrastructure. (4) The Central Government shall facilitate the creation of a new capital for the successor State of Andhra Pradesh, if considered necessary, by denotifying degraded forest land. PART XI ACCESS TO HIGHER EDUCATION **95. Equal opportunities for quality higher education to all students.––In order to ensure equal** opportunities for quality higher education to all studentsin the successor States, the existing admission quotas in all government or private, aided orunaided, institutions of higher, technical and medical education in so far as it is provided under article 371D of the Constitution, shall continue as such for a period of ten years during which the existing common admission process shall continue. PART XII LEGAL ANDMISCELLANEOUS PROVISIONS **96. Amendment of article 168 of the Constitution.––In sub-clause (a) of clause (1) of article 168 of** the Constitution, for the word “Tamil Nadu”, the words “Tamil Nadu, Telangana” shall be substituted. **97. Amendment of article 371D of the Constitution.––On and from the appointed day, in article** 371D of the Constitution,–– (a) in the marginal heading, for the words “the State of Andhra Pradesh”, the words “the State of Andhra Pradesh or the State of Telangana” shall be substituted; (b) for clause (1), the following clause shall be substituted, namely:–– “(1) The President may by order made with respect to the State of Andhra Pradesh or the State of Telangana, provide, having regard to the requirement of each State, for equitable opportunities and facilities for the people belonging to different parts of such State, in the matter of public employment and in thematter of education, and different provisions may be made for various parts of the States.”; (c) in clause (3), for the words “the State of Andhra Pradesh”, the words “the State of Andhra Pradesh and for the State of Telangana” shall be substituted. **98. Amendment of section 15A of Act 43 of 1951.––In section 15A of the Representation of the** People Act, 1951, after the words and figures “under the Tamil Nadu Legislative Council Act, 2010 28 ----- (16 of 2010)”, the words and figures “and constituting the Legislative Council of the State of Telangana under the Andhra Pradesh Reorganisation Act, 2014” shall be inserted. **99. Amendment of section 15 of Act 37 of 1956.––On and from the appointed day, in section 15 of** the States Reorganisation Act,1956, in clause (e), for the words “Andhra Pradesh”, the words “Andhra Pradesh and Telangana” shall be substituted. **100. Territorial extent of laws.––The provisions of Part II shall not be deemed to have affected any** change in the territories to which the Andhra Pradesh Land Reforms (Ceiling on Agricultural Holdings) Act, 1973 (Andhra Pradesh Act No. 1 of 1973) and any other law in force immediately before the appointed day extends orapplies, and territorial references in any such law to the State of Andhra Pradesh shall, until otherwise provided by a competent Legislature or other competent authority be construedas meaning the territories within the existing State of Andhra Pradesh before the appointedday. **101. Power to adapt laws.––For the purpose of facilitating the application in relation to the State of** Andhra Pradesh or the State of Telangana of any law made before the appointed day, the appropriate Government may, before the expiration of two years from that day, by order, make suchadaptations and modifications of the law, whether by way of repeal or amendment, as may be necessary or expedient, and thereupon every such law shall have effect subject to the adaptations and modifications so made until altered, repealed or amended by a competent Legislature or other competent authority. _Explanation.––In this section, the expression “appropriate Government” means as respects any law_ relating to a matter enumerated in the Union List, the Central Government, and as respects any other law in its application to a State, the State Government. **102. Power to construe laws.––Notwithstanding that no provision or insufficient provision has been** madeunder section 102 for the adaptation of a law made before the appointed day, any court, tribunal or authority, required or empowered to enforce such law may, for the purpose offacilitating its application in relation to the State of Andhra Pradesh or the State of Telangana, construe the law in such manner, without affecting the substance, as may be necessary or proper in regard to the matter before the court, tribunal or authority. **103. Power to name authorities, etc., for exercising statutory functions.––The Government of the** State of Telangana, as respects the transferred territory may, by notification in the Official Gazette, specify the authority, officer or person who, onor after the appointed day, shall be competent to exercise such functions exercisable underany law in force on that day as may be mentioned in that notification and such law shall have effect accordingly. **104. Legal proceedings.––Where, immediately before the appointed day, the existing State of** Andhra Pradesh is a party to any legal proceedings with respect to any property, rights or liabilities subject to apportionment between the States of Andhra Pradesh and Telangana under this Act, the State of Andhra Pradesh or the State of Telangana which succeeds to, or acquires a share in, that property or those rights or liabilities by virtue of any provision of this Act shall be deemed to be substituted for the existing State of Andhra Pradesh or added as a party to those proceedings, and the proceedings may continue accordingly. **105. Transfer of pending proceedings.––(1) Every proceeding pending immediately before the** appointed day before acourt (other than High Court), tribunal, authority or officer in any area which on that day falls within the State of Andhra Pradesh shall, if it is aproceeding relating exclusively to the territory, which as from that day are the territories of the State of Telangana, stand transferred to the corresponding court, tribunal, authority or officer of that State. (2) If any question arises as to whether any proceeding should stand transferred under sub-section (1) it shall be referred to the High Court at Hyderabad and the decision of that High Court shall be final. (3) In this section–– (a) “proceeding” includes any suit, case or appeal; and 29 ----- (b) “corresponding court, tribunal authority or officer” in the State of Telanganameans–– (i) the court, tribunal, authority or officer in which, or before whom, the proceeding would have laid if it had been instituted after the appointed day; or (ii) in case of doubt, such court, tribunal, authority, or officer in that State, as may be determined after the appointed day by the Government of that State or the Central Government, as the case may be, or before the appointed day by the Government of the existing State of Andhra Pradesh to be the corresponding court, tribunal, authority or officer. **106. Right of pleaders to practise in certain cases.––Any person who, immediately before the** appointed day, is enrolled as a pleader entitled to practise in any subordinate court in the existing State of Andhra Pradesh shall, for a period of one year from that day, continue to be entitled to practise in those courts, notwithstanding that the whole or any part of the territories within the jurisdiction of those courts has been transferred to the State of Telangana. **107. Effect of provisions of the Act inconsistent with other laws.––The provisions of this Act shall** have effect notwithstanding anything inconsistent there with contained in any other law. **108. Power to remove difficulties.––(1) If any difficulty arises in giving effect to the provisions of** this Act, the President may, by order do anything not inconsistent with such provisions which appears to him to be necessary or expedient for the purpose of removing the difficulty: Provided that no such order shall be made after the expiry of a period of three years from the appointed day. (2) Every order made under this section shall be laid before each House of Parliament. 30 ----- THE FIRST SCHEDULE (See section 13) (i) Of the five sitting members whose term of office will expire on 9th April, 2014,namely, Shri T. Subbarami Reddy, Shri Nandi Yellaiah, Shri Mohammed Ali Khan,Smt. T. Ratna Bai and Shri K.V.P. Ramachandra Rao, such two as the Chairman of the Councilof States may determine by drawing lots shall be deemed to have been elected to fill two ofthe seven seats allotted to the State of Telangana and the other three sitting members shallbe deemed to have been elected to fill three of the eleven seats allotted to the State of Andhra Pradesh. (ii) Of the six sitting members whose term of office will expire on 21st June, 2016, namely, Shri Jesudasu Seelam, Shri Jairam Ramesh, Shri N. Janardhana Reddy,Shri V. Hanumantha Rao, Smt. Gundu Sudharani and Shri Y.S. Chowdary, such two as theChairman of the Council of States may determine by drawing lots shall be deemed to havebeen elected to fill two of the seats allotted to the State of Telangana and the other foursitting members shall be deemed to have been elected to fill four of the seats allotted to theState of Andhra Pradesh. (iii) Of the six sitting members representing the State of Andhra Pradesh whose termof office will expire on 2nd April, 2018, namely, Shri Ananda Baskar Rapolu, Shri K. Chiranjeevi,Shri Palvai Govardhana Reddy, Smt. Renuka Chowdhury, Shri T. Devender Goud and Shri C.M. Ramesh, such three as the Chairman of the Council of States may determine bydrawing lots shall be deemed to have been elected to fill three of the seats allotted to theState of Telangana and the other three sitting members shall be deemed to have been elected to fill the three of the seats allotted to the State of Andhra Pradesh. (iv) The term of one seat which is to expire on 9th April, 2014 and has become vacantdue to resignation of Shri Nandamuri Harikrishna on 22nd August, 2014, shall be allotted tothe State of Andhra Pradesh. 31 ----- THE SECOND SCHEDULE _(See section 15)_ AMENDMENTS TO THE DELIMITATION OF PARLIAMENTARY AND ASSEMBLY CONSTITUENCIES ORDER, 2008 In the Delimitation of Parliamentary and Assembly Constituency Order, 2008,–– 1. In Schedule I,–– (i) for serial number 1 relating to Andhra Pradesh and the entries relating thereto, the following shall be substituted, namely:–– Serial Number Number of seats in the Number of seats in the House House as constituted on as subsequently constituted as and Name of the basis of the Delimitation per the Delimitation of the State/Union of Parliamentary and Parliamentary and Assembly Assembly Constituencies Constituencies Order, 2008 Territory Order, 1976 as amended from time to time Total Reserved Reserved for Total Reserved for Reserved for the the the Scheduled for the Scheduled Scheduled Scheduled Castes Tribes Castes Tribes 12 3 4 5 6 7 “1. Andhra 42 6 2 2541”; Pradesh (ii) after serial number 24 relating to Tamil Nadu and the entries relating thereto, the following shall be inserted, namely:–– 1234567 “25. Telangana - - -17 3 2”; (iii) serial numbers 25 to 28 shall be renumbered as serial numbers 26 to 29, respectively. 2. In Schedule II,–– (iv) for serial number 1 relating to Andhra Pradesh and the entries relatingthereto, the following shall be substituted, namely:–– Serial Number Number of seats in the Number of seats in the House House as constituted on as subsequently constituted as and Name of the basis of the Delimitation per the Delimitation of the State/Union of Parliamentary and Parliamentary and Assembly Assembly Constituencies Constituencies Order, 2008 Territory Order, 1976 as amended from time to time Total Reserved Reserved for Total Reserved for Reserved for the the the Scheduled for the Scheduled Scheduled Scheduled Castes Tribes Castes Tribes 1 2 3 4 5 6 7 “1. Andhra 294 3915 17529 7”; Pradesh 32 |shall be substituted, n|namely:––|Col3|Col4|Col5|Col6|Col7| |---|---|---|---|---|---|---| |Serial Number and Name of the State/Union Territory|Number of seats in the House as constituted on the basis of the Delimitation of Parliamentary and Assembly Constituencies Order, 1976 as amended from time to time|||Number of seats in the House as subsequently constituted as per the Delimitation of Parliamentary and Assembly Constituencies Order, 2008||| ||Total|Reserved for the Scheduled Castes|Reserved for the Scheduled Tribes|Total|Reserved for the Scheduled Castes|Reserved for the Scheduled Tribes| |12 3 4 5 6 7||||||| |“1. Andhra 42 6 2 2541”; Pradesh||||||| |shall be substituted, n|namely:––|Col3|Col4|Col5|Col6|Col7| |---|---|---|---|---|---|---| |Serial Number and Name of the State/Union Territory|Number of seats in the House as constituted on the basis of the Delimitation of Parliamentary and Assembly Constituencies Order, 1976 as amended from time to time|||Number of seats in the House as subsequently constituted as per the Delimitation of Parliamentary and Assembly Constituencies Order, 2008||| ||Total|Reserved for the Scheduled Castes|Reserved for the Scheduled Tribes|Total|Reserved for the Scheduled Castes|Reserved for the Scheduled Tribes| ----- (v) after serial number 24 relating to Tamil Nadu and the entries relating thereto, the following shall be inserted, namely:–– 1 2 3 4 5 6 7 “25. Telangana - - -119 19 12”; (vi) serial numbers 25 to 28 shall be renumbered as serial numbers 26 to 29, respectively. 3. For Schedule III, the following shall be substituted, namely:–– “SCHEDULE – III **ANDHRA PRADESH** TABLE A – ASSEMBLY CONSTITUENCIES **Sl.No. & Name Extent of Assembly Constituencies** 1 2 **1—DISTRICT: SRIKAKULAM** **1. Ichchapuram** Kanchili, Ichchapuram, Kaviti and Sompeta Mandals. **2. Palasa** Palasa, Mandasa and Vajrapukothuru Mandals. **3. Tekkali** Nandigam, Tekkali, Santhabommali and Kotabommali Mandals. **4. Pathapatnam** Pathapatnam, Meliaputti, L.N. Pet, Kothur and Hiramandalam Mandals. **5. Srikakulam** Gara and Srikakulam Mandals. **6. Amadalavalasa** Amadalavalasa, Ponduru, Sarubujjili and Burja Mandals. **7. Etcherla** G. Sigadam, Laveru, Ranastalam and Etcherla Mandals. **8. Narasannapeta** Jalumuru, Narasannapeta, Saravakota and Polaki Mandals. **9. Rajam (SC)** Vangara, Regidi Amadalavalasa, Rajam and Santhakaviti Mandals. **10. Palakonda (ST)** Seethampeta, Bhamini, Palakonda and Veeraghattam Mandals. **2—DISTRICT: VIZIANAGARAM** **11. Kurupam (ST)** Kurupam, Gummalakshmipuram, Jiyyammavalasa, Komarada and Garugubilli Mandals. **12. Parvathipuram (SC)** Parvathipuram, Seethanagaram and Balijipeta Mandals. **13. Salur (ST)** Salur, Pachipenta, Mentada and Makkuva Mandals. **14. Bobbili** Bobbili, Ramabhadrapuram, Badangi and Therlam Mandals. **15. Cheepurupalli** Merakamudidam, Garividi, Cheepurupalli and GurlaMandals. **16. Gajapathinagaram** Gajapathinagaram, Bondapalli, Gantyada and Dattirajeru Mandals; and Vizinigiri, Thandrangi, Jannivalasa, Venne, Sasanapalli, Attada, Bheemasingi, Somayajulapalem, Lotlapalli, Mokhasa Kothavalasa, Kumaram and Annamrajupeta villages of Jami Mandal. **17. Nellimarla** Nellimarla, Pusapatirega, Denkada and Bhogapuram Mandals. **18. Vizianagaram** Vizianagaram Mandal. **19. Srungavarapukota** Srungavarapukota, Vepada, Lakkavarapukota and Kothavalasa Mandals; and Jami Mandal (Except 12 villagesi.e. Vizinigiri, Thandrangi, Jannivalasa, Venne, Sasanapalli, Attada, Bheemasingi, Somayajulapalem, Lotlapalli, Mokhasa Kothavalasa, Kumaramand Annamrajupeta). 33 ----- 1 2 **3—DISTRICT : VISAKHAPATNAM** **20. Bhimili** Anandapuram, Padmanabham, Bheemunipatnam and Visakhapatnam Rural Mandals. **21. Visakhapatnam East** Visakhapatnam (Urban) Mandal (Part) Visakhapatnam (M Corp.)— Ward No. 1 to 11 and 53 to 55. **22. Visakhapatnam South** Visakhapatnam (Urban) Mandal (Part) Visakhapatnam (M Corp.)— Ward No. 12to 34, 42 to 43 and 46 to 48. **23. Visakhapatnam North** Visakhapatnam (Urban) Mandal (Part) Visakhapatnam (M Corp.)— Ward No.36 to 41, 44 to 45 and 49 to 52. **24. Visakhapatnam West** Visakhapatnam (Urban) Mandal (Part) Visakhapatnam (M Corp.)— Ward No.35 and 56 to 71. **25. Gajuwaka** Gajuwaka Mandal (Including Gajuwaka Municipality). **26. Chodavaram** Chodavaram, Butchayyapeta, Ravikamatham andRolugunta Mandals. **27. Madugula** Madugula, Cheedikada, Devarapalle and K. KotapaduMandals. **28. Araku Valley (ST)** Munchingiputtu, Pedabayalu, Dumbriguda, Araku Valley, Hukumpetaand Ananthagiri Mandals. **29. Paderu (ST)** Paderu, G. Madugula, Chintapalle, Gudem Kotha Veedhiand Koyyuru Mandals. **30. Anakapalle** Kasimkota and Anakapalle Mandals. **31. Pendurthi** Pedagantyada (excluding areas included in Gajuwaka Municipality), Paravada, Sabbavaram Pendurthi Mandals. **32. Yelamanchili** Rambilli, Munagapaka, Atchutapuram and Yelamanchili Mandals. **33. Payakaraopet (SC)** Kotauratla, Nakkapalle, Payakaraopeta and S. Rayavaram Mandals. **34. Narsipatnam** Nathavaram, Golugonda, Narsipatnam and Makavarapalem Mandals. **4—DISTRICT: EAST GODAVARI** **35. Tuni** Thondangi, Kotananduru and Tuni Mandals. **36. Prathipadu** Sankhavaram, Prathipadu, Yeleswaram and Rowthulapudi Mandals. **37. Pithapuram** Gollaprolu, Pithapuram and Kothapalle Mandals. **38. Kakinada Rural** Karapa and Kakinada Rural Mandals. Kakinada Urban Mandal (Part) Kakinada Urban (M) (Part) Kakinada (M)—Ward No.66 to 70. **39. Peddapuram** Samalkota and Peddapuram Mandals. **40. Anaparthy** Pedapudi, Biccavolu, Rangampeta and AnaparthyMandals. **41. Kakinada City** Kakinada Urban Mandal (Part) Kakinada Urban (M) (Part) Kakinada (M)—Ward No.1 to 65. **42. Ramachandrapuram** Kajuluru, Ramachandrapuram and Pamarru Mandals. **43. Mummidivaram** Polavaram, Mummidivaram, Thallarevu and Katrenikona Mandals. **44. Amalapuram (SC)** Uppalaguptam, Allavaram and Amalapuram Mandals. **45. Razole (SC)** Razole, Malikipuram and Sakhinetipalle Mandals. Mamidikuduru Mandal (Part) Mamidikuduru, Geddada, Edarada, Komarada, Magatapalle and Gogannamatham Villages. **46. Gannavaram (SC)** P.Gannavaram, Ambajipeta and Ainavilli Mandals. Mamidikuduru Mandal (Part) Pedapatnam, Appanapalle, Botlakurru Doddavaram, Pasarlapudi, Pedapatnam, Nagaram, Mogalikuduru, Makanapalem, Lutukurru, Pasarlapudilanka and Adurru Villages. 34 ----- 1 2 **47. Kothapeta** Ravulapalem, Kothapeta, Atreyapuram and Alamuru Mandals. **48. Mandapeta** Mandapeta, Rayavaram and Kapileswarapuram Mandals. **49. Rajanagaram** Rajanagaram, Seethanagaram and Korukonda Mandals. **50. Rajahmundry City** Rajahmundry Urban Mandal (Part) Rajahmundry (M Corp.) (Part) Rajahmundry (M Corp.) - Ward No. 7 to 35 and 42 to 89. **51. Rajahmundry Rural** Kadiam and Rajahmundry Rural Mandals. Rajahmundry Urban Mandal (Part) Rajahmundry (M Corp.) (Part) Rajahmundry (M Corp.) - Ward No.1 to 6, 36 to 41 and 90. **52. Jaggampeta** Gokavaram, Jaggampeta, Gandepalle and Kirlampudi Mandals. **1[53. Rampachodavaram (ST)** Maredumilli, Devipatnam, Y. Ramavaram, Addateegala, Gangavaram, Rampachodavaram, Rajavommangi, Kunavaram, Chintoor, Vararamachandrapuram, and Nellipaka Mandals.] **5—DISTRICT : WEST GODAVARI** **54. Kovvur (SC)** Kovvur, Chagallu and Tallapudi Mandals. **55. Nidadavole** Nidadavole, Undrajavaram and Peravali Mandals. **56. Achanta** Penugonda, Achanta and Penumantra Mandals. Poduru Mandal (Part) Kavitam, Jagannadhapuram, Pandithavilluru, Miniminchilipadu, Poduru, Pemmarajupolavaram and Gummaluru Villages. **57. Palacole** Palacole and Yelamanchili Mandals. Poduru Mandal (Part) Kommuchikkala, Vedangi, Jinnuru, Mattaparru, Penumadam, Ravipadu and Vaddiparru Villages. **58. Narasapuram** Mogalthur and Narasapuram Mandals. **59. Bhimavaram** Veeravasaram and Bhimavaram Mandals. Bhimavaram (M+OG) Bhimavaram (M) - Ward No. 1 to 27 China-Amiram (OG) (Part) - Ward No. 28 Rayalam (R) (OG) (Part) - Ward No. 29. **60. Undi** Kalla, Palacoderu, Undi and Akividu Mandals. **61. Tanuku** Tanuku, Attili and Iragavaram Mandals. **62. Tadepalligudem** Tadepalligudem and Pentapadu Mandals. **63. Unguturu** Unguturu, Bhimadole, Nidamarru and Ganapavaram Mandals. **64. Denduluru** Pedavegi, Pedapadu and Denduluru Mandals. Eluru Mandal (Part). Malkapuram, Chataparru, Jalipudi, Katlampudi, Madepalli, Manuru, Sreeparru, Kalakurru, Komatilanka, Gudivakalanka, Kokkirailanka, Pydichintapadu and Prathikolla lanka Villages. **65. Eluru** Eluru Mandal (Part) Eluru (M) (Part) Eluru (M) - Ward No. 1 to 28 Eluru Mandal (Part) Eluru Mandal (OG) (Part) Satrampadu (OG) - Ward No.29 Gavaravaram (OG) - Ward No.30 Tangellamudi (R) (OG) - Ward No.31 Komadavolu (OG) (Part) - Ward No.32 Eluru (R) (OG) (Part) - Ward No.33 Eluru Mandal (Part) 1. Subs. by notification No. G.S.R. 311(E), dated 23-4-2015. 35 ----- 1 2 Chodimella, Sanivarapupeta, Eluru (Rural), Komadavole (Rural) and Ponangi Villages. **66. Gopalapuram (SC)** Dwaraka Tirumala, Nallajerla, Devarapalli and Gopalapuram Mandals. **1[67. Polavaram (ST)** Polavaram, Buttayagudem, Jeelugumilli, Koyyalagudem, T. Narasapuram, Kukunoor and Velairpadu Mandals.] **68. Chintalapudi (SC)** Chintalapudi, Lingapalem, Kamavarapukota and Jangareddigudem Mandals. **6—DISTRICT : KRISHNA** **69. Tiruvuru (SC)** Vissannapet, Gampalagudem, Tiruvuru and A. Konduru Mandals. **70. Nuzvid** Agiripalli, Chatrai, Musunuru and Nuzvid Mandals. **71. Gannavaram** Bapulapadu, Gannavaram and Unguturu Mandals Vijayawada (Rural) Mandal (Part) Ambapuram, Phiryadi Nainavaram, Pathapadu, Nunna, Enikepadu, Nidamanuru, Done Atkuru, Gudavalli, Prasadampadu and Ramavarappadu Villages. **72. Gudivada** Gudlavalleru, Gudivada and Nandivada Mandals. **73. Kaikalur** Mandavalli, Kaikalur, Kalidindi and Mudinepalle Mandals. **74. Pedana** Gudur, Pedana, Bantumilli and Kruthivennu Mandals. **75. Machilipatnam** Machilipatnam Mandal. **76. Avanigadda** Challapalli, Mopidevi, Avanigadda, Nagayalanka, Koduru and Ghantasala Mandals. **77. Pamarru (SC)** Pamarru, Thotlavalluru, Pamidimukkala, Movva and Pedaparupudi Mandals. **78. Penamaluru** Kankipadu, Vuyyuru and Penamaluru Mandals. **79. Vijayawada West** Vijayawada Urban Mandal (Part) Vijayawada Urban (M.Corp) (Part) Vijayawada (M Corp.) - Ward No.1 to 13, 15 to 19, 75 and 76. **80. Vijayawada Central** Vijayawada Urban Mandal (Part) Vijayawada Urban (M.Corp) (Part) Vijayawada (M Corp.)—Ward No.14, 20 to 31, 33 to 35, 42 to 44, 49, 77 and 78. **81. Vijayawada East** Vijayawada Urban Mandal (Part) Vijayawada Urban (M.Corp) (Part) Vijayawada (M Corp.)—Ward No. 32, 36 to 41, 45 to 48 and 50 to 74. **82. Mylavaram** Ibrahimpatnam, G.Konduru, Mylavaram and Reddigudem Mandals. Vijayawada (Rural) Mandal (Part) Kotturu, Tadepalle, Vemavaram, Shabada, Paidurupadu, Rayanapadu, Gollapudi and Jakkampudi Villages. **83. Nandigama (SC)** Kanchikacherla, Chandarlapadu and Veerullapadu Mandals. Nandigama Mandal (Part) Pedavaram, Thakkellapadu, Munagacherla, Latchapalem, Lingalapadu, Adiviravulapadu, Chandapuram, Kethaveeruni Padu, Kanchela, Ithavaram, Ambarupeta, Nandigama, Satyavaram, Pallagiri and Raghavapuram Villages. 1. Subs. by notification No. G.S.R. 311(E), dated 23-4-2015. 36 ----- 1 2 **84. Jaggayyapeta** Vatsavai, Jaggayyapeta and Penuganchiprolu Mandals Nandigama Mandal (Part) Magallu, Konduru, Ramireddipalle, Jonnalagadda, Konathamatmakuru, Torragudipadu, Damuluru, Somavaram, Rudravaram and Gollamudi Villages. **7 – DISTRICT : GUNTUR** **85. Pedakurapadu** Bellamkonda, Atchampet, Krosuru, Amaravathi and Pedakurapadu Mandals. **86. Tadikonda (SC)** Tulluru, Tadikonda, Phirangipuram and Medikonduru Mandals. **87. Mangalagiri** Tadepalli, Mangalagiri and Duggirala Mandals. **88. Ponnuru** Ponnuru, Chebrolu and Pedakakani Mandals. **89. Vemuru (SC)** Vemuru, Kolluru, Tsunduru, Bhattiprolu and Amarthaluru Mandals. **90. Repalle** Nizampatnam, Nagaram, Cherukupalli and Repalle Mandals. **91. Tenali** Kollipara and Tenali Mandals. **92. Bapatla** Bapatla, Pittalavanipalem and Karlapalem Mandals. **93. Prathipadu (SC)** Guntur Mandal (except M.Corp.) Vatticherukuru, Prathipadu, Pedanandipadu and Kakumanu Mandals. **94. Guntur West** Guntur Mandal (Part) Guntur (M. Corp) (Part) Guntur (M Corp.)—Ward No.1 to 6 and 24 to 28. **95. Guntur East** Guntur Mandal (Part) Guntur (M. Corp) (Part) Guntur (M Corp.)—Ward No.7 to 23. **96. Chilakaluripet** Nadendla, Chilakaluripet and Edlapadu Mandals. **97. Narasaraopet** Rompicherla and Narasaraopet Mandals. **98. Sattenapalle** Sattenapalli, Rajupalem, Nekarikallu and Muppalla Mandals. **99. Vinukonda** Bollapalli, Vinukonda, Nuzendla, Savalyapuram and Ipur Mandals. **100. Gurajala** Gurajala, Dachepalli, Piduguralla and Machavaram Mandals. **101. Macherla** Macherla, Veldurthi, Durgi, Rentachintala and Karempudi Mandals. **8 – DISTRICT: PRAKASAM** **102. Yerragondapalem (SC)** Yarragondapalem and Pedda Araveedu, Pullalacheruvu, Tripuranthakam, Dornala and Peda Araveedu Mandals. **103. Darsi** Donakonda, Kurichedu, Mundlamuru, Darsi and ThallurMandals. **104. Parchur** Yeddanapudi, Parchur, Karamchedu, Inkollu, Chinaganjamand Martur Mandals. **105. Addanki** J. Panguluru, Addanki, Santhamaguluru, Ballikurava andKorisapadu Mandals. **106. Chirala** Chirala and Vetapalem Mandals. **107. Santhanuthalapadu (SC)** Naguluppalapadu, Maddipadu, Chimakurthi and Santhanuthalapadu Mandals. **108. Ongole** Ongole and Kothapatnam Mandals. **109. Kandukur** Kandukur, Lingasamudram, Gudluru, Ulavapadu andVolivetivaripalem Mandals. **110. Kondapi (SC)** Singarayakonda, Kondapi, Tangutur, Jarugumalli, Ponnaluru and Marripudi Mandals. 37 ----- 1 2 **111. Markapuram** Konakanamitla, Podili, Markapur and Tarlupadu Mandals. **112. Giddalur** Bestavaripeta, Racherla, Giddalur, Komarolu, Cumbum and Ardhaveedu Mandals. **113. Kanigiri** Hanumanthunipadu, Chandrasekharapuram, Pamur, Veligandla, Pedacherlopalle and Kanigiri Mandals. **9 – DISTRICT: NELLORE** **114. Kavali** Kavali, Bogole, Allur and Dagadarthi Mandals. **115. Atmakur** Chejerla, Atmakur, Anumasamudrampeta, Marripadu, Sangam and Ananthasagaram Mandals. **116. Kovur** Vidavalur, Kodavalur, Kovur, Buchireddipalem and Indukurpet Mandals. **117. Nellore City** Nellore Mandal (Part) Nellore Mandal (M+OG) (Part) Nellore (M)—Ward No.1 to 15, 27, 28 and 31 to 44. **118. Nellore Rural** Nellore Mandal (Part) Golla Kandukur, Sajjapuram, Vellanti, Kandamur, Upputur, South Mopur, Mogallapalem, Mattempadu, Amancherla, Mannavarappadu, Mulumudi, Devarapalem, Pottepalem, Akkacheruvupadu, Ogurupadu, Ambapuram, Donthali, Buja, Buja Nellore (Rural), Kallurpalle (Rural), Kanuparthipadu, Allipuram (Rural), Gudipallipadu, Pedda, Cherukur, Chintareddipalem, Visavaviletipadu, Gundlapalem, Kakupalle-I, Kakupalle-II (Madaraja Gudur) and Penubarthi Villages. Nellore Mandal (M+OG) (Part) Nellore (M)—Ward No. 16 to 26, 29 and 30 Allipuram (OG) (Part)—Ward No. 45 Kallurpalle (OG) (Part)—Ward No. 46 Buja Buja Nellore (OG) (Part)—Ward No. 47 Nellore (Bit.1) (OG)—Ward No. 48. **119. Sarvepalli** Podalakur, Thotapalligudur, Muthukur, Venkatachalam andManubolu Mandals. **120. Gudur (SC)** Gudur, Chillakur, Kota, Vakadu and Chittamur Mandals. **121. Sullurpeta (SC)** Ojili, Naidupet, Pellakur, Doravarisatram, Sullurpeta andTada Mandals. **122. Venkatagiri** Kaluvoya, Rapur, Sydapuram, Dakkili, Venkatagiri and Balayapalle Mandals. **123. Udayagiri** Jaladanki, Seetharamapuram, Udayagiri, Varikuntapadu, Vinjamur, Duttalur, Kaligiri and Kondapuram Mandals. **10 – DISTRICT: KADAPA** **124. Badvel (SC)** Kalasapadu, B. Kodur, Sri Avadhutha Kasinayana, Porumamilla, Badvel, Gopavaram and Atlur Mandals. **125. Rajampet** Sidhout, Vontimitta, Nandalur, Rajampet, Veeraballe and T Sundupalle Mandals. **126. Kadapa** Kadapa Mandal. **127. Kodur (SC)** Penagalur, Chitvel, Pullampeta, Obulavaripalle and Kodur Mandals. **128. Rayachoti** Sambepalle, Chinnamandem, Rayachoti, Galiveedu, Lakkireddipalli and Ramapuram Mandals. **129. Pulivendula** Simhadripuram, Lingala, Thondur, Pulivendula, Vemula,Vempalle and Chakrayapet Mandals. 38 ----- 1 2 **130. Kamalapuram** Pendlimarri, Chinthakommadinne, Kamalapuram, Vallur, Veerapunayunipalle and Chennur Mandals. **131. Jammalamadugu** Peddamudium, Mylavaram, Kondapuram, Jammalamadugu, Muddanur and Yerraguntla Mandals. **132. Proddatur** Rajupalem and Proddatur Mandals. **133. Mydukur** Duvvur, S. Mydukur, Khajipet, Brahmamgarimattam andChapad Mandals. **11 – DISTRICT: KURNOOL** **134. Allagadda** Sirvel, Allagadda, Dornipadu, Uyyalawada, Chagalamarriand Rudravaram Mandals. **135. Srisailam** Srisailam, Atmakur, Velgode, Bandi Atmakur andMahanandi Mandals. **136. Nandikotkur (SC)** Nandikotkur, Pagidyala, J. Bungalow, Kothapalle, Pamulapadu and Midthur Mandals. **137. Kurnool** Kurnool Mandal (Part) Kurnool (M Corp.) (Part) Kurnool (M Corp.)—Ward No. 1 to 69. **138. Panyam** Kallur, Orvakal, Panyam and Gadivemula Mandals. **139. Nandyal** Nandyal and Gospadu Mandals. **140. Banaganapalle** Banaganapalle, Owk, Koilkuntla, Sanjamala andKolimigundla Mandals. **141. Dhone** Bethamcherla, Dhone and Peapally Mandals. **142. Pattikonda** Krishnagiri, Veldurthi, Pattikonda, Maddikera and TuggaliMandals. **143. Kodumur (SC)** C.Belagal, Gudur and Kodumur Mandals. Kurnool Mandal (Part) R. Kanthalapadu, Sunkesula, Remata, Ulchala, Basavapuram, Edurur, G. Singavaram, Nidzur, Munagalapadu, Mamidalapadu, Panchalingala, E. Thandrapadu. Gondiparla, Dinnedevarapadu, B. Thandrapadu, Pasupula, Rudravaram, Noothanapalle, Devamada, Pudur, Gargeyapuram and Diguvapadu Villages. **144. Yemmiganur** Nandavaram, Yemmiganur and Gonegandla Mandals. **145. Mantralayam** Peda Kadubur, Mantralayam, Kosigi and KowthalamMandals. **146. Adoni** Adoni Mandal. **147. Alur** Devanakonda, Holagunda, Halaharvi, Alur, Aspari andChippagiri Mandals. **12—DISTRICT: ANANTAPUR** **148. Rayadurg** D. Hirehal, Rayadurg, Kanekal, Bommanahal andGummagatta Mandals. **149. Uravakonda** Vidapanakal, Vajrakarur, Uravakonda, Beluguppa and Kudair Mandals. **150. Guntakal** Guntakal, Gooty and Pamidi Mandals. **151. Tadpatri** Peddavadugur, Yadiki, Tadpatri and Peddapappur Mandals. **152. Singanamala (SC)** Garladinne, Singanamala, Putlur, Yellanur, Narpala andB.K. Samudram Mandals. **153. Anantapur Urban** Anantapur Mandal (Part) Anantapur (M+OG) (Part) Anantapur (M)—Ward No.1 to 28 Narayanapuram (OG)—Ward No. 29 Kakkalapalle (R) (OG) (Part)—Ward No. 30 Anantapur (R) (OG)—Ward No. 31. **154. Kalyandurg** Brahmasamudram, Kalyandurg, Settur, Kundurpi andKambadur Mandals. 39 ----- 1 2 **155. Raptadu** Atmakur, Raptadu, Kanaganapalli, C. K. Palli and Ramagiri Mandals, Anantapur Mandal (Part) Kodimi, Thaticherla, Somanadoddi, Rachanapalle, Sajjalakalva, Kurugunta, Gollapalle, Kamarupalle, Alamuru, Katiganikalva, Kakkalapalle (Rural), Upparapalle, Itikalapalle, Jangalapalle, Kandakur, Chiyyedu, Mannila and Papampet (CT) Villages. **156. Madakasira (SC)** Madakasira, Amarapuram, Gudibanda, Rolla and Agali Mandals. **157. Hindupur** Hindupur, Lepakshi and Chilamathur Mandals. **158. Penukonda** Parigi, Penukonda, Gorantla, Somandepalle and Roddam Mandals. **159. Puttaparthi** Nallamada, Bukkapatnam, Kothacheruvu, Puttaparthi, O. D. Cheruvu and Amadagur Mandals. **160. Dharmavaram** Dharmavaram, Bathalapalle, Tadimarri and Mudigubba Mandals. **161. Kadiri** Talupula, Nambulipulikunta, Gandlapenta, Kadiri, Nallacheruvu and Tanakal Mandals. **13—DISTRICT: CHITTOOR** **162. Thamballapalle** Mulakalacheruvu, Thamballapalle, Peddamandyam, Kurabalakota, Peddathippasamudram and B. Kothakota Mandals. **163. Pileru** Gurramkonda, Kalakada, K. V. Palle, Pileru, Kalikiri and Valmikipuram Mandals. **164. Madanapalle** Madanapalle, Nimmanapalle and Ramasamudram Mandals. **165. Punganur** Sodam, Somala, Chowdepalle, Punganur, Pulicherla and Rompicherla Mandals. **166. Chandragiri** Tirupati (Rural), Chandragiri, Pakala, Ramachandrapuram, Chinnagottigallu and Yerravaripalem Mandals. Tirupati (Urban) Mandal (Part) Konkachennaiahgunta, Mangalam and Chennayyagunta Villages. **167. Tirupati** Tirupati (Urban) Mandal (Part) Tirumala (CT) Tirupati (NMA) (CT) Akkarampalle (CT) Tirupati (M+OG) (Part). **168. Srikalahasti** Renigunta, Yerpedu, Srikalahasti and ThottambeduMandals. **169. Satyavedu (SC)** Narayanavanam, B. N. Kandriga, Varadaiahpalem, K.V.B.Puram, Pitchatur, Satyavedu and Nagalapuram Mandals. **170. Nagari** Nindra, Vijayapuram, Nagari, Puttur and Vadamalapeta Mandals. **171. Gangadhara Nellore (SC)** Vedurukuppam, Karvetinagar, Penumuru, S. R. Puram, G.D. Nellore and Palasamudram Mandals. **172. Chittoor** Chittoor and Gudipala Mandals. **173. Puthalapattu (SC)** Puthalapattu, Irala, Thavanampalle, Bangarupalem and Yadamari Mandals. **174. Palamaner** Gangavaram, Palamaner, Baireddipalle, V. Kota and Peddapanjani Mandals. **175. Kuppam** Santipuram, Gudupalle, Kuppam and Ramakuppam Mandals. 40 ----- **TABLE B – PARLIAMENTARY CONSTITUENCIES** **Sl.No. and NameExtent of Parliamentary Constituencies** 1 2 **1. ARAKU (ST)** 10-Palakonda (ST), 11-Kurupam (ST), 12-Parvathipuram (SC), 13-Salur (ST), 28-Araku Valley (ST), 29-Paderu (ST)and 53-Rampachodovaram (ST). **2. SRIKAKULAM** 1-Ichchapuram, 2-Palasa, 3-Tekkali, 4-Pathapatnam, 5-Srikakulam, 6-Amadalavalasa and 8-Narasannapeta. **3. VIZIANAGARAM** 7-Etcherla, 9-Rajam (SC), 14-Bobbili, 15-Cheepurupalli, 16-Gajapathinagaram, 17-Nellimarla and 18-Vizianagaram. **4. VISAKHAPATNAM** 19-Srungavarapukota, 20-Bhimli, 21-Visakhapatnam East, 22-Visakhapatnam South, 23-Visakhapatnam North, 24-Visakhapatnam West and 25-Gajuwaka. **5. ANAKAPALLE** 26-Chodavaram, 27-Madugula, 30-Anakapalle,31-Pendurthi, 32-Yelamanchili, 33-Payakaraopet (SC) and34-Narsipatnam. **6. KAKINADA** 35-Tuni, 36-Prathipadu, 37-Pithapuram, 38-Kakinada Rural,39-Peddapuram, 41-Kakinada City and 52-Jaggampeta. **7. AMALAPURAM (SC)** 42-Ramachandrapuram, 43-Mummidivaram, 44-Amalapuram (SC), 45-Razole (SC), 46-Gannavaram (SC), 47-Kothapeta and 48-Mandapeta. **8. RAJAHMUNDRY** 40-Anaparthy, 49-Rajanagaram, 50-Rajahmundry City, 51-Rajahmundry Rural, 54-Kovvur (SC), 55-Nidadavole and66-Gopalapuram (SC). **9. NARSAPURAM** 56-Achanta, 57-Palacole, 58-Narsapuram, 59-Bhimavaram, 60-Undi, 61-Tanuku and 62-Tadepalligudem. **10. ELURU** 63-Unguturu, 64-Denduluru, 65-Eluru, 67-Polavaram (ST), 68-Chintalapudi (SC), 70-Nuzvid and 73-Kaikalur. **11. MACHILIPATNAM** 71-Gannavaram,72-Gudivada, 74-Pedana, 75-Machilipatnam, 76-Avanigadda, 77-Pamarru (SC) and 78-Penamaluru. **12. VIJAYAWADA** 69-Tiruvuru (SC), 79-Vijayawada West, 80 VijayawadaCentral, 81-Vijayawada East, 82-Mylavaram, 83Nandigama(SC) and 84-Jaggayyapeta. **13. GUNTUR** 86-Tadikonda (SC), 87-Mangalagiri, 88-Ponnuru, 91-Tenali, 93-Prathipadu (SC), 94-Guntur West and 95-Guntur East. **14. NARASARAOPET** 85-Pedakurapadu, 96-Chilakaluripet, 97-Narasaraopet, 98-Sattenapalli, 99-Vinukonda, 100-Gurajala and 101-Macherla. **15. BAPATLA (SC)** 89-Vemuru (SC), 90-Repalle, 92-Bapatla, 104-Parchur, 105-Addanki, 106-Chirala and 107-Santhanuthalapadu (SC). **16. ONGOLE** 102-Yerragondapalem (SC), 103-Darsi, 108-Ongole, 110- Kondapi (SC), 111-Markapuram, 112-Giddalur and 113- Kanigiri. **17. NANDYAL** 134-Allagadda, 135-Srisailam, 136-Nandikotkur (SC), 138-Panyam, 139-Nandyal, 140-Banaganapalle and 141-Dhone. **18. KURNOOL** 137-Kurnool, 142-Pattikonda, 143-Kodumur (SC), 144-Yemmiganur, 145-Mantralayam, 146-Adoni and 147-Alur. 41 ----- 1 2 **19. ANANTAPUR** 148-Rayadurg, 149-Uravakonda, 150-Guntakal, 151-Tadpatri, 152-Singanamala (SC), 153-Anantapur Urban and 154-Kalyandurg. **20. HINDUPUR** 155-Raptadu, 156-Madakasira (SC), 157-Hindupur, 158- Penukonda, 159-Puttaparthi, 160-Dharmavaram and 161-Kadiri. **21. KADAPA** 124-Badvel (SC), 126-Kadapa, 129-Pulivendula, 130-Kamalapuram, 131-Jammalamadugu, 132-Proddatur and 133-Mydukur. **22. NELLORE** 109-Kandukur, 114-Kavali, 115-Atmakur, 116-Kovur, 117-Nellore City, 118-Nellore Rural and 123-Udayagiri. **23. TIRUPATI (SC)** 119-Sarvepalli, 120-Gudur (SC), 121-Sullurpeta (SC), 122-Venkatagiri, 167-Tirupati, 168-Srikalahasti and 169-Satyavedu (SC). **24. RAJAMPET** 125-Rajampet, 127-Kodur (SC), 128-Rayachoti, 162-Thamballapalle, 163-Pileru, 164-Madanapalle and 165-Punganur. **25. CHITTOOR (SC)** 166-Chandragiri, 170-Nagari, 171-Gangadhara Nellore (SC), 172- Chittoor, 173-Puthalapattu (SC), 174-Palamaner and 175-Kuppam. **NOTE: Any reference in Table A to a CT, OG, Mandal and Villages or other territorial division** shall be taken to mean the area comprised within that CT, OG, Mandal and Villages or other territorialdivision as on the 15th day of February, 2004. Further, any reference in Table – A, to wards inmunicipal areas shall be taken to mean the areas as defined in the Census of India 2001Report.”. 4. After Schedule XXVI, the following shall be inserted, namely:— “SCHEDULE - XXVII **TELANGANA** **TABLE A – ASSEMBLY CONSTITUENCIES** **Sl.No. and Name Extent of Parliamentary Constituencies** 1 2 **1—DISTRICT: ADILABAD** **1. Sirpur** Kouthala, Bejjur, Kagaznagar, Sirpur (T) and Dahegaon Mandals. **2. Chennur (SC)** Jaipur, Chennur, Kotapalli and Mandamarri Mandals. **3. Bellampalli (SC)** Kasipet, Tandur, Bellampalli, Bhimini, Nennal andVemanpalliMandals. **4. Mancherial** Luxettipet, Mancherial and Dandepalli Mandals. **5. Asifabad (ST)** Kerameri, Wankdi, Sirpur (U), Asifabad, Jainoor, Narnoor, Tiryani and Rebbana Mandals. **6. Khanapur (ST)** Jannaram, Utnoor, Kaddam (Peddur), Khanapur andIndervelly Mandals. **7. Adilabad** Adilabad, Jainath and Bela Mandals. **8. Boath (ST)** Tamsi, Talamadugu, Gudihathnoor, Ichoda, Bazarhathnoor, Boath and Neradigonda Mandals. **9. Nirmal** Dilawarpur, Nirmal, Laxmanchanda, Mamda and Sarangapur Mandals. **10. Mudhole** Kuntala, Kubeer, Bhainsa, Tanoor, Mudhole and Lokeswaram Mandals. 42 ----- 1 2 **2—DISTRICT: NIZAMABAD** **11. Armur** Nandipet, Armur and Makloor Mandals. **12. Bodhan** Ranjal, Navipet, Yedpalle and Bodhan Mandals. **13. Jukkal (SC)** Madnoor, Jukkal, Bichkunda, Pitlam and NizamsagarMandals. **14. Banswada** Birkoor, Varni, Banswada and Kotgiri Mandals. **15. Yellareddy** Yellareddy, Nagareddipet, Lingampet, Tadwai, Gandhari and Sadasivanagar Mandals. **16. Kamareddy** Machareddy, Domakonda Kamareddy and BhiknoorMandals. **17. Nizamabad** Nizamabad (M). **(Urban)** **18. Nizamabad** Jakranpalle and Sirkonda Mandals, Nizamabad Mandal **(Rural)** (Part), Nizamabad [except Nizamabad (M)], Dichpalle andDharpalle Mandals. **19. Balkonda** Balkonda, Mortad, Kammarpalle, Bheemgal and VelpurMandals. **3—DISTRICT: KARIMNAGAR** **20. Koratla** Ibrahimpatnam, Mallapur, Koratla and Metpalle Mandals. **21. Jagtial** Raikal, Sarangapur and Jagtial Mandals. **22. Dharmapuri (SC)** Dharmapuri, Dharmaram, Gollapalle, Velgatoor and Pegadapalle Mandals. **23. Ramagundam** Ramagundam Mandal. **24. Manthani** Kamanpur, Manthani, Kataram, Mahadevpur, Mutharam (Mahadevapur), Malharrao and Mutharam (Manthani) Mandals. **25. Peddapalle** Peddapalle, Julapalle, Eligaid, Sultanabad, Odela and Srirampur Mandals. **26. Karimnagar** Karimnagar Mandal. **27. Choppadandi (SC)** Gangadhara, Ramadugu, Choppadandi, Mallial, Kodimial and Boinpalle Mandals. **28. Vemulawada** Vemulawada, Konaraopeta, Chandurthi, Kathlapur andMedipalle Mandals. **29. Sircilla** Yellareddipet, Gambhiraopet, Mustabad and SircillaMandals. **30. Manakondur (SC)** Manakondur, Ellanthakunta, Bejjanki, Timmapur (LMDColony) and Shankarapatnam Mandals. **31. Huzurabad** Veenavanka, Jammikunta, Huzurabad and KamalapurMandals. **32. Husnabad** Chigurumamidi, Koheda, Husnabad, Saidapur, Bheemadevarpalle and Elkathurthi Mandals. **4—DISTRICT: MEDAK** **33. Siddipet** Siddipet, Chinnakodur and Nangnoor Mandals. **34. Medak** Medak, Papannapet, Ramayampet and Shankarampet-R Mandals. **35. Narayankhed** Kangti, Manoor, Narayankhed, Kalher and Shankarampet-A Mandals. **36. Andole (SC)** Tekmal, Alladurgh, Regode, Raikode, Andole, Pulkal andMunpalle Mandals. **37. Narsapur** Kowdipalle, Kulcharam, Narsapur, Hathnoora, Yeldurthyand Shivampet Mandals. **38. Zahirabad (SC)** Zahirabad, Kohir, Nyalkal and Jharasangam Mandals. **39. Sangareddy** Sadasivpet, Kondapur and Sangareddy Mandals. **40. Patancheru** Jinnaram, Patancheru and Ramachandrapuram Mandals. 43 ----- 1 2 **41. Dubbak** Mirdoddi, Doultabad, Chegunta, Dubbak and Toguta Mandals. **42. Gajwel** Tupran, Kondapak, Gajwel, Jagdevpur, Wargal and Mulug Mandals. **5—DISTRICT: RANGAREDDY** **43. Medchal** Medchal, Shamirpet, Ghatkesar and Keesara (Rural) Mandals. **44. Malkajgiri** Malkajgiri Mandal. **45. Quthbullapur** Quthbullapur Mandal. **46. Kukatpalle** Hyderabad (M Corp.) (Part) Hyderabad (M Corp.)—Ward No.24 (Part) (Area in Balanagar Mandal) Kukatpalle (M) (Part) Kukatpalle (M)—Ward No. 5 to 16. **47. Uppal** Uppal Municipality, Kapra Municipality. **48. Ibrahimpatnam** Hayathnagar, Ibrahimpatnam, Manchal and YacharamMandals. **49. Lal Bahadur Nagar** Saroornagar Mandal (Part) Gaddiannaram (CT), Lal Bahadur Nagar (M+OG) (Part) Lal Bahadur Nagar (M)—Ward No. 1 to 10. **50. Maheswaram** Maheswaram and Kandukur Mandals. Saroornagar Mandal (Part) Medbowli, Almasguda, Badangpet, Chintalakunta, Jalpalle, Mamidipalle, Kurmalguda and Nadargul (Rural)Mandals. Hyderabad (OG) (Part) Balapur (OG)—Ward No. 36 Kothapet (OG)—Ward No. 37 Venkatapur (OG)—Ward No. 39 Mallapur (OG)—Ward No. 40 Lal Bahadur Nagar (M+OG) (Part) Lal Bahadur Nagar (M)—Ward No. 11 Nadargul (OG) (Part)—Ward No. 12 Jillalguda (OG)—Ward No. 15 Meerpet (CT). **51. Rajendranagar** Rajendranagar and Shamshabad Mandals. **52. Serilingampally** Serilingampally Mandal Balanagar Mandal (Part) Kukatpally (M) (Part) Kukatpally (M)—Ward No. 1 to 4. **53. Chevella (SC)** Nawabpet, Shankarpalle, Moinabad, Chevella and ShabadMandals. **54. Pargi** Doma, Gandeed, Kulkacherla, Pargi and Pudur Mandals. **55. Vicarabad (SC)** Marpalle, Mominpet, Vikarabad, Dharur and BantwaramMandals. **56. Tandur** Peddemul, Tandur, Basheerabad and Yalal Mandals. **6—DISTRICT: HYDERABAD** **57. Musheerabad** Hyderabad (M Corp.+OG) (Part) Hyderabad (M Corp.) (Part) Ward No.1 **58. Malakpet** Hyderabad (M Corp.+OG) (Part) Hyderabad (M Corp.) (Part) Ward No.16 Ward No.17 (Part) Block No. 8 and 9. 44 ----- 1 2 **59. Amberpet** Hyderabad (M Corp.+OG) (Part) Hyderabad (M Corp.) (Part) Ward No. 2 Ward No. 3 (Part) Block No. 1 to 4. **60. Khairatabad** Hyderabad (M Corp.+OG) (Part) Hyderabad (M Corp.) (Part) Ward No.6 Ward No. 3 (Part) Block No. 5 and 6 Ward No.8 (Part) Block No. 2. Ward No.5 (Part) Block No. 10. **61. Jubilee Hills** Hyderabad (M Corp.+OG) (Part) Hyderabad (M Corp.) (Part) Ward No. 8 (Part) Block No. 1, 3 and 4. **62. Sanathnagar** Hyderabad (M Corp.+OG) (Part) Hyderabad (M Corp.) (Part) Ward No.7, 24 (excluding the area in AC—46 Kukatpalle) and 25 to 30. **63. Nampally** Hyderabad (M Corp.+OG) (Part) Hyderabad (M Corp.) (Part) Ward No. 10 to 12. **64. Karwan** Hyderabad (M Corp.+OG) (Part) Hyderabad (M Corp.) (Part) Ward No. 9 Ward No. 13 (Part) Block No. 3 to 6. **65. Goshamahal** Hyderabad (M Corp.+OG) (Part) Hyderabad (M Corp.) (Part) Ward No. 4, 14 and 15 Ward No. 5 (Part) Block No. 1 to 9 Ward No. 13 (Part) Block No. 1 and 2. **66. Charminar** Hyderabad (M Corp.+OG) (Part) Hyderabad (M Corp.) (Part) Ward No. 20 to 23. **67. Chandrayangutta** Hyderabad (M Corp.+OG) (Part) Hyderabad (M Corp.) (Part) Ward No.18 (Part) Block No. 1 to 3 and 8 to 14. **68. Yakutpura** Hyderabad (M Corp.+OG) (Part) Hyderabad (M Corp.) (Part) Ward No.17 (Part) Block No. 1 to 7 Ward No.18 (Part) Block No. 6 and 7. **69. Bahadurpura** Hyderabad (M Corp.+OG) (Part) Hyderabad (M Corp.) (Part) Ward No.18 (Part) Block No. 4 and 5 Ward No.19. 45 ----- 1 2 **70. Secunderabad** Hyderabad (M Corp.+OG) (Part) Hyderabad (M Corp.) (Part) Ward No. 33 (Part) Block No. 4 to 7 Ward No. 34 and 35 Osmania University Area. **71. Secunderabad** Hyderabad (M Corp.+OG) (Part) **Cantt. (SC)** Hyderabad (M Corp.) (Part) Ward No. 31 and 32 Ward No. 33 (Part) Block No.1 to 3 Secunderabad Cantonment Board. **7—DISTRICT: MAHBUBNAGAR** **72. Kodangal** Kodangal, Bomraspet, Kosgi, Doulathabad and Maddur Mandals. **73. Narayanpet** Koilkonda, Narayanpet, Damaragidda and Dhanwada Mandals. **74. Mahbubnagar** Hanwada and Mahbubnagar Mandals. **75. Jadcherla** Jadcherla, Nawabpet, Balanagar and Midjil Mandals. **76. Devarkadra** Bhoothpur, Addakal, Devarkadra, Chinna Chinta Kunta and Kothakota Mandals. **77. Makthal** Makthal, Maganoor, Atmakur, Narva and Utkoor Mandals. **78. Wanaparthy** Wanaparthy, Pebbair, Gopalpeta, Peddamandadi and Ghanpur Mandals. **79. Gadwal** Gadwal, Dharur, Maldakal and Ghattu Mandals. **80. Alampur (SC)** Ieez, Itikyal, Waddepalle, Manopad and Alampur Mandals. **81. Nagarkurnool** Nagarkurnool, Bijinapalle, Thimmajipet, Tadoor and Telkapalle Mandals. **82. Achampet (SC)** Balmoor, Lingal, Amrabad, Achampet, Uppununthala and Vangoor Mandals. **83. Kalwakurthy** Veldanda, Kalwakurthy, Talakondapalle, Amangal andMadgul Mandals. **84. Shadnagar** Kondurg, Farooqnagar, Kothur and Keshampet Mandals. **85. Kollapur** Veepangandla, Kollapur, Peddakothapalle, Kodair andPangal Mandals. **8—DISTRICT: NALGONDA** **86. Devarakonda (ST)** Chintapalle, Gundlapalle, Chandampet, Devarakonda and Pedda Adisarlapalle Mandals. **87. Nagarjuna Sagar** Gurrampode, Nidamanur, Peddavoora, Anumula and Thripuraram Mandals. **88. Miryalaguda** Vemulapalle, Miryalaguda and Damercherla Mandals. **89. Huzurnagar** Neredcherla, Garidepalle, Huzurnagar, Mattampalli and Mellachervu Mandals. **90. Kodad** Mothey, Nadigudem, Munagala, Chilkur and Kodad Mandals. **91. Suryapet** Atmakur (S), Suryapet, Chivvemla and Penpahad Mandals. **92. Nalgonda** Thipparthi, Nalgonda and Kangal Mandals. **93. Munugode** Munugode, Narayanapur, Marriguda, Nampalle, Chandurand Choutuppal Mandals. **94. Bhongir** Bhongir, Bibinagar, Valigonda and Pochampalle Mandals. **95. Nakrekal (SC)** Ramannapeta, Chityala, Kattangoor, Nakrekal, Kethepalleand Narketpalle Mandals. 46 ----- 1 2 **96. Thungathurthi (SC)** Thirumalagiri, Thungathurthi, Nuthankal, Jajireddigudem, Sali Gouraram and Mothkur Mandals. **97. Alair** M.Turkapalle, Rajapet, Yadagirigutta, Alair, Gundala, Atmakur (M) and Bommalaramaram Mandals. **9—DISTRICT: WARANGAL** **98. Jangaon** Cherial, Maddur, Bachannapet, Narmetta and Jangaon Mandals. **99. Ghanpur** Ghanpur (Station), Dharmasagar, Raghunathpalle, **(Station) (SC)** Zaffergadh, and Lingalaghanpur Mandals. **100. Palakurthi** Palakurthi, Devaruppula, Kodakandla, Raiparthy andThorrur Mandals. **101. Dornakal (ST)** Narsimhulapet, Maripeda, Kuravi and Dornakal Mandals. **102. Mahabubabad (ST)** Gudur, Nellikudur, Kesamudram and Mahabubabad Mandals. **103. Narsampet** Narsampet, Khanapur, Chennaraopet, Duggondi, Nekkonda and Nallabelly Mandals. **104. Parkal** Parkal, Atmakur, Sangam and Geesugonda Mandals. **105. Warangal West** Warangal Mandal (Part) Warangal (M Corp.) (Part) Warangal (M Corp.) - Ward No. 1 to 7, 15, 21 and 23 to 25 **106. Warangal East** Warangal Mandal (Part) Warangal (M Corp.) (Part) Warangal (M Corp.) - Ward No. 8 to 14, 16 to 20 and 22. **107. Waradhanapet (SC)** Hasanparthy, Hanamkonda, Parvathagiri and Wardhanna Pet Mandals. **108. Bhupalpalle** Mogullapalle, Chityal, Bhupalpalle, Ghanpur (Mulug), Regonda and Shayampet Mandals. **109. Mulug (ST)** Venkatapur, Eturnagaram, Mangapet, Tadvai, Kothaguda, Govindaraopet and Mulug Mandals. **10—DISTRICT: KHAMMAM** **1[110. Pinapaka (ST)** Pinapaka, Manuguru, Gundala, Aswapuram Mandals and Bhurgumpadu Mandal excluding the Revenue Villages of Seetharamanagram, Sridhara Velair, Gumpanapalli, Ganapavaram, Ibrahimpet and Ravigudem (big).] **111. Yellandu (ST)** Kamepalle, Yellandu, Bayyaram, Tekulapalle and Garla Mandals. **112. Khammam** Khammam Mandal. **113. Palair** Thirumalayapalem, Kusumanchi, Khammam Rural and Nelakondapalle Mandals. **114. Madhira (SC)** Mudigonda, Chinthakani, Bonakal, Madhira andYerrupalem Mandals. **115. Wyra (ST)** Enkuru, Konijerla, Singareni, Julurpadu and WyraMandals. **116. Sathupalle (SC)** Sathupalle, Penuballi, Kallur, Tallada and Vemsoor Mandals. **117. Kothagudem** Kothagudem and Palwancha Mandals. **1[118. Aswaraopeta (ST)** Mulikalapalle, Chandrugonda, Aswaraopeta and Dammapeta Mandals.] **119. Bhadrachalam (ST)** Wazeed, Venkatapuram, Cherla, Dummugudem, Bhadrachalam, Kunavaram, Chintur and V.R. PuramMandals. 1. Subsby notificationNo. G.S.R. 311(E), dated 23-4-2015. 47 ----- **TABLE B – PARLIAMENTARY CONSTITUENCIES** **Sl.No. & NameExtent of Parliamentary Constituencies** 1 2 **1. ADILABAD (ST)** 1-Sirpur, 5-Asifabad (ST), 6-Khanapur (ST), 7-Adilabad, 8-Boath (ST), 9-Nirmal and 10-Mudhole. **2. PEDDAPALLE (SC)** 2 Chennur (SC), 3 Bellampalle (SC), 4 Mancherial, 22 Dharmapuri (SC), 23 Ramagundam, 24 Manthani and 25 Peddapalle. **3. KARIMNAGAR** 26-Karimnagar, 27-Choppadandi (SC), 28-Vemulawada, 29-Sircilla, 30-Manakondur (SC), 31-Huzurabad and 32-Husnabad. **4. NIZAMABAD** 1-Armur, 2-Bodhan, 3-Nizamabad (Urban), 4- Nizamabad(Rural), 5-Balkonda, 6-Koratla and 7-Jagtial. **5. ZAHIRABAD** 13 Jukkal (SC), 14 Banswada, 15 Yellareddy, 16 Kamareddy, 35 Narayankhed, 36 Andole (SC) and 38 Zahirabad (SC). **6. MEDAK** 8-Siddipet, 9-Medak, 10-Narsapur, 11-Sangareddy, 12-Patancheru, 13-Dubbak and 14 -Gajwel. **7. MALKAJGIRI** 15- Medchal, 16-Malkajgiri, 17-Qutbullapur, 18-Kukatpalle, 19-Uppal, 20-Lal Bahadur Nagar and 21-SecunderabadCantt. (SC). **8. SECUNDERABAD** 57 Musheerabad, 59 Amberpet, 60 Khairatabad, 61 Jubilee Hills, 62 Sanathnagar, 63 Nampally and 70 Secunderabad. **9. HYDERABAD** 22-Malakpet, 23-Karwan, 24-Goshamahal, 25-Charminar, 26-Chandrayangutta, 27-Yakutpura and 28-Bahadurpura. **10. CHEVELLA** 29-Maheswaram, 30-Rajendranagar, 31-Serilingampally, 32-Chevella (SC), 33-Pargi, 34-Vicarabad (SC) and 35-Tandur. **11. MAHBUBNAGAR** 36-Kodangal, 37- Narayanpet, 38-Mahbubnagar, 39-Jadcherla, 40-Devarkadra, 41 -Makthal and 42- Shadnagar. **12. NAGARKURNOOL (SC)** 78 Wanaparthy, 79 Gadwal, 80 Alampur (SC), 81 Nagarkurnool, 82 Achampet (SC), 83 Kalwakurthy and 85 Kollapur. **13. NALGONDA** 43-Devarakonda (ST), 44-Nagarjuna Sagar, 45- Miryalaguda, 46- Huzurnagar, 47-Kodad, 48-Suryapet and 49-Nalgonda. **14. BHONGIR** 48 Ibrahimpatnam, 93 Munugode, 94 Bhongir, 95 Nakrekal (SC), 96 Thungathurthi (SC), 97 Alair and 98 Jangoan. **15. WARANGAL(SC)** 50-Ghanpur (Station) (SC), 51-Palakurthi, 52-Parkal, 53-Warangal West, 54-Warangal East, 55-Wardhannapet (SC) and 56-Bhupalpalle. **16. MAHABUBABAD (ST)** 101 Dornakal (ST), 102 Mahabubabad (ST), 103 Narsampet, 109 Mulug (ST), 110 Pinapaka (ST), 111 Yellandu (ST) and 119 Bhadrachalam (ST). **17. KHAMMAM** 57-Khammam, 58-Palair, 59-Madhira (SC), 60-Wyra (ST), 61-Sathupalle (SC), 63-Kothagudem and 63Aswaraopeta(ST). **NOTE:** Any reference in Table A to a CT, OG, Mandal and Villages or other territorial division shall betaken to mean the area comprised within that CT, OG, Mandal and Villages or other territorialdivision as on the 15th day of February, 2004. Further, any reference in Table – A, to wards inmunicipal areas shall be taken to mean the areas as defined in the Census of India 2001Report.”. 48 ----- THE THIRD SCHEDULE (See section 24) PART I MODIFICATION IN THE DELIMITATION OF COUNCIL CONSTITUENCIES (ANDHRA PRADESH) ORDER, 2006 For the Table appended to the Delimitation of Council Constituencies (Andhra Pradesh) Order, 2006, the following Table shall be substituted, namely:–– “TABLE Name of Constituency Extent of Constituency Number ofseats Local Authorities’ Constituencies 1. Srikakulam Local Authorities Srikakulam 1 2. Vizianagaram Local Authorities Vizianagaram 1 3. Visakhapatnam Local Authorities Visakhapatnam 2 4. East Godavari Local Authorities East Godavari 2 5. West Godavari Local Authorities West Godavari 2 6. Krishna Local Authorities Krishna 2 7. Guntur Local Authorities Guntur 2 8. Prakasam Local Authorities Prakasam 1 9. Nellore Local Authorities Nellore 1 10. Chittoor Local Authorities Chittoor 2 11. Kadapa Local Authorities Kadapa 1 12. Anantapur Local Authorities Anantapur 2 13. Kurnool Local Authorities Kurnool 1 Graduates’ Constituencies 1. Srikakulam-Vizianagaram- Srikakulam, Vizianagaram, 1 Visakhapatnam Graduate Visakhapatnam 2. East-West Godavari Graduates East-West Godavari 1 3. Krishna-Guntur Graduates Krishna-Guntur 1 4. Prakasam-Nellore-Chittoor Graduates Prakasam-Nellore-Chittoor 1 5. Kadapa-Anantapur-Kurnool Graduates Kadapa-Anantapur-Kurnool 1”. Teacher's Constituencies 1. Srikakulam-Vizianagaram- Srikakulam, Vizianagaram, 1 Visakhapatnam Teachers Visakhapatnam 2. East-West Godavari Teachers East-West Godavari 1 3. Krishna-Guntur Teachers Krishna-Guntur 1 4. Prakasam-Nellore-Chittoor Teachers Prakasam-Nellore-Chittoor 1 5. Kadapa-Anantapur-Kurnool Teachers Kadapa-Anantapur-Kurnool 1”. 49 ----- PART II 1. This Order may be called the Delimitation of Council Constituencies (Telangana) Order, 2014. 2. The costituencies into which the State of Telangana shall be divided for thepurpose of elections to the Legislative Council of the State from (a) the local authorities'constituencies, (b) the graduates' constituencies, and (c) the teachers' constituencies in thesaid State, the extent of each such constituency and the number of seats allotted to eachsuch constituency shall be as shown in the following Table:— TABLE Name of Constituency Extent of Constituency Number ofseats *Local Authorities’ Constituencies 1. Mahbubnagar Local Authorities Mahbubnagar 1 2. Ranga Reddy Local Authorities Ranga Reddy 1 3. Hyderabad Local Authorities Hyderabad 2 4. Medak Local Authorities Medak 1 5. Nizamabad Local Authorities Nizamabad 1 6. Adilabad Local Authorities Adilabad 1 7. Karimnagar Local Authorities Karimnagar 1 8. Warangal Local Authorities Warangal 1 9. Khammam Local Authorities Khammam 1 10. Nalgonda Local Authorities Nalgonda 1 Graduates’ Constituencies 1. Mahbubnagar-Ranga Reddy- Mahbubnagar-Ranga 1 Hyderabad Graduates Reddy Hyderabad 2. Medak-Nizamabad-Adilabad- Medak-Nizamabad- 1 Karimnagar Graduates Adilabad-Karimnagar 3. Warangal-Khammam- Warangal-Khammam- 1 Nalgonda Graduates Nalgonda Teacher’s Constituencies 1. Mahbubnagar-Ranga Reddy- Mahbubnagar-Ranga 1 Hyderabad Teachers Reddy Hyderabad 2. Medak-Nizamabad-Adilabad- Medak-Nizamabad- 1 Karimnagar Teachers Adilabad-Karimnagar 3. Warangal-Khammam- Warangal-Khammam- 1 Nalgonda Teachers Nalgonda - See notification No. G.S.R. 313(E), dated 23-4-2015. 50 ----- THE FOURTH SCHEDULE [See section 22(2)] List of members of the Legislative Council of successor States of Andhra Pradesh and Telangana :— Legislative Council of Andhra Pradesh: Members of Local Authorities Constituencies: (1) Ilapuram Venkaiah, (2) Pothula Rama Rao, (3) D.V. Suryanarayana Raju, (4) Narayana Reddy Chadipiralla, (5) Boddu Bhaskara Ramarao, (6) Angara Ramamohan, (7) Dr. DesaiThippa Reddy, M.S., (8) Meka Seshu Babu, (9) Peerukatla Viswa Prasada Rao, (10) NarayanaReddy Vakati, (11) Mettu Govinda Reddy. Members of Graduates’ Constituencies: (1) Boddu Nageswara Rao, (2) Kalidindi Ravi Kiran Varma, (3) M.V.S. Sarma, (4) Yandapalli Srinivasulu Reddy, (5) Dr. Geyanand M. Members of Teachers’ Constituencies. (1) Gade Srinivasulu Naidu, (2) K.V.V. Satyanarayana Raju, (3) K.S. Lakshmana Rao, (4) Balasubrahmanyam Vitapu, (5) Bachala Pullaiah, [1][(6) Kantheti Satyanarayana Raju, (7) T. Ratna Bai]. Nominated Members. (1) Jupudi Prabhakar Rao, (2) Balashali Indira, (3) Dr. A. Chakrapani, (4) R. Reddeppa Reddy, (5) Shaik Hussain. Members elected from Legislative Assembly Constituencies. (1) K. Veerabhadra Swamy, (2) A. Lakshmi Siva Kumari, (3) R. Padma Raju, (4) Paladugu Venkata Rao, (5) Mohammad Jani, (6) N. Rajakumari, (7) Y. Ramakrishnudu, (8) S. Basava Punnaiah, (9) A. Appa Rao, (10) P.J. Chandrasekhara Rao, (11) B. Changal Rayudu,(12) P. Samanthakamani, (13) C. Ramachandraiah, (14) S.V. Satish Kumar Reddy, (15) G. Thippe Swamy, (16) M. Sudhakar Babu. _Legislative Council of Telangana:_ Members of Local Authorities Constituencies. (1) Nethi Vidya Sagar, (2) V. Bhoopal Reddy, (3) Arikala Narsa Reddy, (4) Potla Nageswar Rao, (5) T. Bhanu Prasad Rao, (6) S. Jagadeeshwar Reddy, (7) Sri M.S. Prabhakar Rao, (8) Sri Patnam Narender Reddy, (9) Syed Aminul Hasan Jafri. Members of Graduates’ Constituencies: (1) Dr. K. Nageshwar, (2) Kapilavai Dileep Kumar, (3) K. Swamy Goud. Members of Teachers’ Constituencies. (1) Pathuri Sudhakar Reddy, (2) Poola Ravinder, (3) Katepally Janardhan Reddy. Nominated Members. (1) D. Rajeshwar Rao, (2) Farooq Hussain, (3) B. Venkata Rao. Elected by Members of Legislative Assembly *(1) K.R. Amos, (2) Mohammad Ali Shabbir, (3) K. Yadava Reddy, (4) V. GangadharGoud, (5) T. Santosh Kumar, (6) N. Rajalingam, (7) D. Srinivas, (8) M. Ranga Reddy, (9) P. Sudhakar Reddy, (10) B. Lakshmi Narayana, (11) Mohammad Saleem, (12) B. Venkateswarlu, (13) Peer Shabbir Ahmed, (14) Mohammad Mahmood Ali,(15) Syed Altaf Hyder Razvi. 1. Ins. by notification No. G.S.R. 725(E), dated 14-10-2014. - Omitted by notificationNo. G.S.R. 312(E), dated 23-4-2015. The seat vacated by Shri K. R. Amos shall cease to exist and shall not be filled up in accordance with sub-clause (b) of clause (i) of sub-section (2) of section 23 of the Andhra Pradesh Reorganisation Act, 2014. 51 ----- THE FIFTH SCHEDULE (See section 28) In the Constitution (Scheduled Castes) Order, 1950,–– (1) in paragraph 2, for the figures “XXIV”, the figures “XXV” shall besubstituted; (2) in the Schedule,–– (a) in PART I relating to Andhra Pradesh, item number 9, shall be omitted; (b) after Part XXIV, the following Part shall be inserted, namely:–– “PART XXV.––Telangana 1. Adi Andhra 2. Adi Dravida 3. Anamuk 4. Aray Mala 5. Arundhatiya 6. Arwa Mala 7. Bariki 8. Bavuri 9. Beda (Budga) Jangam 10. Bindla 11. Byagara, Byagari 12. Chachati 13. Chalavadi 14. Chamar, Mochi, Muchi, Chamar-Ravidas, Chamar-Rohidas 15. Chambhar 16. Chandala 17. Dakkal, Dokkalwar 18. Dandasi 19. Dhor 20. Dom, Dombara, Paidi, Pano 21. Ellamalawar, Yellammalawandlu 22. Ghasi, Haddi, Relli, Chanchandi 23. Godari 24. Gosangi 25. Holeya 26. Holeya Dasari 27. Jaggali 28. Jambuvulu 29. Kolupulvandlu, Pambada, Pambanda, Pambala 52 ----- 30. Madasi Kuruva, Madari Kuruva 31. Madiga 32. Madiga Dasu, Mashteen 33. Mahar 34. Mala, Mala Ayawaru 35. Mala Dasari 36. Mala Dasu 37. Mala Hannai 38. Malajangam 39. Mala Masti 40. Mala Sale, Nethani 41. Mala Sanyasi 42. Mang 43. Mang Garodi 44. Manne 45. Mashti 46. Matangi 47. Mehtar 48. Mitha Ayyalvar 49. Mundala 50. Paky, Moti, Thoti 51. Pamidi 52. Panchama, Pariah 53. Relli 54. Samagara 55. Samban 56. Sapru 57. Sindhollu, Chindollu 58. Yatala 59. Valluvan.”. 53 ----- THE SIXTH SCHEDULE (See section 29) AMENDMENTS TO THE CONSTITUTION (SCHEDULED TRIBES) ORDER, 1950 In the Constitution (Scheduled Tribes) Order, 1950,–– (1) in paragraph 2, for the figures “XXII”, the figures “XXIII” shall besubstituted; (2) in the Schedule,–– _(a) in PART I relating to Andhra Pradesh,––_ (i) in item number 20, the brackets and words “(excluding Adilabad,Hyderabad, Karimnagar, Khammam, Mahbubnagar, Medak, Nalgonda,Nizamabad and Warangal districts)” shall be omitted; (ii) item number 30 and the entries relating thereto shall be omitted; _(b) after Part XXIV, the following Part shall be inserted, namely:––_ “PART XXV.––Telangana 1. Andh, Sadhu Andh 2. Bagata 3. Bhil 4. Chenchu 5. Gadabas, Bodo Gadaba, Gutob Gadaba, Kallayi Gadaba, Parangi Gadaba, Kathera Gadaba, Kapu Gadaba 6. Gond, Naikpod, Rajgond, Koitur 7. Goudu (in the Agency tracts) 8. Hill Reddis 9. Jatapus 10. Kammara 11. Kattunayakan 12. Kolam, Kolawar 13. Konda Dhoras, Kubi 14. Konda Kapus 15. Kondareddis 16. Kondhs, Kodi, Kodhu, Desaya Kondhs, Dongria Kondhs, Kuttiya Kondhs, Tikiria Kondhs, Yenity Kondhs, Kuvinga 17. Kotia, Bentho Oriya, Bartika, Dulia, Holya, Sanrona, Sidhopaiko 18. Koya, Doli Koya, Gutta Koya, Kammara Koya, Musara Koya, Oddi Koya, Pattidi Koya, Rajah, Rasha Koya, Lingadhari Koya (ordinary), Kottu Koya, Bhine Koya, Rajkoya 19. Kulia 20. Manna Dhora 21. Mukha Dhora, Nooka Dhora 22. Nayaks (in the Agency tracts) 54 ----- 23. Pardhan 24. Porja, Parangiperja 25. Reddi Dhoras 26. Rona, Rena 27. Savaras, Kapu Savaras, Maliya Savaras, Khutto Savaras 28. Sugalis, Lambadis, Banjara 29. Thoti (in Adilabad, Hyderabad, Karimnagar, Khammam, Mahbubnagar, Medak, Nalgonda, Nizamabad and Warangal districts) 30. Yenadis, Chella Yenadi, Kappala Yenadi, Manchi Yenadi, Reddi Yenadi 31. Yerukulas, Koracha, Dabba Yerukula, Kunchapuri Yerukula, Uppu Yerukula 32. Nakkala, Kurvikaran.”. 55 ----- THE SEVENTH SCHEDULE (See section 52) LIST OF FUNDS A. Provident Funds, Pension Funds, Insurance Funds 1. Contributory Provident Fund Work-charged 50% N.R.S. 2. All India Service Provident Fund. 3. Deposits of Zilla Praja Parishads out of Provident Fund contribution. 4. General Provident Fund (Regular). 5. Andhra Pradesh Class IV Govt. Servants Family Pension Fund. 6. Andhra Pradesh State Employees Family Benefit Fund. 7. Andhra Pradesh State Government Life Insurance Fund. 8. Compulsory Savings Scheme. 9. 50% D.A., G.P.F.N.R.S. 10. G.P.F. Class-IV. 11. G.P.F. Work Charged 50% N.R.S. 12. C.P.F. work-charged Establishment. 13. Electricity Department Provident Fund. 14. ICS Provident Fund. 15. Compulsory Savings Scheme for University Employees. 16. Postal Insurance and Life Annuity Fund. 17. Central Government Employees Group Insurance Scheme. 18. I.A.S. Group Insurance. 19. Andhra Pradesh State Government Employees Contributory Pension Scheme— (i) Employees Contribution (ii) Government Contribution. 20. Andhra Pradesh Aided Educational Institution Employees Contributory PensionScheme— (i) Employees Contribution (ii) Government Contribution 21. Group Insurance for Panchayat Raj Employees 22. Group Insurance Market Committee 23. State Government Employees Group Janata Personal Accident Policy 24. Employees Welfare Fund (Andhra Pradesh State) B. Sinking Fund, Guarantee Resumption Fund, Reserve Funds 25. Sinking Fund —Investment Account 26. Guarantee Redemption Fund—Investment Account 27. Depreciation Reserve Fund—Government Commercial Departments andUndertakings— (i) Alcohol Factory, Narayanaguda 56 ----- (ii) Alcohol Factory, Kamareddy (iii) Andhra Pradesh Text Book Press (iv) Government Distillery, Chagallu (v) Government Ceramic Factory, Gudur (vi) Government Block Glass Factory, Gudur. 28. Industrial Development Funds— (i) Reserve Fund for Protection of Sugar Industries (ii) Sericulture Development Fund. 29. Electricity Development Funds—Special Reserve Fund—Electricity. 30. Other Development and Welfare Fund— (i) Funds for Development Schemes (ii) Industrial Plantation Fund (iii) Andhra Pradesh State Distilleries (iv) Andhra Pradesh Distilleries Pollution Control 31. Depreciation Reserve Fund of Government Press 32. Depreciation Reserve Fund of Water Works 33. State Development Subsidy Fund for Small and Marginal Formers 34. Industrial Research and Development Fund—Main Account 35. Industrial Research and Development Fund—Investment Account 36. Funds for Development Schemes—Investment Account 37. Andhra Pradesh Distilleries and Brewaries 38. Amount with RBI in GRF Current Account 39. Security Adjustment Reserve—Investment Account C. Other Funds 40. Development Funds for Educational Purposes 41. K.G. and Pennar Drainage Cess Fund 42. C.M. Relief Fund 43. Municipal Environmental Scheme Fund 44. Zilla Praja Parishad Funds 45. Subvensions from Central Road Fund 46. Deposits of Police Funds 47. Deposits of Andhra Pradesh Social Welfare Fund 48. Development of Mineral Resources and Technology Upgradation Fund 49. Village Panchayat Funds 50. Mandala Praja Parishad Funds 51. Market Committee Funds 52. Thrift Fund cum Savings and Security Schemes for Weavers 57 ----- 53. State Agriculture Credit Stabilisation Fund 54. Andhra Pradesh State Government Employees Contributory Pension Scheme (i) Employees Contribution (ii) Government Contribution 55. Deposits on Employees Welfare Fund and Matching contribution equivalent tothe interest earned _on the Employees Welfare Fund_ (i) Loans to Government Employees (ii) Loans to Panchayat Raj Employees (iii) Loans to Municipal Corporation/Municipal Employees (iv) Remuneration to the employees working in the Employees Welfare Fund andother connected expenditure like Stationery, Stamps, Contingent items, etc. 56. Deposits of Andhra Pradesh Building and Other Construction Workers WelfareBoard. 57. Natural Calamities Unspent Margin Money Fund 58. Development Funds for Agricultural Purposes 59. Zamindari Abolition Fund 60. Ethyl Alcohol Storage Facilities Fund— (i) Andhra Pradesh Government Power Alcohol Factory, Bodhan (ii) Andhra Pradesh Government Power Alcohol Factory, Chagallu 61. Security Adjustment Reserve 62. Andhra Pradesh Crop Insurance Fund 63. Andhra Pradesh Comprehensive Crop Insurance Scheme 64. Religious Charitable Endowment Funds 65. Depreciation Reserve Fund of Hydro—Thermal Electricity Schemes (i) Depreciation Reserve Fund of Hydro—Thermal Electricity Schemes (ii) Machkund (iii) Tungabhadra 66. State Renewal Fund 67. Andhra Pradesh Rural Development Fund 68. Corpus Fund for upgradation of public libraries 69. General Reserve Funds of Government Commercial Departments/Undertakings. 58 ----- THE EIGHTH SCHEDULE (See section 59) APPORTIONMENT OF LIABILITY IN RESPECT OF PENSIONS 1. Subject to the adjustments mentioned in paragraph 3, each of the successor Statesshall, in respect of pensionsgranted before the appointed day by the existing State ofAndhra Pradesh, pay the pensions drawn in its treasuries. 2. Subject to the said adjustments, the liability in respect of pensions of officersserving in connection with theaffairs of the existing State of Andhra Pradesh who retire orproceed on leave preparatory to retirement before the appointed day, but whose claims forpensions are outstanding immediately before that day, shall be the liability of the State ofAndhra Pradesh. 3. There shall be computed, in respect of the period commencing on the appointedday and ending on such date after the appointed day, as may be fixed by the CentralGovernment and in respect of each subsequent financial year, the total payments made tothe two successor States in respect of pensions referred to in paragraphs 1 and 2. The totalrepresenting the liability of the existing State of Andhra Pradesh in respect of pensions andother retirement benefits shall be apportioned between the successor States on the basis ofpopulation ratio and any successor State paying more than its due share shall be reimbursedthe excess amount by the other successor State paying less. 4. The liability of the existing State of Andhra Pradesh in respect of pension rollsgranted before the appointed day and drawn in any area outside the territories of theexisting State shall be the liability of the State of Andhra Pradesh subject to adjustments tobe made in accordance with paragraph 3 as if such pensions had been drawn in any treasuryin the State of Andhra Pradesh under paragraph 1. 5. (1) The liability in respect of the pension of any officer serving immediately beforethe appointed day inconnection with the affairs of the existing State of Andhra Pradesh andretiring on or after that day, shall be that of the successor State granting him the pensionand other retirement benefits; but the portion of the pension and other retirement benefitsattributable to the service of any such officer before the appointed day in connection withthe affairs of the existing State of Andhra Pradesh shall be allocated between the successorStates on the basis of population ratio, and the Government granting the pension shall beentitled to receive from the other successor State its share of the liability. (2) If any such officer was serving after the appointed day in connection with theaffairs of more than one successor State other than the one granting the pension shallreimburse to the Government by which the pension is granted an amount which bears to theportion of the pension attributable to his service after the appointed day the same ratio asthe period of his qualifying service after the appointed day under the reimbursing Statebears to the total qualifying service of such officer after the appointed day reckoned for thepurposes of pension. 6. Any reference in this Schedule to a pension shall be construed as including areference to the commuted value of the pension. 59 ----- THE NINTH SCHEDULE (See sections 68 and 71) LIST OF GOVERNMENT COMPANIES AND CORPORATIONS Sl. No.Name of Government Company Address (1) (2) (3) 1. Andhra Pradesh State Seeds Development Corporation S-10-193, 2nd Floor, Ltd., HACA Bhavan, Opp. Public Gardens, Hyderabad-500 004. 2. Andhra Pradesh State Agro Industrial Development 504, Hermitage Office Corporation Ltd., Complex, Hill Fort Road, Hyderabad-500 004. 3. Andhra Pradesh State Warehousing Corporation., Warehousing Sadan, 2nd Floor, Behind Gandhi Bhavan, Nampally, Hyderabad- 500 001. 4. Andhra Pradesh State Civil Supplies Corporation Ltd., 6-3-655/1/A, Civil Supplies Bhavan, Somajiguda, Hyderabad-500 082. 5. Andhra Pradesh Genco, Vidyut Soudha, Khairathabad, Hyderabad-500 004. 6. Andhra Pradesh Transco, Vidyut Soudha, Khairathabad, Hyderabad-500 004. 7. Singareni Collieries Company Ltd., Singareni Bhavan, Macharmanzil, Redhills, Hyderabad-500 004. 8. NREDCAP Pisgha Complex, Nampally, Hyderabad-500 001. 9. Andhra Pradesh Forest Development Corporation Ltd., UNI Building, 3rd Floor, A.C.Guards, Hyderabad-500 004. 10. Andhra Pradesh State Film and Television Theatre 10-2-1, FDC Complex, Development Corporation Ltd., A.C.Guards, Hyderabad-500 004. 11. Andhra Pradesh Medical Services Infrastructure APMSIDC Building, Development Corporation, DM and HS Campus, Sulthan Bazar, Hyderabad-500 095. 60 ----- (1) (2) (3) 12. Andhra Pradesh State Police Housing Corporation Ltd., DIG Office, Saifabad, Hyderabad-500 004. 13. Andhra Pradesh State Housing Corporation Ltd., 3-6-184, Street No.17, Urdu Hall Lane, Himayat Nagar, Hyderabad. 14. Andhra Pradesh Housing Board, Gruhakalpa, M.J.Road, Nampally, Hyderabad-500 028. 15. Andhra Pradesh Technologies Services Ltd., B.R.K. Buildings, Tank Bund Road, Hyderabad. 16. Andhra Pradesh Mineral Development Corporation Ltd., Rear Block, 3rd Floor, HMWSSB Premises, Khairathabad, Hyderabad-500 004. 17. Andhra Pradesh Industrial Infrastructure Corporation Ltd., 5-9-58/B, 6th Floor, Parishrama Bhavan, Basheerbagh, Hyderabad-500 004. 18. Andhra Pradesh Industrial Development Corporation Ltd., 5-9-58/B, 6th Floor, Parishrama Bhavan, Basheerbagh, Hyderabad-500 004. 19. Andhra Pradesh State Finance Corporation, 5-9-194, Chirag Ali Lane, Abids, Hyderabad-500 001. 20. Leather Industries Development Corporation of 5-77/27, Darga Hussaini Andhra Pradesh (LIDCAP),Shaw Ali,GolkondaPost, Hyderabad-500008. 21. Andhra Pradesh Handicraft Development Corporation Ltd., Hasthakala Bhavan, Musheerabad X Roads, Hyderabad. 22. Andhra Pradesh State Trade Promotion Corporation Ltd. 6-10-74, Fathe Maidhan (APTPC)., Road, Shakar Bhavan, Hyderabad-500 004. 23. Andhra Pradesh State Irrigation Development 8-2-674/2/B, Road Corporation Ltd., No.13, Banjara Hills, Hyderabad-500 034. 61 ----- (1) (2) (3) 24. Andhra Pradesh State Minorities Finance Corporation Ltd., 5th Floor, A.P. State Haj House, Opp. Public Gardens, Nampally, Hyderabad-500 001. 25. Andhra Pradesh Beverages Corporation Ltd., 4th Floor, Prohibition and Excise Complex, 9 and 10 Eastern, M.J.Road, Nampally, Hyderabad-500 001. 26. Andhra Pradesh State Road Transport Corporation, Bus Bhavan, Musheerabad X Roads, Hyderabad. 27. Andhra Pradesh Foods, IDA, Nacharam, Hyderabad-500 076. 28. Andhra Pradesh State Tourism Development 3-5-891, A.P. Tourism Corporation Ltd., House, Himayath Nagar, Hyderabad. 29. Andhra Pradesh Rajiv Swagruha Corporation Ltd., A-06, Sahabhavan, Bandlaguda, GSI (Post), Hyderabad-500 068. 30. Eastern Power Distribution Corporation Ltd., Corporate Office, Near Guruwar Junction, P and T Seethammadhara Colony, Vishakapatnam-530 013. 31. Southern Power Distribution Corporation Ltd., # 1-13-65/A, Srinivasapuram, Tirupati-517503. 32. Central Power Distribution Corporation Ltd., 6-1-50, Corporate Office, Mint Compound, Hyderabad-500 063. 33. Northern Power Distribution Corporation Ltd., 1-1-478, Chaitanyapuri Colony, Near RES Petrol Pump, Warangal. 34. Andhra Pradesh Heavy Machinery and Engineering Ltd., Regd. Office and Factory, Kondapally-521228. Krishna District. 35. Vizag Apparel Park for Export Ltd., C-Block, 4th Floor, BRK Bhavan, Hyderabad 500 063. 62 ----- (1) (2) (3) 36. Andhra Pradesh State Christian (Minorities) 6-2-41, Flat No. 102, Finance Corporation, Moghal Emami Mansion, Opp. Shadan College, Khairathabad, Hyderabad-500 004. 37. Hyderabad Metro Rail Ltd., Metro Rail Bhavan, Saifabad, Hyderabad-500 004. 38. Andhra Pradesh Urban Finance Infrastructure 2nd Floor, E and PH Development Corporation Ltd., Complex, Kashana Building, AC Guards, Hyderabad. 39. Infrastructure Development Corporation of Andhra Pradesh 10-2-1, 3rd Floor, FDC (INCAP), Complex, AC Guards, Hyderabad-500 028. 40. Overseas Manpower Company of Andhra Pradesh Ltd. ITI Mallepally Campus, (OMCAP), Vijayanagar Colony, Hyderabad-500 057. 41. Andhra Pradesh Power Finance Corporation Ltd., L-Block, 4th Floor, Andhra Pradesh Secretariat, Hyderabad. 42. Andhra Pradesh Roads Development Corporation, R and B Office, Beside Mahaveer, AC Guards, Hyderabad-500 057. 43. Andhra Pradesh Tribal Power Company Ltd. (TRIPCO), 4th Floor, Damodharam Sanjivaiah Samkshema Bhavan, Masab Tank, Hyderabad. 44. Andhra Pradesh Tribal Mining Company Ltd. (TRIMCO), 4th Floor, Damodharam Sanjivaiah Samkshema Bhavan, Masab Tank, Hyderabad. 45. Andhra Pradesh Cooperative Oil seeds Parishrama Bhavan, Growers Federation Limited. 9th Floor, Hyderabad. 46. Andhra Pradesh Marketing Federation Ltd. Haka Bhavan, Hill Fort Road, Hyderabad. 47. Deccan Infrastructure and Land Holdings Ltd. C/o Andhra Pradesh Housing Board, Ground Floor, Gruha Kalpa, MJ Road, Nampally, Hyderabad-500001. 63 ----- (1) (2) (3) 48. Andhra Pradesh Aviation Corporation Ltd. II Floor, Container, Floride Station, Air Corporation Complex, Begumpet 16. 49. Andhra Pradesh Gas Infrastructure 5-9-58/B, Parishrama Corporation (P) Ltd. Bhavan, II Floor, Fathe Maidan Road, Basheerbagh, Hyderabad-14. 50. Andhra Pradesh Gas Distribution 5-9-58/B, Parishrama Corporation Ltd. Bhavan, II Floor, Fathe Maidan Road, Basheerbagh, Hyderabad-14. 51. Andhra Pradesh Khadi and Village Mehdipatnam Road, Industries Board (APKVIB). Masab Tank, Humayun Nagar, Hyderabad. 52. Andhra Pradesh State Handloom Road No. 16, Industrial Weavers Co-operative Society Ltd. (APCO) Development Area, Chinthal, Hyderabad-55. 53. Andhra Pradesh Textile Development 4th Floor, BRKR Corporation (APTEX). Bhavan, C Block, Tankbundroad, Saifabad, Hyderabad-4. 54. Nizam Sugars Ltd. (NSL). 6-3-570/1, 201, Diamond Block, Rockdale Compound, Somajiguda, Errammanjil, Hyderabad-82. 55. Andhra Pradesh Food Processing 1st Floor, BRKR Society (APFPS). Bhavan, Tank Bund Road, Hyderabad-63. 56. Krishnapatnam International Leather 5th Floor, Parishrama Complex Pvt. Ltd. (KPILC) Bhavan, Basheerbagh, Hyderabad-4. 57. Andhra Pradesh State Federation of Chirag Ali Lane, Co-operative Sugar Factories Ltd. (APSFCSC). Hyderabad-500001. 58. Textile Park, Pasha Mailaram Pasha Mailaram, Medak District. 59. Andhra Pradesh Women's Co-operative Door No. 1335/H, Road Finance Corporation Ltd. No. 45, Jubilee Hills, Hyderabad-500 033. 64 ----- (1) (2) (3) 60. Andhra Pradesh Vikalangula AP Vikalangula Co-operative Corporation Sankshema Bhavan, Nalgonda X Roads, Malkpet. 61. Andhra Pradesh Water Resources IV Floor, Jalasoudha Development Corporation Building Erram Manzil, Hyderabad. 62. Andhra Pradesh State Property Tax Board AC Guards, Masabtank, (APSPTB), Hyderabad. Hyderabad. 63. Andhra Pradesh Toddy Tappers Cooperative 3-5-1089, Beside Finance Corporation Ltd. (AP Geetha Paarishramika Deepak Cinema Theater, Sahakara Arthika Samkhsema Samstha), Narayanagunda, Narayanguda, Hyderabad. Hyderabad-29. 64. Society for Employment, Promotion and Azmath Jah Palace, Training in Twin Cities (SETWIN). Purani Haveli, Hyderabad-500 002. 65. Sports Authority of Andhra Pradesh Lal Bahadur Stadium, (SAAP) Hyderabad-500 001. AP. INDIA. 66. Andhra Pradesh Society for Training and Director of Youth Employment Promotion (APSTEP) Services and MD, APSTEP, Behind Boats Club, Secunderabad. 67. State Institute of Hotel Management Near SV Zoo Park, Catering Technology, Tirupathi Beside AP Tourism Transport, Peler Village, Tirupathi, Chittoor Distt. 517507 68. State Institute of Hotel Management Kohir X road, Catering Technology, Medak Kaveri Village, Medak Distt. 502321 69. Andhra Pradesh Meat Development 10-2-289/129, Corporation, Hyderabad Shanthinagar, Hyderabad-28 70. Andhra Pradesh Dairy Development Vijaya Bhavan, Lalapet, Corporation, Hyderabad Hyderabad-17 71. AP Sheep and Goat Develoment Managing Director, Cooperative Federation, Hyd. 10- 2-289/127 Shanthinagar, Masabtank, Hyderabad-28 65 ----- (1) (2) (3) 72. Andhra Pradesh State Fishermen Managing Director, O/o Cooperative Societies Federation, Hyd. Commissioner of Fisheries, 4th Lane, Shanthinagar, Mathsya Bhavan, Hyderabad. 73. Andhra Pradesh Dairy Development Vijaya Bhavan, Lalapet, Cooperative Federation, Ltd., Hyderabad. Hyderabad-17 74. Andhra Pradesh State Veternary Council, H.No. 2-289/124, Road, Hyderabad. No. 4, Shanthi Nagar, Hyderabad-500028. 75. Andhra Pradesh Girijan Co-operative Telugu Samkshema Corporation Bhavan, Masab Tank, Hyderabad-28 76. Andhra Pradesh State ST Co-operative Managing Director, Finance Corporation (Tricor) 1st Floor, D.S.S. Bhavan, Masab Tank, Hyderabad. 77. Andhra Pradesh Education and Welfare 4th Floor, Rajiv Vidya Infrastructure Development Corporation Mission Building, (APEWIDC) SCERT Compound, Hyderabad-500001 78. Andhra Pradesh Scheduled Castes VC and MD Co-operative Finance Corporation Damodaram Sanjeevayya Samkshema Bhavan, 5th Floor, Masab Tank, Hyderabad-28 79. Andhra Pradesh Backward Classes Samkshema Bhavan, Co-operative Finance Corporation Masab Tank, Hyderabad 80. Andhra Pradesh Washermen Samkshema Bhavan, Co-operative Societies Federation Ltd. Masab Tank, Hyderabad-28 81. Andhra Pradesh Nayee Brahmana Samkshema Bhavan, Co-operative Societies Federation Ltd. Masab Tank, Hyderabad-28 82. Andhra Pradesh Sagara (Uppara) Samkshema Bhavan, Co-operative Societies Federation Ltd. Masab Tank, Hyderabad-28 83. Andhra Pradesh Valmiki/ Boya Samkshema Bhavan, Co-operative Societies Federation Ltd. Masab Tank, Hyderabad-28 66 ----- (1) (2) (3) 84. Andhra Pradesh Krishna Balija, Poosala Samkshema Bhavan, Co-operative Societies Federation Ltd. Masab Tank, Hyderabad-28 85. Andhra Pradesh Bhattraja Samkshema Bhavan, Co-operative Societies Federation Ltd. Masab Tank, Hyderabad-28 86. Andhra Pradesh Medara Samkshema Bhavan, Finance Corporation. Masab Tank, Hyderabad-28 87. Andhra Pradesh Kummari Salivahana Samkshema Bhavan, Co-operative Societies Federation Ltd. Masab Tank, Hyderabad-28 88. Andhra Pradesh StateVishwabrahmana Samkshema Bhavan, Co-operative Corporation Ltd. Masab Tank, Hyderabad-28 89. Andhra Pradesh Taddy Tappers Samkshema Bhavan, Co-operative Societies Federation Ltd. Masab Tank, Hyderabad-28. 67 ----- THE TENTH SCHEDULE (See section 75) CONTINUANCE OF FACILITIES IN CERTAIN STATE INSTITUTIONS **List of Training Institutions/Centres** 1. Andhra Pradesh State Co-operative Union, Hyderabad. 2. Andhra Pradesh Study Circle for Backward Classes, Visakhapatnam. 3. Environment Protection Training and Research Institute, Hyderabad. 4. Andhra Pradesh Forest Academy, Ranga Reddy District. 5. Andhra Pradesh State Council of Science and Technology (APCOST), Hyderabad. 6. Dr.MCR Human Resource Development Institute of Andhra Pradesh, Hyderabad. 7. Centre for Good Governance, Hyderabad. 8. State Institute of Health and Family Welfare, Vengalrao Nagar, Hyderabad. 9. State Board of Technical Education and Training, Hyderabad. 10. Andhra Pradesh Police Academy, Hyderabad. 11. Water and Land Management, Training and Research Institute, Hyderabad. 12. AMR Andhra Pradesh Academy of Rural Development, Hyderabad. 13. Sriramananada Theertha Training and Research Institute. 14. Andhra Pradesh Prohibition and Excise Academy. 15. State Institute of Educational Technology, Hyderabad. 16. State Council of Educational Research and Training, Hyderabad. 17. Andhra Pradesh Study Circle, Hyderabad. 18. Tribal Culture and Research Institute, Sankshema Bhavan, Masab Tank, Hyderabad. 19. Board of Intermediate Education, Hyderabad. 20. Andhra Pradesh State Seeds Certification Agency, Hyderabad. 21. Andhra Pradesh Live Stock Development Agency, Hyderabad. 22. Centre for Forest and Natural Resource Management Studies (CEFNARM), Ranga Reddy District. 23. Andhra Pradesh Press Academy, Hyderabad. 24. AIDS Control Society, Hyderabad. 25. Andhra Pradesh Medical and Aromatic Plants Board, Hyderabad. 26. Andhra Pradesh Para Medical Board, Hyderabad. 27. Andhra Pradesh State Council of Higher Education, Hyderabad. 28. Forensic Science Laboratory, Hyderabad. 29. State Level Police Recruitment Board. 30. Society for Andhra Pradesh Network (SAPNET), Hyderabad. 31. Andhra Pradesh Engineering Research Labs, Hyderabad. 68 ----- 32. Andhra Pradesh Urdu Academy, Hyderabad. 33. Andhra Pradesh Urban Services for the Poor, Hyderabad. 34. Mission for Elimination of Poverty in Municipal Areas (MEPMA), Hyderabad. 35. Andhra Pradesh Rural Livelihoods Project (P.M.U), Hyderabad. 36. Water Conservation Mission. 37. Society for Elimination of Rural Poverty, Hyderabad. 38. Employment Generation and Marketing Mission, Hyderabad. 39. Andhra Pradesh State Remote Sensing Applications Centre, Hyderabad. 40. Andhra Pradesh Open School Society, Hyderabad. 41. A.P.R.E.I. Society, Hyderabad. 42. Andhra Pradesh Social Welfare Residential Educational Institutions Society (A.P.S.W.R.E.I.), Hyderabad. 43. State Agriculture Management and Extention Training Institute (SAMETI) Hyderabad. 44. Soil Conservation Training Centre, Hyderabad. 45. State Management Institute for Livestock Development in Andhra Pradesh, Hyderabad (SMILDA), Hyderabad. 46. State Animal Husbandry Training Centre, East Godavari. 47. State Institute for Fisheries Technologies (SIFT), Kakinada. 48. Mahatma Jyothiba Phule Andhra Pradesh Backward Classes Welfare Residential Educational Institutions Society, Hyderabad. 49. Andhra Pradesh Commission for Backward Classes, Hyderabad. 50. Hindi Academy, Hyderabad. 51. Telugu Academy, Hyderabad. 52. Sanskrit Academy, Hyderabad. 53. Oriental Manuscripts Library and Research Institute, Hyderabad. 54. Andhra Pradesh State Archives and Research Institute, Hyderabad. 55. Rajiv Gandhi University of Knowledge Technologies, Hyderabad. 56. Jawaharlal Nehru Architecture and Fine Arts University, Hyderabad. 57. Sri Padmavathi Mahila University, Tirupati. 58. Dravidian University, Kuppam. 59. Telugu University, Hyderabad. 60. Dr. B.R. Ambedkar Open University, Hyderabad. 61. RVM (SSA) Authority, Hyderabad. 62. Andhra Pradesh Government Text Book Press, Hyderabad. 63. State Central Library, Hyderabad. 64. Andhra Pradesh Pollution Control Board, Hyderabad. 69 ----- 65. Andhra Pradesh State Bio-Diversity Board, Hyderabad. 66. Andhra Pradesh National Green Corps, Secunderabad. 67. Directorate of Institute of Preventive Medicine, Hyderabad. 68. Institute for Electronic Governance (IEG) AP Society for Knowledge Networks, Hyderabad. 69. National Institute of Urban Management (NIUM), Hyderabad. 70. Andhra Pradesh State Wakf Board, Hyderabad. 71. The Survey Commissioner of Wakfs, Hyderabad. 72. Centre for Educational Development of Minorities, Hyderabad. 73. Dairatul Maarif, OU Hyderabad. 74. Andhra Pradesh State Haj Committee, Hyderabad. 75. Andhra Pradesh State Development Planning Society, Hyderabad. 76. Extention Training Centre, Rajendranagar. 77. Extention Training Centre, Hasanparthy. 78. Extention Training Centre, Bapatla. 79. Extention Training Centre, Samalkot. 80. Extention Training Centre, Srikalahasthi. 81. Rajiv Education and Employment Mission in Andhra Pradesh (REEMAP), Hyderabad. 82. Society for Rural Development Services, Hyderabad. 83. Society for Social Audit, Accountability and Transparency, Hyderabad. 84. Streenidhi Credit Cooperative Federation Ltd., Hyderabad. 85. Andhra Pradesh Survey Training Academy, Hyderabad. 86. The Ambedkar Research and Training Institute for Scheduled Castes, Hyderabad. 87. Andhra Pradesh State Commission for Scheduled Castes and Scheduled Tribes, Hyderabad. 88. Victoria Memorial Home (Residential School), Hyderabad. 89. APTW Residential Education Institutions Society (Gurukulam), Hyderabad. 90. DR. YSR Study Circle for Scheduled Tribes (PETC), Secunderabad. 91. Andhra Pradesh Women's Commission, Secunderabad. 92. Andhra Pradesh State Social Welfare Advisory Board, Hyderabad. 93. State Commission for Protection of Child Rights, Secunderabad. 94. The Training Centre for Teachers of Visually Handicapped, Secunderabad. 95. Study Circle for Disabled Andhra Pradesh, Hyderabad. 96. APSRTC Employees THRIFT and Credit Cooperative Society Ltd., Hyderabad. 97. Truck Operators Highway Amenities Society (TOHAS), Hyderabad. 98. National Cadet Corps Directorate, Secunderabad. 70 ----- 99. Shilparamam Arts Crafts Cultural Society, Madhapur, Hyderabad. 100. Dr. YSR National Institute of Tourism and Hospitality Management, Hyderabad. 101. State Institute of Correctional Administration, Chanchalguda, Hyderabad. 102. Andhra Pradesh Fire Services and Civil Defence Training Institute, Hyderabad. 103. Sri Pragada Kotaiah Memorial Indian Institute of Handloom Technology (SPKMIIHT), Nellore. 104. Telugu Chenetha Parishramika Shikshna Kendram, Ananthapur. 105. Weavers Training Centre, Karimnagar (WTC), Karim Nagar. 106. Powerloom Service Centre, Sircilla, Karimnagar. 107. Khadi Gramodyoga Maha Vidyalaya, Hyderabad. 71 ----- THE ELEVENTH SCHEDULE [See section 85(7)(e)] Principles governing the functioning of the River Management Boards. 1. The operation protocol notified by the Ministry of Water Resources with respect to water resources arrived at based on appropriate dependability criteria after the adjudication by the Krishna Water Disputes Tribunal shall be binding on both the successor States. 2. In the event of conflicting demand of water for irrigation and power, the requirement of water for irrigation shall take precedence. 3. In the event of conflicting demand of water for irrigation and drinking water, therequirement of water for drinking water purpose shall take precedence. 4. The allocations made by the River Water Tribunals with regard to various projectson Godavari and Krishna Rivers or for the regions of the existing State of Andhra Pradesh, in respect of assured water shall remain the same. 5. Allocations, if any, to be made on excess flows by any Tribunal in future shall be binding on both the State of Telangana and the successor State of Andhra Pradesh. 6. While the successor State Governments shall be responsible for managing naturalcalamities, the Boards shall advise the two State Governments on the management of disaster or drought or flood in the rivers of Krishna and Godavari, particularly in reference to the release of water for the management and mitigation of the natural calamities. The Boards shall have the full authority to get their orders implemented by the two successor State Governments promptly and effectively in respect of operation of the head works of the dams, reservoirs or head works of canals and works appurtenant thereto including the hydel power projects, as notified by the Central Government, on Krishna and Godavari Rivers. 7. No new projects based on water resources arrived at based on appropriate dependability criteria on Godavari or Krishna rivers can be taken up by the State of Telanganaor the State of Andhra Pradesh without obtaining sanction from the Apex Council on Riverwater resources. All such proposals shall be first appraised and technically cleared by therespective Board, before sanction by the said Apex Council. 8. Execution of ongoing projects and future new projects on Godavari and Krishna rivers shall be the responsibility of the State Government concerned where the project is located. 9. In case of non-implementation of the decision by either of the States, the defaulting State shall bear the responsibility and shall face financial and other penalties imposed by the Central Government. 10. The following irrigation projects which are under construction shall be completed as per the plan notified by the existing State of Andhra Pradesh and the water sharing arrangement shall continue as such:— _(i) Handri Niva_ _(ii) Telugu Ganga_ _(iii) Galeru Nagiri_ _(iv) Venegondu_ _(v) Kalvakurthi_ _(vi) Nettempadu._ 72 ----- THE TWELFTH SCHEDULE (See section 92) **A. Coal** 1. Of the total equity of Singareni Collieries Company Ltd. (SCCL), 51% shall be with the Government of Telangana and 49% with the Government of India. 2. Existing coal linkages of SCCL shall continue without any change. 3. New linkages shall be allotted to the successor States as per the New Coal Distribution Policy by Government of India. 4. End use plants of the allocated coal blocks shall continue with coal from the blockto be supplied in proportion to their respective capacities. **B. Oil and Gas** 1. Allocation of natural gas will continue to be done as per the policies and guidelines issued by the Government of India from time to time. 2. The royalties payable on domestic onshore production of oil and gas shall accrue to the State in which such production takes place. **C. Power** 1. Units of APGENCO shall be divided based on geographical location of power plants. 2. Existing Power Purchase Agreements (PPAs) with respective DISCOMS shall continue for both on-going projects and projects under construction. 3. The existing Andhra Pradesh Electricity Regulatory Commission (APERC) shall function as a joint regulatory body for a period not exceeding six months within which time separate SERCs will be formed in the successor States. 4. The existing State Load Despatch Centre (SLDC) shall function for both successor States for a period not exceeding two years within which time separate SLDC shall be set up for each successor State. During this period, the existing SLDC shall function under the direct administration and control of the Southern RLDC at Bengaluru. 5. Transmission lines of APTRANSCO of 132 KV and higher voltage cutting across the successor States shall be deemed as Inter-State Transmission System (ISTS) lines. The transmission lines falling within the territory of each successor State shall be transferred to the respective State Transmission Utilities. The maintenance of ISTS lines shall also be done by successor States in their respective jurisdictions. 6. The power of the Central Generating Stations will be allotted in such ratio to the State of Telangana and the State of Andhra Pradesh based on the actual energy consumption of the last 5 years of the relevant DISCOMS in the respective successor State. 7. For a period of ten years, the successor State that has a deficit of electricity shall have the first right of refusal for the purchase of surplus power from the other successor State. 8. The districts of Anantapur and Kurnool which fall within the jurisdiction of the AP Central Power Distribution Company Ltd. will now be reassigned to the AP South Power Distribution Company Ltd. 73 ----- THE THIRTEENTH SCHEDULE (See section 93) **Education** 1. The Government of India shall take steps to establish institutions of national importance in the 12th and 13th Plan periods in the successor State of AndhraPradesh. This would include one IIT, one NIT, one IIM, one IISER, one Central University, one Petroleum University, one Agricultural University and one IIIT. 2. The Government of India shall establish one AIIMS-type Super-Specialty Hospitalcum-Teaching Institution in the successor State of Andhra Pradesh. 3. The Government of India shall establish a Tribal University each in the State of Andhra Pradesh and in the State of Telangana. 4. A Horticulture University shall be established in the successor State of Telangana. 5. The Government of India shall establish the National Institute of Disaster Management in the successor State of Andhra Pradesh. **Infrastructure** 1. The Government of India shall develop a new major port at Duggirajupatnam in the successor State of Andhra Pradesh to be completed in phases with Phase I by end-2018; 2. SAIL shall examine, within six months from the appointed day, the feasibility of establishing an integrated steel plant in Khammam district of the successor State of Telangana; 3. SAIL shall, within six months from the appointed day, examine the feasibility of establishing an integrated Steel Plant in YSR District of the successor State of Andhra Pradesh; 4. IOC or HPCL shall, within six months from the appointed day, examine the feasibility of establishing a greenfield crude oil refinery and petrochemical complex in the successor State of Andhra Pradesh and take an expeditious decision thereon; 5. The Government of India shall, within six months from the appointed day, examine the feasibility of establishing a Vizag-Chennai industrial corridor along the lines of Delhi-Mumbai Industrial Corridor and take within such period an expeditious decision thereon; 6. The Government of India shall, within six months from the appointed day, examine the feasibility of expanding the existing Visakhapatnam, Vijayawada and Tirupatiairports to international standards and take an expeditious decision thereon; 7. NTPC shall establish a 4000 MW power facility in the successor State of Telangana after establishing necessary coal linkages; 8. Indian Railways shall, within six months from the appointed day, examine establishinga new railway zone in the successor State of Andhra Pradesh and take an expeditious decision thereon; 9. NHAI shall take necessary steps to improve road connectivity in the backward regions of the successor State of Telangana; 10. The Indian Railways shall, within six months from the appointed day, examine the feasibility of establishing a Rail Coach Factory in the successor State of Telangana and improve rail connectivity in the State and take an expeditious decision thereon; 74 ----- 11. The Central Government shall take measures to establish rapid rail and road connectivity from the new capital of the successor State of Andhra Pradesh to Hyderabad and other important cities of Telangana; 12. The Government of India shall examine the feasibility of Metro Rail facility in Vishakhapatnam and Vijayawada-Guntur-Tenali Metropolitan Urban Development Authority within a period of one year from the appointed day and take an expeditious decision thereon. 75 -----

4-Mar-2014

10

The Rani Lakshmi Bai Central Agricultural University Act, 2014

https://www.indiacode.nic.in/bitstream/123456789/2125/1/201410.pdf

central

# THE RANI LAKSHMI BAI CENTRAL AGRICULTURAL UNIVERSITY ACT, 2014 ____________ # ARRANGEMENT OF SECTIONS ____________ SECTIONS 1. Short title and commencement. 2. Declaration of Rani Lakshmi Bai Central Agricultural University as an institution of national importance. 3. Definitions. 4. The University. 5. Objects of the University. 6. Powers of the University. 7. Jurisdiction. 8. University open to all classes, castes and creed. 9. The Visitor. 10. Officers of the University. 11. The Chancellor. 12. The Vice-Chancellor. 13. Deans and Directors. 14. The Registrar. 15. The Comptroller. 16. Other officers. 17. Authorities of the University. 18. The Board of Management. 19. The Academic Council. 20. The Research Council. 21. The Extension Education Council. 22. The Finance Committee. 23. Faculties. 24. The Board of Studies. 25. Other authorities. 26. Power to make Statutes. 27. Statutes how to be made. 28. Power to make Ordinances. 29. Regulations. 30. Annual report. 31. Annual accounts. 32. Conditions of service of employees. 33. Procedure of appeal and arbitration in disciplinary cases against students. 34. Right to appeal. 35. Provident and pension funds. 36. Disputes as to constitution of University authorities. 37. Constitution of Committees. 38. Filling of casual vacancies. 39. Proceedings of the University authorities not invalidated by vacancy. 40. Protection of action taken in good faith. 41. Mode of proof of University records. 42. Power to remove difficulties. 43. Transitional provisions. 44. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid before Parliament. THE SCHEDULE. 1 ----- # THE RANI LAKSHMI BAI CENTRAL AGRICULTURAL UNIVERSITY ACT, 2014 ACT NO. 10 OF 2014 [4th March, 2014.] # An Act to provide for the establishment and incorporation of a University in the Bundelkhand region for the development of agriculture and for the furtherance of the advancement of learning and pursuit of research in agriculture and allied sciences and declare it to be an institution of national importance. BE it enacted by Parliament in the Sixty-fifth Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the Rani Lakshmi Bai Central** Agricultural University Act, 2014. (2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint. **2. Declaration of Rani Lakshmi Bai Central Agricultural University as an institution of** **national importance.—Whereas the objects of the institution known as the Rani Lakshmi Bai Central** Agricultural University are such as to make the institution one of national importance, it is hereby declared that the institution known as the Rani Lakshmi Bai Central Agricultural University is an institution of national importance. **3.** **Definitions.—In this Act, and in all Statutes made hereunder, unless the context otherwise** requires,— (a) ―Academic Council‖ means the Academic Council of the University; (b) ―Academic staff‖ means such categories of staff as are designated as academic staff by the Ordinances; (c) ―agriculture‖ means the basic and applied sciences of the soil and water management, crop production including production of all garden crops, control of plants, pests and diseases, horticulture including floriculture, animal husbandry including veterinary and dairy science, fisheries, forestry including farm forestry, home-science, agricultural engineering and technology, marketing and processing of agricultural and animal husbandry products, land use and management; (d) ―Board‖ means the Board of Management of the University; (e) ―Board of Studies‖ means the Board of Studies of the University; (f) ―Bundelkhand‖ means the area covering six districts, namely Chhatarpur, Damoh, Datia, Panna, Sagar and Tikamgarh of Madhya Pradesh and seven districts, namely Banda, Chitrakoot, Hamirpur, Jalaun, Jhansi, Lalitpur and Mahoba of Uttar Pradesh; (g) ―Chancellor‖ means the Chancellor of the University; (h) ―college‖ means a constituent college of the University whether located at the headquarters, campus or elsewhere; (i) ―Department‖ means a Department of Studies of the University; (j) ―employee‖ means any person appointed by the University and includes teachers and other staff of the University; (k) ―extension education‖ means the educational activities concerned with the training of orchardists, farmers and other groups serving agriculture, horticulture, fisheries and improved practices related thereto and the various phases of scientific technology related to agriculture and agricultural production including post harvest technology and marketing; (l) ―Faculty‖ means Faculty of the University; 2 ----- (m) ―Ordinances‖ means the Ordinances of the University; (n) ―Regulations‖ means the Regulations made by any authority of the University; (o) ―Research Advisory Committee‖ means the Research Advisory Committee of the University; (p) ―Statutes‖ means the Statutes of the University; (q) ―Student‖ means a person enrolled in the University for undergoing a course of studies for obtaining a degree, diploma or other academic distinction duly instituted; (r) ―teachers‖ means Professors, Associate Professors, Assistant Professors, Teaching Faculty Members and their equivalent appointed for imparting instruction or conducting research or extension education programmes or combination of these in the University, college or any institute maintained by the University and designated as teachers by the Ordinances; (s) ―University‖ means the Rani Lakshmi Bai Central Agricultural University established under this Act; (t) ―Vice-Chancellor‖ means the Vice-Chancellor of the University; (u) ―Visitor‖ means the Visitor of the University. **4.** **The University.—(1) There shall be established a University by the name of the ―Rani Lakshmi** Bai Central Agricultural University‖. (2) The headquarters of the University shall be at Jhansi in the State of Uttar Pradesh and it may also establish campuses at such other places within its jurisdiction as it may deem fit: Provided that the University shall establish two colleges in the State of Madhya Pradesh and two colleges at Jhansi in the State of Uttar Pradesh in the Bundelkhand Region. (3) The first Chancellor and the first Vice-Chancellor and the first members of the Board, the Academic Council and all persons who may hereafter become such officers or members, so long as they continue to hold such office or membership are hereby constituted a body corporate by the name of the Rani Lakshmi Bai Central Agricultural University. (4) The University shall have perpetual succession and a common seal and shall sue and be sued by the said name. **5. Objects of the University.—The objects of the University shall be—** (a) to impart education in different branches of agriculture and allied sciences as it may deem fit; (b) to further the advancement of learning and conducting of research in agricultural and allied sciences; (c) to undertake programmes of extension education in Bundelkhand in the districts of the States under its jurisdiction; (d) to promote partnership and linkages with national and international educational institutions; and (e) to undertake such other activities as it may, from time to time, determine. **6. Powers of the University.—The University shall have the following powers, namely:—** (i) to make provisions for instructions in agriculture and allied sciences; (ii) to make provisions for conduct of research in agriculture and allied branches of learning; (iii) to make provisions for dissemination of the findings of research and technical information through extension programmes; (iv) to grant, subject to such conditions as it may determine, diplomas or certificates to, and confer degrees or other academic distinctions on the basis of examination, evaluation or any other method of testing, on persons, and to withdraw any such diplomas, certificates, degrees or other academic distinction for good and sufficient cause; 3 ----- (v) to confer honorary degrees or other distinctions in the manner prescribed by the Statutes; (vi) to provide lectures and instructions for field workers, village leaders and other persons not enrolled as regular students of the University and to grant certificates to them as may be prescribed by the Statutes; (vii) to co-operate or collaborate or associate with any other University or authority or institution of higher learning in such manner and for such purpose as the University may determine; (viii) to establish and maintain colleges relating to agriculture, horticulture, fisheries, forestry, veterinary and animal science, dairying, home-science and allied sciences, as necessary; (ix) to establish and maintain such campuses, special centres, specialised laboratories, libraries, museums or other units for research and institution as are, in its opinion, necessary for the furtherance of its objects; (x) to create teaching, research and extension education posts and to make appointments thereto; (xi) to create administrative, ministerial and other posts and to make appointments thereto; (xii) to institute and award fellowships, scholarships, studentships, medals and prizes; (xiii) to determine standards of admission to the University which may include examination, evaluation or any other method of testing; (xiv) to provide and maintain residential accommodation for students and employees; (xv) to supervise the residential accommodation of the students and employees of the University and to make arrangements for promoting their health and general welfare; (xvi) to lay down conditions of service of all categories of employees, including their code of conduct; (xvii) to regulate and enforce discipline among the students and the employees and to take such disciplinary measures in this regard as it may deem necessary; (xviii) to fix, demand and receive such fees and other charges as may be prescribed by the Statutes; (xix) to borrow, with the approval of the Central Government on the security of its property, money for the purpose of the University; (xx) to receive benefactions, donations and gifts and to acquire, hold, manage and dispose of any property, movable or immovable including trust and endowment properties, for its purposes; (xxi) to do all such other acts and things as may be necessary, incidental or conducive to the attainment of all or any of its objects. **7.** **Jurisdiction.—(1) The jurisdiction and responsibility of the University with respect to teaching,** research and programmes of extension education at the University level, in the field of agriculture shall extend to whole country and priority shall be laid on the issues related to Bundelkhand region. (2) All colleges, research and experimental stations or other institutions to be established under the authority of the University shall come in as constituent units under the full management and control of the officers and authorities and no such units shall be recognised as affiliated units. (3) The University may assume responsibility for the training of field extension workers and others and may develop such training centres as may be required in various parts of Bundelkhand under its jurisdiction. **8. University open to all classes, castes and creed.—The University shall be open to persons of** either sex and of whatever caste, creed, race or class, and it shall not be lawful for the University to adopt or impose on any person, any test whatsoever of religious belief or profession in order to entitle him to be appointed as a teacher of the University or to hold any other office therein or be admitted as a student in the University or to graduate thereat or to enjoy or exercise any privilege thereof: 4 ----- Provided that nothing in this section shall be deemed to prevent the University from making special provisions for the employment or admission of women, persons with disabilities or of persons belonging to the weaker sections of the society and, in particular, of the Scheduled Castes, the Scheduled Tribes and the other socially and educationally backward classes of citizens. **9. The Visitor.—(1) The President of India shall be the Visitor of the University.** (2) Subject to the provisions of sub-sections (3) and (4), the Visitor shall have the right to cause an inspection to be made, by such person or persons as he may direct, of the University, its buildings, laboratories, libraries, museums, workshops and equipments, and of any institution or college and also of the examination, instruction and other work conducted or done by the University, and to cause an inquiry to be made in like manner in respect of any matter connected with the administration and finances of the University. (3) The Visitor shall, in every case, give notice to the University of his intention to cause, an inspection or inquiry to be made and the University shall, on receipt of such notice, have the right to make, within thirty days from the date of receipt of the notice or such other period as the Visitor may determine, such representations to him as it may consider necessary. (4) After considering the representations, if any, made by the University, the Visitor may cause to be made such inspection or inquiry as is referred to in sub-section (2). (5) Where an inspection or inquiry has been caused to be made by the Visitor, the University shall be entitled to appoint a representative who shall have the right to appear in person and to be heard on such inspection or inquiry. (6) The Visitor may address the Vice-Chancellor with reference to the results of such inspection or inquiry together with such views and advice with regard to the action to be taken thereon as the Visitor may be pleased to offer and on receipt of the address made by the Visitor, the Vice-Chancellor shall communicate forthwith to the Board, the results of the inspection or inquiry and the views of the Visitor and the advice tendered by him upon the action to be taken thereon. (7) The Board shall communicate through the Vice-Chancellor to the Visitor such action, if any, as it proposes to take or has been taken by it upon the results of such inspection or inquiry. (8) Where the Board does not, within reasonable time, take action to the satisfaction of the Visitor, the Visitor may, after considering any explanation furnished or representation made by the Board, issue such directions as he may think fit and the Board shall be bound to comply with such directions. (9) Without prejudice to the foregoing provisions of this section, the Visitor may, by an order in writing, annul any proceeding of the University which is not in conformity with this Act, the Statutes or the Ordinances: Provided that before making any such order, he shall call upon the University to show cause why such an order should not be made and, if any cause is shown within a reasonable time, he shall consider the same. (10) The Visitor shall have such other powers as may be prescribed by the Statutes. **10. Officers of the University.—The following shall be the officers of the University, namely:—** (1) the Chancellor; (2) the Vice-Chancellor; (3) the Deans; (4) the Directors; (5) the Registrar; (6) the Comptroller; (7) the University Librarian; and 5 ----- (8) such other officers as may be prescribed by the Statutes. **11. The Chancellor.—(1)** The Chancellor shall be appointed by the Visitor in such manner as may be prescribed by the Statutes. (2) The Chancellor shall, by virtue of his office, be the Head of the University. (3) The Chancellor shall, if present, preside at the convocations of the University held for conferring degrees. **12.** **The Vice-Chancellor.—(1) The Vice-Chancellor shall be appointed by the Visitor in such** manner as may be prescribed by the Statutes. (2) The Vice-Chancellor shall be the principal executive and academic officer of the University and shall exercise general supervision and control over the affairs of the University and give effect to the decisions of all the authorities of the University. (3) The Vice-Chancellor may, if he is of the opinion that immediate action is necessary on any matter, exercise any power conferred on any authority of the University by or under this Act and shall report to such authority the action taken by him on such matter: Provided that if the authority concerned is of opinion that such action ought not to have been taken, it may refer the matter to the Visitor whose decision thereon shall be final: Provided further that any person in the service of the University who is aggrieved by the action taken by the Vice-Chancellor under this sub-section shall have the right to appeal against such action to the Board within three months from the date on which decision on such action is communicated to him and thereupon the Board may confirm, modify or reverse the action taken by the Vice-Chancellor. (4) The Vice-Chancellor, if he is of the opinion that any decision of any authority of the University is beyond the powers of the authority conferred by the provisions of this Act, the Statutes or the Ordinances or that any decision taken is not in the interest of the University, may ask the authority concerned to review its decision within sixty days of such decision and if the authority refuses to review the decision either in whole or in part or no decision is taken by it within the said period of sixty days, the matter shall be referred to the Visitor whose decision thereon shall be final. (5) The Vice-Chancellor shall exercise such other powers and perform such other duties as may be prescribed by the Statutes or the Ordinances. **13.** **Deans and Directors.—Every Dean and every Director shall be appointed in such manner and** shall exercise such powers and perform such duties as may be prescribed by the Statutes. **14.** **The Registrar.—(1) The Registrar shall be appointed in such manner as may be prescribed by** the Statutes. (2) The Registrar shall have the power to enter into agreements, sign documents and authenticate records on behalf of the University and shall exercise such powers and perform such duties as may be prescribed by the Statutes. **15. The Comptroller.—The Comptroller shall be appointed in such manner and shall exercise such** powers and perform such duties as may be prescribed by the Statutes. **16. Other officers.—The manner of appointment and powers and duties of the other officers of the** University shall be as prescribed by the Statutes. **17.** **Authorities of the University.—The following shall be the authorities of the University,** namely:– (1) the Board of Management; (2) the Academic Council; (3) the Research Council; 6 ----- (4) the Extension Education Council; (5) the Finance Committee; (6) the Faculties and Board of Studies; and (7) such other authorities as may be prescribed by the Statutes. **18.** **The Board of Management.—(1) The Board of Management shall be the principal executive** body of the University. (2) The constitution of the Board, the term of office of its members and its powers and functions shall be prescribed by the Statutes. **19.** **The Academic Council.—(1) The Academic Council shall be the principal academic body of** the University and shall, subject to the provisions of this Act, the Statutes and Ordinances, have the control and general regulation of, and be responsible for, the maintenance of standards of learning, education, instruction, evaluation and examination within the University and shall exercise such other powers and perform such other functions as may be conferred or imposed upon it by the Statutes. (2) The constitution of the Academic Council and the term of office of its members shall be prescribed by the Statutes. **20.** **The Research Council.—The constitution, powers and functions of the Research Council shall** be prescribed by the Statutes. **21.** **The Extension Education Council.—The constitution, powers and functions of the Extension** Education Council shall be prescribed by the Statutes. **22.** **The Finance Committee.—The constitution, powers and functions of the Finance Committee** shall be prescribed by the Statutes. **23. Faculties.—The University shall have such Faculties as may be prescribed by the Statutes.** **24. The Board of Studies.—The constitution, powers and functions of the Board of Studies shall be** prescribed by the Statutes. **25.** **Other authorities.—The constitution, powers and functions of other authorities of the** University referred to in clause (7) of section 17 shall be such as may be prescribed by the Statutes. **26. Power to make Statutes.—Subject to the provisions of this Act, the Statutes may provide for all** or any of the following matters, namely:— (a) the constitution, powers and functions of the authorities of the University, as may be constituted from time to time; (b) the appointment and continuance in office of the members of the said authorities, the filling up of vacancies of members, and all other matters relating to those authorities for which it may be necessary or desirable to provide; (c) the appointment, powers and duties of the officers of the University and their emoluments; (d) the appointment of teachers, academic staff and other employees of the University and their emoluments; (e) the appointment of teachers and academic staff working in any other University or organisation for a specific period for undertaking a joint project; (f) the conditions of service of employees including provision for pension, insurance and provident fund, the manner of termination of service and disciplinary action; (g) the principles governing the seniority of service of employees of the University; (h) the procedure for arbitration in cases of dispute between employees or students and the University; 7 ----- (i) the procedure for appeal to the Board by any employee or student against the action of any officer or authority of the University; (j) the establishment and abolition of Departments, centres, colleges and institutions; (k) the conferment of honorary degrees; (l) the withdrawal of degrees, diplomas, certificates and other academic distinctions; (m) the institution of fellowships, scholarships, studentships, medals and prizes; (n) the delegation of powers vested in the authorities or officers of the University; (o) the maintenance of discipline among the employees and students; (p) all other matters which are to be, or may be, prescribed by the Statutes. **27.** **Statutes how to be made.—(1) The first Statutes are those set out in the Schedule.** (2) The Board may from time to time make Statutes or may amend or repeal the Statutes referred to in sub-section (1): Provided that the Board shall not make, amend or repeal any Statute affecting the status, powers or constitution of any authority of the University until such authority has been given an opportunity of expressing an opinion in writing on the proposed changes, and any opinion so expressed shall be considered by the Board. (3) Every Statute or any amendment or repeal of a Statute shall require the assent of the Visitor who may assent thereto or withhold assent therefrom or remit it to the Board for consideration. (4) A Statute or a Statute amending or repealing an existing Statute shall have no validity unless it has been assented to by the Visitor. (5) Notwithstanding anything contained in the foregoing sub-sections, the Visitor may amend or repeal the Statutes referred to in sub-section (1) during the period of three years immediately after the commencement of this Act. (6) Notwithstanding anything contained in the foregoing sub-sections, the Visitor may direct the University to make provisions in the Statutes in respect of any matter specified by him and if the Board is unable to implement such direction within sixty days of its receipt, the Visitor may, after considering the reasons, if any, communicated by the Board for its inability to comply with such direction, make or amend the Statutes suitably. **28. Power to make Ordinances.—(1) Subject to the provisions of this Act and Statutes, the** Ordinances may provide for all or any of the following matters, namely:— (a) the admission of students to the University and their enrolment as such; (b) the courses of study to be laid down for all degrees, diplomas and certificates of the University; (c) the medium of instruction and examination; (d) the award of degrees, diplomas, certificates and other academic distinctions, the qualifications for the same and the means to be taken relating to the granting and obtaining of the same; (e) the fees to be charged for courses of study in the University and for admission to the examinations, degrees, diplomas and certificates of the University; (f) the conditions for award of fellowships, scholarships, studentships, medals and prizes; (g) the conduct of examinations, including the term of office and manner of appointment and the duties of examining bodies, examiners and moderators; (h) the conditions of residence of the students; 8 ----- (i) the special arrangements, if any, which may be made for the residence, discipline and teaching of women students and the prescribing of special courses of studies for them; (j) the appointment and emoluments of employees other than those for whom provision has been made in the Statutes; (k) the establishment of special centres, specialised laboratories and other committees; (l) the manner of co-operation and collaboration with other Universities and authorities including learned bodies or associations; (m) the creation, composition and functions of any other body which is considered necessary for improving the academic life of the University; (n) such other terms and conditions of service of teachers and other academic staff as are not prescribed by the Statutes; (o) the management of colleges and institutions established by the University; (p) the setting up of a machinery for redressal of grievances of employees; and (q) all other matters which by this Act or the Statutes may be provided for by the Ordinances. (2) The first Ordinances shall be made by the Vice-Chancellor with the previous approval of the Central Government and the Ordinances so made may be amended or repealed at any time by the Board in the manner prescribed by the Statutes. **29.** **Regulations. —The authorities of the University may make Regulations, consistent with this** Act, the Statutes and the Ordinances for the conduct of their own business and that of the Committees appointed by them and not provided for by this Act, the Statutes or the Ordinances in the manner prescribed by the Statutes. **30.** **Annual report.—(1) The annual report of the University shall be prepared under the direction** of the Board, which shall include, among other matters, the steps taken by the University towards the fulfilment of its objects and shall be submitted to the Board on or after such date as may be prescribed by the Statutes and the Board shall consider the report in its annual meeting. (2) The Board shall submit the annual report to the Visitor along with its comments, if any. (3) A copy of the annual report as prepared under sub-section (1) shall also be submitted to the Central Government, which shall, as soon as may be, cause the same to be laid before both the Houses of Parliament. **31.** **Annual accounts.—(1) The annual accounts of the University shall be prepared under the** directions of the Board and shall, once at least every year and at intervals of not more than fifteen months, be audited by the Comptroller and Auditor-General of India or by such persons as he may authorise in this behalf. (2) A copy of the annual accounts together with the audit report thereon shall be submitted to the Board and the Visitor along with the observations of the Board. (3) Any observations made by the Visitor on the annual accounts shall be brought to the notice of the Board and observations of the Board, if any, shall be submitted to the Visitor. (4) A copy of the annual accounts together with the audit report as submitted to the Visitor, shall also be submitted to the Central Government, which shall, as soon as may be, cause the same to be laid before both the Houses of Parliament. _(5) The audited annual accounts after having been laid before both the Houses of Parliament shall be_ published in the Official Gazette. **32.** **Conditions of service of employee.—(1) Every employee of the University shall be appointed** under a written contract, which shall be lodged with the University and a copy of which shall be furnished to the employee concerned. 9 ----- (2) Any dispute arising out of the contract between the University and any employee shall, at the request of the employee, be referred to a Tribunal of Arbitration consisting of one member appointed by the Board, one member nominated by the employee concerned and an umpire appointed by the Visitor. (3) The decision of the Tribunal shall be final, and no suit shall lie in any civil court in respect of the matters decided by the Tribunal. (4) Every request made by the employee under sub-section (2) shall be deemed to be a submission to arbitration upon the terms of this section within the meaning of the Arbitration and Conciliation Act, 1996 (26 of 1996). (5) The procedure for regulating the work of the Tribunal shall be prescribed by the Statutes. **33.** **Procedure of appeal and arbitration in disciplinary cases against students.—(1) Any** student or candidate for an examination whose name has been removed from the rolls of the University by the orders or resolution of the Vice-Chancellor, Discipline Committee or Examination Committee, as the case may be, and who has been debarred from appearing at the examinations of the University for more than one year, may, within ten days of the date of receipt of such orders or copy of such resolution by him, appeal to the Board and the Board may confirm, modify or reverse the decision of the ViceChancellor or the Committee, as the case may be. (2) Any dispute arising out of any disciplinary action taken by the University against a student shall, at the request of such student, be referred to a Tribunal of Arbitration and the provisions of sub-sections (2), (3), (4) and (5) of section 32 shall, as far as may be, apply to a reference made under this subsection. **34. Right to appeal.—Every employee or student of the University or of a college or institution** maintained by the University shall, notwithstanding anything contained in this Act, have a right to appeal, within such time as may be prescribed by the Statutes, to the Board against the decision of any officer or authority of the University or any college or an institution, as the case may be, and thereupon the Board may confirm, modify or reverse the decision appealed against. **35.** **Provident and pension funds.—(1) The University shall constitute for the benefit of its** employees such provident or pension fund or provide such insurance schemes as it may deem fit in such manner and subject to such conditions as may be prescribed by the Statutes. (2) Where such provident fund or pension fund has been so constituted, the Central Government may declare that the provisions of the Provident Funds Act, 1925 (19 of 1925), shall apply to such fund, as if it were a Government provident fund. **36.** **Disputes as to constitution of University authorities.—If any question arises as to whether** any person has been duly appointed as, or is entitled to be, a member of any authority of the University, the matter shall be referred to the Visitor whose decision thereon shall be final. **37. Constitution of Committees.—Where any authority of the University is given power by this** Act or the Statutes to appoint Committees, such Committees shall, save as otherwise provided, consist of the members of the authority concerned and of such persons, if any, as the authority in each case may think fit. **38. Filling of casual vacancies.—All casual vacancies among the members (other than** _ex officio_ members) of any authority of the University shall be filled, as soon as may be, by the person who appointed or co-opted the member whose place has become vacant and the person appointed or co-opted to a casual vacancy shall be a member of such authority or body for the residue of the term, for which the person whose place he fills would have been a member. **39. Proceedings of the University authorities not invalidated by vacancy.—No act or** proceedings of any authority of the University shall be invalid merely by reason of the existence of a vacancy or vacancies among its members. **40. Protection of action taken in good faith.—No suit, prosecution or other legal proceedings shall** lie against the Board, Vice-Chancellor, any authority or officer or other employee of the University for 10 ----- anything which is in good faith done or intended to be done in pursuance of any of the provisions of this Act, the Statutes or the Ordinances. **41.** **Mode of proof of University records.—A copy of any receipt, application, notice, order,** proceeding, resolution of any authority or Committee of the University, or other documents in possession of the University, or any entry in any register duly maintained by the University, if verified by the Registrar, shall be received as _prima facie evidence of such receipt, application, notice, order,_ proceeding, resolution or documents or the existence of entry in the register and shall be admitted as evidence of the matters and transactions therein where the original thereof would, if produced, have been admissible in evidence, notwithstanding anything contained in the Indian Evidence Act, 1872 (1 of 1872) or in any other law for the time being in force. **42.** **Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulties: Provided that no such order shall be made under this section after the expiry of three years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **43. Transitional provisions.—Notwithstanding anything contained in this Act, and the Statutes,—** (a) the first Chancellor and the first Vice-Chancellor shall be appointed by the Visitor and shall hold office for a term of five years; (b) the first Registrar and the first Comptroller shall be appointed by the Visitor and each of the said officers shall hold office for a term of three years; (c) the first members of the Board shall be nominated by the Visitor and shall hold office for a term of three years; (d) the first members of the Academic Council shall be nominated by the Visitor and shall hold office for a term of three years: Provided that if any vacancy occurs in the above offices or authorities, the same shall be filled by appointment or nomination, as the case may be, by the Visitor, and the person so appointed or nominated shall hold office for so long as the officer or member in whose place he is appointed or nominated would have held office, if such vacancy had not occurred. **44. Statutes, Ordinances and Regulations to be published in the Official Gazette and to be laid** **before Parliament.—(1) Every Statute, Ordinance or Regulation made under this Act shall be** published in the Official Gazette. (2) Every Statute, Ordinance or Regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the Statute, Ordinance or Regulation or both Houses agree that the Statute, Ordinance or Regulation should not be made, the Statute, Ordinance or Regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that Statute, Ordinance or Regulation. (3) The power to make Statutes, Ordinances or Regulations shall include the power to give retrospective effect from a date not earlier than the date of commencement of this Act, to the Statutes, Ordinances or Regulations or any of them but no retrospective effect shall be given to any Statute, Ordinance or Regulation so as to prejudicially affect the interests of any person to whom such Statutes, Ordinances or Regulations may be applicable. 11 ----- THE SCHEDULE (See section 27) THE STATUTES OF THE UNIVERSITY _The Chancellor_ 1. (1) The Chancellor shall be appointed by the Visitor from a panel of not less than three persons recommended by the Board from amongst persons of eminence in education in general and agricultural sciences in particular: Provided that if the Visitor does not approve any of the persons so recommended, he may call for fresh recommendations from the Board. (2) The Chancellor shall hold office for a term of five years and shall not be eligible for reappointment: Provided that in exceptional circumstances, the chancellor may continue to hold office until his successor enters upon his office. _The Vice-Chancellor_ 2. (1) The Vice-Chancellor shall be appointed by the Visitor from a panel of not less than three persons who shall be recommended by a Committee as constituted under clause (2). (2) The Committee referred to in clause (1) shall consist of the following:— (i) Secretary, Department of Agricultural Research and Education, Government of India who shall be the Chairman; (ii) one nominee of the Visitor as Member, who shall also be the Convener; (iii) one nominee of the Central Government. (3) The Vice-Chancellor shall be a whole-time salaried officer of the University. (4) The Vice-Chancellor shall hold office for a term of five years from the date on which he enters upon his office, or until he attains the age of seventy years, whichever is earlier, and he shall be eligible for reappointment for a further term of five years, or until he attains the age of seventy years whichever is earlier: Provided that in exceptional circumstances, the Vice-Chancellor may continue in office for a period not exceeding one year or until his successor is appointed and enters upon his office. (5) The emoluments and other conditions of service of the Vice-Chancellor shall be as follows:— (i) the Vice-Chancellor shall be paid a monthly salary and allowances other than the house rent allowance, at the rate fixed by the Central Government from time to time and he shall be entitled, without payment of rent, to use a furnished residence throughout his term of office and no charge shall fall on the Vice-Chancellor in respect of the maintenance of such residence; (ii) the Vice-Chancellor shall be entitled to such terminal benefits and allowances as may be fixed by the Board with the approval of the Visitor from time to time: Provided that where an employee of the University or a college or an institution maintained by it, or of any other University or any institution maintained by or affiliated to such other University, is appointed as the Vice-Chancellor, he may be allowed to continue to contribute to any provident fund of which he is a member and the University shall contribute to the account of such person in that provident fund at the same rate at which the person had been contributing immediately before his appointment as the Vice-Chancellor: Provided further that where such employee had been a member of any pension scheme, the University shall make the necessary contribution to such scheme; 12 ----- (iii) the Vice-Chancellor shall be entitled to travelling and other allowances as per the rate fixed from time to time by the Government of India for the officers equivalent to the rank of Secretary to the Government of India. Further, he shall be entitled to transfer travelling allowances and other allowances as admissible to officers of the rank of Secretary to the Government of India for joining and after relinquishing the post; (iv) the Vice-Chancellor shall be entitled to leave on full pay at the rate of thirty days in a calendar year and the leave shall be credited to his account in advance in two half-yearly instalments of fifteen days each on the first day of January and July every year: Provided that if the Vice-Chancellor assumes or relinquishes charge of the office of the Vice Chancellor during the currency of a half year, the leave shall be credited proportionately at the rate of two and a half days for each completed month of service; (v) in addition to the leave referred to in sub-clause (iv), the Vice-Chancellor shall also be entitled to half pay leave at the rate of twenty days for each completed year of service. This half pay leave may also be availed of as commuted leave on full pay on medical certificate. When commuted leave is available, twice the amount of half pay leave shall be debited against half pay leave due; (vi) the Vice-Chancellor shall be entitled to Leave Travel Concession and Home Travel Concession as per rules of Government of India; (vii) the Vice-Chancellor shall be entitled to the benefit of leave encashment at the time of laying down the office as per rules of Government of India. (6) If the office of the Vice-Chancellor becomes vacant due to death, resignation or otherwise, or if he is unable to perform his duties due to ill health or any other cause, the senior-most Dean or Director, as the case may be, shall perform the duties of the Vice-Chancellor until a new Vice-Chancellor assumes office or until the Vice-Chancellor attends to the duties of his office, as the case may be. _Powers and duties of the Vice-Chancellor_ 3. (1) The Vice-Chancellor shall be _ex officio Chairman of the Board, the Academic Council, the_ Finance Committee, the Research Council and the Extension Education Council and shall in the absence of the Chancellor, preside over the Convocation held for conferring degrees. (2) The Vice-Chancellor shall be entitled to be present at, and address any meeting of any authority of the University, but shall not be entitled to vote thereat unless he is a member of such authority. (3) It shall be the duty of the Vice-Chancellor to see that this Act, the Statutes, the Ordinances and the Regulations are duly observed, and he shall have all the powers necessary to ensure such observance. (4) The Vice-Chancellor shall exercise control over the affairs of the University and shall give effect to the decisions of all the authorities of the University. (5) The Vice-Chancellor shall have all the powers necessary for the proper maintenance of discipline in the University and he may delegate any such powers to such person or persons as he may deem fit. (6) The Vice-Chancellor shall have the power to convene or cause to be convened the meetings of the Board, the Academic Council, the Research Council, the Extension Education Council and the Finance Committee. _The Dean of colleges and Faculties_ 4. (1) Each Faculty shall have a Dean who shall also be the head of the college concerned. If any Faculty has more than one college, the Vice-Chancellor may nominate one of the Deans as Dean of the Faculty. (2) The Dean of the college shall be appointed by the Board on the recommendations of the Selection Committee constituted for the purpose as per Statute 18 and he shall be a whole-time salaried officer of the University. (3) The Dean shall be entitled to rent free and unfurnished residential accommodation. 13 ----- (4) The Dean shall hold the office for a term of five years and shall be eligible for reappointment: Provided that a Dean on attaining the age of sixty-five years shall cease to hold office as such. (5) When the office of the Dean is vacant or when the Dean is, by reason of illness, absence or any other cause, unable to perform duties of his office, the duties of the office shall be performed by such persons as the Vice-Chancellor may appoint for the purpose. (6) The Dean shall be responsible to the Vice-Chancellor for the conduct and maintenance of the standards of teaching in the college and Faculty and shall perform such other functions as may be prescribed by the Ordinances. (7) The Dean shall be the ex officio Chairman of the Board of Studies of the Faculty, a member of the Academic Council, the Research Council and the Extension Education Council of the University. _The Director of Education_ 5. (1) The Director of Education shall be appointed by the Board on the recommendations of the Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. (2) The Director of Education shall be entitled to rent free and unfurnished residential accommodation. (3) The Director of Education shall hold office for a term of five years and shall be eligible for reappointment: Provided that Director of Education on attaining the age of sixty-five years shall cease to hold office as such. (4) The Director of Education shall be responsible for planning, co-ordination and supervision for all educational programmes in the various Faculties of the University. _The Director of Research_ 6. (1) The Director of Research shall be appointed by the Board on the recommendations of the Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. (2) The Director of Research shall be entitled to rent free and unfurnished accommodation. (3) The Director of Research shall hold office for a term of five years and shall be eligible for reappointment: Provided that the Director of Research on attaining the age of sixty-five years shall cease to hold office as such. (4) The Director of Research shall be responsible for supervision and co-ordination of all research programmes of the University and shall be responsible to the Vice-Chancellor for performance of his duties. (5) The Director of Research shall be _ex officio Member-Secretary of the Research Council of the_ University. _The Director of Extension Education_ 7. (1) The Director of Extension Education shall be appointed by the Board on the recommendations of the Selection Committee constituted for the purpose and he shall be a whole-time salaried officer of the University. (2) The Director of Extension Education shall be entitled to rent free and unfurnished accommodation. (3) The Director of Extension Education shall hold office for a term of five years and shall be eligible for reappointment: 14 ----- Provided that the Director of Extension Education on attaining the age of sixty-five years shall cease to hold office as such. (4) The Director of Extension Education shall be responsible for supervision and co-ordination of all Extension Education Programmes in the University and shall be responsible to the Vice-Chancellor for performance of his duties. (5) The Director of Extension Education shall be _ex officio Member-Secretary of the Extension_ Education Council of the University. _The Registrar_ 8. (1) The Registrar shall be appointed by the Board on the recommendations of a duly constituted Selection Committee under Statute 18 and he shall be a whole-time salaried officer of the University. He shall be responsible to the Vice-Chancellor for performance of his duties. (2) He shall be appointed for a term of five years and shall be eligible for reappointment. (3) He may also be appointed on deputation for a specified period not exceeding five years. (4) The emoluments and other terms and conditions of service of the Registrar shall be such as may be prescribed by the Ordinances: Provided that the Registrar shall retire on attaining the age of sixty-two years. (5) In case of a person appointed on deputation, his tenure, emoluments and other terms of service shall be according to the terms of deputation. (6) When the office of the Registrar is vacant or when the Registrar is, by reason of illness, absence, or any other cause, unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (7) (a) The Registrar shall have the power to take disciplinary action against such of the employees excluding teachers, as may be specified in the order of the Board and to suspend them pending inquiry, to administer warnings to them or to impose on them the penalty of censure or the withholding of increment: Provided that no such penalty shall be imposed unless the person concerned has been given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. (b) An appeal shall lie to the Vice-Chancellor against any order of the Registrar imposing any of the penalties specified in sub-clause (a). (c) In a case where the inquiry discloses that a punishment beyond the power of the Registrar is called for, the Registrar shall, upon conclusion of the inquiry, make a report to the Vice-Chancellor along with his recommendations: Provided that an appeal shall lie to the Board against an order of the Vice-Chancellor imposing any penalty. (8) The Registrar shall be the Secretary ex officio of the Board and the Academic Council, but shall not be deemed to be a member of any of these authorities. (9) It shall be the duty of the Registrar— (a) to be the custodian of the records, the common seal and such other property of the University as the Board shall commit to his charge; (b) to issue all notice convening meeting of the Board, the Academic Council and of any Committee appointed by those authorities; (c) to keep the minutes of all the meetings of the Board, the Academic Council and of any committees appointed by those authorities; (d) to conduct the official correspondence of the Board and the Academic Council; (e) to arrange for the examinations of the University in accordance with the manner prescribed by the Ordinances or notifications; 15 ----- (f) to supply to the Visitor, copies of the agenda of the meetings of the authorities of the University as soon as they are issued and the minutes of such meetings; (g) to represent the University in suits or proceedings by or against the University, sign powers of-attorney and verify pleadings or depute his representatives for the purpose; and (h) to perform such other duties as may be specified in the Statutes, the Ordinances or the Regulations or as may be required, from time to time, by the Board or the Vice-Chancellor. _The Comptroller_ 9. (1) The Comptroller shall be appointed by the Board on the recommendations of a duly constituted Selection Committee under Statute 18 and he shall be a whole-time salaried officer of the University. (2) He shall be appointed for a term of five years and shall be eligible for reappointment. (3) The Comptroller may also be appointed on deputation for a specified period not exceeding five years. (4) The emoluments and other terms and conditions of service of the Comptroller shall be such as may be prescribed by the Ordinances. In case of a person being appointed on deputation, his tenure, emoluments and other terms of service shall be according to the standard of deputation: Provided that the Comptroller shall retire on attaining the age of sixty years. (5) When the office of the Comptroller is vacant or when the Comptroller is, by reason of illness, absence or any other cause, unable to perform the duties of his office, the duties of the office shall be performed by such person as the Vice-Chancellor may appoint for the purpose. (6) The Comptroller shall be the Secretary _ex officio of the Finance Committee, but shall not be_ deemed to be a member of such Committee. (7) The Comptroller shall— (a) exercise general supervision over the funds of the University and shall advise it as regards its financial policy; and (b) perform such other duties as may be specified in the Statutes, the Ordinances or as may be required, from time to time, by the Board or the Vice-Chancellor. (8) Subject to the control of the Board, the Comptroller shall— (a) hold and manage the property and investments of the University including trust and endowed property; (b) ensure that the limits fixed by the Board for recurring and non-recurring expenditure for a year are not exceeded and that all moneys are expended on the purpose for which they are granted or allotted; (c) be responsible for the preparation of annual accounts and the budget of the University and for their presentation to the Board; (d) keep a constant watch on the state of the cash and bank balances and on the state of investments; (e) watch the progress of the collection of revenue and advise on the methods of collection employed; (f) ensure that the registers of buildings, land, furniture and equipment are maintained up-to-date and that stock-checking is conducted, of equipment and other consumable materials in all offices, specialised laboratories, colleges and institutions maintained by the University; (g) bring to the notice of the Vice-Chancellor unauthorised expenditure and other financial irregularities and suggest disciplinary action against persons at fault; and (h) call for from any office, laboratory, college or institution maintained by the University and information or returns that he may consider necessary for performance of his duties. 16 ----- (9) Any receipt given by the Comptroller or the person or persons duly authorised in this behalf by the Board for any money payable to the University shall be sufficient discharge for payment of such money. _Heads of Departments_ 10. (1) Each Department shall have a Head appointed by the Vice-Chancellor who shall be not below the rank of an Associate Professor and whose duties and functions and terms and conditions of appointment shall be prescribed by the Ordinances. (2) He shall be responsible to the Dean for teaching, to Director of Research for research, to Director of Extension Education for extension education work. However, the Dean shall be the administrative controlling officer of the Heads of Departments in college concerned: Provided that if there is more than one Professor in any Department, the Head of the Department shall be appointed by the Vice-Chancellor from amongst the Professors: Provided further that in the case of Department where there is only one Professor, the Vice Chancellor shall have the option, to appoint either the Professor or an Associate Professor as the Head of the Department: Provided also that in a Department where there is no Professor or Associate Professor, the Dean of the college shall act as the Head of the Department or with the approval of the Vice-Chancellor assign the duty to any other Head of the Department of the college. (3) It shall be open to a Professor or an Associate Professor to decline the offer of appointment as the Head of the Department. (4) A Professor or an Associate Professor appointed as Head of the Department shall hold office as such for a period of three years and shall be eligible for reappointment. (5) A Head of the Department may resign his office at any time during his tenure of office. (6) A Head of the Department shall perform such functions as may be prescribed by the Ordinances. (7) The Head of the Department shall retire at the age of sixty-five years. _Librarians_ 11. (1) The University Librarian shall be appointed by the Board on the recommendations of the Selection Committee constituted for the purpose under Statute 18 and he shall be a whole-time salaried officer of the University. (2) The Librarian shall exercise such powers and perform such duties as may be assigned to him by the Vice-Chancellor. _Constitution, powers and functions of the Board of Management_ 12. (1) The Board shall consist of the following members, namely:— (i) the Vice-Chancellor, ex officio Chairman; (ii) Four Secretaries, from amongst the Secretaries in charge of the Departments of Agriculture and Animal Husbandry, Fishery and Horticulture of the States of Madhya Pradesh and Uttar Pradesh to be nominated by the Visitor by rotation: Provided that there shall not be more than two Secretaries from a State in the Board at a particular time; (iii) three eminent scientists to be nominated by the Visitor; (iv) one distinguished person representing Agro-based industries or a manufacturer having a special knowledge in agricultural development to be nominated by the Visitor; (v) the Deputy Director-General (Education) representing the Indian Council of Agricultural Research; (vi) one Dean of college and one Director to be nominated by the Vice-Chancellor on rotational basis; 17 ----- (vii) three persons including at least a woman representing farmers in Bundelkhand to be nominated by the Vice-Chancellor by rotation in the States of Madhya Pradesh and Uttar Pradesh: Provided that there shall not be more than two representatives from a State in the Board at a particular time; (viii) an Advisor (Agriculture), Planning Commission; (ix) a distinguished authority on natural resource or environment management to be nominated by the Visitor; (x) two persons not below the rank of Joint Secretary representing respectively the Departments of Government of India dealing with the Agriculture and Animal Husbandry to be nominated by the concerned Secretary to the Government of India; (xi) nominee of the Secretary representing the Department of Agricultural Research and Education, Government of India; (xii) the Registrar of the University–Secretary. (2) The term of office of the members of the Board, other than _ex officio members, shall be three_ years. (3) The Board shall have the power of management and administration of the revenue and property of the University and the conduct of all administrative affairs of the University not otherwise provided for. (4) Subject to the provisions of this Act, the Statutes and the Ordinances, the Board shall in addition to all other powers vested in it, have the following powers, namely:— (i) to create teaching and academic posts, to determine the number and emoluments of such posts and to define the duties and conditions of service of University staff, subject to the approval of the Indian Council of Agricultural Research; (ii) to appoint such teachers and other academic staff, as may be necessary, and Deans of colleges, Director and Heads of other institutions maintained by the University on the recommendations of the Selection Committee constituted for the purpose and to fill up temporary vacancies therein; (iii) to create administrative, ministerial and other necessary posts and to make appointments thereto in the manner prescribed by the Ordinances; (iv) to regulate and enforce discipline among employees in accordance with the Statutes and Ordinances; (v) to manage and regulate the finances, accounts, investments, property, business and all other administrative affairs of the University, and for that purpose to appoint such agents as it may think fit; (vi) to fix limits on the total recurring and the total non-recurring expenditure for one year on the recommendations of the Finance Committee; (vii) to invest any money belonging to the University, including any unapplied income, in such stocks, funds, shares or securities, from time to time, as it may think fit or in the purchase of immovable property in India, with the like powers of varying such investment from time to time; (viii) to transfer or accept transfers of any movable or immovable property on behalf of the University; (ix) to provide buildings, premises, furniture and apparatus and other means needed for carrying on the work of the University; (x) to enter into, vary, carry out and cancel contracts on behalf of the University; (xi) to entertain, adjudicate upon, and, if thought fit, to redress any grievances of the employees and students of the University; (xii) to fix fees, honorarium, emoluments and travelling allowances of examiners or experts or consultants, advisors and officers on special duty; 18 ----- (xiii) to select a common seal for the University and provide for the custody and use of such seal; (xiv) to make such special arrangements as may be necessary for the residence and discipline of women students; (xv) to delegate any of its powers to the Vice-Chancellor, Deans, Directors, Registrar or Comptroller or such other employee or authority of the University or to a Committee appointed by it as it may deem fit; (xvi) to institute fellowships, scholarships, studentships, medals and prizes; (xvii) to provide for appointment of Visiting Professor, Emeritus Professor, Consultant and Officers on Special Duty and Scholars and to determine the terms and conditions of such appointment; (xviii) to exercise such other power and perform such other duties as may be conferred on it by the Act, or the Statutes. _Quorum for meetings of the Board_ 13. Six members of the Board shall form the quorum for a meeting of the Board. _Constitution and powers of the Academic Council_ 14. (1) The Academic Council shall consist of the following members, namely:— (i) the Vice-Chancellor, ex officio Chairman; (ii) all the Deans of the colleges of the University; (iii) the Director of Research of the University; (iv) the Director of Extension Education of the University; (v) the Director of Education; (vi) a Librarian to be nominated by the Vice-Chancellor on rotational basis; (vii) two eminent scientists to be co-opted from outside the University to be nominated by the Vice-Chancellor; (viii) seven Heads of the Departments, at least one from each Faculty to be nominated by the Vice-Chancellor; (ix) the Registrar of the University, ex officio Secretary. (2) The term of office of the members of the Academic Council other than ex officio members shall be three years. (3) Subject to the Act, the Statutes and the Ordinances, the Academic Council shall, in addition to all other powers vested in it, have the following powers, namely:— (a) to exercise general supervision over the academic policies of the University and to give directions regarding methods of instruction, co-operative teaching among colleges and institutions, evaluation and improvements in academic standards; (b) to bring about inter-college co-ordination and establish or appoint Committee on academic matters; (c) to consider matters of general academic interest either on its own initiative or on a reference by a college or the Board and to take appropriate action thereon; and (d) to frame such regulations and rules consistent with the Statutes and the Ordinances regarding the academic functioning of the University, discipline, residences, admissions, award of fellowships and studentships, fees, concessions, corporate life and attendance. _Quorum for meetings of the Academic Council_ 15. One-third members of the Academic Council shall form the quorum for a meeting of the Academic Council. _Board of Studies_ 16. (1) Each Faculty shall have a Board of Studies. 19 ----- (2) The Board of Studies of each Faculty shall be constituted as under:— (i) Dean of Faculty — Chairperson; (ii) Director of Research — Member; (iii) Director of Extension Education—Member; (iv) all Heads of Departments of the Faculty not below the rank of Associate Professor— Member; (v) one representative of the Academic Council not belonging to the particular Faculty to be nominated by the Vice-Chancellor; (vi) two eminent scientists from agricultural education system not belonging to the University to be nominated by the Vice-Chancellor; (vii) one final year Post-Graduate student with Highest Overall Grade Point Average (OGPA) – Member; (viii) Assistant Registrar (Academic) of the Faculty – Member; (ix) Director of Education—Member. (3) The functions of the Board of Studies shall be to recommend to the Academic Council, the course curriculum to be prescribed for various degrees to be offered by the concerned Faculty and to make suitable recommendations for the teaching of the prescribed approved course, namely:— (a) courses of studies and appointment of examiners for courses, but excluding research degrees; (b) appointment of supervisors of research; and (c) measures for the improvement of the standard of teaching and research. _Finance Committee_ 17. (1) The Finance Committee shall consist of the following members, namely:— (i) the Vice-Chancellor — Chairman; (ii) Financial Advisor, Department of Agricultural Research and Education or his nominee not below the rank of Deputy Secretary; (iii) three persons to be nominated by the Board, out of whom at least one shall be a member of the Board; (iv) three persons to be nominated by the Visitor; and (v) the Comptroller of the University—Member-Secretary. (2) Three members of the Finance Committee shall form the quorum for meeting of the Finance Committee. (3) The members of the Finance Committee, other than ex officio members, shall hold office for a term of three years. (4) A member of the Finance Committee shall have the right to record a minute of dissent if he does not agree with any decision of the Finance Committee. (5) The Finance Committee shall meet at least twice a year to examine the accounts and to scrutinise proposals for expenditure. (6) Every proposal relating to creation of posts, and those items which have not been included in the Budget, shall be examined by the Finance Committee before they are considered by the Board. (7) The annual accounts and the financial estimates of the University prepared by the Comptroller, shall be laid before the Finance Committee for consideration and comments and thereafter submitted to the Board for approval. (8) The Finance Committee shall recommend limits for the total recurring expenditure and the total non-recurring expenditure for the year, based on the income and resources of the University (which, in the case of productive works, may include the proceeds of loans). 20 ----- _Selection Committee_ 18. (1) There shall be a Selection Committee for making recommendations to the Board for appointment to the posts of teachers, Comptroller, Registrar, Librarians, Deans of colleges, Directors and Heads of other institutions maintained by the University. (2) The Selection Committee for appointment to the posts specified in column 1 of the Table below shall consist of members as specified in the corresponding entries in column 2 of the said Table: TABLE 1 2 3 A. Directors/Deans (i) Vice-Chancellor or his nominee—Chairman. (ii) One nominee of the Visitor—Member. (iii) Three eminent scientists not below the rank of Vice-Chancellor or equivalent (serving or retired) to be nominated by the Vice-Chancellor from a panel of six names approved by the Board—Member. B. Professors/Equivalent (i) Vice-Chancellor or his nominee–Chairman. (ii) One nominee of the Visitor—Member. (iii) Dean of the concerned Faculty—Member. (iv) Director of Research or Director of Extension Education or Director of Education to be nominated by the Vice-Chancellor— Member. (v) Three eminent subject specialists not below the rank of Head of Department or equivalent (serving or retired) to be nominated by the Vice-Chancellor out of a panel of six names approved by the Board—Members. C. Associate Professor/Assistant Professor/Equivalent (i) Vice-Chancellor or his nominee—Chairman. (ii) One nominee of the Visitor—Member. (iii) Dean of the concerned faculty—Member. (iv) Director of Education or Director of Research or Director of Extension Education to be nominated by the Vice-Chancellor— Member. (v) Head of the concerned Department not below the rank of Professor—Member. (vi) Two eminent teachers or scientists not below the rank of Professor or equivalent (serving or retired) to be nominated by the ViceChancellor out of a panel of six names approved by the Board— Members. D. Registrar/Comptroller/Librarian (i) Vice-Chancellor or his nominee—Chairman. (ii) One nominee of the Visitor—Member. (iii) One Director/Dean to be nominated by the Vice-Chancellor— Member. (iv) Two experts in the concerned subject to be nominated by the Vice Chancellor, out of a panel of six names approved by the Board— Members. 21 ----- (3) The Vice-Chancellor, or in his absence, his nominee shall preside at the meetings of the election Committee: Provided that the meetings of the Selection Committee shall be fixed after prior consultation with the nominees of the Visitor: Provided further that the proceedings of the Selection Committee shall not be valid unless at least two members, not in the service of the University are present in the meeting. (4) The meeting of the Selection Committee shall be convened by the Vice-Chancellor or in his absence by his nominee. (5) The procedure to be followed by the Selection Committee in making recommendations shall be decided by the Committee prior to the interview. (6) If the Board is unable to accept the recommendations made by the Selection Committee, it shall record its reasons and submit the case to the Visitor for final orders. (7) Appointments to temporary posts shall be made in the manner indicated below:— (i) the Vice-Chancellor shall have the authority to appoint a person on ad hoc basis for a period not exceeding six months extendable by a further period of six months with the approval of the Board: Provided that if the Vice-Chancellor is satisfied that in the interest of work it is necessary to fill the vacancy, the appointment may be made on a purely temporary basis by the local Selection Committee referred to in sub-clause (ii) for the period not exceeding six months; (ii) if the temporary vacancy is for a period less than one year, an appointment to such vacancy shall be made on the recommendation of the local Selection Committee consisting of the Dean of the college concerned, the Head of the Department and a nominee of the Vice-Chancellor: Provided that if the same person holds the offices of the Dean and the Head of the Department, the Selection Committee may contain two nominees of the Vice-Chancellor: Provided further that in case of sudden casual vacancies of teaching posts caused by death or any other reason, the Dean may, in consultation with the Head of the Department concerned, make a temporary appointment for one month and report to the Vice-Chancellor and the Registrar about such appointment; (iii) no teacher appointed temporarily shall, if he is not recommended by the regular Selection Committee for appointment under the Statutes, be continued in service on such temporary employment, unless he is subsequently selected by the local Selection Committee or the regular Selection Committee, for a temporary or permanent appointment, as the case may be. (8) Mode of constitution of the Selection Committee for non-academic staff, not prescribed in the Statutes, shall be prescribed by the Ordinances. _Special mode of appointment_ 19. (1) Notwithstanding anything contained in Statute 18, the Board may invite a person of high academic distinction and professional attainments to accept a post of Professor or Associate Professor or any other academic post in the University, as the case may be, on such terms and conditions as it deems fit, and on the person agreeing to do so, appoint him to the post. (2) The Board may appoint a teacher or any other academic staff working in any other University or organisation for undertaking a joint project in accordance with the manner laid down in the Ordinances. _Appointment for a fixed tenure_ 20. The Board may appoint a person selected in accordance with the procedure laid down in Statute 18 for a fixed tenure on such terms and conditions as it deems fit. _Qualifications of Director, Dean, Professor, etc._ 21. (1) Qualifications of Director, Dean, Professor, Associate Professor and Assistant Professor of different Faculties and their equivalents in Research and Extension Education shall be as prescribed by the Ordinances. (2) Qualification of non-academic staff shall be prescribed by the Ordinances. 22 ----- _Committees_ 22. (1) The authorities of the University specified in section 16 may appoint as many standing or special Committees as it may deem fit, and may appoint to such committees persons who are not members of such authority. (2) Any such Committee appointed under clause (1) may deal with any subject delegated to it subject to confirmation by the authority appointing it. _Terms and conditions of service and code of conduct of the teachers, etc._ 23. (1) All the teachers and other academic staff of the University shall, in the absence of any agreement to the contrary, be governed by the terms and conditions of service and code of conduct as are specified in the Statutes, the Ordinances and the Regulations. (2) Every teacher and other staff of the University shall be appointed on a written contract, the term of which shall be prescribed by the Ordinances. (3) A copy of every contract referred to in clause (2) shall be deposited with the Registrar. _Terms and conditions of service and code of conduct of other employees_ 24. All the non-academic employees of the University, shall in the absence of any contract to the contrary, be governed by the terms and conditions of service and code of conduct as are specified in the Statutes, the Ordinances and the Regulations as made from time to time. _Seniority list_ 25. (1) Whenever, in accordance with the Statutes, any person is to hold an office or be a member of an authority of the University by rotation according to seniority, such seniority shall be determined according to the length of continuous service of such person in his grade and, in accordance with such other principles as the Board may, from time to time, prescribe. (2) It shall be the duty of the Registrar to prepare and maintain, in respect of each class of persons to whom the provisions of these Statutes apply, a complete and up-to-date seniority list in accordance with the provisions of clause (1). (3) If two or more persons have equal length of continuous service in a particular grade or the relative seniority of any persons is otherwise in doubt, the Registrar may, on his own motion and shall, at the request of any person, submit the matter to the Board whose decision thereon shall be final. _Removal of employees of the University_ 26. (1) Where there is an allegation of misconduct against a teacher, a member of the academic staff or other employee of the University, the Vice-Chancellor, in the case of the teacher or member of the academic staff and the authority competent to appoint (hereinafter referred to as the appointing authority) in the case of other employee, may, by order in writing, place such teacher, member of the academic staff or other employee, as the case may be, under suspension and shall forthwith report to the Board, the circumstances in which the order was made: Provided that the Board may, if it is of the opinion, that the circumstances of the case do not warrant the suspension of the teacher or a member of the academic staff, revoke such order. (2) Notwithstanding anything contained in the terms of the contract of appointment or of any other terms and conditions of service of the employees, the Board in respect of teacher and other academic staff and the appointing authority, in respect of other employees, shall have the power to remove a teacher or a member of the academic staff, or other employees, as the case may be, on grounds of misconduct. (3) Save as aforesaid, the Board or the appointing authority, as the case may be, shall not be entitled to remove any teacher, member of the academic staff or other employee except for a good cause and after giving three months, notice or on payment of three months salary in lieu thereof. 23 ----- (4) No teacher, member of the academic staff or other employee shall be removed under clause (2) or clause (3) unless he has been given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. (5) The removal of a teacher, member of the academic staff or other employee shall take effect from the date on which the order of removal is made: Provided that where the teacher, member of the academic staff or other employee is under suspension at the time of his removal, such removal shall take effect from the date on which he was placed under suspension. (6) Notwithstanding anything contained in the foregoing provisions of this Statute, a teacher, member of the academic staff or other employee may resign,— (a) if he is a permanent employee, only after giving three months’ notice in writing to the Board or the appointing authority, as the case may be, or by paying three months’ salary in lieu thereof; (b) if he is not a permanent employee, only after giving one month’s notice in writing to the Board or, the appointing authority, as the case may be, or by paying one months’ salary in lieu thereof: Provided that such resignation shall take effect only on the date from which the resignation is accepted by the Board or the appointing authority, as the case may be. _Honorary degrees_ 27. (1) The Board may, on the recommendation of the Academic Council and by a resolution passed by a majority of not less than two-thirds of the members present and voting, make proposals to the Visitor for the conferment of honorary degrees: Provided that in case of emergency, the Board may, on its own motion, make such proposals. (2) The Board may, by a resolution passed by a majority of not less than two-thirds of the members present and voting, withdraw, with the previous sanction of the Visitor, any honorary degree conferred by the University. _Withdrawal of degrees, etc._ 28. The Board may, by a special resolution passed by a majority of not less than two-thirds of the members present and voting, withdraw any degree or academic distinction conferred on, or any certificate or diploma granted to, any person by the University for good and sufficient cause: Provided that no such resolution shall be passed until a notice in writing has been given to that person calling upon him to show cause within such time as may be specified in the notice why such a resolution should not be passed and until his objections, if any, and any evidence he may produce in support of them, have been considered by the Board. _Maintenance of discipline among students of the University_ 29. (1) All powers relating to discipline and disciplinary action in relation to students of the University shall vest in the Vice-Chancellor. (2) The Vice-Chancellor may delegate all or any of his powers as he deems proper to such officers as he may specify in this behalf. (3) Without prejudice to the generality of his powers relating to the maintenance of discipline and taking such action, as may seem to him appropriate for the maintenance of discipline, the ViceChancellor may, in exercise of his powers, by order, direct that any student or students be expelled, or rusticated, for a specified period, or be not admitted to a course or courses of study in a college, institution or Department of the University for a stated period, or be punished with fine for an amount to be specified in the order, or be debarred from taking an examination or examinations conducted by the University, college, institution or Department for one or more years, or that the results of the student or students concerned in the examination or examinations in which he or they have appeared be cancelled. 24 ----- (4) The Dean of colleges, institutions and Heads of the teaching Departments in the University shall have the authority to exercise all such disciplinary powers over the students in their respective colleges, institutions and teaching Departments in the University as may be necessary for the proper conduct of such colleges, institutions and teaching in the Departments. (5) Without prejudice to the powers of the Vice-Chancellor, the Deans and other persons specified in clause (4), detailed rules of discipline and proper conduct shall be made by the University. The Deans of the colleges, institutions and Heads of the teaching Departments in the University may also make the supplementary rules as they deem necessary for the aforesaid purposes. (6) At the time of admission, every student shall be required to sign a declaration to the effect that he submits himself to the disciplinary jurisdiction of the Vice-Chancellor and other authorities of the University. _Maintenance of discipline among students of colleges, etc._ 30. All powers relating to discipline and disciplinary action in relation to the students of the college or an institution maintained by the University, shall vest in the Dean of the College or institution, as the case may be, in accordance with the procedure prescribed by the Ordinances. _Convocations_ 31. Convocations of the University for the conferring of the degrees or for other purposes shall be held in such manner as may be prescribed by the Ordinances. _Acting Chairman_ 32. When no provision is made for a Chairman to preside over a meeting of any Committee or when the Chairman so provided for is absent, or the Vice-Chancellor has not in writing made any arrangement, the members shall elect one from among themselves to preside over meeting. _Resignation_ 33. Any member, other than an _ex officio member of the Board, Academic Council or any other_ authority of the University or any committee of such authority may resign by letter addressed to the Registrar and the resignation shall take effect as soon as such letter is received by the Registrar. _Disqualifications_ 34. (1) A person shall be disqualified for being chosen as, and for being, a member of any of the authorities of the University,— (i) if he is of unsound mind; (ii) if he is an undischarged insolvent; (iii) if he has been convicted by a court of law of an offence involving moral turpitude and sentenced in respect thereof to imprisonment for a period of not less than six months. (2) If any question arises as to whether a person is or has been subjected to any of the disqualifications mentioned in clause (1), the question shall be referred to the Visitor and his decision thereon shall be final and no suit or other proceedings shall lie in any civil court against such decision. _Residence condition for membership and office_ 35. Notwithstanding anything contained in the Statutes, a person who is not ordinarily resident in India shall not be eligible to be an officer of the University or a member of any authority of the University. _Membership of authorities by virtue of membership of other bodies_ 36. Notwithstanding anything contained in the Statutes, a person who holds any post in the University or is a member of any authority of the University in his capacity as a member of a particular authority or as the holder of a particular appointment shall hold such office or membership only for so 25 ----- long as he continues to be a member of that particular authority or the holder of that particular appointment, as the case may be. _Alumni Association_ 37. (1) There shall be an Alumni Association for the University. (2) The subscription for membership of the _Alumni Association shall be prescribed by the_ Ordinances. (3) No member of the Alumni Association shall be entitled to vote or stand for election unless he has been a member of the said Association for at least one year prior to the date of the election and is a degree holder of the University of at least five years standing: Provided that the condition relating to the completion of one year’s membership shall not apply in the case of the first election. _Students’ Council_ 38. (1) There shall be, in each College of the University, a Students’ Council for each academic session for the purpose of making recommendations to the authorities of the University with regard to various activities relating to students welfare, including games, sports, dramatics, debates, cultural activities, etc., and such Council shall consist of:— (i) the Dean of the College-Chairperson; (ii) all Hostel Wardens; (iii) Campus Estate Officer; (iv) five Heads of the Departments to be nominated by the Dean; (v) Hostel Prefects; (vi) one student from each class or year who has secured the Highest Overall Grade Point Average (OGPA) in the previous academic session; (vii) Students Welfare Officer—Member-Secretary. (2) The Students Council shall meet at least once in each semester. _Ordinances how made_ 39. (1) The first Ordinances made under sub-section (2) of section 27 may be amended or repealed at any time by the Board in the manner specified below. (2) No Ordinances in respect of the matters enumerated in section 27, other than those enumerated in clause (n) of sub-section (1) thereof shall be made by the Board unless a draft of such Ordinance has been proposed by the Academic Council. (3) The Board shall not have power to amend any draft of any Ordinance proposed by the Academic Council under clause (2), but may reject the proposal or return the draft to the Academic Council for reconsideration either in whole or in part, together with any amendment which the Board may suggest. (4) Where the Board has rejected or returned the draft of an Ordinance proposed by the Academic Council, the Academic Council may consider the question afresh and in case the original draft is reaffirmed by a majority of not less than two-thirds of the members present and voting and more than half the total number of members of the Academic Council, the draft may be sent back to the Board which shall either adopt it or refer it to the Visitor whose decision shall be final. (5) Every Ordinance made by the Board shall come into effect immediately. (6) Every Ordinance made by the Board shall be submitted to the Visitor within two weeks from the date of its adoption. The Visitor shall have the power to direct the University within four weeks of the receipt of the Ordinance to suspend the operation of any such Ordinance and he shall, as soon as possible, inform the Board about his objection to the proposed Ordinance. The Visitor may, after 26 ----- receiving the comments of the University, either withdraw the order suspending the Ordinance, or disallow the Ordinance and his decision shall be final. _Regulations_ 40. (1) The authorities of the University may make Regulations consistent with the Act, the Statutes and the Ordinances for the following matters, namely:— (i) laying down the procedure to be observed at their meeting and the number of members required to form a quorum; (ii) providing for all matters which are required by the Act, the Statutes or the Ordinances to be specified by the Regulations; (iii) providing for all other matters concerning such authority or committees appointed by them and not provided for by the Act, the Statutes or the Ordinances. (2) Every authority of the University shall make Regulations providing for the giving of notice to the members of such authorities of the dates of meetings and of the business to be considered at meetings and for the keeping of a record of the proceedings of meetings. (3) The Board may direct the amendment in such manner as it may specify of any Regulation made under the Statutes or the annulment of any such Regulation. _Delegation of Powers_ 41. Subject to the provisions of the Act and the Statutes, any officer or authority of the University may delegate his or its power to any other officer or authority or person under his or its respective control and subject to the condition that overall responsibility for the exercise of the powers so delegated shall continue to vest in the officer or authority delegating such powers. _Collaboration with other Institution and Organisations_ 42. The University shall have the authority to enter into an agreement through a Memorandum of Understanding with any research and/or academic institution of higher learning to conduct collaborative Post Graduate Research Programme to fulfil the partial requirement for the award of Master’s and Ph.D. degrees of the University. _Constitution and Function of Research Council_ 43. (1) There shall be a Research Council of the University to exercise general supervision over the research policies and programmes of the University in the area of Agriculture and allied disciplines. The Research Council shall consist of the following members, namely:— (i) the Vice-Chancellor—Chairman; (ii) Director of Extension Education—Member; (iii) Director of Education—Member; (iv) all Deans of the colleges of the University—Members; (v) nominees of the State Governments not below the rank of Director—Members; (vi) all co-ordinators of the Research teams of the University—Members; (vii) two eminent agricultural scientists to be nominated by the Vice-Chancellor for three years—Members; (viii) Director of Research—Member-Secretary. (2) The Research Council shall meet at least once in a year. (3) One-third members of the Research Council shall form a quorum for the meeting of the Research Council. 27 ----- (4) If a vacancy occurs due to resignation or otherwise the same shall be filled up for the remaining period. _Constitution and function of the Extension Education Council_ 44. (1) There shall be an Extension Education Council of the University to exercise general supervision over the extension education policies and programmes of the University in the area of Agriculture and allied disciplines. The Extension Education Council shall consist of the following members, namely:— (i) the Vice-Chancellor—Chairman; (ii) Director of Research—Member; (iii) Director of Education—Member; (iv) all Deans of the colleges of the University—Members; (v) nominees of the State Governments not below the rank of Director—Members; (vi) farmers representatives from Bundelkhand and one woman social worker to be nominated by the Vice-Chancellor for a term of three years—Members; (vii) two eminent scientists from outside the University to be nominated by the Vice-Chancellor for two years—Members; (viii) Director of Extension Education—Member-Secretary. (2) The Extension Education Council shall meet at least once in a year. (3) One-third members of the Extension Education Council shall form a quorum for the meeting of the Extension Education Council. _Application of the Central Civil Services (Pension) Rules, 1972, etc._ 45. (1) All regular employees of the University shall be governed by the provisions of the Central Civil Services (Pension) Rules, 1972, and General Provident Fund (Central Services) Rules, 1960, in respect of grant of pension and gratuity and general provident fund. (2) Any amendment made by the Government of India in the Central Civil Services (Pension) Rules, 1972, and the General Provident Fund (Central Services) Rules, 1960, shall also be applicable to employees of the University. (3) In respect of commutation of pension, the provisions of the Central Civil Services (Commutation of Pension) Rules, 1981, shall apply. (4) The Vice-Chancellor shall be the pension sanctioning authority and the pension authorisation authority. (5) Pension payment shall be centralised and controlled by Comptroller’s office. –––––––– 28 -----

4-Mar-2014

07

The Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014

https://www.indiacode.nic.in/bitstream/123456789/2124/1/a2014-07.pdf

central

# THE STREET VENDORS (PROTECTION OF LIVELIHOOD AND REGULATION OF STREET VENDING) ACT, 2014 _______________ # ARRANGEMENT OF SECTIONS _______________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent, commencement and provisions. 2. Definitions. CHAPTER II REGULATION OF STREET VENDING 3. Survey of street vendors and protection from eviction or relocation. 4. Issue of certificate of vending. 5. Conditions for issue of certificate of vending. 6. Categories of certificate of vending and issue of identity cards. 7. Criteria for issuing certificate of vending. 8. Vending fees. 9. Validity and renewal of certificate of vending. 10. Cancellation or suspension of certificate of vending. 11. Appeal from decision of Town Vending Committee. CHAPTER III RIGHTS AND OBLIGATIONS OF STREET VENDORS 12. Rights of street vendor. 13. Right of street vendor for a new site or area on relocation. 14. Duty of street vendors. 15. Maintenance of cleanliness and public hygiene. 16. Maintenance of civic amenities in vending zone in good condition. 17. Payment of maintenance charges. CHAPTER IV RELOCATION AND EVICTION OF STREET VENDORS 18. Relocation or eviction of street vendors. 19. Seizure and reclaiming of goods. CHAPTER V DISPUTE REDRESSAL MECHANISM 20. Redressal of grievances or resolution of disputes of street vendors. 1 ----- SECTIONS 21. Plan for street vending. CHAPTER VI PLAN FOR STREET VENDING CHAPTER VII TOWN VENDING COMMITTEE 22. Town Vending Committee. 23. Meetings of Town Vending Committee. 24. Temporary association of persons with Town Vending Committee for particular purposes. 25. Office space and other employees for Town Vending Committee. 26. Publication of street vendor’s charter and data-base and carrying out of social audit. CHAPTER VIII PREVENTION OF HARASSMENT OF STREET VENDORS 27. Prevention of harassment by police and other authorities. CHAPTER IX PENAL PROVISIONS 28. Penalty for contraventions. CHAPTER X MISCELLANEOUS 29. Provisions of this Act, not to be construed as conferring ownership rights, etc. 30. Returns. 31. Promotional measures. 32. Research, training and awareness. 33. Act to have overriding effect. 34. Powers to delegate. 35. Power to amend Schedules. 36. Power to make rules. 37. Power to make bye-laws. 38. Scheme for street vendors. 39. Power to remove difficulties. THE FIRST SCHEDULE. THE SECOND SCHEDULE. 2 ----- # THE STREET VENDORS (PROTECTION OF LIVELIHOOD AND REGULATION OF STREET VENDING) ACT, 2014 ACT NO. 7 OF 2014 [4th March, 2014.] # An Act to protect the rights of urban street vendors and to regulate street vending activities and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Sixty-fifth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent, commencement and provisions.—(1) This Act may be called the Street** Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014. (2) It extends to the whole of India except the State of Jammu and Kashmir*. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint; and different dates may be appointed for different States and any reference in any provision to the commencement of this Act shall be construed in relation to any State as a reference to the coming into force of that provision in that State. (4) The provisions of this Act shall not apply to any land, premises and trains owned and controlled by the Railways under the Railway Act, 1989 (24 of 1989). **STATE AMENDMENT** **Union Territory of Jammu and Kashmir and Ladakh** **Section 1.--In sub-section (2), omit 'except the State of Jammu and Kashmir’.** [Vide Union Territory of Jammu and Kashmir Reorganisation (Adaptation of Central Laws) Second Order, 2020, Notification No. S.O. 3465(E), dated (5-10-2020) and _vide Union Territory of Ladakh_ Reorganisation (Adaptation of Central Laws) Order, 2020, notification No. S.O. 3774(E), dated (23-10-2020).] **2. Definitions.—(1) In this Act, unless the context otherwise requires,—** (a) “appropriate Government” means in respect of matters relating to,— (i) a Union territory without Legislature, the Central Government; (ii) the Union territories with Legislature, the Government of the National Capital Territory of Delhi or, as the case may be, the Government of Union territory of Puducherry; (iii) a State, the State Government; (b) “holding capacity” means the maximum number of street vendors who can in any vending zone and has been determined as such by the local authority on the commendations of the Town Vending Committee; (c) “local authority” means a Municipal Corporation or a Municipal Council or a Nagar Panchayat, by whatever name called, or the Cantonment Board, or as the case may be, a civil area committee appointed under section 47 of the Cantonment Act, 2006 (41 of 2006) or such other body 1. 1[st] May, 2014, vide notification No. S.O. 1185 (E), dated 1[st] May, 2014, see Gazette of India, Extraordinary, Part II, Sec. 3(ii). *. Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and Kashmir and the Union territory of Ladakh. 3 ----- entitled to function as a local authority in any city or town to provide civic services and regulate street vending and includes the “planning authority” which regulates the land use in that city or town; (d) “mobile vendors” means street vendors who carry out vending activities in designated area by moving from one place to another place vending their goods and services; (e) “natural market” means a market where sellers and buyers have traditionally congregated for the sale and purchase of products or services and has been determine das such by the local authority on the recommendations of the Town Vending Committee; (f) “notification” means a notification published in the Official Gazette and the term “notify” shall be construed accordingly; (g) “planning authority” means an Urban Development Authority or any other authority in any city or town designated by the appropriate Government as responsible for regulating the land use by defining the precise extent of areas for any particular activity in the master plan or development plan or zonal plan or layout plan or any other spatial plan which is legally enforceable under the applicable Town and Country Planning Act or the Urban Development Act or the Municipal Act, as the case may be; (h) “prescribed” means prescribed by rules made under this Act by the appropriate Government; (i) “Schedule” means the Schedule annexed to this Act; (j) “scheme” means a scheme framed by the appropriate Government under section 38; _(k) “stationary vendors” means street vendors who carry out vending activities on regular basis at_ a specific location; (l) “street vendor” means a person engaged in vending of articles, goods, wares, food items or merchandise of everyday use or offering services to the general public, in a street, lane, sidewalk, footpath, pavement, public park or any other public place or private area, from a temporary built up structure or by moving from place to place and includes hawker, peddler, squatter and all other synonymous terms which may be local or region specific; and the words “street vending” with their grammatical variations and cognate expressions, shall be construed accordingly; (m) “Town Vending Committee” means the body constituted by the appropriate Government under section 22; (n) “vending zone” means an area or a place or a location designated as such by the local authority, on the recommendations of the Town Vending Committee, for the specific use by street vendors for street vending and includes footpath, side walk, pavement, embankment, portions of a street, waiting area for public or any such place considered suitable for vending activities and providing services to the general public. (2) Any reference in this Act to any enactment or any provision thereof, shall, in relation to an area in which such enactment or such provision is not in force be construed as a reference to the corresponding law, if any, in force in that area. **STATE AMENDMENT** **Union Territory of Jammu and Kashmir** **Section 2.-In sub-section (1), in clause (a), in sub-clause (ii), after “the Government of the National** Capital Territory of Delhi”, insert “the Government of the Union territory of Jammu and Kashmir” [Vide Union Territory of Jammu and Kashmir Reorganisation (Adaptation of Central Laws) Second Order, 2020, Notification No. S.O. 3465(E), dated (5-10-2020).] 4 ----- CHAPTER II REGULATION OF STREET VENDING **3. Survey of street vendor sand protection from eviction or relocation.—(1) The Town Vending** Committee shall, within such period and in such manner as may be specified in the scheme, conduct a survey of all existing street vendors, within the area under its jurisdiction, and subsequent survey shall be carried out at least once in every five years. (2) The Town Vending Committee shall ensure that all existing street vendors, identified in the survey, are accommodated in the vending zones subject to a norm conforming to two and half per cent. of the population of the ward or zone or town or city, as the case may be, in accordance with the plan for street vending and the holding capacity of the vending zones. (3) No street vendor shall be evicted or, as the case may be, relocated till the survey specified under sub-section (1) has been completed and the certificate of vending is issued to all street vendors. **4. Issue of certificate of vending.—(1) Every street vendor, identified under the survey carried out** under sub-section (1) of section 3, who has completed the age of fourteen years or such age as may be prescribed by the appropriate Government, shall be issued a certificate of vending by the Town Vending Committee, subject to such terms and conditions and within the period specified in the scheme including the restrictions specified in the plan for street vending: Provided that a person, whether or not included under the survey under sub-section (1) of section 3, who has been issued a certificate of vending before the commencement of this Act, whether known as licence or any other form of permission (whether as a stationary vendor or a mobile vendor or under any other category) shall be deemed to be a street vendor for that category for the period for which he has been issued such certificate of vending. (2) Where, in the intervening period between two surveys, any person seeks to vend, the Town Vending Committee may grant a certificate of vending to such person, subject to the scheme, the plan for street vending and the holding capacity of the vending zones. (3) Where the number of street vendors identified under sub-section (1) or the number of persons seeking to vend under sub-section (2) are more than the holding capacity of the vending zone and exceeds the number of persons to be accommodated in that vending zone, the Town Vending Committee shall carry out a draw of lots for issuing the certificate of vending for that vending zone and the remaining persons shall be accommodated in any adjoining vending zone to avoid relocation. **5. Conditions for issue of certificate of vending.—(1) Every street vendor shall give an undertaking** to the Town Vending Committee prior to the issue of a certificate of vending under section 4, that— _(a) he shall carry on the business of street vending himself or through any of his family member;_ (b) he has no other means of livelihood: (c) he shall not transfer in any manner whatsoever, including rent, the certificate of vending or the place specified therein to any other person. (2) Where a street vendor to whom a certificate of vending is issued dies or suffers from any permanent disability or is ill, one of his family member in following order of priority, may vend in his place, till the validity of the certificate of vending— (a) spouse of the street vendor; (b) dependent child of the street vendor: Provided that where a dispute arises as to who is entitled to vend in the place of the vendor, the matter shall be decided by the committee under section 20. **6. Categories of certificate of vending and issue of identity cards.—(1) The certificate of vending** shall be issued under any of the following categories, namely:— 5 ----- (a) a stationary vendor; (b) a mobile vendor; or (c) any other category as may be specified in the scheme. (2) The certificate of vending issued for the categories specified in sub-section (1) shall be in such form, and issued in such manner, as may be specified in the scheme and specify the vending zone where the street vendor shall carry on his vending activities, the days and timings for carrying on such vending activities and the conditions and restriction subject to which he shall carry on such vending activities. (3) Every street vendor who has been issued certificate of vending under sub-section (1) shall be issued identity cards in such form and manner as may be specified in the scheme. **7. Criteria for issuing certificate of vending.—The criteria to be followed by the Town Vending** Committee for issuing certificate of vending to a street vendor shall be as specified in the scheme, which may, apart from other things, provide for preference to the Scheduled Castes, the Scheduled Tribes, Other Backward Classes, women, persons with disabilities, minorities or such other categories as may be specified in the scheme. **8. Vending fees.—Every street vendor who has been issued certificate of vending shall pay such** vending fees as may be specified in the scheme. **9. Validity and renewal of certificate of vending.—(1) Every certificate of vending shall be valid** for such period as may be specified in the scheme. (2) Every certificate of vending shall be renewable for such period, in such manner, and on payment of such fees, as may be specified in the scheme. **10. Cancellation or suspension of certificate of vending.—Where a street vendor who has been** issued a certificate of vending under this Act commits breach of any of the conditions thereof or any other terms and conditions specified or the purpose of regulating street vending under this Act or any rules or schemes made thereunder, or where the Town Vending Committee is satisfied that such certificate of vending has been secured by the street vendor through misrepresentation or fraud, the Town Vending Committee may, without prejudice to any other fine which may have been incurred by the street vendor under this Act, cancel the certificate of vending or suspend the same in such as may be specified in the scheme and for such period as it deems fit: Provided that no such cancellation or suspension shall be made by the Town Vending Committee unless an opportunity of hearing has been given to the street vendor. **11. Appeal from decision of Town Vending Committee.—(1) Any person who is aggrieved by any** decision of the Town Vending Committee with respect to issue of certificate of vending under section 6 or cancellation or suspension of certificate of vending under section 10 may prefer an appeal to the local authority in such form, within such period, and in such manner, as may be prescribed. (2) No appeal shall be disposed of by the local authority unless the appellant has been given an opportunity of hearing. CHAPTER III RIGHTS AND OBLIGATIONS OF STREET VENDORS **12. Rights of street vendors.—(1) Every street vendor shall have the right to carry on the business of** street vending activities in accordance with the terms and conditions mentioned in the certificate of vending. (2) Notwithstanding anything contained in sub-section (1), where any area or space, as the case may be, has been earmarked as no-vending zone, no street vendor shall carry out any vending activities in that zone. **13. Right of street vendor for a new site or area on relocation.—Every street vendor, who** possesses a certificate of vending, shall, in case of his relocation under section 18, be entitled for new site 6 ----- or area, as the case may be, for carrying out his vending activities as may be determined by the local authority, in consultation with the Town Vending Committee. **14. Duty of street vendors.—Where a street vendor occupies space on a time sharing basis, he shall** remove his goods and wares every day at the end of the time-sharing period allowed to him. **15. Maintenance of cleanliness and public hygiene.—Every street vendor shall maintain cleanliness** and public hygiene in the vending zones and the adjoining areas. **16. Maintenance of civic amenities in vending zone in good condition.—Every street vendor shall** maintain civic amenities and public property in the vending zone in good condition and not damage or destroy or cause any damage or destruction to the same. **17. Payment of maintenance charges.—Every street vendor shall pay such periodic maintenance** charges for the civic amenities and facilities provided in the vending zones as may be determined by the local authority. CHAPTER IV RELOCATION AND EVICTION OF STREET VENDORS **18. Relocation or eviction of street vendors.—(1) The local authority may, on the recommendations** of the Town Vending Committee, declare a zone or part of it to be a no-vending zone for any public purpose and relocate the street vendors vending in that area, in such manner as may be specified in the scheme. (2) The local authority shall evict such street vendor whose certificate of vending has been cancelled under section 10 or who does not have a certificate of vending and vends without such certificate, in such manner as may be specified in the scheme. (3) No street vendor shall be relocated or evicted by the local authority from the place specified in the certificate of vending unless he has been given thirty days’ notice for the same in such manner as may be specified in the scheme. (4) A street vendor shall be relocated or evicted by the local authority physically in such manner as may be specified in the scheme only after he had failed to vacate the place specified in the certificate of vending, after the expiry of the period specified in the notice. (5) Every street vendor who fails to relocate or vacate the place specified in the certificate of vending, after the expiry of the period specified in the notice, shall be liable to pay for every day of such default, a penalty which may extend up to two hundred and fifty rupees, as may be determined by the local authority, but shall not be more than the value of goods seized. **19. Seizure and reclaiming of goods.—(1) If the street vendor fails to vacate the place specified in** the certificate of vending, after the lapse of the period specified in the notice given under sub-section (3) of section 18, the local authority, in addition to evicting the street vendor under section 18, may, if it deems necessary, seize the goods of such street vendor in such manner as may be specified in the scheme: Provided that where any such seizure is carried out, a list of goods seized shall be prepared, as specified in the scheme, and a copy thereof, duly signed by the person authorised to seize the goods, shall be issued to the street vendor. (2) The street vendor whose goods have been seized under sub-section (1) may, reclaim his goods in such manner, and after paying such fees, as may be specified in the scheme: Provided that in case of non-perishable goods, the local authority shall release the goods within two working days of the claim being made by the street vendor and in case of perishable goods the local authority shall release the goods on the same day of the claim being made by the street vendor. 7 ----- CHAPTER V DISPUTE REDRESSAL MECHANISM **20. Redressal of grievances or resolution of disputes of street vendors.—(1) The appropriate** Government may constitute one or more committees consisting of a Chairperson who has been a civil judge or a judicial magistrate and two other professional shaving such experience as may be prescribed for the purpose of deciding the applications received under sub-section (2): Provided that no employee of the appropriate Government or the local authority shall be appointed as members of the committee. (2) Every street vendor who has a grievance or dispute may make an application in writing to the committee constituted under sub-section (1) in such form and manner as maybe prescribed. (3) On receipt of grievance or dispute under sub-section (2), the committee referred to in sub-section (1) shall, after verification and enquiry in such manner, as may be prescribed, take steps for redressal of such grievance or resolution of such dispute, within such time and in such manner as may be prescribed. (4) Any person who is aggrieved by the decision of the committee may prefer an appeal to the local authority in such form, within such time and in such manner as may be prescribed. (5) The local authority shall dispose of the appeal received under sub-section (4) within such time and in such manner as may be prescribed: Provided that the local authority shall, before disposing of the appeal, give an opportunity of being heard to the aggrieved person. CHAPTER VI PLAN FOR STREET VENDING **21.** **Plan for street vending.—(1) Every local authority shall, in consultation with the planning** authority and on the recommendations of the Town Vending Committee, once in every five years, prepare a plan to promote the vocation of street vendors covering the matters contained in the First Schedule. (2) The plan for street vending prepared by the local authority shall be submitted to the appropriate Government for approval and that Government shall, before notifying the plan, determine the norms applicable to the street vendors. CHAPTER VII TOWN VENDING COMMITTEE **22. Town Vending Committee.—(1) The appropriate Government may, by rules made in this behalf,** provide for the term and the manner of constituting a Town Vending Committee in each local authority: Provided that the appropriate Government may, if considers necessary, provide for constitution of more than one Town Vending Committee, or a Town Vending Committee for each zone or ward, in each local authority. (2) Each Town Vending Committee shall consist of:— (a) Municipal Commissioner or Chief Executive Officer, as the case may be, who shall be the Chairperson; and (b) such number of other members as may be prescribed, to be nominated by the appropriate Government, representing the local authority, medical officer of the local authority, the planning authority, traffic police, police, association of street vendors, market associations, traders associations, non-governmental organisations, community based organisations, resident welfare associations, banks and such other interests as it deems proper; (c) the number of members nominated to represent the non-governmental organisations and the community based organisations shall not be less than ten per cent.; 8 ----- (d) the number of members representing the street vendors shall not be less than forty per cent. who shall be elected by the street vendors themselves in such manner as may be prescribed: Provided that one-third of members representing the street vendors shall be from amongst women vendors: Provided further that due representation shall be given to the Scheduled Castes, the Scheduled Tribes, Other Backward Classes, minorities and persons with disabilities from amongst the members representing street vendors. _(3) The Chairperson and the members nominated under sub-section (2) shall receive such allowances_ as may be prescribed by the appropriate Government. **23. Meetings of Town Vending Committee.—(1) The Town Vending Committee shall meet at such** times and places within the jurisdiction of the local authority and shall observe such rules of procedure in regard to the transaction of business at its meetings, and discharge such functions, as may be prescribed. (2) Every decision of the Town Vending Committee shall be notified along with the reasons for taking such decision. **24. Temporary association of persons with Town Vending Committee for particular** **purposes.—(1) The Town Vending Committee may associate with itself in such manner and for such** purposes, as may be prescribed, any person whose assistance or advice it may desire, in carrying out any of the provisions of this Act. (2) A person associated under sub-section (1) shall be paid such allowances as maybe prescribed. **25. Office space and other employees for Town Vending Committee.—The local authority shall** provide the Town Vending Committee with appropriate office space and such employees as may be prescribed. **26. Publication of street vendor’s charter and data-base and carrying out of social audit.—(1)** Every Town Vending Committee shall publish the street vendor's charter specifying therein the time within which the certificate of vending shall be issued to a street vendor and the time within which such certificate of vending shall be renewed and other activities to be performed within the time limit specified therein. (2) Every Town Vending Committee shall maintain up to date records of registered street vendors and street vendors to whom certificate of vending has been issued containing name of such street vendor, stall allotted to him, nature of business carried out by him, category of street vending and such other particulars which may be relevant to the street vendors, in such manner as may be prescribed. (3) Every Town Vending Committee shall carry out social audit of its activities under the Act or the rules or the schemes made there under in such form and manner as may be specified in the scheme. CHAPTER VIII PREVENTION OF HARASSMENT OF STREET VENDORS **27. Prevention of harassment by police and other authorities.—Notwithstanding anything** contained in any other law for the time being in force, no street vendor who carries on the street vending activities in accordance with the terms and conditions of his certificate of vending shall be prevented from exercising such rights by any person or police or any other authority exercising powers under any other law for the time being in force. CHAPTER IX PENAL PROVISIONS **28. Penalty for contraventions.—If any street vendor—** (a) indulges in vending activities without a certificate of vending; (b) contravenes the terms of certificate of vending; or 9 ----- (c) contravenes any other terms and conditions specified for the purpose of regulating street vending under this Act or any rules or schemes made thereunder, he shall be liable to a penalty for each such offence which may extend up to rupees two thousand as may be determined by the local authority. CHAPTER X MISCELLANEOUS **29. Provisions of this Act, not to be construed as conferring ownership rights, etc.—(1) Nothing** contained in this Act shall be construed as conferring upon a street vendor any temporary, permanent or perpetual right of carrying out vending activities in the vending zones allotted to him or in respect of any place on which he carries on such vending activity. (2) Nothing contained in sub-section (1) shall apply to any stationery vendor, if a temporary leasehold or ownership right has been conferred on him by a lease deed or otherwise, in respect of a place at specific location where he carries on such vending activity in accordance with the provisions of any law for the time being in force for carrying out such vending activity. **30. Returns.—Every Town Vending Committee shall furnish, from time to time, to the appropriate** Government and the local authority such returns as may be prescribed. **31. Promotional measures.—The appropriate Government may, in consultation with the Town** Vending Committee, local authority, planning authority and street vendors associations or unions, undertake promotional measures of making available credit, insurance and other welfare schemes of social security for the street vendors. **32. Research, training and awareness.—The appropriate Government may, to the extent of** availability of financial and other resources,— (a) organise capacity building programmes to enable the street vendors to exercise the rights contemplated under this Act; (b) undertake research, education and training programmes to advance knowledge and understanding of the role of the informal sector in the economy, in general and the street vendors, in particular and to raise awareness among the public through Town Vending Committee. **33. Act to have overriding effect.—The provisions of this Act shall have effect notwithstanding** anything in consistent there in contained in any other law for the time being in force or in any instrument having effect by virtue of any law other than this Act. **34. Powers to delegate.—The appropriate Government may, by general or special order in writing,** delegate such of its powers and functions under this Act (excluding the power to frame scheme under section 38 and power to make rules under section 36), as it may deem necessary, to the local authority or the Town Vending Committee or any other officer, subject to such conditions, if any, as may be specified in that order. **35. Power to amend Schedules.—(1) On the recommendations made by the appropriate Government** or otherwise, if the Central Government is satisfied that it is necessary or expedient so to do, it may, by notification, amend the Schedules and thereupon the First Schedule or the Second Schedule, as the case may be, shall be deemed to have been amended accordingly. (2) A copy of every notification issued under sub-section (1), shall be laid before each House of Parliament as soon as may be after it is issued. **36. Power to make rules.—(1) The appropriate Government shall, within one year from the date of** commencement of this Act, by notification, make rules for carrying out the provisions of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the age for street vending under sub-section (1) of section 4; 10 ----- (b) the form, period and manner of filing appeal with the local authority under sub-section (1) of section 11; (c) the persons and the experience such person shall have under sub-section (1) of section 20; (d) the form and the manner of making application under sub-section (2) of section 20; (e) the manner of verification and enquiry on receipt of grievance or dispute, the time within which and the manner in which steps for redressal of grievances and resolution of disputes may be taken under sub-section (3) of section 20; (f) the form, the time within which and the manner in which an appeal may be filed under sub-section (4) of section 20; (g) the time within which and the manner in which an appeal shall be disposed of under sub-section (5) of section 20; (h) the term of, and the manner of constituting, the Town Vending Committee under sub-section (1) of section 22; (i) the number of other members of the Town Vending Committee under clause (b) of sub-section (2) of section 22; (j) the manner of elections among street vendors under clause (d) of sub-section (2) of section 22; (k) the allowances to Chairperson and members under sub-section (3) of section 22; (l) the time and place for meeting, procedure for transaction of business at meetings and functions to be discharged by the Town Vending Committee under section 23; (m) the manner and the purpose for which a person may be associated under sub-section (1) of section 24; (n) the allowances to be paid to an associated person under sub-section (2) of section 24; (o) the other employees of Town Vending Committee under section 25; (p) the manner of maintaining up to date record of all street vendors under sub-section (2) of section 26; (q) the returns to be furnished under section 30; (r) the manner of publishing summary of scheme under sub-section (2) of section 38. (3) Every rule and scheme made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session,for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or scheme or both Houses agree that the rule or scheme should not be made, the rule or scheme shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or scheme. (4) Every rule or scheme made by the State Government under this Act shall, as soon as may be after it is made, be laid before each House of the State Legislature where there are two Houses, and where there is one House of the State Legislature, before that House. **37. Power to make bye-laws.—Subject to the provisions of this Act or any rule or scheme made** thereunder, the local authority may make bye-laws to provide for all or any of the following matters, namely:— (a) the regulation and manner of vending in restriction-free-vending zones, restricted-vending zones and designated vending zones; 11 ----- (b) determination of monthly maintenance charges for the civic amenities and facilities in the vending zones under section 17; (c) determination of penalty under sub-section (5) of section 18 and section 28; (d) the regulation of the collection of taxes and fees in the vending zones; (e) the regulation of traffic in the vending zones; (f) the regulation of the quality of products and services provided to the public in vending zones and maintenance of public health, hygiene and safety standards; (g) the regulation of civic services in the vending zones; and (h) the regulation of such other matters in the vending zones as may be necessary. **38. Scheme for street vendors.—(1) For the purposes of this Act, the appropriate Government shall** frame a scheme, within six months from the date of commencement of this Act, after due consultations with the local authority and the Town Vending Committee, by notification, which may specify all or any of the matters provided in the Second Schedule. (2) A summary of the scheme notified by the appropriate Government under sub-section (1) shall be published by the local authority in at least two local newspapers in such manner as may be prescribed. **39. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not in consistent with the provisions of this Act, as appear to it to be necessary expedient for removing the difficulty: Provided that no order shall be made under this section after expiry of three years from the commencement of this Act. (2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament. 12 ----- THE FIRST SCHEDULE (See section 21) PLAN FOR STREET VENDING (1) The plan for street vending shall,— (a) ensure that all existing street vendors identified in the survey, subject to a norm conforming to two and half per cent. of the population of the ward, zone, town or city, as the case may be, are accommodated in the plan for street vending; (b) ensure the right of commuters to move freely and use the roads without any impediment; (c) ensure that the provision of space or area for street vending is reasonable and consistent with existing natural markets; (d) take into account the civic facilities for appropriate use of identified spaces or areas as vending zones; (e) promote convenient, efficient and cost effective distribution of goods and provision of services; (f) such other matters as may be specified in the scheme to give effect to the plan for street vending. (2) The plan for street vending shall contain all of the following matters, namely:— (a) determination of spatial planning norms for street vending; (b) earmarking of space or area for vending zones; (c) determination of vending zones as restriction-free-vending zones, restricted vending zones and no-vending zones; (d) making of spatial plans conducive and adequate for the prevalent number of street vendors in that city or town and also for the future growth, by adopting such norms as may be necessary; (e) consequential changes needed in the existing master plan, development plan, zonal plan, layout plan and any other plan for accommodating street vendors in the designated vending zones. (3) Declaration of no-vending zone shall be carried out by the plan for street vending, subject to the following principles, namely:— (a) any existing market, or a natural market as identified under the survey shall not be declared as a no-vending zone; (b) declaration of no-vending zone shall be done in a manner which displace sthe minimum percentage of street vendors; (c) overcrowding of any place shall not be a basis for declaring any area as a no-vending zone provided that restrictions may be placed on issuing certificate of vending in such areas to persons not identified as street vendors in the survey; (d) sanitary concerns shall not be the basis for declaring any area as a no-vending zone unless such concerns can be solely attributed to street vendors and cannot be resolved through appropriate civic action by the local authority; (e) till such time as the survey has not been carried out and the plan for street vending has not been formulated, no zone shall be declared as a no-vending zone. 13 ----- THE SECOND SCHEDULE (See section 38) Matters to be provided in the Scheme for Street Vendors framed by the appropriate Government:— (a) the manner of conducting survey; (b) the period within which certificate of vending shall be issued to the street vendors identified under the survey; (c) the terms and conditions subject to which certificate of vending may be issued to a street vendor including to those persons who wish to carry on street vending during the intervening period of two surveys; (d) the form and the manner in which the certificate of vending may be issued to a street vendor; (e) the form and manner of issuing identity cards to street vendors; (f) the criteria for issuing certificate of vending to street vendors; (g) the vending fees to be paid on the basis of category of street vending, which may be different for different cities; (h) the manner of collecting, through banks, counters of local authority and counters of Town Vending Committee, vending fees, maintenance charges and penalties for registration, use of parking space for mobile stalls and availing of civic services; (i) the period of validity of certificate of vending; (j) the period for which and the manner in which a certificate of vending may be renewed and the fees for such renewal; (k) the manner in which the certificate of vending may be suspended or cancelled; (l) the categories of street vendors other than stationery vendors and mobile vendors; (m) the other categories of persons for preference for issue of certificate of vending; (n) the public purpose for which a street vendor may be relocated and the manner of relocating street vendor; (o) the manner of evicting a street vendor; (p) the manner of giving notice for eviction of a street vendor; (q) the manner of evicting a street vendor physically on failure to evict; (r) the manner of seizure of goods by the local authority, including preparation and issue of list of goods seized; (s) the manner of reclaiming seized goods by the street vendor and the fees for the same; (t) the form and the manner for carrying out social audit of the activities of Town Vending Committee; (u) the conditions under which private places may be designated as restriction free-vending zones, restricted-vending zones and no-vending zones; (v) the terms and conditions for street vending including norms to be observed for up keeping public health and hygiene; (w) the designation of State Nodal Officer for co-ordination of all matters relating to street vending at the state level; (x) the manner of maintenance of proper records and other documents by the Town Vending Committee, local authority, planning authority and State Nodal Officer in respect of street vendors; 14 ----- (y) the manner of carrying out vending activities on time-sharing basis; (z) the principles for determination of vending zones as restriction-free-vending zones, restricted-vending zones and no-vending zones; (za) the principles for determining holding capacity of vending zones and the manner of undertaking comprehensive census and survey; (zb) principles of relocation subject to the following: (i) relocation should be avoided as far as possible, unless there is clear and urgent need for the land in question; (ii) affected vendors or their representatives shall be involved in planning and implementation of the rehabilitation project; (iii) affected vendors shall be relocated so as to improve their livelihoods and standards of living or at least to restore them, in real terms to pre-evicted levels; (iv) livelihood opportunities created by new infrastructure development projects shall accommodate the displaced vendors so that they can make use of the livelihood opportunities created by the new infrastructure; (v) loss of assets shall be avoided and in case of any loss, it shall be compensated; (vi) any transfer of title or other interest in land shall not affect the rights of street vendors on such land, and any relocation consequent upon such a transfer shall be done in accordance with the provisions of this Act; (vii) state machinery shall take comprehensive measures to check and control the practice of forced evictions; (viii) natural markets where street vendors have conducted business for over fifty years shall be declared as heritage markets, and the street vendors in such markets shall not be relocated; (zc) any other matter which may be included in the scheme for carrying out the purposes of this Act. 15 -----

17-Jul-2014

18

The National Institutes of Design Act, 2014

https://www.indiacode.nic.in/bitstream/123456789/2132/1/A2014-18.pdf

central

# THE NATIONAL INSTITUTES OF DESIGN ACT, 2014 _______________ # ARRANGEMENT OF SECTIONS _______________ CHAPTER I PRELIMINARY SECTIONS 1. Short title and commencement. 2. Declaration of certain institutions as institutions of national importance. 3. Definitions. CHAPTER II THE INSTITUTE 4. Incorporation of Institute. 5. Effect of incorporation of the Institute. 6. Powers of Institute. 7. Institute be open to all races, creeds and classes. 8. Teaching at Institute. 9. Visitor. 10. Authorities of Institute. 11. Governing Council. 12. Term of office of, vacancies among, and allowances payable to Chairperson and other members of Governing Council. 13. Meeting of Governing Council. 14. Powers and functions of Governing Council. 15. Senate. 16. Functions of Senate. 17. Functions, powers and duties of Chairperson. 18. Director. 19. Dean. 20. Registrar. 21. Powers and duties of other authorities and officers. 22. Grants by Central Government. 23. Fund of Institute. 24. Setting up of Endowment Fund. 25. Accounts and audit. 26. Pension and provident fund. 27. Appointment of staff. 28. Statutes. 29. Statutes how to be made. 30. Ordinances. 31. Ordinances how to be made. 32. Arbitral Tribunal. CHAPTER III MISCELLANEOUS 33. Acts and proceedings not to be invalidated by vacancies, etc. 34. Sponsored schemes. 35. Power of Institute to grant degrees, etc. 1 ----- SECTIONS 36. Powers of Central Government to issue directions. 37. Institute to be public authority under Right to Information Act, 2005. 38. Power of Central Government to make rules. 39. Transitional provisions. 40. Statutes and Ordinances to be published in the Official Gazette and to be laid before Parliament. 41. Power to remove difficulties. THE SCHEDULE. 2 ----- # THE NATIONAL INSTITUTES OF DESIGN ACT, 2014 ACT NO. 18 OF 2014 [17th July, 2014.] # An Act to declare [1][certain institutions of design to be institutions of national importance] for the promotion of quality and excellence in education, research and training in all disciplines relating to Design and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Sixty-fifth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title and commencement.—(1) This Act may be called the National [2][Institutes] of Design** Act, 2014. (2) It shall come into force on such date[3] as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act. **4[2. Declaration of certain institutions as institutions of national importance.—Whereas the** objects of the institutions mentioned in the Schedule, are such as to make them institutions of national importance, it is hereby declared that each such Institute is an institution of national importance.] **3. Definitions.—In this Act, unless the context otherwise requires,—** (a) ―Chairperson‖ means the Chairperson of the Governing Council nominated under clause (a) of section 11; (b) ―Dean‖, in relation to any Institute campus, means the Dean of such Institute campus; (c) ―design‖ means a rational, logical and sequential innovative process for the purpose of transferring culture to viable products and services and for providing a competitive edge to products and services, and includes industrial design, communication design, textile and apparel design, lifestyle design, experiential design, exhibition design, craft and traditional sector design; 5[(d) ―Director‖, in relation to any Institute, means the Director of such Institute as appointed under section 18;] 6[(e) ―Fund‖, in relation to any Institute, means the Fund of such Institute as maintained under section 23;] 7[(f) ―Governing Council‖, in relation to any Institute, means the Governing Council of such Institute as constituted under section 11;] 8[(g) ―Institute‖ means any of the institutions mentioned in column (4) of the Schedule;] 9[(h) ―Institute campus‖ means the campus of an Institute as may be established by such Institute at any place within India or outside India;] (i) ―notification‖ means a notification published in the Official Gazette; (j) ―prescribed‖ means prescribed by rules made under this Act; 1. Subs. by Act 38 of 2019, s. 2, for certain words (w.e.f.13-1-2020). 2. Subs. by s. 3, ibid., for ―Institute‖ (w.e.f. 13-1-2020). 3. 16th September, 2014 _vide notification No. S.O. 2393(E), dated 16th September, 2014,_ _see Gazette of India, Extraordinary,_ Part II, sec. 3(ii). 4. Subs. by Act 38 of 2019, s. 4, for section 2 (w.e.f. 13-1-2020). 5. Subs. by s. 5, ibid., for clause (d) (w.e.f. 13-1-2020). 6. Subs. by s. 5, ibid., for clause (e) (w.e.f. 13-1-2020). 7. Subs. by s. 5, ibid., for clause (f) (w.e.f. 13-1-2020). 8. Subs. by s. 5, ibid., for clause (g) (w.e.f. 13-1-2020). 9. Subs. by s. 5, ibid., for clause (h) (w.e.f. 13-1-2020). 3 ----- 1[(k) ―Registrar‖ in relation to any Institute, means the Registrar of such Institute as appointed under section 20;] 2[(ka) ―Schedule‖ means the Schedule annexed to this Act;] 3[(l) ―Senate‖, in relation to any Institute, means the Senate of such Institute;] 4[(m) ―Society‖ means any of the societies registered under the Societies Registration Act, 1860 (21 of 1860), and mentioned in column (3) of the Schedule;] 5[(n) ―Statutes‖ and ―Ordinances‖, in relation to any Institute, mean the Statutes and the Ordinances of such Institute made under this Act.] CHAPTER II THE INSTITUTE **6[4. Incorporation of Institute.—(1) Each Institute shall be a body corporate by the same name as** as mentioned in column (4) of the Schedule. (2) Each Institute shall have perpetual succession and a common seal, with power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to contract and shall, by the said name, sue or be sued. (3) The body corporate constituting each Institute shall consist of a Chairperson, Director and other members of the Governing Council for the time being, of the Institute. (4) Any Institute may establish an Institute campus at such place within India or outside India, as it may deem fit: Provided that each campus of the National Institute of Design, Ahmedabad, established before the commencement of this Act, at Bengaluru in the State of Karnataka and at Gandhinagar in the State of Gujarat, shall be deemed to be the Institute campus thereof. _Explanation.—The reference in this sub-section to the commencement of this Act shall, in relation to_ the National Institute of Design, Ahmedabad, be deemed to be the 16th day of September, 2014.] **5. Effect of the incorporation of the Institute.—On and from the date of commencement of this** Act,— 7[(a) any reference to the Society mentioned in column (3) of the Schedule in any law or in any contract or other instrument shall be deemed as a reference to the corresponding Institute mentioned in column (4) thereof;] (b) all property, movable and immovable of, or belonging to, the Society, shall vest in the Institute; (c) all the rights and liabilities of the Society shall be transferred to, and be, the rights and liabilities of, the Institute; (d) any reference to any campus of the Institute, established before the commencement of this Act, shall be deemed as a reference to that Institute campus; 1. Subs. by Act 38 of 2019, s. 5, for clause (k) (w.e.f. 13-1-2020). 2. Ins. by s. 5, ibid. (w.e.f. 13-1-2020). 3. Subs. by s. 5, ibid., for clause (l) (w.e.f. 13-1-2020). 4. Subs. by s. 5, ibid., for clause (m) (w.e.f. 13-1-2020). 5. Subs. by s. 5, ibid., for clause (n) (w.e.f. 13-1-2020). 6. Subs. by s. 6, ibid., for section 6 (w.e.f. 13-1-2020). 7. Subs. by s. 7, ibid., for clause (a) (w.e.f. 13-1-2020). 4 ----- (e) every person employed by the Society, immediately before such commencement, shall hold his office or service in the Institute including the Institute campuses, [1]*** by the same tenure, at the same remuneration and upon the same terms and conditions and with the same rights and privileges as to pension, leave, gratuity, provident fund and other matters as he would have held the same, if this Act had not been enacted, and shall continue to be so, unless and until his employment is terminated or until such tenure, remuneration, terms and conditions are duly altered by the Statutes: Provided that if the alteration so made is not acceptable to such employee, his employment may be terminated by the Institute in accordance with the terms of the contract with the employee or, if no provision is made therein in this behalf, on payment to him by the Institute of compensation equivalent to three months’ remuneration in the case of permanent employee and one month’s remuneration in the case of other employee. 2[Explanation I.--The reference in this section to the commencement of this Act shall, in relation to the National Institute of Design, Ahmedabad, be deemed to be the 16th day of September, 2014. _Explanation II.--The reference in this section to the commencement of this Act shall, in relation_ to the National Institutes of Design in the States of Madhya Pradesh, Assam, Haryana and Andhra Pradesh, be construed as the reference to the date on which the provisions of the National Institute of Design (Amendment) Act, 2019 comes into force.] **6. Powers of Institute.—(1) Subject to the provisions of this Act,** [3][each Institute shall] exercise the following powers and perform the following duties, namely:— (a) to provide for instructions, research and training in the areas or disciplines relating to design and to nurture and promote quality and excellence thereof in such areas or disciplines; (b) to develop courses leading to graduate and post-graduate degrees, doctoral and post-doctoral distinctions and research in all areas or disciplines relating to design; (c) to hold examinations and grant degrees, and diplomas and other academic distinctions or titles in the areas or disciplines relating to design; (d) to confer honorary degrees, awards or other distinctions in the areas or disciplines relating to design; (e) to institute and award fellowships, scholarships, exhibitions, prizes and medals; (f) to fix, demand and receive fees and other charges; (g) to establish, maintain and manage halls and hostels for the residence of the students; (h) to supervise and control the residence and regulate the discipline of students of the Institute and to make arrangements for promoting their health, general welfare and cultural and corporate life; (i) to institute academic and other posts and to make appointments thereto (except in the case of the Director); (j) to frame Statutes and Ordinances and to alter, modify or rescind the same; (k) to co-operate with educational or other institutions in any part of the world having objects wholly or partly similar to those of the Institute by exchange of faculty members and scholars and generally in such manner as may be conducive to their common objective; (l) to act as a nucleus for interaction between academia and industry by encouraging exchange of designers and other technical staff between the Institute and the industry and by undertaking sponsored and funded research as well as consultancy projects by the Institute; 1. The words ―located at Bengaluru in the State of Karnataka and at Gandhinagar in the State of Gujarat‖ omitted by Act 38 of 2019, s. 7 (w.e.f. 13-1-2020). 2. Ins. by s. 7, ibid. (w.e.f. 13-1-2020). 3. Subs. by s. 8, ibid., for ―the Institute shall‖ (w.e.f. 13-1-2020). 5 ----- (m) to establish, equip and maintain workshops or laboratories or studios with modern machinery and equipments in order to undertake scientific and technological research for creating good designs for the production of goods and services and to provide funds for such works and for payment to any person or persons engaged in service, training and research work whether in such workshop or laboratory or studio; (n) to acquire any patent or licence relating to such invention, improvement or design or standardisation marks whether for general or specific purposes; (o) to undertake consultancy in the areas or disciplines relating to design; (p) to deal with any property belonging to, or vested in, the Institute, in such manner as the Institute may deem fit for advancing the objects of the Institute; (q) to receive gifts, grants, donations or benefactions from the Government and to receive bequests, donations and transfers of movable or immovable properties from testators, donors or transferors, as the case may be; (r) to encourage and improve education of persons who are engaged or are likely to be engaged in the service, training or research activities by grant of loans, scholarships or other monetary assistance or otherwise; (s) to prepare, print, publish, issue, acquire and circulate books, papers, periodicals, exhibits, films, slides, gadgets, circulars and other literary undertakings, dealing with or having a bearing upon the subject of industrial design and allied fields; (t) to establish, form and maintain museums, libraries and collections of literature and films, slides, photographs, prototypes and other information relating to design and allied subjects; (u) to nominate designers, engineers (mechanical or electrical or civil), architects, craftsmen, technicians or investigators to study in India or outside India in regard to the service, training and research in such fields as the Institute may think fit; (v) to retain or employ skilled professional, technical advisers, consultants, workers or craftsmen in connection with the objects of the Institute; (w) to encourage artisans, technicians and others with inventive skill to work out details and specifications of processes, appliances and gadgets by giving awards, financial or technical assistance; (x) to construct buildings and alter, extend, improve, repair, enlarge or modify and to provide and equip the same with light, water, drainage, furniture, fittings and all other accessories; (y) ) to borrow and raise moneys, with or without security or on the security of a mortgage, charge, or hypothecation or pledge of any of the movable or immovable properties belonging to the Institute or in any other manner; (z) to do all such things as may be necessary, incidental or conducive to the attainment of all or any of the objects of the Institute. (2) Notwithstanding anything contained in sub-section (1), the Institute shall not dispose of in any manner any immovable property without the prior approval of the Visitor. **7. Institute be open to all races, creeds and classes.—(1) [1][Every Institute] shall be open to persons** of either sex and of whatever race, creed, caste or class, and no test or condition shall be imposed as to religious belief or profession in admitting or appointing members, students, teachers or workers or in any other connection whatsoever. (2) No bequest, donation or transfer of any property shall be accepted by the Institute, which in the opinion of the Governing Council involves conditions or obligations opposed to the spirit and objects of the Institute. 1. Subs. by Act 38 of 2019, s. 9, for ―The Institute‖ (w.e.f. 13-1-2020). 6 ----- **8. Teaching at Institute.—All [1][teaching at each of the Institutes] and the Institute campuses shall be** conducted by or in the name of the Institute in accordance with the Statutes and the Ordinances made in this behalf. **9. Visitor.—(1) The President of India shall be the Visitor of [2][each of the Institutes].** (2) The Visitor may appoint one or more persons to review the work and progress of the Institute or any Institute campus and to hold inquiries into the affairs thereof and to report thereon in such manner as the Visitor may direct. (3) Upon receipt of any such report, the Visitor may take such action and issue such directions as he considers necessary in respect of any of the matters dealt with in the report and the Institute shall be bound to comply with such directions. **10. Authorities of Institute.—[3][Each Institute shall have the following authorities], namely:––** (a) the Governing Council, (b) a Senate, and (c) such other authorities as may be declared by the Statutes to be the authorities of the Institute. **11. Governing Council.—[4][The Governing Council of every Institute shall consist of] the following** members, namely:— (a) a Chairperson, who shall be an eminent academician, scientist or technologist or professional or industrialist, to be nominated by the Visitor; (b) the Director, ex officio; (c) the Financial Adviser in the Ministry or Department of the Government of India dealing with the National Institute of Design, ex officio; (d) the Joint Secretary, in the Ministry or Department in the Government of India dealing with the National Institute of Design, ex officio; (e) one representative of the Ministry or Department of the Government of India not below the rank of Joint Secretary dealing with Higher Education, to be nominated by the Secretary of that Ministry or Department, ex officio; (f) one representative of the Ministry or Department of the Government of India not below the rank of Joint Secretary dealing with Information Technology to be nominated by the Secretary of that Ministry or Department, ex officio; (g) one representative from the State in which the Institute campus is located, to be nominated by that State Government; (h) five professionals, one each from the fields of architecture, engineering, fine arts, mass media and technology, to be nominated by the Central Government; (i) an outstanding Designer, to be nominated by the Visitor in consultation with the Central Government; (j) a management expert, to be nominated by the Chairperson; (k) a representative of the Micro, Small and Medium Enterprises, to be nominated by the Central Government; (l) three persons to be nominated by the Senate from amongst persons recommended by companies, firms or individuals who have provided financial assistance or contribution to the Institute: 1. Subs. by Act 38 of 2019, s. 10, for ―teaching at the Institute‖ (w.e.f. 13-1-2020). 2. Subs. by s. 11, ibid., for ―the Institute‖ (w.e.f. 13-1-2020). 3. Subs. by s. 12, ibid., for ―The following shall be the authorities of the Institute‖ (w.e.f. 13-1-2020). 4. Subs. by s. 13, ibid., for ―The Governing Council shall consist of‖ (w.e.f. 13-1-2020). 7 ----- Provided that the threshold of financial assistance or contribution and other requirements to qualify for such nomination shall be such as may be provided for in the Statutes; and (m) Dean of each Institute campus, ex officio. **12. Term of office of, vacancies among, and allowances payable to Chairperson and other** **members of Governing Council.—(1) The term of office of the Chairperson or any other member of the** Governing Council (other than an ex officio member) shall be three years from the date of his nomination. (2) Save as otherwise provided in this section, the term of office of an _ex officio_ member shall continue so long as he holds the office by virtue of which he is a member. (3) The term of office of a member of the Governing Council nominated to fill a casual vacancy shall continue for the remainder of the term of the member in whose place he has been nominated. (4) Notwithstanding anything contained in this section, an outgoing member shall, unless the Governing Council otherwise directs, continue in office until another person is nominated as a member in his place. (5) The members of the Governing Council shall be entitled to such allowances, if any, from the Institute as may be provided for in the Statutes but no member other than the persons referred to in clauses (b) and (m) of section 11 shall be entitled to any salary by reason of this sub-section. **13. Meeting of Governing Council.—The Governing Council shall meet at least four times in a year** at such place and time and observe such rules of procedure in regard to the transaction of business at its meetings, as may be determined by the Governing Council. **14. Powers and functions of Governing Council.—(1) Subject to the provisions of this Act, the** Governing Council shall be responsible for the general superintendence, direction and control of the affairs of the Institute and shall exercise all the powers of the Institute not otherwise provided for by this Act, the Statutes and the Ordinances, and shall have the power to review the acts of the Senate. (2) Without prejudice to the provisions of sub-section (1), the Governing Council shall–– (a) take decisions on questions of policy relating to the administration and working of the Institute; (b) take decision on the establishment of new Institute campus at any place in India or outside India; (c) institute courses of study at the Institute; (d) institute academic and other posts and to make appointments thereto; (e) make Statutes; (f) consider and modify or cancel Ordinances; (g) consider and pass resolutions on the annual report, the annual accounts and the budget estimates of the Institute including each of the Institute campuses for the next financial year, as it thinks fit and submit them to the Central Government together with a statement of its development plans; and (h) exercise such other powers and perform such other duties as may be conferred or imposed upon it by this Act or the Statutes. (3) The Governing Council shall have power to appoint such committees as it considers necessary for the exercise of its powers and the performance of its duties under this Act. (4) The Governing Council shall have the power to enter into arrangements with the Central Government, State Governments and other public or private organisations or individuals in India or outside India for securing and accepting endowments, grants, donations or gifts to the Institute on mutually agreed terms and conditions: Provided that the conditions of such grant, donation or gift, if any, shall not be inconsistent or in conflict with the nature or objects of the Institute and the provisions of this Act. 8 ----- (5) The Governing Council shall have the power to take over and acquire by purchase, gift or otherwise from Government and other public bodies or private individuals willing to transfer movable and immovable properties, endowments or other funds together with any attendant obligations and engagements not inconsistent with the provisions of this Act. (6) The Governing Council may by specific resolution to this effect delegate to the Chairperson such of its powers for the conduct of business, as it may deem necessary. **15. Senate.—[1][The Senate of each Institute] shall consist of the following persons, namely:––** (a) the Director, ex officio, who shall be the Chairman of the Senate; (b) Dean of each Institute campus, ex officio; (c) Senior Professors of the Institute and of the Institute campuses; (d) three persons, not being employees of the Institute, to be nominated by the Chairperson in consultation with the Director, from amongst educationists of repute, one each from the fields of science, engineering and humanities and at least one of them shall be a woman; (e) one alumnus of the Institute to be nominated by the Chairperson in consultation with the Director; and (f) such other members of the staff as may be laid down in the Statutes. **16. Functions of Senate.—Subject to the provisions of this Act, the Statutes and the Ordinances,** 2[the Senate of an Institute] shall have the control and general regulation, and be responsible for the maintenance of standards of instruction, education and examination in the Institute and shall exercise such other powers and perform such other duties as may be conferred or imposed upon it by the Statutes. **17. Functions, powers and duties of Chairperson.—(1) The Chairperson shall ordinarily preside at** the meetings of the Governing Council and at the convocations of the Institute. (2) It shall be the duty of the Chairperson to ensure that the decisions taken by the Governing Council are implemented. (3) The Chairperson shall exercise such other powers and perform such other duties as may be assigned to him by this Act or the Statutes. **18. Director.—(1) The Director of** [3][each of the Institutes] shall be appointed by the Central Government for a tenure of five years in such manner and on such terms and conditions of service as may be prescribed. (2) The Director shall be appointed on the recommendations of the Selection Committee constituted by the Central Government. (3) The Director shall be the principal executive officer of the Institute and shall be responsible for— (a) proper administration of the Institute and for imparting of instructions and maintenance of discipline therein; (b) co-ordination of activities of all the Institute campuses; (c) examining the development plans of the Institute and each Institute campus and to approve such of them as are considered necessary and also to indicate broadly the financial implications of such approved plans; and (d) examining the annual budget estimates of the Institute and each Institute campus and to recommend to the Central Government the allocation of funds for that purpose. (4) The Director shall exercise such other powers and perform such other duties as may be assigned to him by this Act, Statutes and Ordinances. (5) The Director shall submit annual reports and accounts to the Governing Council. 1. Subs. by Act 38 of 2019, s. 14, for ―The Senate of each Institute‖ (w.e.f. 13-1-2020). 2. Subs. by s. 15, ibid., for ―the Senate of the Institute‖ (w.e.f. 13-1-2020). 3. Subs. by s. 16, ibid., for ―the Institute‖ (w.e.f. 13-1-2020). 9 ----- (6) The Central Government shall have the power to remove the Director before expiry of his tenure, if it considers it appropriate to do so. **19. Dean.—(1) The Dean of each Institute campus shall be appointed on such terms and conditions as** may be laid down by the Statutes and shall exercise such powers and perform such duties as may be assigned to him by this Act or the Statutes or by the Director. (2) Without prejudice to the provisions of sub- section (1), the Dean of each Institute campus shall look after all academic, administrative, research and other activities of the Institute campus in consultation with the Director. **20. Registrar.—(1) The [1][Registrar of each Institute] shall be appointed on such terms and conditions** as may be laid down by the Statutes and shall be the custodian of records, the common seal, the funds of the Institute and such other property of the Institute as the Governing Council shall commit to his charge. (2) The Registrar shall act as the Secretary of the Governing Council, the Senate and such committees as may be prescribed by the Statutes. (3) The Registrar shall be responsible to the Director for the proper discharge of his functions. (4) The Registrar shall exercise such other powers and perform such other duties as may be assigned to him by this Act or the Statutes or by the Director. **21. Powers and duties of other authorities and officers.—The powers and duties of authorities and** officers, other than those hereinbefore mentioned, shall be determined by the Statutes. **22. Grants by Central Government.—For the purpose of** [2][enabling an Institute] to discharge its functions efficiently under this Act, the Central Government may, after due appropriation made by Parliament by law in this behalf, pay to the Institute in each financial year such sums of money and in such manner as it may think fit. **23. Fund of Institute.—(1) [3][Every Institute] shall maintain a Fund to which shall be credited––** (a) all moneys provided by the Central Government; (b) all fees and other charges received by the Institute; (c) all moneys received by the Institute by way of grants, gifts, donations, benefactions, bequests or transfers; and (d) all moneys received by the Institute in any other manner or from any other source. (2) All moneys credited to the Fund shall be deposited in such banks or invested in such manner as the Institute may, with the approval of the Central Government, decide. (3) The Fund shall be applied towards meeting the expenses of the Institute including expenses incurred in the exercise of its powers and discharge of its duties under this Act. **24. Setting up of Endowment Fund.—Notwithstanding anything contained in section 23, the** Central Government may direct [4][any Institute] to–– (a) set up an Endowment Fund and any other Fund for specified purpose; and (b) transfer money from its Fund to Endowment Fund or any other Fund. **25. Accounts and audit.—(1)** [5][Every Institute] shall maintain proper accounts and other relevant records and prepare an annual statement of accounts, including the balance sheet, in such form as may be prescribed, in accordance with such general directions as may be issued by the Central Government in consultation with the Comptroller and Auditor-General of India. 1. Subs. by Act 38 of 2019, s. 17, for ―Registrar of the Institute‖ (w.e.f. 13-1-2020). 2. Subs. by s. 18, ibid., for ―enabling the Institute‖ (w.e.f. 13-1-2020). 3. Subs. by s. 19, ibid., for ―The Institute‖ (w.e.f. 13-1-2020). 4. Subs. by s. 20, ibid., for ―the Institute‖ (w.e.f. 13-1-2020). 5. Subs. by s. 21, ibid., for ―The Institute‖ (w.e.f. 13-1-2020). 10 ----- (2) The accounts of the Institute shall be audited by the Comptroller and Auditor-General of India and any expenditure incurred by him in connection with such audit shall be payable by the Institute to the Comptroller and Auditor-General of India. (3) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Institute shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General of India, generally has in connection with the audit of the Government accounts, and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Institute. (4) The accounts of the Institute as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf, together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament. **26. Pension and provident fund.—(1)** [1][Every Institute] shall constitute, for the benefit of its employees, including the Director, such pension, insurance and provident funds as it may deem fit, in such manner and subject to such conditions as may be laid down in the Statutes. (2) Where any provident fund has been constituted under sub-section (1), the Central Government may declare that the provisions of the Provident Funds Act, 1925 (19 of 1925) shall apply to such fund as if it were a Government provident fund. **27. Appointment of staff.—All appointments of the staff of** [2][an Institute], except that of the Director, shall be made in accordance with the procedure laid down in the Statutes by–– (a) the Governing Council, if the appointment is made on the academic staff in the post of 3[Principal Designer] or Professor or above or if the appointment is made on the non-academic staff in any cadre, the maximum of the pay-scale for which is the same or higher than that of [3][Principal Designer] or Professor; and (b) the Director, in any other case. **28. Statutes.—Subject to the provisions of this Act, the Statutes may provide for all or any of the** following matters, namely:— (a) conferment of honorary degrees; (b) formation of departments of teaching, establishment of workshops, laboratories and studios; (c) fees to be charged for courses of study in the Institute including Institute campus and for admission to the examinations of degrees, diplomas and certificates of the Institute; (d) institution of fellowships, scholarships, exhibitions, medals and prizes; (e) qualifications of teachers of the Institute; (f) classification, method of appointment and the determination of the terms and conditions of service of officers, teachers and other staff of the Institute; (g) reservation of posts for the Scheduled Castes, the Scheduled Tribes and Other Backward Classes of persons as may be determined by the Central Government; (h) constitution of pension, insurance and provident funds for the benefit of the officers, teachers and other staff of the Institute; (i) constitution, powers and duties of the authorities of the Institute and Institute campuses; (j) establishment and maintenance of halls and hostels; (k) conditions of residence of students of the Institute and the levying of the fees for residence in the halls and hostels and other charges; 1. Subs. by Act 38 of 2019, s. 22, for ―The Institute‖ (w.e.f. 13-1-2020). 2. Subs. by s. 23, ibid., for ―the Institute‖ (w.e.f. 13-1-2020). 3. Subs. by s. 23, ibid., for ―Senior Designer‖ (w.e.f. 13-1-2020). 11 ----- (l) manner of filling up of vacancies among members of the Governing Council; (m) allowances to be paid to the Chairperson and members of the Governing Council; (n) authentication of the orders and decisions of the Governing Council; (o) meetings of the Governing Council, Senate, or any Committee, the quorum at such meetings and the procedure to be followed in the conduct of their business; (p) any other matter which by this Act is to be or may be prescribed by the Statutes. **29. Statutes how to be made.—(1) The first Statutes of** [1][each Institute] shall be framed by the Governing Council with the previous approval of the Visitor and a copy of the same shall be laid as soon as may be before each House of Parliament. (2) The Governing Council may, from time to time, make new or additional Statutes or may amend or repeal the Statutes in the manner hereinafter in this section provided. (3) Every new Statute or addition to the Statutes or any amendment or repeal of a Statute shall require the previous approval of the Visitor who may assent thereto or withhold assent therefrom or remit it to the Governing Council for reconsideration. (4) A new Statute or a Statute amending or repealing an existing Statute shall have no validity unless it has been assented to by the Visitor. **30. Ordinances.—Subject to the provisions of this Act and the Statutes, the** [2][Ordinances of each Institute] may provide for all or any of the following matters, namely:–– (a) admission of the students to the Institute including Institute campus; (b) reservation in admission to various courses or programmes of the Institute for the Scheduled Castes, the Scheduled Tribes and Other Backward Classes; (c) courses of study to be laid down for all degrees, diplomas and certificates of the Institute; (d) conditions under which students shall be admitted to the degree, diploma and certificate courses and to the examinations of the Institute and award of degrees, diplomas and certificates; (e) conditions for award of fellowships, scholarships, exhibitions, medals and prizes; (f) conditions and mode of appointment and duties of examining body, examiners and moderators; (g) conduct of examinations; (h) maintenance of discipline among the students of the Institute; and (i) any other matter which by this Act or the Statutes is to be or may be provided for by the Ordinances. **31. Ordinances how to be made.—(1) Save as otherwise provided in this section, Ordinances shall** be made by the Senate. (2) All Ordinances made by the Senate shall have effect from such date as it may direct, but every Ordinance so made shall be submitted, as soon as may be, to the Governing Council and shall be considered by the Governing Council at its next meeting. (3) The Governing Council shall have power by resolution to modify or cancel any such Ordinance and such Ordinance shall from the date of such resolution stand modified accordingly or cancelled, as the case may be. **32. Arbitral Tribunal.—(1) Any dispute arising out of a contract** [3][between an Institute] and any of its employees shall, at the request of the employee concerned or at the instance of the Institute, be referred 1. Subs. by Act 38 of 2019, s. 24, for ―the Institute‖ (w.e.f. 13-1-2020). 2. Subs. by s. 25, ibid., for ―Ordinances of the Institute‖ (w.e.f. 13-1-2020). 3. Subs. by s. 26, ibid., for ―between the Institute‖ (w.e.f. 13-1-2020). 12 ----- to an Arbitral Tribunal consisting of one member appointed by the Institute, one member nominated by the employee and an umpire appointed by the Visitor. (2) The decision of the Arbitral Tribunal shall be final and shall not be questioned in any court. (3) No suit or proceeding shall lie in any court in respect of any matter which is required by sub section (1) to be referred to the Arbitral Tribunal. (4) The Arbitral Tribunal shall have power to regulate its own procedure. (5) Nothing in any law for the time being in force relating to arbitration shall apply to arbitration under this section. CHAPTER III MISCELLANEOUS **33. Acts and proceedings not to be invalidated by vacancies, etc.—No act of** [1][any Institute] or Governing Council or Senate or any other authority, set up under this Act or the Statutes, shall be invalid merely by reason of— (a) any vacancy in, or defect in the constitution thereof; or (b) any defect in the election, nomination or appointment of a person acting as a member thereof; or (c) any irregularity in its procedure not affecting the merits of the case. **34. Sponsored schemes.—Notwithstanding anything contained in this Act, whenever** [2][an Institute receives] funds from any Government, the University Grants Commission or any other agency including industry sponsoring a research scheme or a consultancy assignment or a teaching programme or a Chaired Professorship or a scholarship, etc., to be executed or endowed at the Institute,— (a) the amount received shall be kept by the Institute separately from the Fund of the Institute and utilised only for that purpose; and (b) the staff required to execute the same shall be recruited in accordance with the terms and conditions stipulated by the sponsoring organisations: Provided that any money remaining unutilised shall be transferred to the Endowment Fund set up under section 24 of this Act. **35. Power of Institute to grant degrees, etc.—[3][Every Institute] shall have the power to grant** degrees, diplomas, certificates and other academic distinctions under this Act, which shall be equivalent to such corresponding degrees, diplomas, certificates and other academic distinctions granted by any University or Institute established or incorporated under any other law for the time being in force. **36. Powers of Central Government to issue directions.—The Central Government may give such** directions as it may deem necessary [4][to any Institute] for effective administration of this Act and the Institute shall comply with such directions. **37. Institute to be public authority under Right to Information Act, 2005.—The provisions of the** Right to Information Act, 2005 (22 of 2005) shall apply to [5][every Institute], as if it were a public authority as defined in clause (h) of section 2 of the Right to Information Act, 2005. **38. Power of Central Government to make rules.—(1) The Central Government may, by** notification, make rules to carry out the purposes of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— 1. Subs. by Act 38 of 2019, s. 27, for ―the Institute‖ (w.e.f. 13-1-2020). 2. Subs. by s. 28, ibid., for ―the Institute receives‖ (w.e.f. 13-1-2020). 3. Subs. by s. 29, ibid., for ―The Institute‖ (w.e.f. 13-1-2020). 4. Subs. by s. 30, ibid., for ―to the Institute‖ (w.e.f. 13-1-2020). 5. Subs. by s. 31, ibid., for ―the Institute‖ (w.e.f. 13-1-2020). 13 ----- (a) the manner of appointment of the Director and terms and conditions of his service under sub-section (1) of section 18; (b) the form and the manner in which the books of account of the Institute shall be maintained under sub-section (1) of section 25; (c) any other matter which is required to be, or may be, prescribed. (3) Every rule made by the Central Government shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session, immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **39. Transitional provisions.—Notwithstanding anything contained in this Act––** (a) the [1][Governing Council of an Institute] functioning as such, immediately before the commencement of this Act, shall continue to so function until a new Governing Council is constituted for the Institute under this Act, but on the constitution of a new Governing Council under this Act, the members of the Governing Council holding office before such constitution shall cease to hold office; (b) the Policy and Planning Committee of the Society, functioning as such before the commencement of this Act, shall be deemed to be the Senate constituted under this Act and continue to so function until a new Senate is constituted for the Institute under this Act; (c) until the first Statutes and Ordinances are made under this Act, the rules and regulations, instructions, guidelines and bye-laws of the Society, in force immediately before the commencement of this Act, shall continue to apply to the Institute and Institute campuses [2]***, in so far as they are not inconsistent with the provisions of this Act. 3[Explanation I.--The reference in this section to the commencement of this Act shall, in relation to the National Institute of Design, Ahmedabad, be deemed to be the 16th day of September, 2014. _Explanation II.--The reference in this section to the commencement of this Act shall, in relation to the_ National Institutes of Design in the States of Madhya Pradesh, Assam, Haryana and Andhra Pradesh, be construed as the reference to the date on which the provisions of the National Institute of Design (Amendment) Act, 2019 comes into force.] **40. Statutes and Ordinances to be published in the Official Gazette and to be laid before** **Parliament.—(1) Every Statute or Ordinance made under this Act shall be published in the Official** Gazette. (2) Every Statute or Ordinance made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the Statute or Ordinance or both Houses agree that the Statute or Ordinance should not be made, the Statute or Ordinance shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that Statute or Ordinance. (3) The power to make Statutes or Ordinances shall include the power to give retrospective effect from a date not earlier than the date of commencement of this Act to Statutes or Ordinances or any of 1. Subs. by Act 38 of 2019, s. 32, for ―Governing Council of the Institute‖ (w.e.f. 13-1-2020). 2. The words ―located at Bengaluru or Gandhinagar, as the case may be‖ omitted by s. 32, ibid. (w.e.f. 13-1-2020). 3. Ins. by s. 32, ibid. (w.e.f. 13-1-2020). 14 ----- them but no retrospective effect shall be given to any Statute or Ordinance so as to prejudicially affect the interests of any person to whom such Statutes or Ordinances may be applicable. 1[Explanation I.—The reference in this section to the commencement of this Act shall, in relation to the National Institute of Design, Ahmedabad, be deemed to be the 16th day of September, 2014. _Explanation II.—The reference in this section to the commencement of this Act shall, in relation to_ the National Institutes of Design in the States of Madhya Pradesh, Assam, Haryana and Andhra Pradesh, be construed as the reference to the date on which the provisions of the National Institute of Design (Amendment) Act, 2019 comes into force.] **41. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions or give such directions not inconsistent with the purposes of this Act, as appears to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made after the expiry of two years from the appointed day. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. 1. Ins. by Act 38 of 2019, s. 33 (w.e.f. 13-1-2020). 15 ----- **1[THE SCHEDULE** [See sections 2, 3(g), (ka), (m), 4 (1) and 5 (a)] Sl. No. Name of the State Name of the Society (1) (2) (3) 1. Gujarat The National Institute of Design, Ahmedabad, a Society registered under the Societies Registration Act, 1860. 2. Madhya Pradesh The National Institute of Design, Bhopal, a Society registered under the Societies Registration Act, 1860. 3. Assam The National Institute of Design, Jorhat, Assam, a Society registered under the Societies Registration Act, 1860. 4. Haryana The National Institute of Design, Kurukshetra, a Society registered under the Societies Registration Act, 1860. 5. Andhra Pradesh The National Institute of Design, Andhra Pradesh, a Society registered under the Societies Registration Act, 1860. 1. Ins. by Act 38 of 2019, s. 34 (w.e.f. 13-1-2020). 16 |Sl. No.|Name of the State|Name of the Society|Name of the institutions incorporated under this Act| |---|---|---|---| |(1)|(2)|(3)|(4)| |1.|Gujarat|The National Institute of Design, Ahmedabad, a Society registered under the Societies Registration Act, 1860.|National Institute of Design, Ahmedabad| |2.|Madhya Pradesh|The National Institute of Design, Bhopal, a Society registered under the Societies Registration Act, 1860.|National Institute of Design, Madhya Pradesh| |3.|Assam|The National Institute of Design, Jorhat, Assam, a Society registered under the Societies Registration Act, 1860.|National Institute of Design, Assam| |4.|Haryana|The National Institute of Design, Kurukshetra, a Society registered under the Societies Registration Act, 1860.|National Institute of Design, Haryana| |5.|Andhra Pradesh|The National Institute of Design, Andhra Pradesh, a Society registered under the Societies Registration Act, 1860.|National Institute of Design, Andhra Pradesh.]| -----

8-Dec-2014

30

The Indian Institutes of Information Technology Act, 2014

https://www.indiacode.nic.in/bitstream/123456789/2135/1/A2014_30.pdf

central

## THE INDIAN INSTITUTES OF INFORMATION TECHNOLOGY ACT, 2014 ––––––––––––––– ARRANGEMENT OF SECTIONS –––––––––––––––– CHAPTER I PRELIMINARY SECTIONS 1. Short title and commencement. 2. Declaration of certain institutions as institutions of national importance. 3. Definitions. CHAPTER II THE INSTITUTES 4. Incorporation of Institutes. 5. Effect of incorporation of Institutes. 6. Objects of Institute. 7. Powers and functions of Institute. 8. Institute to be open to all races, creeds and classes. 9. Teaching at Institute. 10. Institute to be a distinct legal entity not-for-profit. 11. Visitor. CHAPTER III AUTHORITIES OF CENTRALLY FUNDED INDIAN INSTITUTEOF INFORMATION TECHNOLOGY 12. Authorities of Institute. 13. Board of Governors. 14. Term of office of, vacancies among, and allowances payable to, members of Board. 15. Powers and functions of Board of Governors. 16. Senate. 17. Powers and functions of Senate. 18. Finance Committee. 19. Power and functions of Finance Committee. 20. Building and Works Committee. 21. Powers and functions of Building and Works Committee. 22. Research Council. 23. Meetings. 24. Director. 25. Registrar. 26. Other authorities and officers. 27. Review of performance of Institute. CHAPTER IV ACCOUNTS AND AUDIT 28. Grants by Central Government. 29. Fund of Institute. 30. Accounts and audit. 1 ----- SECTIONS 31. Pension and provident fund. 32. Appointments. 33. Statutes. 34. Statutes how to be made. 35. Ordinances. 36. Ordinances how to be made. 37. Tribunal of Arbitration. 38. Annual report of Director. 39. Annual report of each Institute. CHAPTER V THE COUNCIL 40. Council of Institutes. 41. Term of office and allowances payable to members of Council. 42. Function and duties of Council. 43. Power to make rules in respect of matters in this Chapter. CHAPTER VI MISCELLANEOUS 44. Acts and proceedings not to be invalidated by vacancies, etc. 45. Returns and information to be provided to Central Government. 46. Power of Central Government to issue directions. 47. Institute to be public authority under Right to Information Act. 48. Transitional provisions. 49. Power to remove difficulties. 50. Laying of rules and notification. THE SCHEDULE. 2 ----- ## THE INDIAN INSTITUTES OF INFORMATION TECHNOLOGY ACT, 2014 ACT NO. 30 OF 2014 [8[th] December, 2014.] ## An Act to declare certain institutions of information technology to be institutions of national importance, with a view to develop new knowledge in information technology and to provide manpower of global standards for the information technology industry and to provide for certain other matters connected with such institutions or incidental thereto. BE it enacted by Parliament in the Sixty-fifth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title and commencement.—(1) This Act may be called the Indian Institutes of Information** Technology Act, 2014. (2) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Declaration of certain institutions as institutions of national importance.—Whereas the objects** of the Institutes mentioned in the Schedule are such as to make them institutions of national importance, it is hereby declared that each such Institute is an institution of national importance. **3. Definitions.—In this Act, unless the context otherwise requires,—** (a) ―Board‖, in relation to any Institute, means the Board of Governors referred to in sub-section (1) of section 13; (b) ―Chairperson‖ means the Chairperson of the Board of Governors appointed under sub-section (2) of section 13; (c) ―Council‖ means the Council established under sub-section (1) of section 40; (d) ―Director‖ means the Director of the Institute; (e) ―existing Institute‖ means the institute mentioned in column (3) of the Schedule; (f) ―Institute‖ means any of the institutions mentioned in column (5) of the Schedule; (g) ―prescribed‖ means prescribed by rules made under this Act; (h) ―Schedule‖ means the Schedule to this Act; (i) ―Senate‖, in relation to any Institute, means the Senate thereof; (j) ―Statutes‖ and ―Ordinances‖, in relation to any Institute, means the Statutes and Ordinances of the Institute made under this Act. CHAPTER II THE INSTITUTES **4. Incorporation of Institutes.—(1) On and from the commencement of this Act, every existing** Institute, shall be a body corporate by the same name as mentioned in column (5) of the Schedule. (2) Every existing Institute referred to in column (5) of the Schedule shall have perpetual succession and a common seal, with power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to contract, and shall, by the said name, sue or be sued. 1. 5th January, 2015, vide notification No. S.O. 41(E), dated 5th January, 2015, see Gazette of India, Extraordinary, Part II,sec. 3(ii). 3 ----- **5. Effect of incorporation of Institutes.—On and from the commencement of this Act,—** (a) any reference to a Society in any contract or other instrument shall be deemed as a reference to the corresponding Institute mentioned in column (5) of the Schedule; (b) all properties, movable and immovable, of or belonging to every existing Institute shall vest in the corresponding Institute mentioned under column (5) of the Schedule; (c) all rights and debts and other liabilities of every existing Institute mentioned in column (3) of the Schedule shall be transferred to, and be the rights and liabilities of, the corresponding Institute mentioned in column (5) of the Schedule; (d) every person employed by every existing Institute mentioned in column (3) of the Schedule, immediately before such commencement shall hold his office or service in the corresponding Institute mentioned in column (5) of the Schedule, with the same tenure, at the same remuneration and upon the same terms and conditions and with the same rights and privileges as to pension, leave, gratuity, provident fund and other matters as he would have held the same if this Act had not been enacted and shall continue to do so unless and until his employment is terminated or until such tenure, remuneration and terms and conditions are duly altered by the Statutes: Provided that if the alteration so made is not acceptable to such employee, his employment may be terminated by the Institute in accordance with the terms of the contract with the employee or, if no provision is made therein in this behalf, on payment, to him by the Institute, of compensation equivalent to three months’ remuneration in case of permanent employees and one month’s remuneration in the case of other employees: Provided further that any reference, by whatever form of words, to the Director, Registrar and other officers of an existing Institute mentioned in column (3) of the Schedule, in any law for the time being in force, or in any instrument or other document, shall be construed as a reference to the Director, Registrar and other officers of the corresponding Institute mentioned in column (5) of the Schedule; (e) every person pursuing, before the commencement of this Act, any academic or research course in every existing Institute mentioned in column (3) of the Schedule, shall be deemed to have migrated and registered with the corresponding Institute mentioned in column (5) of the Schedule, on such commencement at the same level of course in the Institute from which such person migrated; (f) all suits and other legal proceedings instituted or which could have been instituted by or against an existing Institute, mentioned in column (3) of the Schedule, immediately before the commencement of this Act shall be continued or instituted by or against the corresponding Institute mentioned in column (5) of the Schedule. **6. Objects of Institute.—Each Institute shall have the following objects, namely:—** (a) to emerge amongst the foremost institutions in information technology and allied fields of knowledge; (b) to advance new knowledge and innovation in information technology and allied fields to empower the nation to the forefront in the global context; (c) to develop competent and capable youth imbued with the spirit of innovation and entrepreneurship with the social and environmental orientation to meet the knowledge needs of the country and provide global leadership in information technology and allied fields; (d) to promote and provide transparency of highest order in matters of admission, appointments to various positions, academic evaluation, administration and finance. **7. Powers and functions of Institute.—(1) Subject to the provisions of this Act, every Institute shall** exercise the following powers and perform the following functions, namely:— (a) to provide instruction in such fields of knowledge concerning information technology and allied areas as such Institute may think fit, for the advancement of learning and dissemination of knowledge; 4 ----- (b) to lead, organise and conduct research and innovation in information technology and allied fields of knowledge in such manner as the Institute may think fit, including in collaboration or in association with any other Institute, educational institution, research organisation or body corporate; (c) to hold examinations and grant degrees, diplomas and other academic distinctions or titles; and to confer honorary degrees; (d)to institute teaching, research or other academic positions, required by the Institute with such designations as it may deem fit, and to appoint persons on tenure, term or otherwise to such positions, other than the post of Director in accordance with the policy laid down by the Council; (e) to appoint persons working in any other Institute or educational institution or involved in research of significance in any industry as adjunct, guest or visiting faculty of the Institute on such terms and for such duration as the Institute may decide; (f) to create administrative and other posts and to make appointments thereto in accordance with the policy laid down by the Council; (g) to make provision for dissemination of knowledge emerging from research and for that purpose to enter into such arrangements, including consultancy and advisory services, with other institutions, industry, civil society or other organisations, as the Institute may deem necessary; (h) to create a website, highlight all information not restricted to those related to students, admission, fee, administrative structure, policies including recruitment rules, faculty and non-faculty posts, annual reports and financial details including statement of account of the Institute; (i) to determine, specify and receive payment of the charges, as the Institute may deem fit, from person, institution or body corporate for services, including training, consultancy and advisory services, provided by the Institute; (j) to deal with any property belonging to or vested in, the Institute in such manner as the Institute may deem fit for advancing the objects of the Institute: Provided that where the land for the Institute has been provided free of cost by a State Government, such land may be disposed of only with the prior approval of such State Government; (k) to receive gifts, grants, donations or benefactions from the Government and to receive bequests, donations and transfers of movable or immovable properties from testators, donors or transferors, as the case may be; (l) to co-operate with educational or other institutions in any part of the world having objects wholly or partly similar to those of the Institute by exchange of teachers and scholars and generally in such manner as may be conducive to their common objects; (m) to establish and maintain such infrastructure as may be necessary, incidental or conducive to the attainment of the objects of the Institute; (n) to institute and award fellowships, scholarships, exhibitions, prizes and medals; (o) to strive to meet the technological needs of the States and the Union territories by supporting technical educational institutions; and (p) to do all such things as may be necessary, incidental or conducive to the attainment of all or any of the objects of the Institute. (2) Notwithstanding anything contained in clause (j), an Institute shall not dispose of in any manner any immovable property, without the prior approval of the Visitor. **8. Institute to be open to all races, creeds and classes.—(1) Every Institute shall be open to all** persons irrespective of gender, caste, creed, disability, domicile, ethnicity, social or economic background. (2) No bequest, donation or transfer of any property shall be accepted by any Institute which in the opinion of the Council involves conditions or obligations opposed to the spirit and object of this section. 5 ----- (3) Admissions to every programme of study in each Institute shall be based on merit assessed through transparent and reasonable criteria disclosed through its prospectus, prior to the commencement of the process of admission by such Institute: Provided that every such Institute shall be a Central Educational Institution for the purposes of the Central Educational Institutions (Reservation in Admission) Act, 2006 (5 of 2007). **9. Teaching at Institute.—All teaching at each of the Institute shall be conducted by or in the name** of the Institute in accordance with the Statutes and Ordinances made in this behalf. **10. Institute to be a distinct legal entity not-for-profit.—Each Institute shall be a not-for-profit** legal entity and no part of the surplus, if any, in revenue of such Institute, after meeting all expenditure in regard to its operations under this Act, shall be invested for any purpose other than for the growth and development of such Institute or for conducting research therein. **11. Visitor.—(1) The President of India shall be the Visitor of every Institute.** (2) The Visitor may appoint one or more persons to review the work and progress of any Institute and to hold inquiries into the affairs thereof and to report thereon in such manner as the Visitor may direct. (3) Upon receipt of any such report, the Visitor may take such action and issue such directions as he considers necessary in respect of any of the matters dealt with in the report and the Institute shall be bound to comply with such directions within a reasonable time. CHAPTER III AUTHORITIES OF CENTRALLY FUNDED INDIAN INSTITUTEOF INFORMATION TECHNOLOGY **12. Authorities of Institute.—The following shall be the authorities of an Institute, namely:—** (a) Board of Governors; (b) Senate; (c) Finance Committee; (d) Building and Works Committee; (e) Research Council; (f) such other authorities as may be declared by the Statutes to be the authorities of the Institute. **13. Board of Governors.—(1) The Board of Governors of each Institute shall be the principal** executive body of that Institute. (2) The Board of Governors of each Institute shall consist of the following members, namely:— (a) a Chairperson, an eminent technologist or industrialist or educationist to be nominated by the Visitor from a panel of three names recommended by the Central Government; (b) Secretary incharge of Information Technology or Higher Education in the State in which the Institute is located, ex officio; (c) one representative of the Department of Higher Education, Government of India dealing with Indian Institute of Information Technology, ex officio; (d)one representative of the Ministry of Communication and Information Technology, Government of India, ex officio; (e) Director of Indian Institute of Technology to be nominated by the Central Government; (f) Director of Indian Institute of Management to be nominated by the Central Government; (g) four persons having special knowledge or practical experience in respect of information technology or engineering or science or allied areas to be nominated by the Council; (h) two Professors of the Institute nominated by the Senate; 6 ----- (i) Director of the Institute, ex officio; (j) the Registrar, ex officio Secretary. **14. Term of office of, vacancies among, and allowances payable to, members of Board.—(1)** Save as otherwise provided in this section, the term of office of member of the Board, other than the _ex_ _officio member, shall be three years from the date of nomination._ (2) The term of office of an ex officio member shall continue so long as he holds the office by virtue of which he is a member. (3) The term of office of a member nominated under clause (h) of sub-section (2) of section 13 shall be two years from the date of nomination. (4) A member of the Board, other than an _ex officio member, who fails to attend three consecutive_ meetings of the Board, shall cease to a member of the Board. (5) Notwithstanding anything contained in this section, an outgoing member shall, unless the Council directs, continue in office until another person is nominated as a member in his place. (6) Members of the Board shall be entitled to such allowances, as may be specified in the Statutes, for attending meetings of the Board or as may be convened by the Institute. **15. Powers and functions of Board of Governors.—(1) Subject to the provisions of this Act, the** Board of every Institute shall be responsible for the general superintendence, direction and control of the affairs of the Institute and shall have the power to frame, amend, modify or rescind the Statutes and Ordinances governing the affairs of the Institute to achieve the objects specified in section 6. (2) Without prejudice to the provisions of sub-section (1), the Board shall have the following powers, namely:— (a) to take decisions on questions of policy relating to the administration and working of the Institute; (b) to establish departments, faculties or schools of studies and initiate programmes or courses of study at the Institute; (c) to examine and approve the annual budget estimates of such Institute; (d) to examine and approve the plan for development of such Institute and to identify sources of finance for implementation of the plan; (e) to create teaching and other academic posts, to determine, by Statutes, the number and emoluments of such posts and to define the duties and conditions of service of teachers and other academic staff: Provided that the Board shall not take action otherwise than on consideration of the recommendations of the Senate; (f) to provide, by Statutes, the qualifications, criteria and processes for appointment to teaching and other posts in such Institute; (g) to fix fees, by the Statutes and other charges to be demanded for pursuit of studies in the Institute; (h) to make Statutes governing the administration, management and operations of such Institute; and (i) to exercise such other powers and perform such other duties as may be conferred or imposed upon it by this Act or Statutes. (3) The Board shall have the power to appoint such committees, as it considers necessary for the exercise of its powers and the performance of its duties under this Act. (4) The Board shall conduct an annual review of the performance of the Director with specific reference to his leadership in the context of the achievement of the objects of the Institute. 7 ----- (5) Where in the opinion of the Director or the Chairperson, the situation is so emergent that an immediate decision needs to be taken in the interest of the Institute, the Chairperson, in consultation with the Director may issue such orders as may be necessary, recording the grounds for his opinion: Provided that such orders shall be submitted for ratification of the Board in the next meeting. **16. Senate.—(1) The Senate of each Institute shall consist of the following persons, namely:—** (a) Director of the Institute, ex officio Chairperson; (b) Deputy Director, ex officio; (c) Deans, ex officio; (d) Heads of the Departments of the Institute, ex officio; (e) all Professors other than the Deans or Heads of the Departments; (f) three persons from amongst educationists of repute or persons from another field related to the activities of the Institute who are not in service of the Institute, nominated by the Board of Governors; (g) three persons who are not members of teaching staff co-opted by the Senate for their specialised knowledge; (h) Registrar of the Institute, ex officio Secretary. (2) The term of office of members other than ex officio member shall be two years from the date of nomination. (3) The term of office of an ex officio member shall continue so long as he holds the office by virtue of which he is a member. **17. Powers and functions of Senate.—(1) Subject to the provisions of this Act, the Senate shall be** the principal academic body of the Institute and shall have the power to enact, amend, modify Ordinances, governing academic matters and the affairs and well-being of students in the Institute. (2) Without prejudice to the provisions of sub-section (1), the Senate shall have the following powers, namely:— (a) to specify the criteria and process for admission to courses or programmes of study offered by the Institute; (b) to recommend to the Board creation of teaching and other academic posts, determination of the number and emoluments of such posts and defining the duties and conditions of service of teachers and other academic posts; (c) to recommend to the Board about commencement of new programmes or courses of study; (d) to specify the broad academic content of programmes and courses of study and undertake modifications therein; (e) to specify the academic calendar and approve grant of degrees, diplomas and other academic distinctions or titles; (f) to appoint examiners, moderators, tabulators and such other personnel for different examinations; (g) to recognise diplomas and degrees or Universities and other Institutes and to determine equivalence with the diplomas and degrees of the Institute; (h) to suggest measures for departmental co-ordination; (i) to make major recommendations to the Board of Governors on— (a) measures for improvement of standard of teaching, training and research; (b) institution of chairs, fellowships, scholarships, studentships, free-ships, medals and prizes and other related matters; 8 ----- (c) establishment or abolition of departments or centres; and (d) bye-laws covering the academic functioning of the institute, discipline, residence, admissions, examinations, award of fellowships and studentships, free-ships concessions, attendance and other related matters; (j) to appoint sub-committees to advise on such specific matters as may be referred to by the Board of Governors or by itself; (k) to consider the recommendations of the sub-committees and to take such action including making of recommendations to the Board of Governors as may be required; (l) to take periodical review of the activities of the Departments or Centres and to take appropriate action including making of recommendations to the Board of Governors with a view to maintain and improve the standards of instructions, in the institutions; and (m) to exercise such other powers and discharge such other functions as may be assigned to it, by Statutes or otherwise, by the Board. **18.Finance Committee.—(1)The Finance Committee of each Institute shall consist of the following** persons, namely:— (a) the Chairperson, Board of Governors, _ex officio, who shall be the Chairperson of the_ Committee; (b) one representative of the Government of India, Ministry of Human Resource Development, Department of Higher Education handling the matters relating to Indian Institute of Information Technology, ex officio; (c) one representative of the Government of India, Ministry of Human Resource Development, Department of Higher Education handling the matters relating to finance, ex officio; (d) two persons nominated by the Board; (e) the Director, ex officio; (f) the Officer incharge of Finance and Accounts of the Institute, ex officio Secretary. (2) The members of the Finance Committee other than ex officio members shall hold office for a term of three years. **19. Powers and functions of Finance Committee.—The Finance Committee shall examine the** accounts, scrutinise proposals for expenditure and financial estimates of the Institute and thereafter submit it to the Board of Governors together with its comments for approval. **20. Building and Works Committee.—The Building and Works Committee of each Institute shall** consist of the following persons, namely:— (a) the Director, ex officio, who shall be the Chairperson of the Committee; (b) one person nominated by Indian Institute of Technology located in the State in which the Institute is situated; (c) one person nominated by the Board from amongst its members; (d) Dean, Planning and Development; (e) a civil engineer not below the rank of superintending engineer in the Government or Government Agency nominated by the Board; (f) an electrical engineer not below the rank of superintending engineer in the Government or Government Agency nominated by the Board; (g) the officer incharge of Estate of the Institute, ex officio Secretary. 9 ----- **21. Powers and functions of Building and Works Committee.—The Building and Works** Committee shall discharge the following powers and functions, namely:— (a) it shall be the responsibility of the Committee for construction of all major capital works after securing from the Board the necessary administrative approval and financial sanction; (b) it shall have the power to give the necessary administrative approval and financial sanction for all construction work and work pertaining to maintenance and repairs, within the grant place at the disposal of the Institute for the purpose; (c) it shall cause to be prepared estimates of cost of building and other capital work, minor works, repair, maintenance and the like; (d) it shall be responsible for making technical scrutiny of each work as may be considered necessary by it; (e) it shall be responsible for enlistment of suitable contractors and acceptance of tenders and shall have the power to give direction for departmental works where necessary. **22. Research Council.—(1) Each Institute shall establish a Research Council comprising of the** Director and such other members as may be specified, by Statutes, by the Board. (2) The Research Council of each Institute shall— (a) interface with research funding organisations, industry and civil society to identify potential areas for research; (b) to organise and promote research in such Institute or in collaboration with any institution of higher learning or research laboratories; (c) assist teachers in obtaining funding from external sources for research projects prepared by them; (d) provide, out of the funds placed at its disposal by the Board, research resources and grant assistance for research projects proposed to be undertaken by teachers in such Institute; (e) provide for incubation of technology applications emerging from research and to protect and utilise the intellectual property obtained from research in the Institutes; (f) make provision for research and advisory services and for that purpose enter into such arrangements with other institutions, industry, civil society or other organisations and enable the fruits of research to be disseminated to industry and society through such arrangements; (g) exercise such other powers and perform such other duties as may be assigned to it by Statutes. **23. Meetings.—(1) The Chairperson shall ordinarily preside over the meetings of the Board, Finance** Committee and at the convocations of the Institute. (2) It shall be the duty of the Chairperson to ensure that the decisions taken by the Board are implemented. (3) The Chairperson shall exercise such other powers and perform such other duties as may be assigned to him by this Act or the Statutes. **24. Director.—(1) The Director of a Institute shall be appointed by the Central Government from a** panel of names recommended in order of merit by a search-cum-selection committee with prior approval of the Visitor. (2) The search-cum-selection committee shall consist of the following, namely:— (a) an eminent person to be nominated by the Minister in charge of Human Resource Development in the Government of India as Chairperson of the Committee; (b) the Chairperson, Board of Governors of the concerned Indian Institutes of Information Technology – Member, ex officio; (c) Secretary incharge of Higher Education in the Government of India – Member, ex officio; (d) Director of a Indian Institutes of Information Technology to be nominated by Minister 10 ----- incharge of Human Resource Development – Member, ex officio; (e) a person of eminence in the field of information technology to be nominated by Minister incharge of Human Resource Development; (f) Head of Bureau, Ministry of Human Resource Development dealing with Indian Institutes of Information Technology – non-member Secretary, ex officio. (3) The Director shall be appointed on such terms and conditions of service as may be provided by the Statutes. (4) The Director shall be the principal academic and executive officer of the Institute and shall be responsible for the implementation of the decisions of the Board and Senate and day-to-day administration of the Institute. (5) The Director shall exercise such other powers and perform such other duties as may be assigned to him by this Act or the Statutes or delegated by the Board or the Senate or the Ordinances. (6) The Director shall submit annual reports and audited accounts to the Board. (7) The Director may during his absence from the headquarters, authorise the Deputy Director or one of the Deans or the senior most Professor present, to sanction advances for travelling allowances, contingencies and medical treatment of the staff and sign and countersign bills on his behalf and authorise to the Deputy Director or one of the Dean or the senior most Professor present, by him in writing. **25. Registrar.—(1) The Registrar of every Institute shall be appointed on such terms and conditions** as may be laid down by the Statutes and shall be the custodian of records, the common seal, the funds of the Institute and such other property of the Institute as the Board shall commit to his charge. (2) The Registrar shall act as the Secretary of the Board, Senate and such committees as may be prescribed by the Statutes. (3) The Registrar shall be responsible to the Director for the proper discharge of his functions. (4) The Registrar shall exercise such other powers and perform such other duties as may be assigned to him by this Act or the Statutes or by the Director. **26. Other authorities and officers.—(1) The Board may, by Statutes, declare such other posts as** authorities of the Institute and specify the duties and function of each such authority. (2) The Board may constitute such authorities as it may deem fit for proper management of affairs of the Institute. **27. Review of performance of Institute.—(1) Each Institute shall, within five years from the** establishment and incorporation of Institute under this Act and thereafter at the expiration of every fifth year, constitute, with the prior approval of the Central Government, a Committee to evaluate and review the performance of the Institute in achievement of its objects in the said period. (2) The Committee under sub-section (1) shall consist of members of acknowledged repute in academia or industry, drawn from such fields of knowledge as may have relevance to teaching, learning and research in such Institute. (3) The Committee shall assess the performance of Institute and make recommendations on— (a) the extent of fulfilment of the objects of the Institute referred to in section 6, as demonstrated by the state of teaching, learning and research and its contribution to society; (b) the promotion of transformational research and its impact on industry and society; (c) the advancement of fundamental research beyond the current frontiers of knowledge; (d) the establishment of the Institute as amongst the global leaders in the area of information technology; (e) such other matters as the Board may specify. 11 ----- (4) The Board shall consider the recommendations referred to in sub-section (3) and take such action on it as it may deem fit: Provided that the recommendations of the Committee along with an explanatory memorandum on the action taken or proposed to be taken, specifying the reasons thereof, shall be submitted to the Central Government. CHAPTER IV ACCOUNTS AND AUDIT **28. Grants by Central Government.—(1) For the purposes of enabling the Institutes to discharge** their functions efficiently under this Act, the Central Government may, after due appropriation made by Parliament by law in this behalf, pay to each Institute in every financial year such sums of money in such manner as it may think fit. (2) The Central Government shall provide to each Institute, grants of such sums of money as are required to meet the expenditure on scholarships or fellowships instituted by it, including scholarships or fellowships for students from socially and educationally backward classes of citizens enrolled in such Institute. **29. Fund of Institute.—(1) Every Institute shall maintain a fund to which shall be credited—** (a) all monies provided by the Central Government or State Government, as the case may be; (b) all fees and other charges received by the Institute from students; (c) all monies received by the Institute by way of grants, gifts, donations, benefactions, bequests or transfers; (d) all monies received by the Institute from utilisation of intellectual property arising from research conducted or provision of advisory or consultancy services by it; and (e) all monies received by the Institute in any other manner or from any other source. (2) The fund of every Institute shall be applied towards meeting the expenses of the Institute, including expenses incurred in the exercise of its powers and discharge of its duties under this Act, furtherance of research in the Institute or in collaboration with other educational institutions or industry and for capital investment aimed at the growth and development of the Institute. **30. Accounts and audit.—(1) Every Institute shall maintain proper accounts and other relevant** records and prepare annual statement of accounts including the balance sheet in such form and accounting standard as may be specified by notification, by the Central Government in consultation with the Comptroller and Auditor-General of India. (2) Where the statement of income and expenditure and the balance sheet of the Institute do not comply with the accounting standards, the Institute shall disclose in its statement of income and expenditure and balance sheet, the following, namely:— (a) the deviation from the accounting standards; (b) the reasons for such deviation; and (c) the financial effect, if any, arising out due to such deviation. (3) The accounts of every Institute shall be audited by the Comptroller and Auditor-General of India and any expenditure incurred by audit team in connection with such audit shall be payable by the Institute to the Comptroller and Auditor-General of India. (4) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of any Institute shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General of India has in connection with the audit of the Government accounts and, in particular, shall have the rights to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect the offices of the Institute. 12 ----- (5) The accounts of every Institute as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament in accordance with such procedure as may be laid down by the Central Government. **31. Pension and provident fund.—(1) Every Institute may constitute for the benefit of its employees** such provident or pension fund or provide such insurance scheme as it may deem fit in such manner and subject to such conditions as may be prescribed by the Statutes. (2) Where such provident fund or pension fund has been so constituted, the Central Government may declare that the provisions of the Provident Funds Act, 1925 (19 of 1925), shall apply to such fund, as if it were a Government Provident Fund. **32. Appointments.—All appointments of the staff of every Institute, except that of the Director, shall** be made in accordance with the procedure laid down in the Statutes, by— (a) the Board, if the appointment is made on the academic staff in the post of Assistant Professor or if the appointment is made on the non-academic staff in every cadre the maximum of the pay scale for which exceeds prevalent grade pay scale for Group A Officers; (b) the Director, in any other case. **33. Statutes.—Subject to the provisions of this Act, the Statutes may provide for all or any of the** following matters, namely:— (a) the conferment of honorary degree; (b) the formation of departments of teaching; (c) the fees to be charged for courses of study in the Institute and for admission to the examinations of degrees and diplomas of the Institute; (d) the institution of fellowships, scholarships, exhibitions, medals and prizes; (e) the terms of office and the method of appointment of officers of the Institute; (f) the qualifications of teachers of the Institute; (g) the classification, the method of appointment and the determination of the termsand conditions of service of teachers and other staff of the Institute; (h) the constitution of pension, insurance and provident funds for the benefit of the officers, teachers and other staff of the Institute; (i) the constitution, powers and duties of the authorities of the Institute; (j) the establishment and maintenance of halls and hostels; (k) the conditions of residence of students of the Institute and the levying of fees for residence in the halls and hostels and of other charges; (l) the allowances to be paid to the Chairperson and members of the Board; (m) the authentication of the orders and decisions of the Board; and (n) the meetings of the Board, the Senate, or any Committee, the quorum at such meetings and the procedure to be followed in the conduct of their business. **34. Statutes how to be made.—(1) The first Statutes of each Institute shall be made by the Board** with the prior approval of the Visitor and a copy of the same shall be laid as soon as may be before each House of Parliament. (2) The Board may, from time to time, make new or additional Statutes or may amend or repeal the Statutes in the manner provided in this section. 13 ----- (3) Every new Statutes or addition to the Statutes or any amendment or repeal of Statutes shall require the prior approval of the Visitor who may grant assent or withhold assent or remit it to the Board for consideration. (4) New Statutes or a Statute amending or repealing an existing Statute shall have no validity unless it has been assented to by the Visitor: Provided that the Central Government with the prior approval of the Visitor may make or amend the Statutes for the Institute, if the same is required for uniformity, and a copy of the same shall be laid as soon as may be before each House of the Parliament. **35. Ordinances.—Subject to the provisions of this Act and the Statutes, the Ordinances of every** Institute may provide for all or any of the following matters, namely:— (a) the admission of the students to the Institute; (b) the courses of study to be laid down for all degrees and diplomas of the Institute; (c) the conditions under which students shall be admitted to the degree or diploma courses and to the examinations of the Institute, and shall be eligible for degrees and diplomas; (d) the conditions of award of the fellowships, scholarships, exhibitions, medals and prizes; (e) the conditions and mode of appointment and duties of examining bodies, examiners and moderators; (f) the conduct of examinations; (g) the maintenance of discipline among the students of the Institute; and (h) any other matter which by this Act or the Statutes is to be or may be provided for by the Ordinances. **36. Ordinances how to be made.—(1) Save as otherwise provided in this section, Ordinances shall** be made by the Senate. (2) All Ordinances made by the Senate shall have effect from such date as it may direct, but every Ordinance so made shall be submitted, as soon as may be, to the Board and shall be considered by the Board at its next meeting. (3) The Board shall have power by resolution to modify or cancel any such Ordinance and such Ordinance shall from the date of such resolution stand modified accordingly or cancelled, as the case may be. **37. Tribunal of Arbitration.—(1) (a) Any dispute arising out of a contract between a Institute and** any of its employees shall, at the request of the employee concerned or at the instance of the Institute, be referred to a Tribunal of Arbitration consisting of one member appointed by the Institute, one member nominated by the employee, and an umpire appointed by the Visitor. (b) The decision of the Tribunal shall be final and shall not be questioned in any court. (c) No suit or proceeding shall lie in any court in respect of any matter, which is required by sub section (1) to be referred to the Tribunal of Arbitration. (d) The Tribunal of Arbitration shall have power to regulate its own procedure: Provided that the Tribunal shall have regard to the principles of natural justice while making such procedure. (e) Nothing in any law for the time being in force relating to arbitration shall apply to arbitrations under this section. (2) Any student or candidate for an examination whose name has been removed from the rolls of the Institute by the orders or resolution of the Director of the Institute and who has been debarred from the appearing at the examinations of the Institute for more than one year, may within ten days of the date of 14 ----- receipt of such resolution by him, appeal to the Board of Governors who may confirm, modify or reverse the decision of the Director. (3) Any dispute arising out of any disciplinary action taken by the Institute against a student shall, at the request of such student, be referred to a Tribunal of Arbitration and the provisions of sub-section (1) shall, as far as may be, apply to a reference made under this sub-section. (4) Every employee or student of the Institute, notwithstanding anything contained in this Act, have a right to appeal within such time as may be prescribed by the Statutes, to the Board of Governors against the decision of any officer or authority of the Institute as the case may be and thereupon the Board of Governors may confirm, modify or reverse the decision appealed against. **38. Annual report of Director.—(1) There shall be attached to every statement of accounts laid** before the Board of each Institute, a report by its Director, with respect to— (a) the state of affairs of such Institute; (b) the amounts, if any, which it proposes to carry to any surplus reserves in its balance sheet; (c) the extent to which understatement or overstatement of any surplus of income over expenditure or any shortfall of expenditure over income has been indicated in the auditor’s report and the reasons for such understatement or overstatement; (d) the productivity of research projects undertaken by the Institute measured in accordance with such norms as may be specified by any statutory regulatory authority; (e) appointments of the officers and teachers of the Institute; (f) benchmark and internal standards set by the Institute, including the nature of innovations in teaching, research and application of knowledge. (2) The Director shall also be bound to give the complete information and explanations in its report aforesaid on every reservation, qualification or adverse remark contained in the auditors’ report. **39. Annual report of each Institute.—(1) The annual report of each Institute shall be prepared under** the direction of the Board, which shall include, among other matters, the steps taken by the Institute towards the fulfilment of its objects and an outcome based assessment of the research being undertaken in such Institute, and be submitted to the Board on or before such date as may be specified and the Board shall consider the report in its annual meeting. (2) The annual report on its approval by the Board shall be published on the website of the Institute. (3) The annual report of each Institute shall be submitted to the Central Government who shall, as soon as may be, cause the same to be laid before both Houses of Parliament. CHAPTER V THE COUNCIL **40. Council of Institutes.—(1) In order that there may be better coordination between the Institutes,** the Central Government may, by notification in the Official Gazette, establish, with effect from such date as may be specified in the notification, there shall be established for all the Institutes specified in column (5) of the Schedule, a central body to be called the Council. (2) The Council shall consist of the following, namely:— (i) the Minister of the Central Government in charge of technical education, who shall be the Chairperson of the Council, ex officio; (ii) two members of Parliament of India (one member to be nominated by Speaker of Lok Sabha and one member to be nominated by Chairperson of Rajya Sabha), ex officio; (iii) Secretary, Government of India, Ministry of Human Resource Development, Department of Higher Education; (iv) the Chairpersons of each of the Institutes, ex officio; 15 ----- (v) the Directors of each of the Institutes, ex officio; (vi) the Director-General, Council of Scientific and Industrial Research, ex officio; (vii) three persons to be nominated by the Central Government, one each to represent the Ministry concerned with Finance, Science and Technology and Information Technology; (viii) three persons to be nominated by Visitor, who shall be persons having special knowledge or practical experience in respect of industry, academia, engineering, alumni and social sciences to be nominated by the Council from a panel comprised of two names recommended by each Institute; (ix) one representative of University Grants Commission; (x) one representative of All India Council of Technical Education; and (xi) Chairperson, Central Board of Secondary Education. (3) An officer of the Department of Higher Education, Government of India, concerned with technical education shall be nominated by that Government to act as the Secretary of the Council. (4) The Council may, at its discretion, constitute a Standing Committee of the Indian Institute of Information Technology Council to assist the Council in discharge of its duties and responsibilities. (5) The expenditure on the Council shall be met by the Central Government. **41. Term of office and allowances payable to members of Council.—(1) Save as otherwise** provided in this section, the term of office of a member of the Council, other than an _ex officio member,_ shall be for a period of three years from the date of nomination. (2) The term of office of an ex officio member shall continue so long as he holds the office by virtue of which he is a member. (3) The term of office of a member [1][nominated] under clause (ii) of sub-section (2) of section 40 shall expire as soon as he ceases to be a member of the House which [1][nominated] him. (4) Notwithstanding anything contained in this section, an outgoing member shall, unless the Council directs, continue in office until another person is nominated as a member in his place. (5) Members of the Council shall be entitled to travelling and such other allowances, as may be prescribed, for attending meetings of the Council or its Committees thereof. **42. Functions and duties of Council.—(1) The Council shall work to coordinate the activities of all** the Institutes. (2) Without prejudice to the provisions of sub-section (1), the Council shall perform the following functions, namely:— (a) to advise on matters relating to the duration of the courses, the degrees and other academic distinctions to be conferred by the Institutes, admission standards and other academic matters; (b) to lay down policy regarding cadres, methods of recruitment and conditions of service of employees, institution of scholarships and free-ships, levying of fees and other matters of common interest; (c) to examine the development plans of each Institute and to approve such of them as are considered necessary and also to indicate broadly the financial implications of such approved plans; (d) to examine the annual budget estimates of each Institute and to recommend to the Central Government the allocation of funds for that purpose; (e) to recommend to the Central Government, the institution of scholarships including research and for the benefit of students belonging to the Scheduled Castes, the Scheduled Tribes and Other Backward Classes of citizens; 1. Subs. by Act 28 of 2020, s. 2, for the word ―elected‖ (w.e.f. 10-10-2020). 16 ----- (f) to recommend to the Central Government, proposals for establishment of new Institutes of Information Technology; (g) to advise the Visitor, if so required, in respect of any function to be performed by him under this Act; and (h) to perform such other functions as may be referred to it by the Central Government: Provided that nothing in this section shall derogate the powers and functions vested by law in the Board or Senate or other authorities of each Institute. (3) The Chairperson of the Council shall ordinarily preside at the meetings of the Council and in his or her absence, any other member, chosen by the Members present from amongst themselves at the meeting, shall preside at the meeting. (4) The Council shall meet once in every year and follow such procedure in its meetings as may be prescribed. **43. Power to make rules in respect of matters in this Chapter.—(1) The Central Government may,** after previous publication, by notification, make rules to carry out the purposes of this Chapter. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the travelling and other allowances payable to members of the Council under sub-section (5) of section 41; (b) the procedure to be followed in the meetings of the Council under sub-section (4) of section 42. CHAPTER VI MISCELLANEOUS **44. Acts and proceedings not to be invalidated by vacancies, etc.—No act of the Council, or any** Institute, Board or Senate or any other body set-up under this Act or the Statutes, shall be invalid merely by reason of— (a) any vacancy in or defect in the constitution thereof; (b) any irregularity in its procedure not affecting the merits of the case; (c) any defect in the selection, nomination or appointment of a person acting as a member thereof. **45. Returns and information to be provided to Central Government.—Every Institute shall** furnish to the Central Government such returns or other information with respect to its policies or activities as the Central Government may, for the purpose of reporting to Parliament or for the making of policy, from time to time require. **46. Power of Central Government to issue directions.—The Institute shall carry out such directions** as may be issued to it from time to time by the Central Government for the efficient administration of this Act. **47. Institute to be public authority under Right to Information Act.—The provisions of the Right** to Information Act, 2005 (22 of 2005) shall apply to each Institute, defined in clause (h) of section 2 of the Right to Information Act, 2005. **48. Transitional provisions.—(1) Notwithstanding anything contained in this Act—** (a) the Board of Governors of an Institute functioning as such immediately before the commencement of this Act shall continue to so function until a new Board is constituted for that Institute under this Act, but on the constitution of a new Board under this Act, the members of the Board holding office before the commencement of this Act shall cease to hold office; (b) every Senate constituted in relation to every Institute before the commencement of this Act shall be deemed to be the Senate constituted under this Act until a Senate is constituted under this Act 17 ----- for the Institute, but on the constitution of the new Senate under this Act, the members of the Senate holding office before the commencement of this Act shall cease to hold office; (c) the Statutes, Ordinances, rules, regulations and bye-laws of each existing Institute as in force, immediately before the commencement of this Act, shall continue to apply to the corresponding institute in so far as they are not inconsistent with the provisions of this Act until the first Statutes and the Ordinances are made under this Act; (d) any student who joined classes of the existing Institute on or after the academic year 2007-2008 or completed the course on or after the academic year 2010-2011 shall for the purpose of clause (c) of sub-section (1) of section 7, be deemed to have pursued a course of study in the existing Institute located at Kancheepuram only if such student has not already been awarded degree or diploma for the same course of study. (2) The Central Government may, without prejudice to the provisions of sub-section (1), if it considers necessary and expedient to do so, by notification, take such measures which may be necessary for the transfer of the existing Institute mentioned in column (3) of the Schedule to the corresponding Institute mentioned under column (5) of the Schedule. **49. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act the Central Government, may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act, as may appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made after the expiry of the period of three years from the date of commencement of this Act. (2) Every order made under this section shall, as soon as may be, after it is made, be laid before each House of Parliament. **50. Laying of rules and notification.—Every rule made and every notification issued by the Central** Government under this Act, shall be laid, as soon as may be after it is made or issued, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or notification or both Houses agree that the rule or notification should not be made or issued, the rule or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification. 18 ----- Sl. No. Name of the State THESCHEDULE [See section 4(1)] Name of the existing Institute Location Name of the Institute under this Act (1) (2) (3) (4) (5) 1. Uttar Pradesh Indian Institute of Information Technology, Allahabad 2. Madhya Pradesh Indian Institute of Information Technology, Gwalior 3. Madhya Pradesh Indian Institute of Information Technology, Design and Manufacturing 4. Tamil Nadu Indian Institute of Information Technology, Design and Manufacturing 19 Allahabad Indian Institute of Information Technology, Allahabad. Gwalior Atal Bihari Vajpayee Indian Institute of Information Technology and Management, Gwalior. Jabalpur Pandit Dwarka Prasad Mishra Indian Institute of Information Technology, Design and Manufacturing, Jabalpur. Kancheepuram Indian Institute of Information Technology, Design and Manufacturing, Kancheepuram. -----

18-Dec-2014

37

The School of Planning and Architecture Act, 2014

https://www.indiacode.nic.in/bitstream/123456789/2138/1/201437.pdf

central

# THE SCHOOL OF PLANNING AND ARCHITECTURE ACT, 2014 _______________ # ARRANGEMENT OF SECTIONS _______________ CHAPTER I PRELIMINARY SECTIONS 1. Short title and commencement. 2. Declaration of certain Schools as Institutions of national importance. 3. Definitions. CHAPTER II THE SCHOOL 4. Establishment and incorporation of Schools. 5. Objects of School. 6. Effects of incorporation of Schools. 7. Powers and functions of Schools. 8. Schools to be open to all races, creeds and classes. 9. Teaching at Schools. 10. School to be a distinct legal entity not-for-profit. 11. Visitor. CHAPTER III THE AUTHORITIES OF SCHOOLS 12. Authorities of Schools. 13. Board of Governors. 14. Term of office of vacancies among, and allowances payable to, Members of Board. 15. Powers and functions of Board. 16. Senate. 17. Functions of Senate. 18. Chairperson of Board. 19. Director. 20. Registrar. 21. Other authorities and officers. 22. Review of performance of School. 23. Grants by Central Government. CHAPTER IV ACCOUNTS AND AUDIT 24. Fund of School. 25. Accounts and audit. 26. Pension and provident fund. 27. Appointments. 28. Statutes. 29. Statutes how made. 30. Ordinances. 31. Ordinances how made. 1 ----- SECTIONS 32. Tribunal of Arbitration. CHAPTER V THE COUNCIL 33. Establishment of Council for Schools. 34. Term of office of vacancies among, and allowances payable to, Members of Council. 35. Functions of Council. 36. Chairperson of Council. 37. Power to make rules in respect of matters in this Chapter. CHAPTER VI MISCELLANEOUS 38. Acts and proceedings not to be invalidated by vacancies, etc. 39. Returns and information to be provided to Central Government. 40. Power to remove difficulties. 41. School to be public authority under Right to Information, Act, 2005. 42. Transitional provisions. THE SCHEDULE. 2 ----- # THE SCHOOL OF PLANNING AND ARCHITECTURE ACT, 2014 ACT NO. 37 OF 2014 [18th December, 2014.] # An Act to establish and declare Schools of Planning and Architecture as Institutions of national importance in order to promote education and research in architectural studies including planning of human settlements. BE it enacted by Parliament in the Sixty-fifth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title and commencement.—(1) This Act may be called the School of Planning and** Architecture Act, 2014. (2) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act, and any reference to the commencement in any such provision of this Act shall be construed as a reference to the commencement of that provision. **2. Declaration of certain Schools as Institutions of national importance.—Whereas the objects** of the Schools mentioned in the Schedule are such as to make them Institutions of national importance, it is hereby declared that each such School is an Institution of national importance. **3. Definitions.—In this Act, unless the context otherwise requires,—** (a) “Board”, in relation to any School, means the Board of Governors thereof; (b) “Chairperson” means the Chairperson of the Board; (c) “Corresponding School”, in relation to a School mentioned in column (3) of the Schedule, means the School as specified against the said School in column (5) of the Schedule; (d) “Council” means the Council established under sub-section (1) of section 33; (e) “Director”, in relation to any School, means the Director thereof; (f) “existing School” means the School mentioned under column (3) of the Schedule; (g) “Member” means a Member of the Board and includes the Chairperson; (h) “notification” means a notification published in the Official Gazette and the expression “notify” with its grammatical variations and cognate expressions shall be construed accordingly; (i) “prescribed” means prescribed by rules made under this Act; (j) “Registrar”, in relation to any School, means the Registrar thereof; (k) “Schedule” means the Schedule annexed to this Act; (l) “School” means any of the Schools mentioned in column (5) of the Schedule and such other Schools established under this Act; (m) “Senate”, in relation to any School, means the Senate thereof; (n) “Society” means any of the societies registered under the Societies Registration Act, 1860 (21 of 1860) or under the societies of respective State Governments and mentioned in column (3) of the Schedule; (o) “Statutes” and “Ordinances”, in relation to any School, means the Statutes and Ordinances of that School made under this Act. 1. 22nd January, 2015, _vide notification No. S.O. 212(E), dated 22nd January, 2015,_ _see_ Gazette of India, Extraordinary, Part II, sec. 3(ii). 3 ----- CHAPTER II THE SCHOOLS **4. Establishment and incorporation of Schools.—On and from the date of commencement of** this Act, the Schools specified in column (3) of the Schedule, shall be the body corporates having perpetual succession and a common seal with the power subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable and to contract and shall by their respective names mentioned in column (5) of the Schedule, sue or be sued. **5. Objects of Schools.—Each School shall have the following objects, namely:—** (i) to support the establishment and development of Schools of Planning and Architecture; (ii) to provide global leadership in the field of architecture, planning and allied fields. **6. Effect of incorporation of Schools.—On and from the commencement of this Act,—** (a) any reference to any existing School in any contract or other instrument shall be deemed as a reference to the corresponding School; (b) all properties, movable and immovable, of or belonging to every existing School shall vest in the corresponding School mentioned under column (5) of the Schedule; (c) all the rights, debts and other liabilities of every existing School shall be transferred to, and be the rights and liabilities of, the corresponding School; (d) every person employed by every existing School shall hold his office or service in the corresponding School with the same tenure, at the same remuneration and upon the same terms and conditions and with the same rights and privileges as to pension, leave, gratuity, provident fund and other matters as he would have held if this Act had not been enacted and shall continue to do so unless and until his employment is terminated or until such tenure, remuneration and terms and conditions are duly altered by the Statutes: Provided that if the alteration so made is not acceptable to such employee, his employment may be terminated by the School in accordance with the terms of the contract with the employee or, if no provision is made therein in this behalf, on payment, to him by the School, of compensation equivalent to three months‟ remuneration in case of permanent employees and one month‟s remuneration in the case of other employees: Provided further that any reference, by whatever form of words, to the Director, Registrar and other officers of an existing School in any law for the time being in force, or in any instrument or other document, shall be construed as a reference to the Director, Registrar and other officers of the corresponding School; (e) every person pursuing, before the commencement of this Act, any academic or research course in every existing School, shall be deemed to have migrated and registered with the corresponding School on such commencement at the same level of study in the School from which such person migrated; (f) all suits and other legal proceedings instituted or which could have been instituted by or against an existing School, immediately before the commencement of this Act shall be continued or instituted by or against the corresponding School. **7. Powers and functions of Schools.—(1) Subject to the provisions of this Act, every School** shall exercise the powers and perform the duties as specified below, namely:— (a) to organise and undertake research and innovations in architecture, planning, design and allied activities in such manner as the School may think fit, including in collaboration or association with any other School, educational institution, research organisation or body corporate; (b) to hold examinations and grant degrees, diplomas, certificates and other degrees; 4 ----- (c) to institute fellowships, Scholarships and confer awards, honorary degrees or other academic distinctions or titles; (d) to fix, demand and receive fees and other charges; (e) to establish, maintain and manage halls and hostels for the residence of students; (f) to supervise and control the residence and regulate the discipline of students of the School and to make arrangements for promoting their health, general welfare and culture and corporate life; (g) to notify academic and other posts with the prior approval of the Central Government and to make appointment thereto excluding the post of Director; (h) to appoint persons working in any other School or educational institution or involved in research of significance in any industry as adjunct, guest or visiting teachers of the School on such terms and for such duration as the School may decide; (i) to frame Statutes and Ordinances and to alter, modify or rescind the same; (j) to establish and maintain such infrastructure as may be necessary; (k) to deal with any property belonging to or vested in the School in such manner as the School may deem fit for advancing the objects of the School; (l) to manage the fund of the School and receive gifts, grants, donations or benefactions from the Government and to receive bequests, donations and transfers of movable or immovable properties from testators or donors or transferors, as the case may be; (m) to co-operate with educational or other institutions in any part of the world having objects wholly or partly similar to those of the School by exchange of teachers, students and scholars and generally in such manner as may be conducive to their common objects on such terms as may be specified from time to time by the Senate; (n) to undertake consultancy in the areas or disciplines relating to the School for promotion of its common objectives; and (o) to do all such things as may be necessary, incidental or conducive to the attainment of all or any of the objects of the School. (2) Notwithstanding anything contained in sub-section (1), a School shall not dispose of in any manner any immovable property without the prior approval of the Central Government. **8. Schools to be open to all races, creeds and classes.—(1) Every School shall be open to** persons of either sex and of whatever race, creed, caste or class, religion, disability, domicile, ethnicity, social or economic background. (2) No bequest, donation or transfer of any property shall be accepted by any School, which in the opinion of the Council involves conditions or obligations opposed to the spirit and object of this section. **9. Teaching at Schools.—All teaching at each of the Schools shall be conducted by or in the** name of the School in accordance with the Statutes and Ordinances made in this behalf. **10. School to be a distinct legal entity not-for-profit.—Each School shall be a not-for-profit** legal entity and no part of the surplus, if any, in revenue of such School, after meeting all expenditure in regard to its operations under this Act, shall be invested for any purpose other than for the growth and development of such School or for conducting research therein. **11. Visitor.—(1) The President of India shall be the Visitor of every School.** (2) The Visitor may appoint one or more persons to review the work and progress of any School and to hold inquiries into the affairs thereof and to report thereon in such manner as the Visitor may direct. 5 ----- (3) Upon receipt of any such report, the Visitor may take such action and issue such directions as he considers necessary in respect of any of the matters dealt with in the report and the School shall be bound to comply with such directions within reasonable time. CHAPTER III THE AUTHORITIES OF SCHOOLS **12. Authorities of Schools.—The following shall be the authorities of a School, namely:—** (a) a Board of Governors; (b) a Senate; and (c) such other authorities as may be declared by the Statutes to be the authorities of the School. **13. Board of Governors.—(1) The Board of each School shall be the principal executive body of** that School. (2) The Board of every School shall consist of the following Members, namely:— (a) Chairperson to be appointed by the Visitor from among a panel of three names recommended by the Central Government who shall be an eminent Architect or Planner; (b) Principal Secretary or Secretary, Technical Education or Higher Education of the respective State Government or Union territory in which the School is situated; (c) one representative from the Institute of Town Planners, India to be nominated by the President of the Institute of Town Planners, India; (d) one representative from the Council of Architecture to be nominated by the President of the Council of Architecture; (e) a representative from the All India Council for Technical Education to be nominated by the Chairman of All India Council of Technical Education; (f) a representative of the University Grants Commission; (g) one expert from the professions of architecture or landscape architecture or urban design and one from Urban and Regional Planning nominated by the Council of School of Planning and Architecture; (h) two representatives from Senate; one each from Department of Planning and Department of Architecture, by rotation, for a period of two years, in order of seniority; (i) two persons not below the rank of Joint Secretary to the Government of India to be nominated by the Central Government from amongst persons dealing with technical education and finance or their nominee, ex officio; (j) one person not below the rank of Joint Secretary to the Government of India to be nominated by the Government of India, Ministry of Urban Development; (k) the Director of the School, Member, ex officio; (l) the Registrar of the School shall act as a Secretary to the Board. **14. Term of office of vacancies among, and allowances payable to, Members of Board.—** Save as otherwise provided in this section— (a) the term of office of the Chairperson or any other Members of the Board shall be five years from the date of his nomination; (b) the term of office of an ex officio Member shall continue so long as he holds the office by virtue of which he is a Member; (c) the term of office of a Member nominated under clause (h) of section 13 shall be two years from the date of nomination or till he holds the office whichever is earlier; 6 ----- (d) a casual vacancy of a Member shall be filled up in accordance with the provisions of section 13; (e) the term of office of a Member nominated to fill a casual vacancy shall continue for the remainder of the term of the Member in whose place he has been nominated; and (f) the Members of the Board shall be entitled to such allowances, if any, from the School as may be specified in the Statutes, for attending meetings of the Board or as may be convened by the School but no Member other than the Members referred to in clauses (h), (k) and (l) of sub-section (2) of section 13 shall be entitled to any salary by reason of this clause. **15. Powers and functions of Board.—(1) Subject to the provisions of this Act, the Board of** every School shall be responsible for the general superintendence, direction and control of the affairs of the School and shall have all the powers of School not otherwise provided for by this Act, the Statutes and the Ordinances, and shall have the power to review the acts of the Senate. (2) Without prejudice to the provisions of sub-section (1), the Board of every School shall have the following powers, namely:— (a) take decisions on questions of policy relating to the administration and working of the School; (b) establish departments, faculties or schools of studies and initiate programmes or courses of study at the School; (c) make Statutes governing the administration, management and operations of such School; (d) appoint persons to academic and non-academic section of the School; (e) consider and modify or cancel Ordinances; (f) consider and pass resolutions on the annual report, the audited accounts and the budget estimates of the School for the next financial year as it thinks fit and submit them to the Council together with a statement of its development plans; (g) provide, by Statutes, the qualifications, criteria and processes for appointment to teaching and other posts in such School; (h) exercise such other powers and perform such other duties as may be conferred or imposed upon it by this Act or the Statutes. (3) The Board shall have the power to appoint such committees, as it considers necessary for the exercise of its powers and the performance of its duties under this Act. (4) The Board shall conduct an annual review of the performance of the Director with specific reference to his leadership in the context of the achievement of the objects of the School. (5) The Board shall in exercise of powers and discharge of functions strive, to the extent possible, to provide autonomy in academic matters to the Senate and Departments or Faculties or Schools, as the case may be. (6) Where in the opinion of the Director or the Chairperson, the situation is so emergent that an immediate decision needs to be taken in the interest of the School, the Chairperson, on the recommendation of the Director may issue such orders as may be necessary, recording the grounds in his opinion: Provided that such orders shall be submitted for ratification of the Board in the next meeting. **16. Senate.—(1) The Senate of every School shall consist of the following persons, namely:—** (a) the Director of the School, Chairman of the Senate, ex officio; (b) five persons, from amongst the educationists of repute or eminent professionals, who are not in the service of the School, nominated by the Chairperson of the Board of Governors; (c) a nominee of the Institute of Town Planners, India; 7 ----- (d) a nominee of the Council of Architecture; (e) a nominee of All India Council for Technical Education; (f) Dean in charge of academic, research, student affairs, faculty welfare and planning and development of the School; (g) all the Heads of the Departments; (h) all Professors other than the Heads of the Departments; (i) four Members of the teaching staff, representing Associate Professors and the Assistant Professors of the School, by rotation, for a period of two years: Provided that an employee of the School shall not be eligible for the membership referred to in clauses (b), (c), (d) and (e). (2) The term of the Members of the Senate other than ex officio Members shall be two years. **17. Functions of Senate.—(1) Subject to the provision of this Act, the Statutes and the** Ordinances, the Senate of a School shall be the principal academic body of the School and be responsible for the maintenance of standards of instruction, education and examination in the School and shall have such other powers and perform such other duties as may be conferred or imposed upon it by the Statutes. (2) Without prejudice to the provisions of sub-section (1), the Senate shall have the following powers, namely:— (a) to specify the criteria and process for admission to courses or programmes of study offered by the School; (b) to recommend to the Board for creation of teaching and other academic posts, determination of the number and emoluments of such posts and defining the duties and conditions of service of teachers and other academic posts; (c) to recommend to the Board for the commencement of new programmes and courses of study; (d) to specify the broad academic content of programmes and courses of study and to undertake modifications therein; (e) to specify the academic calendar and approve grant of degrees, diplomas and other academic distinctions or titles; (f) to exercise such other powers and discharge such other functions as may be assigned to it, by Statutes or by the Board. **18. Chairperson of Board.—(1) The Chairperson shall ordinarily preside at the meeting of the** Board and at the convocations of the School. (2) It shall be the duty of the Chairperson to ensure that the decisions taken by the Board are implemented. (3) The Chairperson shall exercise such other powers and perform such other duties as may be assigned to him by this Act or the Statutes. **19. Director.—(1) The Director of a School shall be appointed by the Central Government with** the prior approval of the Visitor, on such terms and conditions of service as may be provided by the Statutes. (2) The Director shall be the principal academic and executive officer of the School and shall be responsible for the implementation of the decisions of the Board and Senate and day-to-day administration of the School. (3) The Director shall exercise such other powers and perform such other duties as may be assigned to him by this Act or the Statutes or delegated by the Board or the Senate or the Ordinances. 8 ----- (4) The Director shall submit annual reports and audited accounts to the Board. **20. Registrar.—(1) The Registrar of every School shall be appointed on such terms and** conditions as may be laid down by the Statutes and shall be the custodian of records, the common seal, the funds of the School and such other property of the School as the Board shall commit to his charge. (2) The Registrar shall act as the Secretary of the Board, Senate and such committees as may be prescribed by the Statutes. (3) The Registrar shall be responsible to the Director for the proper discharge of his functions. (4) The Registrar shall exercise such other powers and perform such other duties as may be assigned to him by this Act or the Statutes or by the Director. **21. Other authorities and officers.—The powers and duties of authorities and officers other than** those mentioned above shall be determined by the Statutes. **22. Review of performance of School.—(1) Every School shall, within seven years from the** establishment and incorporation of School under this Act and thereafter at the expiration of every fifth year, constitute, with the prior approval of the Central Government, a Committee to evaluate and review the performance of the School in achievement of its objects in the said period. (2) The Committee constituted under sub-section (1) shall consist of members of acknowledged repute in academia or industry, drawn from such fields of knowledge as may have relevance to teaching, learning and research in such School. (3) The Committee shall assess the performance of School and make recommendations to the Board in accordance with the provisions laid down in Statutes. **23. Grants by Central Government.—For the purpose of enabling the Schools to discharge their** functions efficiently under this Act, the Central Government may, after due appropriation made by Parliament by law in this behalf, pay to every School in each financial year such sums of money in such manner as it may think fit. CHAPTER IV ACCOUNTS AND AUDIT **24. Fund of School.—(1) Every School shall maintain a Fund to which shall be credited to—** (a) all moneys provided by the Central Government; (b) all fees and other charges received by the School; (c) all moneys received by the School by way of grants, gifts, donations, benefactions, bequests or transfers; (d) all moneys received by the School from utilisation of intellectual property arising from research conducted or provision of advisory or consultancy services by it; and (e) all moneys received by the School in any other manner or from any other source. (2) All moneys credited to the Fund of every School shall be deposited in such banks or invested in such manner as the School may, with the approval of the Finance Committee and the governing body, decide. (3) The fund of any School shall be applied towards meeting the expenses of the School, including expenses incurred in the exercise of its powers and discharge of its duties under this Act. **25. Accounts and audit.—(1) Every School shall maintain proper accounts and other relevant** records and prepare annual statement of accounts including the balance sheet in such form and accounting standard as may be specified by notification, by the Central Government in consultation with the Comptroller and Auditor-General of India. 9 ----- (2) Where the statement of income and expenditure and the balance sheet of the School do not comply with the accounting standards, the School shall disclose in its statement of income and expenditure and balance sheet, the following, namely:— (a) the deviation from the accounting standards; (b) the reasons for such deviation; and (c) the financial effect, if any, arising out of such deviation. (3) The accounts of every School shall be audited by the Comptroller and Auditor-General of India and any expenditure incurred by audit team in connection with such audit shall be payable by the School to the Comptroller and Auditor-General of India. (4) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the School shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General of India has in connection with the audit of the Government accounts and, in particular shall have the rights to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect the offices of the School. (5) The accounts of every School as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament in accordance with such procedure as may be laid down by the Central Government. **26. Pension and provident fund.—(1) Every School may constitute for the benefit of its** employees such provident or pension fund or provide such insurance scheme as it may deem fit in such manner and subject to such conditions as may be prescribed by the Statutes. (2) Where such provident fund or pension fund has been so constituted, the Central Government may declare that the provisions of the Provident Funds Act, 1925 (19 of 1925), shall apply to such fund, as if it were a Government provident fund. **27. Appointments.—All appointments of the staff of every School, except that of the Director,** shall be made in accordance with the procedure laid down in the Statutes, by:— (a) the Board, if the appointment is made on the academic staff in the post of Assistant Professor or if the appointment is made on the non-academic staff in every cadre the maximum of the pay scale for which exceeds prevalent grade pay scale for Group „A‟ Officers; (b) the Director, in any other case. **28. Statutes.—Subject to the provisions of this Act, the Statutes may provide for all or any of the** following matters, namely:— (a) the conferment of honorary degrees; (b) the formation of departments of teaching and centres for research; (c) the fees to be charged for courses of study in the School and for admission to the examinations of degrees and diplomas of the School; (d) the institution of fellowship, scholarships, exhibitions, medals and prizes; (e) the term of office and the method of appointment of officers of the School; (f) the qualifications of teachers of the School; (g) the classification, the method of appointment and the determination of the terms and conditions of service of teachers and other staff of the School; (h) the constitution of pension, insurance and provident funds for the benefit of the officers, teachers and other staff of the School; 10 ----- (i) the constitution, powers and duties of the authorities of the School; (j) the establishment and maintenance of halls and hostels; (k) the conditions of residence of students of the School and the levying of fees for residence in the halls and hostels and of other charges; (l) the allowances to be paid to the Chairperson and Members of the Board; (m) the authentication of the orders and decisions of the Board; and (n) the meetings of the Board, the Senate, or any Committee, the quorum at such meetings and the procedure to be followed in the conduct of their business. **29. Statutes how made.—(1) The first Statutes of each School shall be framed by the Central** Government with the approval of the Visitor and a copy of the same shall be laid as soon as may be before each House of Parliament. (2) The Board may, from time to time, make new or additional Statutes or may amend or repeal the Statutes in the manner provided in this section. (3) Every new Statutes or addition to the Statutes or any amendment or repeal of Statutes shall require the prior approval of the Visitor who may grant assent or withhold assent or remit it to the Board for consideration. (4) New Statutes or a Statute amending or repealing an existing Statute shall have no validity unless it has been assented to by the Visitor: Provided that the Central Government with the prior approval of the Visitor may frame or amend the Statutes for the School, if the same is required for uniformity and a copy of the same shall be laid as soon as may be before each House of Parliament. **30. Ordinances.—Subject to the provisions of this Act and the Statutes, the Ordinances of every** School may provide for all or any of the following matters, namely:— (a) the admission of the students to the School; (b) the courses of study to be laid down for all degrees and diplomas of the School; (c) the conditions under which students shall be admitted to the degree or diploma courses and to the examinations of the School, and shall be eligible for degrees and diplomas; (d) the conditions of award of the fellowships, scholarships, exhibitions, medals and prizes; (e) the conditions and mode of appointment and duties of examining bodies, examiners and moderators; (f) the conduct of examinations; (g) the maintenance of discipline among the students of the School; and (h) any other matter which by this Act or the Statutes is to be or may be provided for by the Ordinances. **31. Ordinances how made.—(1) Save as otherwise provided in this section, Ordinances shall be** made by the Senate. (2) All Ordinances made by the Senate shall have effect from such date as it may direct, but every Ordinance so made shall be submitted, as soon as may be, to the Board and shall be considered by the Board at its next meeting. (3) The Board shall have power by resolution to modify or cancel any such Ordinance and such Ordinance shall from the date of such resolution stand modified accordingly or cancelled, as the case may be. **32. Tribunal of Arbitration.—(1) Any dispute arising out of a contract between a School and** any of its employees shall, at the request of the employee concerned or at the instance of the School, 11 ----- be referred to a Tribunal of Arbitration consisting of one Member appointed by the School, one Member nominated by the employee, and an umpire appointed by the Visitor. (2) The decision of the Tribunal shall be final and shall not be questioned in any court. (3) No suit or proceeding shall lie in any court in respect of any matter, which is required by sub section (1) to be referred to the Tribunal of Arbitration. (4) The Tribunal of Arbitration shall have power to regulate its own procedure: Provided that the Tribunal shall have regard to the principles of natural justice while making such procedure. (5) Nothing in any other law for the time being in force relating to arbitration shall apply to arbitrations under this section. CHAPTER V THE COUNCIL **33. Establishment of Council for Schools.—(1) With effect from such date as the Central** Government may, by notification, specify in this behalf, there shall be established for all Schools specified in column (3) of the Schedule, a central body to be called the Council. (2) The Council shall consist of the following members, namely:— (a) the Minister in charge of the Ministry or Department of the Central Government having administrative control of the technical education, ex officio, as Chairperson; (b) two Members of the Parliament of India (one Member to be nominated by the Speaker of Lok Sabha and one member to be nominated by the Chairman of Rajya Sabha), ex officio; (c) the Secretary to the Government of India in charge of the Ministry or Department of the Central Government having administrative control of the technical education, ex officio, as ViceChairperson; (d) the Chairperson of every Board, ex officio; (e) the Director of every School, ex officio; (f) the Chairman, University Grants Commission, ex officio; (g) the President, Council of Architecture, New Delhi, ex officio; (h) the President, Institute of Town Planners, India, ex officio; (i) the Chairman, Indian Institute of Architects, ex officio; (j) the President, Institution of Surveyors of India, ex officio; (k) two Secretaries to the Government of India to represent the Ministries or Departments of the Central Government dealing with Urban Development and Defence, ex officio; (l) the Chairman, All India Council for Technical Education, ex officio; (m) three persons to be nominated by the Visitor, at least one of whom shall be a woman, having special knowledge or practical experience in respect of Architecture or Landscape Architecture or Urban Design and one from Urban and Regional Planning, ex officio; (n) two Secretaries to the State Government, from amongst the Ministries or Departments of that Government dealing with technical education where the Schools are located, ex officio; (o) Financial Advisor, dealing with the Ministry of Human Resource Development, Department of the Central Government, ex officio; and (p) one officer not below the rank of Joint Secretary to the Government of India in the Ministry or Department of the Central Government having administrative control of the Technical Education, ex officio, as Member Secretary. 12 ----- (3) The Council shall have a Secretariat with officials to be appointed by the Statutes. (4) The Council, may, constitute a Standing Committee of the School of Planning and Architecture Council to assist the Council in discharge of its duties and responsibilities. **34. Term of office of vacancies among, and allowances payable to, Members of Council.—(1)** Save as otherwise provided in this section, the term of office of a Member of the Council, other than an ex officio Member, shall be three years from the date of notification. (2) The terms of office of an ex officio Member shall continue so long as he holds office by virtue of which he is such a Member. (3) The term of office of a member nominated under clause (b) of sub-section (2) of section 33 shall expire as soon as he ceases to be Member of the House, which elected him. (4) The term of office of a Member of the Council nominated or elected to fill a casual vacancy shall continue for the remainder of the term of the Member in whose place he has been appointed. (5) Notwithstanding anything contained in this section an outgoing Member of the Council shall, unless the Central Government otherwise directs, continue in office until another person is appointed as a Member in his place. (6) The members of the Council shall be entitled to such travelling and other allowances, as may be prescribed, for attending meetings of the Council or the Committees thereof. **35. Functions of Council.—(1) It shall be the general duty of the Council to co-ordinate the** activities of all the Schools. (2) Without prejudice to the provisions of sub-section (1), the Council shall perform the following functions, namely:— (a) to advise on policy matters relating to the duration of the courses, the degrees and other academic distinctions to be conferred by the Schools, admission standards and other academic matters; (b) to recommend to the Central Government, proposals for establishment of new Schools of Planning and Architecture; (c) to deliberate on such matters of common interest to Schools as may be referred to it by any School; (d) to lay down policy regarding cadres, methods of recruitment and conditions of service of employees, institution of scholarships and freeships, levying of fees and other matters of common interest; (e) to examine the development plans of each School and to approve such of them as are considered necessary and also to indicate broadly the financial implications of such approved plans; (f) to advise the Visitor, if so required, in respect of any function to be performed by him under this Act; and (g) to perform such other functions as may be referred to it by the Central Government: Provided that nothing in this section shall derogate the powers and functions vested in the Board or Senate or other authorities of a School. **36. Chairperson of Council.—(1) The Chairperson of the Council shall ordinarily preside at the** meetings of the Council: Provided that in his absence, the Vice-Chairperson of the Council shall preside at the meetings of the Council. (2) It shall be the duty of the Chairperson of the Council to ensure that the decisions taken by the Council are implemented. 13 ----- (3) The Chairperson shall exercise such other powers and perform such other duties as are assigned to him by this Act. (4) The Council shall meet once in every year and follow such procedure in its meetings as may be prescribed. **37. Power to make rules in respect of matters in this Chapter.—(1) The Central Government** may, after previous publication, by notification, make rules to carry out the purposes of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the manner and the conditions for providing provident fund and pension fund or insurance scheme under sub-section (1) of section 26; (b) the travelling and other allowances for the Members for attending the meetings of the Council or the Committees thereof under sub-section (6) of section 34; (c) the procedure to be followed in the meetings of the Council under sub-section (4) of section 36. (3) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. CHAPTER VI MISCELLANEOUS **38. Acts and proceedings not to be invalidated by vacancies, etc.—No act of the Council, or** any School or Board or Senate or any other body set up under this Act or the Statutes, shall be invalid merely by reason of— (a) any vacancy or defect in the constitution thereof; or (b) any defect in the election, nomination or appointment of a person acting as a Member thereof; or (c) any irregularity in its procedure not affecting the merits of the case. **39. Returns and information to be provided to Central Government.—Each School shall** furnish to the Central Government such returns or other information with respect to its policies or activities as the Central Government may, for the purpose of reporting to Parliament or for the making of policy, from time to time require. **40. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act the Central Government, may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made after the expiry of a period of two years from the date on which this Act receives the assent of the President. (2) Every order made under this section shall, as soon as may be, after it is made, be laid before each House of Parliament. **41. School to be public authority under Right to Information Act, 2005.—The provisions of** the Right to Information Act, 2005 (22 of 2005) shall apply to each School, as if it were a public authority defined in clause (h) of section 2 of the Right to Information Act, 2005. 14 ----- **42. Transitional provisions.—Notwithstanding anything contained in this Act—** (a) the Board of Governors of every School functioning as such immediately before the commencement of this Act shall continue to so function until a new Board is constituted for that School under this Act, but on the constitution of a new Board under this Act, the Members of the Board holding office before the constitution shall cease to hold office; (b) every Academic Council constituted in relation to every School before the commencement of this Act shall be deemed to be the Senate constituted under this Act until a Senate is constituted under this Act for that School but on the constitution of the new Senate under this Act, the Members of the Academic Council holding office before such constitution shall cease to hold office; (c) the Board of Governors, Finance Committee, Academic Council, Executive Council, Building and Works Committee and such other Committees of every School functioning as such immediately before the commencement of this Act shall continue to so function until a new Board is constituted for the School under this Act, but on the constitution of a new Board under this Act, the Members of the Board of Governors, Finance Committee, Academic Council, Building and Works Committee and such other Committees holding office before such constitution shall cease to hold office; (d) any student who joined classes of the existing School on or after the academic year 2008 2009 or completed the course on or after the academic year 2011-2012 shall for the purpose of clause (c) of sub-section (1) of section 7, be deemed to have pursued a course of study in the existing Schools located at Bhopal and Vijayawada only if such student has not already been awarded degree or diploma for the same course of study. 15 ----- THE SCHEDULE [See section 3(k) and section 4] (1) (2) (3) (4) (5) SI. No. Name of the State Name of the existing School 1. Delhi School of Planning and Architecture, being a society registered under the Societies Registration Act, 1860 (21 of 1860) 2. Madhya Pradesh School of Planning and Architecture, being a society registered under the Societies Registration Act, 1860 (21 of 1860) 3. Andhra Pradesh School of Planning and Architecture, being a society registered under the Societies Registration Act, 1860 (21 of 1860) 16 Location Name of School incorporated under this Act New Delhi School of Planning and Architecture, New Delhi. Bhopal School of Planning and Architecture, Bhopal. Vijayawada School of Planning and Architecture, Vijayawada. -----

31-Dec-2014

40

The National Judicial Appointments Commission Act, 2014

https://www.indiacode.nic.in/bitstream/123456789/2142/1/A2014-40.pdf

central

# THE NATIONAL JUDICIAL APPOINTMENTS COMMISSION ACT, 2014 _________ ARRANGEMENT OF SECTIONS _________ SECTIONS 1. Short title and commencement. 2. Definitions. 3. Headquarters of Commission. 4. Reference to Commission for filling up of vacancies. 5. Procedure for selection of Judge of Supreme Court. 6. Procedure for selection of Judge of High Court. 7. Power of President to require reconsideration. 8. Officers and employees of Commission. 9. Procedure for transfer of Judges. 10. Procedure to be followed by Commission in discharge of its functions. 11. Power to make rules. 12. Power to make regulations. 13. Rules and regulations to be laid before Parliament. 14. Power to remove difficulties. 1 ----- # THE NATIONAL JUDICIAL APPOINTMENTS COMMISSION ACT, 2014 ACT NO. 40 OF 2014 [31[st ]December, 2014.] # An Act to regulate the procedure to be followed by the National Judicial Appointments Commission for recommending persons for appointment as the Chief Justice of India and other Judges of the Supreme Court and Chief Justices and other Judges of High Courts and for their transfers and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Sixty-fifth Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the National Judicial Appointments** Commission Act, 2014. (2) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) ―Chairperson‖ means the Chairperson of the Commission; (b) ―Commission‖ means the National Judicial Appointments Commission referred to in article 124A of the Constitution; (c) ―High Court‖ means the High Court in respect of which recommendation for appointment of a Judge is proposed to be made by the Commission; (d) ―Member‖ means a Member of the Commission and includes its Chairperson; (e) ―prescribed‖ means prescribed by the rules made under this Act; (f) ―regulations‖ means the regulations made by the Commission under this Act. **3. Headquarters of Commission.—The Headquarters of the Commission shall be at Delhi.** **4. Reference to Commission for filling up of vacancies.—(1)The Central Government shall, within** a period of thirty days from the date of coming into force of this Act, intimate the vacancies existing in the posts of Judges in the Supreme Court and in a High Court to the Commission for making its recommendations to fill up such vacancies. (2) The Central Government shall, six months prior to the date of occurrence of any vacancy by reason of completion of the term of a Judge of the Supreme Court or of a High Court, make a reference to the Commission for making its recommendation to fill up such vacancy. (3) The Central Government shall, within a period of thirty days from the date of occurrence of any vacancy by reason of death or resignation of a Judge of the Supreme Court or of a High Court, make a reference to the Commission for making its recommendations to fill up such vacancy. **5. Procedure for selection of Judge of Supreme Court.—(1) The Commission shall recommend for** appointment the senior-most Judge of the Supreme Court as the Chief Justice of India if he is considered fit to hold the office: Provided that a member of the Commission whose name is being considered for recommendation shall not participate in the meeting. (2) The Commission shall, on the basis of ability, merit and any other criteria of suitability as may be specified by regulations, recommend the name for appointment as a Judge of the Supreme Court from amongst persons who are eligible to be appointed as such under clause (3) of article 124 of the Constitution: Provided that while making recommendation for appointment of a High Court Judge, apart from seniority, the ability and merit of such Judge shall be considered: 1. 13[th] April, 2015, vide notification No. S.O. 1001(E), dated by 13[th] April, 2015, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 2 ----- Provided further that the Commission shall not recommend a person for appointment if any two members of the Commission do not agree for such recommendation. (3) The Commission may, by regulations, specify such other procedure and conditions for selection and appointment of a Judge of the Supreme Court as it may consider necessary. **6. Procedure for selection of Judge of High Court.—(1) The Commission shall recommend for** appointment a Judge of a High Court to be the Chief Justice of a High Court on the basis of _inter se_ seniority of High Court Judges and ability, merit and any other criteria of suitability as may be specified by regulations. (2) The Commission shall seek nomination from the Chief Justice of the concerned High Court for the purpose of recommending for appointment a person to be a Judge of that. (3) The Commission shall also on the basis of ability, merit and any other criteria of suitability as may be specified by regulations, nominate name for appointment as a Judge of a High Court from amongst persons who are eligible to be appointed as such under clause (2) of article 217 of the Constitution and forward such names to the Chief Justice of the concerned High Court for its views. (4) Before making any nomination under sub-section (2) or giving its views under sub-section (3), the Chief Justice of the concerned High Court shall consult two senior-most Judges of that High Court and such other Judges and eminent advocates of that High Court as may be specified by regulations. (5) After receiving views and nomination under sub-sections (2) and (3), the Commission may recommend for appointment the person who is found suitable on the basis of ability, merit and any other criteria of suitability as may be specified by regulations. (6) The Commission shall not recommend a person for appointment under this section if any two members of the Commission do not agree for such recommendation. (7) The Commission shall elicit in writing the views of the Governor and the Chief Minister of the State concerned before making such recommendation in such manner as may be specified by regulations. (8) The Commission may, by regulations, specify such other procedure and conditions for selection and appointment of a Chief Justice of a High Court and a Judge of a High Court as it may consider necessary. **7. Power of President to require reconsideration.—The President shall, on the recommendations** made by the Commission, appoint the Chief Justice of India or a Judge of the Supreme Court or, as the case may be, the Chief Justice of a High Court or the Judge of a High Court: Provided that the President may, if considers necessary, require the Commission to reconsider, either generally or otherwise, the recommendation made by it: Provided further that if the Commission makes a recommendation after reconsideration in accordance with the provisions contained in sections 5 or 6, the President shall make the appointment accordingly. **8.Officers and employees of Commission.—(1) The Central Government may, in consultation with** the Commission, appoint such number of officers and other employees for the discharge of functions of the Commission under this Act. (2) The terms and other conditions of service of officers and other employees of the Commission appointed under sub-section (1) shall be such as may be prescribed. (3) The Conveyor of the Commission shall be the Secretary to the Government of India in the Department of Justice. **9.** **Procedure for transfer of Judges.—The Commission shall recommend for transfer of Chief** Justices and other Judges of High Courts from one High Court to any other High Court, and for this purpose, specify, by regulations, the procedure for such transfer. **10. Procedure to be followed by Commission in discharge of its functions.—(1) The Commission** shall have the power to specify, by regulations, the procedure for the discharge of its functions. 3 ----- (2) The Commission shall meet at such time and place as the Chairperson may direct and observe such rules of procedure in regard to the transaction of business at its meetings (including the quorum at its meeting), as it may specify by regulations. **11. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,** make rules to carry out the provisions of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:–– (a) the fees and allowances payable to the eminent persons nominated under sub-clause (d) of clause (1) of article 124A of the Constitution; (b) the terms and other conditions of service of officers and other employees of the Commission under sub-section (2) of section 8; (c) any other matter which is to be, or may be, prescribed, in respect of which provision is to be made by the rules. **12. Power to make regulations.—(1) The Commission may, by notification in the Official Gazette,** make regulations consistent with this Act, and the rules made thereunder, to carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:— (a) the criteria of suitability with respect to appointment of a Judge of the Supreme Court under sub-section (2) of section 5; (b) other procedure and conditions for selection and appointment of a Judge of the Supreme Court under sub-section (3) of section 5; (c) the criteria of suitability with respect to appointment of a Judge of the High Court under sub-section (3) of section 6; (d) other Judges and eminent advocates who may be consulted by the Chief Justice under sub-section (4) of section 6; (e) the manner of eliciting views of the Governor and the Chief Minister under sub-section (7) of section 6; (f) other procedure and conditions for selection and appointment of a Judge of the High Court under sub-section (8) of section 6; (g) the procedure for transfer of Chief Justices and other Judges from one High Court to any other High Court under section 9; (h) the procedure to be followed by the Commission in the discharge of its functions under sub-section (1) of section 10; (i) the rules of procedure in regard to the transaction of business at the meetings of Commission, including the quorum at its meeting, under sub-section (2) of section 10; (j) any other matter which is required to be, or may be, specified by regulations or in respect of which provision is to be made by regulations. **13.Rules and regulations to be laid before Parliament.—Every rule and regulation made under this** Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days, which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such 4 ----- modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. **14. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, after consultation with the Commission, by an order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made after the expiry of a period of five years from the date of commencement of this Act. (2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament. _____________ 5 -----

30-Mar-2015

11

The Coal Mines (Special Provisions) Act, 2015

https://www.indiacode.nic.in/bitstream/123456789/2146/1/a2015-11.pdf

central

# THE COAL MINES (SPECIAL PROVISIONS) ACT, 2015 ____________ ARRANGEMENT OF SECTIONS ___________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Declaration as to expediency of Union action. 3. Definitions. CHAPTER II AUCTION AND ALLOTMENT 4. Eligibility to participate in auction and payment of fees. 5. Allotment of mines to Government companies or corporations. 6. Central Government to act through nominated authority. 7. Power to classify certain Schedule I coal mines by Central Government. 8. Nominated authority to issue vesting order or allotment order. 9. Priority of disbursal of proceeds. CHAPTER III TREATMENT OF RIGHTS AND OBLIGATIONS OF PRIOR ALLOTTEES 10. Utilisation of movable property used in coal mining operations. 11. Discharge or adoption of third party contracts with prior allottees. 12. Provisions in relation to secured creditors. 13. Void alienations and permitted security interests. 14. Liabilities of prior allottees. 15. Commissioner of payments to be appointed and his powers. 16. Valuation of compensation for payment to prior allottee. CHAPTER V POWERS OF THE CENTRAL GOVERNMENT AFTER THE APPOINTED DATE 17. Responsibility of Central Government after appointed date. 18. Central Government to appoint designated custodian. 19. Powers and functions of designated custodian in respect of Schedule II coal mines. 1 ----- CHAPTER V CERTAIN ARRANGEMENTS SECTIONS 20. Power of Central Government to approve certain arrangements. CHAPTER VI MISCELLANEOUS 21. Acquisition of land. 22. Realisation of additional levy. 23. Penalties for certain offences. 24. Penalty for failure to comply with directions of Central Government. 25. Offences by companies. 26. Cognizance of offences. 27. Dispute settlement and Bar of Jurisdiction of civil courts. 28. Protection of action taken in good faith. 29. Act to have overriding effect. 30. Amendment of certain Acts contained in Schedule IV. 31. Power to make rules. 32. Power to remove difficulties. 33. Repeal and saving. SCHEDULE I. SCHEDULE II. SCHEDULE III. SCHEDULE IV. 2 ----- THE COAL MINES (SPECIAL PROVISIONS) ACT, 2015 # ACT NO. 11 OF 2015 [30th March, 2015.] An Act to provide for allocation of coal mines and vesting of the right, title and interest in and over the land and mine infrastructure together with mining leases to successful bidders and allottees with a view to ensure continuity in coal mining operations and production of coal, and for promoting optimum utilisation of coal resources consistent with the requirement of the country in national interest and for matters connected therewith or incidental thereto. WHEREAS the Supreme Court vide judgment dated 25th August, 2014 read with its order dated 24th September, 2014 has cancelled the allocation of coal blocks and issued directions with regard to such coal blocks and the Central Government in pursuance of the said directions has to take immediate action to implement the said order; AND WHEREAS it is expedient in public interest for the Central Government to take immediate action to allocate coal mines to successful bidders and allottees keeping in view the energy security of the country and to minimise any impact on core sectors such as steel, cement and power utilities, which are vital for the development of the nation; AND WHEREAS Parliament is competent to legislate under entry 54 of List I of the Seventh Schedule to the Constitution for regulation of mines and mineral development to theextent to which such regulation and development under the control of Union is declared by Parliament by law to be expedient in the public interest. BE it enacted by Parliament in the Sixty-sixth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Coal Mines (Special** Provisions) Act, 2015. (2) It extends to the whole of India. (3) It shall be deemed to have come into force on the 21st day of October, 2014. **2. Declaration as to expendiency of Union action.—It is hereby declared that it is expedient in the** public interest that Union should take action for the development of Schedule I coal mines and extraction of coal on continuous basis for optimum utilisation. **3. Definitions.—(1) In this Act, unless the context otherwise requires,—** (a) “additional levy” means, the additional levy as determined by the Supreme Court in Writ Petition (Criminal) No. 120 of 2012 as two hundred and ninety-five rupees per metric tonne of coal extracted; (b) “allotment order” means the allotment order issued under section 5; (c) “appointed date” in relation to— (i) Schedule I coal mines excluding Schedule II coal mines, shall be the 24th day of September, 2014 being the date on which the allocation of coal blocks to prior allottees stood cancelled; and (ii) Schedule II coal mines shall be the 1st day of April, 2015 being the date on which the allocation of coal blocks to prior allottees shall stand cancelled, in pursuance of the order of the Supreme Court dated the 24th September, 2014 passed in Writ Petition (Criminal) No. 120 of 2012; (d) “bank” shall have the same meaning as assigned to it in clause (c) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002); (e) “coal mining operations” means any operation undertaken for the purpose of winning coal; 3 ----- (f) “company” shall have the same meaning as assigned to it in clause (20) of section 2 of the Companies Act, 2013 (18 of 2013); (g) “corporation” shall have the same meaning as assigned to it in clause (11) of section 2 of the Companies Act, 2013 (18 of 2013); (h) “financial institution” shall have the same meaning as assigned to it in clause (m) of section 2 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002); (i) “Government company” shall have the same meaning as assigned to it in clause (45) of section 2 of the Companies Act, 2013 (18 of 2013); (j) “mine infrastructure” includes mining infrastructure such as tangible assets used for coal mining operations, being civil works, workshops, immovable coal winning equipment, foundations, embankments, pavements, electrical systems, communication systems, relief centres, site administrative offices, fixed installations, coal handling arrangements, crushing and conveying systems, railway sidings, pits, shafts, inclines, underground transport systems, hauling systems (except movable equipment unless the same is embedded in land for permanent beneficial enjoyment thereof), land demarcated for afforestation and land for rehabilitation and resettlement of persons affected by coal mining operations under the relevant law; (k) “nominated authority” means the authority nominated by the Central Government under section 6; (l) “notification” means a notification published in the Official Gazette; (m) “prescribed” means prescribed by rules made under this Act; (n) “prior allottee” means prior allottee of Schedule I coal mines as listed therein who had been allotted coal mines between 1993 and 31st day of March, 2011, whose allotments have been cancelled pursuant to the judgment of the Supreme Court dated the 25th August, 2014 and its order dated 24th September, 2014 including those allotments which may have been de-allocated prior to and during the pendency of the Writ Petition (Criminal) No.120 of 2012. _Explanation.—In case a mining lease has been executed in favour of a third party, subsequent to_ such allocation of Scheduled I coal mines, then, the third party shall be deemed to be the prior allottee; (o) “Schedule” means a Schedule appended to this Act; (p) “Schedule I coal mines” means,— (i) all the coal mines and coal blocks the allocation of which was cancelled by the judgment dated 25th August, 2014 and its order dated 24th September, 2014 passed in Writ Petition (Criminal) No.120 of 2012, including those allotments which may have been de-allocated prior to and during the pendency of the said Writ Petition; (ii) all the coal bearing land acquired by the prior allottee and lands, in or adjacent to the coal mines used for coal mining operations acquired by the prior allottee; (iii) any existing mine infrastructure as defined in clause (j); (q) “Schedule II coal mines” means the forty-two Schedule I coal mines listed in Schedule II which are the coal mines in relation to which the order of the Supreme Court dated 24th day of September, 2014 was made; (r) “Schedule III coal mines” means the thirty-two Schedule I coal mines listed in Schedule III or any other Schedule I coal mine as may be notified under sub-section (2) of section 7; (s) “secured creditor” shall have the same meaning as assigned to it in clause (zd) of section 2 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002); 4 ----- (t) “secured debt” shall have the same meaning as assigned to it in clause (ze) of section 2 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002); (u) “security interest” shall have the same meaning as assigned to it in clause (zf) of section 2 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002); (v) “specified end-use” means any of the following end-uses and the expression “specified end user” shall with its grammatical variations be construed accordingly,— (i) production of iron and steel; (ii) generation of power including the generation of power for captive use; (iii) washing of coal obtained from a mine; (iv) cement; (v) such other end-use as the Central Government may, by notification, specify; (w) “vesting order” means the vesting order issued under section 8. (2) Words and expressions used herein and not defined, but defined in the Coal Bearing Areas (Acquisition and Development) Act, 1957 (20 of 1957), the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957), and the Coal Mines (Nationalisation) Act, 1973 (26 of 1973), including any rules or regulations made thereunder, shall have the meanings, respectively assigned to them in those Acts. CHAPTER II AUCTION AND ALLOTMENT **4. Eligibility to participate in auction and payment of fees.—(1) Subject to the provisions of** section 5, Schedule I coal mines shall be allocated by way of public auction in accordance with such rules, and on the payment of such fees which shall not exceed five crore rupees, as may be prescribed. (2) Subject to the provisions in sub-section (3) of this section and section 5, the Central Government may, for the purpose of granting reconnaissance permit, prospecting licence or mining lease [1][or prospecting licence-cum-mining lease in respect of coal] select any of the following companies through auction by competitive bidding, on such terms and conditions as may be prescribed–– (a) a Government company or corporation or a joint venture company formed by such company or corporation or between the Central Government or the State Government, as the case may be, or any other company incorporated in India; or (b) a company or a joint venture company formed by two or more companies, 2[to carry on coal reconnaissance or prospecting or mining operations, for own consumption, sale or for any other purpose as may be determined by the Central Government, and the State Government shall grant such reconnaissance permit, prospecting licence, mining lease or prospecting licence-cum-mining lease in respect of Schedule I coal mine to such company as selected through auction by competitive bidding under this section.] 3* - - - (4) A prior allottee shall be eligible to participate in the auction process subject to payment of the additional levy within such period as may be prescribed and if the prior allottee has not paid such levy, then, the prior allottee, its promoter or any of its company of such prior allottee shall not be eligible to bid either by itself or by way of a joint venture. 1. Subs. by Act 2 of 2020, s. 10, for “in respect of any area containing coal” (w.e.f. 10-1-2020). 2. Subs. by s. 10, ibid., for the long line (w.e.f. 10-1-2020). 3. Sub-section (3) omitted by s. 10, ibid. (w.e.f. 10-1-2020). 5 ----- (5) Any prior allottee who is convicted for an offence relating to coal block allocation and sentenced with imprisonment for more than three years, shall not be eligible to participate in the auction. **5. Allotment of mines to Government companies or corporations.––(1) Notwithstanding the** provisions contained in [1][sub-sections (1) and (2)] of section 4, the Central Government may allot a Schedule I coal mine to a Government company or corporation or to a joint venture between two or more Government companies or corporations or to a company which has been awarded a power project on the basis of competitive bids for tariff (including Ultra Mega Power Projects) from specified Schedule I coal mines by making an allotment order in accordance with such rules as may be prescribed and the State Government shall grant a reconnaissance permit, prospecting licence [2][mining lease or prospecting licence-cum-mining lease in respect of such Schedule I coal mine] to such company or corporation: Provided that the Government company or corporation may carry on Coal Mining in any form either for its own consumption, sale or for any other purpose [3][as may be determined by the Central Government]: Provided further that no company other than a Government company or corporation shall hold more than twenty-six per cent. of the paid-up share capital in the Government company or corporation or in the joint venture between a Government company or corporation, either directly or through any of its subsidiary company or associate company: Provided also that a joint venture of any two or more Government companies or corporations shall be prohibited from alienating or transferring any interest, except the taking of loans or advances from a bank or financial institution, in the joint venture of whatsoever nature including ownership in favour of a third party. (2) No allotment under sub-section (1) shall be made to a prior allottee, if that allottee has not made the payment of the additional levy within the specified period. **6. Central Government to act through nominated authority.––(1) The Central Government shall** appoint an officer not below the rank of a Joint Secretary to the Government of India as the nominated authority who shall act for and on behalf of the Central Government for the purposes of this Act and shall exercise such powers as may be prescribed. (2) The nominated authority may engage any expert having such qualifications and experience and on such terms and conditions as may be prescribed to make recommendations to the authority for the conduct of auction and in drawing up of the vesting order or allotment order in relation to Schedule I coal mines. (3) The Central Government shall act through the nominated authority for the following purposes, namely:— (a) conduct the auction process and allotment with the assistance of experts; (b) execution of the vesting order for transfer and vesting of Schedule I coal mines pursuant to the auction; (c) executing the allotment order for any Government company or corporation in pursuance of section 5; (d) recording and mutating incorporeal rights of whatsoever nature including, consents, permissions, permits, approvals, grants, registrations; (e) collection of auction proceeds, adjustment of preferential payments and transfer of amount to the respective State Governments where Schedule I coal mine is located in accordance with the provisions of this Act. (4) The nominated authority shall complete the auction or execute the allotment orders of Schedule I coal mines within such time and in accordance with such rules as may be prescribed. 1. Subs. by Act 2 of 2020, s. 11, for “sub-sections (1) and (3)” (w.e.f. 10-1-2020). 2. Subs. by s. 11, ibid., for “or mining lease in respect of any are containing coal” (w.e.f. 10-1-2020). 3. Subs. by s. 11, ibid., for “in accordance with the permit, prospecting licence or mining lease, as the case may be” (w.e.f. 10-1-2020). 6 ----- (5) The Central Government may appoint such other officers and staff as it may think fit to assist the nominated authority. (6) The salaries and allowances and other terms and conditions of service of the nominated authority and such other officers and staff appointed under this section shall be such as may be prescribed. (7) The nominated authority shall be bound by the written direction given by the Central Government on the question of policy. **7. Power to classify certain Schedule I coal mines by Central Government.––(1) The Central** Government may, before notifying the particulars of auction, classify mines identified from Schedule I coal mines as earmarked for the same class of specified end-uses. (2) The Central Government may in public interest, by notification, modify Schedule III coal mines by adding any other Schedule I coal mine for the purposes of specified end-use. **8. Nominated authority to issue vesting order or allotment order.––(1) The nominated authority** shall notify the prior allottees of Schedule I coal mines to enable them to furnish information required for notifying the particulars of Schedule I coal mines to be auctioned in accordance with such rules as may be prescribed. (2) The information required to be furnished under sub-section (1) shall be furnished within a period of fifteen days from the date of such notice. (3) A successful bidder in an auction conducted on a competitive basis in accordance with such rules as may be prescribed, shall be entitled to the vesting of Schedule I coal mine for which it bid, pursuant to a vesting order drawn up in accordance with such rules. (4) The vesting order shall transfer and vest upon the successful bidder, the following, namely:— (a) all the rights, title and interest of the prior allottee, in Schedule I coal mine concerned with the relevant auction; (b) entitlement to a [1][prospecting licence, mining lease or prospecting licence-cum-mining lease, as the case may be] to be granted by the State Government; (c) any statutory licence, permit, permission, approval or consent required to undertake coal mining operations in Schedule I coal mines if already issued to the prior allottee; (d) rights appurtenant to the approved mining plan of the prior allottee; (e) any right, entitlement or interest not specifically covered under clauses (a) to (d). (5) The nominated authority shall, in consultation with the Central Government, determine the floor price or reserve price in accordance with such rules as may be prescribed. (6) The successful bidder shall, prior to the issuance and execution of a vesting order, furnish a performance bank guarantee for an amount as notified in relation to Schedule I coal mine auctioned to such bidder within such time, form and manner as may be prescribed. (7) After the issuance of a vesting order under this section and its filing with the Central Government and with the appropriate authority designated by the respective State Governments, the successful bidder shall be entitled to take possession of the Schedule I coal mine without let or hindrance. (8) Upon the execution of the vesting order, the successful bidder of the Schedule I coal mine shall be granted [2][prospecting licence, mining lease or prospecting licence-cum-mining lease] as applicable, by the concerned State Government in accordance with the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957). (9) A Government company or corporation or a joint venture company formed by such company or corporation or between the Central Government or the State Government, as the case may be, or any other company incorporated in India, allotted a Schedule I coal mine shall be granted [2][prospecting licence, 1. Subs. by Act 2 of 2020, s. 12, for “mining lease” (w.e.f. 10-1-2020). 2. Subs. by s. 12, ibid., for “a prospecting licence or a mining lease” (w.e.f. 10-1-2020). 7 ----- mining lease or prospecting licence-cum-mining lease] as applicable, by the concerned State Government in accordance with the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957). (10) In relation to Schedule II coal mines, the successful bidder which was a prior allottee, shall continue coal mining operations after the appointed date in terms of the approved mining plan, till the mining lease in terms of sub-section (8) is granted, upon the grant of a vesting order and to that extent, the successful bidder shall be deemed to have been granted a mining lease till the execution of the mining lease in terms of the said sub-section. (11) In relation to Schedule II coal mines, the Government company or corporation which was a prior allottee can continue coal mining operations after the appointed date in terms of the approved mining plan, till the mining lease in terms of sub-section (9) is granted, upon execution of the allotment order and to that extent, the allottee shall be deemed to have been granted a mining lease till the execution of the mining lease in terms of the said sub-section. (12) The provisions of sub-sections (1) and (2) and sub-sections (4) to (7) (both inclusive) of this section as applicable to a vesting order, shall mutatis mutandis be also applicable to an allotment order. 1[(13) The vesting order or allotment order may be terminated by the nominated authority in such manner as may be prescribed. (14) Upon termination of vesting order or allotment order, the nominated authority may auction the coal mine under section 4 or allot the coal mine under section 5 as may be determined by the Central Government. (15) The successful bidder or allottee of the coal mine whose vesting order or allotment order has been terminated shall be deemed to be the prior allottee for the purposes of immediate next auction or allotment of the said coal mine.] **9. Priority of disbursal of proceeds.––[2][The compensation for land and mine infrastructure in** relation to a Schedule I coal mine as valued in accordance with section 16 shall be deposited by the successful bidder or allottee with the nominated authority and shall be disbursed maintaining, _inter alia,_ the following priority of payments and in accordance with the relevant laws and such rules as may be prescribed.]— (a) payment to secured creditors for any portion of the secured debt in relation to a Schedule I, coal mine which is unpaid as on the date of the vesting order; (b) [3][amount payable] to the prior allottee in respect of the Schedule I coal mine. CHAPTER III TREATMENT OF RIGHTS AND OBLIGATIONS OF PRIOR ALLOTTEES **10. Utilisation of movable property used in coal mining operations.––(1) A successful bidder or** allottee in respect of Schedule I coal mines, may negotiate with prior allottee to own or utilise such movable property used in coal mining operations on such terms and conditions as may be mutually agreed to by them. (2) Where a successful bidder or allottee is not vested with any movable property of a Schedule I coal mine, then, he is not bound by any liabilities or obligations arising out of such ownership or contractual rights, obligations or liabilities which shall continue to remain with the prior allottee. (3) In the event that the successful bidder or allottee is unable to satisfactorily negotiate with the prior allottee or any third party who has a contract with the prior allottee for the movable property, it shall be the obligation of the prior allottee or the third party to remove such movable property within a period not exceeding thirty days from the date of the vesting order, or the allotment order, as the case may be, and the successful bidder or allottee shall not be liable for any damage to such property. 1. Ins. by Act 2 of 2020, s. 12 (w.e.f. 10-1-2020). 2. Subs. by s. 13, ibid., for the portion beginning with the words “The proceeds arising out of land” and ending with the words “as may be prescribed” (w.e.f. 10-1-2020). 3. Subs. by s. 13, ibid., for “compensation payable” (w.e.f. 10-1-2020). 8 ----- (4) A successful bidder or allottee which has elected not to purchase or transfer or continue to use the movable property referred to in sub-section (1), shall prior to the execution of the vesting order or the allotment order, as the case may be, declare to the nominated authority that he intends to move and store such movable property of the prior allottee or such third party and after the date of the vesting order or the allotment order, as the case may be, the successful bidder or allottee shall be entitled to move and store such movable property, so as not to cause any impediment for coal mining operations. (5) If a prior allottee or such third party which has contracted with the prior allottee for its movable property, fails to remove the movable property which the successful bidder or allottee has elected not to purchase or use in accordance with sub-section (4), then, after the period of seventy-five days from the vesting order or the allotment order, as the case may be, a successful bidder or allottee shall be entitled to dispose of such movable property which may be physically located within Schedule I coal mine, the successful bidder or the allottee, shall, in such event be entitled to appropriate the sale proceeds of such movable property disposed of to pay for any cost incurred by the successful bidder or allottee, for the removal, storage, sale and disposal of such movable property, as a first charge over the sale proceeds of such movable property: Provided that the remaining sale proceeds after appropriation of costs, shall be paid by the successful bidder or allottee to the Central Government towards any compensation that may be payable to the owner of such movable property sold, upon establishment of title to such movable property in accordance with such rules as may be prescribed: Provided further that if a third party contractor to the prior allottee owns such movable property, then, such third party shall be entitled to prove its right to receive compensation from the sale proceeds of the movable property sold as per this sub-section, in accordance with such rules as may be prescribed. **11. Discharge or adoption of third party contracts with prior allottees.––(1) Notwithstanding** anything contained in any other law for the time being in force, a successful bidder or allottee, as the case may be, in respect of Schedule I coal mines, may elect, to adopt and continue such contracts which may be existing with any of the prior allottees in relation to coal mining operations and the same shall constitute a novation for the residual term or residual performance of such contract: Provided that in such an event, the successful bidder or allottee or the prior allottee shall notify the nominated authority to include the vesting of any contracts adopted by the successful bidder. (2) In the event that a successful bidder or allottee elects not to adopt or continue with existing contracts which had been entered into by the prior allottees with third parties, in that case all such contracts which have not been adopted or continued shall cease to be enforceable against the successful bidder or allottee in relation to the Schedule I coal mine and the remedy of such contracting parties shall be against the prior allottees. **12. Provisions in relation to secured creditors.––(1) The secured creditors of the prior allottees** which had any security interest in any part of the land or mine infrastructure of a Schedule I coal mine shall be entitled to–– (a) continue with such facility agreements and security interest with the prior allottee if such prior allottee is a successful bidder or allottee; and (b) in the event that the prior allottee is not a successful bidder or allottee, then the security interest of such secured creditor shall only be satisfied out of the compensation payable to such prior allottee, to the extent determined in accordance with such rules as may be prescribed and the outstanding debt shall be recoverable from the prior allottee. (2) The Central Government shall, taking into consideration the provisions contained in section 9, prescribe the manner in which the secured creditor shall be paid out of the compensation in respect of any prior allottee. **13. Void alienations and permitted security interests.––Any and all alienations of land and mine** infrastructure and creation of any encumbrances of whatsoever nature thereon which relate to Schedule I coal mines, made by any prior allottee after the 25th day of August, 2014 shall be void, save and except any registered security interest and charge over the land and mine infrastructure as registered by a bank or a financial institution or any other secured lender. 9 ----- **14. Liabilities of prior allottees.––(1) Notwithstanding anything contained in any other law for the** time being in force, no proceedings, orders of attachment, distress, receivership, execution or the like, suits for the recovery of money, enforcement of a security or guarantee (except as otherwise provided for under this Act), prior to the date of commencement of this Act shall lie, or be proceeded further with and no remedies shall be available against the successful bidder, or allottee, as the case may be, or against the land and mine infrastructure in respect of Schedule I coal mines. (2) The proceedings as referred to in sub-section (1), shall continue as a personal remedy against the prior allottee but shall not be maintainable or continued against the land or mine infrastructure of Schedule I coal mine or the successful bidder or allottee, pursuant to this Act. (3) Every liability of any prior allottee in relation to a Schedule I coal mine in respect of any period prior to the vesting order or allotment order, shall be the liability of such prior allottee and shall be enforceable against it and not against the successful bidder or allottee or the Central Government. (4) All unsecured loans shall continue to remain the liability of the prior allottee. (5) The additional levy imposed against the prior allottees of Schedule II coal mines shall continue to remain the liability of such prior allottees and such additional levy shall be collected by the Central Government in such manner as may be prescribed. (6) For the removal of doubts, it is hereby declared that— (a) no claim for wages, bonus, royalty, rate, rent, taxes, provident fund, pension, gratuity or any other dues in relation to a Schedule I coal mine in respect of any period prior to the date of vesting order or allotment order, as the case may be, shall be enforceable against the Central Government or the successful bidder or the allottee, as the case may be; (b) no award, decree, attachment or order of any court, tribunal or other authority in relation to any Schedule I coal mine passed prior to the date of commencement of this Act, in relation to the land and mine infrastructure of Schedule I coal mines, shall be enforceable against the Central Government or the successful bidder or the allottee, as the case may be; (c) no liability for the contravention of any provision of law for the time being in force, relating to any act or omission prior to the date of vesting order or allotment order, as the case may be, shall be enforceable against the successful bidder or allottee or the Central Government. **15. Commissioner of payments to be appointed and his powers.––(1) For the purposes of** disbursing the amounts payable to the prior allottees of Schedule I coal mines, the Central Government shall appoint an officer not below the rank of Joint Secretary to the Government of India, to be the Commissioner of payments. (2) The Central Government may appoint such other officers and staff as it may think fit to assist the Commissioner and thereupon the Commissioner may authorise one or more of such officers also to exercise all or any of the powers exercisable by him under this Act. (3) Any officer authorised by the Commissioner to exercise any powers may exercise those powers in the same manner and with the same effect as if they have been conferred on him directly by this Act and not by way of authorisation. (4) The salaries and allowances and other terms and conditions of service of the Commissioner and other officers and staff appointed under this section shall be such as may be prescribed. (5) The Central Government shall, within a period of thirty days from such date as may be notified, pay to the Commissioner for payment to the prior allottee, an amount equal to the compensation determined by the nominated authority. (6) Separate records shall be maintained by the Commissioner in respect of each Schedule I coal mine in relation to which payments have been made to him under this Act. **16. Valuation of compensation for payment to prior allottee.––(1) The quantum of compensation** for the land in relation to Schedule I coal mines shall be as per the registered sale deeds lodged with the nominated authority in accordance with such rules as may be prescribed, together with twelve per cent. 10 ----- simple interest from the date of such purchase or acquisition, till the date of the execution of the vesting order or the allotment order, as the case may be. (2) The quantum of compensation for the mine infrastructure in relation to Schedule I coal mines shall be determined as per the written down value reflected in the statutorily audited balance sheet of the previous financial year in accordance with such rules and in such manner as may be prescribed. (3) If the successful bidder or allottee is a prior allottee of any of the Schedule I coal mines, then, the compensation payable to such successful bidder or allottee shall be set off or adjusted against the auction sum or the allotment sum payable by such successful bidder or allottee, as the case may be, for any of the Schedule I coal mines. (4) The prior allottee shall not be entitled to compensation till the additional levy has been paid. CHAPTER IV POWERS OF THE CENTRAL GOVERNMENT AFTER THE APPOINTED DATE **17. Responsibility of Central Government after appointed date.––(1) On and from the appointed** date, the Central Government or a company owned by the Central Government shall be deemed to have become the lessee or licensee of the State Government in relation to each of the Schedule II coal mines, in respect of which a mining lease or prospecting licence has been granted prior to the date of commencement of this Act, as if a mining lease or prospecting licence in relation to such coal mine had been granted to the Central Government or a company owned by the Central Government and the period of such lease or licence shall be the maximum period for which such lease or licence could have been granted by the State Government under the Mineral Concession Rules, 1960, and thereupon all the rights under such mining lease, including surface, underground and other rights shall be deemed to have been transferred to, and vested in, the Central Government or a company owned by the Central Government. (2) On the expiry of the term of any lease or licence, referred to in sub-section (1), such lease or licence shall be renewed, by the State Government, in consultation with the Central Government for the maximum period for which such lease or licence can be renewed under the Mineral Concession Rules, 1960. (3) As it is considered expedient and necessary in the public interest and in view of the difficult situation which has arisen, the powers of the State Government, under the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957), to prematurely terminate a prospecting licence or mining lease, shall stand suspended, in relation to Schedule I coal mines, for a period of one year from the date of commencement of this Act or such other period as may be notified by the Central Government. **18. Central Government to appoint designated custodian.––(1) On and from the appointed date, if** the auction or [1][allotment of Schedule II coal mines is not complete, or vesting order or allotment order issued under this Act has been terminated in case of a coal mine under production], the Central Government shall appoint any person as a designated custodian to manage and operate such coal mines as may be notified by the Central Government. (2) The designated custodian shall act for and on behalf of the Central Government in respect of the notified coal mines under sub-section (1) to operate and manage such Schedule I coal mines in such manner as may be notified, till the completion of the auction of such coal mines or allotment under section 4 and section 5 read with section 8, as the case may be. **19. Powers and functions of designated custodian in respect of Schedule II coal mines.––(1) The** designated custodian appointed under sub-section (1) of section 18, shall be entitled to take control and possession of all lands, in or adjacent to Schedule II coal mines, and used for coal mining operations and the mine infrastructure in relation to Schedule II coal mine, on behalf of the Central Government. (2) The designated custodian may direct the prior allottees or any other persons in charge of the management of the Schedule II coal mines and coal mining operations immediately before the appointed date to provide the requisite manpower, as may be necessary, to ensure continuity in coal mining operations and production of coal. 1. Subs. by Act 2 of 2020, s. 14, for “allotment of Schedule I coal mines is not complete” (w.e.f. 10-1-2020). 11 ----- (3) The designated custodian shall receive, to the exclusion of all other persons, any monies due to Schedule II coal mines, notwithstanding cases where such receipt pertains to a transaction made at any time before the appointed date. (4) The designated custodian may call for any information, records and documents in relation to Schedule II coal mines and coal mining operations from any or all such persons who were in charge of the management and operation of such Schedule II coal mines prior to the appointed date, and such persons shall be bound to deliver to the designated custodian all such documents in their custody relating to Schedule II coal mines. (5) The designated custodian may appoint such consultants or experts, as may be necessary, in relation to the management and operation of Schedule II coal mines. (6) The designated custodian shall transfer the management and operation of any Schedule II coal mines to such person in such manner as may be prescribed. (7) The designated custodian shall have rights, liabilities and obligations as a prior allottee or a successful bidder in respect of coal mines entrusted to it under section 18, to be exercised and discharged in such manner as may be prescribed. (8) The designated custodian shall have the power to perform such other functions which may be consequential or incidental to the functions specified under this section. (9) Notwithstanding anything contained in any other law for the time being in force, the designated custodian shall, in exercise of its powers or the performance of its functions under this Act, be bound by such directions on questions of policy, as the Central Government may give in writing to it from time to time. CHAPTER V CERTAIN ARRANGEMENTS **20. Power of Central Government to approve certain arrangements.––(1)** [1][A successful bidder or allottee shall], with the prior approval of the Central Government and in accordance with such rules as may be prescribed, be entitled to enter into certain agreements or arrangements with other successful bidder or allottee or coal linkage holder, as the case may be, for optimum utilisation of coal mine for the same end-uses in the public interest and to achieve cost efficiencies. 2[(2) A successful bidder or allottee may also use the coal mine from a particular Schedule I coal mine, in any of its plants or plant of its subsidiary or holding company engaged in same specified enduses in such manner as may be prescribed.] CHAPTER VI MISCELLANEOUS **21. Acquisition of land.––(1) All existing land acquisition proceedings under the Right to Fair** Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (30 of 2013), in relation to Schedule I coal mines, shall continue in respect of such areas of land in accordance with the provisions of the said Act. (2) All such areas of land which are not subject matter of land acquisition proceedings, in relation to the coal mines, under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (30 of 2013), may be proceeded with by the Central Government in terms of the Coal Bearing Areas (Acquisition and Development) Act, 1957 (20 of 1957). (3) The State Governments which have initiated land acquisition proceedings under provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (30 of 2013), and all such lands which are also subject matter of the said Act in respect of Schedule I coal mines, shall— 1. Subs. by Act 2 of 2020, s. 15, for “A successful bidder or allottee or coal linkage holder shall” (w.e.f. 10-1-2020). 2. Subs. by s. 15, ibid., for sub-section (2) (w.e.f. 10-1-2020). 12 ----- (a) not transfer any land to the prior allottees which have been acquired under the said Act; (b) continue the land acquisition proceedings till the appointed date; (c) for such Schedule I coal mines which have not vested in the successful bidder or the allottee, as the case may be, by the appointed date, continue the land acquisition proceedings for and on behalf of the Central Government; (d) upon the vesting or the allotment, as the case may be, after the appointed date, continue such land acquisition proceedings on behalf of the successful bidder or the allottee. **22. Realisation of additional levy.––If a prior allottee of Schedule II coal mine fails to deposit the** additional levy with the Central Government within the specified time, then, such additional levy shall be realised as the arrears of land revenue. **23. Penalties for certain offences.––If any person—** (a) obstructs or causes any impediment in taking possession or in the management and operation of the Schedule I coal mines by the Central Government or the designated custodian; or (b) fails to deliver to the designated custodian any books of account, registers or any other document in his custody relating to Schedule I coal mines and coal mining operations in respect of the management of which the designated custodian has been appointed; or (c) destroys or misuses any mine infrastructure or coal stock; or (d) retains any property of such coal mine or removes or destroys it, he and any officer-in-default of the company shall be punishable with imprisonment for a term which may extend to two years, or with the minimum fine of one lakh rupees per day and in the case of continuing failure, with a maximum fine of two lakh rupees for every day during which the failure continues or with both, depending upon the nature of the offence. **24. Penalty for failure to comply with directions of Central Government.––If any person fails to** comply, without reasonable cause, with a direction given by the Central Government or nominated authority or the designated custodian, he shall be punishable with a fine of one lakh rupees and in the case of continuing failure with a maximum fine of two lakh rupees for every day during which the failure continues, depending upon the nature of the offence. **25. Offences by companies.––(1) Where an offence under this Act has been committed by a** company, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of business of the company as well as the company shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge and that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. **26. Cognizance of offences.––No court shall take cognizance of any offence punishable under this** Act or any rules made thereunder except upon complaint in writing made by a person authorised in this behalf by the Central Government or nominated authority or the designated custodian. **27. Dispute settlement and Bar of Jurisdiction of civil courts.––(1) Any dispute arising out of any** action of the Central Government, nominated authority or Commissioner of payment or designated custodian, or any dispute between the successful bidder or allottee and prior allottee arising out of any issue connected with the Act shall be adjudicated by the Tribunal constituted under the Coal Bearing Areas (Acquisition and Development) Act, 1957 (20 of 1957). 13 ----- (2) Where the Central Government is of the opinion that any dispute arising out of any issue connected with the Act exists or is apprehended and the dispute should be adjudicated by the Tribunal referred to in sub-section (1), then, the Central Government may by order in writing, refer the dispute or any matter appearing to be connected with, or relevant to, the dispute, to the Tribunal for adjudication. (3) The Tribunal referred to in sub-section (1) shall, after hearing the parties to the dispute, make an award in writing within a period of ninety days from the institution or reference of the dispute. (4) On and from the commencement of the Act, no court or other authority, except the Supreme Court and a High Court, shall have, or be entitled to exercise, any jurisdiction, powers or authority, in relation to matters connected with the Act. **28. Protection of action taken in good faith.–– No suit, prosecution or other legal proceeding shall** lie against the Central Government, nominated authority, commissioner of payment, or designated custodian or any person acting on their behalf, in respect of anything which is done or intended to be done in good faith under this Act. **29. Act to have overriding effect.––The provisions of this Act shall have effect, notwithstanding** anything inconsistent therewith contained in any other law for the time being in force, or in any instrument having effect by virtue of any such law. **30. Amendment of certain Acts contained in Schedule IV.––On and from the date of** commencement of this Act, the Coal Mines (Nationalisation) Act, 1973 (26 of 1973), and the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957),shall stand amended in the manner provided in Schedule IV. **31. Power to make rules.––(1) The Central Government may, by notification in the Official Gazette,** and subject to the condition of previous publication, make rules for carrying out the provisions of this Act. (2) In particular, and without prejudice the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:–– (a) the manner of allocation of Schedule I coal mines by way of public auction and details of fees under sub-section (1) of section 4; (b) the terms and conditions for granting reconnaissance permit, [1][prospecting licence, mining lease or prospecting licence-cum-mining lease] and the manner and conditions of competitive bidding under sub-section (2) of section 4; (c) norms to become eligible to bid in an auction and the amount of investment in respect of a company having a coal linkage under sub-section (3) of section 4; (d) the period within which the payment of additional levy by the prior allottee under sub-section (4) of section 4; (e) the allotment order to make allocations to a Government company or corporation under sub section (1) of section 5; (f) the powers of the nominated authority under sub-section (1) of section 6; (g) the manner of auction or allotment of Schedule I coal mines and execution of the vesting or allotment orders under sub-section (4) of section 6; (h) the salaries and allowances and other terms and conditions of service of the nominated authority and other officers and staff under sub-section (6) of section 6; (i) the manner of notifying the particulars of Schedule I coal mines to be auctioned and furnishing of required information by the prior allottees under sub-section (1) of section 8; (j) the manner of conducting auction and drawing of a vesting order under sub-section (3) of section 8; 1. Subs. by Act of 2 of 2020, s. 16, for “prospecting licence or mining lease” (w.e.f. 10-1-2020). 14 ----- (k) determination of floor price by the nominated authority under sub-section (5) of section 8; (l) the form and manner of furnishing of bank guarantee and the time within which such furnishing of bank guarantee under sub-section (6) of section 8; 1[(la) the manner of termination of vesting order or allotment order under sub-section (13) of section 8;] (m) the manner of disbursement of priority payments under section 9; (n) the manner of establishing title of movable property by the prior allottee or third party who has a contract with the prior allottee for the movable property under the first proviso tosub-section (5) of section 10; (o) the manner of receiving compensation from the sale proceeds of the movable property under the second proviso to sub-section (5) of section 10; (p) the manner in which the secured creditor paid out of the compensation in respect of any prior allottee under sub-section (2) of section 12; (q) the manner of collection of additional levy by the Central Government from the prior allottees of Schedule II coal mines under sub-section (5) of section 14; (r) the salaries and allowances and other terms and conditions of service of the Commissioner of payments and other officers and staff under sub-section (4) of section 15; (s) the manner of determination of compensation payable to prior allottee and the lodging of registered sale deeds with the nominated authority under sub-section (1) of section 16; (t) the method of determination of compensation for mine infrastructure in relation to Schedule I and its reflection in the statutorily audited balance sheet under sub-section (2) of section 16; (u) the manner of transfer of the management and operation of any Schedule II coal mines by the designated custodian under sub-section (6) of section 19; (v) the manner of exercising and discharging the rights, liabilities and obligations by the designated custodian under sub-section (7) of section 19; (w) the manner of providing agreements or arrangements for optimum utilisation of coal mine for specified end-uses under sub-section (1) of section 20; (x) the manner of usage of coal mine by a successful bidder or allottee for any of its plants under sub-section (2) of section 20; (y) any other matter which is required to be, or may be, prescribed. (3) Every rule made and every notification issued by the Central Government, under this Act, shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or notification, or both Houses agree that the rule or notification should not be made, the rule or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification. **32. Power to remove difficulties.––(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made after the expiry of a period of two years from the date of commencement of this Act. (2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament. 1. Ins. by Act 2 of 2020, s. 16 (w.e.f. 10-1-2020). 15 ----- **33. Repeal and saving.––(1) The Coal Mines (Special Provisions) Second Ordinance, 2014 (Ord. 7** of 2014) is hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance, shall, without prejudice to the judgment of the Supreme Court dated 25th August, 2014 and its order dated 24th September, 2014 passed in Writ Petition (Criminal) No. 120 of 2012, be deemed to have been done or taken under the corresponding provisions of this Act. 16 ----- SI. No. Name of Coal Mine/Block SCHEDULE I [See section 3(1) (p)] Name of Prior Allottee State where Coal Mine/Block Located 1 2 3 4 1 Tadicherla-I Andhra Pradesh Power Generation Corpn. Ltd. Telangana 2 Anesttipali Andhra Pradesh Power Generation Corpn. Ltd. Telangana 3 Punkula-Chilka Andhra Pradesh Power Generation Corpn. Ltd. Telangana 4 Penagaddppa Andhra Pradesh Power Generation Corpn. Ltd. Telangana 5 NamchikNamphuk Arunachal Pradesh Mineral Dev. & Trading Corporation Arunachal Pradesh 6 Sayang AES Chhattisgarh Energy Pvt. Ltd Chhattisgarh 7 Rajgamar Dipside (Deavnara) API Ispat & Powertech Pvt. Ltd., CG SpongeManufacturers Consortium Coalfield Pvt. Ltd. Chhattisgarh 8 Durgapur-II/ Taraimar Bharat Aluminium Company Ltd. Chhattisgarh 9 Datima Binani Cement Ltd. Chhattisgarh 10 Tara Chhattisgarh Mineral Development Corporation Limited Chhattisgarh 11 Gare-Palma,Sector-I Chhattisgarh Mineral Development Corporation Limited Chhattisgarh 12 Shankarpur Bhatgaon II Extn. Chhattisgarh Mineral Development Corporation Limited Chhattisgarh 13 Sondhia Chhattisgarh Mineral Development Corporation Limited Chhattisgarh 14 Parsa Chhattisgarh State Electricity Board Chhattisgarh 15 Vijay Central Coal India Limited, SKS Ispat & Power Ltd. Chhattisgarh 16 Gidhmuri Chhattisgarh State Electricity Board Chhattisgarh 17 Paturia Chhattisgarh State Electricity Board Chhattisgarh 18 Durgapur-II /Sarya DB Power Ltd. Chhattisgarh 19 Bhaskarpara Electrotherm (India) Ltd., Grasim Industries Ltd. Chhattisgarh 20 West of Umaria Sainik Finance and Industries Ltd. ( Earlier Garuda Clays Ltd.) Chhattisgarh 21 Morga II Gujarat Mineral Development Corporation Chhattisgarh 22 Gare-Palma Sector-III Goa Industrial Development Corporation Chhattisgarh 23 Madanpur South Hindustan Zinc Ltd., Akshya Investment Pvt. Ltd., Chhattisgarh Steel & Power Ltd., Chhattisgarh Electricity Corporation Ltd., MSP Steel & Power Ltd., Chhattisgarh Captive Coal Mining Ltd. (Consortium of five Cos. ) 24 Nakia I Ispat Godavari Ltd., Ind Agro Synergy Ltd., Shri Nakoda Ispat Ltd., Vandana Global Ltd., Shree Bajrang Power & Ispat Ltd. 17 Chhattisgarh Chhattisgarh ----- 1 2 3 4 25 Nakia II Ispat Godavari, Ind Agro Synergy, Shri Nakoda Ispat, Vandana Global Ltd., Shree Bajrang Power & Ispat Ltd. Chhattisgarh 26 Gare-Palma- IV/4 Jayaswal Neco Ltd. Chhattisgarh 27 Gare-Palma- IV/8 Jayaswal Neco Ltd. Chhattisgarh 28 Gare-Palma-IV/2 Jindal Power Ltd. (Now Jindal Steel & Power Ltd.) Chhattisgarh 29 Gare-Palma-IV/3 Jindal Power Ltd. (Now Jindal Steel & Power Ltd.) Chhattisgarh 30 Gare-Palma-IV/1 Jindal Strips Limited (Now Jindal Steel & Power Ltd.) Chhattisgarh 31 Gare-Palma IV/6 Jindal Steel & Power Ltd., Nalwa Sponge Iron Ltd. Chhattisgarh 32 Fatehpur East JLD Yavatmal Energy Ltd., R.K.M. Powergen Pvt. Ltd., Visa Power Ltd., Green Infrastructure Pvt. Ltd.,Vandana Vidyut Ltd. Chhattisgarh 33 Morga-I Madhya Pradesh State Mining Corporation Limited Chhattisgarh 34 Morga-III Madhya Pradesh State Mineral Corporation Limited Chhattisgarh 35 Morga-IV Madhya Pradesh State Mineral Corporation Limited Chhattisgarh 36 Gare-Palma Sector-II Maharashtra State Mining Corpn. Ltd. Tamil Nadu State Electricity Board Chhattisgarh 37 Gare-Palma-IV/5 Monet Ispat Ltd. Chhattisgarh 38 Rajgamar Dipside(South of Phulakdih Nala) Monnet Ispat and Energy Ltd., Topworth Steel Pvt. Ltd. Chhattisgarh 39 Talaipali National Thermal Power Ltd. Chhattisgarh 40 Chotia Prakash Industries Ltd. Chhattisgarh 41 Gare-Palma-IV/7 Raipur Alloys & Steel Ltd. (Now Sarda Energy and Mineral Limited) 42 Parsa East Rajasthan Rajya Vidyut Utpadan Nigam Ltd. (RRVUNL) Chhattisgarh Chhattisgarh 43 Kesla North Rathi Udyog Ltd. Chhattisgarh 44 Kanta Basan Rajasthan Rajya Vidyut Utpadan Nigam Ltd. (RRVUNL) Chhattisgarh 45 Panchbahani Shree Radhe Industries Ltd. Chhattisgarh 46 Fatehpur SKS Ispat and Power Ltd., Prakash Industries Ltd. Chhattisgarh 47 Madanpur (North) Ultratech Ltd., Singhal Enterprise Ltd., Nav Bharat Coalfield Ltd., Vandana Energy & Steel Pvt. Ltd., Prakash Industries Ltd., Anjani Steel Pvt. Ltd., Chhattisgarh Captive Coal Mining Ltd. (Consortium of five Co. ) Chhattisgarh 48 Brinda Abhijeet Infrastructure Pvt. Ltd. Jharkhand 49 Sasai Abhijeet Infrastructure Pvt. Ltd. Jharkhand 50 Meral Abhijeet Infrastructure Pvt. Ltd. Jharkhand 51 Seregarha Arcelor Mittal India Ltd., GVK Power (Govindwal Sahib) Ltd. 18 Jharkhand ----- 1 2 3 4 52 Patal East Bhushan Power and Steel Ltd. Jharkhand 53 Saria Koiyatand Bihar Rajya Khanij Vikas Nigam (BRKVN) Patna. Jharkhand 54 Macherkunda Bihar Sponge Iron Ltd. Jharkhand 55 Brahmadiha Castron Technologies Ltd. Jharkhand 56 Mahuagarhi Calcutta Electricity Supply Corporation Ltd. (CESC), Jas Infrastructure Capital Pvt. Ltd. Jharkhand 57 Chitarpur Corporate Ispat Alloys Ltd. Jharkhand 58 SaharpurJamarpani Damodar Valley Corporation Jharkhand 59 Lalgarh (North) Domco Smokeless Fuel Pvt. Ltd. Jharkhand 60 Parbatpur-Central Electrosteel castings Ltd. Jharkhand 61 Chakla Essar Power Ltd. Jharkhand 62 Ashok Karkatta Central Essar Power Ltd. Jharkhand 63 Jainagar Gujarat Mineral Development Corporation (GMDC) Jharkhand 64 Tokisud North GVK Power (Govindwal Sahib) Ltd. Jharkhand 65 Tubed Hindalco Industries Ltd., Tata Power Company Ltd. Jharkhand 66 Moitra Jayaswal Neco Ltd. Jharkhand 67 North Dhadu Jharkhand Ispat Pvt. Ltd., Pavanjay Steel & Power Ltd., Electrosteel castings Ltd., Adhunik Alloys & Power Ltd Jharkhand 68 Banhardih Jharkhand State Electricity Board Jharkhand 69 Sugia Closed mine Jharkhand State Mineral Development Corporation Jharkhand 70 Rauta Closed mine Jharkhand State Mineral Development Corporation Jharkhand 71 Burakhap small patch Jharkhand State Mineral Development Corporation Jharkhand 72 Pindra-Debipur Khaowatand Jharkhand State Mineral Development Corporation Ltd. Jharkhand 73 Latehar Jharkhand State Mineral Development Corporation Ltd. Jharkhand 74 Patratu Jharkhand State Mineral Development Corporation Ltd. Jharkhand 75 Rabodih OCP Jharkhand State Mineral Development Corporation Ltd. Jharkhand 76 Jogeshwar & Khas Jogeshwar Jharkhand State Mineral Development Corporation Jharkhand 77 Jitpur Jindal Steel & Power Ltd. Jharkhand 78 Amarkonda Murgadangal Jindal Steel and Power Ltd.,Gagan Sponge Iron Pvt. Ltd. 79 Urma Paharitola Jharkhand State Electricity Board, Bihar State Mineral Development Corporation Ltd. 80 Rohne JSW Steel Ltd., Bhushan Power & Steel Ltd., Jai Balaji Industries Ltd Jharkhand Jharkhand Jharkhand 81 Gomia Metals and Minerals Trading Corporation Jharkhand 19 ----- 1 2 3 4 82 Rajhara North (Central & Eastern) Mukund Limited,Vini Iron & Steel Udyog Limited Jharkhand 83 Dumri Nilachal Iron & Power Ltd., Bajrang Ispat Pvt. Ltd. Jharkhand 84 Kerandari National Thermal Power Ltd. Jharkhand 85 Chhatti Bariatu National Thermal Power Ltd. Jharkhand 86 Chhati Bariatu South National Thermal Power Ltd. Jharkhand 87 Brahmini National Thermal Power Ltd.+ Coal India Limited JV Jharkhand 88 Chichro Patsimal National Thermal Power Ltd.+ Coal India Limited JV Jharkhand 89 Pachwara Central Punjab State Electricity Board Jharkhand 90 Mahal Rashtriya Ispat Nigam Limited Jharkhand 91 Tenughat-Jhirki Rashtriya Ispat Nigam Limited Jharkhand 92 Bundu Rungta Mines Limited Jharkhand 93 Mednirai Rungta Mines Limited, Kohinoor Steel (P) Ltd. Jharkhand 94 Choritand Tiliaya Rungta Mines Limited, Sunflag Iron & Steel Co. Ltd. Jharkhand 95 Sitanala Steel Authority of India Ltd. Jharkhand 96 Ganeshpur Tata Steel Ltd., Adhunik Thermal Energy Jharkhand 97 Badam Tenughat Vidyut Nigam Limited Jharkhand 98 Rajbar E&D Tenughat Vidyut Nigam Limited Jharkhand 99 Gondulpara Tenughat Vidyut Nigam Limited, Damodar Valley Corporation Jharkhand 100 Kotre-Basantpur Tata Iron and Steel Co. Ltd. ( Now Tata Steel Ltd.) Jharkhand 101 Pachmo Tata Iron and Steel Co. Ltd. ( Now Tata Steel Ltd.) Jharkhand 102 Lohari Usha Martin Ltd. Jharkhand 103 Kathautia Usha Martin Ltd. Jharkhand 104 Pachwara North West Bengal Power Development Corporation Limited (WBPDCL) Jharkhand 105 Suliyari Andhra Pradesh Mineral Development Corporation Madhya Pradesh 106 Bikram Birla Corporation Ltd. Madhya Pradesh 107 Gotitoria (East) BLA Industries Ltd. Madhya Pradesh 108 Gotitoria (West) BLA Industries Ltd. Madhya Pradesh 109 Mahan Essar Power Ltd., Hindalco Industries Ltd. Madhya Pradesh 110 Mandla North Jaipraskash Associates Ltd. Madhya Pradesh 111 Urtan North Jindal Steel & Power Ltd., Monet Ispat and Energy Ltd. Madhya Pradesh 112 Thesgora-B/ Rudrapuri Kamal Sponge Steel & Power Limited, Revati Cement P. Ltd. Madhya Pradesh 113 Amelia Madhya Pradesh State Mining Corporation Madhya Pradesh 114 Amelia (North) Madhya Pradesh State Mining Corporation Madhya Pradesh 20 ----- 1 2 3 4 115 Mandla South Madhya Pradesh State Mining Corporation Ltd. Madhya Pradesh 116 Dongeri Tal-II MadhyaPradesh State Mining Corporation Ltd. (MPSMC) Madhya Pradesh 117 Marki Barka Madhya Pradesh State Mining Corporation (MPSMC) Madhya Pradesh 118 Semaria/Piparia Madhya Pradesh State Mining Corporation (MPSMC) Madhya Pradesh 119 Bicharpur Madhya Pradesh State Mining Corporation Ltd. (MPSMC) Madhya Pradesh 120 Tandsi-III & Tandsi -III (Extn.) Mideast Integrated Steels Ltd. Madhya Pradesh 121 Sahapur East National Mineral Dev. Corp. Madhya Pradesh 122 Sahapur West National Mineral Dev. Corp. Madhya Pradesh 123 Mara II Mahan NCT of Delhi, Delhi, Haryana Power Generation Corp. Ltd . (HPGCL) Madhya Pradesh 124 Sial Ghoghri Prism Cement Limited Madhya Pradesh 125 Brahampuri Pushp Steel and Mining Ltd. Madhya Pradesh 126 Rawanwara North SKS Ispat Limited Madhya Pradesh 127 Bander AMR Iron & Steels Pvt. Ltd., Century Textiles & Industries Ltd., J.K.Cement Ltd. Maharashtra 128 Marki Mangli-I B.S. Ispat Ltd. Maharashtra 129 Takli-Jena-Bellora (North) & Takli-Jena-Bellora (South) 130 Dahegaon/ Makard hokraIV Central Collieries Co. Ltd. and Lloyds Metals & Engineering Ltd. IST Steel & Power Ltd., Gujarat Ambuja Cement Ltd., Lafarge India Pvt. Ltd. Maharashtra Maharashtra Maharashtra 131 Gondkhari Maharashtra Seamless Limited, Dhariwal Infrastructure (P) Ltd., Kesoram Industries Ltd. 132 Marki-Zari-Jamani-Adkoli Maharashtra State Mining Corpn. Ltd. Maharashtra 133 Lohara (East) Murli Industries Ltd., Grace Industries Ltd. Maharashtra 134 Khappa & Extn. Sunflag Iron & Steel Ltd., Dalmia Cement (Bharat) Ltd. Maharashtra 135 Lohara West Extn. Adani Power Ltd. Maharashtra 136 Warora West (North) Bhatia International Ltd. Maharashtra 137 Kosar Dongergaon Chaman Metaliks Ltd. Maharashtra 138 Warora (West) Southern Part Fieldmining & Ispat Ltd. Maharashtra 139 Chinora Fieldmining & Ispat Ltd. Maharashtra 140 Majra Gondwana Ispat Ltd. Maharashtra 141 Nerad Malegaon Gupta Metallics & Power Ltd., Gupta Coalfields & Washeries Ltd. Maharashtra 142 Baranj - I Karnataka Power Corp. Ltd. (KPCL) Maharashtra 143 Baranj - II Karnataka Power Corp. Ltd. (KPCL) Maharashtra 21 ----- 1 2 3 4 144 Baranj - III Karnataka Power Corp. Ltd. (KPCL) Maharashtra 145 Baranj - IV Karnataka Power Corp. Ltd. (KPCL) Maharashtra 146 Kiloni Karnataka Power Corp. Ltd. (KPCL) Maharashtra 147 Manora Deep Karnataka Power Corp. Ltd. (KPCL) Maharashtra 148 Agarzari Maharashtra State Mining Corporation Limited (MSMCL) 149 Warora Maharashtra State Mining Corporation Limited (MSMCL) Maharashtra Maharashtra 150 Bhandak West Shree Baidyanath Ayurved Bhawan Ltd. Maharashtra 151 Marki Mangli-II Shree Veerangana Steel Limited. Maharashtra 152 Marki Mangli-III Shree Veerangana Steel Limited. Maharashtra 153 Marki Mangli-IV Shree Veerangana Steel Limited. Maharashtra 154 Belgaon Sunflag Iron & Steel Co. Ltd. Maharashtra 155 Mandakini B Assam Mineral Dev. Corporation Ltd., Meghalaya Mineral Dev. Corp., Tamil Nadu Electricity Board, Odisha Mining Corporation Ltd. 156 New Patrapara Bhusan Steel & Strips Ltd., Adhunik Metaliks Ltd., Deepak Steel & Power Ltd., Adhunik Corp. Ltd., Odisha Sponge Iron Ltd., SMC Power Generation Ltd., Sree Metaliks Ltd.,Visa Steel Ltd. Odisha Odisha 157 Bijahan Bhushan Ltd., Shri Mahavir Ferro Alloys Pvt. Limited Odisha 158 Jamkhani Bhushan Ltd. Odisha 159 Naini Gujarat Mineral Development Corporation, Puducherry Industrial Promotion Development and Investment Corporation Limited 160 Mahanadi Gujarat State Electricity Corporation Limited, Maharashtra State Electricity Board 161 Machhakata Gujarat State Electricity Corporation Limited, Maharashtra State Electricity Board Odisha Odisha Odisha 162 Talabira-I Hindalco Industries Ltd. Odisha 163 Ramchandi Promotion Block Jindal Steel & Power Limited Odisha 164 Utkal B 1 Jindal Steel & Power Ltd. Odisha 165 Baitarni West Kerala State Electricity Board, Odisha Hydro Power Corp., Gujarat Power Corporation Ltd. 166 Talabira II & III. Mahanadi Coalfields Ltd. (MCL), Neyveli Lignite Corporation Ltd., Hindalco Industries Ltd 167 Utkal-A Mahanadi Coalfields Ltd. (MCL), JSW Steels Ltd., Jindal Thermal Power Comp. Ltd., Jindal Stainless Steels Ltd., Shyam DRI Ltd. Odisha Odisha Odisha 168 Utkal-B2 Monet Ispat Ltd. Odisha 22 ----- 1 2 3 4 169 Mandakini Monet Ispat Energy Ltd., Jindal Photo Ltd., Tata Power Company Ltd. Odisha 170 Utkal ‘E’ National Aluminium Corporation Odisha 171 Dulanga National Thermal Power Corporation Odisha 172 Utkal-D Odisha Mining Corporation Odisha 173 Nuagaon Telisahi Odisha Mining Corporation, Andhra Pradesh Mineral Development (APMDC) Odisha 174 Manoharpur Odisha Power Generation Corporation Odisha 175 Dipside Manoharpur Odisha Power Generation Corporation Odisha 176 Radhikapur (West) Rungta Mines Limited, OCL India Ltd., Ocean Ispat Ltd. 177 Rampia Sterlite Energy Ltd., (IPP), GMR Energy Ltd. (IPP), Arcelor Mittal India Ltd. (CPP), Lanco Group Ltd. (IPP), Navbharat Power Pvt. Ltd. (IPP), Reliance Energy Ltd. (IPP) 178 Dip Side of Rampia Sterlite Energy Ltd., (IPP), GMR Energy (IPP), Arcelor Mittal India Ltd. (CPP), Lanco Group Ltd. (IPP), Navbharat Power Pvt. Ltd. (IPP), Reliance Energy Ltd. (IPP) 179 North of Arkhapal Srirampur Strategic Energy Technology Systems Limited (SETSL) Odisha Odisha Odisha Odisha Odisha Odisha Odisha 180 Radhikapur(East) Tata Sponge Iron Ltd, Scaw Industries Ltd., SPS Sponge Iron Ltd. 181 Chendipada Uttar Pradesh Rajya Vidut Utpadan Limited, Chattishgarh Mineral Development Corporation Limited, Maharashtra State Power Generation Corporation Ltd. 182 Chendipada-II Uttar Pradesh Rajya Vidut Utpadan Limited, Chattishgarh Mineral Development Corporation Limited, Maharashtra State Power Generation Corporation Ltd. 183 Utkal-C Utkal Coal Ltd. (formerly ICCL) Odisha 184 Biharinath Bankura DRI Mining Manufacturers Co. Pvt. Ltd. West Bengal 185 Andal East Bhushan Steel Ltd., Jai Balaji Industries Ltd., Rashmi Cement Ltd. West Bengal 186 Barjora (North) Damodar Valley Corporation West Bengal 187 Kagra Joydev Damodar Valley Corporation West Bengal 188 Kasta (East) Damodar Valley Corporation West Bengal 189 Gourangdih ABC Himachal EMTA Power Ltd., JSW Steel Ltd. West Bengal 190 Moira-Madhujore. Ramsarup Lohh Udyog Ltd., Adhunik Corporation Ltd., Uttam Galva Steels Ltd., Howrah Gases Ltd.,Vikas Metal & Power Ltd., ACC Ltd West Bengal 191 Sarisatolli Calcutta Electricity Supply Corporation Ltd. West Bengal 23 ----- 1 2 3 4 192 Ardhagram Sova Ispat Limited, Jaibalaji Sponge Ltd. West Bengal 193 Tara (West) West Bengal Power Development Corporation Limited (WBPDCL) 194 Gangaramchak West Bengal Power Development Corporation Limited (WBPDCL) 195 Barjora West Bengal Power Development Corporation Limited (WBPDCL) 196 Gangaramchak- Bhadulia West Bengal Power Development Corporation Limited (WBPDCL) West Bengal West Bengal West Bengal West Bengal 197 Tara (East) West Bengal State Electricity Board West Bengal 198 Jaganathpur B West Bengal Mineral Development & Trading Corp. West Bengal 199 Sitarampur West Bengal Mineral Dev. & Trading Corp. Ltd. West Bengal 200 Trans Damodar West Bengal Mineral Dev. & Trading Corp. Ltd. West Bengal 201 Ichhapur West Bengal Mineral Dev. & Trading Corp. Ltd. West Bengal 202 Kulti West Bengal Mineral Dev. & Trading Corp. Ltd. West Bengal 203 Jaganathpur A West Bengal Mineral Dev. & Trading Corp. Ltd. West Bengal 204 East of Damogoria (Kalyaneshwari) West Bengal Power Development Corporation Limited (WBPDCL) 24 West Bengal ----- Sl. No. Name of Coal Mine/Block SCHEDULE II [See section 3(1)(q)] Name of Prior Allottee State whereCoal Mine/Block Located 1 2 3 4 1 Namchik Namphuk Arunachal Pradesh Mineral Dev. & Trading Corporation Arunachal Pradesh 2 Gare-Palma- IV/4 Jayaswal Neco Ltd. Chhattisgarh 3 Gare-Palma-IV/2 Jindal Power Ltd. (Now Jindal Steel & Power Ltd.) Chhattisgarh 4 Gare-Palma-IV/3 Jindal Power Ltd. (Now Jindal Steel & Power Ltd.) Chhattisgarh 5 Gare-Palma-IV/1 Jindal Strips Limited (Now Jindal Steel & Power Ltd.) Chhattisgarh 6 Gare-Palma-IV/5 Monet Ispat Ltd. Chhattisgarh 7 Chotia Prakash Industries Ltd. Chhattisgarh 8 Gare-Palma-IV/7 Raipur Alloys & Steel Ltd. (Now Sarda Energy and Mineral Limited) 9 Parsa East Rajasthan Rajya Vidyut Utpadan Nigam Ltd. (RRVUNL) 10 Kanta Basan Rajasthan Rajya Vidyut Utpadan Nigam Ltd. (RRVUNL) Chhattisgarh Chhattisgarh Chhattisgarh 11 Parbatpur-Central Electrosteel Castings Ltd. Jharkhand 12 Tokisud North GVK Power (Govindwal Sahib) Ltd. Ltd. Jharkhand 13 Pachwara Central Punjab State Electricity Board Jharkhand 14 Kathautia Usha Martin Ltd. Jharkhand 15 Pachwara North West Bengal Power Development Corporation Limited (WBPDCL) Jharkhand 16 Gotitoria (East) BLA Industries Ltd. Madhya Pradesh 17 Gotitoria (West) BLA Industries Ltd. Madhya Pradesh 18 Mandla North Jaipraskash Associates Ltd. Madhya Pradesh 19 Amelia (North) Madhya Pradesh State Mining Corporation Madhya Pradesh 20 Bicharpur Madhya Pradesh State Mining Corporation Ltd. (MPSMC) Madhya Pradesh 21 Sial Ghoghri Prism Cement Limited Madhya Pradesh 22 Marki Mangli-I B.S. Ispat Ltd. Maharashtra 23 Baranj - I Karnataka Power Corp. Ltd. (KPCL) Maharashtra 24 Baranj - II Karnataka Power Corp. Ltd. (KPCL) Maharashtra 25 Baranj - III Karnataka Power Corp. Ltd. (KPCL) Maharashtra 26 Baranj - IV Karnataka Power Corp. Ltd. (KPCL) Maharashtra 27 Kiloni Karnataka Power Corp. Ltd. (KPCL) Maharashtra 25 ----- 1 2 3 4 28 Manora Deep Karnataka Power Corp. Ltd. (KPCL) Maharashtra 29 Marki Mangli-II Shree Veerangana Steels Limited. Maharashtra 30 Marki Mangli-III Shree Veerangana Steels Limited. Maharashtra 31 Belgaon Sunflag Iron & Steel Co. Ltd Maharashtra 32 Talabira-I Hindalco Industries Ltd. Odisha 33 Barjora (North) Damodar Valley Corporation West Bengal 34 Kagra Joydev Damodar Valley Corporation West Bengal 35 Sarisatolli Calcutta Electricity Supply Corporation Ltd. West Bengal 36 Ardhagram Sova Ispat Limited, Jai Balaji Sponge Ltd. West Bengal 37 Tara (West) West Bengal Power Development Corporation Limited (WBPDCL) 38 Gangaramchak West Bengal Power Development Corporation Limited (WBPDCL) 39 Barjora West Bengal Power Development Corporation Limited (WBPDCL) 40 Gangaramchak- Bhadulia West Bengal Power Development Corporation Limited (WBPDCL) West Bengal West Bengal West Bengal West Bengal 41 Tara (East) West Bengal State Electricity Board West Bengal 42 Trans Damodar West Bengal Mineral Dev. & Trading Corp. Ltd. West Bengal 26 ----- SI. No. Name of Coal Mine/Block SCHEDULE III [See section 3(1) (r)] Name of Prior Allottee State where Coal Mine/Block Located 1 2 3 4 1 Durgapur-II/ Taraimar Bharat Aluminium Company Ltd. Chhattisgarh 2 Durgapur-II /Sarya DB Power Ltd. Chhattisgarh 3 Gare-Palma Sector-III Goa Industrial Development Corporation Chhattisgarh 4 Gare-Palma IV/8 Jayaswal Neco Ltd. Chhattisgarh 5 Talaipali National Thermal Power Ltd. Chhattisgarh 6 Chatti Bariatu National Thermal Power Ltd. Jharkhand 7 Mahan Essar Power Ltd., Hindalco Industries Ltd. Madhya Pradesh 8 Mandla South Madhya Pradesh State Mining Corporation Ltd. Madhya Pradesh 9 Dongeri Tal-II Madhya Pradesh State Mining Corporation Ltd. (MPSMC) Madhya Pradesh 10 Kosar Dongergaon Chaman Metaliks Ltd. Maharashtra 11 Nerad Malegaon Gupta Metallics & Power Ltd., Gupta Coalfields & Washeries Ltd. Maharashtra 12 Marki Mangli-IV Shree Veerangana Steel Limited. Maharashtra 13 Jamkhani Bhushan Ltd. Odisha 14 Utkal B 1 Jindal Steel & Power Ltd. Odisha 15 Utkal-B 2 Monet Ispat Ltd. Odisha 16 Mandakini Monet Ispat Energy Ltd., Jindal Photo Ltd., Tata Power Company Ltd. Odisha 17 Utkal-C Utkal Coal Ltd. (formerly ICCL) Odisha 18 Brinda Abhijeet Infrastructure Pvt. Ltd. Jharkhand 19 Sasai Abhijeet Infrastructure Pvt. Ltd. Jharkhand 20 Meral Abhijeet Infrastructure Pvt. Ltd. Jharkhand 21 Moitra Jayaswal Neco Ltd Jharkhand 22 Jitpur Jindal Steel & Power Ltd. Jharkhand 23 Rohne JSW Steel Ltd., Bhushan Power & Steel Ltd., Jai Balaji Industries Ltd. Jharkhand 24 Dumri Nilachal Iron & Power Ltd., Bajrang Ispat Pvt. Ltd. Jharkhand 25 Kerandari National Thermal Power Ltd. Jharkhand 26 Sitanala Steel Authority of India Ltd. Jharkhand 27 Ganeshpur Tata Steel Ltd., Adhunik Thermal Energy Jharkhand 27 ----- 1 2 3 4 28 Badam Tenughat Vidyut Nigam Limited Jharkhand 29 Tara Chhattisgarh Mineral Development Corporation Ltd. Chhattisgarh 30 Lohari Usha Martin Ltd. Jharkhand 31 Dulanga National Thermal Power Corporation Odisha 32 Manoharpur Odisha Power Generation Corporation Odisha 28 ----- SCHEDULE IV (See section 28) **PART A** THE COAL MINES (NATIONALISATION) ACT, 1973 (26 OF 1973) **1. Amendment of section IA.—In the Coal Mines (Nationalisation) Act, 1973 (herein referred to as** the principal Act), in sub-section (1) of section 1A, after the word and figure “section 3”, the word, figure and letter “, section 3A” shall be inserted. **2. Insertion of new section 3A.—After section 3 of the principal Act, the following section shall be** inserted, namely:— **‘3A. Mining operation by company and others.—(1) Notwithstanding anything contained in** this Act, any person being— (a) a Government company or corporation or a joint venture company formed by such company or corporation or between the Central Government or the State Government, as the case may be, or any other company incorporated in India; or (b) a company or a joint venture company formed by two or more companies, may carry on coal mining operations in India, in any form either for own consumption, sale or for any other purpose in accordance with the prospecting licence or mining lease, as the case may be. (2) The Central Government may, with a view to rationalise such coal mines so as to ensure the coordinated and scientific development and utilisation of coal resources consistent with the growing requirements of the country, from time to time, prescribe— (i) the coal mines or coal bearing areas and their location; (ii) the minimum size of the coal mine or coal bearing areas; (iii) such other conditions, which in the opinion of that Government may be necessary for the purpose of coal mining operations or mining for sale by a company. _Explanation.—For the purposes of this section, “company” means a company as defined in clause_ (20) of section 2 of the Companies Act, 2013 (18 of 2013).’. **3. Amendment of section 34.—In section 34 of the principal Act, in sub-section (2), after clause (a),** the following clause shall be inserted, namely:— “(aa) the coal mines or coal bearing areas and their location, the minimum size of the coal mine or coal bearing areas, and such other conditions which may be necessary for the purpose of coal mining operations including mining for sale by a company under sub-section (2) of section 3A.”. **PART B** THE MINESAND MINERALS (DEVELOPMENT AND REGULATION) ACT, 1957 (67 OF 1957) **1.Substitution of new section for section 11A.—In the Mines and Minerals (Development and** Regulation) Act, 1957 (herein referred to as the principal Act), for section 11A, the following section shall be substituted, namely:— **‘11A. Granting of reconnaissance permit, prospecting lincence or mining lease.—(1)** Notwithstanding anything contained in this Act, the Central Government may, for the purpose of granting reconnaissance permit, prospecting licence or mining lease in respect of any area containing 29 ----- coal or lignite, select any of the following companies through auction by competitive bidding, on such terms and conditions as may be prescribed, namely:— (a) a Government company or corporation or a joint venture company formed by such company or corporation or between the Central Government or the State Government, as the case may be, or any other company incorporated in India; or (b) a company or a joint venture company formed by two or more companies, that carry on coal mining operations in India, in any form either for own consumption, sale or for any other purpose in accordance with the permit, prospecting licence or mining lease, as the case may be. (2) The Central Government may, with a view to rationalise coal and lignite mines referred to in sub section (1), so as to ensure the coordinated and scientific development and utilisation of resources consistent with the growing requirements of the country, from time to time, prescribe— (i) the details of mines and their location; (ii) the minimum size of such mines; (iii) such other conditions, which in the opinion of that Government may be necessary for the purpose of mining operations or mining for sale by a company. (3) The State Government shall grant such reconnaissance permit, prospecting licence or mining lease in respect of any area containing coal or lignite to such company as selected through auction by competitive bidding or otherwise under this section: Provided that the auction by competitive bidding under this section shall not be applicable to an area containing coal or lignite— (a) where such area is considered for allocation to a Government company or corporation or a joint venture company formed by such company or corporation or between the Central Government or the State Government, as the case may be; (b) where such area is considered for allocation to a company or corporation or that has been awarded a power project on the basis of competitive bids for tariff (including Ultra Mega Power Projects). _Explanation.—For the purposes of this section, “company” means a company as defined in clause_ (20) of section 2 of the Companies Act, 2013 (18 of 2013).'. **2. Amendment of section 13.—In section 13 of the principal Act, in sub-section (2), for clause (d),** the following clause shall be substituted, namely:— “(d) the terms and conditions of auction by competitive bidding, the details of mines and their location, the minimum size of such mines and such other conditions which may be necessary for the purpose of coal mining operations including mining for sale by a company under sub-section (1) and sub-section (2) of section 11A.”. ———— 30 -----

13-May-2015

17

The Repealing and Amending Act, 2015

https://www.indiacode.nic.in/bitstream/123456789/12142/1/a2015___17.pdf

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# THE REPEALING AND AMENDING ACT, 2015 _________ ARRANGEMENT OF SECTIONS _________ SECTIONS 1. Short title. 2. Repeal of enactments. 3. Amendment of certain enactments. 4. Savings. THE FIRST SCHEDULE. THE SECOND SCHEDULE. 1 ----- THE REPEALING AND AMENDING ACT, 2015 ACT NO. 17 OF 2015 # An Act to repeal certain enactments and to amend certain other enactments. [13th May, 2015.] BE it enacted by Parliament in the Sixty-sixth Year of the Republic of India as follows:— **1.** **Short title.** **— This Act may be called the Repealing and Amending Act, 2015.** **2.** **Repeal of certain enactments.— The enactments specified in the First Schedule are hereby** repealed to the extent mentioned in the fourth column thereof. **3.** **Amendment of certain enactments.—** The enactments specified in the Second Schedule are hereby amended to the extent and the manner mentioned in the fourth column thereof. **4. Saving.— The repeal by this Act of any enactment shall not affect any Act in which such** enactment has been applied, incorporated or referred to; and this Act shall not affect the validity, invalidity, effect or consequences of anything already done or suffered, or any right, title, obligation or liability already acquired, accrued or incurred, or any remedy or proceeding in respect thereof, or any release or discharge of or from any debt, penalty, obligation, liability, claim or demand, or any indemnity already granted, or the proof of any past act or thing; nor shall this Act affect any principle or rule of law, or established jurisdiction, form or course of pleading, practice or procedure, or existing usage, custom, privilege, restriction, exemption, office or appointment, notwithstanding that the same respectively may have been in any manner affirmed, recognised or derived by, in or from any enactment hereby repealed; nor shall the repeal by this Act of any enactment provide or restore any jurisdiction, office, custom, liability, right, title, privilege, restriction, exemption, usage, practice, procedure or other matter or thing not now existing or in force. 2 ----- THE FIRST SCHEDULE (See Section 2) REPEALS Year No. Short title Extent of repeal 1897 4 The Indian Fisheries Act, 1897 The whole. 1947 47 The Foreign Jurisdiction Act, 1947 The whole. 1978 49 The Sugar Undertakings (Taking Over of Management) Act, 1978 The whole. 1999 30 The Representation of the People (Amendment) Act, 1999 The whole. 1999 33 The Indian Majority (Amendment) Act, 1999 The whole. 1999 34 The Administrators-General (Amendment) Act, 1999 The whole. 1999 36 The Notaries (Amendment) Act, 1999 The whole. 1999 39 The Marriage Laws (Amendment) Act, 1999 The whole. 2001 30 The Repealing and Amending Act, 2001 The whole. 2001 49 The Mariage Laws (Amendment) Act, 2001 The whole. 2001 51 The Indian Divorce (Amendment) Act, 2001 The whole. 2002 26 The Indian Succession (Amendment) Act, 2002 The whole. 2002 37 The Legal Services Authorities (Amendment ) Act, 2002 The whole. 2002 72 The Representation of the People (Third Amendment) Act, 2002 The whole. 2003 3 The Transfer of Property (Amendment) Act, 2002 The whole. 2003 4 The Indian Evidence (Amendment) Act, 2002 The whole. 2003 6 The Representation of the People (Second Amendment) Act, 2002 The whole. 2003 9 The Representation of the People (Amendment) Act, 2002 The whole. 2003 24 The Election Laws (Amendment) Act, 2003 The whole. 2003 40 The Representation of the People (Amendment) Act, 2003 2003 46 The Election and Other Related Laws (Amendment) Act, 2003 The whole. The whole. 2003 50 The Marriage Laws (Amendment) Act, 2003 The whole. 2004 2 The Representation of the People (Second Amendment) Act, 2003 3 The whole. ----- Year No. Short title Extent of repeal 2004 3 The Delimitation (Amendment) Act, 2003 The whole. 2005 4 The Delegated Legislation Provisions (Amendment) Act, 2004 The whole. 2005 39 The Hindu Succession (Amendment) Act, 2005 The whole. 2006 31 The Parliament (Prevention of Disqualification) Amendment Act, 2006 The whole. 2008 9 The Delimitation (Amendment) Act, 2008 The whole. 2008 10 The Representation of the People (Amendment) Act, 2008 2009 41 The Representation of the People (Amendment) Act, 2009 The whole. The whole. 2010 30 The Personal Laws (Amendment) Act, 2010 The whole. 2010 36 The Representation of the People (Amendment) Act, 2010 The whole. 2012 29 The Anand Marriage (Amendment) Act, 2012 The whole. 2012 33 The Administrators-General (Amendment) Act, 2012 The whole. 2013 28 The Parliament (Prevention of Disqualification) Amendment Act, 2013 4 The whole. ----- THE SECOND SCHEDULE (See section 3) AMENDMENTS Year No. Short title Amendments 2013 25 The Prohibition of Employment as Manual Scavengers and their Rehabilitation Act, 2013 In the proviso to sub-section (3) of section 1, for the words “the notification”, the words “the said notification” shall be substituted. 2014 17 The Whistle Blowers Protection Act, 2011 (a) In the Enacting Formula, for the words “Sixty-second Year”, the words “Sixty-fifth Year” shall be substituted; and (b) in sub-section (1) of section 1, for the figures “2011”, the figures “2014” shall be substituted. 5 -----

14-May-2015

19

The Repealing and Amending (Second) Act, 2015

https://www.indiacode.nic.in/bitstream/123456789/12143/1/a2015----19.pdf

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# THE REPEALING AND AMENDING (SECOND) ACT, 2015 ## _________ ARRANGEMENT OF SECTIONS _________ SECTIONS 1. Short title. 2. Repeal of certain enactments. 3. Amendment of certain enactments. 4. Savings. THE FIRST SCHEDULE. THE SECOND SCHEDULE. ----- # THE REPEALING AND AMENDING (SECOND) ACT, 2015 ACT NO. 19 OF 2015 [14th May, 2015.] # An Act to repeal certain enactments and to amend certain other enactments. ## BE it enacted by Parliament in the Sixty-sixth Year of the Republic of India as follows:— 1. Short title. — This Act may be called the Repealing and Amending (Second) Act, 2015. 2. Repeal of certain enactments.—The enactments specified in the First Schedule are hereby repealed to the extent mentioned in the fourth column thereof. 3. Amendment of certain enactments.—The enactments specified in the Second Schedule are hereby amended to the extent and the manner mentioned in the fourth column thereof. 4. Savings.— The repeal by this Act of any enactment shall not affect any Act in which such enactment has been applied, incorporated or referred to; and this Act shall not affect the validity, invalidity, effect or consequences of anything already done or suffered, or any right, title, obligation or liability already acquired, accrued or incurred, or any remedy or proceeding in respect thereof, or any release or discharge of or from any debt, penalty, obligation, liability, claim or demand, or any indemnity already granted, or the proof of any past act or thing; nor shall this Act affect any principle or rule of law, or established jurisdiction, form or course of pleading, practice or procedure, or existing usage, custom, privilege, restriction, exemption, office or appointment, notwithstanding that the same respectively may have been in any manner affirmed, recognised or derived by, in or from any enactment hereby repealed; nor shall the repeal by this Act of any enactment revive or restore any jurisdiction, office, custom, liability, right, title, privilege, restriction, exemption, usage, practice, procedure or other matter or thing not now existing or in force. ----- THE FIRST SCHEDULE (See section 2) REPEALS Year No. Short title Extent of repeal 1999 1 The Export-Import Bank of India (Amendment) Act, 1998 The whole. 1999 7 The High Court and Supreme Court Judges (Salaries and Conditions of Service) Amendment Act, 1998 1999 16 The Salary, Allowances and Pension of Members of Parliament (Amendment) Act, 1999 2000 1 The Recovery of Debts Due to Banks and Financial Institutions (Amendment) Act, 2000 2000 7 The Small Industries Development Bank of India (Amendment) Act, 2000 The whole. The whole. The whole. The whole. 2000 12 The Food Corporations (Amendment) Act, 2000 The whole. 2000 15 The National Housing Bank (Amendment) Act, 2000 The whole. 2000 17 The Salary, Allowances and Pension of Members of Parliament (Amendment) Act, 2000 2000 18 The Leaders and Chief Whips of Recognised Parties and Groups in Parliament (Facilities) Amendment Act, 2000 The whole. The whole. 2000 22 The Major Port Trusts (Amendment) Act, 2000 The whole. 2000 23 The Insecticides (Amendment) Act, 2000 The whole. 2000 35 The Border Security Force (Amendment) Act, 2000 The whole. 2000 39 The State Financial Corporations (Amendment) Act, 2000 The whole. 2000 44 The Multimodal Transportation of Goods (Amendment) Act, 2000 2000 55 The National Bank for Agriculture and Rural Development (Amendment) Act, 2000 The whole. The whole. 2001 10 The Chit Funds (Amendment) Act, 2001 The whole. 2001 23 The Warehousing Corporations (Amendment) Act, 2001 The whole. 2001 27 The Food Corporations (Amendment) Act, 2001 The whole. 2001 38 The Government of Union Territories and the Government of National Capital Territory of Delhi (Amendment) Act, 2001 The whole. ----- Year No. Short title Extent of repeal 2001 40 The Inland Waterways Authority of India (Amendment) Act, 2001 2001 46 The Salary, Allowances and Pension of Members of Parliament (Amendment) Act, 2001 The whole. The whole. 2001 54 The Explosive Substance (Amendment) Act, 2001 The whole. 2002 14 The Inter-State Water Disputes (Amendment) Act, 2002 The whole. 2002 29 The Salaries and Allowances of Officers of Parliament and Leaders of Opposition in Parliament (Amendment) Act, 2002 The whole. 2002 30 The Sugar Development Fund (Amendment) Act, 2002 The whole. 2002 31 The Salaries and Allowances of Officers of Parliament (Second Amendment) Act, 2002 2002 34 The Salary, Allowances and Pension of Members of Parliament (Amendment) Act, 2002 2002 40 The General Insurance Business (Nationalisation) Amendment Act, 2002 The whole. The whole. The whole. 2002 42 The Insurance (Amendment) Act, 2002 The whole. 2002 51 The Homoeopathy Central Council (Amendment) Act, 2002 2002 52 The Indian Medicine Central Council (Amendment) Act, 2002 2002 55 The Negotiable Instruments (Amendment and Miscellaneous Provisions) Act, 2002 2002 56 The Salaries and Allowances of Officers of Parliament and Leaders of Opposition in Parliament (Second Amendment) Act, 2002 The whole. The whole. The whole. The whole. 2002 62 The Consumer Protection (Amendment) Act, 2002 The whole. 2003 7 The High Court Judges (Salaries and Conditions of Service) Amendment Act, 2002 2003 8 The Supreme Court Judges (Salaries and Conditions of Service) Amendment Act, 2002 2003 10 The Scheduled Castes and Scheduled Tribes Orders (Amendment) Act, 2002 The whole. The whole. The whole. 2003 11 The Companies (Second Amendment) Act, 2002 The whole. 2003 35 The Delhi High Court (Amendment) Act, 2003 The whole. 2003 37 The Essential Commodities (Amendment) Act, 2003 The whole. 2003 44 The Sixth Schedule to the Constitution (Amendment) Act, 2003 2003 48 The National Bank for Agriculture and Rural Development (Amendment) Act, 2003 The whole. The whole. 2003 51 The Railways (Second Amendment) Act, 2003 The whole. ----- Year No. Short title Extent of repeal 2003 58 The Indian Medicine Central Council (Amendment) Act, 2003 The whole. 2003 59 The Merchant Shipping (Amendment) Act, 2003 The whole. 2004 4 The Prevention of Terrorism (Amendment) Act, 2003 The whole. 2004 6 The Citizenship (Amendment) Act, 2003 The whole. 2004 9 The Salary, Allowances and Pension of Members of Parliament (Amendment) Act, 2003 The whole. 2004 16 The Foreigners (Amendment) Act, 2004 The whole. 2004 24 The Banking Regulation (Amendment) and Miscellaneous Provisions Act, 2004 2004 30 The Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Act, 2004 2005 19 The Government of Union Territories and the Government of National Capital Territory of Delhi (Amendment) Act, 2005 The whole. The whole. The whole. 2005 32 The Citizenship (Amendment) Act, 2005 The whole. 2005 40 The Sree ChitraTirunal Institute for Medical Sciences and Technology, Trivandrum (Amendment) Act, 2005 The whole. 2005 45 The Warehousing Corporations (Amendment) Act, 2005 The whole. 2005 46 The High Court and Supreme Court Judges (Salaries and Conditions of Service) Amendment Act, 2005 The whole. 2006 2 The Criminal Law (Amendment) Act, 2005 The whole. 2006 5 The Government of Union Territories and the Government of National Capital Territory of Delhi (Amendment) Act, 2006 The whole. 2006 6 The Contempt of Courts (Amendment) Act, 2006 The whole. 2006 26 The Reserve Bank of India (Amendment) Act, 2006 The whole. 2006 40 The Salary, Allowances and Pension of Members of Parliament (Amendment) Act, 2006 2006 45 The Banking Companies (Acquisition and Transfer of Undertakings and Financial Institutions Laws (Amendment) Act, 2006 The whole. The whole. 2006 54 The Essential Commodities (Amendment) Act, 2006 Sections 2 to 5. 2007 17 The Banking Regulation (Amendment) Act, 2007 The whole. 2007 18 The National Tax Tribunal (Amendment) Act, 2007 The whole. 2007 30 The State Bank of India (Subsidiary Banks Laws) Amendment Act, 2007 The whole. 2007 32 The State Bank of India (Amendment) Act, 2007 The whole. 2007 35 The Inland Vessels (Amendment) Act, 2007 The whole. 2007 40 The Merchant Shipping (Amendment) Act, 2007 The whole. ----- Year No. Short title Extent of repeal 2008 4 The Sugar Development Fund (Amendment) Act, 2008 The whole. 2008 30 The Salaries and Allowances of Officers of Parliament (Amendment) Act, 2008 2009 5 The Code of Criminal Procedure (Amendment) Act, 2008 2009 11 The Supreme Court (Number of Judges) Amendment Act, 2008 2009 20 The Agricultural and Processed Food Products Export Development Authority (Amendment) Act, 2009 2009 23 The High Court and Supreme Court Judges (Salaries and Conditions of Service) Amendment Act, 2009 2009 48 The State Bank of Saurashtra (Repeal) and the State Bank of India (Subsidiary Banks) Amendment Act, 2009 The whole. The whole. The whole. The whole. The whole. Sections 3 to 11. 2010 27 The State Bank of India (Amendment) Act, 2010 The whole. 2010 37 The Salary, Allowances and Pension of Members of Parliament (Amendment) Act, 2010 2010 41 The Code of Criminal Procedure (Amendment) Act, 2010 2010 43 The Indian Medicine Central Council (Amendment) Act, 2010 2011 7 The State Bank of India (Subsidiary Banks) Amendment Act, 2011 2011 17 The State Bank of India (Subsidiary Banks Laws) Amendment Act, 2011 2012 5 The New Delhi Municipal Council (Amendment) Act, 2011 2012 8 The Life Insurance Corporation (Amendment) Act, 2011 2012 11 The Export-Import Bank of India (Amendment) Act, 2011 2012 26 The North-Eastern Areas (Reorganisation) and Other Related Laws (Amendment) Act, 2012 2012 36 The Chemical Weapons Convention (Amendment) Act, 2012 2013 1 The Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Act, 2012 The whole. The whole. The whole. The whole. The whole. The whole. The whole. The whole. The whole. The whole. The whole. 2013 4 The Banking Laws (Amendment) Act, 2012 The whole. 2013 27 The Wakf (Amendment) Act, 2013 The whole. ----- ## THE SECOND SCHEDULE (See section 3) AMENDMENTS Year No. Short title Amendments 2008 11 The Railways (Amendment) Act, 2008 In section 2,–– (i) the words and figure “section 2 of” shall be omitted; (ii) after the brackets and words “(hereinafter referred to as the principal Act)”, insert the words and figure “in section 2”. 2008 22 The Indian Maritime University In section 2, for the words “in all Statutes Act, 2008 made hereunder”, substitute the words “in the Statutes made thereunder”. ## 7 -----

26-May-2015

22

The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015

https://www.indiacode.nic.in/bitstream/123456789/2147/5/a2015-22.pdf

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# THE BLACK MONEY (UNDISCLOSED FOREIGN INCOME AND ASSETS) AND IMPOSITION OF TAX ACT, 2015 ____________ # ARRANGEMENT OF SECTIONS ____________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II BASIS OF CHARGE 3. Charge of tax. 4. Scope of total undisclosed foreign income and asset. 5. Computation of total undisclosed foreign income and asset. CHAPTER III TAX MANAGEMENT 6. Tax authorities. 7. Change of incumbent. 8. Powers regarding discovery and production of evidence. 9. Proceedings before tax authorities to be judicial proceedings. 10. Assessment. 11. Time limit for completion of assessment and reassessment. 12. Rectification of mistake. 13. Notice of demand. 14. Direct assessment or recovery not barred. 15. Appeals to the Commissioner (Appeals). 16. Procedure to be followed in appeal. 17. Powers of Commissioner (Appeals). 18. Appeals to Appellate Tribunal. 19. Appeal to High Court. 20. Case before High Court to be heard by not less than two Judges. 21. Appeal to Supreme Court. 22. Hearing before Supreme Court. 23. Revision of orders prejudicial to revenue. 24. Revision of other orders. 25. Tax to be paid pending appeal. 26. Execution of order for costs awarded by Supreme Court. 27. Amendment of assessment on appeal. 28. Exclusion of time taken for obtaining copy. 1 ----- SECTIONS 29. Filing of appeal by tax authority. 30. Recovery of tax dues by Assessing Officer. 31. Recovery of tax dues by Tax Recovery Officer. 32. Modes of recovery of tax dues. 33. Tax Recovery Officer by whom recovery of tax dues is to be effected. 34. Recovery of tax dues in case of a company in liquidation. 35. Liability of manager of a company. 36. Joint and several liability of participants. 37. Recovery through State Government. 38. Recovery of tax dues in pursuance of agreements with foreign countries or specified territory. 39. Recovery by suit or under other law not affected. 40. Interest for default in furnishing return and payment or deferment of advance tax. CHAPTER IV PENALTIES 41. Penalty in relation to undisclosed foreign income and asset. 42. Penalty for failure to furnish return in relation to foreign income and asset. 43. Penalty for failure to furnish in return of income, an information or furnish inaccurate particulars about an asset (including financial interest in any entity) located outside India. 44. Penalty for default in payment of tax arrear. 45. Penalty for other defaults. 46. Procedure. 47. Bar of limitation for imposing penalty. CHAPTER V OFFENCES AND PROSECUTIONS 48. Chapter not in derogation of any other law or any other provision of this Act. 49. Punishment for failure to furnish return in relation to foreign income and asset. 50. Punishment for failure to furnish in return of income, any information about an asset (including financial interest in any entity) located outside India. 51. Punishment for wilful attempt to evade tax. 52. Punishment for false statement in verification. 53. Punishment for abetment. 54. Presumption as to culpable mental state. 55. Prosecution to be at instance of Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner. 56. Offences by companies. 57. Proof of entries in records of documents. 58. Punishment for second and subsequent offences. 2 ----- CHAPTER VI TAX COMPLIANCE FOR UNDISCLOSED FOREIGN INCOME AND ASSETS SECTIONS 59. Declaration of undisclosed foreign asset. 60. Charge of tax. 61. Penalty. 62. Manner of declaration. 63. Time for payment of tax. 64. Undisclosed foreign asset declared not to be included in total income. 65. Undisclosed foreign asset declared not to affect finality of completed assessments. 66. Tax in respect of voluntarily disclosed asset not refundable. 67. Declaration not admissible in evidence against declarant. 68. Declaration by misrepresentation of facts to be void. 69. Exemption from wealth-tax in respect of assets specified in declaration. 70. Applicability of certain provisions of Income-tax Act and of Chapter V of Wealth-tax Act. 71. Chapter not to apply to certain persons. 72. Removal of doubts. CHAPTER VII GENERAL PROVISIONS 73. Agreement with foreign countries or specified territories. 74. Service of notice generally. 75. Authentication of notices and other documents. 76. Notice deemed to be valid in certain circumstances. 77. Appearance by approved valuer in certain matters. 78. Appearance by authorised representative. 79. Rounding off of income, value of asset and tax. 80. Congnizance of offences. 81. Assessment not to be invalid on certain grounds. 82. Bar of suits in civil courts. 83. Income-tax papers to be available for purposes of this Act. 84. Application of provisions of Income-tax Act. 85. Power to make rules. 86. Power to remove difficulties. 87. Amendment of section 2 of Act 54 of 1963. 88. Amendment of Act of 15 of 2003. 3 ----- # THE BLACK MONEY (UNDISCLOSED FOREIGN INCOME AND ASSETS) AND IMPOSITION OF TAX ACT, 2015 ACT NO. 22 OF 2015 [26th May, 2015.] # An Act to make provisions to deal with the problem of the Black money that is undisclosed foreign income and assets, the procedure for dealing with such income and assets and to provide for imposition of tax on any undisclosed foreign income and asset held outside India and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Sixty-sixth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Black Money** (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. (2) It extends to the whole of India. (3) Save as otherwise provided in this Act, it shall come into force on the 1st day of April, 2016. **2. Definitions.—In this Act, unless the context otherwise requires,—** (1) “Appellate Tribunal” means the Appellate Tribunal constituted under section 252 of the Income-tax Act; 1[(2) “assessee” means a person,— (a) being a resident in India within the meaning of section 6 of the Income-tax Act, 1961 (43 of 1961) in the previous year; or (b) being a non-resident or not ordinarily resident in India within the meaning of clause (6) of section 6 of the Income-tax Act, 1961 (43 of 1961) in the previous year, who was resident in India either in the previous year to which the income referred to in section 4 relates; or in the previous year in which the undisclosed asset located outside India was acquired: Provided that the previous year, in case of acquisition of undisclosed asset outside India, shall be determined without giving effect to the provisions of clause (c) of section 72;] (3) “assessment” includes reassessment; (4) “assessment year” means the period of twelve months commencing on the 1st day of April every year; (5) “Board” means the Central Board of Direct Taxes constituted under the Central Boards of Revenue Act, 1963 (54 of 1963); (6) “Income-tax Act” means the Income-tax Act, 1961 (43 of 1961); (7) “participant” means— (a) a partner in relation to a firm; or (b) a member in relation to an association of persons or body of individuals; (8) “prescribed” means prescribed by rules made under this Act; (9) “previous year” means— (a) the period beginning with the date of setting up of a business and ending with the date of the closure of the business or the 31st day of March following the date of setting up of such business, whichever is earlier; 1. Subs. by Act 23 of 2019, s. 205, for clause (2) (w.e.f. 1-7-2015). 4 ----- (b) the period beginning with the date on which a new source of income comes into existence and ending with the date of closure of the business or the 31st day of March following the date on which such new source comes into existence, whichever is earlier; (c) the period beginning with the 1st day of the financial year and ending with the date of discontinuance of the business other than business referred to in clause (b) or dissolution of an unincorporated body or liquidation of a company, as the case may be; or (d) the period of twelve months commencing on the 1st day of April of the relevant year in any other case, and which immediately precedes the assessment year. (10) “resident” means a person who is resident in India within the meaning of section 6 of the Income-tax Act; (11) “undisclosed asset located outside India” means an asset (including financial interest in any entity) located outside India, held by the assessee in his name or in respect of which he is a beneficial owner, and he has no explanation about the source of investment in such asset or the explanation given by him is in the opinion of the Assessing Officer unsatisfactory; (12) “undisclosed foreign income and asset” means the total amount of undisclosed income of an assessee from a source located outside India and the value of an undisclosed asset located outside India, referred to in section 4, and computed in the manner laid down in section 5; (13) “unincorporated body” means— (a) a firm; (b) an association of persons; or (c) a body of individuals; (14) “value of an undisclosed asset” shall have the meaning assigned to it in sub-section (2) of section 3; (15) all other words and expressions used herein but not defined and defined in the Income-tax Act shall have the meanings respectively assigned to them in that Act. CHAPTER II BASIS OF CHARGE **3. Charge of tax.—(1) There shall be charged on every assessee for every assessment year** commencing on or after the 1st day of April, 2016, subject to the provisions of this Act, a tax in respect of his total undisclosed foreign income and asset of the previous year at the rate of thirty per cent. of such undisclosed income and asset: Provided that an undisclosed asset located outside India shall be charged to tax on its value in the previous year in which such asset comes to the notice of the Assessing Officer. (2) For the purposes of this section, “value of an undisclosed asset” means the fair market value of an asset (including financial interest in any entity) determined in such manner as may be prescribed. 5 ----- **4. Scope of total undisclosed foreign income and asset.—(1) Subject to the provisions of this Act,** the total undisclosed foreign income and asset of any previous year of an assessee shall be,— (a) the income from a source located outside India, which has not been disclosed in the return of income furnished within the time specified in _Explanation_ 2 to sub-section (1) or under sub-section (4) or sub-section (5) of section 139 of the Income-tax Act; (b) the income, from a source located outside India, in respect of which a return is required to be furnished under section 139 of the Income-tax Act but no return of income has been furnished within the time specified in Explanation 2 to sub-section (1) or under sub-section (4) or sub-section (5) of section 139 of the said Act; and (c) the value of an undisclosed asset located outside India. (2) Notwithstanding anything contained in sub-section (1), any variation made in the income from a source outside India in the assessment or reassessment of the total income of any previous year, of the assessee under the Income-tax Act in accordance with the provisions of section 29 to section 43C or section 57 to section 59 or section 92C of the said Act, shall not be included in the total undisclosed foreign income. (3) The income included in the total undisclosed foreign income and asset under this Act shall not form part of the total income under the Income-tax Act. **5. Computation of total undisclosed foreign income and asset.—(1) In computing the total** undisclosed foreign income and asset of any previous year of an assessee,— (i) no deduction in respect of any expenditure or allowance or set off of any loss shall be allowed to the assessee, whether or not it is allowable in accordance with the provisions of the Income-tax Act; (ii) any income,— (a) which has been assessed to tax for any assessment year under the Income-tax Act prior to the assessment year to which this Act applies; or (b) which is assessable or has been assessed to tax for any assessment year under this Act, shall be reduced from the value of the undisclosed asset located outside India, if, the assessee furnishes evidence to the satisfaction of the Assessing Officer that the asset has been acquired from the income which has been assessed or is assessable, as the case may be, to tax. (2) The amount of deduction referred to in clause (ii) of sub-section (1) in case of an immovable property shall be the amount which bears to the value of the asset as on the first day of the financial year in which it comes to the notice of the Assessing Officer, the same proportion as the assessable or assessed foreign income bears to the total cost of the asset. _Illustration_ A house property located outside India was acquired by an assessee in the previous year 2009-10 for fifty lakh rupees. Out of the investment of fifty lakh rupees, twenty lakh rupees was assessed to tax in the total income of the previous year 2009-10 and earlier years. Such undisclosed asset comes to the notice of the Assessing Officer in the year 2017-18. If the value of the asset in the year 2017-18 is one crore rupees, the amount chargeable to tax shall be A-B=C where, A=Rs.1 crore, B=Rs. (100 x 20/50) lakh= Rs.40 lakh, C=Rs. (100-40) lakh=Rs.60 lakh. 6 ----- CHAPTER III TAX MANAGEMENT **6. Tax authorities.—(1) The income-tax authorities specified in section 116 of the Income-tax Act** shall be the tax authorities for the purposes of this Act. (2) Every such authority shall exercise the powers and perform the functions of a tax authority under this Act in respect of any person within his jurisdiction. (3) Subject to the provisions of sub-section (4), the jurisdiction of a tax authority under this Act shall be the same as he has under the Income-tax Act by virtue of orders or directions issued under section 120 of that Act (including orders or directions assigning the concurrent jurisdiction) or under any other provision of that Act. (4) The tax authority having jurisdiction in relation to an assessee who has no income assessable to income-tax under the Income-tax Act shall be the tax authority having jurisdiction in respect of the area in which the assessee resides or carries on its business or has its principal place of business. (5) Section 118 of the Income-tax Act and any notification issued thereunder shall apply in relation to the control of tax authorities as they apply in relation to the control of the corresponding income-tax authorities, except to the extent to which the Board may, by notification in the Official Gazette, otherwise direct in respect of any tax authority. **7. Change of incumbent.—(1) The tax authority who succeeds another authority as a result of** change in jurisdiction or for any other reason, shall continue the proceedings from the stage at which it was left by his predecessor. (2) The assessee in such a case may be given an opportunity of being heard, if he so requests in writing, before passing any order in his case. **8. Powers regarding discovery and production of evidence.—** (1) The prescribed tax authorities shall, for the purposes of this Act, have the same powers as are vested in a court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit in respect of the following matters, namely:— (a) discovery and inspection; (b) enforcing the attendance of any person, including any officer of a banking company and examining him on oath; (c) compelling the production of books of account and other documents; and (d) issuing commissions. (2) For the purposes of making any inquiry or investigation, the prescribed tax authority shall be vested with the powers referred to in sub-section (1), whether or not any proceedings are pending before it. (3) Any tax authority prescribed for the purposes of sub-section (1) or sub-section (2) may, subject to the rules made in this behalf, impound any books of account or other documents produced before it and retain them in its custody for such period as it thinks fit. (4) Any tax authority below the rank of Commissioner shall not— (a) impound any books of account or other documents without recording his reasons for doing so; or 7 ----- (b) retain in his custody any such books or documents for a period exceeding thirty days without obtaining the approval of the Principal Chief Commissioner or the Chief Commissioner or the Principal Commissioner or the Commissioner. **9. Proceedings before tax authorities to be judicial proceedings.—** (1) Any proceeding under this Act before a tax authority shall be deemed to be a judicial proceeding within the meaning of section 193 and section 228 and for the purposes of section 196 of the Indian Penal Code (45 of 1860). (2) Every tax authority shall be deemed to be a civil court for the purposes of section 195, but not for the purposes of Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). **10. Assessment.—(1) For the purposes of making an assessment or reassessment under this Act, the** Assessing Officer may, on receipt of an information from an income-tax authority under the Income-tax Act or any other authority under any law for the time being in force or on coming of any information to his notice, serve on any person, a notice requiring him on a date to be specified to produce or cause to be produced such accounts or documents or evidence as the Assessing Officer may require for the purposes of this Act and may, from time to time, serve further notices requiring the production of such other accounts or documents or evidence as he may require. (2) The Assessing Officer may make such inquiry, as he considers necessary, for the purpose of obtaining full information in respect of undisclosed foreign income and asset of any person for the relevant financial year or years. (3) The Assessing Officer, after considering such accounts, documents or evidence, as he has obtained under sub-section (1), and after taking into account any relevant material which he has gathered under sub-section (2) and any other evidence produced by the assessee, shall by an order in writing, assess [1][or reassess] the undisclosed foreign income and asset and determine the sum payable by the assessee. (4) If any person fails to comply with all the terms of the notice under sub-section (1), the Assessing Officer shall, after taking into account all the relevant material which he has gathered and after giving the assessee an opportunity of being heard, make the assessment [1][or reassessment] of undisclosed foreign income and asset to the best of his judgment and determine the sum payable by the assessee. **11. Time limit for completion of assessment and reassessment.—(1) No order of assessment or** reassessment shall be made under section 10 after the expiry of two years from the end of the financial year in which the notice under sub-section (1) of section 10 was issued by the Assessing Officer. (2) Notwithstanding anything contained in sub-section (1), an order of fresh assessment in pursuance of an order passed under section 18 setting aside or cancelling an assessment, may be made at any time before the expiry of the period of two years from the end of the financial year in which the order under section 18 is received by the Principal Commissioner or the Commissioner. (3) The provisions of sub-section (1) shall not apply to the assessment or reassessment made in consequence of, or to give effect to, any finding or direction contained in an order under section 15 or section 18 or section 19 or section 22 of this Act or in an order of any court in a proceeding otherwise than by way of appeal under this Act and such assessment or reassessment may, subject to the provisions of sub-section (2), be completed at any time, before the expiry of the period of two years from the end of the financial year in which such order is received by the Principal Commissioner or the Commissioner. _Explanation 1.—In computing the period of limitation for the purpose of this section—_ (i) the time taken in reopening the whole or any part of the proceeding; or (ii) the period during which the assessment proceeding is stayed by an order or injunction of any court; or 1. Ins. by Act 23 of 2019, s. 206 (w.e.f. 1-7-2015). 8 ----- (iii) the period commencing from the date on which a reference or first of the references for exchange of information is made by an authority competent under an agreement referred to in section 90 or section 90A of the Income-tax Act or under section 73 of this Act and ending with the date on which the Principal Commissioner or the Commissioner last receives, the information so requested or a period of one year, whichever is less, shall be excluded: Provided that where immediately after the exclusion of the aforesaid time or period, the period of limitation referred to in sub-sections (1), (2) and (3) available to the Assessing Officer for making an order of assessment or reassessment, as the case may be, is less than sixty days, such remaining period shall be extended to sixty days and the aforesaid period of limitation shall be deemed to be extended accordingly. _Explanation_ 2.—Where, by an order referred to in sub-section (3), any undisclosed foreign income and asset is excluded from the total undisclosed foreign income and asset for an assessment year in respect of an assessee, then, an assessment of such undisclosed foreign income and asset for another assessment year shall, for the purposes of section 10 and this section, be deemed to be one made in consequence of, or to give effect to, any finding or direction contained in the said order. **12. Rectification of mistake.—(1) A tax authority may amend any order passed by it under this Act** so as to rectify any mistake apparent from the record. (2) No amendment under this section shall be made after a period of four years from the end of the financial year in which the order sought to be amended was passed. (3) The tax authority shall not make any amendment, which has the effect of enhancing the undisclosed foreign income and asset or reducing a refund or otherwise increasing the liability of the assessee, unless the authority concerned has given to the assessee an opportunity of being heard. (4) The tax authority concerned may make an amendment under this section— (a) on its own motion; or (b) on an application made to it by the assessee or, as the case may be, by the Assessing Officer. (5) Any application received by the tax authority for amendment of an order shall be decided within a period of six months from the end of the month in which such application is received by it. (6) In a case where the order has been made in an appeal or revision, the power of the tax authority to amend the order shall be restricted to matters other than those decided in appeal or revision. **13. Notice of demand.—Any sum payable in consequence of any order made under this Act shall be** demanded by a tax authority by serving upon the assessee a notice of demand in such form and manner as may be prescribed. **14. Direct assessment or recovery not barred.—Nothing in this Chapter shall prevent either the** direct assessment of the person on whose behalf or for whose benefit the undisclosed income from a source located outside India is receivable or undisclosed asset located outside India is held, or the recovery from such person of the tax or any other sum of money payable in respect of such income and asset. **15. Appeals to the Commissioner (Appeals).—(1) Any person, – (a) objecting to the amount of tax** on undisclosed foreign income and asset for which he is assessed by the Assessing Officer; or (b) denying his liability to be assessed under this Act; or (c) objecting to any penalty imposed by the Assessing Officer; or (d) objecting to an order of rectification having the effect of enhancing the assessment or 9 ----- reducing the refund; or (e) objecting to an order refusing to allow the claim made by the assessee for a rectification under section 12, may appeal to the Commissioner (Appeals). (2) Every appeal shall be filed in such form and verified in such manner and be accompanied by a fee as may be prescribed. (3) An appeal shall be presented within a period of thirty days from— (a) the date of service of the notice of demand relating to the assessment or penalty, or (b) the date on which the intimation of the order sought to be appealed against is served in any other case. (4) The Commissioner (Appeals) may admit an appeal after the expiration of the period referred to in sub-section (3)— (a) if he is satisfied that the appellant had sufficient cause for not presenting it within that period; and (b) the delay in preferring the appeal does not exceed a period of one year. (5) The Commissioner (Appeals) shall hear and determine the appeal and, subject to the provisions of this Act, pass such orders as he thinks fit and such orders may include an order enhancing the assessment or penalty: Provided that an order enhancing the assessment or penalty shall not be made unless the assessee has been given a reasonable opportunity of being heard. **16. Procedure to be followed in appeal.—(1) The Commissioner (Appeals) shall fix a date and** place for the hearing of the appeal, and shall give notice of the same to the appellant and the Assessing Officer against whose order the appeal is preferred. (2) The following shall have the right to be heard at the hearing of the appeal, namely:— (a) the appellant, either in person or by an authorised representative; (b) the Assessing Officer, either in person or by a representative. (3) The Commissioner (Appeals) may adjourn the hearing of the appeal whenever he considers it necessary or expedient to do so. (4) The Commissioner (Appeals) may, before disposing of any appeal, make such further inquiry as he thinks fit. (5) The Commissioner (Appeals) may, during the proceedings before him, direct the Assessing Officer to make an inquiry and report to him on the points arising out of any question of law or fact. (6) The Commissioner (Appeals) may, at the hearing of an appeal, allow the appellant to go into any ground of appeal not specified in the grounds of appeal, if the Commissioner (Appeals) is satisfied that the omission was not wilful or unreasonable. (7) The order of the Commissioner (Appeals) disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reasons therefor. (8) Every appeal preferred under section 15 shall be heard and disposed of by the Commissioner (Appeals) as expeditiously as possible and endeavour shall be made to dispose of such appeal within a period of one year from the end of the financial year in which the appeal is preferred. 10 ----- (9) On the disposal of the appeal, the Commissioner (Appeals) shall communicate the order passed by him to the assessee and to the Principal Chief Commissioner or the Chief Commissioner or the Principal Commissioner or the Commissioner. **17. Powers of Commissioner (Appeals).—(1) In disposing of an appeal, the Commissioner** (Appeals) shall have the following powers, namely:— (a) in an appeal against an order of assessment, he may confirm, reduce, enhance or annul the assessment; (b) in an appeal against an order imposing a penalty, he may confirm or cancel [1][or vary such order either to enhance or reduce the penalty]; (c) in any other case, he may determine the issues arising in the appeal and pass such orders thereon, as he thinks fit. (2) The Commissioner (Appeals) may consider and decide any matter which was not considered by the Assessing Officer. (3) The Commissioner (Appeals) shall not enhance an assessment or a penalty unless the appellant has been given an opportunity of being heard. (4) In disposing of an appeal, the Commissioner (Appeals) may consider and decide any matter arising out of the proceedings in which the order appealed against was passed, notwithstanding that such matter was not raised before him by the appellant. **18. Appeals to Appellate Tribunal.—(1) Any assessee aggrieved by an order passed by the** Commissioner (Appeals) under section 15, or an order passed by the Principal Commissioner or the Commissioner under any provision of this Act, may appeal to the Appellate Tribunal against such order. (2) The Principal Commissioner or the Commissioner may, if he objects to any order passed by the Commissioner (Appeals) under any provision of this Act, direct the Assessing Officer to appeal to the Appellate Tribunal against the order. (3) Every appeal under sub-section (1) or sub-section (2) shall be filed within a period of sixty days from the date on which the order sought to be appealed against is communicated to the assessee or to the Principal Commissioner or the Commissioner, as the case may be. (4) The Assessing Officer or the assessee, as the case may be, on receipt of notice that an appeal against the order of the Commissioner (Appeals) has been preferred under sub-section (1) or sub-section (2) by the other party may, notwithstanding that he may not have appealed against such order or any part thereof, within thirty days of the receipt of the notice, file a memorandum of cross-objections, verified in the prescribed manner, against any part of the order of the Commissioner (Appeals), and such memorandum shall be disposed of by the Appellate Tribunal as if it were an appeal presented within the time specified in sub-section (3). (5) The Appellate Tribunal may admit an appeal or permit the filing of a memorandum of cross objections after the expiry of the period referred to in sub-section (3) or sub-section (4), if — (a) it is satisfied that there was sufficient cause for not presenting it within that period; and (b) the delay in filing the appeal does not exceed a period of one year. (6) An appeal to the Appellate Tribunal shall be filed in such form, and verified in such manner, and shall, except in the case of an appeal referred to in sub-section (2) or a memorandum of cross-objections referred to in sub-section (4), be accompanied by a fee as may be prescribed. 1. Subs. by Act 23 of 2019, s. 207, for “such order” (w.e.f. 1-9-2019). 11 ----- (7) Subject to the provisions of this Act, in hearing and making an order on any appeal under this section, the Appellate Tribunal shall exercise the same powers and follow the procedure as it exercises and follows in hearing and making an order on any appeal under the Income-tax Act. **19. Appeal to High Court.—(1) An appeal shall lie to the High Court from every order passed in** appeal by the Appellate Tribunal, if the High Court is satisfied that the case involves a substantial question of law. (2) The Principal Chief Commissioner or the Chief Commissioner or the Principal Commissioner or the Commissioner or an assessee, may file an appeal to the High Court on being aggrieved by any order passed by the Appellate Tribunal and such appeal shall be — (a) filed within a period of one hundred and twenty days from the date on which the order appealed against is received by the Principal Chief Commissioner or the Chief Commissioner or the Principal Commissioner or the Commissioner or the assessee; (b) in the form of a memorandum of appeal precisely stating therein the substantial question of law involved. (3) The High Court may admit an appeal after the expiry of the period of one hundred and twenty days referred to in sub-section (2), if it is satisfied that there was sufficient cause for not filing the appeal within that period. (4) If the High Court is satisfied that a substantial question of law is involved in any case, it shall formulate that question. (5) The appeal shall be heard only on the question so formulated, and the respondents shall, at the hearing of the appeal, be allowed to argue that the case does not involve such question. (6) Notwithstanding anything in sub-sections (4) and (5), the High Court may exercise its power to hear the appeal on any other substantial question of law not formulated by it, if it is satisfied that the case involves such question of law. (7) The High Court shall decide the question of law so formulated and deliver such judgment thereon containing the grounds on which such decision is founded and may award such cost as it deems fit. (8) The High Court may determine any issue which — (a) has not been determined by the Appellate Tribunal; or (b) has been wrongly determined by the Appellate Tribunal, by reason of a decision on the question of law referred to in sub-section (1). (9) The provisions of the Code of Civil Procedure, 1908 (5 of 1908), relating to appeals to the High Court shall, so far as may be, apply in the case of appeals under this section. (10) When the High Court delivers a judgment in an appeal filed before it under sub-section (7), effect shall be given to the order passed on the appeal by the Assessing Officer on the basis of a certified copy of the judgment. **20. Case before High Court to be heard by not less than two Judges.—(1) An appeal filed before** the High Court shall be heard by a Bench of not less than two Judges of the High Court and shall be decided in accordance with the opinion of such Judges or if the Bench is of more than two Judges, by the majority of such Judges. 12 ----- (2) Where there is no such majority, the Judges shall state the point of law upon which they differ and the case shall then be heard upon that point only by one or more of the other Judges of the High Court and such point shall be decided according to the opinion of the majority of the Judges who have heard the case including those who first heard it. **21. Appeal to Supreme Court.—An appeal shall lie to the Supreme Court from any judgment of the** High Court delivered under section 19 which the High Court certifies to be a fit case for appeal to the Supreme Court. **22. Hearing before Supreme Court.—(1) The provisions of the Code of Civil Procedure, 1908** (5 of 1908), relating to appeals to the Supreme Court shall, so far as may be, apply in the case of appeals under section 21 as they apply in the case of appeals from decrees of a High Court. (2) The costs of the appeal shall be in the discretion of the Supreme Court. (3) Where the judgment of the High Court is varied or reversed in the appeal, effect shall be given to the order of the Supreme Court in the manner provided in sub-section (10) of section 19. **23. Revision of orders prejudicial to revenue.—(1) The Principal Commissioner or the** Commissioner may, for the purposes of revising any order passed in any proceeding under this Act before any tax authority subordinate to him, call for and examine all available records relating thereto. (2) The Principal Commissioner or the Commissioner may, after giving the assessee an opportunity of being heard, pass an order (hereinafter referred to as the revision order) as the circumstances of the case justify, if he is satisfied that the order sought to be revised is erroneous in so far as it is prejudicial to the interests of the revenue. (3) The Principal Commissioner or the Commissioner may make, or cause to be made, such inquiry as he considers necessary for the purposes of passing an order under sub-section (2). (4) The revision order passed by the Principal Commissioner or the Commissioner under sub-section (2) may have the effect of enhancing or modifying the assessment but shall not be an order cancelling the assessment and directing a fresh assessment. (5) The power of the Principal Commissioner or the Commissioner under sub-section (2) for revising an order shall extend to such matters as have not been considered and decided in any appeal. (6) No order under sub-section (2) shall be made after the expiry of a period of two years from the end of the financial year in which the order sought to be revised was passed. (7) Notwithstanding anything in sub-section (6), an order in revision under this section may be passed at any time in respect of an order which has been passed in consequence of, or to give effect to, any finding or direction contained in an order of the Appellate Tribunal, the High Court or the Supreme Court. (8) In computing the period of limitation under sub-section (6), the following shall not be included, namely:— (a) the time taken in giving an opportunity to the assessee to be reheard under section 7; or (b) any period during which any proceeding under this section is stayed by an order or injunction of any court. 13 ----- (9) Without prejudice to the generality of the foregoing provisions, an order passed by a tax authority shall be deemed to be erroneous in so far as it is prejudicial to the interests of the revenue, if in the opinion of the Principal Commissioner or the Commissioner— (a) the order is passed without making inquiries or verification which, should have been made; or (b) the order has not been made in accordance with any order, direction or instruction issued by the Board; or (c) the order has not been passed in accordance with any decision, prejudicial to the assessee, rendered by the jurisdictional High Court or the Supreme Court in the case of the assessee or any other person under this Act or the Income-tax Act. (10) In this section, “record” shall include all records relating to any proceeding under this Act available at the time of examination by the Principal Commissioner or the Commissioner. **24. Revision of other orders.—(1) The Principal Commissioner or the Commissioner may, either** _suo motu or on an application made by the assessee, for the purposes of revising any order passed by an_ authority subordinate to him, other than an order to which section 23 applies, call for and examine all available records relating thereto. (2) The Principal Commissioner or the Commissioner may pass an order, as he considers necessary, which is not prejudicial to the assessee. (3) The power of the Principal Commissioner or the Commissioner under sub-section (2) to revise an order shall not extend to such order— (a) against which an appeal has not been filed but the time for filing an appeal before the Commissioner (Appeals) has not expired; (b) against which an appeal is pending before the Commissioner (Appeals); or (c) which has been considered and decided in any appeal. (4) The assessee shall make the application for revision of any order referred to in sub-section (1), within a period of one year from the date on which the order sought to be revised was communicated to him, or the date on which he otherwise came to know of it, whichever is earlier. (5) The Principal Commissioner or the Commissioner may, if he is satisfied that the assessee was prevented by sufficient cause from making the application within the period of one year, admit an application made after the expiry of one year but before expiry of two years from the date referred to in sub-section (4). (6) Every application by an assessee for revision under this section shall be accompanied by such fees as may be prescribed. (7) No order under sub-section (2) shall be made after the expiry of— (a) a period of one year from the end of the financial year in which an application is made by the assessee under sub-section (4); or (b) a period of one year from the date of the order sought to be revised, if the order is revised _suo motu by the Commissioner._ (8) In computing the period of limitation under sub-section (7), the following shall not be included, namely:— (a) the time taken in giving an opportunity to the assessee to be reheard under section 7; or 14 ----- (b) any period during which any proceeding under this section is stayed by an order or injunction of any court. (9) An order by the Principal Commissioner or the Commissioner declining to interfere shall, for the purposes of this section, be deemed not to be an order prejudicial to the assessee. **25. Tax to be paid pending appeal.—Notwithstanding any appeal preferred to the High Court or the** Supreme Court, the tax shall be paid in accordance with the assessment made under this Act. **26. Execution of order for costs awarded by Supreme Court.—The High Court may, on petition** made for the execution of the order in respect of the costs awarded by the Supreme Court, transmit such order for execution to any court subordinate to it. **27. Amendment of assessment on appeal.—Where as a result of an appeal under section 15 or** section 18, any change is made in the assessment of a body of individuals or an association of persons or an order for new assessment of a body of individuals or an association of persons is made, the Commissioner (Appeals) or the Appellate Tribunal, as the case may be, shall pass an order authorising the Assessing Officer either to amend the assessment made or make a fresh assessment on any member of the body or association. **28. Exclusion of time taken for obtaining copy.—In computing the period of limitation prescribed** for an appeal under this Act, the day on which the notice of the order was served upon the assessee without serving a copy of the order, the time taken for obtaining a copy of such order, shall be excluded. **29. Filing of appeal by tax authority.—(1) The Board may, from time to time, issue orders,** instructions or directions to other tax authorities, fixing such monetary limits as it may deem fit, for the purpose of regulating the filing of appeal by any tax authority under this Chapter. (2) Where, in pursuance of the orders, instructions or directions issued under sub-section (1), a tax authority has not filed any appeal on any issue in the case of an assessee for any financial year, it shall not preclude such authority from filing an appeal on the same issue in the case of— (a) the same assessee for any other financial year; or (b) any other assessee for the same or any other financial year. (3) Notwithstanding that no appeal has been filed by a tax authority pursuant to the orders or instructions or directions issued under sub-section (1), it shall not be lawful for an assessee, being a party in any appeal, to contend that the tax authority has acquiesced in the decision on the disputed issue by not filing an appeal in any case. (4) The Appellate Tribunal, hearing such appeal, shall have regard to the orders, instructions or directions issued under sub-section (1) and the circumstances under which such appeal was filed or not filed in respect of any case. (5) Every order, instruction or direction which has been issued by the Board fixing monetary limits for filing an appeal shall be deemed to have been issued under sub-section (1) and the provisions of sub-sections (2), (3) and (4) shall apply accordingly. **30. Recovery of tax dues by Assessing Officer.—(1) Any amount specified as payable in a notice of** demand under section 13 shall be paid within a period of thirty days of the service of the notice, to the credit of the Central Government in such manner as may be prescribed. (2) Where the Assessing Officer has any reason to believe that it will be detrimental to the interests of revenue, if the period of thirty days referred to in sub-section (1) is allowed, he may, with the previous approval of the Joint Commissioner, reduce such period as he deems fit. 15 ----- (3) The Assessing Officer may, on an application made by the assessee, before the expiry of a period of thirty days or the period reduced under sub-section (2) or during the pendency of appeal with the Commissioner (Appeals), extend the time for payment, or allow payment by instalments, subject to such conditions as he may think fit to impose in the circumstances of the case. (4) An assessee shall be deemed to be an assessee in default, if the tax arrear is not paid within the time allowed under sub-section (1) or the period reduced under sub-section (2) or extended under sub-section (3), as the case may be. (5) Where an assessee defaults in paying any one of the instalments within the time fixed under sub-section (3), he shall be deemed to be an assessee in default in respect of the whole of the then outstanding amount. (6) The Assessing Officer may, in a case where no certificate has been drawn up under section 31 by the Tax Recovery Officer, recover the amount in respect of which the assessee is in default, or is deemed to be in default, by any one or more of the modes provided in section 32. (7) The Tax Recovery Officer shall be vested with the powers to recover the tax arrear on drawing up of a statement of tax arrear under section 31. **31. Recovery of tax dues by Tax Recovery Officer.—(1) The Tax Recovery Officer may draw up** under his signature a statement of tax arrears of an assessee referred to in sub-section (4) or sub-section (5) of section 30, in such form, as may be prescribed (such statement hereafter in this Chapter referred to as “certificate”). (2) The certificate under sub-section (1) shall stand amended from time to time consequent to any proceeding under this Act and the Tax Recovery Officer shall recover the amount so modified. (3) The Tax Recovery Officer may rectify any mistake apparent from the record. (4) The Tax Recovery Officer shall have the power to extend the time for payment, or allow payment by instalments, subject to such conditions as he may think fit to impose in the circumstances of the case. (5) The Tax Recovery Officer shall proceed to recover from the assessee the amount specified in the certificate by one or more of the modes referred to in section 32 or in the Second Schedule to the Income-tax Act. (6) It shall not be open to the assessee to dispute the correctness of any certificate drawn up by the Tax Recovery Officer on any ground whatsoever, but it shall be lawful for the Tax Recovery Officer to cancel the certificate if, for any reason, he thinks it necessary so to do. **32. Modes of recovery of tax dues.—(1) The Assessing Officer or the Tax Recovery Officer may** require the employer of the assessee to deduct from any payment to the assessee such amount as is sufficient to meet the tax arrear from the assessee. (2) Upon requisition under sub-section (1), the employer shall comply with the requisition and shall pay the sum so deducted to the credit of the Central Government in such manner as may be prescribed. (3) Any part of the salary, exempt from attachment in execution of a decree of a civil court under section 60 of the Code of Civil Procedure, 1908 (5 of 1908), shall be exempt from any requisition made under sub-section (1). (4) The Assessing Officer or the Tax Recovery Officer may, by notice in writing, require any debtor of the assessee to pay such amount, not exceeding the amount of debt, as is sufficient to meet the tax arrear of the assessee. 16 ----- (5) Upon receipt of the notice under sub-section (4), the debtor shall comply with the requisition and shall pay the sum to the credit of the Central Government in such manner as may be prescribed within the time (not being before the debt becomes due to the assessee) specified in the notice. (6) A copy of the notice issued under sub-section (4) shall be forwarded to the assessee at his last address known to the Assessing Officer or the Tax Recovery Officer and in the case of a joint account, to all the joint holders at their last addresses known to the Assessing Officer or the Tax Recovery Officer. (7) It shall not be necessary for any pass book, deposit receipt, policy or any other document to be produced for the purpose of any entry, endorsement or the like being made before payment is made, notwithstanding any rule, practice or requirement to the contrary if the notice under sub-section (4) is issued to a post office, banking company, insurer or any other person. (8) Any claim in respect of any property, in relation to which a notice under sub-section (4) has been issued, arising after the date of the notice, shall be void as against any demand contained in the notice. (9) A person to whom a notice under sub-section (4) has been issued, shall not be required to pay the amount of tax arrear specified therein, or part thereof, if he objects to it by a statement on oath that the sum demanded, or any part thereof, is not due to the assesse or that he does not hold any money for, or on account of, the assessee. (10) The person referred to in sub-section (9) shall be personally liable to the Assessing Officer or the Tax Recovery Officer, as the case may be, to the extent of his own liability to the assessee on the date of the notice, or to the extent of the liability of the assessee for any sum due under this Act, whichever is less, if it is discovered that the statement made by him was false in any respect. (11) The Assessing Officer or the Tax Recovery Officer may amend or revoke any notice issued under sub-section (4) or extend the time for making any payment in pursuance of such notice. (12) The Assessing Officer or the Tax Recovery Officer shall grant a receipt for any amount paid in compliance with a notice issued under sub-section (4), and the person so paying shall be fully discharged from his liability to the assessee to the extent of the amount so paid. (13) Any person discharging any liability to the assessee after receipt of a notice under sub-section (4) shall be personally liable to the Assessing Officer or the Tax Recovery Officer to the extent of his own liability to the assessee so discharged or to the extent of the liability of the assessee for any sum due under this Act, whichever is less. (14) The debtor to whom a notice under sub-section (4) is sent shall be deemed to be an assessee in default, if he fails to make such payment and further proceedings may be initiated against him for the realisation of the amount in the manner provided in this section and the Second Schedule to the Income-tax Act. (15) The Assessing Officer or the Tax Recovery Officer may apply to the court, in whose custody there is money belonging to the assessee, for payment to him of the entire amount of such money or if it is more than the tax arrear, an amount sufficient to meet the tax arrear. (16) The Assessing Officer or the Tax Recovery Officer shall effect the recovery of any tax arrear in the same manner as attachment, distraint and sale of any movable property under the Second Schedule to the Income-tax Act, if he is so authorised by the Principal Chief Commissioner or the Chief Commissioner, or the Principal Commissioner or the Commissioner, by general or special order. 17 ----- (17) In this section,— (a) ‘‘debtor’’, in relation to an assessee, means,— (i) any person from whom any money is due, or may become due, to the assessee; or (ii) any person who holds, or may subsequently hold, any money for, or on account of, the assessee; or (iii) any person who holds, or may subsequently hold, any money for, or on account of, the assessee jointly with any other person; (b) shares of the joint holders in the account shall be presumed, until the contrary is proved, to be equal. **33. Tax Recovery Officer by whom recovery of tax dues is to be effected.—(1) The Tax Recovery** Officer competent to take action under section 31 shall be the Tax Recovery Officer — (a) within whose jurisdiction — (i) the assessee carries on his business; (ii) the principal place of business of the assessee is situate; (iii) the assessee resides; or (iv) any movable or immovable property of the assessee is situate; or (b) who has been assigned jurisdiction under section 6. (2) The Tax Recovery Officer, referred to in sub-section (1), may send a certificate, in such manner as may be prescribed, specifying the tax arrear to be recovered, to another Tax Recovery Officer within whose jurisdiction the assessee resides or has property, if the first-mentioned Tax Recovery Officer — (a) is not able to recover the entire amount by sale of the property, movable or immovable, within his jurisdiction; or (b) is of the opinion that, for the purpose of expediting, or securing, the recovery of the whole, or any part, of the amount under this Chapter, it is necessary to send such certificate. (3) The second-mentioned Tax Recovery Officer shall, on receipt of the certificate, assume jurisdiction for recovery of the amount of tax arrear specified therein and proceed to recover the amount in accordance with the provisions of this Chapter. **34. Recovery of tax dues in case of a company in liquidation.—(1) The liquidator shall inform the** Assessing Officer, who has jurisdiction to assess the undisclosed foreign income and asset of the company, of his appointment within a period of thirty days of his becoming the liquidator. (2) The Assessing Officer shall, within a period of three months from the date on which he receives the information, intimate to the liquidator the amount which, in his opinion, would be sufficient to provide for any tax arrears or any amount which is likely to become payable thereafter, by the company under this Act. (3) The liquidator— (a) shall not part with any of the assets of the company, or the properties, in his custody until he has been intimated by the Assessing Officer under sub-section (2); and (b) on being so intimated, shall set aside an amount equal to the amount intimated. 18 ----- (4) Upon receipt of the intimation from the Assessing Officer under sub-section (2), the amount so intimated shall, notwithstanding anything in any other law for the time being in force, be the first charge on the assets of the company remaining after payment of the following dues, namely:— (a) workmen’s dues; and (b) debts due to secured creditors to the extent such debts under clause (iii) of the proviso to sub-section (1) of section 325 of the Companies Act, 2013 (18 of 2013) are _pari passu_ with such dues. (5) The liquidator shall be personally liable for the payment of the amount payable by the company, if he— (a) fails to inform in accordance with sub-section (1); or (b) fails to set aside the amount as required by sub-section (3). (6) The obligations and liabilities attached to the liquidator under this section shall attach to all the liquidators jointly and severally in a case where there is more than one liquidator. (7) The provisions of this section shall prevail over anything to the contrary contained in any other law for the time being in force. (8) In this section,— (a) “liquidator” in relation to a company which is being wound up, whether under the orders of a court or otherwise, shall include a receiver of the assets of the company; (b) “workmen’s dues” shall have the meaning assigned to it in section 325 of the Companies Act, 2013 (18 of 2013). **35. Liability of manager of a company.—(1) Every person being a manager at any time during the** financial year shall be jointly and severally liable for the payment of any amount due under this Act in respect of the company for the financial year, if the amount cannot be recovered from the company. (2) The provisions of sub-section (1) shall not apply, if the manager proves that non-recovery cannot be attributed to any neglect, misfeasance or breach of duty on his part in relation to the affairs of the company. (3) The provisions of this section shall prevail over anything to the contrary contained in the Companies Act, 2013 (18 of 2013). (4) In this section, “manager” shall include a managing director and both shall have the meaning respectively assigned to them in clause (53) and clause (54) of section 2 of the Companies Act, 2013 (18 of 2013). **36. Joint and several liability of participants.—(1) Every person, being a participant in an** unincorporated body at any time during the financial year, or the representative assessee of the deceased participant, shall be jointly and severally liable, along with the unincorporated body, for payment of any amount payable by the unincorporated body under this Act and all the provisions of this Act shall apply accordingly. (2) In case of a limited liability partnership, the provisions of sub-section (1) shall not apply, if the partner proves that non-recovery cannot be attributed to any neglect, misfeasance or breach of duty on his part in relation to the affairs of the partnership. (3) The provisions of this section shall prevail over anything to the contrary contained in the Limited Liability Partnership Act, 2008 (6 of 2009). 19 ----- **37. Recovery through State Government.—If the recovery of tax in any area has been entrusted to** a State Government under clause (1) of article 258 of the Constitution, the State Government may direct, with respect to that area or any part thereof, that tax shall be recovered therein with, and as an addition to, any municipal tax or local rate, by the same person and in the manner as the municipal tax or local rate is recovered. **38. Recovery of tax dues in pursuance of agreements with foreign countries or specified** **territory.—(1) The Tax Recovery Officer may, in a case where an assessee has property in a country or a** specified territory outside India, forward a certificate to the Board for recovery of the tax arrears from the assessee, where the Central Government or any specified association in India has entered into an agreement with that country or territory under section 90 or section 90A of the Income-tax Act or under sub-sections (1), (2) or sub-section (4) of section 73 of this Act, as the case may be, for the purposes of recovery of tax. (2) On receipt of the certificate under sub-section (3) from the Tax Recovery Officer, the Board may take such action thereon as it may deem appropriate having regard to the terms of the agreement with such country or a specified territory. **39. Recovery by suit or under other law not affected.—(1) The several modes of recovery** specified in this Chapter shall not affect in any way— (a) any other law for the time being in force relating to the recovery of debts due to the Government; or (b) the right of the Government to institute a suit for the recovery of the tax arrears from the assessee. (2) It shall be lawful for the Assessing Officer, or the Government, to have recourse to any such law or suit, notwithstanding that the tax arrears are being recovered from the assessee by any mode specified in this Chapter. **40. Interest for default in furnishing return and payment or deferment of advance tax.—(1)** Where the assessee has any income from a source outside India which has not been disclosed in the return of income furnished under sub-section (1) of section 139 of the Income-tax Act or the return of income has not been furnished under the said sub-section, interest shall be chargeable in accordance with the provisions of section 234A of the Income-tax Act. (2) Where the assessee has any undisclosed income from a source outside India and the advance tax on such income has not been paid in accordance with Part C of Chapter XVII of the Income-tax Act, interest shall be chargeable in accordance with the provisions of sections 234B and 234C of the Income-tax Act. CHAPTER IV PENALTIES **41. Penalty in relation to undisclosed foreign income and asset.—The Assessing Officer may** direct that in a case where tax has been computed under section 10 in respect of undisclosed foreign income and asset, the assessee shall pay by way of penalty, in addition to tax, if any, payable by him, a sum equal to three times the tax computed under that section. **42. Penalty for failure to furnish return in relation to foreign income and asset.—If a person,** being a resident other than not ordinarily resident in India within the meaning of clause (6) of section 6 of the Income-tax Act, who is required to furnish a return of his income for any previous year, as required 20 ----- under sub-section (1) of section 139 of the Income-tax Act or by the provisos to that sub-section, and who at any time during such previous year,— (i) held any asset (including financial interest in any entity) located outside India as a beneficial owner or otherwise; or (ii) was a beneficiary of any asset (including financial interest in any entity) located outside India; or (iii) had any income from a source located outside India, and fails to furnish such return before the end of the relevant assessment year, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of ten lakh rupees: 1[Provided that this section shall not apply in respect of an asset or assets (other than immovable property) where the aggregate value of such asset or assets does not exceed twenty lakh rupees.] _Explanation.—For determining the value equivalent in rupees of the balance in an account_ maintained in foreign currency, the rate of exchange for calculation of the value in rupees shall be the telegraphic transfer buying rate of such currency as on the date for which the value is to be determined as adopted by the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955). **43. Penalty for failure to furnish in return of income, an information or furnish inaccurate** **particulars about an asset (including financial interest in any entity) located outside India.—If any** person, being a resident other than not ordinarily resident in India within the meaning of clause (6) of section 6 of the Income-tax Act, who has furnished the return of income for any previous year under sub-section (1) or sub-section (4) or sub-section (5) of section 139 of the said Act, fails to furnish any information or furnishes inaccurate particulars in such return relating to any asset (including financial interest in any entity) located outside India, held by him as a beneficial owner or otherwise, or in respect of which he was a beneficiary, or relating to any income from a source located outside India, at any time during such previous year, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of ten lakh rupees: 2[Provided that this section shall not apply in respect of an asset or assets (other than immovable property), where the aggregate value of such asset or assets does not exceed twenty lakh rupees.] _Explanation.—The value equivalent in rupees shall be determined in the manner provided in the_ _Explanation to section 42._ **44. Penalty for default in payment of tax arrear.—(1) Every person who is an assessee in default,** or an assessee deemed to be in default, as the case may be, in making payment of tax, and in case of continuing default by such assessee, he shall be liable to a penalty of an amount, equal to the amount of tax arrear. (2) An assessee shall not cease to be liable to any penalty under sub-section (1) merely by reason of the fact that before the levy of such penalty he has paid the tax. **45. Penalty for other defaults.—(1) A person shall be liable to a penalty if he has, without** reasonable cause, failed to— (a) answer any question put to him by a tax authority in the exercise of its powers under this Act; (b) sign any statement made by him in the course of any proceedings under this Act which a tax authority may legally require him to sign; 1. Subs. by Act 15 of 2024, s. 164, for the proviso (w.e.f. 1-10-2024). 2. Subs. by s. 164, ibid., for the proviso (w.e.f. 1-10-2024). 21 ----- (c) attend or produce books of account or documents at the place or time, if he is required to attend or to give evidence or produce books of account or other documents, at certain place and time in response to summons issued under section 8. (2) The penalty referred to in sub-section (1) shall be a sum which shall not be less than fifty thousand rupees but which may extend to two lakh rupees. **46. Procedure.—(1) The tax authority shall, for the purposes of imposing any penalty under this** Chapter, issue a notice to an assessee requiring him to show cause why the penalty should not be imposed on him. (2) The notice referred to in sub-section (1) shall be issued— (a) during the pendency of any proceedings under this Act for the relevant previous year, in respect of penalty referred to in section 41; (b) within a period of three years from the end of the financial year in which the default is committed, in respect of penalties referred to in section 45. (3) No order imposing a penalty under this Chapter shall be made unless the assessee has been given an opportunity of being heard. (4) An order imposing a penalty under this Chapter shall be made with the approval of the Joint Commissioner, if— (a) the penalty exceeds one lakh rupees and the tax authority levying the penalty is in the rank of Income-tax Officer; or (b) the penalty exceeds five lakh rupees and the tax authority levying the penalty is in the rank of Assistant Commissioner or Deputy Commissioner. (5) Every order of penalty issued under this Chapter shall be accompanied by a notice of demand in respect of the amount of penalty imposed and such notice of demand shall be deemed to be a notice under section 13. **47. Bar of limitation for imposing penalty.—(1) No order imposing a penalty under this Chapter** shall be passed after the expiry of a period of one year from the end of the financial year in which the notice for imposition of penalty is issued under section 46. (2) An order imposing, or dropping the proceedings for imposition of, penalty under this Chapter may be revised, or revived, as the case may be, on the basis of assessment of the undisclosed foreign income and asset as revised after giving effect to the order of the Commissioner (Appeals), the Appellate Tribunal, the High Court or the Supreme Court or order of revision under section 23 or section 24. (3) An order revising or reviving the penalty under sub-section (2) shall not be passed after the expiry of a period of six months from the end of the month in which order of the Commissioner (Appeals), the Appellate Tribunal, the High Court or the Supreme Court is received by the Principal Chief Commissioner or the Chief Commissioner or the Principal Commissioner or the Commissioner or the order of revision under section 23 or section 24 is passed. (4) In computing the period of limitation for the purposes of this section, the following time or period shall not be included— (a) the time taken in giving an opportunity to the assessee to be reheard under section 7; and (b) any period during which a proceeding under this Chapter for the levy of penalty is stayed by an order, or injunction, of any court. 22 ----- CHAPTER V OFFENCES AND PROSECUTIONS **48. Chapter not in derogation of any other law or any other provision of this Act.—(1) The** provisions of this Chapter shall be in addition to, and not in derogation of, the provisions of any other law providing for prosecution for offences thereunder. (2) The provisions of this Chapter shall be independent of any order under this Act that may be made, or has not been made, on any person and it shall be no defence that the order has not been made on account of time limitation or for any other reason. **49. Punishment for failure to furnish return in relation to foreign income and asset.—If a** person, being a resident other than not ordinarily resident in India within the meaning of clause (6) of section 6 of the Income-tax Act, who at any time during the previous year, held any asset (including financial interest in any entity) located outside India as a beneficial owner or otherwise, or was a beneficiary of such asset or had income from a source outside India and wilfully fails to furnish in due time the return of income which he is required to furnish under sub-section (1) of section 139 of that Act, he shall be punishable with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine: Provided that a person shall not be proceeded against under this section for failure to furnish in due time the return of income under sub-section (1) of section 139 of the Income-tax Act if the return is furnished by him before the expiry of the assessment year. **50. Punishment for failure to furnish in return of income, any information about an asset** **(including financial interest in any entity) located outside India.—If any person, being a resident other** than not ordinarily resident in India within the meaning of clause (6) of section 6 of the Income-tax Act, who has furnished the return of income for any previous year under sub-section (1) or sub-section (4) or sub-section (5) of section 139 of that Act, wilfully fails to furnish in such return any information relating to an asset (including financial interest in any entity) located outside India, held by him, as a beneficial owner or otherwise or in which he was a beneficiary, at any time during such previous year, or disclose any income from a source outside India, he shall be punishable with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine. **51. Punishment for wilful attempt to evade tax.—(1) If a person, being a resident other than not** ordinarily resident in India within the meaning of clause (6) of section 6 of the Income-tax Act, wilfully attempts in any manner whatsoever to evade any tax, penalty or interest chargeable or imposable under this Act, he shall be punishable with rigorous imprisonment for a term which shall not be less than three years but which may extend to ten years and with fine. (2) If a person wilfully attempts in any manner whatsoever to evade the payment of any tax, penalty or interest under this Act, he shall, without prejudice to any penalty that may be imposable on him under any other provision of this Act, be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to three years and shall, in the discretion of the court, also be liable to fine. (3) For the purposes of this section, a wilful attempt to evade any tax, penalty or interest chargeable or imposable under this Act or the payment thereof shall include a case where any person— (i) has in his possession or control any books of account or other documents (being books of account or other documents relevant to any proceeding under this Act) containing a false entry or statement; or 23 ----- (ii) makes or causes to be made any false entry or statement in such books of account or other documents; or (iii) wilfully omits or causes to be omitted any relevant entry or statement in such books of account or other documents; or (iv) causes any other circumstance to exist which will have the effect of enabling such person to evade any tax, penalty or interest chargeable or imposable under this Act or the payment thereof. **52. Punishment for false statement in verification.—If a person, makes a statement in any** verification under this Act or under any rule made thereunder, or delivers an account or statement which is false, and which he either knows or believes to be false, or does not believe to be true, he shall be punishable with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine. **53. Punishment for abetment.—If a person abets or induces in any manner another person to make** and deliver an account or a statement or declaration relating to tax payable under this Act which is false and which he either knows to be false or does not believe to be true or to commit an offence under sub-section (1) of section 51, he shall be punishable with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine. **54. Presumption as to culpable mental state.—(1) In any prosecution for any offence under this Act** which requires a culpable mental state on the part of the accused, the court shall presume the existence of such mental state but it shall be a defence for the accused to prove the fact that he had no such mental state with respect to the act charged as an offence in that prosecution. _Explanation.—In this sub-section, “culpable mental state” includes intention, motive or knowledge of_ a fact or belief in, or reason to believe, a fact. (2) For the purposes of this section, a fact is said to be proved only when the court believes it to exist beyond reasonable doubt and not merely when its existence is established by a preponderance of probability. **55. Prosecution to be at instance of Principal Chief Commissioner or Chief Commissioner or** **Principal Commissioner or Commissioner.—(1) A person shall not be proceeded against for an offence** under section 49 to section 53 (both inclusive) except with the sanction of the Principal Commissioner or Commissioner or the Commissioner (Appeals), as the case may be. (2) The Principal Chief Commissioner or the Chief Commissioner may issue such instructions, or directions, to the tax authorities referred to in sub-section (1) as he may think fit for the institution of proceedings under this section. (3) The power of the Board to issue orders, instructions or directions under this Act shall include the power to issue orders, instructions or directions (including instructions or directions to obtain its previous approval) to other tax authorities for the proper initiation of proceedings of offences (including an authorisation to file and pursue complaints by one or more Inspectors of tax) under this section. **56. Offences by companies.—(1) Where an offence under this Act has been committed by a** company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company as well as the company shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly. 24 ----- (2) Nothing in sub-section (1) shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (3) Notwithstanding anything in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. (4) Where an offence under this Act has been committed by a person, being a company, and the punishment for such offence is imprisonment and fine, then, without prejudice to sub-section (1) or sub-section (3), such company shall be punished with fine and every person, referred to in sub-section (1), or the director, manager, secretary or other officer of the company referred to in sub-section (3), shall be liable to be proceeded against and punished in accordance with the provisions of this Act. (5) In this section— (a) “company” means a body corporate, and includes — (i) an unincorporated body; (ii) a Hindu undivided family; (b) “director”, in relation to — (i) an unincorporated body, means a participant in the body; (ii) a Hindu undivided family, means an adult member of the family; and (iii) a company, means a whole-time director, or where there is no such director, any other director or manager or officer, who is in charge of the affairs of the company. **57. Proof of entries in records or documents.—(1) The entries in the records, or other documents,** in the custody of a tax authority shall be admitted in evidence in any proceeding for the prosecution of any person for an offence under this Chapter. (2) The entries referred to in sub-section (1) may be proved by the production of— (a) the records or other documents (containing such entries) in the custody of the tax authority; or (b) a copy of the entries certified by that authority under its signature, as true copy of the original entries contained in the records or other documents in its custody. **58. Punishment for second and subsequent offences.—If any person convicted of an offence under** section 49 to section 53 (both inclusive) is again convicted of an offence under any of the aforesaid provisions, he shall be punishable for the second and every subsequent offence with rigorous imprisonment for a term which shall not be less than three years, but which may extend to ten years and with fine which shall not be less than five lakh rupees, but which may extend to one crore rupees. CHAPTER VI TAX COMPLIANCE FOR UNDISCLOSED FOREIGN INCOME AND ASSETS **59. Declaration of undisclosed foreign asset.—Subject to the provisions of this Chapter, any person** may make, on or after the date of commencement of this Act but on or before a date to be notified by the Central Government in the Official Gazette, a declaration in respect of any undisclosed asset located 25 ----- outside India and acquired from income chargeable to tax under the Income-tax Act for any assessment year prior to the assessment year beginning on 1st day of April, 2016— (a) for which he has failed to furnish a return under section 139 of the Income-tax Act; (b) which he has failed to disclose in a return of income furnished by him under the Income-tax Act before the date of commencement of this Act; (c) which has escaped assessment by reason of the omission or failure on the part of such person to make a return under the Income-tax Act or to disclose fully and truly all material facts necessary for the assessment or otherwise. **60. Charge of tax.—Notwithstanding anything contained in the Income-tax Act or in any Finance** Act, the undisclosed asset located outside India and declared under section 59 within the time specified therein shall be chargeable to tax at the rate of thirty per cent. of value of such undisclosed asset on the date of commencement of this Act. **61. Penalty.—Notwithstanding anything contained in the Income-tax Act or in any Finance Act, the** person making a declaration of undisclosed asset located outside India shall, in addition to tax charged under section 60, be liable to penalty at the rate of one hundred per cent. of such tax. **62. Manner of declaration.—(1) A declaration under section 59 shall be made to the Principal** Commissioner or the Commissioner and shall be in such form and shall be verified in such manner as may be prescribed. (2) The declaration shall be signed,— (i) where the declarant is an individual, by the individual himself; where such individual is absent from India, by the individual concerned or by some person duly authorised by him in this behalf; and where the individual is mentally incapacitated from attending to his affairs, by his guardian or by any other person competent to act on his behalf; (ii) where the declarant is a Hindu undivided family, by the karta, and where the karta is absent from India or is mentally incapacitated from attending to his affairs, by any other adult member of such family; (iii) where the declarant is a company, by the managing director thereof, or where for any unavoidable reason such managing director is not able to sign the declaration or where there is no managing director, by any director thereof; (iv) where the declarant is a firm, by the managing partner thereof, or where for any unavoidable reason such managing partner is not able to sign the declaration, or where there is no managing partner as such, by any partner thereof, not being a minor; (v) where the declarant is any other association, by any member of the association or the principal officer thereof; and (vi) where the declarant is any other person, by that person or by some other person competent to act on his behalf. (3) Any person, who has made a declaration under sub-section (1) in respect of his asset or as a representative assessee in respect of the asset of any other person, shall not be entitled to make any other declaration, under that sub-section in respect of his asset or the asset of such other person, and any such other declaration, if made, shall be deemed to be void. 26 ----- **63. Time for payment of tax.—(1) The tax payable under section 60 and penalty payable under** section 61 in respect of the undisclosed asset located outside India, shall be paid on or before a date to be notified by the Central Government in the Official Gazette. (2) The declarant shall file the proof of payment of tax and penalty on or before the date notified under sub-section (1), with the Principal Commissioner or the Commissioner before whom the declaration under section 59 was made. (3) If the declarant fails to pay the tax in respect of the declaration made under section 59 on or before the date notified under sub-section (1), the declaration filed by him shall be deemed never to have been made under this Chapter. **64. Undisclosed foreign asset declared not to be included in total income.—The amount of** undisclosed investment in an asset located outside India declared in accordance with section 59 shall not be included in the total income of the declarant for any assessment year under the Income-tax Act, if the declarant makes the payment of tax referred to in section 60 and the penalty referred to in section 61 by the date notified under sub-section (1) of section 63. **65. Undisclosed foreign asset declared not to affect finality of completed assessments.—The** declarant shall not be entitled, in respect of undisclosed asset located outside India declared or any amount of tax paid thereon, to reopen any assessment or reassessment made under the Income-tax Act or the Wealth-tax Act, 1957 (27 of 1957) or claim any set off or relief in any appeal, reference or other proceeding in relation to any such assessment or reassessment. **66. Tax in respect of voluntarily disclosed asset not refundable.—Any amount of tax paid under** section 60 or penalty paid under section 61 in pursuance of a declaration made under section 59 shall not be refundable. **67. Declaration not admissible in evidence against declarant.—Notwithstanding anything** contained in any other law for the time being in force, nothing contained in any declaration made under section 59 shall be admissible in evidence against the declarant for the purpose of any proceeding relating to imposition of penalty, other than the penalty leviable under section 61, or for the purposes of prosecution under the Income-tax Act or the Wealth-tax Act, 1957 (27 of 1957) or the Foreign Exchange Management Act, 1999 (42 of 1999) or the Companies Act, 2013 (18 of 2013) or the Customs Act, 1962 (52 of 1962) . **68. Declaration by misrepresentation of facts to be void.—Notwithstanding anything contained in** this Chapter, where a declaration has been made by misrepresentation or suppression of facts, such declaration shall be void and shall be deemed never to have been made under this Chapter. **69. Exemption from wealth-tax in respect of assets specified in declaration.—(1) Where the** undisclosed asset located outside India is represented by cash (including bank deposits), bullion or any other assets specified in the declaration made under section 59— (a) in respect of which the declarant has failed to furnish a return under section 14 of the Wealth-tax Act, 1957 (27 of 1957) for the assessment year commencing on or before the 1st day of April, 2015; or (b) which have not been shown in the return of net wealth furnished by him for the said assessment year or years; or (c) which have been understated in value in the return of net wealth furnished by him for the said assessment year or years, 27 ----- then, notwithstanding anything contained in the Wealth-tax Act, 1957 (27 of 1957) or any rules made thereunder,— (I) wealth-tax shall not be payable by the declarant in respect of the assets referred to in clause (a) or clause (b) and such assets shall not be included in his net wealth for the said assessment year or years; (II) the amount by which the value of the assets referred to in clause (c) has been understated in the return of net wealth for the said assessment year or years, to the extent such amount does not exceed the voluntarily disclosed income utilised for acquiring such assets, shall not be taken into account in computing the net wealth of the declarant for the said assessment year or years. _Explanation.—Where a declaration under section 59 is made by a firm, the assets referred to in_ clause (I) or, as the case may be, the amount referred to in clause (II) shall not be taken into account in computing the net wealth of any partner of the firm or, as the case may be, in determining the value of the interest of any partner in the firm. (2) The provisions of sub-section (1) shall not apply unless the conditions specified in sub-sections (1) and (2) of section 63 are fulfilled by the declarant. **70. Applicability of certain provisions of Income-tax Act and of Chapter V of Wealth-tax Act.—** The provisions of Chapter XV of the Income-tax Act relating to liability in special cases and of section 189 of that Act or of Chapter V of the Wealth-tax Act, 1957 (27 of 1957) relating to liability to assessment in special cases shall, so far as may be, apply in relation to proceedings under this Chapter as they apply in relation to proceedings under the Income-tax Act or, as the case may be, the Wealth-tax Act. **71. Chapter not to apply to certain persons.—The provisions of this Chapter shall not apply—** (a) to any person in respect of whom an order of detention has been made under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (52 of 1974): Provided that— (i) such order of detention, being an order to which the provisions of section 9 or section 12A of the said Act do not apply, has not been revoked on the report of the Advisory Board under section 8 of the said Act or before the receipt of the report of the Advisory Board; or (ii) such order of detention, being an order to which the provisions of section 9 of the said Act apply, has not been revoked before the expiry of the time for, or on the basis of, the review under sub-section (3) of section 9, or on the report of the Advisory Board under section 8, read with sub-section (2) of section 9, of the said Act; or (iii) such order of detention, being an order to which the provisions of section 12A of the said Act apply, has not been revoked before the expiry of the time for, or on the basis of, the first review under sub-section (3) of that section, or on the basis of the report of the Advisory Board under section 8, read with sub-section (6) of section 12A, of the said Act; or (iv) such order of detention has not been set aside by a court of competent jurisdiction; (b) in relation to prosecution for any offence punishable under Chapter IX or Chapter XVII of the Indian Penal Code (45 of 1860), the Narcotic Drugs and Psychotropic Substances Act, 1985 (61 of 1985), the Unlawful Activities (Prevention) Act, 1967 (37 of 1967), the Prevention of Corruption Act, 1988 (49 of 1988); (c) to any person notified under section 3 of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992 (27 of 1992). 28 ----- (d) in relation to any undisclosed asset located outside India which has been acquired from income chargeable to tax under the Income-tax Act for any previous year relevant to an assessment year prior to the assessment year beginning on the 1st day of April, 2016— (i) where a notice under section 142 or sub-section (2) of section 143 or section 148 or section 153A or section 153C of the Income-tax Act has been issued in respect of such assessment year and the proceeding is pending before the Assessing Officer; or (ii) where a search has been conducted under section 132 or requisition has been made under section 132A or a survey has been carried out under section 133A of the Income-tax Act in a previous year and a notice under sub-section (2) of section 143 for the assessment year relevant to such previous year or a notice under section 153A or under section 153C of the said Act for an assessment year relevant to any previous year prior to such previous year has not been issued and the time for issuance of such notice has not expired; or (iii) where any information has been received by the competent authority under an agreement entered into by the Central Government under section 90 or section 90A of the Income-tax Act in respect of such undisclosed asset. _Explanation.—For the purpose of this sub-clause asset shall include a bank account whether_ having any balance or not. **72. Removal of doubts.—For the removal of doubts, it is hereby declared that—** (a) save as otherwise expressly provided in the _Explanation_ to sub-section (1) of section 69, nothing contained in this Chapter shall be construed as conferring any benefit, concession or immunity on any person other than the person making the declaration under this Chapter; (b) where any declaration has been made under section 59 but no tax and penalty has been paid within the time specified under section 60 and section 61, the value of such asset shall be chargeable to tax under this Act in the previous year in which such declaration is made; (c) where any asset has been acquired or made prior to commencement of this Act, and no declaration in respect of such asset is made under this Chapter, such asset shall be deemed to have been acquired or made in the year in which a notice under section 10 is issued by the Assessing Officer and the provisions of this Act shall apply accordingly. CHAPTER VII GENERAL PROVISIONS **73. Agreement with foreign countries or specified territories.—(1) The Central Government may** enter into an agreement with the Government of any other country— (a) for exchange of information for the prevention of evasion or avoidance of tax on undisclosed foreign income chargeable under this Act or under the corresponding law in force in that country, or investigation of cases of such evasion or avoidance; (b) for recovery of tax under this Act and under the corresponding law in force in that country. (2) The Central Government may enter into an agreement with the Government of any specified territory outside India for the purposes specified in sub-section (1). (3) The Central Government may, by notification, make such provisions as may be necessary for implementing the agreements referred to in sub-sections (1) and (2). 29 ----- (4) Any specified association in India may enter into an agreement with any specified association in the specified territory outside India for the purposes of sub-section (1) and the Central Government may by notification make such provisions as may be necessary for adopting and implementing such agreement. (5) Any term used but not defined in this Act or in the agreement referred to in sub-sections (1), (2) or sub-section (4) shall, unless the context otherwise requires, and is not inconsistent with the provisions of this Act or the agreement, have the meaning assigned to it in the notification issued by the Central Government and such meaning shall be deemed to have effect from the date on which the said agreement came into force. **74. Service of notice generally.—(1) The service of any notice, summons, requisition, order or any** other communication under this Act (herein referred to in this section as “communication”) may be made by delivering or transmitting a copy thereof, to the person named therein,— (a) by post or by such courier service as may be approved by the Board; (b) in such manner as provided under the Code of Civil Procedure, 1908 (5 of 1908) for the purposes of service of summons; (c) in the form of any electronic record as provided in Chapter IV of the Information Technology Act, 2000 (21 of 2000); or (d) by any other means of transmission of documents, including fax message or electronic mail message, as may be prescribed. (2) The Board may make rules providing for the addresses including the address for electronic mail or electronic mail message to which the communication referred to in sub-section (1) may be delivered or transmitted to the person named therein. (3) In this section, the expressions “electronic mail” and “electronic mail message” shall have the same meanings as assigned to them in the _Explanation_ to section 66A of the Information Technology Act, 2000 (21 of 2000). **75. Authentication of notices and other documents.—(1) A notice or any other document required** to be issued, served or given for the purposes of this Act by any tax authority shall be authenticated by that authority. (2) Every notice or other document to be issued, served or given for the purposes of this Act by any tax authority shall be deemed to be authenticated, if the name and office of a designated tax authority is printed, stamped or otherwise written thereon. (3) In this section, a designated tax authority shall mean any tax authority authorised by the Board to issue, serve or give such notice or other document after authentication in the manner as provided in sub-section (2). **76. Notice deemed to be valid in certain circumstances.—(1) A notice which is required to be** served upon a person for the purposes of assessment under this Act shall be deemed to have been duly served upon him in accordance with the provisions of this Act, if the person has appeared in any proceeding or co-operated in any inquiry relating to an assessment. (2) The person, referred to in sub-section (1), shall be precluded from taking any objection in any proceeding or inquiry under this Act that the notice was— (a) not served upon him; 30 ----- (b) not served upon him in time; or (c) served upon him in an improper manner. (3) The provisions of this section shall not apply, if the person has raised the objection before the completion of the assessment. **77. Appearance by approved valuer in certain matters.—(1) Any assessee who is entitled or** required to attend before any tax authority or the Appellate Tribunal, in connection with any matter relating to the valuation of any asset, may attend through a valuer approved by the Principal Commissioner or the Commissioner in accordance with such rules as may be prescribed. (2) The provisions of sub-section (1) shall not apply in a case where the assessee is required to attend personally for examination on oath or affirmation under section 8. **78. Appearance by authorised representative.—(1) Any assessee who is entitled or required to** attend before any tax authority or the Appellate Tribunal, in connection with any proceeding under this Act, may attend through an authorised representative. (2) The provisions of sub-section (1) shall not apply in a case where the assessee is required to attend personally for examination on oath or affirmation under section 8. (3) In this section, “authorised representative” means a person authorised by the assessee in writing to appear on his behalf, being— (a) a person related to the assessee in any manner, or a person regularly employed by the assessee; (b) any officer of a scheduled bank with which the assessee maintains a current account or has other regular dealings; (c) any legal practitioner who is entitled to practice in any civil court in India; (d) an accountant; (e) any person who has passed any accountancy examination recognised in this behalf by the Board; or (f) any person who has acquired such educational qualifications as may be prescribed. (4) The following persons shall not be qualified to represent an assessee under sub-section (1), namely:— (a) a person who has been dismissed or removed from Government service; (b) a legal practitioner, or an accountant, who is found guilty of misconduct in his professional capacity by any authority entitled to institute disciplinary proceedings against him; (c) a person, not being a legal practitioner or an accountant, who is found guilty of misconduct in any tax proceedings by such authority as may be prescribed. (5) The Principal Chief Commissioner or the Chief Commissioner may, by an order in writing, specify the period up to which the disqualification under sub-section (4) shall continue, having regard to the nature of misconduct and such disqualification shall not exceed— (i) in case of clauses (a) and (c) of sub-section (4), a period of ten years; (ii) in case of clause (b) of sub-section (4), the period for which the legal practitioner or an accountant is not entitled to practice. 31 ----- (6) A person shall not be allowed to appear as an authorised representative, if he has committed any fraud or misrepresented the facts which resulted in loss to the revenue and that person has been declared as such by an order of the Principal Chief Commissioner or the Chief Commissioner. _Explanation.—In this section, “accountant” means a chartered accountant as defined in clause (b) of_ sub-section (1) of section 2 of the Chartered Accountants Act, 1949 (38 of 1949) who holds a valid certificate of practice under sub-section (1) of section 6 of that Act. **79. Rounding off of income, value of asset and tax.—(1) The amount of undisclosed foreign** income and asset computed in accordance with this Act shall be rounded off to the nearest multiple of one hundred rupees. (2) Any amount payable or receivable by the assessee under this Act shall be rounded off to the nearest multiple of ten rupees. (3) The method of rounding off under sub-section (1) or sub-section (2), shall be such as may be prescribed. **80. Congnizance of offences.—No court inferior to that of a metropolitan magistrate or a magistrate** of the First Class shall try any offence under this Act. **81. Assessment not to be invalid on certain grounds.—No assessment, notice, summons or other** proceedings, made or issued or taken or purported to have been made or issued or taken in pursuance of any of the provisions of this Act shall be invalid or shall be deemed to be invalid merely by reason of any mistake, defect or omission in such assessment, notice, summons or other proceeding if such assessment, notice, summons or other proceeding is in substance and effect in conformity with or according to the intent and purpose of this Act. **82. Bar of suits in civil courts.—(1) No suit shall be brought in any civil court to set aside or modify** any proceeding taken or order made under this Act. (2) No prosecution, suit or other proceeding shall lie against the Government or any officer of the Government, for anything in good faith done or intended to be done, under this Act. **83. Income-tax papers to be available for purposes of this Act.—Notwithstanding anything** contained in the Income-tax Act, all information contained in any statement or return made or furnished under the provisions of that Act or obtained or collected for the purposes of the said Act may be used for the purposes of this Act. **84. Application of provisions of Income-tax Act.—The provisions of clauses (c) and (d) of** sub-section (1) of section 90, clauses (c) and (d) of sub-section (1) of section 90A, sections 119, 133, 134, 135, [1][138, 144A] Chapter XV and sections 237, 240, 245, 280, 280A, 280B, 280D, 281, 281B and 284 of the Income-tax Act shall apply with necessary modifications as if the said provisions refer to undisclosed foreign income and asset instead of to income-tax. **85. Power to make rules.—(1) The Board may, subject to the approval of the Central Government,** by notification in the Official Gazette, make rules for carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the manner of determination of the value of an undisclosed foreign asset referred to in sub-section (2) of section 3; (b) the tax authority to be prescribed for any of the purposes of this Act; 1. Subs. by Act 23 of 2019, s. 208, for the figures “138” (w.e.f. 1-9-2019). 32 ----- (c) the form and manner of service of a notice of demand under section 13; (d) the form in which any appeal, revision or cross-objection may be filed under this Act, the manner in which they may be verified and the fee payable in respect thereof; (e) the form in which the Tax Recovery Officer may draw up the statement of tax arrears under sub-section (1) of section 31; (f) the manner in which the sum is to be paid to the credit of Central Government under sub-section (2) or sub-section (5) of section 32; (g) the manner in which the Tax Recovery Officer shall send a certificate referred to in sub-section (2) of section 33; (h) the form in which a declaration referred to in sub-section (1) of section 62 is to be made and the manner in which it is to be verified; (i) the means of transmission of documents under clause (d) of sub-section (1) of section 74; (j) the procedure for approval of a valuer by the Principal Commissioner or the Commissioner under section 77; (k) the educational qualifications required, to be an authorised representative under clause (f) of sub-section (3) of section 78; (l) the tax authority under clause (c) of sub-section (4) of section 78; (m) the method of rounding off of the amount referred to in sub-section (1) or sub-section (2) of section 79; (n) any other matter which by this Act is to be, or may be, prescribed. (3) The power to make rules conferred by this section shall include the power to give retrospective effect to the rules or any of them from a date not earlier than the date of commencement of this Act and no retrospective effect shall be given to any rule so as to prejudicially affect the interest of assessees. (4) The Central Government shall cause every rule made under this Act to be laid as soon as may be after it is made before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. **86. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order, not inconsistent with the provisions of this Act, remove the difficulty: Provided that no such order shall be made after the expiry of a period of two years from the date on which the provisions of this Act come into force. (2) Every order made under this section shall be laid before each House of Parliament. **87. Amendment of section 2 of Act 54 of 1963.—In section 2 of the Central Boards of Revenue** Act, 1963, in sub-clause (1) of clause (c),— (a) in item (vii), the word “and” occurring at the end shall be omitted; and 33 ----- (b) after item (ix) as so amended, the following item shall be inserted, namely:— “(x) the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015; and” **88. Amendment of Act of 15 of 2003.—In the Prevention of Money-laundering Act, 2002, in the** Schedule, in Part C, after entry (3), relating to the offences against property under Chapter XVII of the Indian Penal Code (45 of 1860), the following entry shall be inserted, namely:— “(4) The offence of wilful attempt to evade any tax, penalty or interest referred to in section 51 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.”. 34 -----

31-Dec-2015

02

The Juvenile Justice (Care and Protection of Children) Act, 2015.

https://www.indiacode.nic.in/bitstream/123456789/2148/1/a2016-2.pdf

central

# THE JUVENILE JUSTICE (CARE AND PROTECTION OF CHILDREN) ACT, 2015 ______ ARRANGEMENT OF SECTIONS ______ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent, commencement and application. 2. Definitions. CHAPTER II GENERAL PRINCIPLES OF CARE AND PROTECTION OF CHILDREN 3. General principles to be followed in administration of Act. CHAPTER III JUVENILE JUSTICE BOARD 4. Juvenile Justice Board. 5. Placement of person, who cease to be a child during process of inquiry. 6. Placement of persons, who committed an offence, when person was below the age of eighteen years. 7. Procedure in relation to Board. 8. Powers, functions and responsibilities of the Board. 9. Procedure to be followed by a Magistrate who has not been empowered under this Act. CHAPTER IV PROCEDURE IN RELATION TO CHILDREN IN CONFLICT WITH LAW 10. Apprehension of child alleged to be in conflict with law. 11. Role of person in whose charge child in conflict with law is placed. 12. Bail to a person who is apparently a child alleged to be in conflict with law. 13. Information to parents, guardian or probation officer. 14. Inquiry by Board regarding child in conflict with law. 15. Preliminary assessment into heinous offences by Board. 16. Review of pendency of inquiry. 17. Orders regarding a child not found to be in conflict with law. 18. Orders regarding child found to be in conflict with law. 19. Powers of Children’s Court. 20. Child attained age of twenty-one years and yet to complete prescribed term of stay in place of safety. 1 ----- SECTIONS 21. Order that may not be passed against a child in conflict with law. 22. Proceeding under Chapter VIII of the Code of Criminal Procedure not to apply against child. 23. No joint proceedings of child in conflict with law and person not a child. 24. Removal of disqualification on the findings of an offence. 25. Special provision in respect of pending cases. 26. Provision with respect of run away child in conflict with law. CHAPTER V CHILD WELFARE COMMITTEE 27. Child Welfare Committee. 28. Procedure in relation to Committee. 29. Powers of Committee. 30. Functions and responsibilities of Committee. CHAPTER VI PROCEDURE IN RELATION TO CHILDREN IN NEED OF CARE AND PROTECTION 31. Production before Committee. 32. Mandatory reporting regarding a child found separated from guardian. 33. Offence of non-reporting. 34. Penalty for non-reporting. 35. Surrender of children. 36. Inquiry. 37. Orders passed regarding a child in need of care and protection. 38. Procedure for declaring a child legally free for adoption. CHAPTER VII REHABILITATION AND SOCIAL RE-INTEGRATION 39. Process of rehabilitation and social re-integration. 40. Restoration of child in need of care and protection. 41. Registration of child care institutions. 42. Penalty for non-registration of child care institutions. 43. Open shelter. 44. Foster care. 45. Sponsorship. 46. After care of children leaving child care institution. 47. Observation homes. 48. Special homes. 2 ----- SECTIONS 49. Place of safety. 50. Children’s Home. 51. Fit facility. 52. Fit person. 53. Rehabilitation and re-integration services in institutions registered under this Act and management thereof. 54. Inspection of institutions registered under this Act. 55. Evaluation of functioning of structures. CHAPTER VIII ADOPTION 56. Adoption. 57. Eligibility of prospective adoptive parents. 58. Procedure for adoption by Indian prospective adoptive parents living in India. 59. Procedure for inter-country adoption of an orphan or abandoned or surrendered child. 60. Procedure for inter-country relative adoption. 61. Procedure for disposal of adoption proceedings. 62. Additional procedural requirements and documentation. 63. Effect of adoption. 64. Reporting of adoption. 65. Specialised Adoption Agencies. 66. Adoption of children residing in institutions not registered as adoption agencies. 67. State Adoption Resource Agency. 68. Central Adoption Resource Authority. 69. Steering Committee of Authority. 70. Powers of Authority. 71. Annual Report of Authority. 72. Grants by Central Government. 73. Accounts and audit of Authority. CHAPTER IX OTHER OFFENCES AGAINST CHILDREN 74. Prohibition on disclosure of identity of children. 75. Punishment for cruelty to child. 76. Employment of child for begging. 77. Penalty for giving intoxicating liquor or narcotic drug or psychotropic substance to a child. 3 ----- SECTIONS 78. Using a child for vending, peddling, carrying, supplying or smuggling any intoxicating liquor, narcotic drug or psychotropic substance. 79. Exploitation of a child employee. 80. Punitive measures for adoption without following prescribed procedures. 81. Sale and procurement of children for any purpose. 82. Corporal punishment. 83. Use of child by militant groups or other adults. 84. Kidnapping and abduction of child. 85. Offences committed on disabled children. 86. Classification of offences and designated court. 87. Abetment. 88. Alternative punishment. 89. Offence committed by child under this Chapter. CHAPTER X MISCELLANEOUS 90. Attendance of parent or guardian of child. 91. Dispensing with attendance of child. 92. Placement of a child suffering from disease requiring prolonged medical treatment in an approved place. 93. Transfer of a child who is mentally ill or addicted to alcohol or other drugs. 94. Presumption and determination of age. 95. Transfer of a child to place of residence. 96. Transfer of child between Children’s Homes, or special homes or fit facility or fit person in different parts of India. 97. Release of a child from an institution. 98. Leave of absence to a child placed in an institution. 99. Reports to be treated as confidential. 100. Protection of action taken in good faith. 101. Appeals. 102. Revision. 103. Procedure in inquiries, appeals and revision proceedings. 104. Power of the Committee or the Board to amend its own orders. 105. Juvenile justice fund. 106. State Child Protection Society and District Child Protection Unit. 107. Child Welfare Police Officer and Special Juvenile Police Unit. 4 ----- SECTIONS 108. Public awareness on provisions of Act. 109. Monitoring of implementation of Act. 110. Power to make rules. 111. Repeal and savings. 112. Power to remove difficulties. 5 ----- # THE JUVENILE JUSTICE (CARE AND PROTECTION OF CHILDREN) ACT, 2015 ACT NO. 2 OF 2016 [31st December, 2015.] # An Act to consolidate and amend the law relating to children alleged and found to be in conflict with law and children in need of care and protection by catering to their basic needs through proper care, protection, development, treatment, social re-integration, by adopting a child-friendly approach in the adjudication and disposal of matters in the best interest of children and for their rehabilitation through processes provided, and institutions and bodies established, herein under and for matters connected therewith or incidental thereto. WHEREAS, the provisions of the Constitution confer powers and impose duties, under clause (3) [of article 15, clauses (e) and (f) of article 39, article 45 and article 47, on the State to ensure that all the](javascript:fnOpenLinkPopUp('784','16911');) needs of children are met and that their basic human rights are fully protected; AND WHEREAS, the Government of India has acceded on the 11th December, 1992 to the Convention on the Rights of the Child, adopted by the General Assembly of United Nations, which has prescribed a set of standards to be adhered to by all State parties in securing the best interest of the child; AND WHEREAS, it is expedient to re-enact the Juvenile Justice (Care and Protection of Children) Act, 2000 (56 of 2000) to make comprehensive provisions for children alleged and found to be in conflict with law and children in need of care and protection, taking into consideration the standards prescribed in the Convention on the Rights of the Child, the United Nations Standard Minimum Rules for the Administration of Juvenile Justice, 1985 (the Beijing Rules), the United Nations Rules for the Protection of Juveniles Deprived of their Liberty (1990), the Hague Convention on Protection of Children and Co-operation in Respect of Inter-country Adoption (1993), and other related international instruments. BE it enacted by Parliament in the Sixty-sixth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent, commencement and application.—(1) This Act may be called the Juvenile** Justice (Care and Protection of Children) Act, 2015. (2) It extends to the whole of India [1]***. (3) It shall come into force on such date[2] as the Central Government may, by notification in the Official Gazette, appoint. (4) Notwithstanding anything contained in any other law for the time being in force, the provisions of this Act shall apply to all matters concerning children in need of care and protection and children in conflict with law, including — (i) apprehension, detention, prosecution, penalty or imprisonment, rehabilitation and social re-integration of children in conflict with law; (ii) procedures and decisions or orders relating to rehabilitation, adoption, re-integration, and restoration of children in need of care and protection. **2. Definitions.—In this Act, unless the context otherwise requires,—** (1) “abandoned child” means a child deserted by his biological or adoptive parents or guardians, who has been declared as abandoned by the Committee after due inquiry; 1. The words “except the State of Jammu and Kashmir” omitted by Act 34 of 2019, s. 95 and the Fifth Schedule (w.e.f. 31-10 2019). 2. 15th January, 2016, vide notification No. S.O. 110(E), dated 12th January, 2016, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 6 ----- (2) “adoption” means the process through which the adopted child is permanently separated from his biological parents and becomes the lawful child of his adoptive parents with all the rights, privileges and responsibilities that are attached to a biological child; (3) “adoption regulations” means the regulations framed by the Authority and notified by the Central Government in respect of adoption; 1[* - - - *] (5) “aftercare” means making provision of support, financial or otherwise, to persons, who have completed the age of eighteen years but have not completed the age of twenty-one years, and have left any institutional care to join the mainstream of the society; (6) “authorised foreign adoption agency” means a foreign social or child welfare agency that is authorised by the Central Adoption Resource Authority on the recommendation of their Central Authority or Government department of that country for sponsoring the application of non-resident Indian or overseas citizen of India or persons of Indian origin or foreign prospective adoptive parents for adoption of a child from India; (7) “Authority” means the Central Adoption Resource Authority constituted under section 68; (8) “begging” means— (i) soliciting or receiving alms in a public place or entering into any private premises for the purpose of soliciting or receiving alms, under any pretence; (ii) exposing or exhibiting with the object of obtaining or extorting alms, any sore, wound, injury, deformity or disease, whether of himself or of any other person or of an animal; (9) “best interest of child” means the basis for any decision taken regarding the child, to ensure fulfilment of his basic rights and needs, identity, social well-being and physical, emotional and intellectual development; (10) “Board” means a Juvenile Justice Board constituted under section 4; (11) “Central Authority” means the Government department recognised as such under the Hague Convention on Protection of Children and Cooperation in Inter-country Adoption (1993); (12) “child” means a person who has not completed eighteen years of age; (13) “child in conflict with law” means a child who is alleged or found to have committed an offence and who has not completed eighteen years of age on the date of commission of such offence; (14) “child in need of care and protection” means a child— (i) who is found without any home or settled place of abode and without any ostensible means of subsistence; or (ii) who is found working in contravention of [2][the provisions of this Act or] labour laws for the time being in force or is found begging, or living on the street; or (iii) who resides with a person (whether a guardian of the child or not) and such person— (a) has injured, exploited, abused or neglected the child or has violated any other law for the time being in force meant for the protection of child; or (b) has threatened to kill, injure, exploit or abuse the child and there is a reasonable likelihood of the threat being carried out; or (c) has killed, abused, neglected or exploited some other child or children and there is a reasonable likelihood of the child in question being killed, abused, exploited or neglected by that person; or 1. Clause 4 omitted by Act 23 of 2021 s. 2 (w.e.f. 1-9-2022). 2. Ins. by s. 2, ibid., (w.e.f. 1-9-2022). 7 ----- (iv) who is mentally ill or mentally or physically challenged or suffering from terminal or incurable disease, having no one to support or look after or having parents or guardians unfit to take care, if found so by the Board or the Committee; or (v) who has a parent or guardian and such parent or guardian is found to be unfit or incapacitated, by the Committee or the Board, to care for and protect the safety and well-being of the child; or 1[(vi) who does not have parents and no one is willing to take care of and protect or who is abandoned or surrendered;] (vii) who is missing or run away child, or whose parents cannot be found after making reasonable inquiry in such manner as may be prescribed; or (viii) who has been or is being or is likely to be abused, tortured or exploited for the purpose of sexual abuse or illegal acts; or (ix) who is found vulnerable and [2][has been or is being or is likely to be] inducted into drug abuse or trafficking; or (x) who is being or is likely to be abused for unconscionable gains; or (xi) who is victim of or affected by any armed conflict, civil unrest or natural calamity; or (xii) who is at imminent risk of marriage before attaining the age of marriage and whose parents, family members, guardian and any other persons are likely to be responsible for solemnisation of such marriage; (15) “child friendly” means any behaviour, conduct, practice, process, attitude, environment or treatment that is humane, considerate and in the best interest of the child; (16) “child legally free for adoption” means a child declared as such by the Committee after making due inquiry under section 38; (17) “Child Welfare Officer” means an officer attached to a [3][child care institution], for carrying out the directions given by the Committee or, as the case may be, the Board with such responsibility as may be prescribed; (18) “Child Welfare Police Officer” means an officer designated as such under sub-section (1) of section 107; (19) “Children’s Home” means a Children’s Home, established or maintained, in every district or group of districts, by the State Government, either by itself, or through a voluntary or non-governmental organisation, and is registered as such for the purposes specified in section 50; (20) “Children’s Court” means a court established under the Commissions for Protection of Child Rights Act, 2005 (4 of 2006) or a Special Court under the Protection of Children from Sexual Offences Act, 2012 (32 of 2012), wherever existing and where such courts have not been designated, the Court of Sessions having jurisdiction to try offences under the Act; (21) “child care institution” means Children Home, open shelter, observation home, special home, place of safety, Specialised Adoption Agency and a fit facility recognised under this Act for providing care and protection to children, who are in need of such services; (22) “Committee” means Child Welfare Committee constituted under section 27; (23) “court” means a civil court, which has jurisdiction in matters of adoption and guardianship and may include the District Court, Family Court and City Civil Courts; (24) “corporal punishment” means the subjecting of a child by any person to physical punishment that involves the deliberate infliction of pain as retribution for an offence, or for the purpose of disciplining or reforming the child; (25) “childline services” means a twenty-four hours emergency outreach service for children in crisis which links them to emergency or long-term care and rehabilitation service; 1. Subs. by Act 23 of 2021, s. 2, for sub-clause (vi) (w.e.f. 1-9-2022). 2. Subs. by s. 2, ibid., for “is likely to be” (w.e.f. 1-9-2022). 3. Subs. by s. 2, ibid., for “Children’s Home” (w.e.f. 1-9-2022). 8 ----- (26) “District Child Protection Unit” means a Child Protection Unit for a District, established by the State Government under section 106, [1][which shall function under the supervision of the District Magistrate] to ensure the implementation of this Act and other child protection measures in the district; 2[(26-A) “District Magistrate” includes Additional District Magistrate of the District;] (27) “fit facility” means a facility being run by a governmental organisation or a registered voluntary or non-governmental organisation, prepared to temporarily own the responsibility of a particular child for a specific purpose, and such facility is recognised as fit for the said purpose, by the Committee, as the case may be, or the Board, under sub-section (1) of section 51; (28) “fit person” means any person, prepared to own the responsibility of a child, for a specific purpose, and such person is identified after inquiry made in this behalf and recognised as fit for the said purpose, by the Committee or, as the case may be, the Board, to receive and take care of the child; (29) “foster care” means placement of a child, by the Committee for the purpose of alternate care in the domestic environment of a family, other than the child’s biological family, that has been selected, qualified, approved and supervised for providing such care; (30) “foster family” means a family found suitable by the District Child Protection Unit to keep children in foster care under section 44; (31) “guardian” in relation to a child, means his natural guardian or any other person having, in the opinion of the Committee or, as the case may be, the Board, the actual charge of the child, and recognised by the Committee or, as the case may be, the Board as a guardian in the course of proceedings; (32) “group foster care” means a family like care facility for children in need of care and protection who are without parental care, aiming on providing personalised care and fostering a sense of belonging and identity, through family like and community based solutions; (33) “heinous offences” includes the offences for which the minimum punishment under the Indian Penal Code (45 of 1860) or any other law for the time being in force is imprisonment for seven years or more; (34) “inter-country adoption” means adoption of a child from India by non-resident Indian or by a person of Indian origin or by a foreigner; (35) “juvenile” means a child below the age of eighteen years; (36) “narcotic drug” and “psychotropic substance” shall have the meanings, respectively, assigned to them in the Narcotic Drugs and Psychotropic Substances Act, 1985 (61 of 1985); (37) “no objection certificate” for inter-country adoption means a certificate issued by the Central Adoption Resource Authority for the said purpose; (38) “non-resident Indian” means a person who holds an Indian passport and is presently residing abroad for more than one year; (39) “notification” means the notification published in the Official Gazette of India, or as the case may be, in the Gazette of a State, and the expression “notify” shall be construed accordingly; (40) “observation home” means an observation home established and maintained in every district or group of districts by a State Government, either by itself, or through a voluntary or non-governmental organisation, and is registered as such, for the purposes specified in sub-section (1) of section 47; 1. Subs. by Act 23 of 2021, s. 2, for “which is the focal point” (w.e.f. 1-9-2022). 2. Ins. by s. 2 ibid. (w.e.f. 1-9-2022). 9 ----- (41) “open shelter” means a facility for children, established and maintained by the State Government, either by itself, or through a voluntary or non-governmental organisation under sub-section (1) of section 43, and registered as such, for the purposes specified in that section; (42) “orphan” means a child— (i) who is without biological or adoptive parents or legal guardian; or (ii) whose legal guardian is not willing to take, or capable of taking care of the child; (43) “overseas citizen of India” means a person registered as such under the Citizenship Act, 1955 (57 of 1955); (44) “person of Indian origin” means a person, any of whose lineal ancestors is or was an Indian national, and who is presently holding a Person of Indian Origin Card issued by the Central Government; (45) “petty offences” includes the offences for which the maximum punishment under the Indian Penal Code (45 of 1860) or any other law for the time being in force is imprisonment up to three years; (46) “place of safety” means any place or institution, not being a police lockup or jail, established separately or attached to an observation home or a special home, as the case may be, [1][***] to receive and take care of the children alleged or found to be in conflict with law, by an order of the Board or the Children’s Court, both during inquiry and ongoing rehabilitation after having been found guilty for a period and purpose as specified in the order; (47) “prescribed” means prescribed by rules made under this Act; (48) “probation officer” means an officer appointed by the State Government as a probation officer under the Probation of Offenders Act, 1958 (20 of 1958) or the Legal-cum-Probation Officer appointed by the State Government under District Child Protection Unit; (49) “prospective adoptive parents” means a person or persons eligible to adopt a child as per the provisions of section 57; (50) “public place” shall have the same meaning assigned to it in the Immoral Traffic (Prevention) Act, 1956 (104 of 1956); (51) “registered”, with reference to child care institutions or agencies or facilities managed by the State Government, or a voluntary or non-governmental organisation, means observation homes, special homes, place of safety, children’s homes, open shelters or Specialised Adoption Agency or fit facility or any other institution that may come up in response to a particular need or agencies or facilities authorised and registered under section 41, for providing residential care to children, on a short-term or long-term basis; (52) “relative”, in relation to a child for the purpose of adoption under this Act, means a paternal uncle or aunt, or a maternal uncle or aunt, or paternal grandparent or maternal grandparent; (53) “State Agency” means the State Adoption Resource Agency set up by the State Government for dealing with adoption and related matters under section 67; 2[(54) “serious offences” includes the offences for which the punishment under the Indian Penal Code (45 of 1860) or any other law for the time being in force, is,— (a) minimum imprisonment for a term more than three years and not exceeding seven years; or 1. The words “the person in-charge of which is willing” omitted by Act 23 of 2021, s. 2 (w.e.f. 1-9-2022). 2. Subs. by s. 2, ibid., for clause (54) (w.e.f. 1-9-2022). 10 ----- (b) maximum imprisonment for a term more than seven years but no minimum imprisonment or minimum imprisonment of less than seven years is provided.] (55) “special juvenile police unit” means a unit of the police force of a district or city or, as the case may be, any other police unit like railway police, dealing with children and designated as such for handling children under section 107; (56) “special home” means an institution established by a State Government or by a voluntary or non-governmental organisation, registered under section 48, for housing and providing rehabilitative services to children in conflict with law, who are found, through inquiry, to have committed an offence and are sent to such institution by an order of the Board; (57) “Specialised Adoption Agency” means an institution established by the State Government or by a voluntary or non-governmental organisation and recognised under section 65, for housing orphans, abandoned and surrendered children, placed there by order of the Committee, for the purpose of adoption; (58) “sponsorship” means provision of supplementary support, financial or otherwise, to the families to meet the medical, educational and developmental needs of the child; (59) “State Government”, in relation to a Union territory, means the Administrator of that Union [territory appointed by the President under article 239 of the Constitution;](javascript:fnOpenLinkPopUp('784','17181');) (60) “surrendered child” means a child, who is relinquished by the parent or guardian to the Committee, on account of physical, emotional and social factors beyond their control, and declared as such by the Committee; (61) all words and expressions used but not defined in this Act and defined in other Acts shall have the meanings respectively assigned to them in those Acts. CHAPTER II GENERAL PRINCIPLES OF CARE AND PROTECTION OF CHILDREN **3. General principles to be followed in administration of Act.—The Central Government, the State** Governments, [1][the Board, the Committee, or] other agencies, as the case may be, while implementing the provisions of this Act shall be guided by the following fundamental principles, namely:— (i) Principle of presumption of innocence: Any child shall be presumed to be an innocent of any _mala fide or criminal intent up to the age of eighteen years._ (ii) _Principle of dignity and worth: All human beings shall be treated with equal dignity and_ rights. (iii) Principle of participation: Every child shall have a right to be heard and to participate in all processes and decisions affecting his interest and the child’s views shall be taken into consideration with due regard to the age and maturity of the child. (iv) _Principle of best interest: All decisions regarding the child shall be based on the primary_ consideration that they are in the best interest of the child and to help the child to develop full potential. (v) Principle of family responsibility: The primary responsibility of care, nurture and protection of the child shall be that of the biological family or adoptive or foster parents, as the case may be. (vi) _Principle of safety: All measures shall be taken to ensure that the child is safe and is not_ subjected to any harm, abuse or maltreatment while in contact with the care and protection system, and thereafter. (vii) _Positive measures: All resources are to be mobilised including those of family and_ community, for promoting the well-being, facilitating development of identity and providing an 1. Subs. by Act 23 of 2021, s. 3, for “the Board, and” (w.e.f. 1-9-2022). 11 ----- inclusive and enabling environment, to reduce vulnerabilities of children and the need for intervention under this Act. (viii) Principle of non-stigmatising semantics: Adversarial or accusatory words are not to be used in the processes pertaining to a child. (ix) Principle of non-waiver of rights: No waiver of any of the right of the child is permissible or valid, whether sought by the child or person acting on behalf of the child, or a Board or a Committee and any non-exercise of a fundamental right shall not amount to waiver. (x) Principle of equality and non-discrimination: There shall be no discrimination against a child on any grounds including sex, caste, ethnicity, place of birth, disability and equality of access, opportunity and treatment shall be provided to every child. (xi) Principle of right to privacy and confidentiality: Every child shall have a right to protection of his privacy and confidentiality, by all means and throughout the judicial process. (xii) _Principle of institutionalisation as a measure of last resort: A child shall be placed in_ institutional care as a step of last resort after making a reasonable inquiry. (xiii) _Principle of repatriation and restoration: Every child in the juvenile justice system shall_ have the right to be re-united with his family at the earliest and to be restored to the same socioeconomic and cultural status that he was in, before coming under the purview of this Act, unless such restoration and repatriation is not in his best interest. (xiv) _Principle of fresh start: All past records of any child under the Juvenile Justice system_ should be erased except in special circumstances. (xv) _Principle of diversion: Measures for dealing with children in conflict with law without_ resorting to judicial proceedings shall be promoted unless it is in the best interest of the child or the society as a whole. (xvi) _Principles of natural justice: Basic procedural standards of fairness shall be adhered to,_ including the right to a fair hearing, rule against bias and the right to review, by all persons or bodies, acting in a judicial capacity under this Act. CHAPTER III JUVENILE JUSTICE BOARD **4. Juvenile Justice Board.—(1) Notwithstanding anything contained in the Code of Criminal** Procedure, 1973 (2 of 1974), the State Government shall, constitute for every district, one or more Juvenile Justice Boards for exercising the powers and discharging its functions relating to children in conflict with law under this Act. (2) A Board shall consist of a Metropolitan Magistrate or a Judicial Magistrate of First Class not being Chief Metropolitan Magistrate or Chief Judicial Magistrate (hereinafter referred to as Principal Magistrate) with at least three years experience and two social workers selected in such manner as may be prescribed, of whom at least one shall be a woman, forming a Bench and every such Bench shall have the powers conferred by the Code of Criminal Procedure, 1973 (2 of 1974) on a Metropolitan Magistrate or, as the case may be, a Judicial Magistrate of First Class. (3) No social worker shall be appointed as a member of the Board unless such person has been actively involved in health, education, or welfare activities pertaining to children for atleast seven years or a practicing professional with a degree in child psychology, psychiatry, sociology or law. (4) No person shall be eligible for selection as a member of the Board, if he— (i) has any past record of violation of human rights or child rights; (ii) has been convicted of an offence involving moral turpitude, and such conviction has not been reversed or has not been granted full pardon in respect of such offence; 12 ----- (iii) has been removed or dismissed from service of the Central Government or a State Government or an undertaking or corporation owned or controlled by the Central Government or a State Government; (iv) has ever indulged in child abuse or employment of child labour or any other violation of human rights or immoral act. (5) The State Government shall ensure that induction training and sensitisation of all members including Principal Magistrate of the Board on care, protection, rehabilitation, legal provisions and justice for children, as may be prescribed, is provided within a period of sixty days from the date of appointment. (6) The term of office of the members of the Board and the manner in which such member may resign shall be such, as may be prescribed. (7) The appointment of any member of the Board, except the Principal Magistrate, may be terminated after holding an inquiry by the State Government, if he— (i) has been found guilty of misuse of power vested under this Act; or (ii) fails to attend the proceedings of the Board consecutively for three months without any valid reason; or (iii) fails to attend [1][minimum] three-fourths of the sittings in a year; or (iv) becomes ineligible under sub-section (4) during his term as a member. **5. Placement of person, who cease to be a child during process of inquiry.—Where an inquiry has** been initiated in respect of any child under this Act, and during the course of such inquiry, the child completes the age of eighteen years, then, notwithstanding anything contained in this Act or in any other law for the time being in force, the inquiry may be continued by the Board and orders may be passed in respect of such person as if such person had continued to be a child. **6. Placement of persons, who committed an offence, when person was below the age of eighteen** **years.—(1) Any person, who has completed eighteen years of age, and is apprehended for committing an** offence when he was below the age of eighteen years, then, such person shall, subject to the provisions of this section, be treated as a child during the process of inquiry. (2) The person referred to in sub-section (1), if not released on bail by the Board shall be placed in a place of safety during the process of inquiry. (3) The person referred to in sub-section (1) shall be treated as per the procedure specified under the provisions of this Act. **7. Procedure in relation to Board.—(1) The Board shall meet at such times and shall observe such** rules in regard to the transaction of business at its meetings, as may be prescribed and shall ensure that all procedures are child friendly and that the venue is not intimidating to the child and does not resemble as regular courts. (2) A child in conflict with law may be produced before an individual member of the Board, when the Board is not in sitting. (3) A Board may act notwithstanding the absence of any member of the Board, and no order passed by the Board shall be invalid by the reason only of the absence of any member during any stage of proceedings: Provided that there shall be atleast two members including the Principal Magistrate present at the time of final disposal of the case or in making an order under sub-section (3) of section 18. (4) In the event of any difference of opinion among the members of the Board in the interim or final disposal, the opinion of the majority shall prevail, but where there is no such majority, the opinion of the Principal Magistrate, shall prevail. 1. Subs. by Act 23 of 2021, s. 4, for “less than” (w.e.f. 1-9-2022). 13 ----- **8. Powers, functions and responsibilities of the Board.—(1) Notwithstanding anything contained in** any other law for the time being in force but save as otherwise expressly provided in this Act, the Board constituted for any district shall have the power to deal exclusively with all the proceedings under this Act, relating to children in conflict with law, in the area of jurisdiction of such Board. (2) The powers conferred on the Board by or under this Act may also be exercised by the High Court and the Children’s Court, when the proceedings come before them under section 19 or in appeal, revision or otherwise. (3) The functions and responsibilities of the Board shall include— (a) ensuring the informed participation of the child and the parent or guardian, in every step of the process; (b) ensuring that the child’s rights are protected throughout the process of apprehending the child, inquiry, aftercare and rehabilitation; (c) ensuring availability of legal aid for the child through the legal services institutions; (d) wherever necessary the Board shall provide an interpreter or translator, having such qualifications, experience, and on payment of such fees as may be prescribed, to the child if he fails to understand the language used in the proceedings; (e) directing the Probation Officer, or in case a Probation Officer is not available to the Child Welfare Officer or a social worker, to undertake a social investigation into the case and submit a social investigation report within a period of fifteen days from the date of first production before the Board to ascertain the circumstances in which the alleged offence was committed; (f) adjudicate and dispose of cases of children in conflict with law in accordance with the process of inquiry specified in section 14; (g) transferring to the Committee, matters concerning the child alleged to be in conflict with law, stated to be in need of care and protection at any stage, thereby recognising that a child in conflict with law can also be a child in need of care simultaneously and there is a need for the Committee and the Board to be both involved; (h) disposing of the matter and passing a final order that includes an individual care plan for the child’s rehabilitation, including follow up by the Probation Officer or the District Child Protection Unit or a member of a non-governmental organisation, as may be required; (i) conducting inquiry for declaring fit persons regarding care of children in conflict with law; (j) conducting at least one inspection visit every month of residential facilities for children in conflict with law and recommend action for improvement in quality of services to the District Child Protection Unit and the State Government; (k) order the police for registration of first information report for offences committed against any child in conflict with law, under this Act or any other law for the time being in force, on a complaint made in this regard; (l) order the police for registration of first information report for offences committed against any child in need of care and protection, under this Act or any other law for the time being in force, on a written complaint by a Committee in this regard; (m) conducting regular inspection of jails meant for adults to check if any child is lodged in such jails and take immediate measures for transfer of [1][that child to an observation home or place of safety, as the case may be]; and (n) any other function as may be prescribed. **9. Procedure to be followed by a Magistrate who has not been empowered under this Act.—(1)** When a Magistrate, not empowered to exercise the powers of the Board under this Act is of the opinion 1. Subs. by Act 23 of 2021, s. 5, for “of such a child to the observation home” (w.e.f. 1-9-2022). 14 ----- that the person alleged to have committed the offence and brought before him is a child, he shall, without any delay, record such opinion and forward the child immediately along with the record of such proceedings to the Board having jurisdiction. (2) In case a person alleged to have committed an offence claims before a court other than a Board, that the person is a child or was a child on the date of commission of the offence, or if the court itself is of the opinion that the person was a child on the date of commission of the offence, the said court shall make an inquiry, take such evidence as may be necessary (but not an affidavit) to determine the age of such person, and shall record a finding on the matter, stating the age of the person as nearly as may be: Provided that such a claim may be raised before any court and it shall be recognised at any stage, even after final disposal of the case, and such a claim shall be determined in accordance with the provisions contained in this Act and the rules made thereunder even if the person has ceased to be a child on or before the date of commencement of this Act. (3) If the court finds that a person has committed an offence and was a child on the date of commission of such offence, it shall forward the child to the Board for passing appropriate orders and the sentence, if any, passed by the court shall be deemed to have no effect. (4) In case a person under this section is required to be kept in protective custody, while the person’s claim of being a child is being inquired into, such person may be placed, in the intervening period in a place of safety. CHAPTER IV PROCEDURE IN RELATION TO CHILDREN IN CONFLICT WITH LAW **10. Apprehension of child alleged to be in conflict with law.—(1) As soon as a child alleged to be** in conflict with law is apprehended by the police, such child shall be placed under the charge of the special juvenile police unit or the designated child welfare police officer, who shall produce the child before the Board without any loss of time but within a period of twenty-four hours of apprehending the child excluding the time necessary for the journey, from the place where such child was apprehended: Provided that in no case, a child alleged to be in conflict with law shall be placed in a police lockup or lodged in a jail. (2) The State Government shall make rules consistent with this Act,— (i) to provide for persons through whom (including registered voluntary or non-governmental organisations) any child alleged to be in conflict with law may be produced before the Board; (ii) to provide for the manner in which the child alleged to be in conflict with law may be sent to an observation home or place of safety, as the case may be. **11. Role of person in whose charge child in conflict with law is placed.—Any person in whose** charge a child in conflict with law is placed, shall while the order is in force, have responsibility of the said child, as if the said person was the child’s parent and responsible for the child’s maintenance: Provided that the child shall continue in such person’s charge for the period stated by the Board, notwithstanding that the said child is claimed by the parents or any other person except when the Board is of the opinion that the parent or any other person are fit to exercise charge over such child. **12. Bail to a person who is apparently a child alleged to be in conflict with law.—(1) When any** person, who is apparently a child and is alleged to have committed a abailable or non-bailable offence, is apprehended or detained by the police or appears or brought before a Board, such person shall, notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974) or in any other law for the time being in force, be released on bail with or without surety or placed under the supervision of a probation officer or under the care of any fit person: Provided that such person shall not be so released if there appears reasonable grounds for believing that the release is likely to bring that person into association with any known criminal or expose the said person to moral, physical or psychological danger or the person’s release would defeat the ends of justice, and the Board shall record the reasons for denying the bail and circumstances that led to such a decision. 15 ----- (2) When such person having been apprehended is not released on bail under sub-section (1) by the officer-in-charge of the police station, such officer shall cause the person to be kept only in an observation home [1][or a place of safety, as the case may be] in such manner as may be prescribed until the person can be brought before a Board. (3) When such person is not released on bail under sub-section (1) by the Board, it shall make an order sending him to an observation home or a place of safety, as the case may be, for such period during the pendency of the inquiry regarding the person, as may be specified in the order. (4) When a child in conflict with law is unable to fulfil the conditions of bail order within seven days of the bail order, such child shall be produced before the Board for modification of the conditions of bail. **13. Information to parents, guardian or probation officer.—(1) Where a child alleged to be in** conflict with law is apprehended, the officer designated as Child Welfare Police Officer of the police station, or the special juvenile police unit to which such child is brought, shall, as soon as possible after apprehending the child, inform— (i) the parent or guardian of such child, if they can be found, and direct them to be present at the Board before which the child is produced; and (ii) the probation officer, or if no probation officer is available, a Child Welfare Officer, for preparation and submission within two weeks to the Board, a social investigation report containing information regarding the antecedents and family background of the child and other material circumstances likely to be of assistance to the Board for making the inquiry. (2) Where a child is released on bail, the probation officer or the Child Welfare Officer shall be informed by the Board. **14. Inquiry by Board regarding child in conflict with law.—(1) Where a child alleged to be in** conflict with law is produced before Board, the Board shall hold an inquiry in accordance with the provisions of this Act and may pass such orders in relation to such child as it deems fit under sections 17 and 18 of this Act. (2) The inquiry under this section shall be completed within a period of four months from the date of first production of the child before the Board, unless the period is extended, for a maximum period of two more months by the Board, having regard to the circumstances of the case and after recording the reasons in writing for such extension. (3) A preliminary assessment in case of heinous offences under section 15 shall be disposed of by the Board within a period of three months from the date of first production of the child before the Board. (4) If inquiry by the Board under sub-section (2) for petty offences remains inconclusive even after the extended period, the proceedings shall stand terminated: Provided that for serious or heinous offences, in case the Board requires further extension of time for completion of inquiry, the same shall be granted by the Chief Judicial Magistrate or, as the case may be, the Chief Metropolitan Magistrate, for reasons to be recorded in writing. (5) The Board shall take the following steps to ensure fair and speedy inquiry, namely:— (a) at the time of initiating the inquiry, the Board shall satisfy itself that the child in conflict with law has not been subjected to any ill-treatment by the police or by any other person, including a lawyer or probation officer and take corrective steps in case of such ill-treatment; (b) in all cases under the Act, the proceedings shall be conducted in simple manner as possible and care shall be taken to ensure that the child, against whom the proceedings have been instituted, is given child-friendly atmosphere during the proceedings; (c) every child brought before the Board shall be given the opportunity of being heard and participate in the inquiry; 1. Ins. by Act 23 of 2021, s. 6 (w.e.f. 1-9-2022). 16 ----- (d) cases of petty offences, shall be disposed of by the Board through summary proceedings, as per the procedure prescribed under the Code of Criminal Procedure, 1973 (2 of 1974); (e) inquiry of serious offences shall be disposed of by the Board, by following the procedure, for trial in summons cases under the Code of Criminal Procedure, 1973 (2 of 1974); (f) inquiry of heinous offences,— (i) for child below the age of sixteen years as on the date of commission of an offence shall be disposed of by the Board under clause (e); (ii) for child above the age of sixteen years as on the date of commission of an offence shall be dealt with in the manner prescribed under section 15. **15. Preliminary assessment into heinous offences by Board.—(1) In case of a heinous offence** alleged to have been committed by a child, who has completed or is above the age of sixteen years, the Board shall conduct a preliminary assessment with regard to his mental and physical capacity to commit such offence, ability to understand the consequences of the offence and the circumstances in which he allegedly committed the offence, and may pass an order in accordance with the provisions of sub-section (3) of section 18: Provided that for such an assessment, the Board may take the assistance of experienced psychologists or psycho-social workers or other experts. _Explanation.—For the purposes of this section, it is clarified that preliminary assessment is not a trial,_ but is to assess the capacity of such child to commit and understand the consequences of the alleged offence. (2) Where the Board is satisfied on preliminary assessment that the matter should be disposed of by the Board, then the Board shall follow the procedure, as far as may be, for trial in summons case under the Code of Criminal Procedure, 1973 (2 of 1974): Provided that the order of the Board to dispose of the matter shall be appealable under sub-section (2) of section 101: Provided further that the assessment under this section shall be completed within the period specified in section 14. **16. Review of pendency of inquiry.—(1) The Chief Judicial Magistrate or the Chief Metropolitan** Magistrate shall review the pendency of cases of the Board once in every three months, and shall direct the Board to increase the frequency of its sittings or may recommend the constitution of additional Boards. (2) The number of cases pending before the Board, duration of such pendency, nature of pendency and reasons thereof shall be reviewed in every six months by a high level committee consisting of the Executive Chairperson of the State Legal Services Authority, who shall be the Chairperson, the Home Secretary, the Secretary responsible for the implementation of this Act in the State and a representative from a voluntary or non-governmental organisation to be nominated by the Chairperson. (3) The information of such pendency shall also be furnished by the Board to the Chief Judicial Magistrate or the Chief Metropolitan Magistrate and the District Magistrate on quarterly basis in such form as may be prescribed by the State Government. 1[(4) The District Magistrate may, as and when required, in the best interest of a child, call for any information from all the stakeholders including the Board and the Committee.] **17. Orders regarding a child not found to be in conflict with law.—(1) Where a Board is satisfied** on inquiry that the child brought before it has not committed any offence, then notwithstanding anything contrary contained in any other law for the time being in force, the Board shall pass order to that effect. 1. Ins. by Act 23 of 2021, s. 7, (w.e.f. 1-9-2022). 17 ----- (2) In case it appears to the Board that the child referred to in sub-section (1) is in need of care and protection, it may refer the child to the Committee with appropriate directions. **18. Orders regarding child found to be in conflict with law.—(1) Where a Board is satisfied on** inquiry that a child irrespective of age has committed a petty offence, or a serious offence, or a child below the age of sixteen years has committed a heinous offence, [1][or a child above the age of sixteen years has committed a heinous offence and the Board has, after preliminary assessment under Section 15, disposed of the matter] then, notwithstanding anything contrary contained in any other law for the time being in force, and based on the nature of offence, specific need for supervision or intervention, circumstances as brought out in the social investigation report and past conduct of the child, the Board may, if it so thinks fit,— (a) allow the child to go home after advice or admonition by following appropriate inquiry and counselling to such child and to his parents or the guardian; (b) direct the child to participate in group counselling and similar activities; (c) order the child to perform community service under the supervision of an organisation or institution, or a specified person, persons or group of persons identified by the Board; (d) order the child or parents or the guardian of the child to pay fine: Provided that, in case the child is working, it may be ensured that the provisions of any labour law for the time being in force are not violated; (e) direct the child to be released on probation of good conduct and placed under the care of any parent, guardian or fit person, on such parent, guardian or fit person executing a bond, with or without surety, as the Board may require, for the good behaviour and child’s well-being for any period not exceeding three years; (f) direct the child to be released on probation of good conduct and placed under the care and supervision of any fit facility for ensuring the good behaviour and child’s well-being for any period not exceeding three years; (g) direct the child to be sent to a special home, for such period, not exceeding three years, as it thinks fit, for providing reformative services including education, skill development, counselling, behaviour modification therapy, and psychiatric support during the period of stay in the special home: Provided that if the conduct and behaviour of the child has been such that, it would not be in the child’s interest, or in the interest of other children housed in a special home, the Board may send such child to the place of safety. (2) If an order is passed under clauses (a) to (g) of sub-section (1), the Board may, in addition pass orders to— (i) attend school; or (ii) attend a vocational training centre; or (iii) attend a therapeutic centre; or (iv) prohibit the child from visiting, frequenting or appearing at a specified place; or (v) undergo a de-addiction programme. (3) Where the Board after preliminary assessment under section 15 pass an order that there is a need for trial of the said child as an adult, then the Board may order transfer of the trial of the case to the Children’s Court having jurisdiction to try such offences. **19. Powers of Children’s Court.—(1) After the receipt of preliminary assessment from the Board** under section 15, the Children’s Court may decide that— 1. Ins. by Act 23 of 2021, s. 8, (w.e.f. 1-9-2022). 18 ----- (i) there is a need for trial of the child as an adult as per the provisions of the Code of Criminal Procedure, 1973 (2 of 1974) and pass appropriate orders after trial subject to the provisions of this section and section 21, considering the special needs of the child, the tenets of fair trial and maintaining a child friendly atmosphere; (ii) there is no need for trial of the child as an adult and may conduct an inquiry as a Board and pass appropriate orders in accordance with the provisions of section 18. (2) The Children’s Court shall ensure that the final order, with regard to a child in conflict with law, shall include an individual care plan for the rehabilitation of child, including follow up by the probation officer or the District Child Protection Unit or a social worker. (3) The Children’s Court shall ensure that the child who is found to be in conflict with law is sent to a place of safety till he attains the age of twenty-one years and thereafter, the person shall be transferred to a jail: Provided that the reformative services including educational services, skill development, alternative therapy such as counselling, behaviour modification therapy, and psychiatric support shall be provided to the child during the period of his stay in the place of safety. (4) The Children’s Court shall ensure that there is a periodic follow up report every year by the probation officer or the District Child Protection Unit or a social worker, as required, to evaluate the progress of the child in the place of safety and to ensure that there is no ill-treatment to the child in any form. (5) The reports under sub-section (4) shall be forwarded to the Children’s Court for record and follow up, as may be required. **20. Child attained age of twenty-one years and yet to complete prescribed term of stay in place** **of safety.—(1) When the child in conflict with the law attains the age of twenty-one years and is yet to** complete the term of stay, the Children’s Court shall provide for a follow up by the probation officer or the District Child Protection Unit or a social worker or by itself, as required, to evaluate if such child has undergone reformative changes and if the child can be a contributing member of the society and for this purpose the progress records of the child under sub-section (4) of section 19, along with evaluation of relevant experts are to be taken into consideration. (2) After the completion of the procedure specified under sub-section (1), the Children’s Court may— (i) decide to release the child on such conditions as it deems fit which includes appointment of a monitoring authority for the remainder of the prescribed term of stay; (ii) decide that the child shall complete the remainder of his term in a jail: Provided that each State Government shall maintain a list of monitoring authorities and monitoring procedures as may be prescribed. **21. Order that may not be passed against a child in conflict with law.—No child in conflict with** law shall be sentenced to death or for life imprisonment without the possibility of release, for any such offence, either under the provisions of this Act or under the provisions of the Indian Penal Code (45 of 1860) or any other law for the time being in force. **22. Proceeding under Chapter VIII of the Code of Criminal Procedure not to apply against** **child.—Notwithstanding anything to the contrary contained in the Code of Criminal Procedure, 1973** (2 of 1974), or any preventive detention law for the time being in force, no proceeding shall be instituted and no order shall be passed against any child under Chapter VIII of the said Code. **23. No joint proceedings of child in conflict with law and person not a child.—(1)** [Notwithstanding anything contained in section 223 of the Code of Criminal Procedure, 1973 (2 of 1974)](javascript:fnOpenLinkPopUp('783','16657');) or in any other law for the time being in force, there shall be no joint proceedings of a child alleged to be in conflict with law, with a person who is not a child. (2) If during the inquiry by the Board or by the Children’s Court, the person alleged to be in conflict with law is found that he is not a child, such person shall not be tried along with a child. 19 ----- **24. Removal of disqualification on the findings of an offence.—(1) Notwithstanding anything** contained in any other law for the time being in force, a child who has committed an offence and has been dealt with under the provisions of this Act shall not suffer disqualification, if any, attached to a conviction of an offence under such law: Provided that in case of a child who has completed or is above the age of sixteen years and is found to be in conflict with law by the Children’s Court under clause (i) of sub-section (1) of section 19, the provisions of sub-section (1) shall not apply. (2) The Board shall make an order directing the Police, or by the Children’s Court to its own registry that the relevant records of such conviction shall be destroyed after the expiry of the period of appeal or, as the case may be, a reasonable period as may be prescribed: Provided that in case of a heinous offence where the child is found to be in conflict with law under clause (i) of sub-section (1) of section 19, the relevant records of conviction of such child shall be retained by the Children’s Court. **25. Special provision in respect of pending cases.—Notwithstanding anything contained in this Act,** all proceedings in respect of a child alleged or found to be in conflict with law pending before any Board or court on the date of commencement of this Act, shall be continued in that Board or court as if this Act had not been enacted. **26. Provision with respect of run away child in conflict with law.—(1) Notwithstanding anything** to the contrary contained in any other law for the time being in force, any police officer may take charge of a child in conflict with law who has run away from a special home or an observation home or a place of safety or from the care of a person or institution under whom the child was placed under this Act. (2) The child referred to in sub-section (1) shall be produced, within twenty-four hours, preferably before the Board which passed the original order in respect of that child, if possible, or to the nearest Board where the child is found. (3) The Board shall ascertain the reasons for the child having run away and pass appropriate orders for the child to be sent back either to the institution or person from whose custody the child had run away or any other similar place or person, as the Board may deem fit: Provided that the Board may also give additional directions regarding any special steps that may be deemed necessary, for the best interest of the child. (4) No additional proceeding shall be instituted in respect of such child. CHAPTER V CHILD WELFARE COMMITTEE **27. Child Welfare Committee.—(1) The State Government shall by notification in the Official** Gazette constitute for every district, one or more Child Welfare Committees for exercising the powers and to discharge the duties conferred on such Committees in relation to children in need of care and protection under this Act and ensure that induction training and sensitisation of all members of the committee is provided within two months from the date of notification. (2) The Committee shall consist of a Chairperson, and four other members as the State Government may think fit to appoint, of whom at least one shall be a woman and another, an expert on the matters concerning children. (3) The District Child Protection Unit shall provide a Secretary and other staff that may be required for secretarial support to the Committee for its effective functioning. 1[(4) No person shall be appointed as a member of the Committee unless he has a degree in child psychology or psychiatry or law or social work or sociology or human health or education or human development or special education for differently abled children and has been actively involved in health, 1. Subs. by Act 23 of 2021, s. 9, for sub-section (4) (w.e.f. 1-9-2022). 20 ----- education or welfare activities pertaining to children for seven years or is a practicing professional with a degree in child psychology or psychiatry or law or social work or sociology or human health or education or human development or special education for differently abled children. (4A) No person shall be eligible for selection as a member of the Committee, if he— (i) has any past record of violation of human rights or child rights, (ii) has been convicted of an offence involving moral turpitude, and such conviction has not been reversed or has not been granted full pardon in respect of such offence, (iii) has been removed or dismissed from service of the Government of India or State Government or an undertaking or corporation owned or controlled by the Government of India or State Government, (iv) has ever indulged in child abuse or employment of child labour or immoral act or any other violation of human rights or immoral acts, or (v) is part of management of a child care institution in a District.] (5) No person shall be appointed as a member unless he possesses such other qualifications as may be prescribed. (6) No person shall be appointed for a period of more than three years as a member of the Committee. (7) The appointment of any member of the Committee shall be terminated by the State Government after making an inquiry, if— (i) he has been found guilty of misuse of power vested on him under this Act; (ii) he has been convicted of an offence involving moral turpitude and such conviction has not been reversed or he has not been granted full pardon in respect of such offence; (iii) he fails to attend the proceedings of the Committee consecutively for three months without any valid reason or he fails to attend [1][minimum] three-fourths of the sittings in a year. 2 [(8) The Committee shall submit a report to the District Magistrate in such form as may be prescribed and the District Magistrate shall conduct a quarterly review of the functioning of the Committee.] (9) The Committee shall function as a Bench and shall have the powers conferred by the Code of Criminal Procedure, 1973 (2 of 1974) on a Metropolitan Magistrate or, as the case may be, a Judicial Magistrate of First Class. 3[(10) The District Magistrate shall be the grievance redressal authority to entertain any grievance arising out of the functioning of the Committee and the affected child or anyone connected with the child, as the case may be, may file a complaint before the District Magistrate who shall take cognizance of the action of the Committee and, after giving the parties an opportunity of being heard, pass appropriate order.] **28. Procedure in relation to Committee.—(1) The Committee shall meet at least twenty days in a** month and shall observe such rules and procedures with regard to the transaction of business at its meetings, as may be prescribed. 1. Subs. by Act 23 of 2021, s. 9, for “less than” (w.e.f. 1-9-2022). 2. Subs. by s. 9, ibid., for sub-section (8) (w.e.f. 1-9-2022). 3. Subs. by s. 9, ibid., for sub-section (10) (w.e.f. 1-9-2022). 21 ----- (2) A visit to an existing child care institution by the Committee, to check its functioning and well being of children shall be considered as a sitting of the Committee. (3) A child in need of care and protection may be produced before an individual member of the Committee for being placed in a Children’s Home or fit person when the Committee is not in session. (4) In the event of any difference of opinion among the members of the Committee at the time of taking any decision, the opinion of the majority shall prevail but where there is no such majority, the opinion of the Chairperson shall prevail. (5) Subject to the provisions of sub-section (1), the Committee may act, notwithstanding the absence of any member of the Committee, and no order made by the Committee shall be invalid by reason only of the absence of any member during any stage of the proceeding: Provided that there shall be at least three members present at the time of final disposal of the case. **29. Powers of Committee.—(1) The Committee shall have the authority to dispose of cases for the** care, protection, treatment, development and rehabilitation of children in need of care and protection, as well as to provide for their basic needs and protection. (2) Where a Committee has been constituted for any area, such Committee shall, notwithstanding anything contained in any other law for the time being in force, but save as otherwise expressly provided in this Act, have the power to deal exclusively with all proceedings under this Act relating to children in need of care and protection. **30. Functions and responsibilities of Committee.—The functions and responsibilities of the** Committee shall include— (i) taking cognizance of and receiving the children produced before it; (ii) conducting inquiry on all issues relating to and affecting the safety and well-being of the children under this Act; (iii) directing the Child Welfare Officers or probation officers or District Child Protection Unit or non-governmental organisations to conduct social investigation and submit a report before the Committee; (iv) conducting inquiry for declaring fit persons for care of children in need of care and protection; (v) directing placement of a child in foster care; (vi) ensuring care, protection, appropriate rehabilitation or restoration of children in need of care and protection, based on the child’s individual care plan and passing necessary directions to parents or guardians or fit persons or children’s homes or fit facility in this regard; (vii) selecting registered institution for placement of each child requiring institutional support, based on the child’s age, gender, disability and needs and keeping in mind the available capacity of the institution; (viii) conducting at least two inspection visits per month of residential facilities for children in need of care and protection and recommending action for improvement in quality of services to the District Child Protection Unit and the State Government; (ix) certifying the execution of the surrender deed by the parents and ensuring that they are given time to reconsider their decision as well as making all efforts to keep the family together; (x) ensuring that all efforts are made for restoration of abandoned or lost children to their families following due process, as may be prescribed; (xi) declaration of orphan, abandoned and surrendered child as legally free for adoption after due inquiry; 22 ----- (xii) taking _suo motu cognizance of cases and reaching out to children in need of care and_ protection, who are not produced before the Committee, provided that such decision is taken by at least three members; (xiii) taking action for rehabilitation of sexually abused children who are reported as children in need of care and protection to the Committee by Special Juvenile Police Unit or local police, as the case may be, under the Protection of Children from Sexual Offences Act, 2012 (32 of 2012); (xiv) dealing with cases referred by the Board under sub-section (2) of section 17; (xv) co-ordinate with the police, labour department and other agencies involved in the care and protection of children with support of the District Child Protection Unit or the State Government; (xvi) in case of a complaint of abuse of a child in any child care institution, the Committee shall conduct an inquiry and give directions to the police or the District Child Protection Unit or labour department or childline services, as the case may be; (xvii) accessing appropriate legal services for children; (xviii) such other functions and responsibilities, as may be prescribed. CHAPTER VI PROCEDURE IN RELATION TO CHILDREN IN NEED OF CARE AND PROTECTION **31. Production before Committee.—(1) Any child in need of care and protection may be produced** before the Committee by any of the following persons, namely:— (i) any police officer or special juvenile police unit or a designated Child Welfare Police Officer or any officer of District Child Protection Unit or inspector appointed under any labour law for the time being in force; (ii) any public servant; (iii) Childline Services or any voluntary or non-governmental organisation or any agency as may be recognised by the State Government; (iv) Child Welfare Officer or probation officer; (v) any social worker or a public spirited citizen; (vi) by the child himself; or (vii) any nurse, doctor or management of a nursing home, hospital or maternity home: Provided that the child shall be produced before the Committee without any loss of time but within a period of twenty-four hours excluding the time necessary for the journey. (2) The State Government may make rules consistent with this Act, to provide for the manner of submitting the report to the Committee and the manner of sending and entrusting the child to children’s home or fit facility or fit person, as the case may be, during the period of the inquiry. **32. Mandatory reporting regarding a child found separated from guardian.—(1) Any individual** or a police officer or any functionary of any organisation or a nursing home or hospital or maternity home, who or which finds and takes charge, or is handed over a child who appears or claims to be abandoned or lost, or a child who appears or claims to be an orphan without family support, shall within twenty-four hours (excluding the time necessary for the journey), give information to the Childline Services or the nearest police station or to a Child Welfare Committee or to the District Child Protection Unit, or hand over the child to a child care institution registered under this Act, as the case may be. 1[(2) The information regarding a child referred to in sub-section (1) shall be uploaded by the Committee or the District Child Protection Unit or the child care institution, as the case may be, on a portal as may be specified by the Central Government in this behalf.] 1. Subs. by Act 23 of 2021, s. 10, for sub-section (2) (w.e.f. 1-9-2022). 23 ----- **33. Offence of non-reporting.—If information regarding a child as required under section 32 is not** given within the period specified in the said section, then, such act shall be regarded as an offence. **34. Penalty for non-reporting.—Any person who has committed an offence under section 33 shall** be liable to imprisonment up to six months or fine of ten thousand rupees or both. **35. Surrender of children.—(1) A parent or guardian, who for physical, emotional and social factors** beyond their control, wishes to surrender a child, shall produce the child before the Committee. (2) If, after prescribed process of inquiry and counselling, the Committee is satisfied, a surrender deed shall be executed by the parent or guardian, as the case may be, before the Committee. (3) The parents or guardian who surrendered the child, shall be given two months time to reconsider their decision and in the intervening period the Committee shall either allow, after due inquiry, the child to be with the parents or guardian under supervision, or place the child in a Specialised Adoption Agency, if he or she is below six years of age, or a children’s home if he is above six years. **36. Inquiry.—(1) On production of a child or receipt of a report under section 31, the Committee** shall hold an inquiry in such manner as may be prescribed and the Committee, on its own or on the report from any person or agency as specified in sub-section (2) of section 31, may pass an order to send the child to the children’s home or a fit facility or fit person, and for speedy social investigation by a social worker or Child Welfare Officer or Child Welfare Police Officer: Provided that all children below six years of age, who are orphan, surrendered or appear to be abandoned shall be placed in a Specialised Adoption Agency, where available. (2) The social investigation shall be completed within fifteen days so as to enable the Committee to pass final order within four months of first production of the child: Provided that for orphan, abandoned or surrendered children, the time for completion of inquiry shall be as specified in section 38. (3) After the completion of the inquiry, if Committee is of the opinion that the said child has no family or ostensible support or is in continued need of care and protection, it may send the child to a Specialised Adoption Agency if the child is below six years of age, children’s home or to a fit facility or person or foster family, till suitable means of rehabilitation are found for the child, as may be prescribed, or till the child attains the age of eighteen years: Provided that the situation of the child placed in a children’s home or with a fit facility or person or a foster family, shall be reviewed by the Committee, as may be prescribed. (4) The Committee shall submit a quarterly report on the nature of disposal of cases and pendency of cases to the District Magistrate in the manner as may be prescribed, for review of pendency of cases. (5) After review under sub-section (4), the District Magistrate shall direct the Committee to take necessary remedial measures to address the pendency, if necessary and send a report of such reviews to the State Government, who may cause the constitution of additional Committees, if required: Provided that if the pendency of cases continues to be unaddressed by the Committee even after three months of receiving such directions, the State Government shall terminate the said Committee and shall constitute a new Committee. (6) In anticipation of termination of the Committee and in order that no time is lost in constituting a new Committee, the State Government shall maintain a standing panel of eligible persons to be appointed as members of the Committee. (7) In case of any delay in the constitution of a new Committee under sub-section (5), the Child Welfare Committee of a nearby district shall assume responsibility in the intervening period. **37. Orders passed regarding a child in need of care and protection.—(1) The Committee on being** satisfied through the inquiry that the child before the Committee is a child in need of care and protection, 24 ----- may, on consideration of Social Investigation Report [1][***] and taking into account the child’s wishes in case the child is sufficiently mature to take a view, pass one or more of the following orders, namely:— (a) declaration that a child is in need of care and protection; (b) restoration of the child to parents or guardian or family with or without supervision of Child Welfare Officer or designated social worker; (c) placement of the child in Children’s Home or fit facility or Specialised Adoption Agency for the purpose of adoption for long term or temporary care, keeping in mind the capacity of the institution for housing such children, either after reaching the conclusion that the family of the child cannot be traced or even if traced, restoration of the child to the family is not in the best interest of the child; (d) placement of the child with fit person for long term or temporary care; (e) foster care orders under section 44; (f) sponsorship orders under section 45; (g) directions to persons or institutions or facilities in whose care the child is placed, regarding care, protection and rehabilitation of the child, including directions relating to immediate shelter and services such as medical attention, psychiatric and psychological support including need-based counselling, occupational therapy or behaviour modification therapy, skill training, legal aid, educational services, and other developmental activities, as required, as well as follow-up and coordination with the District Child Protection Unit or State Government and other agencies; (h) declaration that the child is legally free for adoption under section 38. (2) The Committee may also pass orders for— (i) declaration of fit persons for foster care; (ii) getting after care support under section 46 of the Act; or (iii) any other order related to any other function as may be prescribed. **38. Procedure for declaring a child legally free for adoption.—(1) In case of orphan and** abandoned child, the Committee shall make all efforts for tracing the parents or guardians of the child and on completion of such inquiry, if it is established that the child is either an orphan having no one to take care, or abandoned, the Committee shall declare the child legally free for adoption: Provided that such declaration shall be made within a period of two months from the date of production of the child, for children who are up to two years of age and within four months for children above two years of age: Provided further that notwithstanding anything contained in this regard in any other law for the time being in force, no first information report shall be registered against any biological parent in the process of inquiry relating to an abandoned or surrendered child under this Act. (2) In case of surrendered child, the institution where the child has been placed by the Committee on an application for surrender, shall bring the case before the Committee immediately on completion of the period specified in section 35, for declaring the child legally free for adoption. (3) Notwithstanding anything contained in any other law for the time being in force, a child of a mentally retarded parents or a unwanted child of victim of sexual assault, such child may be declared free for adoption by the Committee, by following the procedure under this Act. (4) The decision to declare an orphan, abandoned or surrendered child as legally free for adoption shall be taken by at least three members of the Committee. 1. The words “submitted by Child Welfare Officer” omitted by Act 23 of 2021, s. 11 (w.e.f. 1-9-2022). 25 ----- (5) The Committee shall inform [1] [the District Magistrate] the State Agency and the Authority regarding the number of children declared as legally free for adoption and number of cases pending for decision in the manner as may be prescribed, every month. CHAPTER VII REHABILITATION AND SOCIAL RE-INTEGRATION **39. Process of rehabilitation and social re-integration.—(1) The process of rehabilitation and** social integration of children under this Act shall be undertaken, based on the individual care plan of the child, preferably through family based care such as by restoration to family or guardian with or without supervision or sponsorship, or adoption or foster care: Provided that all efforts shall be made to keep siblings placed in institutional or non-institutional care, together, unless it is in their best interest not to be kept together. (2) For children in conflict with law the process of rehabilitation and social integration shall be undertaken in the observation homes, if the child is not released on bail or in special homes or place of safety or fit facility or with a fit person, if placed there by the order of the Board. (3) The children in need of care and protection who are not placed in families for any reason may be placed in an institution registered for such children under this Act or with a fit person or a fit facility, on a temporary or long-term basis, and the process of rehabilitation and social integration shall be undertaken wherever the child is so placed. (4) The Children in need of care and protection who are leaving institutional care or children in conflict with law leaving special homes or place of safety on attaining eighteen years of age, may be provided financial support as specified in section 46, to help them to re-integrate into the mainstream of the society. **40. Restoration of child in need of care and protection.—(1) The restoration and protection of a** child shall be the prime objective of any Children’s Home, Specialised Adoption Agency or open shelter. (2) The Children’s Home, Specialised Adoption Agency or an open shelter, as the case may be, shall take such steps as are considered necessary for the restoration and protection of a child deprived of his family environment temporarily or permanently where such child is under their care and protection. (3) The Committee shall have the powers to restore any child in need of care and protection to his parents, guardian or fit person, as the case may be, after determining the suitability of the parents or guardian or fit person to take care of the child, and give them suitable directions. _Explanation.—For the purposes of this section, “restoration and protection of a child” means_ restoration to— (a) parents; (b) adoptive parents; (c) foster parents; (d) guardian; or (e) fit person. 2[(4) The Committee shall submit a quarterly report regarding restored, dead and runaway children to the State Government and the District Magistrate in such form as may be prescribed.] **41. Registration of child care institutions.—(1) Notwithstanding anything contained in any other** law for the time being in force, all institutions, whether run by a State Government or by voluntary or non-governmental organisations, which are meant, either wholly or partially, for housing children in need of care and protection or children in conflict with law, shall, be registered under this Act in such manner 1. Ins. by Act 23 of 2021, s. 12 (w.e.f. 1-9-2022). 2. Ins. by Act 23 of 2021, s. 13, (w.e.f. 1-9-2022). 26 ----- as may be prescribed, [1][***] regardless of whether they are receiving grants from the Central Government or, as the case may be, the State Government or not: Provided that the institutions having valid registration under the Juvenile Justice (Care and Protection of Children) Act, 2000 (56 of 2000) on the date of commencement of this Act shall be deemed to have been registered under this Act. (2) At the time of registration under this section, the State Government [2][shall, after considering the recommendations of the District Magistrate, determine] and record the capacity and purpose of the institution and shall register the institution as a Children’s Home or open shelter or Specialised Adoption Agency or observation home or special home or place of safety, as the case may be. (3) On receipt of application for registration under sub-section (1), from an existing or new institution housing children in need of care and protection or children in conflict with law, the State Government may grant provisional registration, within one month from the date of receipt of application, for a maximum period of six months, in order to bring such institution under the purview of this Act, and shall determine the capacity of the Home which shall be mentioned in the registration certificate: Provided that if the said institution does not fulfil the prescribed criteria for registration, within the period specified in sub-section (1), the provisional registration shall stand cancelled and the provisions of sub-section (5) shall apply. (4) If the State Government does not issue a provisional registration certificate within one month from the date of application, the proof of receipt of application for registration shall be treated as provisional registration to run an institution for a maximum period of six months. (5) If the application for registration is not disposed of within six months by any officer or officers of any State Government, it shall be regarded as dereliction of duty on their part by their higher controlling authority and appropriate departmental proceedings shall be initiated. (6) The period of registration of an institution shall be five years, and it shall be subject to renewal in every five years. (7) The State Government may, after following the procedure as may be prescribed, cancel or withhold registration, as the case may be, of such institutions which fail to provide rehabilitation and reintegration services as specified in section 53 and till such time that the registration of an institution is renewed or granted, the State Government shall manage the institution. (8) Any child care institution registered under this section shall be duty bound to admit children, subject to the capacity of the institution, as directed by the Committee, whether they are receiving grants from the Central Government or, as the case may be, the State Government or not. (9) Notwithstanding anything contained in any other law for the time being in force, the inspection committee appointed under section 54, shall have the powers to inspect any institution housing children, even if not registered under this Act to determine whether such institution is housing children in need of care and protection. **42. Penalty for non-registration of child care institutions.—Any person, or persons, in-charge of** an institution housing children in need of care and protection and children in conflict with law, who fails to comply with the provisions of sub-section (1) of section 41, shall be punished with imprisonment which may extend to one year or a fine of not less than one lakh rupees or both: Provided that every thirty days delay in applying for registration shall be considered as a separate offence. 1. The words “, within a period of six months from the date of commencement of this Act,” omitted by Act 23 of 2021, s. 14, (w.e.f. 1-9-2022). _2._ Subs by s. 14, ibid., for “shall determine” (w.e.f. 1-9-2022). 27 ----- **43. Open shelter.—(1) The State Government may establish and maintain, by itself or through** voluntary or non-governmental organisations, as many open shelters as may be required, and such open shelters shall be registered as such, in the manner as may be prescribed. (2) The open shelters referred to in sub-section (1) shall function as a community based facility for children in need of residential support, on short-term basis, with the objective of protecting them from abuse or weaning them, or keeping them, away from a life on the streets. (3) The open shelters shall send every month information, in the manner as may be prescribed, regarding children availing the services of the shelter, to the District Child Protection Unit and the Committee. **44. Foster care.—(1) The children in need of care and protection may be placed in foster care,** including group foster care for their care and protection through orders of the Committee, after following the procedure as may be prescribed in this regard, in a family which does not include the child’s biological or adoptive parents or in an unrelated family recognised as suitable for the purpose by the State Government, for a short or extended period of time. (2) The selection of the foster family shall be based on family’s ability, intent, capacity and prior experience of taking care of children. (3) All efforts shall be made to keep siblings together in foster families, unless it is in their best interest not to be kept together. (4) The State Government, after taking into account the number of children, shall provide monthly funding for such foster care through District Child Protection Unit after following the procedure, as may be prescribed, for inspection to ensure well being of the children. (5) In cases where children have been placed in foster care for the reason that their parents have been found to be unfit or incapacitated by the Committee, the child’s parents may visit the child in the foster family at regular intervals, unless the Committee feels that such visits are not in the best interest of the child, for reasons to be recorded therefor; and eventually, the child may return to the parent’s homes once the parents are determined by the Committee to be fit to take care of the child. (6) The foster family shall be responsible for providing education, health and nutrition to the child and shall ensure the overall well being of the child in such manner, as may be prescribed. (7) The State Government may make rules for the purpose of defining the procedure, criteria and the manner in which foster care services shall be provided for children. (8) The inspection of foster families shall be conducted every month by the Committee in the form as may be prescribed to check the well-being of the child and whenever a foster family is found lacking in taking care of the child, the child shall be removed from that foster family and shifted to another foster family as the Committee may deem fit. (9) No child regarded as adoptable by the Committee shall be given for long-term foster care. **45. Sponsorship.—(1) The State Government shall make rules for the purpose of undertaking various** programmes of sponsorship of children, such as individual to individual sponsorship, group sponsorship or community sponsorship. (2) The criteria for sponsorship shall include,— (i) where mother is a widow or divorced or abandoned by family; (ii) where children are orphan and are living with the extended family; (iii) where parents are victims of life threatening disease; 28 ----- (iv) where parents are incapacitated due to accident and unable to take care of children both financially and physically. (3) The duration of sponsorship shall be such as may be prescribed. (4) The sponsorship programme may provide supplementary support to families, to Children’s Homes and to special homes to meet medical, nutritional, educational and other needs of the children, with a view to improving their quality of life. **46. After care of children leaving child care institution.—Any child leaving a child care institution** on completion of eighteen years of age may be provided with financial support in order to facilitate child’s re-integration into the mainstream of the society in the manner as may be prescribed. **47. Observation homes.—(1) The State Government shall establish and maintain in every district or** a group of districts, either by itself, or through voluntary or non-governmental organisations, observation homes, which shall be registered under section 41 of this Act, for temporary reception, care and rehabilitation of any child alleged to be in conflict with law, during the pendency of any inquiry under this Act. (2) Where the State Government is of the opinion that any registered institution other than a home established or maintained under sub-section (1), is fit for the temporary reception of such child alleged to be in conflict with law during the pendency of any inquiry under this Act, it may register such institution as an observation home for the purposes of this Act. (3) The State Government may, by rules made under this Act, provide for the management and monitoring of observation homes, including the standards and various types of services to be provided by them for rehabilitation and social integration of a child alleged to be in conflict with law and the circumstances under which, and the manner in which, the registration of an observation home may be granted or withdrawn. (4) Every child alleged to be in conflict with law who is not placed under the charge of parent or guardian and is sent to an observation home shall be segregated according to the child’s age and gender, after giving due consideration to physical and mental status of the child and degree of the offence committed. **48. Special homes.—(1) The State Government may establish and maintain either by itself or through** voluntary or non-governmental organisations, special homes, which shall be registered as such, in the manner as may be prescribed, in every district or a group of districts, as may be required for rehabilitation of those children in conflict with law who are found to have committed an offence and who are placed there by an order of the Juvenile Justice Board made under section 18. (2) The State Government may, by rules, provide for the management and monitoring of special homes, including the standards and various types of services to be provided by them which are necessary for social re-integration of a child, and the circumstances under which, and the manner in which, the registration of a special home may be granted or withdrawn. (3) The rules made under sub-section (2) may also provide for the segregation and separation of children found to be in conflict with law on the basis of age, gender, the nature of offence committed by them and the child’s mental and physical status. **49. Place of safety.—(1) The State Government shall set up atleast one place of safety in a State** registered under section 41, so as to place a person above the age of eighteen years or child in conflict with law, who is between the age of sixteen to eighteen years and is accused of or convicted for committing a heinous offence. (2) Every place of safety shall have separate arrangement and facilities for stay of such children or persons during the process of inquiry and children or persons convicted of committing an offence. 29 ----- (3) The State Government may, by rules, prescribe the types of places that can be designated as place of safety under sub-section (1) and the facilities and services that may be provided therein. **50. Children’s Home.—(1) The State Government may establish and maintain, in every district or** group of districts, either by itself or through voluntary or non-governmental organisations, Children’s Homes, which shall be registered as such, for the placement of children in need of care and protection for their care, treatment, education, training, development and rehabilitation. (2) The State Government shall designate any Children’s Home as a home fit for children with special needs delivering specialised services, depending on requirement. (3) The State Government may, by rules, provide for the monitoring and management of Children’s Homes including the standards and the nature of services to be provided by them, based on individual care plans for each child. **51. Fit facility.—(1) The Board or the Committee shall recognise a facility being run by a** Governmental organisation or a voluntary or non-governmental organisation registered under any law for the time being in force to be fit to temporarily take the responsibility of a child for a specific purpose after due inquiry regarding the suitability of the facility and the organisation to take care of the child in such manner as may be prescribed. (2) The Board or the Committee may withdraw the recognition under sub-section (1) for reasons to be recorded in writing. **52. Fit person.—(1) The Board or the Committee shall, after due verification of credentials,** recognise any person fit to temporarily receive a child for care, protection and treatment of such child for a specified period and in the manner as may be prescribed. (2) The Board or Committee, as the case may be, may withdraw the recognition granted under sub section (1) for reasons to be recorded in writing. **53. Rehabilitation and re-integration services in institutions registered under this Act and** **management thereof.—(1) The services that shall be provided, by the institutions registered under this** Act in the process of rehabilitation and re-integration of children, shall be in such manner as may be prescribed, which may include— (i) basic requirements such as food, shelter, clothing and medical attention as per the prescribed standards; (ii) equipment such as wheel-chairs, prosthetic devices, hearing aids, braille kits, or any other suitable aids and appliances as required, for children with special needs; (iii) appropriate education, including supplementary education, special education, and appropriate education for children with special needs: Provided that for children between the age of six to fourteen years, the provisions of the Right of Children to Free and Compulsory Education Act, 2009 (35 of 2009) shall apply; (iv) skill development; (v) occupational therapy and life skill education; (vi) mental health interventions, including counselling specific to the need of the child; (vii) recreational activities including sports and cultural activities; 30 ----- (viii) legal aid where required; (ix) referral services for education, vocational training, de-addiction, treatment of diseases where required; (x) case management including preparation and follow up of individual care plan; (xi) birth registration; (xii) assistance for obtaining the proof of identity, where required; and (xiii) any other service that may reasonably be provided in order to ensure the well-being of the child, either directly by the State Government, registered or fit individuals or institutions or through referral services. (2) Every institution shall have a Management Committee, to be set up in a manner as may be prescribed, to manage the institution and monitor the progress of every child. (3) The officer in-charge of every institution, housing children above six years of age, shall facilitate setting up of children’s committees for participating in such activities as may be prescribed, for the safety and well-being of children in the institution. **54. Inspection of institutions registered under this Act.—(1) The State Government shall appoint** inspection committees for the State and district, as the case may be, for all institutions registered or recognised to be fit under this Act for such period and for such purposes, as may be prescribed. (2) Such inspection committees shall mandatorily conduct visits to all facilities housing children in the area allocated, at least once in three months in a team of not less than three members, of whom at least one shall be a woman and one shall be a medical officer, and submit reports of the findings of such visits within a week of their visit, to the [1][District Magistrate], for further action. (3) On the submission of the report by the inspection committee within a week of the inspection, appropriate action shall be taken within a month by the [2][District Magistrate] and a compliance report shall be submitted to the State Government. **55. Evaluation of functioning of structures.—(1) The Central Government or State Government** 3[or District Magistrate] may independently evaluate the functioning of the Board, Committee, special juvenile police units, registered institutions, or recognised fit facilities and persons, at such period and through such persons or institutions as may be prescribed by that Government. (2) In case such independent evaluation is conducted by both the Governments, the evaluation made by the Central Government shall prevail. CHAPTER VIII ADOPTION **56. Adoption.—(1) Adoption shall be resorted to for ensuring right to family for the orphan,** abandoned and surrendered children, as per the provisions of this Act, the rules made thereunder and the adoption regulations framed by the Authority. 1. Subs. by Act 23 of 2021, s. 15, for “District Child Protection Units or State Government, as the case may be” (w.e.f. 1-9 2022). 2. Subs. by s. 15, ibid., for “District Child Protection Unit or the State Government” (w.e.f. 1-9-2022). 3. Ins. by s. 16, ibid. (w.e.f. 1-9-2022). 31 ----- (2) Adoption of a child from a relative by another relative, irrespective of their religion, can be made as per the provisions of this Act and the adoption regulations framed by the Authority. (3) Nothing in this Act shall apply to the adoption of children made under the provisions of the Hindu Adoption and Maintenance Act, 1956 (78 of 1956). (4) All inter-country adoptions shall be done only as per the provisions of this Act and the adoption regulations framed by the Authority. (5) Any person, who takes or sends a child to a foreign country or takes part in any arrangement for transferring the care and custody of a child to another person in a foreign country without a valid order from the [1][District Magistrate], shall be punishable as per the provisions of section 80. **57. Eligibility of prospective adoptive parents.—(1) The prospective adoptive parents shall be** physically fit, financially sound, mentally alert and highly motivated to adopt a child for providing a good upbringing to him. (2) In case of a couple, the consent of both the spouses for the adoption shall be required. (3) A single or divorced person can also adopt, subject to fulfilment of the criteria and in accordance with the provisions of adoption regulations framed by the Authority. (4) A single male is not eligible to adopt a girl child. (5) Any other criteria that may be specified in the adoption regulations framed by the Authority. **58. Procedure for adoption by Indian prospective adoptive parents living in India.—(1) Indian** prospective adoptive parents living in India, irrespective of their religion, if interested to adopt an orphan or abandoned or surrendered child, may apply for the same to a Specialised Adoption Agency, in the manner as provided in the adoption regulations framed by the Authority. (2) The Specialised Adoption Agency shall prepare the home study report of the prospective adoptive parents and upon finding them eligible, will refer a child declared legally free for adoption to them along with the child study report and medical report of the child, in the manner as provided in the adoption regulations framed by the Authority. (3) On the receipt of the acceptance of the child from the prospective adoptive parents along with the child study report and medical report of the child signed by such parents, the Specialised Adoption Agency shall give the child in pre-adoption foster care and file an application [2][before the District Magisrate] for obtaining the adoption order, in the manner as provided in the adoption regulations framed by the Authority. (4) On the receipt of a certified copy of the [3][order passed by the District Magistrate], the Specialised Adoption Agency shall send immediately the same to the prospective adoptive parents. (5) The progress and wellbeing of the child in the adoptive family shall be followed up and ascertained in the manner as provided in the adoption regulations framed by the Authority. **59. Procedure for inter-country adoption of an orphan or abandoned or surrendered child.—(1)** If an orphan or abandoned or surrendered child could not be placed with an Indian or non-resident Indian prospective adoptive parent despite the joint effort of the Specialised Adoption Agency and State Agency within sixty days from the date the child has been declared legally free for adoption, such child shall be free for inter-country adoption: 1. Subs. by Act 23 of 2021, s. 17, for “Court” (w.e.f. 1-9-2022). 2. Subs. by s. 18, ibid., for “in the court” (w.e.f. 1-9-2022). 3. Subs. by s. 18, ibid., for “court order” (w.e.f. 1-9-2022). 32 ----- Provided that children with physical and mental disability, siblings and children above five years of age may be given preference over other children for such inter-country adoption, in accordance with the adoption regulations, as may be framed by the Authority. (2) An eligible non-resident Indian or overseas citizen of India or persons of Indian origin shall be given priority in inter-country adoption of Indian children. (3) A non-resident Indian or overseas citizen of India, or person of Indian origin or a foreigner, who are prospective adoptive parents living abroad, irrespective of their religion, if interested to adopt an orphan or abandoned or surrendered child from India, may apply for the same to an authorised foreign adoption agency, or Central Authority or a concerned Government department in their country of habitual residence, as the case may be, in the manner as provided in the adoption regulations framed by the Authority. (4) The authorised foreign adoption agency, or Central Authority, or a concerned Government department, as the case may be, shall prepare the home study report of such prospective adoptive parents and upon finding them eligible, will sponsor their application to Authority for adoption of a child from India, in the manner as provided in the adoption regulations framed by the Authority. (5) On the receipt of the application of such prospective adoptive parents, the Authority shall examine and if it finds the applicants suitable, then, it will refer the application to one of the Specialised Adoption Agencies, where children legally free for adoption are available. (6) The Specialised Adoption Agency will match a child with such prospective adoptive parents and send the child study report and medical report of the child to such parents, who in turn may accept the child and return the child study and medical report duly signed by them to the said agency. (7) On receipt of the acceptance of the child from the prospective adoptive parents, the Specialised Adoption Agency shall file an application [1][before the District Magistrate] for obtaining the adoption order, in the manner as provided in the adoption regulations framed by the Authority. (8) On the receipt of a certified copy of the [2][order passed by the District Magistrate], the specialised adoption agency shall send immediately the same to Authority, State Agency and to the prospective adoptive parents, and obtain a passport for the child. (9) The Authority shall intimate about the adoption to the immigration authorities of India and the receiving country of the child. (10) The prospective adoptive parents shall receive the child in person from the specialised adoption agency as soon as the passport and visa are issued to the child. (11) The authorised foreign adoption agency, or Central Authority, or the concerned Government department, as the case may be, shall ensure the submission of progress reports about the child in the adoptive family and will be responsible for making alternative arrangement in the case of any disruption, in consultation with Authority and concerned Indian diplomatic mission, in the manner as provided in the adoption regulations framed by the Authority. (12) A foreigner or a person of Indian origin or an overseas citizen of India, who has habitual residence in India, if interested to adopt a child from India, may apply to Authority for the same along with a no objection certificate from the diplomatic mission of his country in India, for further necessary actions as provided in the adoption regulations framed by the Authority. 1. Subs. by Act 23 of 2021, s. 19, for “in the court” (w.e.f. 1-9-2022). 2. Subs. by s. 19, ibid., for “court order” (w.e.f. 1-9-2022). 33 ----- **60. Procedure for inter-country relative adoption.—(1) A relative living abroad, who intends to** adopt a child from his relative in India shall obtain an order from the [1][District Magistrate] and apply for no objection certificate from Authority, in the manner as provided in the adoption regulations framed by the Authority. (2) The Authority shall on receipt of the order under sub-section (1) and the application from either the biological parents or from the adoptive parents, issue no objection certificate under intimation to the immigration authority of India and of the receiving country of the child. (3) The adoptive parents shall, after receiving no objection certificate under sub-section (2), receive the child from the biological parents and shall facilitate the contact of the adopted child with his siblings and biological parents from time to time. **61. [2][Procedure for disposal of adoption proceedings].—(1) Before issuing an adoption order, the** 3[District Magistrate] shall satisfy itself that— (a) the adoption is for the welfare of the child; (b) due consideration is given to the wishes of the child having regard to the age and understanding of the child; and (c) that neither the prospective adoptive parents has given or agreed to give nor the specialised adoption agency or the parent or guardian of the child in case of relative adoption has received or agreed to receive any payment or reward in consideration of the adoption, except as permitted under the adoption regulations framed by the Authority towards the adoption fees or service charge or child care corpus. (2) The adoption proceedings shall be held in camera and the case shall be disposed of by the 4[District Magistrate] within a period of two months from the date of filing. **62. Additional procedural requirements and documentation.—(1) The documentation and other** procedural requirements, not expressly provided in this Act with regard to the adoption of an orphan, abandoned and surrendered child by Indian prospective adoptive parents living in India, or by non-resident Indian or overseas citizen of India or person of Indian origin or foreigner prospective adoptive parents, shall be as per the adoption regulations framed by the Authority. (2) The specialised adoption agency shall ensure that the adoption case of prospective adoptive parents is disposed of within four months from the date of receipt of application and the authorised foreign adoption agency, Authority and State Agency shall track the progress of the adoption case and intervene wherever necessary, so as to ensure that the time line is adhered to. **63. Effect of adoption.—A child in respect of whom an adoption order is issued by the [5][District** Magistrate], shall become the child of the adoptive parents, and the adoptive parents shall become the parents of the child as if the child had been born to the adoptive parents, for all purposes, including intestacy, with effect from the date on which the adoption order takes effect, and on and from such date all the ties of the child in the family of his or her birth shall stand severed and replaced by those created by the adoption order in the adoptive family: Provided that any property which has vested in the adopted child immediately before the date on which the adoption order takes effect shall continue to vest in the adopted child subject to the obligations, if any, attached to the ownership of such property including the obligations, if any, to maintain the relatives in the biological family. **64. Reporting of adoption.—Notwithstanding anything contained in any other law for the time being** in force, information regarding all adoption orders issued by the [6][District Magistrate], shall be forwarded to Authority on monthly basis in the manner as provided in the adoption regulations framed by the Authority, so as to enable Authority to maintain the data on adoption. 1. Subs. by Act 23 of 2021, s. 20, for “court” (w.e.f. 1-9-2022). 2. Subs. by s. 21, ibid., for the marginal heading (w.e.f. 1-9-2022). 3. Subs. by s. 21, ibid., for “court” (w.e.f. 1-9-2022). 4. Subs. by s. 21, ibid., for “court” (w.e.f. 1-9-2022). 5. Subs. by s. 22, ibid., for “court” (w.e.f. 1-9-2022). 6. Subs. by s. 23, ibid., for “concerned courts” (w.e.f. 1-9-2022). 34 ----- **65. Specialised Adoption Agencies.—(1) The State Government shall recognise one or more** institutions or organisations in each district as a Specialised Adoption Agency, in such manner as may be provided in the adoption regulations framed by the Authority, for the rehabilitation of orphan, abandoned or surrendered children, through adoption and non-institutional care. (2) The State Agency shall furnish the name, address and contact details of the Specialised Adoption Agencies along with copies of certificate or letter of recognition or renewal to Authority, as soon as the recognition or renewal is granted to such agencies. (3) The State Government shall get every Specialised Adoption Agency inspected at least once in a year and take necessary remedial measures, if required. (4) In case any Specialised Adoption Agency is in default in taking necessary steps on its part as provided in this Act or in the adoption regulations framed by the Authority, for getting an orphan or abandoned or surrendered child legally free for adoption from the Committee or in completing the home study report of the prospective adoptive parents or in obtaining adoption order from the [1] [District Magistrate] within the stipulated time, such Specialised Adoption Agency shall be punishable with a fine which may extend up to fifty thousand rupees and in case of repeated default, the recognition of the Specialised Adoption Agency shall be withdrawn by the State Government. **66. Adoption of children residing in institutions not registered as adoption agencies.—(1) All the** institutions registered under this Act, which may not have been recognised as Specialised Adoption Agencies, shall also ensure that all orphan or abandoned or surrendered children under their care are reported, produced and declared legally free for adoption, by the Committee as per the provisions of section 38. (2) All institutions referred to in sub-section (1) shall develop formal linkages with nearby Specialised Adoption Agency and shall furnish details of the children declared legally free for adoption to that Specialised Adoption Agency along with all relevant records in the manner as may be prescribed, for the placement of such children in adoption. (3) If any such institution contravenes the provisions of sub-section (1) or sub-section (2), it shall be liable to fine of fifty thousand rupees for each instance to be imposed by the registering authority and it may also attract de-recognition in the event of persistent flouting of such provisions. **67. State Adoption Resource Agency.—(1) The State Government shall set up a State Adoption** Resource Agency for dealing with adoptions and related matters in the State under the guidance of Authority. (2) The State Agency, wherever already exists, shall be deemed to be set up under this Act. **68. Central Adoption Resource Authority.—The Central Adoption Resource Agency existing** before the commencement of this Act, shall be deemed to have been constituted as the Central Adoption Resource Authority under this Act to perform the following functions, namely:— (a) to promote in-country adoptions and to facilitate inter-State adoptions in co-ordination with State Agency; (b) to regulate inter-country adoptions; (c) to frame regulations on adoption and related matters from time to time as may be necessary; (d) to carry out the functions of the Central Authority under the Hague Convention on Protection of Children and Cooperation in respect of Inter-country Adoption; (e) any other function as may be prescribed. **69. Steering Committee of Authority.—(1) The Authority shall have a Steering Committee with** following members: 1. Subs. by Act 23 of 2021, s. 24, for “court” (w.e.f. 1-9-2022). 35 ----- (a) Secretary, Ministry of Women and Child Development, Government of India, who shall be the Chairperson—ex officio; (b) Joint Secretary, Ministry of Women and Child Development, Government of India, dealing with Authority—ex officio; (c) Joint Secretary, Ministry of Women and Child Development, Government of India, dealing with Finance—ex officio; (d) one State Adoption Resource Agency and two Specialised Adoption Agencies; (e) one adoptive parent and one adoptee; (f) one advocate or a professor having at least ten years of experience in family law; (g) Member-Secretary, who shall also be Chief Executive Officer of the organisation. (2) Criteria for the selection or nomination of the Members [1][mentioned at clauses (d) to (f) of sub-section (1)], their tenure as well as the terms and conditions of their appointment shall be such as may be prescribed. (3) The Steering Committee shall have the following functions, namely:— (a) to oversee the functioning of Authority and review its working from time to time so that it operates in most effective manner; (b) to approve the annual budget, annual accounts and audit reports as well as the action plan and annual report of Authority; (c) to adopt the recruitment rules, service rules, financial rules of Authority as well as the other regulations for the exercise of the administrative and programmatic powers within the organisation, with the prior approval of the Central Government; (d) any other function that may be vested with it by the Central Government from time to time. (4) The Steering Committee shall meet once in a month in the manner as may be prescribed. (5) The Authority shall function from its headquarter and through its regional offices as may be set up as per its functional necessity. **70. Powers of Authority.—(1) For the efficient performance of its functions, Authority shall have** the following powers, namely:— (a) to issue instructions to any Specialised Adoption Agency or a Children Home or any child care institution housing any orphan, abandoned or surrendered child, any State Agency or any authorised foreign adoption agency and such directions shall be complied by such agencies; (b) recommending to the concerned Government or Authority to take appropriate action against any official or functionary or institution under its administrative control, in case of persistent noncompliance of the instructions issued by it; (c) forwarding any case of persistent non-compliance of its instructions by any official or functionary or institution to a Magistrate having jurisdiction to try the same and the Magistrate to whom any such case is forwarded shall proceed to hear the same as if the case has been forwarded to [him under section 346 of the Code of Criminal Procedure, 1973 (2 of 1974);](javascript:fnOpenLinkPopUp('783','16793');) (d) any other power that may be vested with it by the Central Government. (2) In case of any difference of opinion in an adoption case, including the eligibility of prospective adoptive parents or of a child to be adopted, the decision of Authority shall prevail. **71. Annual Report of Authority.—(1) The Authority shall submit an annual report to the Central** Government in such manner as may be prescribed. 1. Subs. by Act 4 of 2018, s. 3 and the second Schedule, for “mentioned at (d) to (f)” (w.e.f. 5-1-2018). 36 ----- (2) The Central Government shall cause the annual report of Authority to be laid before each House of Parliament. **72. Grants by Central Government.—(1) The Central Government shall, after due appropriation** made by Parliament by law in this behalf, pay to the Authority by way of grants such sums of money as the Central Government may think fit for being utilised for performing the functions of Authority under this Act. (2) The Authority may spend such sums of money as it thinks fit for performing the functions, as prescribed under this Act, and such sums shall be treated as expenditure payable out of the grants referred to in sub-section (1). **73. Accounts and audit of Authority.—(1) The Authority shall maintain proper accounts and other** relevant records and prepare an annual statement of accounts in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India. (2) The accounts of Authority shall be audited by the Comptroller and Auditor-General at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Authority to the Comptroller and Auditor-General. (3) The Comptroller and Auditor-General and any person appointed by him in connection with the audit of the accounts of the Authority under this Act shall, have the same rights and privileges and the Authority in connection with the audit of Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of Authority. (4) The accounts of the Authority as certified by the Comptroller and Auditor-General or any other person appointed by him in this behalf, together with the audit report thereon shall be forwarded annually to the Central Government by the Authority. (5) The Central Government shall cause the audit report to be laid, as soon as may be after it is received, before each House of Parliament. CHAPTER IX OTHER OFFENCES AGAINST CHILDREN **74. Prohibition on disclosure of identity of children.—(1) No report in any newspaper, magazine,** news-sheet or audio-visual media or other forms of communication regarding any inquiry or investigation or judicial procedure, shall disclose the name, address or school or any other particular, which may lead to the identification of a child in conflict with law or a child in need of care and protection or a child victim or witness of a crime, involved in such matter, under any other law for the time being in force, nor shall the picture of any such child be published: Provided that for reasons to be recorded in writing, the Board or Committee, as the case may be, holding the inquiry may permit such disclosure, if in its opinion such disclosure is in the best interest of the child. (2) The Police shall not disclose any record of the child for the purpose of character certificate or otherwise [1][in the pending case or in the case which] has been closed or disposed of. (3) Any person contravening the provisions of sub-section (1) shall be punishable with imprisonment for a term which may extend to six months or fine which may extend to two lakh rupees or both. **75. Punishment for cruelty to child.—Whoever, having the actual charge of, or control over, a** child, assaults, abandons, abuses, exposes or wilfully neglects the child or causes or procures the child to be assaulted, abandoned, abused, exposed or neglected in a manner likely to cause such child unnecessary mental or physical suffering, shall be punishable with imprisonment for a term which may extend to three years or with fine of one lakh rupees or with both: 1. Subs. by Act 23 of 2021, s. 25, for “in cases where the case” (w.e.f. 1-9-2022). 37 ----- Provided that in case it is found that such abandonment of the child by the biological parents is due to circumstances beyond their control, it shall be presumed that such abandonment is not wilful and the penal provisions of this section shall not apply in such cases: Provided further that if such offence is committed by any person employed by or managing an organisation, which is entrusted with the care and protection of the child, he shall be punished with rigorous imprisonment which may extend up to five years, and fine which may extend up to five lakhs rupees: Provided also that on account of the aforesaid cruelty, if the child is physically incapacitated or develops a mental illness or is rendered mentally unfit to perform regular tasks or has risk to life or limb, such person shall be punishable with rigorous imprisonment, not less than three years but which may be extended up to ten years and shall also be liable to fine of five lakhs rupees. **76. Employment of child for begging.—(1) Whoever employs or uses any child for the purpose of** begging or causes any child to beg shall be punishable with imprisonment for a term which may extend to five years and shall also be liable to fine of one lakh rupees: Provided that, if for the purpose of begging, the person amputates or maims the child, he shall be punishable with rigorous imprisonment for a term not less than seven years which may extend up to ten years, and shall also be liable to fine of five lakh rupees. (2) Whoever, having the actual charge of, or control over the child, abets the commission of an offence under sub-section (1), shall be punishable with the same punishment as provided for in subsection (1) and such person shall be considered to be unfit under sub-clause (v) of clause (14) of section 2: Provided that the said child, shall not be considered a child in conflict with law under any circumstances, and shall be removed from the charge or control of such guardian or custodian and produced before the Committee for appropriate rehabilitation. **77. Penalty for giving intoxicating liquor or narcotic drug or psychotropic substance to a** **child.—Whoever gives, or causes to be given, to any child any intoxicating liquor or any narcotic drug or** tobacco products or psychotropic substance, except on the order of a duly qualified medical practitioner, shall be punishable with rigorous imprisonment for a term which may extend to seven years and shall also be liable to a fine which may extend up to one lakh rupees. **78. Using a child for vending, peddling, carrying, supplying or smuggling any intoxicating** **liquor, narcotic drug or psychotropic substance.—Whoever uses a child, for vending, peddling,** carrying, supplying or smuggling any intoxicating liquor, narcotic drug or psychotropic substance, shall be liable for rigorous imprisonment for a term which may extend to seven years and shall also be liable to a fine up to one lakh rupees. **79. Exploitation of a child employee.—Notwithstanding anything contained in any law for the time** being in force, whoever ostensibly engages a child and keeps him in bondage for the purpose of employment or withholds his earnings or uses such earning for his own purposes shall be punishable with rigorous imprisonment for a term which may extend to five years and shall also be liable to fine of one lakh rupees. _Explanation.—For the purposes of this section, the term “employment” shall also include selling_ goods and services, and entertainment in public places for economic gain. **80. Punitive measures for adoption without following prescribed procedures.—If any person or** organisation offers or gives or receives, any orphan, abandoned or surrendered child, for the purpose of adoption without following the provisions or procedures as provided in this Act, such person or organisation shall be punishable with imprisonment of either description for a term which may extend upto three years, or with fine of one lakh rupees, or with both: Provided in case where the offence is committed by a recognised adoption agency, in addition to the above punishment awarded to the persons in-charge of, and responsible for the conduct of the day-to-day 38 ----- affairs of the adoption agency, the registration of such agency under section 41 and its recognition under section 65 shall also be withdrawn for a minimum period of one year. **81. Sale and procurement of children for any purpose.—Any person who sells or buys a child for** any purpose shall be punishable with rigorous imprisonment for a term which may extend to five years and shall also be liable to fine of one lakh rupees: Provided that where such offence is committed by a person having actual charge of the child, including employees of a hospital or nursing home or maternity home, the term of imprisonment shall not be less than three years and may extend up to seven years. **82. Corporal punishment.—(1) Any person in-charge of or employed in a child care institution, who** subjects a child to corporal punishment with the aim of disciplining the child, shall be liable, on the first conviction, to a fine of ten thousand rupees and for every subsequent offence, shall be liable for imprisonment which may extend to three months or fine or with both. (2) If a person employed in an institution referred to in sub-section (1), is convicted of an offence under that sub-section, such person shall also be liable for dismissal from service, and shall also be debarred from working directly with children thereafter. (3) In case, where any corporal punishment is reported in an institution referred to in sub-section (1) and the management of such institution does not cooperate with any inquiry or comply with the orders of the Committee or the Board or court or State Government, the person in-charge of the management of the institution shall be liable for punishment with imprisonment for a term not less than three years and shall also be liable to fine which may extend to one lakh rupees. **83. Use of child by militant groups or other adults.—(1) Any non-State, self-styled militant group** or outfit declared as such by the Central Government, if recruits or uses any child for any purpose, shall be liable for rigorous imprisonment for a term which may extend to seven years and shall also be liable to fine of five lakh rupees. (2) Any adult or an adult group uses children for illegal activities either individually or as a gang shall be liable for rigorous imprisonment for a term which may extend to seven years and shall also be liable to fine of five lakh rupees. **84. Kidnapping and abduction of child.—For the purposes of this Act, the provisions of sections** 359 to 369 of the Indian Penal Code (45 of 1860), shall mutatis mutandis apply to a child or a minor who is under the age of eighteen years and all the provisions shall be construed accordingly. **85. Offences committed on disabled children.—Whoever commits any of the offences referred to in** this Chapter on any child who is disabled as so certified by a medical practitioner, then, such person shall be liable to twice the penalty provided for such offence. _Explanation.—For the purposes of this Act, the term “disability” shall have the same meaning as_ [assigned to it under clause (i) of section 2 of the Persons with Disabilities (Equal Opportunities,](javascript:fnOpenLinkPopUp('811','23205');) Protection of Rights and Full Participation) Act, 1995 (1 of 1996). **1[86 Classification of offences and designated court.— (1) Where an offence under this Act is** punishable with imprisonment for a term of more than seven years, then, such offence shall be cognizable and non-bailable. (2) Where an offence under this Act is punishable with imprisonment for a term of three years and above, but not more than seven years, then, such offence shall be non-cognizable and non-bailable. (3) Where an offence, under this Act is punishable with imprisonment for less than three years or with fine only, then, such offence shall be non-cognizable and bailable. (4) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974) or the Commission for Protection of Child Rights Act, 2005 (4 of 2006) or the Protection of Children from Sexual Offences Act, 2012 (32 of 2012), offences under this Act shall be triable by the Children's Court.] 1. Subs. by Act 23 of 2021, s. 26, for Section 86 (w.e.f. 1-9-2022). 39 ----- **87. Abetment.—Whoever abets any offence under this Act, if the act abetted is committed in** consequence of the abetment, shall be punished with the punishment provided for that offence. 1[Explanation.—For the purposes of this section, the expression “abetment” shall have the same meaning as assigned to it in Section 107 of the Indian Penal Code (45 of 1860).] **88. Alternative punishment.—Where an act or omission constitutes an offence punishable under this** Act and also under any other law for the time being in force, then, notwithstanding anything contained in any such law, the offender found guilty of such offence shall be liable for punishment under such law which provides for punishment which is greater in degree. **89. Offence committed by child under this Chapter.—Any child who commits any offence under** this Chapter shall be considered as a child in conflict with law under this Act. CHAPTER X MISCELLANEOUS **90. Attendance of parent or guardian of child.—The Committee or the Board, as the case may be,** before which a child is brought under any of the provisions of this Act, may, whenever it so thinks fit, require any parent or guardian having the actual charge of the child to be present at any proceeding in respect of that child. **91. Dispensing with attendance of child.—(1) If, at any stage during the course of an inquiry, the** Committee or the Board is satisfied that the attendance of the child is not essential for the purpose of inquiry, the Committee or the Board, as the case may be, shall dispense with the attendance of a child and limit the same for the purpose of recording the statement and subsequently, the inquiry shall continue even in the absence of the child concerned, unless ordered otherwise by the Committee or the Board. (2) Where the attendance of a child is required before the Board or the Committee, such child shall be entitled to travel reimbursement for self and one escort accompanying the child as per actual expenditure incurred, by the Board, or the Committee or the District Child Protection Unit, as the case may be. **92. Placement of a child suffering from disease requiring prolonged medical treatment in an** **approved place.—When a child, who has been brought before the Committee or the Board, is found to** be suffering from a disease requiring prolonged medical treatment or physical or mental complaint that will respond to treatment, the Committee or the Board, as the case may be, may send the child to any place recognised as a fit facility as prescribed for such period as it may think necessary for the required treatment. **93. Transfer of a child who is mentally ill or addicted to alcohol or other drugs.—(1) Where it** appears to the Committee or the Board that any child kept in a special home or an observation home or a Children’s Home or in an institution in pursuance of the provisions of this Act, is a mentally ill person or addicted to alcohol or other drugs which lead to behavioural changes in a person, the Committee or the Board, may order removal of such child to a psychiatric hospital or psychiatric nursing home in accordance with the provisions of the Mental Health Act, 1987 (14 of 1987) or the rules made thereunder. (2) In case the child had been removed to a psychiatric hospital or psychiatric nursing home under sub-section (1), the Committee or the Board may, on the basis of the advice given in the certificate of discharge of the psychiatric hospital or psychiatric nursing home, order to remove such child to an Integrated Rehabilitation Centre for Addicts or similar centres maintained by the State Government for mentally ill persons (including the persons addicted to any narcotic drug or psychotropic substance) and such removal shall be only for the period required for the inpatient treatment of such child. _Explanation.—For the purposes of this sub-section,—_ (a) “Integrated Rehabilitation Centre for Addicts” shall have the meaning assigned to it under the scheme called “Central Sector Scheme of Assistance for Prevention of Alcoholism and Substance (Drugs) Abuse and for Social Defence Services” framed by the Central Government in the Ministry of Social Justice and Empowerment or any other corresponding scheme for the time being in force; 1. Explanation subs. by Act 23 of 2021, s. 27, (w.e.f. 1-9-2022). 40 ----- [(b) “mentally ill person” shall have the same meaning assigned to it in clause (l) of section 2 of](javascript:fnOpenLinkPopUp('1829','70696');) the Mental Health Act, 1987 (14 of 1987); (c) “psychiatric hospital” or “psychiatric nursing home” shall have the same meaning assigned to [it in clause (q) of section 2 of the Mental Health Act, 1987 (14 of 1987).](javascript:fnOpenLinkPopUp('1829','70696');) **94. Presumption and determination of age.—(1) Where, it is obvious to the Committee or the** Board, based on the appearance of the person brought before it under any of the provisions of this Act (other than for the purpose of giving evidence) that the said person is a child, the Committee or the Board shall record such observation stating the age of the child as nearly as may be and proceed with the inquiry under section 14 or section 36, as the case may be, without waiting for further confirmation of the age. (2) In case, the Committee or the Board has reasonable grounds for doubt regarding whether the person brought before it is a child or not, the Committee or the Board, as the case may be, shall undertake the process of age determination, by seeking evidence by obtaining— (i) the date of birth certificate from the school, or the matriculation or equivalent certificate from the concerned examination Board, if available; and in the absence thereof; (ii) the birth certificate given by a corporation or a municipal authority or a panchayat; (iii) and only in the absence of (i) and (ii) above, age shall be determined by an ossification test or any other latest medical age determination test conducted on the orders of the Committee or the Board: Provided such age determination test conducted on the order of the Committee or the Board shall be completed within fifteen days from the date of such order. (3) The age recorded by the Committee or the Board to be the age of person so brought before it shall, for the purpose of this Act, be deemed to be the true age of that person. **95. Transfer of a child to place of residence.—(1) If during the inquiry it is found that a child hails** from a place outside the jurisdiction, the Board or Committee, as the case may be, shall, if satisfied after due inquiry that it is in the best interest of the child and after due consultation with the Committee or the Board of the child’s home district, order the transfer of the child, as soon as possible, to the said Committee or the Board, along with relevant documents and following such procedure as may be prescribed: Provided that such transfer can be made in case of a child in conflict with law, only after the inquiry has been completed and final order passed by the Board: Provided further that in case of inter-State transfer, the child shall be, if convenient, handed over to the Committee or the Board, as the case may be, of the home district of the child, or to the Committee or the Board in the capital city of the home State. (2) Once the decision to transfer is finalised, the Committee or Board, as the case may be, shall give an escort order to the Special Juvenile Police Unit to escort the child, within fifteen days of receiving such order: Provided that a girl child shall be accompanied by a woman police officer: Provided further that where a Special Juvenile Police Unit is not available, the Committee or Board, as the case may be, shall direct the institution where the child is temporarily staying or District Child Protection Unit, to provide an escort to accompany the child during travel. (3) The State Government shall make rules to provide for travelling allowance to the escorting staff for the child, which shall be paid in advance. (4) The Committee or the Board, as the case may be, receiving the transferred child will process for restoration or rehabilitation or social re-integration, as provided in this Act. **96. Transfer of child between Children’s Homes, or special homes or fit facility or fit person in** **different parts of India.—(1) The State Government may at any time, on the recommendation of a** Committee or Board, as the case may be, notwithstanding anything contained in this Act, and keeping the 41 ----- best interest of the child in mind, order the child’s transfer from any Children’s Home or special home or fit facility or fit person, to a home or facility, within the State with prior intimation to the concerned Committee or the Board: Provided that for transfer of a child between similar home or facility or person within the same district, the Committee or Board, as the case may be, of the said district shall be competent to issue such an order. (2) If transfer is being ordered by a State Government to an institution outside the State, this shall be done only in consultation with the concerned State Government. (3) The total period of stay of the child in a Children’s Home or a special home shall not be increased by such transfer. (4) Orders passed under sub-sections (1) and (2) shall be deemed to be operative for the Committee or the Board, as the case may be, of the area to which the child is sent. **97. Release of a child from an institution.—(1) When a child is kept in a Children’s Home or** special home, on a report of a probation officer or social worker or of Government or a voluntary or nongovernmental organisation, as the case may be, the Committee or the Board may consider, the release of such child, either absolutely or on such conditions as it may think fit to impose, permitting the child to live with parents or guardian or under the supervision of any authorised person named in the order, willing to receive and take charge, educate and train the child, for some useful trade or calling or to look after the child for rehabilitation: Provided that if a child who has been released conditionally under this section, or the person under whose supervision the child has been placed, fails to fulfil such conditions, the Board or Committee may, if necessary, cause the child to be taken charge of and to be placed back in the concerned home. (2) If the child has been released on a temporary basis, the time during which the child is not present in the concerned home in pursuance of the permission granted under sub-section (1) shall be deemed to be part of the time for which the child is liable to be kept in the children or special home: Provided that in case of a child in conflict with law fails to fulfil the conditions set by the Board as mentioned in sub-section (1), the time for which he is still liable to be kept in the institution shall be extended by the Board for a period equivalent to the time which lapses due to such failure. **98. Leave of absence to a child placed in an institution.—(1) The Committee or the Board, as the** case may be, may permit leave of absence to any child, to allow him, on special occasions like examination, marriage of relatives, death of kith or kin or accident or serious illness of parent or any emergency of like nature, under supervision, for a period generally not exceeding seven days in one instance, excluding the time taken in journey. (2) The time during which a child is absent from an institution where he is placed, in pursuance of such permission granted under this section, shall be deemed to be part of the time for which he is liable to be kept in the Children’s Home or special home. (3) If a child refuses, or has failed to return to the Children’s Home or special home, as the case may be, on the leave period being exhausted or permission being revoked or forfeited, the Board or Committee may, if necessary, cause him to be taken charge of and to be taken back to the concerned home: Provided that when a child in conflict with law has failed to return to the special home on the leave period being exhausted or on permission being revoked or forfeited, the time for which he is still liable to be kept in the institution shall be extended by the Board for a period equivalent to the time which lapses due to such failure. **99. Reports to be treated as confidential.—(1) All reports related to the child and considered by the** Committee or the Board shall be treated as confidential: Provided that the Committee or the Board, as the case may be, may, if it so thinks fit, communicate the substance thereof to another Committee or Board or to the child or to the child’s parent or guardian, 42 ----- and may give such Committee or the Board or the child or parent or guardian, an opportunity of producing evidence as may be relevant to the matter stated in the report. (2) Notwithstanding anything contained in this Act, the victim shall not be denied access to their case record, orders and relevant papers. **100. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall** lie against the Central Government, or the State Government or any person acting under the directions of the Central Government or State Government, as the case may be, in respect of anything which is done in good faith or intended to be done in pursuance of this Act or of any rules or regulations made thereunder. **101. Appeals.—(1) Subject to the provisions of this Act, any person aggrieved by an order made by** the Committee or the Board under this Act may, within thirty days from the date of such order, prefer an appeal to the Children’s Court, except for decisions by the Committee related to Foster Care and Sponsorship After Care for which the appeal shall lie with the District Magistrate: Provided that the Court of Sessions, or the District Magistrate, as the case may be, may entertain the appeal after the expiry of the said period of thirty days, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal in time and such appeal shall be decided within a period of thirty days. (2) An appeal shall lie against an order of the Board passed after making the preliminary assessment into a heinous offence under section 15 of the Act, before the Court of Sessions and the Court may, while deciding the appeal, take the assistance of experienced psychologists and medical specialists other than those whose assistance has been obtained by the Board in passing the order under the said section. 1[(3) No appeal shall lie from any order of acquittal made by the Board in respect of a child alleged to have committed an offence other than the heinous offence by a child who has completed or is above the age of sixteen years.] (4) No second appeal shall lie from any order of the Court of Session, passed in appeal under this section. (5) Any person aggrieved by an order of the Children’s Court may file an appeal before the High Court in accordance with the procedure specified in the Code of Criminal Procedure, 1973 (2 of 1974). 2[(6) Any person aggrieved by an adoption order passed by the District Magistrate may, within a period of thirty days from the date of such order passed by the District Magistrate, file an appeal before the Divisional Commissioner. (7) Every appeal filed under sub-section (6), shall be decided as expeditiously as possible and an endeavour shall be made to dispose it within a period of four weeks from the date of filing of the appeal: Provided that where there is no Divisional Commissioner, the State Government or Union territory Administration, as the case may be, may, by notification, empower an officer equivalent to the rank of the Divisional Commissioner to decide the appeal.] **102. Revision.—The High Court may, at any time, either on its own motion or on an application** received in this behalf, call for the record of any proceeding in which any Committee or Board or Children’s Court, or Court has passed an order, for the purpose of satisfying itself as to the legality or propriety of any such order and may pass such order in relation thereto as it thinks fit: Provided that the High Court shall not pass an order under this section prejudicial to any person without giving him a reasonable opportunity of being heard. **103. Procedure in inquiries, appeals and revision proceedings.—(1) Save as otherwise expressly** provided by this Act, a Committee or a Board while holding any inquiry under any of the provisions of this Act, shall follow such procedure as may be prescribed and subject thereto, shall follow, as far as may 1. Subs. by Act 23 of 2021, s. 28, for sub-section (3) (w.e.f. 1-9-2022). 2. Ins. by s. 28, ibid. (w.e.f. 1-9-2022). 43 ----- be, the procedure laid down in the Code of Criminal Procedure, 1973 (2 of 1974) for trial of summons cases. (2) Save as otherwise expressly provided by or under this Act, the procedure to be followed in hearing appeals or revision proceedings under this Act shall be, as far as practicable, in accordance with the provisions of the Code of Criminal Procedure, 1973 (2 of 1974). **104. Power of the Committee or the Board to amend its own orders.—(1) Without prejudice to** the provisions for appeal and revision contained in this Act, the Committee or the Board may, on an application received in this behalf, amend any orders passed by itself, as to the institution to which a child is to be sent or as to the person under whose care or supervision a child is to be placed under this Act: Provided that during the course of hearing for amending any such orders, there shall be at least two members of the Board of which one shall be the Principal Magistrate and at least three members of the Committee and all persons concerned, or their authorised representatives, whose views shall be heard by the Committee or the Board, as the case may be, before the said orders are amended. (2) Clerical mistakes in orders passed by the Committee or the Board or errors arising therein from any accidental slip or omission may, at any time, be corrected by the Committee or the Board, as the case may be, either on its own motion or on an application received in this behalf. **105. Juvenile justice fund.—(1) The State Government may create a fund in such name as it thinks** fit for the welfare and rehabilitation of the children dealt with under this Act. (2) There shall be credited to the fund such voluntary donations, contributions or subscriptions as may be made by any individual or organisation. (3) The fund created under sub-section (1) shall be administered by the Department of the State Government implementing this Act in such manner and for such purposes as may be prescribed. **106. State Child Protection Society and District Child Protection Unit.—Every State Government** shall constitute a Child Protection Society for the State and Child Protection Unit for every District, consisting of such officers and other employees as may be appointed by that Government, to take up matters relating to children with a view to ensure the implementation of this Act, including the establishment and maintenance of institutions under this Act, notification of competent authorities in relation to the children and their rehabilitation and co-ordination with various official and non-official agencies concerned and to discharge such other functions as may be prescribed. **107. Child Welfare Police Officer and Special Juvenile Police Unit.—(1) In every police station, at** least one officer, not below the rank of assistant sub-inspector, with aptitude, appropriate training and orientation may be designated as the child welfare police officer to exclusively deal with children either as victims or perpetrators, in co-ordination with the police, voluntary and non-governmental organisations. (2) To co-ordinate all functions of police related to children, the State Government shall constitute Special Juvenile Police Units in each district and city, headed by a police officer not below the rank of a Deputy Superintendent of Police or above and consisting of all police officers designated under subsection (1) and two social workers having experience of working in the field of child welfare, of whom one shall be a woman. (3) All police officers of the Special Juvenile Police Units shall be provided special training, especially at induction as child welfare police officer, to enable them to perform their functions more effectively. (4) Special Juvenile Police Unit also includes Railway police dealing with children. **108. Public awareness on provisions of Act.—The Central Government and every State** Government, shall take necessary measures to ensure that— (a) the provisions of this Act are given wide publicity through media including television, radio and print media at regular intervals so as to make the general public, children and their parents or guardians aware of such provisions; 44 ----- (b) the officers of the Central Government, State Government and other concerned, persons are imparted periodic training on the matters relating to the implementation of the provisions of this Act. **109. Monitoring of implementation of Act.—(1) The National Commission for Protection of Child** [Rights constituted under section 3, or as the case may be, the State Commission for Protection of Child](javascript:fnOpenLinkPopUp('2139','86471');) [Rights constituted under section 17 (herein referred to as the National Commission or the State](javascript:fnOpenLinkPopUp('2139','86488');) Commission, as the case may be), of the Commissions for Protection of Child rights Act, 2005 (4 of 2006), shall, in addition to the functions assigned to them under the said Act, also monitor the implementation of the provisions of this Act, in such manner, as may be prescribed. (2) The National Commission or, as the case may be, the State Commission, shall, while inquiring into any matter relating to any offence under this Act, have the same powers as are vested in the National Commission or the State Commission under the Commissions for Protection of Child Rights Act, 2005 (4 of 2006). (3) The National Commission or, as the case may be, the State Commission, shall also include its [activities under this section, in the annual report referred to in section 16 of the Commissions for](javascript:fnOpenLinkPopUp('2139','86486');) Protection of Child Rights Act, 2005 (4 of 2006). **110. Power to make rules.—(1) The State Government shall, by notification in the Official Gazette,** make rules to carry out the purposes of this Act: Provided that the Central Government may, frame model rules in respect of all or any of the matters with respect to which the State Government is required to make rules and where any such model rules have been framed in respect of any such matter, they shall apply to the State mutatis mutandis until the rules in respect of that matter are made by the State Government and while making any such rules, they conform to such model rules. (2) In particular, and without prejudice to the generality of the foregoing powers, such rules may provide for all or any of the following matters, namely:— (i) manner of inquiry in case of a missing or run away child or whose parents cannot be found under sub-clause (vii) of clause (14) of section 2; (ii) responsibilities of the Child Welfare Officer attached to a Children’s Home under clause (17) of section 2; (iii) qualifications of the members of the Board under sub-section (2) of section 4; (iv) induction training and sensitisation of all members of the Board under sub-section (5) of section 4; (v) term of office of the members of the Board and the manner in which such member may resign under sub-section (6) of section 4; (vi) time of the meetings of the Board and the rules of procedure in regard to the transaction of business at its meeting under sub-section (1) of section 7; (vii) qualifications, experience and payment of fees of an interpreter or translator under clause (d) of sub-section (3) of section 8; (viii) any other function of the Board under clause (n) of sub-section (3) of section 8; (ix) persons through whom any child alleged to be in conflict with law may be produced before the Board and the manner in which such a child may be sent to an observation home or place of safety under sub-section (2) of section 10; (x) manner in which a person apprehended and not released on bail by the officer-in-charge of the police station may be kept in an observation home until such person is brought before a Board under sub-section (2) of section 12; (xi) format for information on pendency in the Board to the Chief Judicial Magistrate or the Chief Metropolitan Magistrate and District Magistrate on quarterly basis under sub-section (3) of section 16; 45 ----- (xii) monitoring procedures and list of monitoring authorities under sub-section (2) of section 20; (xiii) manner in which the relevant records of the child may be destroyed by the Board, police or the court under sub-section (2) of section 24; (xiv) qualifications of the members of the Child Welfare Committee under sub-section (5) of section 27; 1[(xiva) the form of report submitted to the District Magistrate under sub-section (8) of Section 27;] (xv) rules and procedures with regard to transaction of business at the meetings of the Child Welfare Committee under sub-section (1) of section 28; (xvi) process of restoration of abandoned or lost children to their families under clause (x) of section 30; (xvii) manner of submitting the report to the Committee and the manner of sending and entrusting the child to Children’s Home or fit facility or fit person under sub-section (2) of section 31; (xviii) manner of holding an inquiry by the Child Welfare Committee under sub-section (1) of section 36; (xix) manner in which a child may be sent to a Specialised Adoption Agency if the child is below six years of age, Children’s Home or to a fit facility or person or foster family, till suitable means of rehabilitation are found for the child including manner in which situation of the child placed in a Children’s Home or with a fit facility or person or foster family, may be reviewed by the Committee under sub-section (3) of section 36; (xx) manner in which a quarterly report may be submitted by the Committee to the District Magistrate for review of pendency of cases under sub-section (4) of section 36; (xxi) any other order related to any other function of the Committee under clause (iii) of sub-section (2) of section 37; (xxii) information to be given every month by the Committee to State Agency and Authority regarding number of children declared legally free for adoption and number of cases pending under sub-section (5) of section 38; 1[(xxiia) the form of quarterly report regarding restored, dead and runaway children under sub-section (4) of Section 40;] (xxiii) manner in which all institutions under this Act shall be registered under sub-section (1) of section 41; (xxiv) procedure for cancelling or withholding registration of an institution that fails to provide rehabilitation and re-integration services under sub-section (7) of section 41; (xxv) manner in which information shall be sent every month by the open shelter to the District Child Protection Unit and Committee under sub-section (3) of section 43; (xxvi) procedure for placing children in foster care including group foster care under sub-section (1) of section 44; (xxvii) procedure for inspection of children in foster care under sub-section (4) of section 44; (xxviii) manner in which foster family shall provide education, health and nutrition to the child under sub-section (6) of section 44; (xxix) procedure and criteria in which foster care services shall be provided to children under sub section (7) of section 44; 1. Ins. by Act 23 of 2021, s. 29 (w.e.f. 1-9-2022). 46 ----- (xxx) format for inspection of foster families by the Committee to check the well being of children under sub-section (8) of section 44; (xxxi) purpose of undertaking various programmes of sponsorship of children, such as individual to individual sponsorship, group sponsorship or community sponsorship under sub-section (1) of section 45; (xxxii) duration of sponsorship under sub-section (3) of section 45; (xxxiii) manner of providing financial support to any child leaving institutional care on completing eighteen years of age under section 46; (xxxiv) management and monitoring of observation homes, including the standards and various types of services to be provided by them for rehabilitation and social integration of a child alleged to be in conflict with law and the circumstances under which, and the manner in which, the registration of an observation home may be granted or withdrawn under sub-section (3) of section 47; (xxxv) management and monitoring of special homes including the standards and various types of services to be provided to them under sub-section (2) and sub-section (3) of section 48; (xxxvi) monitoring and management of children’s homes including the standards and the nature of services to be provided by them, based on individual care plans for each child under sub-section (3) of section 50; (xxxvii) manner in which a Board or the Committee shall recognise, a facility being run by a Governmental organisation or a voluntary or non-governmental organisation registered under any law for the time being in force, fit to temporarily take the responsibility of a child for a specific purpose after due inquiry regarding the suitability of the facility and the organisation to take care of the child under sub-section (1) of section 51; (xxxviii) procedure of verification of credentials, for recognising any person fit to temporarily receive a child for care, protection and treatment of such child for a specified period by the Board or the Committee under sub-section (1) of section 52; (xxxix) manner in which services shall be provided by an institution under this Act for rehabilitation and re-integration of children and standards for basic requirements such as food, shelter, clothing and medical attention under sub-section (1) of section 53; (xl) manner in which Management Committee shall be set up by each institution for management of the institution and monitoring of the progress of every child under sub-section (2) of section 53; (xli) activities that may be taken up by children’s committees under sub-section (3) of section 53; (xlii) appointment of inspection committees for all institutions registered or recognised fit, for the State and district under sub-section (1) of section 54; (xliii) manner in which Central Government or State Government may independently evaluate the functioning of the Board, Committee, special juvenile police units, registered institutions, or recognised fit facilities and persons, including the period and through persons or institutions under sub-section (1) of section 55; (xliv) manner in which institutions shall furnish details of children declared legally free for adoption to the Specialised Adoption Agency under sub-section (2) of section 66; (xlv) any other function of the Authority under clause (e) of section 68; (xlvi) criteria for the selection or nomination of the Members of the Steering Committee of the Authority and their tenure as well as the terms and conditions of their appointment under sub-section (2) of section 69; (xlvii) manner in which Steering Committee of the Authority shall meet under sub-section (4) of section 69; 47 ----- (xlviii) manner in which the Authority shall submit an annual report to the Central Government under sub-section (1) of section 71; (xlix) functions of the Authority under sub-section (2) of section 72; (l) manner in which the Authority shall maintain proper accounts and other relevant records and prepare an annual statement of accounts under sub-section (1) of section 73; (li) period that the Committee or Board may think necessary for the treatment of children who are found to be suffering from a disease requiring prolonged medical treatment or physical or mental complaint that will respond to treatment to a fit facility under section 92; (lii) procedure for transfer of child under sub-section (1) of section 95; (liii) provision for travelling allowance to the escorting staff for the child under sub-section (3) of section 95; (liv) procedure to be followed by the Committee or a Board while holding any inquiry, appeal or revision under sub-section (1) of section 103; (lv) manner in which juvenile justice fund shall be administered under sub-section (3) of section 105; (lvi) functioning of the Child Protection Society for the State and Child Protection Units for every district under section 106; (lvii) to enable the National Commission, or as the case may be, the State Commission to monitor implementation of the provisions of this Act under sub-section (1) of section 109; (lviii) any other matter which is required to be, or may be, prescribed. (3) Every rule and every regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. (4) Every rule made by the State Government under this Act shall be laid, as soon as may be after it is made, before the State Legislature. **111. Repeal and savings.—(1) The Juvenile Justice (Care and Protection of Children) Act, 2000** (56 of 2000) is hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken under the said Acts shall be deemed to have been done or taken under the corresponding provisions of this Act. **112. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order, not inconsistent with the provisions of this Act, remove the difficulty: Provided that no such order shall be made after the expiry of the period of two years from the commencement of this Act. (2) However, order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. 48 -----

21-Mar-2016

11

The Bureau of Indian Standards Act, 2016.

https://www.indiacode.nic.in/bitstream/123456789/2157/3/A2016-11.pdf

central

# THE BUREAU OF INDIAN STANDARDS ACT, 2016 ______ ARRANGEMENT OF SECTIONS ______ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II BUREAU OF INDIAN STANDARDS 3. Establishment of Bureau and Constitution of Governing Council. 4. Executive Committee of Bureau. 5. Advisory Committees of Bureau. 6. Vacancies, etc., not to invalidate act or proceedings. 7. Director General. 8. Officers and employees of Bureau. 9. Powers and functions of Bureau. CHAPTER III INDIAN STANDARDS, CERTIFICATION AND LICENCE 10. Indian Standards. 11. Prohibition to publish, reproduce or record without authorisation by Bureau. 12. Conformity Assessment scheme. 13. Grant of licence or certificate of conformity. 14. Certification of Standard Mark of jewellers and sellers of certain specified goods or articles. 15. Prohibition to import, sell, exhibit, etc. 16. Central Government to direct compulsory use of Standard Mark. 17. Prohibition to manufacture, sell, etc., certain goods without Standard Mark. 18. Obligations of licence holder, seller, etc. CHAPTER IV FINANCE, ACCOUNTS AND AUDIT 19. Financial Management of Bureau of Indian Standards. 20. Fund of Bureau. 21. Borrowing powers of Bureau. 22. Budget. ----- 23. Annual report. 24. Accounts and audit. CHAPTER V MISCELLANEOUS 25. Power of Central Government to issue directions. 26. Restriction on use of name of Bureau and Indian Standard. 27. Appointment and powers of certification officers. 28. Power to search and seizure. 29. Penalty for contravention. 30. Offences by companies. 31. Compensation for non-conforming goods. 32. Cognizance of offence by courts. 33. Compounding of offence. 34. Appeal. 35. Members, officers and employees of Bureau to be public servants. 36. Protection of action taken in good faith. 37. Authentication of orders and other instruments of Bureau. 38. Power to make rules. 39. Power to make regulations. 40. Rules and regulations to be laid before Parliament. 41. Act not to affect operation of certain Acts. 42. Power to remove difficulties. 43. Repeal and savings. ----- # THE BUREAU OF INDIAN STANDARDS ACT, 2016 ACT NO. 11 OF 2016 [21st March, 2016.] # An Act to provide for the establishment of a national standards body for the harmonious development of the activities of standardisation, conformity assessment and quality assurance of goods, articles, processes, systems and services and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Sixty-seventh Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Bureau of Indian** Standards Act, 2016. (2) It extends to the whole of India. (3) It shall come into force on such [1]date as the Central Government may, by notification in the Official Gazette, appoint. **2. Definitions.— In this Act, unless the context otherwise requires,—** (1) “article” means any substance, artificial or natural, or partly artificial or partly natural, whether raw or partly or wholly processed or manufactured or handmade within India or imported into India; (2) “assaying and hallmarking centre” means a testing and marking centre recognised by the Bureau to determine the purity of precious metal articles and to apply hallmark on the precious metal articles in a manner as may be determined by regulations; (3) “Bureau” means the Bureau of Indian Standards established under section 3; (4) “certification officer” means a certification officer appointed under sub-section (1) of section 27; (5) “certified body” means a holder of certificate of conformity or licence under sub-section (2) of section 13 in relation to any goods, article, process, system or service which conforms to a standard; (6) “certified jeweller” means a jeweller who has been granted a certificate by the Bureau to get manufactured for sale or to sell any precious metal article after getting the same hallmarked in a manner as may be determined by regulations; (7) “conformity assessment” means demonstration that requirements as may be specified relating to an article, process, system, service, person or body are fulfilled; (8) “conformity assessment scheme” means a scheme relating to such goods, article, process, system or service as may be notified by the Bureau under section 12; (9) “consumer” means a person as defined in the Consumer Protection Act, 1986 (68 of 1986); (10) “covering” includes any stopper, cask, bottle, vessel, box, crate, cover, capsule, case, frame, wrapper, bag, sack, pouch or other container; (11) “Director General” means the Director General appointed under sub-section (1) of section 7; 1. 12[th] October 2017, vide Notification No. S.O.3295(E) dated 12[th] October 2017, see Gazette of India, Extraordinary, Part II, Section 3 (ii). ----- (12) “Executive Committee” means the Executive Committee constituted under sub-section (1) of section 4; (13) “fund” means the fund constituted under section 20; (14) “goods” includes all kinds of movable properties under the Sale of Goods Act, 1930 (3 of 1930), other than actionable claims, money, stocks and shares; (15) “Governing Council” means a Governing Council constituted under sub-section (3) of section 3; (16) “Hallmark” means in relation to precious metal article, the Standard Mark, which indicates the proportionate content of precious metal in that article as per the relevant Indian Standard; (17) “Indian Standard” means the standard including any tentative or provisional standard established and published by the Bureau, in relation to any goods, article, process, system or service, indicative of the quality and specification of such goods, article, process, system or service and includes— (i) any standard adopted by the Bureau under sub-section (2) of section 10; and (ii) any standard established and published, or recognised, by the Bureau of Indian Standards established under the Bureau of Indian Standard Act, 1986 (63 of 1986), which was in force immediately before the commencement of this Act; (18) “Indian Standards Institution” means the Indian Standards Institution registered under the Societies Registration Act, 1860 (21 of 1860); (19) “jeweller” means a person engaged in the business to get manufactured precious metal article for sale or to sell precious metal articles; (20) “licence” means a licence granted under section 13 to use a specified Standard Mark in relation to any goods, article, process, system or service, which conforms to a standard; (21) “manufacturer” means a person responsible for designing and manufacturing any goods or article; (22) “mark” includes a device, brand, heading, label, ticket, pictorial representation, name, signature, word, letter or numeral or any combination thereof; (23) “member” means a member of the Governing Council, Executive Committee or any of the Advisory Committee; (24) “notification” means a notification published in the Official Gazette and the expression “notify” or “notified” shall be construed accordingly; (25) “person” means a manufacturer, an importer, a distributor, retailer, seller or lessor of goods or article or provider of service or any other person who uses or applies his name or trade mark or any other distinctive mark on to goods or article or while providing a service, for any consideration or gives goods or article or provides service as prize or gift for commercial purposes including their representative and any person who is engaged in such activities, where the manufacturer, importer, distributor, retailer, seller, lessor or provider of service cannot be identified; (26) “precious metal” means gold, silver, platinum and palladium; (27) “precious metal article” means any article made entirely or in part from precious metals or their alloys; (28) “prescribed” means prescribed by rules made under this Act; (29) “process” means a set of inter-related or interacting activities, which transforms inputs into outputs; ----- (30) “recognised testing and marking centre” means a testing and marking centre recognised by the Bureau under sub-section (5) of section 14; (31) “recognised testing laboratory” means a testing laboratory recognised by the Bureau under sub-section (4) of section 13; (32) “registering authority” means any authority competent under any law for the time being in force to register any company, firm or other body of persons, or any trade mark or design, or to grant a patent; (33) “regulations” means regulations made by the Bureau under this Act; (34) “sale” means to sell, distribute, hire, lease or exchange of goods, article, process, system or service for any consideration or for commercial purposes; (35) “seller” means a person who is engaged in the sale of any goods, article, process, system or service; (36) “service” means the result generated by activities at the interface between an organisation and a customer and by organisation’s internal activities, to meet customer requirements; (37) “specification” means a description of goods, article, process, system or service as far as practicable by reference to its nature, quality, strength, purity, composition, quantity, dimensions, weight, grade, durability, origin, age, material, mode of manufacture or processing, consistency and reliability of service delivery or other characteristics to distinguish it from any other goods, article, process, system or service; (38) “specified” means specified by the regulations; (39) “standards” means documented agreements containing technical specifications or other precise criteria to be used consistently as rules, guidelines, or definitions of characteristics, to ensure that goods, articles, processes, systems and services are fit for their purpose; (40) “Standard Mark” means the mark specified by the Bureau, and includes Hallmark, to represent conformity of goods, article, process, system or service to a particular Indian Standard or conformity to a standard, the mark of which has been established, adopted or recognised by the Bureau and is marked on the article or goods as a Standard Mark or on its covering or label attached to such goods or article so marked; (41) “system” means a set of inter-related or interacting elements; (42) “testing laboratory” means a body set up for the purpose of testing of goods or article against a set of requirements and report its findings; (43) “trade mark” means a mark used or proposed to be used in relation to goods or article or process or system or service for the purpose of indicating, or so as to indicate, a connection in the course of trade of goods, article, process, system or service, as the case may be, and some person having the right, either as proprietor or as registered user, to use the mark, whether with or without any indication of the identity of that person. CHAPTER II BUREAU OF INDIAN STANDARDS **3. Establishment of Bureau and Constitution of Governing Council.—(1) With effect from such** date as the Central Government may, by notification in the Official Gazette, appoint in this behalf, there shall be established a national body for the purposes of this Act, a Bureau, to be called the Bureau of Indian Standards. (2) The Bureau shall be a body corporate by the name aforesaid, having perpetual succession and a common seal, with power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to contract and shall by the said name sue and be sued. ----- (3) The members of the Governing Council shall constitute the Bureau and general superintendence, direction and management of the affairs of the Bureau shall vest in the Governing Council, which shall consist of the following members, namely:— (a) the Minister in-charge of the Ministry or Department of the Central Government having administrative control of the Bureau who shall be ex officio President of the Bureau; (b) the Minister of State or a Deputy Minister, if any, in the Ministry or Department of the Central Government having administrative control of the Bureau who shall be _ex officio_ Vice-President of the Bureau, and where there is no such Minister of State or Deputy Minister, such person as may be nominated by the Central Government to be the Vice-President of the Bureau; (c) the Secretary to the Government of India of the Ministry or Department of the Central Government having administrative control of the Bureau, ex officio; (d) the Director General of the Bureau, ex officio; (e) such number of other persons to represent the Government, industry, scientific and research institutions, consumers and other interests, as may be prescribed, to be appointed by the Central Government. (4) The term of office of the members referred to in clause (e) of sub-section (3) and the manner of filling vacancies among, and the procedure to be followed in the discharge of their functions by the members, shall be such as may be prescribed: Provided that a member, other than an _ex officio member of the Bureau of Indian Standards_ constituted under the Bureau of Indian Standards Act, 1986 (63 of 1986), shall, after the commencement of this Act, continue to hold such office as member till the completion of his term (5) The Governing Council may associate with itself, in such manner and for such purposes as may be prescribed, any person whose assistance or advice it may desire in complying with any of the provisions of this Act and a person so associated shall have the right to take part in the discussions of the Governing Council relevant to the purposes for which he has been associated but shall not have the right to vote. (6) The Governing Council may, by general or special order in writing, delegate to any member, the Director General or any other person subject to such conditions, if any, as may be specified in the order, such of its powers and functions under this Act except the powers under section 37 as it may deem necessary. **4. Executive Committee of Bureau.—(1) The Governing Council may, with the prior approval of** the Central Government, by notification in the Official Gazette, constitute an Executive Committee which shall consist of the following members, namely: — (a) Director General of the Bureau, who shall be its ex officio Chairman; and (b) such number of members, as may be prescribed. (2) The Executive Committee constituted under sub-section (1) shall perform, exercise and discharge such functions, powers and duties of the Bureau, as may be delegated to it by the Governing Council. **5. Advisory Committees of Bureau.—(1) Subject to any regulations made in this behalf, the** Governing Council may, from time to time and as and when it is considered necessary, constitute the following Advisory Committees for the efficient discharge of the functions of the Bureau, namely: — (a) Finance Advisory Committee; (b) Conformity Assessment Advisory Committee; (c) Standards Advisory Committee; (d) Testing and Calibration Advisory Committee; and (e) such number of other committees as may be specified by regulations. ----- (2) Each Advisory Committee shall consist of a Chairman and such other members as may be specified by regulations. **6. Vacancies, etc., not to invalidate act or proceedings.—No act or proceedings of the Governing** Council, under section 3 shall be invalid merely by reason of— (a) any vacancy in, or any defect in the constitution of the Governing Council; or (b) any defect in the appointment of a person acting as a member of the Governing Council; or (c) any irregularity in the procedure of the Governing Council not affecting the merits of the case **7. Director General.—(1) The Central Government shall appoint a Director General of the Bureau.** (2) The terms and conditions of service of the Director General of the Bureau shall be such as may be prescribed. (3) Subject to the general superintendence and control of the Governing Council, the Director General of the Bureau shall be the Chief Executive Authority of the Bureau. (4) The Director General of the Bureau shall exercise and discharge such of the powers and duties of the Bureau as may be specified by regulations. (5) The Director General may, by general or special order in writing, delegate to any officer of the Bureau subject to such conditions, if any, as may be specified in the order, such of his powers and functions as are assigned to him under the regulations or are delegated to him by the Governing Council, as he may deem necessary. **8. Officers and employees of Bureau.—(1) The Bureau may appoint such other officers and** employees as it considers necessary for the efficient discharge of its functions under this Act. (2) The terms and conditions of service of officers and employees of the Bureau appointed under sub-section (1) shall be such as may be specified by regulations. **9. Powers and functions of Bureau.—(1) The powers and duties as may be assigned to the Bureau** under this Act shall be exercised and performed by the Governing Council and, in particular, such powers may include the power to— (a) establish branches, offices or agencies in India or outside; (b) recognise, on reciprocal basis or otherwise, with the prior approval of the Central Government, the mark of any international body or institution, on such terms and conditions as may be mutually agreed upon by the Bureau in relation to any goods, article, process, system or service at par with the Standard Mark for such goods, article, process, system or service; (c) seek recognition of the Bureau and of the Indian Standards outside India on such terms and conditions as may be mutually agreed upon by the Bureau with any corresponding institution or organisation in any country or with any international organisation; (d) enter into and search places, premises or vehicles, and inspect and seize goods or articles and documents to enforce the provisions of this Act; (e) provide services to manufacturers and consumers of goods or articles or processes for compliances of standards on such terms and conditions as may be mutually agreed upon; (f) provide training services in relation to quality management, standards, conformity assessment, laboratory testing and calibration, and any other related areas; (g) publish Indian Standards and sell such publications and publications of international bodies; (h) authorise agencies in India or outside India for carrying out any or all activities of the Bureau and such other purposes as may be necessary on such terms and conditions as it deems fit; (i) obtain membership in regional, international and foreign bodies having objects similar to that of the Bureau and participate in international standards setting process; ----- (j) undertake testing of samples for purposes other than for conformity assessment; and (k) undertake activities relating to legal metrology. (2) The Bureau shall take all necessary steps for promotion, monitoring and management of the quality of goods, articles, processes, systems and services, as may be necessary, to protect the interests of consumers and various other stake holders which may include the following namely: — (a) carrying out market surveillance or survey of any goods, article, process, system or service to monitor their quality and publish findings of such surveillance or surveys; (b) promotion of quality in connection with any goods, article, process, system or service by creating awareness among the consumers and the industry and educate them about quality and standards in connection with any goods, article, process, system and service; (c) promotion of safety in connection with any goods, article, process, system or service; (d) identification of any goods, articles, process, system or service for which there is a need to establish a new Indian Standard, or to revise an existing Indian Standard; (e) promoting the use of Indian Standards; (f) recognising or accrediting any institution in India or outside which is engaged in conformity certification and inspection of any goods, article, process, system or service or of testing laboratories; (g) coordination and promotion of activities of any association of manufacturers or consumers or any other body in relation to improvement in the quality or in the implementation of any quality assurance activities in relation to any goods, article, process, system or service; and (h) such other functions as may be necessary for promotion, monitoring and management of the quality of goods, articles, processes, systems and services and to protect the interests of consumers and other stake holders. (3) The Bureau shall perform its functions under this section through the Governing Council in accordance with the direction and subject to such rules as may be made by the Central Government. CHAPTER III INDIAN STANDARDS, CERTIFICATION AND LICENCE **10. Indian Standards. —(1) The standards established by the Bureau shall be the Indian Standards.** (2) The Bureau may— (a) establish, publish, review and promote the Indian Standard, in relation to any goods, article, process, system or service in such manner as may be prescribed; (b) adopt as Indian Standard, any standard, established by any other Institution in India or elsewhere, in relation to any goods, article, process, system or service in such manner as may be prescribed; (c) recognise or accredit any institution in India or outside which is engaged in standardisation; (d) undertake, support and promote such research as may be necessary for formulation of Indian Standards. (3) The Bureau, for the purpose of this section, shall constitute, as and when considered necessary, such number of technical committees of experts for the formulation of standards in respect of goods, articles, processes, systems or services, as may be necessary. (4) The Indian Standard shall be notified and remain valid till withdrawn by the Bureau. (5) Notwithstanding anything contained in any other law, the copyright in an Indian Standard or any other publication of the Bureau shall vest in the Bureau. ----- **11. Prohibition to publish, reproduce or record without authorisation by Bureau.—(1) No** individual shall, without the authorisation of the Bureau, in any manner or form, publish, reproduce or record any Indian Standard or part thereof, or any other publication of the Bureau. (2) No person shall issue a document that creates, or may create the impression that it is or contains an Indian Standard, as contemplated in this Act: Provided that nothing in this sub-section shall prevent any individual from making a copy of Indian Standard for his personal use. **12. Conformity Assessment scheme.—(1) The Bureau may notify a specific or different conformity** assessment scheme for any goods, article, process, system or service or for a group of goods, articles, processes, systems or services, as the case may be, with respect to any Indian Standard or any other standard in a manner as may be specified by regulations. (2) The Bureau may establish a Standard Mark in relation to each of its conformity assessment schemes, which shall be of such design and contain such particulars as may be specified by regulations to represent a particular standard. **13. Grant of licence or certificate of conformity.—(1) A person may apply for grant of licence or** certificate of conformity, as the case may be, if the goods, article, process, system or service conforms to an Indian Standard. (2) Where any goods, article, process, system or service conforms to a standard, the Director General may, by an order, grant— (a) a certificate of conformity in a manner as may be specified by regulations; or (b) a licence to use or apply a Standard Mark in a manner as may be specified by regulations, subject to such conditions and on payment of such fees, including late fee or fine, before or during the operation of the certificate of conformity or licence, and as determined by regulations. (3) While granting a certificate of conformity or licence to use a Standard Mark, the Bureau may, by order, specify the marking and labelling requirements that shall necessarily be affixed as may be specified from time to time. (4) The Bureau may establish, maintain or recognise testing laboratories for the purposes of conformity assessment and quality assurance and for such other purposes as may be required for carrying out its functions. **14. Certification of Standard Mark of jewellers and sellers of certain specified goods or** **articles.—(1) The Central Government, after consulting the Bureau, may notify precious metal articles or** other goods or articles as it may consider necessary, to be marked with a Hallmark or Standard Mark, as the case may be, in a manner as specified in sub-section (2). (2) The goods or articles notified in sub-section (1) may be sold through retail outlets certified by the Bureau after such goods or articles have been assessed for conformity to the relevant standard by testing and marking centre, recognised by the Bureau and marked with Hallmark or Standard Mark, as the case may be, as specified by regulations. (3) The Central Government may, after consulting the Bureau, by an order published in the Official Gazette, make it compulsory for the sellers of goods or article notified under sub-section (1) to be sold only through certified sales outlets fulfilling such conditions as may be determined by regulations. (4) The Bureau may, by an order, grant, renew, suspend or cancel certification of Standard Mark or Hallmark of a jeweller or any other seller for sale of goods or articles notified under sub-section (1) in such manner as may be determined by regulations. (5) The Bureau may establish, maintain and recognise testing and marking centres, including assaying and hallmarking centres, for conformity assessment and application of Standard Mark, including Hallmark, on goods or articles notified under sub-section (1), in a manner as may be specified by regulations. ----- (6) No testing and marking centre or assaying and hallmarking centre, other than the recognised by the Bureau, shall with respect to goods or articles notified under sub-section (1), use, affix, emboss, engrave, print or apply in any manner the Standard Mark, including the Hallmark, or colourable imitation thereof, on any goods or article; and make any claim in relation to the use and application of a Standard Mark, including the Hallmark, through advertisements, sales promotion leaflets, price lists or the like. (7) Every recognised testing and marking centre, including assaying and hallmarking centre, shall use or apply Standard Mark on good or articles notified under sub-section (1), including Hallmark on precious metal articles, after accurately determining the conformity of the same in a manner as may be specified. (8) No recognised testing and marking centre, including assaying and hallmarking centre, shall, notwithstanding that it has been recognised under sub-section (5), use or apply in relation to any goods or article notified under sub-section (1) a Standard Mark, including Hallmark, or any colourable imitation thereof, unless such goods or article conforms to the relevant standard. **15. Prohibition to import, sell, exhibit, etc.—(1) No person shall import, distribute, sell, store or** exhibit for sale, any goods or article under sub-section (1) of section 14, except under certification from the Bureau. (2) No person, other than that certified by the Bureau, shall sell or display or offer to sell goods or articles that are notified under sub-section (3) of section 14 and marked with the Standard Mark, including Hallmark and claim in relation to the Standard Mark, including Hallmark, through advertisements, sales promotion leaflets, price lists or the like. (3) No certified jeweller or seller shall sell or display or offer to sell any notified goods or articles, notwithstanding that he has been granted certification, with the Standard Mark, including Hallmark, or any colourable imitation thereof, unless such goods or article is marked with a Standard Mark or Hallmark, in a manner as may be specified by regulations, and unless such goods or article conforms to the relevant standard. **16. Central Government to direct compulsory use of Standard Mark.—(1) If the Central** Government is of the opinion that it is necessary or expedient so to do in the public interest or for the protection of human, animal or plant health, safety of the environment, or prevention of unfair trade practices, or national security, it may, after consulting the Bureau, by an order published in the Official Gazette, notify— (a) goods or article of any scheduled industry, process, system or service; or (b) essential requirements to which such goods, article, process, system or service, which shall conform to a standard and direct the use of the Standard Mark under a licence or certificate of conformity as compulsory on such goods, article, process, system or service. _Explanation.—For the purpose of this sub-section,—_ (i) the expression “scheduled industry” shall have the meaning assigned to it in the Industries (Development and Regulation) Act, 1951 (65 of 1951); (ii) it is hereby clarified that essential requirements are requirements, expressed in terms of the parameters to be achieved or requirements of standard in technical terms that effectively ensure that any goods, article, process, system or service meet the objective of health, safety and environment. (2) The Central Government may, by an order authorise Bureau or any other agency having necessary accreditation or recognition and valid approval to certify and enforce conformity to the relevant standard or prescribed essential requirements under sub-section (1). **17. Prohibition to manufacture, sell, etc., certain goods without Standard Mark.—(1) No person** shall manufacture, import, distribute, sell, hire, lease, store or exhibit for sale any such goods, article, process, system or service under sub-section (1) of section 16— (a) without a Standard Mark, except under a valid licence; or ----- (b) notwithstanding that he has been granted a license, apply a Standard Mark, unless such goods, article, process, system or service conforms to the relevant standard or prescribed essential requirements. (2) No person shall make a public claim, through advertisements, sales promotion leaflets, price lists or the like, that his goods, article, process, system or service conforms to an Indian standard or make such a declaration on the goods or article, without having a valid certificate of conformity or licence from the Bureau or any other authority approved by the Central Government under sub-section (2) of section 16. (3) No person shall use or apply or purport to use or apply in any manner, in the manufacture, distribution, sale, hire, lease or exhibit or offer for sale of any goods, article, process, system or service, or in the title of any patent or in any trade mark or design, a Standard Mark or any colourable imitation thereof, except under a valid licence from the Bureau. **18. Obligations of licence holder, seller, etc.—(1) The licence holder shall, at all times, remain** responsible for conformance of the goods, articles, processes, systems or services carrying the Standard Mark. (2) It shall be the responsibility of the distributor or the seller, as the case may be, to ensure that goods, articles, processes, systems or services carrying the Standard Mark are purchased from certified body or licence holder. (3) It shall be the responsibility of the seller before the goods or article is sold or offered to be sold or exhibited or offered for sale to ensure that— (a) goods, articles, processes, systems or services carrying the Standard Mark bear the requisite labels and marking details, as specified by the Bureau from time to time; (b) the marking and labelling requirements on the product or covering is displayed in a manner that has been specified by the Bureau. (4) Every certified body or licence holder shall supply to the Bureau with such information and with such samples of any material or substance used in relation to any goods, article, process, system or service, as the case may be, as the Bureau may require for monitoring its quality and for the recovery of the fee as may be prescribed in the certificate of conformity or the licence. (5) (a) The Bureau may make such inspection and take such samples of any material or substance as may be necessary to see whether any goods, article, process, system or service, in relation to which a Standard Mark has been used, conforms to the requirements of the relevant standard or whether the Standard Mark has been properly used in relation to any goods, article, process, system or service with or without a licence. (b) The Bureau may publicise the results of its findings and the directions given in pursuance thereof. (6) If the Bureau is satisfied under the provisions of sub-sections (4) and (5) that the goods, articles, processes, systems or services in relation to which a Standard Mark has been used do not conform to the requirements of the relevant standard, the Bureau may direct the certified body or licence holder or his representative to stop the supply and sale of non-conforming goods or articles and recall the nonconforming goods or articles that have already been supplied or offered for sale and bear such mark from the market or any such place from where they are likely to be offered for sale or prohibit to provide the service. (7) Where a certified body or licence holder or his representative has sold goods, articles, processes, system or services, which bear a Standard Mark or any colourable imitation thereof, which do not conform to the relevant standard, the Bureau shall direct the certified body or licence holder or his representative to— (a) repair or replace or reprocess the standard marked goods, article, process, system or service in a manner as may be specified; or (b) pay compensation to the consumer as may be prescribed by the Bureau; or ----- (c) be liable for the injury caused by non-conforming goods or article, which bears a Standard Mark, as per the provisions of section 31. CHAPTER IV FINANCE, ACCOUNTS AND AUDIT **19. Financial Management of Bureau of Indian Standards.—The Central Government may, after** due appropriation made by Parliament by law in this behalf, make to the Bureau grants and loans of such sums of money as the Government may consider necessary. **20. Fund of Bureau.—(1) There shall be constituted a fund to be called the Bureau of Indian** Standards fund and there shall be credited thereto— (a) any grants and loans made to the Bureau by the Central Government; (b) all fees and charges received by the Bureau under this Act; (c) all fines received by the Bureau; (d) all sums received by the Bureau from such other sources as may be decided upon by the Central Government. (2) The fund shall be applied for meeting— (a) the salary, allowances and other remuneration of the members, Director General, officers and other employees of the Bureau; (b) expenses of the Bureau in the discharge of its functions under the Act; and (c) expenses on objects and for purposes authorised by this Act: Provided that the fines received in clause (c) of sub-section (1) shall be used for consumer awareness, consumer protection and promotion of quality of goods, articles, processes, system or services in the country. **21. Borrowing powers of Bureau.—** (1) The Bureau may, with the consent of the Central Government or in accordance with the terms of any general or special authority given to it by the Central Government, borrow money from any source as it may deem fit for discharging all or any of its functions under this Act. (2) The Central Government may guarantee in such manner as it thinks fit, the repayment of the principal and the payment of interest thereon with respect to the loans borrowed by Bureau under sub-section (1). **22. Budget.— The Bureau shall prepare, in such form and at such time in each financial year as may** be prescribed, its budget for the next financial year, showing the estimated receipts and expenditure of the Bureau and forward the same to the Central Government. **23. Annual report.—(1) The Bureau shall prepare, in such form and at such time in each financial** year as may be prescribed, its annual report, giving a full account of its activities during the previous financial year, and submit a copy thereof to the Central Government. (2) The Central Government shall cause the annual report to be laid, as soon as may be after it is received, before each House of Parliament. **24. Accounts and audit.—(1) The Bureau shall maintain proper accounts and other relevant records** and prepare an annual statement of accounts, in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India. ----- (2) The accounts of the Bureau shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Bureau to the Comptroller and Auditor-General of India. (3) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Bureau shall have the same rights and privileges and the authority in connection with such audit as the Comptroller and Auditor-General of India generally has in connection with the audit of Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any office of the Bureau. (4) The accounts of the Bureau as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament. CHAPTER V MISCELLANEOUS **25. Power of Central Government to issue directions.—(1) Without prejudice to the foregoing** provisions of this Act, the Bureau shall, in the exercise of its powers or the performance of its functions under this Act, be bound by such directions on questions of policy as the Central Government may give in writing to it from time to time: Provided that the Bureau shall, as far as practicable, be given an opportunity to express its views before any direction is given under this sub-section. (2) The decision of the Central Government whether a question is one of policy or not shall be final. (3) The Central Government may take such other action as may be necessary for the promotion, monitoring and management of quality of goods, articles, processes, systems and services and to protect the interests of consumers and various other stakeholders and notify any other goods, articles, processes, systems and services for the purpose of sub-section (1) of section 16. **26. Restriction on use of name of Bureau and Indian Standard.—(1) No person shall, with a view** to deceive or likely to deceive the public, use without the previous permission of the Bureau,— (a) any name which so nearly resembles the name of the Bureau as to deceive or likely to deceive the public or the name which contains the expression “Indian Standard” or any abbreviation thereof; or (b) any title of any patent or mark or trade mark or design, in relation to any goods, article, process, system or service, containing the expressions “Indian Standard” or “Indian Standard Specification” or any abbreviation of such expressions. (2) Notwithstanding anything contained in any law for the time being in force, no registering authority shall— (a) register any company, firm or other body of persons which bears any name or mark; or (b) register a trade mark or design which bears any name or mark; or (c) grant a patent, in respect of an invention, which bears a title containing any name or mark, if the use of such name or mark is in contravention of sub-section (1). (3) If any question arises before a registering authority whether the use of any name or mark is in contravention of sub-section (1), the registering authority may refer the question to the Central Government whose decision thereon shall be final. ----- **27. Appointment and powers of certification officers.—(1) The Bureau may appoint as many** certification officers as may be necessary for the purpose of inspection whether any goods, article, process, system or service in relation to which the Standard Mark has been used conforms to the relevant standard or whether the Standard Mark has been properly used in relation to any goods, article, process, system or service with or without licence, and for performing such other functions as may be assigned to them. (2) Subject to any rules made under this Act, a certification officer shall have power to— (a) inspect any operation carried on in connection with any goods, article, process, system or service in relation to which the Standard Mark has been used; and (b) take samples of any goods or article or of any material or substance used in any goods, article, process, system or service, in relation to which the Standard Mark has been used. (3) Every certification officer shall be furnished by the Bureau with a certificate of appointment as a certification officer, and the certificate shall, on demand, be produced by the certification officer. (4) Every certified body or licence holder shall— (a) provide reasonable facilities to certification officer to enable him to discharge the duties imposed on him; (b) inform certification officer or the Bureau of any change in the conditions which were declared or verified by the certification officer or the Bureau at the time of grant of certificate of conformity or licence. (5) Any information obtained by a certification officer or the Bureau from any statement made or information supplied or any evidence given or from inspection made under the provisions of this Act shall be treated as confidential: Provided that nothing shall apply to the disclosure of any information for the purpose of prosecution and protection of interest of consumers. **28. Power to search and seizure.—(1) If the certification officer has reason to believe that any** goods or articles, process, system or service in relation to which the contravention of section 11 or sub-sections (6) or (8) of section 14 or section 15 or section 17 has taken place are secreted in any place, premises or vehicle, he may enter into and search such place, premises or vehicle for such goods or articles, process, system or service, as the case may be. (2) Where, as a result of any search made under sub-section (1), any goods or article, process, system or service has been found in relation to which contravention of section 11 or sub-sections (6) or (8) of section 14 or section 15 or section 17 has taken place, the certification officer may seize such goods or article and other material and documents which, in his opinion will be useful for, or relevant to any proceeding under this Act: Provided that where it is not practicable to seize any such goods or article or material or document, the certification officer may serve on the owner an order that he shall not remove, part with, or otherwise deal with, the goods or article or material or document except with the previous permission of the certification officer. (3) The provision of the Code of Criminal Procedure, 1973 (2 of 1974), relating to searches and seizures shall, so far as may be, apply to every search or seizure made under this section. **29. Penalty for contravention.—(1) Any person who contravenes the provisions of section 11 or** sub-section (1) of section 26 shall be punishable with fine which may extend to five lakh rupees. (2) Any person who contravenes the provisions of sub-sections (6) or (8) of section 14 or section 15 shall be punishable with imprisonment for a term which may extend to one year or with fine which shall not be less than one lakh rupees, but may extend up to five times the value of goods or articles produced or sold or offered to be sold or affixed or applied with a Standard Mark including Hallmark, or with both: ----- Provided that where the value of goods or articles produced or sold or offered to be sold cannot be determined, it shall be presumed that one year's production was in such contravention and the annual turnover in the previous financial year shall be taken as the value of goods or articles for such contravention. (3) Any person who contravenes the provisions of section 17 shall be punishable with imprisonment for a term which may extend up to two years or with fine which shall not be less than two lakh rupees for the first contravention and not be less than five lakh rupees for the second and subsequent contraventions, but may extend up to ten times the value of goods or articles produced or sold or offered to be sold or affixed or applied with a Standard Mark, including Hallmark, or with both: Provided that where the value of goods or articles produced or sold or offered to be sold cannot be determined, it shall be presumed that one year's production was in such contravention and the annual turnover in the previous financial year shall be taken as the value of goods or articles for such contravention. (4) The offence under sub-section (3) shall be cognizable. **30. Offences by companies.—Where an offence under this Act has been committed by a company,** every director, manager, secretary or other officer of the company who, at the time the offence was committed, was in charge of and was responsible to the company for the conduct of the business of the company, or authorised representative of the company as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly, irrespective of the fact that the offence has been committed with or without the consent or connivance of, or is attributable to any neglect on the part of any director, manager, secretary or other officer of the company, or authorised representative of the company. _Explanation.—For the purposes of this section,—_ (a) “company” means a body corporate and includes a firm or other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm. **31. Compensation for non-conforming goods.—Where a holder of licence or certificate of** conformity or his representative has sold any goods, article, process, system or service, which bears a Standard Mark not conforming to the relevant standard, or with colourable imitation, the certified body or licence holder or his representative shall be liable to compensate the consumer for the injury caused by such non-conforming goods, article, process, system or service in such manner as may be prescribed. **32. Cognizance of offence by courts.—(1) No court inferior to that of a Metropolitan Magistrate or a** Judicial Magistrate of the first class, specially empowered in this behalf, shall try any offence punishable under this Act. (2) No court shall take cognizance of any offence punishable under this Act save on a complaint made by— (a) or under the authority of the Bureau; or (b) any police officer, not below the rank of deputy superintendent of police or equivalent; or (c) any authority notified under sub-section (2) of section 16; or (d) any officer empowered under the authority of the Government; or (e) any consumer; or (f) any association. (3) Any police officer not below the rank of deputy superintendent of police or equivalent, may, if he is satisfied that any of the offences referred to in sub-section (3) of section 29 has been, is being, or is likely to be, committed, search and seize without warrant, the goods, die, block, machine, plate, other instruments or things involved in committing the offence, wherever found, and all the articles so seized shall, as soon as practicable, be produced before a Magistrate as prescribed under sub-section (1). ----- (4) The court may direct that any property in respect of which the contravention has taken place shall be forfeited to the Bureau. (5) The court may direct that any fine, in whole or any part thereof, payable under the provisions of this Act, shall be payable to the Bureau. **33. Compounding of offence.—(1) Notwithstanding anything contained in the Code of Criminal** Procedure, 1973 (2 of 1974), any offence committed for the first time, punishable under this Act, not being an offence punishable with imprisonment only, or with imprisonment and also with fine, may, either before or after the institution of any prosecution, be compounded by an officer so authorised by the Director General, in such manner as may be prescribed: Provided that the sum so specified shall not in any case exceed the maximum amount of the fine which may be imposed under section 29 for the offence so compounded; and any second or subsequent offence committed after the expiry of a period of three years from the date on which the offence was previously compounded shall be deemed to be an offence committed for the first time. (2) Every officer referred to in sub-section (1) shall exercise the powers to compound an offence, subject to the direction, control and supervision of the Bureau. (3) Every application for the compounding of an offence shall be made in such manner as may be prescribed. (4) Where any offence is compounded before the institution of any prosecution, no prosecution shall be instituted in relation to such offence against the offender in relation to whom the offence is so compounded. (5) Where the composition of any offence is made after the institution of any prosecution, such composition shall be brought to the notice of the court in which the prosecution is pending in writing by the officer referred to in sub-section (1), and on such notice of the composition of the offence being given and its acceptance by the court, the person against whom the offence is so compounded shall be discharged. **34. Appeal.—(1) Any person aggrieved by an order made under section 13 or sub-section (4) of** section 14 or section 17 of this Act may prefer an appeal to Director General of the Bureau within such period as prescribed. (2) No appeal shall be admitted if it is preferred after the expiry of the period prescribed therefor: Provided that an appeal may be admitted after the expiry of the period prescribed therefor if the appellant satisfies the Director General that he had sufficient cause for not preferring the appeal within the prescribed period. (3) Every appeal made under this section shall be made in such form and shall be accompanied by a copy of the order appealed against and by such fees as may be prescribed. (4) The procedure for disposing of an appeal shall be such as may be prescribed: Provided that before disposing of an appeal, the appellant shall be given a reasonable opportunity of being heard. (5) The Director General may suo motu or on an application made in the manner prescribed review the order passed by any officer to whom the power has been delegated by him. (6) Any person aggrieved by an order made under sub-section (1) or sub-section (5) may prefer an appeal to the Central Government having administrative control of the Bureau within such period as may be prescribed. **35. Members, officers and employees of Bureau to be public servants.—All members, officers** and other employees of the Bureau shall be deemed, when acting or purporting to act in pursuance of any ----- [of the provisions of this Act, to be public servants within the meaning of section 21 of the Indian Penal](javascript:fnOpenLinkPopUp('782','15803');) Code (45 of 1860). **36. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall** lie against the Government or any officer of the Government or any member, officer or other employee of the Bureau for anything which is in done or intended to be done in good faith under this Act or the rules or regulations made thereunder. **37. Authentication of orders and other instruments of Bureau.—All orders and decisions of, and** all other instruments issued by, the Bureau shall be authenticated by the signature of such officer or officers as may be authorised by the Bureau in this behalf. **38. Power to make rules.—The Central Government may, by notification in the Official Gazette,** make rules for carrying out the purposes of this Act. **39. Power to make regulations.—The Executive Committee may, with the previous approval of the** Central Government, by notification in the Official Gazette, make regulations consistent with this Act and the rules to carry out the purposes of this Act. **40. Rules and regulations to be laid before Parliament.—Every rule and every regulation made** under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. **41. Act not to affect operation of certain Acts.—Nothing in this Act shall affect the operation of the** Agricultural Produce (Grading and Marking) Act, 1937 (1 of 1937), or the Drugs and Cosmetics Act, 1940 (23 of 1940), or any other law for the time being in force, which deals with any standardisation or quality control of any goods, article, process, system or service **42. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order, published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty: Provided that no order shall be made under this section after the expiry of two years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **43. Repeal and savings.—(1) The Bureau of Indian Standards Act, 1986 (63 of 1986), is hereby** repealed. (2) Notwithstanding such repeal, anything done or any action taken or purported to have done or taken including any rule, regulation, notification, scheme, specification, Indian Standard, Standard Mark, inspection order or notice made, issued or adopted, or any appointment, or declaration made or any licence, permission, authorisation or exemption granted or any document or instrument executed or direction given or any proceedings taken or any penalty or fine imposed under the Act hereby repealed shall, insofar as it is not inconsistent with the provisions of this Act, be deemed to have been done or taken under the corresponding provisions of this Act. (3) The mention of particular matters in sub-section (2) shall not be held to prejudice or affect the [general application of section 6 of the General Clauses Act, 1897 (10 of 1897), with regard to the effect of](javascript:fnOpenLinkPopUp('490','28221');) repeal. ----- -----

25-Mar-2016

17

The National Waterways Act, 2016.

https://www.indiacode.nic.in/bitstream/123456789/2159/1/A2016-17.pdf

central

# THE NATIONAL WATERWAYS ACT, 2016 _______ ARRANGEMENT OF SECTIONS _______ SECTIONS 1. Short title and commencement. 2. Existing national waterways and declaration of certain inland waterways as national waterways. 3. Declaration as to expediency of control and development by Union of waterways specified in Schedule for certain purposes. 4. Amendment of section 2 of Act 82 of 1985. 5. Repeal of certain enactments and saving. THE SCHEDULE. 1 ----- # THE NATIONAL WATERWAYS ACT, 2016 ACT NO. 17 OF 2016 [25th March, 2016.] # An Act to make provisions for existing national waterways and to provide for the declaration of certain inland waterways to be national waterways and also to provide for the regulation and development of the said waterways for the purposes of shipping and navigation and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Sixty-seventh Year of the Republic of India as follows:— **1. Short title and commencement.—(1) This Act may be called the National Waterways Act, 2016.** (2) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. **2. Existing national waterways and declaration of certain inland waterways as national** **waterways.—(1) The existing national waterways specified at serial numbers 1 to 5 in the Schedule along** with their limits given in column (3) thereof, which have been declared as such under the Acts referred to in sub-section (1) of section 5, shall, subject to the modifications made under this Act, continue to be national waterways for the purposes of shipping and navigation under this Act. (2) The regulation and development of the waterways referred to in sub-section (1) which have been under the control of the Central Government shall continue, as if the said waterways are declared as national waterways under the provisions of this Act. (3) The inland waterways specified at serial numbers 6 to 111 in the Schedule along with their limits given in column (3) thereof are hereby declared to be national waterways for the purposes of shipping and navigation. **3. Declaration as to expediency of control and development by Union of waterways specified in** **Schedule for certain purposes.—Save as provided in sub-sections (1) and (2) of section 2, it is hereby** declared that it is expedient in the public interest that the Union should take under its control the regulation and development of the waterways specified in the Schedule for the purposes of shipping and navigation to the extent provided in the Inland Waterways Authority of India Act, 1985 (82 of 1985). **4. Amendment of section 2 of Act 82 of 1985.—In the Inland Waterways Authority of India** [Act, 1985, in section 2, for clause (h), the following clause shall be substituted, namely:—](javascript:fnOpenLinkPopUp('1998','77371');) „(h) “national waterway” means the inland waterway declared by section 2 of the National Waterways Act, 2016, to be a national waterway. _Explanation.—If Parliament declares by law any other waterway to be a national waterway, then,_ from the date on which such declaration takes effect, such other waterway— (i) shall also be deemed to be a national waterway within the meaning of this clause; and (ii) the provisions of this Act shall, with necessary modifications (including modification for construing any reference to the commencement of this Act as a reference to the date aforesaid), apply to such national waterway;‟. **5. Repeal of certain enactments and saving.—(1) The following Acts, namely:—** (a) the National Waterway (Allahabad-Haldia Stretch of the Ganga Bhagirathi-Hooghly River) Act, 1982 (49 of 1982); (b) the National Waterway (Sadiya-Dhubri Stretch of Brahmaputra River) Act, 1988 (40 of 1988); 1. 12th April, 2016, vide notification No. S.O. 1384 (E), dated 11th April, 2016, see Gazette of India, Part II, sec. 3(ii). 2 ----- (c) the National Waterway (Kollam-Kottapuram Stretch of West Coast Canal and Champakara and Udyogmandal Canals) Act, 1992 (25 of 1992); (d) the National Waterway (Talcher-Dhamra Stretch of Rivers, Geonkhali-Charbatia Stretch of East Coast Canal, Charbatia-Dhamra Stretch of Matai River and Mahanadi Delta Rivers) Act, 2008 (23 of 2008); and (e) the National Waterway (Kakinada-Puducherry Stretch of Canals and the Kaluvelly Tank, Bhadrachalam-Rajahmundry Stretch of River Godavari and Wazirabad-Vijayawada Stretch of River Krishna) Act, 2008 (24 of 2008), are hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken under the Acts referred to in sub-section (1), in so far as they are in conformity with the provisions of this Act, shall be deemed to have been done or omitted to be done or taken or not taken under the provisions of this Act. 3 ----- THE SCHEDULE (See section 2) Sl. No. National Waterways Limits of the National Waterways (1) (2) (3) 1. National Waterway 1 Allahabad-Haldia Stretch of the Ganga—Bhagirathi-Hooghly Rivers with the following limits, namely:— From road bridge at Allahabad across the river Ganga, about 2 kilometres upstream of the confluence of the rivers Ganga and Yamuna at Triveni to the inland waterway limit on the tidal waters of the river Hooghly from a line drawn between No. 1 Refuge house at the entrance to Baratola river commonly called channel creek, to a position 2.5 kilometres due south of Saugor lighthouse, and then connected to the right or south bank at the entrance to the Hijili or Russulpore river, through river Ganga, lock canal and feeder canal at Farakka, river Bhagirathi and river Hooghly. 2. National Waterway 2 Sadiya-Dhubri Stretch of Brahmaputra River with the following limits, namely:— From a line drawn across the Brahmaputra river from the point on the north bank of the Kundil river at its confluence with the Brahmaputra river near Sadiya to the beginning of the river island Majuli and therefrom through all the channels of the Brahmaputra river on either side of the river island Majuli up to the end of the river island Majuli and then up to the international border down stream of Dhubri. 3. National Waterway 3 Kollam-Kozhikode Stretch of West Coast Canal and Champakara and Udyogmandal Canals with the following limits, namely:— The northern limit of the West Coast Canal shall be Kozhikode at Lat 11°13‟39”N, Lon 75°46‟44”E and the southern limit shall be a line drawn across the Ashtamudi KayaI at a distance of 100 metres south of Kollam jetty. The Champakara Canal starting from the confluence with the West Coast Canal and ending at the railway bridge (railway siding for Cochin Oil Refinery) near Fertilisers and Chemicals Travancore Limited, boat basin. The Udyogmandal Canal starting from the confluence with West Coast Canal and ending at the Padalarn road bridge (Eloor-Edayar). 4 ----- (1) (2) (3) 4. National Waterway 4 Kakinada-Puducherry Stretch of Canals and the Kaluvelly Tank, Nashik-Bhadrachalam-Rajahmundry Stretch of River Godavari and Bridge near village Galagali-Wazirabad-Vijayawada Stretch of River Krishna with the following limits, namely:— _Kakinada-Puducherry canal_ (Canal system consisting of Kakinada canal, Eluru canal, Commamur canal and North Buckingham canal, portion of the Coovum river linking North and South Buckingham canals, South Buckingham canal and Kaluvelly tank) Northern limit: A line drawn across the Kakinada canal parallel to the Jagannadhapuram road bridge, Kakinada at a distance of 500 metres down stream at Lat 16° 56‟ 24” N, Lon 82° 14‟20”E; Southern limit: Junction of East Coast Highway and Chinnakalawari-Kanakachettikulam road at Kanakachettikulam which is the end point of the artificial canal link to Kaluvelly tank at Lat 20° 0‟ 07” N, Lon 79° 52‟ 12” E. _River Godavari_ Western limit: Road bridge on Mumbai-Agra Highway at Nashik across river Godavari at Lat 20° 0‟ 07” N, Lon 73° 48‟ 12” E; Eastern limit: Sir Arthur Cotton barrage across river Godavari at Dowlaiswaram, Rajahmundry at Lat 16° 56‟ 05” N, Lon 81° 45‟ 32” E. _River Krishna_ Western limit: Bridge near village Galagali Lat 16°25‟ 28” N, Lon 75°26‟19” E. Eastern limit: Prakasam barrage across river Krishna at Vijayawada at Lat 16° 30‟ 18” N, Lon 80° 36‟ 23” E. 5. National Waterway 5 Talcher-Dhamra Stretch of Brahmani-Kharsua-Tantighai-Pandua Nala-Dudhei Nala-Kani Dhamra-river system, GeonkhaliCharbatia Stretch of East Coast Canal, Charbatia-Dhamra Stretch of Matai River and Mahanadi Delta Rivers with the following limits, namely:— _East Coast Canal and Matai river (Consisting of old Hijli tidal_ canal, Orissa coast canal and Matai river) Northern limit: Confluence point of Hooghly river and Hijli tidal canal at Geonkhali at Lat 22°12‟ 20” N, Lon 88° 03‟ 07” E; Southern limit: Confluence of Matai river and Dhamra river near Dhamra Fishing harbour at Lat 20° 47‟ 42” N, Lon 86° 53‟ 03” E. 5 ----- (1) (2) (3) _Brahmani-Kharsua-Dhamra_ _river_ _system_ (Consisting of Brahmani-Kharsua-Tantighai-Pandua Nala-Dudhei Nala-KaniDhamra rivers) North-Western limit: Samal barrage across river Brahmani, Talcher at Lat 21[o] 04‟ 26” N, Lon 86[o] 08‟ 05” E; South-Eastern limit: An imaginary line drawn across Dhamra river at East Point of Kalibhanj Dian Reserved Forest near Chandnipal at Lat 20[o]46‟ 26” N, Lon 86[o] 57‟ 15” E. _Mahanadi delta rivers (Consisting of Hansua river, Atharabanki_ Creek, Nuna nala, Gobri nala, Kharnasi river and Mahanadi river) (Alternate route-Hansua river enters into Bay of Bengal through northern point of False point bay, then enters river Kharnasi at southern end of False point bay, river Atharabanki, a northernly distributory of river Mahanadi) Northern limit: Confluence of Kharsua river with Brahmani river at Ramchandrapur at Lat 20[o] 36‟ 55”N, Lon 86[o] 45‟ 05” E; Southern limit: An imaginary line in continuation to the Northern break water structure across the entrance channel at Paradip Port at Lat 20[o]15‟ 38”N, Long 86[o]‟ 40‟ 55” E. 6. National Waterway 6 _Aai River:_ Upstream of Bridge at Adalguri No. 3 at Lat 26[o]33‟32”N, Lon 90[o]34‟01”E to confluence with Brahmaputra river at Lat 26[o]12‟50”N, Lon 90[o]36‟24”E (4.7km upstream of Naranarayan Setu at Jogighopa). 7. National Waterway 7 _Ajoy (Ajay) River:_ Bridge on Morgram-Panagarh State Highway No. 14 at Illambazar Lat 23[o]36‟56”N, Lon 87[o]31‟58”E to confluence of river Ajoy with river Bhagirathi at Lat 23[o]39‟23”N, Lon 88[o]07‟57”E at Katwa. 8. National Waterway 8 _Alappuzha-Changanassery Canal:_ Boat Jetty, Alappuzha at Lat 9[o]30‟03”N, Lon 76[o]20‟37”E to Changanassery Jetty at Lat 9[o]26‟42”N, Lon 76[o]31‟42”E. 9. National Waterway 9 _Alappuzha-Kottayam Athirampuzha Canal:_ Boat Jetty, Alappuzha at Lat 9[o]30‟03”N, Lon 76[o]20‟37”E to Athirampuzha market Lat 9[o]40‟04”N, Lon 76[o]31‟54”E. 6 ----- (1) (2) (3) 10. National Waterway 10 _Amba River:_ Arabian Sea, Dharamtaar creed near village Revas at Lat 18[o]50‟15”N, Lon 72[o]56‟31”E to a Bridge near Nagothane ST Stand at Lat 18[o]32‟20”N, Lon 73[o]08‟0”E. 11. National Waterway 11 _Arunawati Aran River System:_ Bridge on State Highway No. 211 at Lat 20[o]13‟33”N, Lon 77[o]33‟23”E to confluence of Arunawati and Aran rivers near Ratanapur village at Lat 19[o]59‟31”N, Lon 78[o]09‟38”E to confluence of Aran and Penganga rivers near Chimata village at Lat 19[o]54‟08”N, Lon 78[o]12‟36”E. 12. National Waterway 12 _Asi River:_ Ganga river confluence at Assi Ghat, Varanasi at Lat 25[o]17‟19”N, Lon 83[o] 0‟25”E to near Newada, Varanasi at Lat 25[o]16‟37”N, Lon 82[o] 58‟18”E. 13. National Waterway 13 _AVM Canal:_ Poovar Beach at Lat 8[o]18‟30”N, Lon 77[o]04‟45”E to Erayumanthurai Bus Stop at Lat 8[o]14‟54”N, Lon 77[o]09‟34”E. 14. National Waterway 14 _Baitarni River:_ Dattapur village at Lat 20[o]51‟45”N, Lon 86[o] 33‟30”E to confluence with Dhamra river near Laxmiprasad Dia at Lat 20[o]45‟13” N, Lon 86[o] 49‟15”E. 15. National Waterway 15 _Bakreswar Mayurakshi River System:_ Bakreswar river from Nil Nirjan Dam at Lat 23[o]49‟31”N, Lon 87[o]24‟59”E to confluence of Bakreswar and Mayurakshi rivers near Talgram village at Lat 23[o] 51‟58”N, Lon 88[o]02‟21”E. Mayurakshi river from Talgram village to confluence with Dwarka river near Dakshin Hijal village at Lat 23[o] 58‟22”N, Lon 88[o]09‟21”E. 16. National Waterway 16 _Barak River:_ Lakhipur Ferry Ghat Lat 24[o]47‟18”N, Lon 93[o]01‟16”E to Tuker Gram Lat 24[o]52‟34”N, Lon 92[o]29‟21”E. 17. National Waterway 17 _Beas River:_ Talwara Barrage at Lat 31[o]57‟22”N, Lon 75[o]53‟37”E to confluence of Beas and Sutlej rivers near Harike at Lat 31[o]09‟09”N, Lon 74[o]58‟08”E. 18. National Waterway 18 _Beki River:_ Elenagamari Lat 26[o]38‟37”N, Lon 90[o]59‟02”E to Brahmaputra confluence at Lat 26[o]14‟24”N, Lon 90[o]47‟ 21”E. 7 ----- (1) (2) (3) 19. National Waterway 19 _Betwa River:_ Rirwa Buzurg Dariya at Lat 25[o]54‟17”N, Lon 79[o]45‟06”E to confluence of Betwa and Yamuna rivers near Merapur Daria village at Lat 25[o]55‟11”N, Lon 80[o]13‟08”E. 20. National Waterway 20 _Bhavani River:_ Bhavani Sagar Dam, Sathyamangalam at Lat 11[o]28‟16”N, Lon 77[o]06‟49”E to confluence of Bhavani and Kaveri rivers at Kaveri river bridge on Salem-Coimbatore Highway: “National Highway-47 Lat 11[o]25‟54”N, Lon 77[o]41‟02”E. 21. National Waterway 21 _Bheema River:_ Barrage (approx 1 km. from Hippargi village) at Lat 17[o]09‟05”N, Lon 76[o]46‟34”E to confluence of Bheema and Krishna rivers at Gundloor Lat 16[o]24‟28”N, Lon 77[o]17‟13”E. 22. National Waterway 22 _Birupa Badi Genguti Brahmani River System:_ Birupa Barrage at Choudwar at Lat 20[o]30‟49”N, Lon 85[o]55‟20”E to Confluence of Birupa and Brahmani rivers near Upperkai Pada village at Lat 20[o]37‟36”N, Lon 86[o]24‟19”E including alternative route from, Samaspur village Lat 20[o]35‟41”N, Lon 86[o]06‟32”E to near Kharagpur village Lat 20[o]38‟ 28”N, Lon 86[o]17‟32”E. Bramani river from confluence of Birupa and Brhmani rivers near Upperkai Pada village at Lat 20[o]37‟36”N, Lon 86[o]24‟19”E to Bramani river at Katana Lat 20[o]39‟26”N, Lon 86[o]44‟53”E. 23. National Waterway 23 _Budha Balanga River:_ Barrage (approx 300m from Patalipura village) at Lat 21[o]38‟13”N, Lon 86[o]50‟53”E to confluence of Budha Balanga river with Bay of Bengal at Chandipur Fishing Port Lat 21[o]28‟12”N, Lon 87[o]04‟12”E. 24. National Waterway 24 _Chambal River:_ Chambal road bridge on National Highway-92 Lat 26[o]41‟56”N, Lon 78[o]56‟09”E to confluence of Chambal and Yamuna rivers at Charakpura village Lat 26[o]29‟30”N, Lon 79[o]15‟01”E. 25. National Waterway 25 _Chapora River:_ Bride at State Highway No. 124 (1 Km. from Maneri village) Lat 15[o]‟42‟47”N. Lon 73[o]57‟23”E to Confluence of Chapora river with Arabian Sea at Morjim Lat 15[o]36‟33”N, Lon 73[o]44‟01”E. 26. National Waterway 26 _Chenab River:_ Chenab road bridge at Lat 33[o]05‟07”N, Lon 74[o]48‟06”E to Bridge near Bhardakalan at Lat 32[o]48‟12”N, Lon 74[o]34‟53”E. 8 ----- (1) (2) (3) 27. National Waterway 27 _Cumberjua River:_ Confluence of Cumberjua and Zuvari rivers near Cortalim ferry terminal Lat 15[o]24‟40”N, Lon 73[o]54‟48”E to confluence of Cumberjua and Mandovi rivers near Sao Martias Vidhan Parishad Lat 15[o]31‟26”N, Lon 73[o]55‟34”E. 28. National Waterway 28 _Dabhol Creek Vashishti River:_ Arabian Sea at Dabhol Lat 17[o]34‟51”N, Lon 73[o]09‟18”E to bridge at Pedhe Lat 17[o]32‟39”N, Lon 73[o]30‟36”E. 29. National Waterway 29 _Damodar River:_ Krishak Setu, Bardhman on State Highway No. 8 at Lat 23[o]12‟40”N, Lon 87[o]50‟54”E to confluence with Hooghly river near Purbha Basudebpur at Lat 22[o]21‟01”N, Lon 88[o]05‟19”E. 30. National Waterway 30 _Dehing River:_ Rail Bridge at Merbil Majuli No. 1 Lat 27[o]19‟25”N, Lon 95[o]18‟45”E to confluence of Dehing and Brahmaputra rivers near village Lachan at Lat 27[o]15‟10”N, Lon 94[o]40‟01”E. 31. National Waterway 31 _Dhansiri/Chathe River:_ Bridge near Morongi T.E. village Lat 26[o]24‟41”N, Lon 93[o]53‟47”E to Numaligarh Lat 26[o]42‟01”N, Lon 93[o]35‟15”E. 32. National Waterway 32 _Dikhu River:_ Bridge at Nazira on State Highway No 1 Lat 26[o]55‟18”N, Lon 94[o]44‟27”E to confluence of Dikhu and Brahmaputra rivers at Lat 26[o]59‟58”N, Lon 94[o]27‟42”E. 33. National Waterway 33 _Doyans River:_ Bridge near Sialmari Lat 26[o]10‟47”N, Lon 93[o]59‟10”E to confluence of Doyans and Subansiri rivers at Lat 26[o]26‟53”N, Lon 93[o]57‟12”E. 34. National Waterway 34 _DVC Canal:_ Durgapur Barrage Lat 23[o]28‟47”N, Lon 87[o]18‟19”E to Confluence point of DVC canal with Hoogly river near Tribeni Lat 23[o]0‟31”N, Lon 88[o]24‟55”E. 35. National Waterway 35 _Dwarakeswar River:_ Bridge near Abantika Lat 23[o]06‟55”N, Lon 87[o]18‟47”E to confluence of Dwarakeswar and Silai rivers at Pratappur Lat 22[o]40‟17”N, Lon 87[o]46‟43”E. 36. National Waterway 36 _Dwarka River:_ Bridge at Tarapith at Lat 24[o]06‟58”N, Lon 87[o]47‟51”E to confluence with Bhagirathi river near Maugram village at Lat 23[o]43‟53”N, Lon 88[o]10‟51”E. 9 ----- (1) (2) (3) 37. National Waterway 37 _Gandak River:_ Bhaisaslotal Barrage near Triveni Ghat at Lat 27[o]26‟22”N, Lon 83[o]54‟24”E to Gandak and Ganga rivers confluence at Hajipur Lat 25 39[o]18‟N, Lon 85[o]10‟28”E. 38. National Waterway 38 _Gangadhar River:_ Pakriguri Bridge on National Highway-31C at Lat 26[o]27‟30”N, Lon 89[o]51‟25”E to Bangladesh Border at Binnachara Point III Lat 26[o]0‟32”N, Lon 89[o]49‟57”E. 39. National Waterway 39 _Ganol River:_ Bangladesh Border at Mankachar Lat 25[o]31‟47”N, Lon 89[o]51‟24”E to bridge near Dolbari at Lat 25[o]34‟20”N, Lon 90[o]03‟46”E. 40. National Waterway 40 _Ghaghra River:_ Faizabad at Lat 26[o]47‟51”N, Lon 82[o]06‟46”E to Ghaghra and Ganga river confluence at Manjhi Ghat Lat 25[o]44‟13”N, Lon 84[o]42‟03”E. 41. National Waterway 41 _Ghataprabha River:_ Barrage near Malali Lat 16[o]20‟01”N, Lon 75[o]11‟23”E to confluence with river Krishna at Chicksangam Lat 16[o]20‟13”N, Lon 75[o]47‟54”E. 42. National Waterway 42 _Gomti River:_ Bara Imambara, Lucknow Lat 26[o]52‟21”N, Lon 80[o]54‟58”E to confluence of Gomti with river Ganga Lat 25[o]30‟31”N, Lon 83[o]10‟17”E. 43. National Waterway 43 _Gurupur River:_ Confluence of Netravathi river at Lat 12[o]50‟44”N, Lon 74[o]49‟45”E to confluence of Mangalore Port Bridge at Lat 12[o]55‟35”N, Lon 74[o]49‟37”E. 44. National Waterway 44 _Ichamati River:_ Bridge on Border Main Road at Gobra near Bangladesh Border at Lat 22[o]53‟50”N, Lon 88[o]53‟49”E to near Bangladesh Border at Bansjhari Mallikpur Lat 22[o]39‟07”N, Lon 88[o]55‟35”E. 45. National Waterway 45 _Indira Gandhi Canal:_ Harike Barrage at Lat 31[o]08‟33”N, Lon 74[o]56‟57”E to near Mohangarh Lat 27[o]18‟37”N, Lon 71[o]09‟10”E. 46. National Waterway 46 _Indus River:_ Bridge on highway at Upshi village Lat 33[o]49‟43”N, Lon 77[o]48‟56”E to Bridge on Shey-Chuchol road near Shey village Lat 34[o]03‟35”N, Lon 77[o]38‟33”E. 10 ----- (1) (2) (3) 47. National Waterway 47 _Jalangi River:_ Bridge on State Highway No. 14 near Plashipara at Lat 23[o]47‟47”N, Lon 88[o]27‟09”E to confluence of Jalangi with Hooghly/Bhagirathi rivers at Nabadwip Lat 23[o]24‟39”N, Lon 88[o]22‟48”E. 48. National Waterway 48 _Jawai-Luni Rivers and Rann of Kutch:_ Jawai river from Jalore at Lat 25[o]20‟37”N, Lon 72[o]41‟09”E to Luni river near Gandhav village to Rann of Kutch at Lat 23[o]32‟54”N, Lon 68[o]22‟27”E. 49. National Waterway 49 _Jhelum River:_ Bridge on highway at Lat 33[o]49‟26”N, Lon 75[o]03‟50”E to Wuler lake, Srinagar at Lat 34[o]21‟37”N, Lon 74[o]36‟36”E. 50. National Waterway 50 _Jinjiram River:_ Confluence with Brahmaputra river at Tumni Lat 25[o]51‟51”N, Lon 89[o]58‟57”E to Fulerchar Point. III at Brahmaputra river Lat 25[o]44‟15”N, Lon 89[o]52‟53”E. 51. National Waterway 51 _Kabini River:_ Kabini Dam Lat 11[o]58‟25”N, Lon 76[o]21‟10”E to Beeramballi at Lat 11[o]56‟10”N, Lon 76[o]14‟18”E. 52. National Waterway 52 _Kali River:_ Kodasalli Dam Lat 14[o]55‟08”N, Lon 74[o]32‟07”E to confluence of Kali river with Arabian Sea near Sadashivgad bridge at Lat 14[o]50‟31”N, Lon 74[o]07‟21”E. 53. National Waterway 53 _Kalyan-Thane-Mumbai Waterway, Vasai_ _Creek and Ulhas River:_ Arabian Sea at Navi Mumbai Lat 18[o]55‟50”N, Lon 72[o]53‟22”E via Ulhas river to bridge on State Highway No. 76 near Malegaon T. Waredi Lat 19[o]02‟38”N, Lon 73[o]19‟54”E; Bridge on Kalyan-Badlapur road near Kalyan railway yard at Kalyan Lat 19[o]14‟06”N, Lon 73[o]08‟49”E to Kalyan Lat 19[o]15‟35”N, Lon 73[o]09‟28”E; Vasai Creek from Lat 19[o]18‟54”N to Lon 72[o]47‟30”E to Kasheli at Lat 19[o]13‟23”N, Lon 73[o]0‟21”E. 54. National Waterway 54 _Karamnasa River:_ Bridge at Kakarait Lat 25[o]18‟11”N, Lon 83[o]31‟38”E to confluence of Karamnasa and Ganga rivers at Kutubpur Lat 25[o]31‟06”N, Lon 83[o]52‟47”E. 55. National Waterway 55 _Kaveri Kollidam River:_ Uratchikottai Barrage at Lat 11[o]29‟03”N, Lon 77[o]42‟14”E to confluence of river Kollidam with Bay of Bengal at Pazhaiyar Lat 11[o]21‟38”N, Lon 79[o]49‟53”E. 11 ----- (1) (2) (3) 56. National Waterway 56 _Kherkai River:_ Dam near Gangia village at Lat 22[o]45‟12”N, Lon 86[o]05‟09”E to confluence with Subarnrekha river at Jamshedpur Lat 22[o]50‟13”N, Lon 86[o]09‟37”E. 57. National Waterway 57 _Kopili River:_ Bridge at Banthai Gaon Tinali Bus Stop at Lat 26[o]10‟41”N, Lon 92[o]13‟05”E to confluence with Brahmaputra river at Chandrapur No. 2 Lat 26[o]15‟07”N, Lon 91[o]56‟49”E. 58. National Waterway 58 _Kosi River:_ Kosi Barrage at Hanuman Nagar Lat 26[o]31‟40”N, Lon 86[o]55‟29”E to Confluence of Kosi with Ganga river at Kursela Lat 25[o]24‟40”N, Lon 87[o]15‟14”E. 59. National Waterway 59 _Kottayam-Vaikom Canal:_ Kottayam, near Kodimatha at Lat 9[o]34‟39”N, Lon 76[o]31‟08”E to Vechoor joining National Waterway No. 3 at Lat 9[o]40‟0”N, Lon 76[o]24‟11”E. 60. National Waterway 60 _Kumari River:_ Dam near Amruhasa village at Lat 23[o]06‟37”N, Lon 86[o]15‟51”E to Mukutmanipur Dam at Chiada Lat 22[o]57‟18”N, Lon 86[o]44‟43”E. 61. National Waterway 61 _Kynshi River:_ Bangladesh Border near Mawpyllum Lat 25[o]12‟07”N, Lon 91[o]15‟21”E to bridge on Nonghyllam-Maweit road at Lat 25[o]19‟35”N, Lon 91[o]04‟07”E. 62. National Waterway 62 _Lohit River:_ Parasuram Kund at 27[o]52‟40”N, Lon 96[o]21‟40”E to Saikhowa Ghat, Sadiya Lat 27[o]47‟49”N, Lon 95[o]38‟14”E. 63. National Waterway 63 _Luni River:_ Dam at Jaswantpura Lat 26[o]13‟35”N, Lon 73[o]41‟20”E to Barrage near Malipura Lat 24[o]57‟04”N, Lon 71[o]38‟02”E. 64. National Waterway 64 _Mahanadi River:_ Sambalpur Barrage at Lat 21[o]27‟34”N, Lon 83[o]57‟50”E to Paradip at Lat 20[o]19‟38”N, Lon 86[o]40‟17”E. 65. National Waterway 65 _Mahananda River:_ Bridge near Gosaipur at Lat 25[o]26‟41”N, Lon 88[o]05‟26”E to Bangladesh Border near Adampur at Lat 24[o]57‟17”N, Lon 88[o]10‟59”E. 66. National Waterway 66 _Mahi River:_ Kadana Dam Lat 23[o]18‟22”N, Lon 73[o]49‟37”E to confluence with Gulf of Khambhat near Kavi railway station Lat 22[o]10‟35”N, Lon 72[o]30‟36”E. 67. National Waterway 67 _Malaprabha River:_ Jakanuru at Lat 15[o]49‟51”N, Lon 75[o]38‟54”E to confluence with river Krishna at Kudalasangama Lat 16[o]12‟30”N, Lon 76[o]04‟16”E. 12 ----- (1) (2) (3) 68. National Waterway 68 _Mandovir River:_ Bridge at Usgaon at Lat 15[o]26‟42”N, Lon 74[o]03‟12”E to confluence of Mandovi river with Arabian Sea at Reis Magos Lat 15[o]28‟32”N, Lon 73[o]46‟46”E. 69. National Waterway 69 _Manimutharu River:_ Manimutharu Dam Lat 8[o]39‟14”N, Lon 77[o]24‟47”E to confluence with Tramaraparani river near Aladiur Lat 8[o]41‟03”N, Lon 77[o]26‟07”E. 70. National Waterway 70 _Manjara River:_ Singur Dam at Lat 17[o]44‟58”N, Lon 77[o]55‟41”E to confluence with river Godavari at Kandakurthi at Lat 18[o]49‟07”N, Lon 77[o]52‟20”E. 71. National Waterway 71 _Mapusa/Moide River:_ Bridge on National Highway-17 at Mapusa Lat 15[o]35‟21”N, Lon 73[o]49‟17”E to confluence point of Mapusa and Mandovi rivers at Porvorim Lat 15[o]30‟20”N, Lon 73[o]50‟42”E. 72. National Waterway 72 _Nag River:_ Bridge near NIT Colony, Nagpur Lat 21[o]06‟17”N, Lon 79[o]06‟03”E to confluence with river Kanhan near Sawangi village at Lat 21[o]05‟38”N, Lon 79[o]27‟54”E. 73. National Waterway 73 _Narmada River:_ Pandhariya at Lat 21[o]57‟10”N, Lon 74[o]08‟27”E to confluence of Narmada with Arabian Sea at Gulf of Khambhat Lat 21[o]38‟27”N, Lon 72[o]33‟28”E. 74. National Waterway 74 _Netravathi River:_ Netravathi Dam, Dharmsthala Lat 12[o]57‟55”N, Lon 75[o]22‟10”E to confluence with Arabian sea at Bengre Lat 12[o]50‟43”N, Lon 74[o]49‟29”E. 75. National Waterway 75 _Palar River:_ Rail bridge at Virudampattu, Vellore at Lat 12[o]56‟14”N, Lon 79[o]07‟30”E to confluence with Bay of Bengal at Sadurangapattinam Lat 12[o]27‟52”N, Lon 80[o]09‟13”E. 76. National Waterway 76 _Panchagangavali (Panchagangoli) River:_ Gangoli Port at Lat 13[o]38‟01”N, Lon 74[o]40‟08”E to Bridge at Badakere at Lat 13[o]44‟50”N, Lon 74[o]39‟15”E. 77. National Waterway 77 _Pazhyar River:_ Bridge near Veeranarayana Mangalam village at Lat 8[o]13‟49”N, Lon 77[o]26‟27”E to confluence with Arabian Sea at Manakudi at Lat 8[o]05‟15”N, Lon 77[o]29‟08”E. 78. National Waterway 78 _Penganga Wardha River System:_ Confluence of Aran and Penganga rivers near Chimata village at Lat 19[o]54‟08”N, Lon 78[o]12‟36”E to the confluence of Wardha and Pranahita rivers near Ravalli village at Lat 19[o]33‟59”N, Lon 79[o]49‟0”E. 13 ----- (1) (2) (3) 79. National Waterway 79 _Pennar River:_ Penna Barrage, Pothireddypalem at Lat 14[o]28‟08”N, Lon 79[o]59‟09”E to confluence with Bay of Bengal near Kudithipalem at Lat 14[o]35‟37”N, Lon 80[o]11‟31”E. 80. National Waterway 80 _Ponniyar River:_ Sathanur Dam at Lat 12[o]11‟0”N, Lon 78[o]51‟01”E to Cuddalore at confluence of Bay of Bengal at Lat 11[o]46‟22”N, Lon 79[o]47‟42”E. 81. National Waterway 81 _Punpun River:_ Bridge on National Highway-83 near Pakri village Lat 25[o]29‟50”N, Lon 85[o]06‟19”E to confluence with river Ganga at Fatuha Lat 25[o]30‟50”N, Lon 85[o]18‟17”E. 82. National Waterway 82 _Puthimari River:_ Bridge on National Highway-31 near village Ghopla at Lat 26[o]22‟01”N, Lon 91[o]39‟11”E to confluence with Brahmaputra river near Bamunbori at Lat 26[o]15‟28”N, Lon 91[o]20‟35”E. 83. National Waterway 83 _Rajpuri Creek:_ Arabian Sea at Rajpuri Lat 18[o]18‟03”N, Lon 72[o]56‟43”E to Mhasala at Lat 18[o]08‟15”N, Lon 73[o]06‟45”E. 84. National Waterway 84 _Ravi River:_ Dam at Gandhiar Lat 32[o]35‟51”N, Lon 75[o]59‟05”E to Ranjeet Sagar Dam at Basoli Lat 32[o]26‟36”N, Lon 75[o]43‟45”E. 85. National Waterway 85 _Revadanda Creek Kundalika River System:_ Arabian Sea at Revadanda Lat 18[o]32‟20”N, Lon 72[o]55‟33”E to bridge on Roha-Astami Road near Roha Nagar Lat 18[o]26‟32”N, Lon 73[o]07‟11”E. 86. National Waterway 86 _Rupnarayan River:_ Confluence of Dwarakeswar and Silai rivers at Pratappur Lat 22[o]40‟17”N, Lon 87[o]46‟43”E to confluence with Hooghly river at Geonkhali Lat 22[o]12‟42”N, Lon 88[o]03‟14”E. 87. National Waterway 87 _Sabarmati River:_ Barrage near Sadoliya Lat 23[o]26‟50”N, Lon 72[o]48‟35”E to confluence with Gulf of Khambhat near Khambhat Lat 22[o]09‟18”N, Lon 72[o]27‟28”E. 88. National Waterway 88 _Sal River:_ Orlim Deusa Bridge Lat 15[o]13‟11”N, Lon 73[o]57‟30”E to confluence with Arabian Sea at Mobor Lat 15[o]08‟32”N, Lon 73[o]57‟0”E. 89. National Waterway 89 _Savitri River (Bankot Creek):_ Bridge near Sape at Lat 18[o]05‟54”N, Lon 73[o]20‟09”E to Arabian Sea at Bankot Lat 17[o]58‟47”N, Lon 73[o]01‟45”E. 90. National Waterway 90 _Sharavati River:_ Honnavar Port Sea Mouth at Lat 14[o]17‟56”N, Lon 74[o]25‟27”E to link at highway at Gersoppa Lat 14[o]14‟15”N, Lon 74[o]39‟06”E. 14 ----- (1) (2) (3) 91. National Waterway 91 _Shastri River Jaigad Creek:_ Sangmeshwar at Lat 17[o]11‟16”N, Lon 73[o]33‟03”E to confluence with Arabian Sea at Jaigad Lat 17[o]19‟12”N, Lon 73[o]12‟39”E. 92. National Waterway 92 _Silabati River:_ Barrage near Shimulia village at Lat 22[o]34‟53” N, Lon 87[o]38‟31”E to confluence of Dwarakeswar and Silai rivers at Pratappur Lat 22[o]40‟17”N, Lon 87[o]46‟43”E. 93. National Waterway 93 _Simsang River:_ Bangladesh Border at Lat 25[o]11‟05”N, Lon 90[o]39‟25”E to bridge on National Highway-62 near Nongalbibra Lat 25[o]27‟20”N, Lon 90[o]42‟22”E. 94. National Waterway 94 _Sone River:_ Sone Barrage near Dehri at Lat 24[o]50‟14” N, Lon 84[o]08‟03”E to confluence of Sone and Ganga rivers at Lat 25[o]42‟15”N, Lon 84[o]52‟02”E. 95. National Waterway 95 _Subansiri River:_ Gerukamukh Lat 27[o]27‟03” N, Lon 94[o]15‟16”E to Brahmaputra confluence at Lat 26[o]52‟25”N, Lon 93[o]54‟31”E. 96. National Waterway 96 _Subarnrekha River:_ Chandil Dam at Lat 22[o]58‟29” N, Lon 86[o]01‟14”E to confluence with Bay of Bengal at Lat 21[o]33‟29”N, Lon 87[o]22‟59”E. 97. National Waterway 97 _Sunderbans Waterways:_ (i) Namkhana at Lat 21[o]45‟46” N, Lon 88[o]13‟06”E to Athara Banki Khal Lat 21[o]56‟57”N, Lon 89[o]05‟32”E; (ii) Bidya River: Lot No. 124 at Lat 21[o]54‟43” N, Lon 88[o]41‟08”E to near Uttar Danga at Lat 22[o]11‟48”N, Lon 88[o]51‟55”E; (iii) Chhota Kalagachi(Chhoto Kalergachi) River: Near Rajani ferry ghat Lat 22[o]19‟57” N, Lon 88[o]54‟21”E to near Nazat at Lat 22[o]26‟05”N, Lon 88[o]50‟12”E; (iv) _Gomar River: Near Ramkrishnapur Lat 22[o]11‟53” N, Lon_ 88[o]44‟42”E to near Gosaba Kheya ghat at Lat 22[o]10‟05”N, Lon 88[o]47‟37”E; (v) Haribhanga River: Bangladesh Border Lat 21[o]53‟19” N, Lon 89[o]01‟24”E to confluence with Jhila river at Lat 21[o]58‟18”N, Lon 88[o]55‟08”E; (vi) _Hogla (Holgal)-Pathankhali_ _River: Near Parandar Lat_ 22[o]12‟22” N, Lon 88[o]40‟43”E to near Sandeshkhai Ferry Ghat at Lat 22[o]21‟12”N, Lon 88[o]52‟48”E; (vii) _Kalindi (Kalandi)_ _River: Bangladesh Border at Hingalganj_ Lat 22[o]28‟08” N, Lon 88[o]59‟46”E to Bangladesh Border near Khosbash at Lat 22[o]24‟41”N, Lon 88[o]58‟21”E; (viii) _Katakhali_ _River: Bangladesh Border near Barunhat Lat_ 22[o]30‟31” N, Lon 88[o]58‟25”E to Lebukhali ferry at Lat 22[o]21‟45”N, Lon 88[o]57‟30”E; 15 ----- (1) (2) (3) (ix) _Matla River: Bay of Bengal at Lat 21[o]33‟04” N, Lon_ 88[o]38‟26”E to Canning ferry ghat at Lat 22[o]18‟39”N, Lon 88[o]40‟43”E; (x) _Muri Ganga_ (Baratala) _River: Bay of Bengal near_ Bisalakshmipur Lat 21[o]37‟52” N, Lon 88[o]10‟0”E to near Kakdwip at Lat 21[o]52‟17”N, Lon 88[o]09‟08”E; (xi) _Raimangal_ _River: Hemnagar at Lat 22[o]11‟41” N, Lon_ 88[o]58‟01”E to Rajnagar at Lat 22[o]33‟57”N, Lon 88[o]56‟17”E; (xii) Sahibkhali (Sahebkhali) River: Near Ramapur Lat 22[o]17‟52” N, Lon 88[o]56‟35”E to Bangladesh Border near Khosbash at Lat 22[o]24‟41”N, Lon 88[o]58‟21”E; (xiii) _Saptamukhi River: Bay of Bengal at Henry Island Lat_ 21[o]34‟57” N, Lon 88[o]19‟08”E to near Chintamanipur at Lat 21[o]51‟14”N, Lon 88[o]18‟41”E; (xiv) Thakurran River: Bay of Bengal at Lat 21[o]33‟32” N, Lon 88[o]27‟45”E to Madhabpur at Lat 22[o]02‟52”N, Lon 88[o]33‟28”E; 98. National Waterway 98 _Sutlej River:_ Sunni Road Bridge at Lat 31[o]14‟45” N, Lon 77[o]07‟34”E to Harike Dam at Lat 31[o]08‟33”N, Lon 74[o]56‟57”E. 99. National Waterway 99 _Tamaraparani River:_ Sulochana Mudalir bridge, Tirunelveli Lat 8[o]43‟43” N, Lon 77[o]42‟54”E to confluence with Bay of Bengal near Punnaikayal at Lat 8[o]38‟25”N, Lon 78[o]07‟38”E. 100. National Waterway 100 _Tapi River:_ Hatnur Dam Near Mangalwadi Lat 21[o]04‟22”N, Lon75[o]56‟45”E to Gulf of Khambhat (Arabian Sea) at Lat 21[o]02‟16”N, Lon 72[o]39‟30”E. 101. National Waterway 101 _Tizu and Zungki Rivers:_ Longmatra at Lat 25[o]46‟12”N, Lon 94[o]44‟35”E to Avanghku at Myanmar border Lat 25[o]35‟03”N, Lon 94[o]53‟06”E and in Zungki river from bridge at Lat 25[o]48‟26”N, Lon 94[o]46‟36”E to confluence of Zungki and Tizu rivers at Lat 25[o]46‟58”N, Lon 94[o]45‟21”E. 102. National Waterway 102 _Tlwang (Dhaleswari River):_ Khamrang near National Highway-54 Lat 23[o]55‟22”N, Lon 92[o]39‟08”E to Bridge on National Highway-154 at Gharmura Lat 24[o]17‟19”N, Lon 92[o]31‟0”E. 103. National Waterway 103 _Tons River:_ Bridge on National Highway-27 near Chakghat at Lat 25[o]02‟05”N, Lon 81[o]43‟45”E to Ganga confluence at Sirsa Lat 25[o]16‟32”N, Lon 82[o]05‟0”E. 104. National Waterway 104 _Tungabhadra River:_ Bridge on State Highway No. 29 near Chikka Jantakal village at Lat 15[o]24‟33”N, Lon 76[o]35‟13”E to confluence with river Krishna near village Murva Konda at Lat 15[o]57‟20”N, Lon 78[o]14‟30”E. 16 ----- (1) (2) (3) 105. National Waterway 105 _Udayavara River:_ Arabian Sea Mouth at Malpe Lat 13[o]20‟57”N, Lon 74[o]41‟28”E to Bridge near Manipura Lat 13[o]17‟33”N, Lon 74[o]46‟26”E. 106. National Waterway 106 _Umngot (Dwaki) River:_ Bangladesh Border near Larbamon Lat 25[o]11‟07”N Lon 92[o]0‟54”E to Nongryngkoh at Lat 25[o]19‟05”N, Lon 92[o]02‟20”E. 107. National Waterway 107 _Vaigai River:_ Barrage near Anai Patti at Lat 10[o]05‟19”N, Lon 77[o]51‟10”E to Viragnoor Dam at Lat 9[o]53‟52”N, Lon 78[o]10‟34”E. 108. National Waterway 108 _Varuna River:_ Road bridge near Kuru at Lat 25[o]23‟15”N, Lon 82[o]44‟07”E to Ganga confluence at Saray Mohana, Varanasi Lat 25[o]19‟45”N, Lon 83[o]02‟41”E. 109. National Waterway 109 _Wainganga Pranahita River System:_ Bridge near Chandapur village at Lat 20[o]0‟30”N, Lon 79[o]47‟08”E to confluence of river Godavari at Kaleshwaram Lat 18[o]49‟33”N, Lon 79[o]54‟33”E. 110. National Waterway 110 _Yamuna River:_ Jagatpur (6km upstream of Wazirabad Barrage) Delhi Lat 28[o]45‟28”N, Lon 77[o]13‟50”E to confluence of Yamuna and Ganga rivers at Sangam, Allahabad at Lat 25[o]25‟24”N, Lon 81[o]53‟20”E. 111. National Waterway 111 _Zuari River:_ Sanvordem bridge Lat 15[o]16‟15”N, Lon 74[o]07‟11”E to Marmugao Port Lat 15[o]25‟55”N, Lon 73[o]48‟13”E. 17 -----

25-Mar-2016

18

The Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016.

https://www.indiacode.nic.in/bitstream/123456789/2160/5/A2016-18.pdf

central

# THE AADHAAR (TARGETED DELIVERY OF FINANCIAL AND OTHER SUBSIDIES, BENEFITS AND SERVICES) ACT, 2016 ______ ARRANGEMENT OF SECTIONS __________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II ENROLMENT 3. Aadhaar number. 3A. Aadhaar number of children. 4. Properties of Aadhaar number. 5. Special measures for issuance of Aadhaar number to certain category of persons. 6. Update of certain information. CHAPTER III AUTHENTICATION 7. Proof of Aadhaar number necessary for receipt of certain subsidies, benefits and services, etc. 8. Authentication of Aadhaar number. 8A. Offline verification of Aadhaar number. 9. Aadhaar number not evidence of citizenship or domicile, etc. 10. Central Identities Data Repository. CHAPTER IV UNIQUE IDENTIFICATION AUTHORITYOF INDIA 11. Establishment of Authority. 12. Composition of Authority. 13. Qualifications for appointment of Chairperson and Members of Authority. 14. Term of office and other conditions of service of Chairperson and Members. 15. Removal of Chairperson and Members. 16. Restrictions on Chairperson or Members on employment after cessation of office. 17. Functions of Chairperson. ----- SECTIONS 18. Chief executive officer. 19. Meetings of Authority. 20. Vacancies, etc., not to invalidate proceedings of Authority. 21. Officers and other employees of Authority. 22. Transfer of assets, liabilities of Authority. 23. Powers and functions of Authority. 23A. Power of Authority to issue directions. CHAPTER V GRANTS, ACCOUNTSAND AUDITAND ANNUAL REPORT 24. Grants by Central Government. 25. Fund. 26. Accounts and audit. 27. Returns and annual report, etc. CHAPTER VI PROTECTIONOF INFORMATION 28. Security and confidentiality of information. 29. Restriction on sharing information. 30. Biometric information deemed to be sensitive personal information. 31. Alteration of demographic information or biometric information. 32. Access to own information and records of requests for authentication. 33. Disclosure of information in certain cases. CHAPTER VIA CIVIL PENALTIES 33A. Penalty for failure to comply with provisions of this Act, rules, regulations and directions. 33B. Power to adjudicate. 33C. Appeals to Appellate Tribunal. 33D. Procedure and powers of the Appellate Tribunal 33E. Appeal to Supreme Court of India. 33F. Civil court not to have jurisdiction. ----- CHAPTER VII OFFENCESAND PENALTIES SECTIONS 34. Penalty for impersonation at time of enrolment. 35. Penalty for impersonation of Aadhaar number holder by changing demographic information or biometric information. 36. Penalty for impersonation. 37. Penalty for disclosing identity information. 38. Penalty for unauthorised access to the Central Identities Data Repository. 39. Penalty for tampering with data in Central Identities Data Repository. 40. Penalty for unauthorised use by requesting entity or offline verification-seeking entity. 41. Penalty for non-compliance with intimation requirements. 42. General penalty. 43. Offences by companies. 44. Act to apply for offence or contravention committed outside India. 45. Power to investigate offences. 46. Penalties not to interfere with other punishments. 47. Cognizance of offences. CHAPTER VIII MISCELLANEOUS 48. Power of Central Government to supersede Authority. 49. Members, officers, etc., to be public servants. 50. Power of Central Government to issue directions. 50A. Exemption from tax on income. 51. Delegation. 52. Protection of action taken in good faith. 53. Power of Central Government to make rules. 54. Power of Authority to make regulations. 55. Laying of rules and regulations before Parliament. 56. Application of other laws not barred. 57. [Omitted.]. 58. Power to remove difficulties. 59. Savings. ----- # THE AADHAAR (TARGETED DELIVERY OF FINANCIAL AND OTHER SUBSIDIES, BENEFITS AND SERVICES) ACT, 2016 ACT NO. 18 OF 2016 [25th March, 2016.] # An Act to provide for, as a good governance, efficient, transparent, and targeted delivery of subsidies, benefits and services, the expenditure for which is incurred from the Consolidated Fund of India, [1][or the Consolidated Fund of the State] to individuals residing in India through assigning of unique identity numbers to such individuals and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Sixty-seventh Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Aadhaar (Targeted** Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016. (2) It shall extend to the whole of India [2]*** and save as otherwise provided in this Act, it shall also apply to any offence or contravention thereunder committed outside India by any person. (3) It shall come into force on such date[3] as the Central Government may, by notification in the Official Gazette, appoint; and different dates may, be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the commencement of that provision. **2. Definitions.—In this Act, unless the context otherwise requires,—** 4[(a) “Aadhaar number” means an identification number issued to an individual under sub-section (3) of section 3, and includes any alternative virtual identity generated under sub-section (4) of that section;] 5[(aa) “Aadhaar ecosystem” includes enrolling agencies, Registrars, requesting entities, offline verification-seeking entities and any other entity or group of entities as may be specified by regulations;] (b) “Aadhaar number holder” means an individual who has been issued an Aadhaar number under this Act; 4[(ba) “Adjudicating Officer” means an Adjudicating Officer appointed under sub-section (1) of section 33B; (bb) “Appellate Tribunal” means the Appellate Tribunal referred to in sub-section (1) of section 33C;] (c) “authentication” means the process by which the Aadhaar number alongwith demographic information or biometric information of an individual is submitted to the Central Identities Data Repository for its verification and such Repository verifies the correctness, or the lack thereof, on the basis of information available with it; 1. Ins. by Act 14 of 2019, s. 2 (w.e.f. 25-7-2019). 2. The words “except the State of Jammu and Kashmir” omitted by Act 34 of 2019, s. 95 and the Fifth Schedule (w.e.f. 31-10- 2019). 3.12th September, 2016 **— Sections 1 to 10, 24 to 47,** _vide notification No. S.O. 2927 (E), dated 12th September, 2016_ _see_ Gazette of India Extraordinary, Part II, s. 3 (ii). 12th July, 2016— Sections 11 to 20, 22 and 23, 48 to 59, _vide notification No. S.O. 2357 (E), dated 12 the July 2016,_ _see_ Gazette of India, Extraordinary, Part II, s. 3 (ii). 25th July, 2019 **— Sections1 to 30,** _vide_ notification No. S.O. 2649 (E), dated 25th July, 2019 _see Gazette of India,_ Extraordinary, Part II, s. 3 (ii). 4. Subs. by Act 14 of 2019, s, 3, for clause (a) (w.e.f. 25-7-2019). 5. Ins. by s. 3, ibid, (w.e.f. 25-7-2019). ----- (d) “authentication record” means the record of the time of authentication and identity of the requesting entity and the response provided by the Authority thereto; (e) “Authority” means the Unique Identification Authority of India established under sub-section (1) of section 11; (f) “benefit” means any advantage, gift, reward, relief, or payment, in cash or kind, provided to an individual or a group of individuals and includes such other benefits as may be notified by the Central Government; (g) “biometric information” means photograph, finger print, Iris scan, or such other biological attributes of an individual as may be specified by regulations; (h) “Central Identities Data Repository” means a centralised database in one or more locations containing all Aadhaar numbers issued to Aadhaar number holders along with the corresponding demographic information and biometric information of such individuals and other information related thereto; (i) “Chairperson” means the Chairperson of the Authority appointed under section 12; 1[(ia) “child” means a person who has not completed eighteen years of age;] (j) “core biometric information” means finger print, Iris scan, or such other biological attribute of an individual as may be specified by regulations; (k) “demographic information” includes information relating to the name, date of birth, address and other relevant information of an individual, as may be specified by regulations for the purpose of issuing an Aadhaar number, but shall not include race, religion, caste, tribe, ethnicity, language, records of entitlement, income or medical history; (l) “enrolling agency” means an agency appointed by the Authority or a Registrar, as the case may be, for collecting demographic and biometric information of individuals under this Act; (m) “enrolment” means the process, as may be specified by regulations, to collect demographic and biometric information from individuals by the enrolling agencies for the purpose of issuing Aadhaar numbers to such individuals under this Act; (n) “identity information” in respect of an individual, includes his Aadhaar number, his biometric information and his demographic information; (o) “Member” includes the Chairperson and Member of the Authority appointed under section 12; (p) “notification” means a notification published in the Official Gazette and the expression “notified” with its cognate meanings and grammatical variations shall be construed accordingly; 1 [(pa) “offline verification” means the process of verifying the identity of the Aadhaar number holder without authentication, through such offline modes as may be specified by regulations; (pb) “offline verification-seeking entity” means any entity desirous of undertaking offline verification of an Aadhaar number holder;] (q) “prescribed” means prescribed by rules made by the Central Government under this Act; (r) “records of entitlement” means records of benefits, subsidies or services provided to, or availed by, any individual under any programme; (s) “Registrar” means any entity authorised or recognised by the Authority for the purpose of enrolling individuals under this Act; (t) “regulations” means the regulations made by the Authority under this Act; 1. Ins. by Act 14 of 2019, s. 3 (w.e.f. 25-7-2019). ----- (u) “requesting entity” means an agency or person that submits the Aadhaar number, and demographic information or biometric information, of an individual to the Central Identities Data Repository for authentication; (v) “resident” means an individual who has resided in India for a period or periods amounting in all to one hundred and eighty-two days or more in the twelve months immediately preceding the date of application for enrolment; (w) “service” means any provision, facility, utility or any other assistance provided in any form to an individual or a group of individuals and includes such other services as may be notified by the Central Government; (x) “subsidy” means any form of aid, support, grant, subvention, or appropriation, in cash or kind, to an individual or a group of individuals and includes such other subsidies as may be notified by the Central Government. CHAPTER II ENROLMENT **3. Aadhaar number.—(1) Every resident shall be entitled to obtain an Aadhaar number by** submitting his demographic information and biometric information by undergoing the process of enrolment: Provided that the Central Government may, from time to time, notify such other category of individuals who may be entitled to obtain an Aadhaar number. (2) The enrolling agency shall, at the time of enrolment, inform the individual undergoing enrolment of the following details in such manner as may be specified by regulations, namely:— (a) the manner in which the information shall be used; (b) the nature of recipients with whom the information is intended to be shared during authentication; and (c) the existence of a right to access information, the procedure for making requests for such access, and details of the person or department in-charge to whom such requests can be made. (3) On receipt of the demographic information and biometric information under sub-section (1), the Authority shall, after verifying the information, in such manner as may be specified by regulations, issue an Aadhaar number to such individual. 1[(4) The Aadhaar number issued to an individual under sub-section (3) shall be a twelve-digit identification number and any alternative virtual identity as an alternative to the actual Aadhaar number of an individual that shall be generated by the Authority in such manner as may be specified by regulations.] **2[3A. Aadhaar number of children.—(1) The enrolling agency shall, at the time of enrolment of a** child, seek the consent of the parent or guardian of the child, and inform the parent or guardian, the details specified under sub-section (2) of section 3. (2) A child who is an Aadhaar number holder may, within a period of six months of attaining the eighteen years of age, make an application to the Authority for cancellation of his Aadhaar number, in such manner as may be specified by regulations and the Authority shall cancel his Aadhaar number. (3) Notwithstanding anything in section 7, a child shall not be denied any subsidy, benefit or service under that section in case of failure to establish his identity by undergoing authentication, or furnishing 1. Ins. by Act 14 of 2019, s. 4 (w.e.f. 25-7-2019). 2. Ins. by s. 5, ibid, (w.e.f. 25-7-2019). ----- proof of possession of Aadhaar number, or in the case of a child to whom no Aadhaar number has been assigned, producing an application for enrolment.] **4. Properties of Aadhaar number.—(1) An Aadhaar number, issued to an individual shall not be re-** assigned to any other individual. (2) An Aadhaar number shall be a random number and bear no relation to the attributes or identity of the Aadhaar number holder. 1[(3) Every Aadhaar number holder to establish his identity, may voluntarily use his Aadhaar number in physical or electronic form by way of authentication or offline verification, or in such other form as may be notified, in such manner as may be specified by regulations. _Explanation.— For the purposes of this section, voluntary use of the Aadhaar number by way of_ authentication means the use of such Aadhaar number only with the informed consent of the Aadhaar number holder. (4) An entity may be allowed to perform authentication, if the Authority is satisfied that the requesting entity is— (a) compliant with such standards of privacy and security as may be specified by regulations; and (b) (i) permitted to offer authentication services under the provisions of any other law made by Parliament; or (ii) seeking authentication for such purpose, as the Central Government in consultation with the Authority, and in the interest of State, may prescribe. (5) The Authority may, by regulations, decide whether a requesting entity shall be permitted the use of the actual Aadhaar number during authentication or only an alternative virtual identity. (6) Every requesting entity to whom an authentication request is made by an Aadhaar number holder under sub-section (3) shall inform to the Aadhaar number holder of alternate and viable means of identification and shall not deny any service to him for refusing to, or being unable to, undergo authentication. (7) Notwithstanding anything contained in the foregoing provisions, mandatory authentication of an Aadhaar number holder for the provision of any service shall take place if such authentication is required by a law made by Parliament.] **5. Special measures for issuance of Aadhaar number to certain category of persons.—The** Authority shall take special measures to issue Aadhaar number to women, children, senior citizens, persons with disability, unskilled and unorganised workers, nomadic tribes or to such other persons who do not have any permanent dwelling house and such other categories of individuals as may be specified by regulations. **6. Update of certain information.—The Authority may require Aadhaar number holders to update** their demographic information and biometric information, from time to time, in such manner as may be specified by regulations, so as to ensure continued accuracy of their information in the Central Identities Data Repository. 1. Subs. by Act 14 of 2019, s. 6, for Sub-section (3) (w.e.f. 25-7-2019). ----- CHAPTER III AUTHENTICATION **7. Proof of Aadhaar number necessary for receipt of certain subsidies, benefits and services,** **etc.—The Central Government or, as the case may be, the State Government may, for the purpose of** establishing identity of an individual as a condition for receipt of a subsidy, benefit or service for which the expenditure is incurred from, or the receipt therefrom forms part of, the Consolidated Fund of India, 1[or the Consolidated Fund of State] require that such individual undergo authentication, or furnish proof of possession of Aadhaar number or in the case of an individual to whom no Aadhaar number has been assigned, such individual makes an application for enrolment: Provided that if an Aadhaar number is not assigned to an individual, the individual shall be offered alternate and viable means of identification for delivery of the subsidy, benefit or service. **8. Authentication of Aadhaar number.—(1) The Authority shall perform authentication of the** Aadhaar number of an Aadhaar number holder submitted by any requesting entity, in relation to his biometric information or demographic information, subject to such conditions and on payment of such fees and in such manner as may be specified by regulations. (2) A requesting entity shall— (a) unless otherwise provided in this Act, obtain the consent of an individual [2][or in the case of a child obtain the consent of his parent or guardian] before collecting his identity information for the purposes of authentication in such manner as may be specified by regulations; and (b) ensure that the identity information of an individual is only used for submission to the Central Identities Data Repository for authentication. 2[Provided that the requesting entity shall, in case of failure to authenticate due to illness, injury or infirmity owing to old age or otherwise or any technical or other reasons, provide such alternate and viable means of identification of the individual, as may be specified by regulations.] (3) A requesting entity shall inform, in such manner as may be specified by regulations, the individual submitting his identity information for authentication [2][or in the case of a child, his parent or guardian], the following details with respect to authentication, namely:— (a) the nature of information that may be shared upon authentication; (b) the uses to which the information received during authentication may be put by the requesting entity; and (c) alternatives to submission of identity information to the requesting entity. (4) The Authority shall respond to an authentication query with a positive, negative or any other appropriate response sharing such identity information excluding any core biometric information. 3 [8A. Offline verification of Aadhaar number.—(1) Every offline verification of an Aadhaar number holder shall be performed in accordance with the provisions of this section. (2) Every offline verification-seeking entity shall, — (a) before performing offline verification, obtain the consent of an individual, or in the case of a child, his parent or guardian, in such manner as may be specified by regulations; and 1. Ins. by Act 14 of 2019, s. 7 (w.e.f. 25-7-2019). 2. Ins. by s. 8, ibid, (w.e.f. 25-7-2019). 3. Ins. by s. 9, ibid, (w.e.f. 25-7-2019). ----- (b) ensure that the demographic information or any other information collected from the individual for offline verification is only used for the purpose of such verification. (3) An offline verification-seeking entity shall inform the individual undergoing offline verification, or in the case of a child, his parent or guardian, the following details with respect to offline verification, in such manner as may be specified by regulations, namely:— (a) the nature of information that may be shared upon offline verification; (b) the uses to which the information received during offline verification may be put by the offline verification-seeking entity; and (c) alternatives to submission of information requested for, if any. (4) No offline verification-seeking entity shall— (a) subject an Aadhaar number holder to authentication; (b) collect, use, or store an Aadhaar number or biometric information of any individual for any purpose; (c) take any action contrary to any obligation on it as may be specified by regulations.] **9. Aadhaar number not evidence of citizenship or domicile, etc.—The Aadhaar number or the** authentication thereof shall not, by itself, confer any right of, or be proof of, citizenship or domicile in respect of an Aadhaar number holder. **10. Central Identities Data Repository.—The Authority may engage one or more entities to** establish and maintain the Central Identities Data Repository and to perform any other functions as may be specified by regulations. CHAPTER IV UNIQUE IDENTIFICATION AUTHORITYOF INIDA **11. Establishment of Authority.—(1) The Central Government shall, by notification, establish an** Authority to be known as the Unique Identification Authority of India to be responsible for the processes of enrolment and authentication and perform such other functions assigned to it under this Act. (2) The Authority shall be a body corporate by the name aforesaid, having perpetual succession and a common seal, with power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to contract, and shall, by the said name, sue or be sued. (3) The head office of the Authority shall be in New Delhi. (4) The Authority may, with the prior approval of the Central Government, establish its offices at other places in India. **12. Composition of Authority.—The Authority shall consist of a Chairperson, appointed on part-** time or full-time basis, two part-time Members, and the chief executive officer who shall be MemberSecretary of the Authority, to be appointed by the Central Government. **13.Qualifications for appointment of Chairperson and Members of Authority.—The Chairperson** and Members of the Authority shall be persons of ability and integrity having experience and knowledge of at least ten years in matters relating to technology, governance, law, development, economics, finance, management, public affairs or administration. **14. Term of office and other conditions of service of Chairperson and Members.—(1) The** Chairperson and the Members appointed under this Act shall hold office for a term of three years from the date on which they assume office and shall be eligible for re-appointment: ----- Provided that no person shall hold office as the Chairperson or Member after he has attained the age of sixty-five years. (2) The Chairperson and every Member shall, before entering office, make and subscribe to, an oath of office and of secrecy, in such form and in such manner and before such Authority as may be prescribed. (3) Notwithstanding anything contained in sub-section (1), the Chairperson or Member may— (a) relinquish his office, by giving in writing to the Central Government, a notice of not less than thirty days; or (b) be removed from his office in accordance with the provisions of section 15. (4) The salaries and allowances payable to, and the other terms and conditions of service of, the Chairperson and allowances or remuneration payable to part-time Members shall be such as may be prescribed. **15. Removal of Chairperson and Members.—(1) The Central Government may remove from** office, the Chairperson, or a Member, who— (a) is, or at any time has been adjudged as insolvent; (b) has become physically or mentally incapable of acting as the Chairperson or, as the case may be, a Member; (c) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; (d) has acquired such financial or other interest as is likely to affect prejudicially his functions as the Chairperson or, as the case may be, a Member; or (e) has, in the opinion of the Central Government, so abused his position as to render his continuance in office detrimental to the public interest. (2) The Chairperson or a Member shall not be removed under clause (b), clause (d) or clause (e) of sub-section (1) unless he has been given a reasonable opportunity of being heard. **16. Restrictions on Chairperson or Members on employment after cessation of office.—The** Chairperson or a Member on ceasing to hold office for any reason, shall not, without previous approval of the Central Government,— (a) accept any employment in, or be connected with the management of any organisation, company or any other entity which has been associated with any work done or contracted out by the Authority, whether directly or indirectly, during his tenure as Chairperson or Member, as the case may be, for a period of three years from the date on which he ceases to hold office: Provided that nothing contained in this clause shall apply to any employment under the Central Government or a State Government or local authority or in any statutory authority or any corporation established by or under any Central, State or provincial Act or a Government Company, as defined in [clause (45) of section 2 of the Companies Act, 2013 (18 of 2013);](javascript:fnOpenLinkPopUp('12340','377078');) (b) act, for or on behalf of any person or organisation in connection with any specific proceeding or transaction or negotiation or a case to which the Authority is a party and with respect to which the Chairperson or such Member had, before cessation of office, acted for or provided advice to, the Authority; (c) give advice to any person using information which was obtained in his capacity as the Chairperson or a Member and being unavailable to or not being able to be made available to the public; or (d) enter, for a period of three years from his last day in office, into a contract of service with, accept an appointment to a board of directors of, or accept an offer of employment with, an entity with which he had direct and significant official dealings during his term of office. ----- **17. Functions of Chairperson.—The Chairperson shall preside over the meetings of the Authority,** and without prejudice to any provision of this Act, exercise and discharge such other powers and functions of the Authority as may be prescribed. **18. Chief executive officer.—(1) There shall be a chief executive officer of the Authority, not below** the rank of Additional Secretary to the Government of India, to be appointed by the Central Government. (2) The chief executive officer shall be the legal representative of the Authority and shall be responsible for— (a) the day-to-day administration of the Authority; (b) implementing the work programmes and decisions adopted by the Authority; (c) drawing up of proposal for the Authority's decisions and work programmes; (d) the preparation of the statement of revenue and expenditure and the execution of the budget of the Authority; and (e) performing such other functions, or exercising such other powers, as may be specified by regulations. (3) Every year, the chief executive officer shall submit to the Authority for approval— (a) a general report covering all the activities of the Authority in the previous year; (b) programmes of work; (c) the annual accounts for the previous year; and (d) the budget for the coming year. (4) The chief executive officer shall have administrative control over the officers and other employees of the Authority. **19. Meetings of Authority.—(1) The Authority shall meet at such times and places and shall observe** such rules of procedure in regard to the transaction of business at its meetings, including quorum at such meetings, as may be specified by regulations. (2) The Chairperson, or, if for any reason, he is unable to attend a meeting of the Authority, the senior most Member shall preside over the meetings of the Authority. (3) All questions which come up before any meeting of the Authority shall be decided by a majority of votes by the Members present and voting and in the event of anequality of votes, the Chairperson or in his absence the presiding Member shall have a casting vote. (4) All decisions of the Authority shall be signed by the Chairperson or any other Member or the Member-Secretary authorised by the Authority in this behalf. (5) If any Member, who is a director of a company and who as such director, has any direct or indirect pecuniary interest in any manner coming up for consideration at a meeting of the Authority, he shall, as soon as possible after relevant circumstances have come to his knowledge, disclose the nature of his interest at such meeting and such disclosure shall be recorded in the proceedings of the Authority, and the Member shall not take part in any deliberation or decision of the Authority with respect to that matter. **20. Vacancies, etc., not to invalidate proceedings of Authority.—No act or proceeding of the** Authority shall be invalid merely by reason of— (a) any vacancy in, or any defect in the constitution of, the Authority; (b) any defect in the appointment of a person as Chairperson or Member of the Authority; or (c) any irregularity in the procedure of the Authority not affecting the merits of the case. ----- 1[21. Officers and other employees of Authority.—(1) The Authority shall appoint such officers and employees as may be required for the discharge of its functions under this Act. (2) The salaries and allowances payable to, and the other terms and conditions of service of, the officers and employees of the Authority shall be such as may be specified by regulations.] **22. Transfer of assets, liabilities of Authority.—On and from the establishment of the Authority—** (a) all the assets and liabilities of the Unique Identification Authority of India, established _vide_ notification of the Government of India in the Planning Commission number A-43011/02/2009Admin. I, dated the 28th January, 2009, shall stand transferred to, and vested in, the Authority. _Explanation.—The assets of such Unique Identification Authority of India shall be deemed to include_ all rights and powers, and all properties, whether movable or immovable, including, in particular, cash balances, deposits and all other interests and rights in, or arising out of, such properties as may be in the possession of such Unique Identification Authority of India and all books of account and other documents relating to the same; and liabilities shall be deemed to include all debts, liabilities and obligations of whatever kind; (b) without prejudice to the provisions of clause (a), all data and information collected during enrolment, all details of authentication performed, debts, obligations and liabilities incurred, all contracts entered into and all matters and things engaged to be done by, with or for such Unique Identification Authority of India immediately before that day, for or in connection with the purpose of the said Unique Identification Authority of India, shall be deemed to have been incurred, entered into or engaged to be done by, with or for, the Authority; (c) all sums of money due to the said Unique Identification Authority of India immediately before that day shall be deemed to be due to the Authority; and (d) all suits and other legal proceedings instituted or which could have been instituted by or against such Unique Identification Authority of India immediately before that day may be continued or may be instituted by or against the Authority. **23. Powers and functions of Authority.—(1) The Authority shall develop the policy, procedure and** systems for issuing Aadhaar numbers to individuals and perform authentication thereof under this Act. (2) Without prejudice to sub-section (1), the powers and functions of the Authority, _inter alia,_ include— (a) specifying, by regulations, demographic information and biometric information required for enrolment and the processes for collection and verification thereof; (b) collecting demographic information and biometric information from any individual seeking an Aadhaar number in such manner as may be specified by regulations; (c) appointing of one or more entities to operate the Central Identities Data Repository; (d) generating and assigning Aadhaar numbers to individuals; (e) performing authentication of Aadhaar numbers; (f) maintaining and updating the information of individuals in the Central Identities Data Repository in such manner as may be specified by regulations; (g) omitting and deactivating of an Aadhaar number and information relating thereto in such manner as may be specified by regulations; (h) specifying the manner of use of Aadhaar numbers for the purposes of providing or availing of various subsidies, benefits, services and other purposes for which Aadhaar numbers may be used; 1. Subs. by Act 14 of 2019, s. 10, for section 21 (w.e.f. 25-7-2019). ----- (i) specifying, by regulations, the terms and conditions for appointment of Registrars, enrolling agencies and service providers and revocation of appointments thereof; (j) establishing, operating and maintaining of the Central Identities Data Repository; (k) sharing, in such manner as may be specified by regulations, the information of Aadhaar number holders, subject to the provisions of this Act; (l) calling for information and records, conducting inspections, inquiries and audit of the operations for the purposes of this Act of the Central Identities Data Repository, Registrars, enrolling agencies and other agencies appointed under this Act; (m) specifying, by regulations, various processes relating to data management, security protocols and other technology safeguards under this Act; (n) specifying, by regulations, the conditions and procedures for issuance of new Aadhaar number to existing Aadhaar number holder; (o) levying and collecting the fees or authorising the Registrars, enrolling agencies or other service providers to collect such fees for the services provided by them under this Act in such manner as may be specified by regulations; (p) appointing such committees as may be necessary to assist the Authority in discharge of its functions for the purposes of this Act; (q) promoting research and development for advancement in biometrics and related areas, including usage of Aadhaar numbers through appropriate mechanisms; (r) evolving of, and specifying, by regulations, policies and practices for Registrars, enrolling agencies and other service providers; (s) setting up facilitation centres and grievance redressal mechanism for redressal of grievances of individuals, Registrars, enrolling agencies and other service providers; (t) such other powers and functions as may be prescribed. (3) The Authority may,— (a) enter into Memorandum of Understanding or agreement, as the case may be, with the Central Government or State Governments or Union territories or other agencies for the purpose of performing any of the functions in relation to collecting, storing, securing or processing of information or delivery of Aadhaar numbers to individuals or performing authentication; (b) by notification, appoint such number of Registrars, engage and authorise such agencies to collect, store, secure, process information or do authentication or perform such other functions in relation thereto, as may be necessary for the purposes of this Act. (4) The Authority may engage such consultants, advisors and other persons as may be required for efficient discharge of its functions under this Act on such allowances or remuneration and terms and conditions as may be specified by contract. 1[23A. Power of Authority to issue directions.—(1) The Authority may for the discharge of its functions under this Act, or any rules or regulations made there under, by order, issue such directions from time to time to any entity in the Aadhaar ecosystem, as it may consider necessary. (2) Every direction issued under sub-section (1) shall be complied with by the entity in the Aadhaar ecosystem to whom such direction is issued.] 1. Ins. by Act 14 of 2019, s. 11 (w.e.f. 25-7-2019). ----- CHAPTER V GRANTS, ACCOUNTS AND AUDIT AND ANNUAL REPORT **24. Grants by Central Government.—The Central Government may, after due appropriation made** by Parliament by law in this behalf, make to the Authority, grants of such sums of money as the Central Government may think fit for being utilised for the purposes of this Act. **1[25. Fund.—(1) There shall be constituted a Fund to be called the Unique Identification Authority of** India Fund and there shall be credited thereto— (a) all grants, fees and charges received by the Authority under this Act; and (b) all sums received by the Authority from such other sources as may be decided upon by the Central Government. (2) The Fund shall be applied for meeting— (a) the salaries and allowances payable to the Chairperson and members and administrative expenses including the salaries, allowances and pension payable to or in respect of officers and other employees of the Authority; and (b) the expenses on objects and for purposes authorised by this Act.] **26. Accounts and audit.—(1) The Authority shall maintain proper accounts and other relevant** records and prepare an annual statement of accounts in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India. (2) The accounts of the Authority shall be audited annually by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Authority to the Comptroller and Auditor-General. (3) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit the accounts of the Authority under this Act shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General generally has in connection with the audit of Government accounts, and in particular, shall have the right to demand production of books, accounts, connected vouchers and other documents and papers, and to inspect any of the offices of the Authority. (4) The accounts of the Authority, as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf, together with the audit report thereon shall be forwarded annually to the Central Government by the Authority and the Central Government shall cause the audit report to be laid, as soon as may be after it is received, before each House of Parliament. **27. Returns and annual report, etc.—(1) The Authority shall furnish to the Central Government at** such time and in such form and manner as may be prescribed or as the Central Government may direct, such returns and statements and particulars in regard to any matter under the jurisdiction of the Authority, as the Central Government may from time to time require. (2) The Authority shall prepare, once in every year, and in such form and manner and at such time as may be prescribed, an annual report giving— (a) a description of all the activities of the Authority for the previous years; (b) the annual accounts for the previous year; and (c) the programmes of work for coming year. (3) A copy of the report received under sub-section (2) shall be laid by the Central Government, as soon as may be after it is received, before each House of Parliament. 1. Subs. by Act 14 of 2019, s. 12, for section 25 (w.e.f. 25-7-2019). ----- CHAPTER VI PROTECTIONOF INFORMATION **28. Security and confidentiality of information.—(1) The Authority shall ensure the security of** identity information and authentication records of individuals. (2) Subject to the provisions of this Act, the Authority shall ensure confidentiality of identity information and authentication records of individuals. (3) The Authority shall take all necessary measures to ensure that the information in the possession or control of the Authority, including information stored in the Central Identities Data Repository, is secured and protected against access, use or disclosure not permitted under this Act or regulations made thereunder, and against accidental or intentional destruction, loss or damage. (4) Without prejudice to sub-sections (1) and (2), the Authority shall— (a) adopt and implement appropriate technical and organisational security measures; (b) ensure that the agencies, consultants, advisors or other persons appointed or engaged for performing any function of the Authority under this Act, have in place appropriate technical and organisational security measures for the information; and (c) ensure that the agreements or arrangements entered into with such agencies, consultants, advisors or other persons, impose obligations equivalent to those imposed on the Authority under this Act, and require such agencies, consultants, advisors and other persons to act only on instructions from the Authority. (5) Notwithstanding anything contained in any other law for the time being in force, and save as otherwise provided in this Act, the Authority or any of its officers or other employees or any agency that maintains the Central Identities Data Repository shall not, whether during his service or thereafter, reveal any information stored in the Central Identities Data Repository or authentication record to anyone: Provided that an Aadhaar number holder may request the Authority to provide access to his identity information excluding his core biometric information in such manner as may be specified by regulations. **29. Restriction on sharing information.—(1) No core biometric information, collected or created** under this Act, shall be— (a) shared with anyone for any reason whatsoever; or (b) used for any purpose other than generation of Aadhaar numbers and authentication under this Act. (2) The identity information, other than core biometric information, collected or created under this Act may be shared only in accordance with the provisions of this Act and in such manner as may be specified by regulations. 1[(3) No identity information available with a requesting entity or offline verification-seeking entity shall be— (a) used for any purpose, other than the purposes informed in writing to the individual at the time of submitting any information for authentication or offline verification; or (b) disclosed for any purpose, other than purposes informed in writing to the individual at the time of submitting any information for authentication or offline verification: Provided that the purposes under clauses (a) and (b) shall be in clear and precise language understandable to the individual.] 1. Subs. by Act 14 of 2019, s. 13, for sub-section (3) (w.e.f. 25-7-2019). ----- (4) No Aadhaar number [1][, demographic information or photograph] collected or created under this Act in respect of an Aadhaar number holder shall be published, displayed or posted publicly, except for the purposes as may be specified by regulations. **30. Biometric information deemed to be sensitive personal information.—The biometric** information collected and stored in electronic form, in accordance with this Act and regulations made thereunder, shall be deemed to be “electronic record” and “sensitive personal data or information”, and the provisions contained in the Information Technology Act, 2000 (21 of 2000) and the rules made thereunder shall apply to such information, in addition to, and to the extent not in derogation of the provisions of this Act. _Explanation.— For the purposes of this section, the expressions—_ (a) “electronic form” shall have the same meaning as assigned to it in clause (r) of sub-section (1) [of section 2 of the Information Technology Act, 2000 (21 of 2000);](javascript:fnOpenLinkPopUp('816','23483');) (b) “electronic record” shall have the same meaning as assigned to it in clause (t) of sub-section [(1) of section 2 of the Information Technology Act, 2000 (21 of 2000);](javascript:fnOpenLinkPopUp('816','23483');) (c) “sensitive personal data or information” shall have the same meaning as assigned to it in [clause (iii) of the Explanation to section 43A of the Information Technology Act, 2000 (21 of 2000).](javascript:fnOpenLinkPopUp('816','108383');) **31. Alteration of demographic information or biometric information.—(1) In case any** demographic information of an Aadhaar number holder is found incorrect or changes subsequently, the Aadhaar number holder shall request the Authority to alter such demographic information in his record in the Central Identities Data Repository in such manner as may be specified by regulations. (2) In case any biometric information of Aadhaar number holder is lost or changes subsequently for any reason, the Aadhaar number holder shall request the Authority to make necessary alteration in his record in the Central Identities Data Repository in such manner as may be specified by regulations. (3) On receipt of any request under sub-section (1) or sub-section (2), the Authority may, if it is satisfied, make such alteration as may be required in the record relating to such Aadhaar number holder and intimate such alteration to the concerned Aadhaar number holder. (4) No identity information in the Central Identities Data Repository shall be altered except in the manner provided in this Act or regulations made in this behalf. **32. Access to own information and records of requests for authentication.—(1) The Authority** shall maintain authentication records in such manner and for such period as may be specified by regulations. (2) Every Aadhaar number holder shall be entitled to obtain his authentication record in such manner as may be specified by regulations. (3) The Authority shall not, either by itself or through any entity under its control, collect, keep or maintain any information about the purpose of authentication. **33. Disclosure of information in certain cases.—(1) Nothing contained in sub-section (2) or** sub-section (5) of section 28 or sub-section (2) of section 29 shall apply in respect of any disclosure of information, including identity information or authentication records, made pursuant to an order of a court not inferior to that of a [2][Judge of a High Court]: Provided that no order by the court under this sub-section shall be made without giving an opportunity of hearing to the Authority [3][and the concerned Aadhaar number holder]. 3[Provided further that the core biometric information shall not be disclosed under this sub-section.] (2) Nothing contained in sub-section (2) or sub-section (5) of section 28 and clause (b) of sub-section (1), sub-section (2) or sub-section (3) of section 29 shall apply in respect of any disclosure of information, including identity information or authentication records, made in the interest of national security in 1. Subs. by Act 14 of 2019, s. 13, for “or core biometric information” (w.e.f. 25-7-2019). 2. Subs. by s. 14, ibid., for “District Judge” (w.e.f. 25-7-2019). 3. Ins. by s. 14, ibid, (w.e.f. 25-7-2019). ----- pursuance of a direction of an officer not below the rank of [1][Secretary] to the Government of India specially authorised in this behalf by an order of the Central Government: Provided that every direction issued under this sub-section, shall be reviewed by an Oversight Committee consisting of the Cabinet Secretary and the Secretaries to the Government of India in the Department of Legal Affairs and the Department of Electronics and Information Technology, before it takes effect: Provided further that any direction issued under this sub-section shall be valid for a period of three months from the date of its issue, which may be extended for a further period of three months after the review by the Oversight Committee. **2[CHAPTER VIA** CIVIL PENALTIES **33A. Penalty for failure to comply with provisions of this Act, rules, regulations and** **directions.—(1) Where an entity in the Aadhaar ecosystem fails to comply with the provision of this Act,** the rules or regulations made there under or directions issued by the Authority under section 23A, or fails to furnish any information, document, or return of report required by the Authority, such entity shall be liable to a civil penalty which may extend to one crore rupees for each contravention and in case of a continuing failure, with additional penalty which may extend to ten lakh rupees for every day during which the failure continues after the first contravention. (2) The amount of any penalty imposed under this section, if not paid, may be recovered as if it were an arrear of land revenue. **33B. Power to adjudicate.—(1) For the purposes of adjudication under section 33A and imposing a** penalty there under, the Authority shall appoint an officer of the Authority, who is not below the rank of a Joint Secretary to the Government of India and possessing such qualification and experience as may be prescribed, to be an Adjudicating Officer for holding an inquiry in such manner as may be prescribed. (2) No inquiry under sub-section (1) shall be initiated except by a complaint made by the Authority. (3) While holding an inquiry, the Adjudicating Officer shall— (a) provide the entity in the Aadhaar ecosystem against whom complaint is made, an opportunity of being heard; (b) have the power to summon and enforce the attendance of any person acquainted with the facts and circumstances of the case to give evidence or to produce any document which, in the opinion of the Adjudicating Officer, may be useful for or relevant to the subject matter of the inquiry. (4) If the Adjudicating Officer, on such inquiry, is satisfied that the entity in the Aadhaar ecosystem has failed to comply with any provision of this Act or the rules or regulations made there under or directions issued by the Authority under section 23A, or has failed to furnish any information, document, or return of report required by the Authority, the Adjudicating Officer may, by order, impose such penalty under section 33A as he thinks fit. 1. Subs. by Act 14 of 2019, s. 14, for “Joint Secretary” (w.e.f. 25-7-2019). 2. Ins. by s. 15, ibid, (w.e.f. 25-7-2019). ----- **33C. Appeals to Appellate Tribunal.—(1) The Telecom Disputes Settlement and Appellate Tribunal** established under section 14 of the Telecom Regulatory Authority of India Act, 1997 (24 of 1997), shall be Appellate Tribunal for the purposes of hearing appeals against the decision of the Adjudicating Officer under this Act. (2) A person or entity in the Aadhaar ecosystem aggrieved by an order of the Adjudicating Officer under section 33B, may prefer an appeal to the Appellate Tribunal within a period of forty-five days from the date of receipt of the order appealed against, in such form and manner and accompanied with such fee as may be prescribed: Provided that the Appellate Tribunal may entertain an appeal after the expiry of the said period of forty-five days if it is satisfied that there was sufficient cause for not filing it within that period. (3) On receipt of an appeal under sub-section (2), the Appellate Tribunal may, after giving the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or setting aside the order appealed against. (4) The Appellate Tribunal shall send a copy of every order made by it to the parties to the appeal and to the Adjudicating Officer. (5) Any appeal filed under sub-section (2) shall be dealt with by the Appellate Tribunal as expeditiously as possible and every endeavour shall be made by it to dispose of the appeal within six months from the date on which it is presented to it. (6) The Appellate Tribunal may, for the purpose of deciding an appeal before it, call for the records relevant to disposing of such appeal and make such orders as it thinks fit. **33D. Procedure and powers of the Appellate Tribunal.—The provisions of sections 14-I to 14K** (both inclusive), 16 and 17 of the Telecom Regulatory Authority of India Act, 1997 (24 of 1997) shall, mutatis mutandis, apply to the Appellate Tribunal in the discharge of its functions under this Act, as they apply to it in the discharge of its functions under that Act. **33E. Appeal to Supreme Court of India.—(1) Notwithstanding anything contained in the Code of** Civil Procedure, 1908 (5 of 1908) or in any other law for the time being in force, an appeal shall lie against any order, not being an interlocutory order, of the Appellate Tribunal to the Supreme Court on any substantial question of law arising out of such order. (2) No appeal shall lie against any decision or order made by the Appellate Tribunal which the parties have consented to. (3) Every appeal under this section shall be preferred within a period of forty-five days from the date of the decision or order appealed against: Provided that the Supreme Court may entertain an appeal after the expiry of the said period of forty-five days if it is satisfied that there was sufficient cause for not filing it within that period. **33F. Civil court not to have jurisdiction.—No civil court shall have jurisdiction to entertain any suit** or proceeding in respect of any matter which an Adjudicating Officer appointed under this Act or the Appellate Tribunal is empowered, by or under this Act to determine, and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act.] ----- CHAPTER VII OFFENCESAND PENALTIES **34. Penalty for impersonation at time of enrolment.—Whoever impersonates or attempts to** impersonate another person, whether dead or alive, real or imaginary, by providing any false demographic information or biometric information, shall be punishable with imprisonment for a term which may extend to three years or with a fine which may extend to ten thousand rupees or with both. **35. Penalty for impersonation of Aadhaar number holder by changing demographic** **information or biometric information.—Whoever, with the intention of causing harm or mischief to an** Aadhaar number holder, or with the intention of appropriating the identity of an Aadhaar number holder changes or attempts to change any demographic information or biometric information of an Aadhaar number holder by impersonating or attempting to impersonate another person, dead or alive, real or imaginary, shall be punishable with imprisonment for a term which may extend to three years and shall also be liable to a fine which may extend to ten thousand rupees. **36. Penalty for impersonation.—Whoever, not being authorised to collect identity information** under the provisions of this Act, by words, conduct or demeanour pretends that he is authorised to do so, shall be punishable with imprisonment for a term which may extend to three years or with a fine which may extend to ten thousand rupees or, in the case of a company, with a fine which may extend to one lakh rupees or with both. **37. Penalty for disclosing identity information.—** Whoever, intentionally discloses, transmits, copies or otherwise disseminates any identity information collected in the course of enrolment or authentication to any person not authorised under this Act or regulations made thereunder or in contravention of any agreement or arrangement entered into pursuant to the provisions of this Act, shall be punishable with imprisonment for a term which may extend to three years or with a fine which may extend to ten thousand rupees or, in the case of a company, with a fine which may extend to one lakh rupees or with both. **38. Penalty for unauthorised access to the Central Identities Data Repository.—Whoever, not** being authorised by the Authority, intentionally,— (a) accesses or secures access to the Central Identities Data Repository; (b) downloads, copies or extracts any data from the Central Identities Data Repository or stored in any removable storage medium; (c) introduces or causes to be introduced any virus or other computer contaminant in the Central Identities Data Repository; (d) damages or causes to be damaged the data in the Central Identities Data Repository; (e) disrupts or causes disruption of the access to the Central Identities Data Repository; (f) denies or causes a denial of access to any person who is authorised to access the Central Identities Data Repository; (g) reveals any information in contravention of sub-section (5) of section 28, or shares, uses or displays information in contravention of section 29 or assists any person in any of the aforementioned acts; (h) destroys, deletes or alters any information stored in any removable storage media or in the Central Identities Data Repository or diminishes its value or utility or affects it injuriously by any means; or (i) steals, conceals, destroys or alters or causes any person to steal, conceal, destroy or alter any computer source code used by the Authority with an intention to cause damage, ----- shall be punishable with imprisonment for a term which may extend to [1][ten years] and shall also be liable to a fine which shall not be less than ten lakh rupees. _Explanation.— For the purposes of this section, the expressions “computer contaminant”,_ “computer virus” and “damage” shall have the meanings respectively assigned to them in the _[Explanation to section 43 of the Information Technology Act, 2000 (21 of 2000), and the expression](javascript:fnOpenLinkPopUp('816','23532');)_ [“computer source code” shall have the meaning assigned to it in the Explanation to section 65 of the](javascript:fnOpenLinkPopUp('816','23556');) said Act. **39. Penalty for tampering with data in Central Identities Data Repository.—Whoever, not being** authorised by the Authority, uses or tampers with the data in the Central Identities Data Repository or in any removable storage medium with the intent of modifying information relating to Aadhaar number holder or discovering any information thereof, shall be punishable with imprisonment for a term which may extend to [2][ten years] and shall also be liable to a fine which may extend to ten thousand rupees. 3[40. Penalty for unauthorised use by requesting entity or offline verification-seeking entity.— Whoever,—(a) being a requesting entity, uses the identity information of an individual in contravention of sub-section (2) of section 8; or (b) being an offline verification-seeking entity, uses the identity information of an individual in contravention of sub-section (2) of section 8A, shall be punishable with imprisonment which may extend to three years or with a fine which may extend to ten thousand rupees or, in the case of a company, with a fine which may extend to one lakh rupees or with both.] **41. Penalty for non-compliance with intimation requirements.—Whoever, being an enrolling** agency or a requesting entity, fails to comply with the requirements of sub-section (2) of section 3 or subsection (3) of section 8, shall be [4][liable to penalty which may extend to one lakh rupees, or in the case of a company, with penalty which may extend to ten lakh rupees]. **42. General penalty.—Whoever commits an offence under this Act or any rules or regulations made** thereunder for which no specific penalty is provided elsewhere than this section, shall be punishable with imprisonment for a term which may extend to [5] [three year] or with a fine which may extend to twenty-five thousand rupees or, in the case of a company, with a fine which may extend to one lakh rupees, or with both. **43. Offences by companies.—(1) Where an offence under this Act has been committed by a** company, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly. _Explanation.— For the purposes of this section—_ (a) “company” means any body corporate and includes a firm or other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm. 1. Subs. by Act 14 of 2019, s. 16 for “three years” (w.e.f. 25-7-2019). 2. Subs. by s. 17, ibid., (w.e.f. 25-7-2019). 3. Subs. by s. 18, ibid., for section 40 (w.e.f. 25-7-2019). 4. Subs. by Act 18 of 2023, s. 2 and Schedule, for certain words (w.e.f. 30-11-2023). 5. Subs. by Act 14 of 2019, s. 19, for “One year” (w.e.f. 25-7-2019). ----- **44. Act to apply for offence or contravention committed outside India.—(1) Subject to the** provisions of sub-section (2), the provisions of this Act shall apply also to any offence or contravention committed outside India by any person, irrespective of his nationality. (2) For the purposes of sub-section (1), the provisions of this Act shall apply to any offence or contravention committed outside India by any person, if the act or conduct constituting the offence or contravention involves any data in the Central Identities Data Repository. **45. Power to investigate offences.—Notwithstanding anything contained in the Code of Criminal** Procedure, 1973 (2 of 1974), a police officer not below the rank of Inspector of Police shall investigate any offence under this Act. **46. Penalties not to interfere with other punishments.—No penalty imposed under this Act shall** prevent the imposition of any other penalty or punishment under any other law for the time being in force. **47. Cognizance of offences.—(1) No court shall take cognizance of any offence punishable under** this Act, save on a complaint made by the Authority or any officer or person authorised by it. 1[Provided that the court may, on a complaint made by an Aadhaar number holder or individual take cognizance of any offence punishable under section 34 or 35 or 36 or 37 or 40 or section 41.] (2) No court inferior to that of a Chief Metropolitan Magistrate or a Chief Judicial Magistrate shall try any offence punishable under this Act. CHAPTER VIII MISCELLANEOUS **48. Power of Central Government to supersede Authority.—(1) If, at any time, the Central** Government is of the opinion,— (a) that, on account of circumstances beyond the control of the Authority, it is unable to discharge the functions or perform the duties imposed on it by or under the provisions of this Act; or (b) that the Authority has persistently defaulted in complying with any direction given by the Central Government under this Act or in the discharge of the functions or performance of the duties imposed on it by or under the provisions of this Act and as a result of such default the financial position of the Authority or the administration of the Authority has suffered; or (c) that a public emergency exists, the Central Government may, by notification, supersede the Authority for such period, not exceeding six months, as may be specified in the notification and appoint a person or persons as the President may direct to exercise powers and discharge functions under this Act: Provided that before issuing any such notification, the Central Government shall give a reasonable opportunity to the Authority to make representations against the proposed supersession and shall consider the representations, if any, of the Authority. (2) Upon the publication of a notification under sub-section (1), superseding the Authority,— (a) the Chairperson and other Members shall, as from the date of supersession, vacate their offices as such; (b) all the powers, functions and duties which may, by or under the provisions of this Act, be exercised or discharged by or on behalf of the Authority shall, until the Authority is reconstituted under sub-section (3), be exercised and discharged by the person or persons referred to in sub-section (1); and (c) all properties owned or controlled by the Authority shall, until the Authority is reconstituted under sub-section (3), vest in the Central Government. 1. Ins. by Act 14 of 2019, s. 20 (w.e.f. 25-7-2019). ----- (3) On or before the expiration of the period of supersession specified in the notification issued under sub-section (1), the Central Government shall reconstitute the Authority by a fresh appointment of its Chairperson and other Members and in such case any person who had vacated his office under clause (a) of sub-section (2) shall not be deemed to be disqualified for reappointment. (4) The Central Government shall cause a copy of the notification issued under sub-section (1) and a full report of any action taken under this section and the circumstances leading to such action to be laid before each House of Parliament at the earliest. **49. Members, officers, etc., to be public servants.—The Chairperson, Members, officers and other** employees of the Authority shall be deemed, while acting or purporting to act in pursuance of any of the [provisions of this Act, to be public servants within the meaning of section 21 of the Indian Penal Code](javascript:fnOpenLinkPopUp('782','15783');) (45 of 1860). **50. Power of Central Government to issue directions.—(1) Without prejudice to the foregoing** provisions of this Act, the Authority shall, in exercise of its powers or the performance of its functions under this Act be bound by such directions on questions of policy, as the Central Government may give, in writing to it, from time to time: Provided that the Authority shall, as far as practicable, be given an opportunity to express its views before any direction is given under this sub-section: Provided further that nothing in this section shall empower the Central Government to issue directions pertaining to technical or administrative matters undertaken by the Authority. (2) The decision of the Central Government, whether a question is one of policy or not, shall be final. **1[50A. Exemption from tax on income.—Notwithstanding anything contained in the Income-tax** Act, 1961 (43 of 1961) or any other enactment for the time being in force relating to tax on income, profits or gains, the Authority shall not be liable to pay income-tax or any other tax in respect of its income, profits or gains.] **51. Delegation.—The Authority may, by general or special order in writing, delegate to any** 2[Member or officer] of the Authority or any other person, subject to such conditions, if any, as may be specified in the order, such of its powers and functions under this Act (except the power under section 54) as it may deem necessary. **52. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall** lie against the Central Government or the Authority or the Chairperson or any Member or any officer, or other employees of the Authority for anything which is in good faith done or intended to be done under this Act or the rule or regulation made thereunder. **53. Power of Central Government to make rules.—(1) The Central Government may, by** notification, make rules to carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the form and manner in which and the authority before whom the oath of office and of secrecy is to be subscribed by the Chairperson and Members under sub-section (2) of section 14; 3[(aa) the purpose for which the requesting entity may be allowed by the Authority to perform authentication under sub-clause (ii) of clause (b) of sub-section (4) of section 4;] 1. Ins. by Act 14 of 2019, s. 21 (w.e.f. 25-7-2019). 2. Subs. by s. 22, ibid., for “Member, officer” (w.e.f. 25-7-2019) 3. Ins. by s. 23, ibid, (w.e.f. 25-7-2019). ----- (b) the salary and allowances payable to, and other terms and conditions of service of, the Chairperson and the allowances or remuneration payable to Members of the Authority under sub-section (4) of section 14; (c) the other powers and functions of the Chairperson of the Authority under section 17; (d) the other powers and functions of the Authority under clause (t) of sub-section (2) of section 23; (e) the form of annual statement of accounts to be prepared by Authority under sub-section (1) of section 26; (f) the form and the manner in which and the time within which returns and statements and particulars are to be furnished under sub-section (1) of section 27; (g) the form and the manner and the time at which the Authority shall furnish annual report under sub-section (2) of section 27; 1[(ga) the qualification and experience of, and the manner of appointment of, the Adjudicating Officer under sub-section (1) of section 33B; (gb) the form, manner, and fee for an appeal to be filed under sub-section (2) of section 33C;] (h) any other matter which is required to be, or may be, prescribed, or in respect of which provision is to be or may be made by rules. **54. Power of Authority to make regulations.—(1) The Authority may, by notification, make** regulations consistent with this Act and the rules made thereunder, for carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:— 2[(a) the entities or group of entities in the Aadhaar ecosystem under clause (aa), the biometric information under clause (g) and the demographic information under clause (k), the process of collecting demographic information and biometric information from the individuals by enrolling agencies under clause (m), and the modes of offline verification of Aadhaar number holder under clause (pa) of section 2;] (b) the manner of verifying the demographic information and biometric information for issue of Aadhaar number under sub-section (3) of section 3; 3[(ba) the manner of generating an alternative virtual identity under sub-section (4) of section 3; (bb) the manner in which cancellation of an Aadhaar number may be carried out under sub-section (2) of section 3A;] (c) the conditions for accepting an Aadhaar number as proof of identity of the Aadhaar number holder under sub-section (3) of section 4; 3[(ca) standards of privacy and security to be complied with by the requesting entities under sub-section (4) of section 4; (cb) the classification of requesting entities under sub-section (5) of section 4;] (d) the other categories of individuals under section 5 for whom the Authority shall take special measures for allotment of Aadhaar number; (e) the manner of updating biometric information and demographic information under section 6; 1. Ins. by Act 14 of 2019, s. 23 (w.e.f. 25-7-2019). 2. Subs. by s. 24, ibid., for clause (a) (w.e.f. 25-7-2019). 3. Ins. by s. 24, ibid, (w.e.f. 25-7-2019). ----- (f) the procedure for authentication of the Aadhaar number under section 8; 1[(fa) the alternate and viable means of identification of individual under the proviso to clause (b) of sub-section (2) of section 8; (fb) the manner of obtaining consent under clause (a) of sub-section (2), the manner of providing information to the individual undergoing offline verification under sub-section (3), and the obligations of offline verification-seeking entities under clause (c) of sub-section (4) of section 8A;] (g) the other functions to be performed by the Central Identities Data Repository under section 10; (h) the time and places of meetings of the Authority and the procedure for transaction of business to be followed by it, including the quorum, under sub-section (1) of section 19; (i) the salary and allowances payable to, and other terms and conditions of service of, the chief executive officer, officers and other employees of the Authority under sub-section (2) of section 21; (j) the demographic information and biometric information under clause (a) and the manner of their collection under clause (b) of sub-section (2) of section 23; (k) the manner of maintaining and updating the information of individuals in the Central Identities Data Repository under clause (f) of sub-section (2) of section 23; (l) the manner of omitting and deactivating an Aadhaar number and information relating thereto under clause (g) of sub-section (2) of section 23; (m) the manner of use of Aadhaar numbers for the purposes of providing or availing of various subsidies, benefits, services and other purposes for which Aadhaar numbers may be used under clause (h) of sub-section (2) of section 23; (n) the terms and conditions for appointment of Registrars, enrolling agencies and other service providers and the revocation of appointments thereof under clause (i) of sub-section (2) of section 23; (o) the manner of sharing information of Aadhaar number holder under clause (k) of sub-section (2) of section 23; (p) various processes relating to data management, security protocol and other technology safeguards under clause (m) of sub-section (2) of section 23; (q) the procedure for issuance of new Aadhaar number to existing Aadhaar number holder under clause (n) of sub-section (2) of section 23; (r) manner of authorising Registrars, enrolling agencies or other service providers to collect such fees for services provided by them under clause (o) of sub-section (2) of section 23; (s) policies and practices to be followed by the Registrar, enrolling agencies and other service providers under clause (r) of sub-section (2) of section 23; (t) the manner of accessing the identity information by the Aadhaar number holder under the proviso to sub-section (5) of section 28; (u) the manner of sharing the identity information, other than core biometric information, collected or created under this Act under sub-section (2) of section 29; (v) the manner of alteration of demographic information under sub-section (1) and biometric information under sub-section (2) of section 31; (w) the manner of and the time for maintaining the request for authentication and the response thereon under sub-section (1), and the manner of obtaining, by the Aadhaar number holder, the authentication records under sub-section (2) of section 32; 1. Ins. by Act 14 of 2019 (w.e.f. 25-7-2019). ----- (x) any other matter which is required to be, or may be, specified, or in respect of which provision is to be or may be made by regulations. **55. Laying of rules and regulations before Parliament.—Every rule and every regulation made** under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation, or both the Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. **56. Application of other laws not barred.—The provisions of this Act shall be in addition to, and** not in derogation of, any other law for the time being in force. **57. Act not to prevent use of Aadhaar number for other purposes under law.—Omitted by the** _Aadhaar and Other Laws (Amendment) Act 2019 (Act 14 of 2019), s. 25 (w.e.f. 25-07-2019)_ **58. Power to remove difficulties.— (1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order, published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty: Provided that no such order shall be made under this section after the expiry of three years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **59. Savings.—Anything done or any action taken by the Central Government under the Resolution of** the Government of India, Planning Commission bearing notification number A-43011/02/2009-Admin. I, dated the 28th January, 2009, or by the Department of Electronics and Information Technology under the Cabinet Secretariat Notification bearing notification number S.O.2492 (E), dated the 12th September, 2015, as the case may be, shall be deemed to have been validly done or taken under this Act. -----

25-Mar-2016

16

The Real Estate (Regulation and Development) Act, 2016.

https://www.indiacode.nic.in/bitstream/123456789/2158/3/A2016-16.pdf

central

# THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016 ____________ # ARRANGEMENT OF SECTIONS ____________ CHAPTER I PRELIMINARY SECTIONS 1. Short title, extent and commencement. 2. Definitions. CHAPTER II REGISTRATION OF REAL ESTATE PROJECT AND REGISTRATION OF REAL ESTATE AGENTS 3. Prior registration of real estate project with Real Estate Regulatory Authority. 4. Application for registration of real estate projects. 5. Grant of registration. 6. Extension of registration. 7. Revocation of registration. 8. Obligation of Authority consequent upon lapse of or on revocation of registration. 9. Registration of real estate agents. 10. Functions of real estate agents. CHAPTER III FUNCTIONS AND DUTIES OF PROMOTER 11. Functions and duties of promoter. 12. Obligations of promoter regarding veracity of the advertisement or prospectus. 13. No deposit or advance to be taken by promoter without first entering into agreement for sale. 14. Adherence to sanctioned plans and project specifications by the promoter. 15. Obligations of promoter in case of transfer of a real estate project to a third party. 16. Obligations of promoter regarding insurance of real estate project. 17. Transfer of title. 18. Return of amount and compensation. CHAPTER IV RIGHTS AND DUTIES OF ALLOTTEES 19. Rights and duties of allottees. CHAPTET V THE REAL ESTATE REGULATORY AUTHORITY 20. Establishment and incorporation of Real Estate Regulatory Authority. 21. Composition of Authority. 22. Qualifications of Chairperson and Members of Authority. 23. Term of office of Chairperson and Members. 1 ----- SECTIONS 24. Salary and allowances payable to Chairperson and Members. 25. Administrative powers of Chairperson. 26. Removal of Chairperson and Members from office in certain circumstances. 27. Restrictions on Chairperson or Members on employment after cessation of office. 28. Officers and other employees of Authority. 29. Meetings of Authority. 30. Vacancies, etc., not to invalidate proceeding of Authority. 31. Filing of complaints with the Authority or the adjudicating officer. 32. Functions of Authority for promotion of real estate sector. 33. Advocacy and awareness measures. 34. Functions of Authority. 35. Powers of Authority to call for information, conduct investigations. 36. Power to issue interim orders. 37. Powers of Authority to issue directions. 38. Powers of Authority. 39. Rectification of orders. 40. Recovery of interest or penalty or compensation and enforcement of order, etc. CHAPTER VI CENTRAL ADVISORY COUNCIL 41. Establishment of Central Advisory Council. 42. Functions of Central Advisory Council. CHAPTER VII THE REAL ESTATE APPELLATE TRIBUNAL 43. Establishment of Real Estate Appellate Tribunal. 44. Application for settlement of disputes and appeals to Appellate Tribunal. 45. Composition of Appellate Tribunal. 46. Qualifications for appointment of Chairperson and Members. 47. Term of office of Chairperson and Members. 48. Salary and allowances payable to Chairperson and Members. 49. Removal of Chairperson and Member from office in certain circumstances. 50. Restrictions on Chairperson or Judicial Member or Technical or Administrative Member on employment after cessation of office. 51. Officers and other employees of Appellate Tribunal. 52. Vacancies. 53. Powers of Tribunal. 54. Administrative powers of Chairperson of Appellate Tribunal. 55. Vacancies, etc., not to invalidate proceeding of Appellate Tribunal. 56. Right to legal representation. 57. Orders passed by Appellate Tribunal to be executable as a decree. 58. Appeal to High Court. 2 ----- CHAPTER VIII OFFENCES, PENALTIES AND ADJUDICATION SECTIONS 59. Punishment for nonregistration under section 3. 60. Penalty for contravention of section 4. 61. Penalty for contravention of other provisions of this Act. 62. Penalty for nonregistration and contravention under sections 9 and 10. 63. Penalty for failure to comply with orders of Authority by promoter. 64. Penalty for failure to comply with orders of Appellate Tribunal by promoter. 65. Penalty for failure to comply with orders of Authority by real estate agent. 66. Penalty for failure to comply with orders of Appellate Tribunal by real estate agent. 67. Penalty for failure to comply with orders of Authority by allottee. 68. Penalty for failure to comply with orders of Appellate Tribunal by allottee. 69. Offences by companies. 70. Compounding of offences. 71. Power to adjudicate. 72. Factors to be taken into account by the adjudicating officer. CHAPTER IX FINANCE, ACCOUNTS, AUDITS AND REPORTS 73. Grants and loans by Central Government. 74. Grants and loans by State Government. 75. Constitution of Fund. 76. Crediting sums realised by way of penalties to Consolidated Fund of India or State account. 77. Budget, accounts and audit. 78. Annual report. CHAPTER X MISCELLANEOUS 79. Bar of jurisdiction. 80. Cognizance of offences. 81. Delegation. 82. Power of appropriate Government to supersede Authority. 83. Powers of appropriate Government to issue directions to Authority and obtain reports and returns. 84. Power of appropriate Government to make rules. 85. Power to make regulations. 86. Laying of rules. 87. Members, etc., to be public servants. 88. Application of other laws not barred. 89. Act to have overriding effect. 90. Protection of action taken in good faith. 91. Power to remove difficulties. 92. Repeal. 3 ----- # THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016 ACT NO. 16 OF 2016 [25th March, 2016.] # An Act to establish the Real Estate Regulatory Authority for regulation and promotion of the real estate sector and to ensure sale of plot, apartment or building, as the case may be, or sale of real estate project, in an efficient and transparent manner and to protect the interest of consumers in the real estate sector and to establish an adjudicating mechanism for speedy dispute redressal and also to establish the Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority and the adjudicating officer and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Sixty-seventh Year of the Republic of India as follows:— CHAPTER I PRELIMINARY **1. Short title, extent and commencement.—(1) This Act may be called the Real Estate (Regulation** and Development) Act, 2016. (2) It extends to the whole of India except the State of Jammu and Kashmir*. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint: Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. **2. Definitions.—In this Act, unless the context otherwise requires,—** (a) “adjudicating officer” means the adjudicating officer appointed under sub-section (1) of section 71; (b) “advertisement” means any document described or issued as advertisement through any medium and includes any notice, circular or other documents or publicity in any form, informing persons about a real estate project, or offering for sale of a plot, building or apartment or inviting persons to purchase in any manner such plot, building or apartment or to make advances or deposits for such purposes; (c) “agreement for sale” means an agreement entered into between the promoter and the allottee; (d) “allottee” in relation to a real estate project, means the person to whom a plot, apartment or building, as the case may be, has been allotted, sold (whether as freehold or leasehold) or otherwise transferred by the promoter, and includes the person who subsequently acquires the said allotment through sale, transfer or otherwise but does not include a person to whom such plot, apartment or building, as the case may be, is given on rent; (e) “apartment” whether called block, chamber, dwelling unit, flat, office, showroom, shop, godown, premises, suit, tenement, unit or by any other name, means a separate and self-contained part of any immovable property, including one or more rooms or enclosed spaces, located on one or more floors or any part thereof, in a building or on a plot of land, used or intended to be used for any residential or commercial use such as residence, office, shop, showroom or godown or for carrying on any business, occupation, profession or trade, or for any other type of use ancillary to the purpose specified; 1. 1st May, 2016, vide notification No. S.O. 1544(E), Section 2, Sections 20 to 39, Sections 41 to 58, Sections 71 to 78, Sections 81 to 92 dated 26th April, 2016, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 1st May 2017, vide notification No. S.O. 1216(E), Section 3 to 19, Sections 40, Sections 59 to 71, Sections 79 to 80, dated 19th April, 2016, see Gazette of India, Extraordinary, Part II, sec. 3(ii). *. Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and Kashmir and the Union territory of Ladakh. 4 ----- (f) “Appellate Tribunal” means the Real Estate Appellate Tribunal established under section 43; (g) “appropriate Government” means in respect of matters relating to,— (i) the Union territory without Legislature, the Central Government; (ii) the Union territory of [1][Puducherry and Union territory of Jammu and Kashmir], the Union territory Government; (iii) the Union territory of Delhi, the Central Ministry of Urban Development; (iv) the State, the State Government; (h) “architect” means a person registered as an architect under the provisions of the Architects Act, 1972 (20 of 1972); (i) “Authority” means the Real Estate Regulatory Authority established under sub-section (1) of section 20; (j) “building” includes any structure or erection or part of a structure or erection which is intended to be used for residential, commercial or for the purpose of any business, occupation, profession or trade, or for any other related purposes; (k) “carpet area” means the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment. _Explanation.— For the purpose of this clause, the expression “exclusive balcony or verandah_ area” means the area of the balcony or verandah, as the case may be, which is appurtenant to the net usable floor area of an apartment, meant for the exclusive use of the allottee; and “exclusive open terrace area” means the area of open terrace which is appurtenant to the net usable floor area of an apartment, meant for the exclusive use of the allottee; (l) “Chairperson” means the Chairperson of the Real Estate Regulatory Authority appointed under section 21; (m) “commencement certificate” means the commencement certificate or the building permit or the construction permit, by whatever name called issued by the competent authority to allow or permit the promoter to begin development works on an immovable property, as per the sanctioned plan; (n) “common areas” mean— (i) the entire land for the real estate project or where the project is developed in phases and registration under this Act is sought for a phase, the entire land for that phase; (ii) the stair cases, lifts, staircase and lift lobbies, fire escapes, and common entrances and exits of buildings; (iii) the common basements, terraces, parks, play areas, open parking areas and common storage spaces; (iv) the premises for the lodging of persons employed for the management of the property including accommodation for watch and ward staffs or for the lodging of community service personnel; (v) installations of central services such as electricity, gas, water and sanitation, air-conditioning and incinerating, system for water conservation and renewable energy; (vi) the water tanks, sumps, motors, fans, compressors, ducts and all apparatus connected with installations for common use; (vii) all community and commercial facilities as provided in the real estate project; 1. Subs. by the Jammu and Kashmir Reorganization (Adaptation of Central Laws) Order, 2020, vide notification No. S.O. 1123(E) dated (18-3-2020). 5 ----- (viii) all other portion of the project necessary or convenient for its maintenance, safety, etc., and in common use; 6 ----- (o) “company” means a company incorporated and registered under the Companies Act, 2013 (18 of 2013) and includes,— (i) a corporation established by or under any Central Act or State Act; (ii) a development authority or any public authority established by the Government in this behalf under any law for the time being in force; (p) “competent authority” means the local authority or any authority created or established under any law for the time being in force by the appropriate Government which exercises authority over land under its jurisdiction, and has powers to give permission for development of such immovable property; (q) “completion certificate” means the completion certificate, or such other certificate, by whatever name called, issued by the competent authority certifying that the real estate project has been developed according to the sanctioned plan, layout plan and specifications, as approved by the competent authority under the local laws; (r) “day” means the working day, in the concerned State or Union territory, as the case may be, notified by the appropriate Government from time to time; (s) “development” with its grammatical variations and cognate expressions, means carrying out the development of immovable property, engineering or other operations in, on, over or under the land or the making of any material change in any immovable property or land and includes redevelopment; (t) “development works” means the external development works and internal development works on immovable property; (u) “engineer” means a person who possesses a bachelor’s degree or equivalent from an institution recognised by the All India Council of Technical Education or any University or any institution recognised under a law or is registered as an engineer under any law for the time being in force; (v) “estimated cost of real estate project” means the total cost involved in developing the real estate project and includes the land cost, taxes, cess, development and other charges; (w) “external development works” includes roads and road systems landscaping, water supply, sewerage and drainage systems, electricity supply transformer, sub-station, solid waste management and disposal or any other work which may have to be executed in the periphery of, or outside, a project for its benefit, as may be provided under the local laws; (x) “family” includes husband, wife, minor son and unmarried daughter wholly dependent on a person; (y) “garage” means a place within a project having a roof and walls on three sides for parking any vehicle, but does not include an unenclosed or uncovered parking space such as open parking areas; (z) “immovable property” includes land, buildings, rights of ways, lights or any other benefit arising out of land and things attached to the earth or permanently fastened to anything which is attached to the earth, but not standing timber, standing crops or grass; (za) “interest” means the rates of interest payable by the promoter or the allottee, as the case may be. _Explanation.—For the purpose of this clause—_ (i) the rate of interest chargeable from the allottee by the promoter, in case of default, shall be equal to the rate of interest which the promoter shall be liable to pay the allottee, in case of default; (ii) the interest payable by the promoter to the allottee shall be from the date the promoter received the amount or any part thereof till the date the amount or part thereof and interest 7 ----- thereon is refunded, and the interest payable by the allottee to the promoter shall be from the date the allottee defaults in payment to the promoter till the date it is paid; (zb) “internal development works” means roads, footpaths, water supply, sewers, drains, parks, tree planting, street lighting, provision for community buildings and for treatment and disposal of sewage and sullage water, solid waste management and disposal, water conservation, energy management, fire protection and fire safety requirements, social infrastructure such as education health and other public amenities or any other work in a project for its benefit, as per sanctioned plans; (zc) “local authority” means the Municipal Corporation or Municipality or Panchayats or any other Local Body constituted under any law for the time being in force for providing municipal services or basic services, as the case may be, in respect of areas under its jurisdiction; (zd) “Member” means the member of the Real Estate Regulatory Authority appointed under section 21 and includes the Chairperson; (ze) “notification” means a notification published in the Official Gazette and the expression “notify” shall be construed accordingly; (zf) “occupancy certificate” means the occupancy certificate, or such other certificate, by whatever name called, issued by the competent authority permitting occupation of any building, as provided under local laws, which has provision for civic infrastructure such as water, sanitation and electricity; (zg) “Person” includes,— (i) an individual; (ii) a Hindu undivided family; (iii) a company; (iv) a firm under the Indian Partnership Act, 1932 (9 of 1932) or the Limited Liability Partnership Act, 2008 (6 of 2009), as the case may be; (v) a competent authority; (vi) an association of persons or a body of individuals whether incorporated or not; (vii) a co-operative society registered under any law relating to co-operative societies; (viii) any such other entity as the appropriate Government may, by notification, specify in this behalf; (zh) “planning area” means a planning area or a development area or a local planning area or a regional development plan area, by whatever name called, or any other area specified as such by the appropriate Government or any competent authority and includes any area designated by the appropriate Government or the competent authority to be a planning area for future planned development, under the law relating to Town and Country Planning for the time being in force and as revised from time to time; (zi) “prescribed” means prescribed by rules made under this Act; (zj) “project” means the real estate project as defined in clause (zn); (zk) “promoter” means,— (i) a person who constructs or causes to be constructed an independent building or a building consisting of apartments, or converts an existing building or a part thereof into apartments, for the purpose of selling all or some of the apartments to other persons and includes his assignees; or (ii) a person who develops land into a project, whether or not the person also constructs structures on any of the plots, for the purpose of selling to other persons all or some of the plots in the said project, whether with or without structures thereon; or 8 ----- (iii) any development authority or any other public body in respect of allottees of— (a) buildings or apartments, as the case may be, constructed by such authority or body on lands owned by them or placed at their disposal by the Government; or (b) plots owned by such authority or body or placed at their disposal by the Government, for the purpose of selling all or some of the apartments or plots; or (iv) an apex State level co-operative housing finance society and a primary co-operative housing society which constructs apartments or buildings for its Members or in respect of the allottees of such apartments or buildings; or (v) any other person who acts himself as a builder, coloniser, contractor, developer, estate developer or by any other name or claims to be acting as the holder of a power of attorney from the owner of the land on which the building or apartment is constructed or plot is developed for sale; or (vi) such other person who constructs any building or apartment for sale to the general public. _Explanation.—For the purposes of this clause, where the person who constructs or converts a_ building into apartments or develops a plot for sale and the person who sells apartments or plots are different person, both of them shall be deemed to be the promoters and shall be jointly liable as such for the functions and responsibilities specified under this Act or the rules and regulations made thereunder; (zl) “prospectus” means any document described or issued as a prospectus or any notice, circular, or other document offering for sale of any real estate project or inviting any person to make advances or deposits for such purposes; (zm) “real estate agent” means any person, who negotiates or acts on behalf of one person in a transaction of transfer of his plot, apartment or building, as the case may be, in a real estate project, by way of sale, with another person or transfer of plot, apartment or building, as the case may be, of any other person to him and receives remuneration or fees or any other charges for his services whether as a commission or otherwise and includes a person who introduces, through any medium, prospective buyers and sellers to each other for negotiation for sale or purchase of plot, apartment or building, as the case may be, and includes property dealers, brokers, middlemen by whatever name called; (zn) “real estate project” means the development of a building or a building consisting of apartments, or converting an existing building or a part thereof into apartments, or the development of land into plots or apartments, as the case may be, for the purpose of selling all or some of the said apartments or plots or building, as the case may be, and includes the common areas, the development works, all improvements and structures thereon, and all easement, rights and appurtenances belonging thereto; (zo) “regulations” means the regulations made by the Authority under this Act; (zp) “rule” means the rules made under this Act by the appropriate Government; (zq) “sanctioned plan” means the site plan, building plan, service plan, parking and circulation plan, landscape plan, layout plan, zoning plan and such other plan and includes structural designs, if applicable, permissions such as environment permission and such other permissions, which are approved by the competent authority prior to start of a real estate project; (zr) words and expressions used herein but not defined in this Act and defined in any law for the time being in force or in the municipal laws or such other relevant laws of the appropriate Government shall have the same meanings respectively assigned to them in those laws. 9 ----- CHAPTER II REGISTRATION OF REAL ESTATE PROJECT AND REGISTRATION OF REAL ESTATE AGENTS **3. Prior registration of real estate project with Real Estate Regulatory Authority.—(1) No** promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, as the case may be, in any real estate project or part of it, in any planning area, without registering the real estate project with the Real Estate Regulatory Authority established under this Act: Provided that projects that are ongoing on the date of commencement of this Act and for which the completion certificate has not been issued, the promoter shall make an application to the Authority for registration of the said project within a period of three months from the date of commencement of this Act: Provided further that if the Authority thinks necessary, in the interest of allottees, for projects which are developed beyond the planning area but with the requisite permission of the local authority, it may, by order, direct the promoter of such project to register with the Authority, and the provisions of this Act or the rules and regulations made thereunder, shall apply to such projects from that stage of registration. (2) Notwithstanding anything contained in sub-section (1), no registration of the real estate project shall be required— (a) where the area of land proposed to be developed does not exceed five hundred square meters or the number of apartments proposed to be developed does not exceed eight inclusive of all phases: Provided that, if the appropriate Government considers it necessary, it may, reduce the threshold below five hundred square meters or eight apartments, as the case may be, inclusive of all phases, for exemption from registration under this Act; (b) where the promoter has received completion certificate for a real estate project prior to commencement of this Act; (c) for the purpose of renovation or repair or re-development which does not involve marketing, advertising selling or new allotment of any apartment, plot or building, as the case may be, under the real estate project. _Explanation.—For the purpose of this section, where the real estate project is to be developed in_ phases, every such phase shall be considered a stand alone real estate project, and the promoter shall obtain registration under this Act for each phase separately. **4. Application for registration of real estate projects.—(1) Every promoter shall make an** application to the Authority for registration of the real estate project in such form, manner, within such time and accompanied by such fee as may be [1][prescribed]. (2) The promoter shall enclose the following documents along with the application referred to in sub-section (1), namely:— (a) a brief details of his enterprise including its name, registered address, type of enterprise (proprietorship, societies, partnership, companies, competent authority), and the particulars of registration, and the names and photographs of the promoter; (b) a brief detail of the projects launched by him, in the past five years, whether already completed or being developed, as the case may be, including the current status of the said projects, any delay in its completion, details of cases pending, details of type of land and payments pending; (c) an authenticated copy of the approvals and commencement certificate from the competent authority obtained in accordance with the laws as may be applicable for the real estate project mentioned in the application, and where the project is proposed to be developed in phases, an authenticated copy of the approvals and commencement certificate from the competent authority for each of such phases; 1. Subs. by the Real Estate (Regulation and Development) Removal of Difficulties Order, 2016 [S.O. 3347 (E)], for “specified by the regulations made by the Authority” (w.e.f. 28-10-2016). 10 ----- (d) the sanctioned plan, layout plan and specifications of the proposed project or the phase thereof, and the whole project as sanctioned by the competent authority; (e) the plan of development works to be executed in the proposed project and the proposed facilities to be provided thereof including fire fighting facilities, drinking water facilities, emergency evacuation services, use of renewable energy; (f) the location details of the project, with clear demarcation of land dedicated for the project along with its boundaries including the latitude and longitude of the end points of the project; (g) proforma of the allotment letter, agreement for sale, and the conveyance deed proposed to be signed with the allottees; (h) the number, type and the carpet area of apartments for sale in the project along with the area of the exclusive balcony or verandah areas and the exclusive open terrace areas appurtenant with the apartment, if any; (i) the number and area of garage for sale in the project; (j) the names and addresses of his real estate agents, if any, for the proposed project; (k) the names and addresses of the contractors, architect, structural engineer, if any and other persons concerned with the development of the proposed project; (l) a declaration, supported by an affidavit, which shall be signed by the promoter or any person authorised by the promoter, stating:— (A) that he has a legal title to the land on which the development is proposed along with legally valid documents with authentication of such title, if such land is owned by another person; (B) that the land is free from all encumbrances, or as the case may be details of the encumbrances on such land including any rights, title, interest or name of any party in or over such land along with details; (C) the time period within which he undertakes to complete the project or phase thereof, as the case may be; (D) that seventy per cent. of the amounts realised for the real estate project from the allottees, from time to time, shall be deposited in a separate account to be maintained in a scheduled bank to cover the cost of construction and the land cost and shall be used only for that purpose: Provided that the promoter shall withdraw the amounts from the separate account, to cover the cost of the project, in proportion to the percentage of completion of the project: Provided further that the amounts from the separate account shall be withdrawn by the promoter after it is certified by an engineer, an architect and a chartered accountant in practice that the withdrawal is in proportion to the percentage of completion of the project: Provided also that the promoter shall get his accounts audited within six months after the end of every financial year by a chartered accountant in practice, and shall produce a statement of accounts duly certified and signed by such chartered accountant and it shall be verified during the audit that the amounts collected for a particular project have been utilised for that project and the withdrawal has been in compliance with the proportion to the percentage of completion of the project. _Explanation.—For the purpose of this clause, the term “scheduled bank” means a bank_ included in the Second Scheduled to the Reserve Bank of India Act, 1934 (2 of 1934); (E) that he shall take all the pending approvals on time, from the competent authorities; (F) that he has furnished such other documents as may be prescribed by the rules or regulations made under this Act; and (m) such other information and documents as may be prescribed. 11 ----- (3) The Authority shall operationalise a web based online system for submitting applications for registration of projects within a period of one year from the date of its establishment. **5. Grant of registration.—(1) On receipt of the application under sub-section (1) of section 4, the** Authority shall within a period of thirty days. (a) grant registration subject to the provisions of this Act and the rules and regulations made thereunder, and provide a registration number, including a Login Id and password to the applicant for accessing the website of the Authority and to create his web page and to fill therein the details of the proposed project; or (b) reject the application for reasons to be recorded in writing, if such application does not conform to the provisions of this Act or the rules or regulations made thereunder: Provided that no application shall be rejected unless the applicant has been given an opportunity of being heard in the matter. (2) If the Authority fails to grant the registration or reject the application, as the case may be, as provided under sub-section (1), the project shall be deemed to have been registered, and the Authority shall within a period of seven days of the expiry of the said period of thirty days specified under sub-section (1), provide a registration number and a Login Id and password to the promoter for accessing the website of the Authority and to create his web page and to fill therein the details of the proposed project. (3) The registration granted under this section shall be valid for a period declared by the promoter under sub-clause (C) of clause (l) of sub-section (2) of section 4 for completion of the project or phase thereof, as the case may be. **6. Extension of registration.—The registration granted under section 5 may be extended by the** Authority on an application made by the promoter, due to force majeure, in such form and on payment of such fee as may be [1][prescribed]: Provided that the Authority may in reasonable circumstances, without default on the part of the promoter, based on the facts of each case, and for reasons to be recorded in writing, extend the registration granted to a project for such time as it considers necessary, which shall, in aggregate, not exceed a period of one year: Provided further that no application for extension of registration shall be rejected unless the applicant has been given an opportunity of being heard in the matter. _Explanation.— For the purpose of this section, the expression “force majeure” shall mean a case of_ war, flood, drought, fire, cyclone, earthquake or any other calamity caused by nature affecting the regular development of the real estate project. **7. Revocation of registration.—(1) The Authority may, on receipt of a complaint or suomotu in this** behalf or on the recommendation of the competent authority, revoke the registration granted under section 5, after being satisfied that— (a) the promoter makes default in doing anything required by or under this Act or the rules or the regulations made thereunder; (b) the promoter violates any of the terms or conditions of the approval given by the competent authority; (c) the promoter is involved in any kind of unfair practice or irregularities. _Explanation.—For the purposes of this clause, the term “unfair practice means” a practice which, for_ the purpose of promoting the sale or development of any real estate project adopts any unfair method or unfair or deceptive practice including any of the following practices, namely:— (A) the practice of making any statement, whether in writing or by visible representation which,— (i) falsely represents that the services are of a particular standard or grade; 1. Subs. by the Real Estate (Regulation and Development) Removal of Difficulties Order, 2016 [S.O. 3347 (E)], for “specified by regulations made by the Authority” (w.e.f. 28-10-2016). 12 ----- (ii) represents that the promoter has approval or affiliation which such promoter does not have; (iii) makes a false or misleading representation concerning the services; (B) the promoter permits the publication of any advertisement or prospectus whether in any newspaper or otherwise of services that are not intended to be offered; (d) the promoter indulges in any fraudulent practices. (2) The registration granted to the promoter under section 5 shall not be revoked unless the Authority has given to the promoter not less than thirty days notice, in writing, stating the grounds on which it is proposed to revoke the registration, and has considered any cause shown by the promoter within the period of that notice against the proposed revocation. (3) The Authority may, instead of revoking the registration under sub-section (1), permit it to remain in force subject to such further terms and conditions as it thinks fit to impose in the interest of the allottees, and any such terms and conditions so imposed shall be binding upon the promoter. (4) The Authority, upon the revocation of the registration,— (a) shall debar the promoter from accessing its website in relation to that project and specify his name in the list of defaulters and display his photograph on its website and also inform the other Real Estate Regulatory Authority in other States and Union territories about such revocation or registration; (b) shall facilitate the remaining development works to be carried out in accordance with the provisions of section 8; (c) shall direct the bank holding the project bank account, specified under sub-clause(D) of clause (l) of sub-section (2) of section 4, to freeze the account, and thereafter take such further necessary actions, including consequent de-freezing of the said account, towards facilitating the remaining development works in accordance with the provisions of section 8; (d) may, to protect the interest of allottees or in the public interest, issue such directions as it may deem necessary. **8. Obligation of Authority consequent upon lapse of or on revocation of registration.—Upon** lapse of the registration or on revocation of the registration under this Act, the Authority, may consult the appropriate Government to take such action as it may deem fit including the carrying out of the remaining development works by competent authority or by the association of allottees or in any other manner, as may be determined by the Authority: Provided that no direction, decision or order of the Authority under this section shall take effect until the expiry of the period of appeal provided under the provisions of this Act: Provided further that in case of revocation of registration of a project under this Act, the association of allottees shall have the first right of refusal for carrying out of the remaining development works. **9. Registration of real estate agents.—(1) No real estate agent shall facilitate the sale or purchase of** or act on behalf of any person to facilitate the sale or purchase of any plot, apartment or building, as the case may be, in a real estate project or part of it, being the part of the real estate project registered under section 3, being sold by the promoter in any planning area, without obtaining registration under this section. (2) Every real estate agent shall make an application to the Authority for registration in such form, manner, within such time and accompanied by such fee and documents as may be prescribed. (3) The Authority shall, within such period, in such manner and upon satisfying itself of the fulfilment of such conditions, as may be prescribed— (a) grant a single registration to the real estate agent for the entire State or Union territory, as the case may be; 13 ----- (b) reject the application for reasons to be recorded in writing, if such application does not conform to the provisions of the Act or this rules or regulations made thereunder: Provided that no application shall be rejected unless the applicant has been given an opportunity of being heard in the matter. (4) Whereon the completion of the period specified under sub-section (3), if the applicant does not receive any communication about the deficiencies in his application or the rejection of his application, he shall be deemed to have been registered. (5) Every real estate agent who is registered as per the provisions of this Act or the rules and regulations made thereunder, shall be granted a registration number by the Authority, which shall be quoted by the real estate agent in every sale facilitated by him under this Act. (6) Every registration shall be valid for such period as may be prescribed, and shall be renewable for a period in such manner and on payment of such fee as may be prescribed. (7) Where any real estate agent who has been granted registration under this Act commits breach of any of the conditions thereof or any other terms and conditions specified under this Act or any rules or regulations made thereunder, or where the Authority is satisfied that such registration has been secured by the real estate agent through misrepresentation or fraud, the Authority may, without prejudice to any other provisions under this Act, revoke the registration or suspend the same for such period as it thinks fit: Provided that no such revocation or suspension shall be made by the Authority unless an opportunity of being heard has been given to the real estate agent. **10. Functions of real estate agents.—Every real estate agent registered under section 9 shall—** (a) not facilitate the sale or purchase of any plot, apartment or building, as the case may be, in a real estate project or part of it, being sold by the promoter in any planning area, which is not registered with the Authority; (b) maintain and preserve such books of account, records and documents as may be prescribed; (c) not involve himself in any unfair trade practices, namely:— (i) the practice of making any statement, whether orally or in writing or by visible representation which— (A) falsely represents that the services are of a particular standard or grade; (B) represents that the promoter or himself has approval or affiliation which such promoter or himself does not have; (C) makes a false or misleading representation concerning the services; (ii) permitting the publication of any advertisement whether in any newspaper or otherwise of services that are not intended to be offered. (d) facilitate the possession of all the information and documents, as the allottee, is entitled to, at the time of booking of any plot, apartment or building, as the case may be; (e) discharge such other functions as may be prescribed. CHAPTER III FUNCTIONS AND DUTIES OF PROMOTER **11. Functions and duties of promoter.—(1) The promoter shall, upon receiving his Login Id and** password under clause (a) of sub-section (1) or under sub-section (2) of section 5, as the case may be, create his web page on the website of the Authority and enter all details of the proposed project as provided under sub-section (2) of section 4, in all the fields as provided, for public viewing, including— (a) details of the registration granted by the Authority; 14 ----- (b) quarterly up-to-date the list of number and types of apartments or plots, as the case may be, booked; (c) quarterly up-to-date the list of number of garages booked; (d) quarterly up-to-date the list of approvals taken and the approvals which are pending subsequent to commencement certificate; (e) quarterly up-to-date status of the project; and (f) such other information and documents as may be specified by the regulations made by the Authority. (2) The advertisement or prospectus issued or published by the promoter shall mention prominently the website address of the Authority, wherein all details of the registered project have been entered and include the registration number obtained from the Authority and such other matters incidental thereto. (3) The promoter, at the time of the booking and issue of allotment letter shall be responsible to make available to the allottee, the following information, namely:— (a) sanctioned plans, layout plans, along with specifications, approved by the competent authority, by display at the site or such other place as may be specified by the regulations made by the Authority; (b) the stage wise time schedule of completion of the project, including the provisions for civic infrastructure like water, sanitation and electricity. (4) The promoter shall— (a) be responsible for all obligations, responsibilities and functions under the provisions of this Act or the rules and regulations made thereunder or to the allottees as per the agreement for sale, or to the association of allottees, as the case may be, till the conveyance of all the apartments, plots or buildings, as the case may be, to the allottees, or the common areas to the association of allottees or the competent authority, as the case may be: Provided that the responsibility of the promoter, with respect to the structural defect or any other defect for such period as is referred to in sub-section (3) of section 14, shall continue even after the conveyance deed of all the apartments, plots or buildings, as the case may be, to the allottees are executed. (b) be responsible to obtain the completion certificate or the occupancy certificate, or both, as applicable, from the relevant competent authority as per local laws or other laws for the time being in force and to make it available to the allottees individually or to the association of allottees, as the case may be; (c) be responsible to obtain the lease certificate, where the real estate project is developed on a leasehold land, specifying the period of lease, and certifying that all dues and charges in regard to the leasehold land has been paid, and to make the lease certificate available to the association of allottees; (d) be responsible for providing and maintaining the essential services, on reasonable charges, till the taking over of the maintenance of the project by the association of the allottees; (e) enable the formation of an association or society or co-operative society, as the case may be, of the allottees, or a federation of the same, under the laws applicable: Provided that in the absence of local laws, the association of allottees, by whatever name called, shall be formed within a period of three months of the majority of allottees having booked their plot or apartment or building, as the case may be, in the project; (f) execute a registered conveyance deed of the apartment, plot or building, as the case may be, in favour of the allottee along with the undivided proportionate title in the common areas to the association of allottees or competent authority, as the case may be, as provided under section 17 of this Act; 15 ----- (g) pay all outgoings until he transfers the physical possession of the real estate project to the allottee or the associations of allottees, as the case may be, which he has collected from the allottees, for the payment of outgoings (including land cost, ground rent, municipal or other local taxes, charges for water or electricity, maintenance charges, including mortgage loan and interest on mortgages or other encumbrances and such other liabilities payable to competent authorities, banks and financial institutions, which are related to the project): Provided that where any promoter fails to pay all or any of the outgoings collected by him from the allottees or any liability, mortgage loan and interest thereon before transferring the real estate project to such allottees, or the association of the allottees, as the case may be, the promoter shall continue to be liable, even after the transfer of the property, to pay such outgoings and penal charges, if any, to the authority or person to whom they are payable and be liable for the cost of any legal proceedings which may be taken therefor by such authority or person; (h) after he executes an agreement for sale for any apartment, plot or building, as the case may be, not mortgage or create a charge on such apartment, plot or building, as the case may be, and if any such mortgage or charge is made or created then notwithstanding anything contained in any other law for the time being in force, it shall not affect the right and interest of the allottee who has taken or agreed to take such apartment, plot or building, as the case may be; (5) The promoter may cancel the allotment only in terms of the agreement for sale: Provided that the allottee may approach the Authority for relief, if he is aggrieved by such cancellation and such cancellation is not in accordance with the terms of the agreement for sale, unilateral and without any sufficient cause. (6) The promoter shall prepare and maintain all such other details as may be specified, from time to time, by regulations made by the Authority. **12. Obligations of promoter regarding veracity of the advertisement or prospectus.—Where any** person makes an advance or a deposit on the basis of the information contained in the notice, advertisement or prospectus, or on the basis of any model apartment, plot or building, as the case may be, and sustains any loss or damage by reason of any incorrect, false statement included therein, he shall be compensated by the promoter in the manner as provided under this Act: Provided that if the person affected by such incorrect, false statement contained in the notice, advertisement or prospectus, or the model apartment, plot or building as the case may be, intends to withdraw from the proposed project, he shall be returned his entire investment along with interest at such rate as may be prescribed and the compensation in the manner provided under this Act. **13. No deposit or advance to be taken by promoter without first entering into agreement for** **sale.—(1) A promoter shall not accept a sum more than ten per cent. of the cost of the apartment, plot, or** building as the case may be, as an advance payment or an application fee, from a person without first entering into a written agreement for sale with such person and register the said agreement for sale, under any law for the time being in force. (2) The agreement for sale referred to in sub-section (1) shall be in such form as may be prescribed and shall specify the particulars of development of the project including the construction of building and apartments, along with specifications and internal development works and external development works, the dates and the manner by which payments towards the cost of the apartment, plot, or building, as the case may be, are to be made by the allottees and the date on which the possession of the apartment, plot or building is to be handed over, the rates of interest payable by the promoter to the allottee and the allottee to the promoter in case of default, and such other particulars, as may be prescribed. **14. Adherence to sanctioned plans and project specifications by the promoter.—(1) The** proposed project shall be developed and completed by the promoter in accordance with the sanctioned plans, layout plans and specifications as approved by the competent authorities. (2) Notwithstanding anything contained in any law, contract or agreement, after the sanctioned plans, layout plans and specifications and the nature of the fixtures, fittings, amenities and common areas, of the 16 ----- apartment, plot or building, as the case may be, as approved by the competent authority, are disclosed or furnished to the person who agree to take one or more of the said apartment, plot or building, as the case may be, the promoter shall not make— (i) any additions and alterations in the sanctioned plans, layout plans and specifications and the nature of fixtures, fittings and amenities described therein in respect of the apartment, plot or building, as the case may be, which are agreed to be taken, without the previous consent of that person: Provided that the promoter may make such minor additions or alterations as may be required by the allottee, or such minor changes or alterations as may be necessary due to architectural and structural reasons duly recommended and verified by an authorised Architect or Engineer after proper declaration and intimation to the allottee. _Explanation.—For the purpose of this clause, “minor additions or alterations” excludes structural_ change including an addition to the area or change in height, or the removal of part of a building, or any change to the structure, such as the construction or removal or cutting into of any wall or a part of a wall, partition, column, beam, joist, floor including a mezzanine floor or other support, or a change to or closing of any required means of access ingress or egress or a change to the fixtures or equipment, etc. (ii) any other alterations or additions in the sanctioned plans, layout plans and specifications of the buildings or the common areas within the project without the previous written consent of at least two-thirds of the allottees, other than the promoter, who have agreed to take apartments in such building. _Explanation.—For the purpose of this clause, the allottee, irrespective of the number of apartments or_ plots, as the case may be, booked by him or booked in the name of his family, or in the case of other persons such as companies or firms or any association of individuals, etc., by whatever name called, booked in its name or booked in the name of its associated entities or related enterprises, shall be considered as one allottee only. (3) In case any structural defect or any other defect in workmanship, quality or provision of services or any other obligations of the promoter as per the agreement for sale relating to such development is brought to the notice of the promoter within a period of five years by the allottee from the date of handing over possession, it shall be the duty of the promoter to rectify such defects without further charge, within thirty days, and in the event of promoter's failure to rectify such defects within such time, the aggrieved allottees shall be entitled to receive appropriate compensation in the manner as provided under this Act. **15. Obligations of promoter in case of transfer of a real estate project to a third party.—(1) The** promoter shall not transfer or assign his majority rights and liabilities in respect of a real estate project to a third party without obtaining prior written consent from two-third allottees, except the promoter, and without the prior written approval of the Authority: Provided that such transfer or assignment shall not affect the allotment or sale of the apartments, plots or buildings as the case may be, in the real estate project made by the erstwhile promoter. _Explanation.—For the purpose of this sub-section, the allottee, irrespective of the number of_ apartments or plots, as the case may be, booked by him or booked in the name of his family, or in the case of other persons such as companies or firms or any association of individuals, by whatever name called, booked in its name or booked in the name of its associated entities or related enterprises, shall be considered as one allottee only. (2) On the transfer or assignment being permitted by the allottees and the Authority under sub-section (1), the intending promoter shall be required to independently comply with all the pending obligations under the provisions of this Act or the rules and regulations made thereunder, and the pending obligations as per the agreement for sale entered into by the erstwhile promoter with the allottees: Provided that any transfer or assignment permitted under provisions of this section shall not result in extension of time to the intending promoter to complete the real estate project and he shall be required to comply with all the pending obligations of the erstwhile promoter, and in case of default, such intending 17 ----- promoter shall be liable to the consequences of breach or delay, as the case may be, as provided under this Act or the rules and regulations made thereunder. **16. Obligations of promoter regarding insurance of real estate project.—(1) The promoter shall** obtain all such insurances as may be notified by the appropriate Government, including but not limited to insurance in respect of — (i) title of the land and building as a part of the real estate project; and (ii) construction of the real estate project. (2) The promoter shall be liable to pay the premium and charges in respect of the insurance specified in sub-section (1) and shall pay the same before transferring the insurance to the association of the allottees. (3) The insurance as specified under sub-section (1) shall stand transferred to the benefit of the allottee or the association of allottees, as the case may be, at the time of promoter entering into an agreement for sale with the allottee. (4) On formation of the association of the allottees, all documents relating to the insurance specified under sub-section (1) shall be handed over to the association of the allottees. **17. Transfer of title.—(1) The promoter shall execute a registered conveyance deed in favour of the** allottee along with the undivided proportionate title in the common areas to the association of the allottees or the competent authority, as the case may be, and hand over the physical possession of the plot, apartment of building, as the case may be, to the allottees and the common areas to the association of the allottees or the competent authority, as the case may be, in a real estate project, and the other title documents pertaining thereto within specified period as per sanctioned plans as provided under the local laws: Provided that, in the absence of any local law, conveyance deed in favour of the allottee or the association of the allottees or the competent authority, as the case may be, under this section shall be carried out by the promoter within three months from date of issue of occupancy certificate. (2) After obtaining the occupancy certificate and handing over physical possession to the allottees in terms of sub-section (1), it shall be the responsibility of the promoter to handover the necessary documents and plans, including common areas, to the association of the allottees or the competent authority, as the case may be, as per the local laws: Provided that, in the absence of any local law, the promoter shall handover the necessary documents and plans, including common areas, to the association of the allottees or the competent authority, as the case may be, within thirty days after obtaining the [1][completion] certificate. **18. Return of amount and compensation.—(1) If the promoter fails to complete or is unable to give** possession of an apartment, plot or building,— (a) in accordance with the terms of the agreement for sale or, as the case may be, duly completed by the date specified therein; or (b) due to discontinuance of his business as a developer on account of suspension or revocation of the registration under this Act or for any other reason, he shall be liable on demand to the allottees, in case the allottee wishes to withdraw from the project, without prejudice to any other remedy available, to return the amount received by him in respect of that apartment, plot, building, as the case may be, with interest at such rate as may be prescribed in this behalf including compensation in the manner as provided under this Act: Provided that where an allottee does not intend to withdraw from the project, he shall be paid, by the promoter, interest for every month of delay, till the handing over of the possession, at such rate as may be prescribed. (2) The promoter shall compensate the allottees in case of any loss caused to him due to defective title of the land, on which the project is being developed or has been developed, in the manner as provided 1. Subs. by the Real Estate (Regulation and Development) Removal of Difficulties Order, 2016 [S.O. 3347(E), for “occupancy” (w.e.f. 28-10-2016). 18 ----- under this Act, and the claim for compensation under this subsection shall not be barred by limitation provided under any law for the time being in force. (3) If the promoter fails to discharge any other obligations imposed on him under this Act or the rules or regulations made thereunder or in accordance with the terms and conditions of the agreement for sale, he shall be liable to pay such compensation to the allottees, in the manner as provided under this Act. CHAPTER IV RIGHTS AND DUTIES OF ALLOTTEES **19. Rights and duties of allottees.—(1) The allottee shall be entitled to obtain the information** relating to sanctioned plans, layout plans along with the specifications, approved by the competent authority and such other information as provided in this Act or the rules and regulations made thereunder or the agreement for sale signed with the promoter. (2) The allottee shall be entitled to know stage-wise time schedule of completion of the project, including the provisions for water, sanitation, electricity and other amenities and services as agreed to between the promoter and the allottee in accordance with the terms and conditions of the agreement for sale. (3) The allottee shall be entitled to claim the possession of apartment, plot or building, as the case may be, and the association of allottees shall be entitled to claim the possession of the common areas, as per the declaration given by the promoter under sub-clause (C) of clause (l) of sub-section (2) of section 4. (4) The allottee shall be entitled to claim the refund of amount paid along with interest at such rate as may be prescribed and compensation in the manner as provided under this Act, from the promoter, if the promoter fails to comply or is unable to give possession of the apartment, plot or building, as the case may be, in accordance with the terms of agreement for sale or due to discontinuance of his business as a developer on account of suspension or revocation of his registration under the provisions of this Act or the rules or regulations made thereunder. (5) The allottee shall be entitled to have the necessary documents and plans, including that of common areas, after handing over the physical possession of the apartment or plot or building as the case may be, by the promoter. (6) Every allottee, who has entered into an agreement for sale to take an apartment, plot or building as the case may be, under section 13, shall be responsible to make necessary payments in the manner and within the time as specified in the said agreement for sale and shall pay at the proper time and place, the share of the registration charges, municipal taxes, water and electricity charges, maintenance charges, ground rent, and other charges, if any. (7) The allottee shall be liable to pay interest, at such rate as may be prescribed, for any delay in payment towards any amount or charges to be paid under sub-section (6). (8) The obligations of the allottee under sub-section (6) and the liability towards interest under sub-section (7) may be reduced when mutually agreed to between the promoter and such allottee. (9) Every allottee of the apartment, plot or building as the case may be, shall participate towards the formation of an association or society or cooperative society of the allottees, or a federation of the same. (10) Every allottee shall take physical possession of the apartment, plot or building as the case may be, within a period of two months of the occupancy certificate issued for the said apartment, plot or building, as the case may be. (11) Every allottee shall participate towards registration of the conveyance deed of the apartment, plot or building, as the case may be, as provided under sub-section (1) of section 17 of this Act. 19 ----- CHAPTER V THE REAL ESTATE REGULATORY AUTHORITY **20. Establishment and incorporation of Real Estate Regulatory Authority.—(1) The appropriate** Government shall, within a period of one year from the date of coming into force of this Act, by notification, establish an Authority to be known as the Real Estate Regulatory Authority to exercise the powers conferred on it and to perform the functions assigned to it under this Act: Provided that the appropriate Government of two or more States or Union territories may, if it deems fit, establish one single Authority: Provided further that the appropriate Government may, if it deems fit, establish more than one Authority in a State or Union territory, as the case may be: Provided also that until the establishment of a Regulatory Authority under this section, the appropriate Government shall, by order, designate any Regulatory Authority or any officer preferably the Secretary of the department dealing with Housing, as the Regulatory Authority for the purposes under this Act: Provided also that after the establishment of the Regulatory Authority, all applications, complaints or cases pending with the Regulatory Authority designated, shall stand transferred to the Regulatory Authority so established and shall be heard from the stage such applications, complaints or cases are transferred. (2) The Authority shall be a body corporate by the name aforesaid having perpetual succession and a common seal, with the power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to contract, and shall, by the said name, sue or be sued. **21. Composition of Authority.—The Authority shall consist of a Chairperson and not less than two** whole time Members to be appointed by the appropriate Government. **22. Qualifications of Chairperson and Members of Authority.—The Chairperson and other** Members of the Authority shall be appointed by the appropriate Government on the recommendations of a Selection Committee consisting of the Chief Justice of the High Court or his nominee, the Secretary of the Department dealing with Housing and the Law Secretary, in such manner as may be prescribed, from amongst persons having adequate knowledge of and professional experience of at-least twenty years in case of the Chairperson and fifteen years in the case of the Members in urban development, housing, real estate development, infrastructure, economics, technical experts from relevant fields, planning, law, commerce, accountancy, industry, management, social service, public affairs or administration: Provided that a person who is, or has been, in the service of the State Government shall not be appointed as a Chairperson unless such person has held the post of Additional Secretary to the Central Government or any equivalent post in the Central Government or State Government: Provided further that a person who is, or has been, in the service of the State Government shall not be appointed as a member unless such person has held the post of Secretary to the State Government or any equivalent post in the State Government or Central Government. **23. Term of office of Chairperson and Members.—(1) The Chairperson and Members shall hold** office for a term not exceeding five years from the date on which they enter upon their office, or until they attain the age of sixty-five years, whichever is earlier and shall not be eligible for re-appointment. (2) Before appointing any person as a Chairperson or Member, the appropriate Government shall satisfy itself that the person does not have any such financial or other interest as is likely to affect prejudicially his functions as such Member. **24. Salary and allowances payable to Chairperson and Members.—(1) The salary and allowances** payable to, and the other terms and conditions of service of, the Chairperson and other Members shall be such as may be prescribed and shall not be varied to their disadvantage during their tenure. (2) Notwithstanding anything contained in sub-sections (1) and (2) of section 23, the Chairperson or a Member, as the case may be, may,— (a) relinquish his office by giving in writing, to the appropriate Government, notice of not less than three months; or 20 ----- (b) be removed from his office in accordance with the provisions of section 26 of this Act. (3) Any vacancy caused to the office of the Chairperson or any other Member shall be filled-up within a period of three months from the date on which such vacancy occurs. **25. Administrative powers of Chairperson.—The Chairperson shall have powers of general** superintendence and directions in the conduct of the affairs of Authority and he shall, in addition to presiding over the meetings of the Authority, exercise and discharge such administrative powers and functions of the Authority as may be prescribed. **26. Removal of Chairperson and Members from office in certain circumstances.—(1) The** appropriate Government may, in accordance with the procedure notified, remove from office the Chairperson or other Members, if the Chairperson or such other Member, as the case may be,— (a) has been adjudged as an insolvent; or (b) has been convicted of an offence, involving moral turpitude; or (c) has become physically or mentally incapable of acting as a Member; or (d) has acquired such financial or other interest as is likely to affect prejudicially his functions; or (e) has so abused his position as to render his continuance in office prejudicial to the public interest. (2) The Chairperson or Member shall not be removed from his office on the ground specified under clause (d) or clause (e) of sub-section (1) except by an order made by the appropriate Government after an inquiry made by a Judge of the High Court in which such Chairperson or Member has been informed of the charges against him and given a reasonable opportunity of being heard in respect of those charges. **27. Restrictions on Chairperson or Members on employment after cessation of office.—(1) The** Chairperson or a Member, ceasing to hold office as such, shall not— (a) accept any employment in, or connected with, the management or administration of, any person or organisation which has been associated with any work under this Act, from the date on which he ceases to hold office: Provided that nothing contained in this clause shall apply to any employment under the appropriate Government or a local authority or in any statutory authority or any corporation established by or under any Central, State or provincial Act or a Government Company, as defined under clause (45) of section 2 of the Companies Act, 2013 (18 of 2013), which is not a promoter as per the provisions of this Act; (b) act, for or on behalf of any person or organisation in connection with any specific proceeding or transaction or negotiation or a case to which the Authority is a party and with respect to which the Chairperson or such Member had, before cessation of office, acted for or provided advice to the Authority; (c) give advice to any person using information which was obtained in his capacity as the Chairperson or a Member and being unavailable to or not being able to be made available to the public; (d) enter into a contract of service with, or accept an appointment to a boardof directors of, or accept an offer of employment with, an entity with which he had direct and significant official dealings during his term of office as such. (2) The Chairperson and Members shall not communicate or reveal to any person any matter which has been brought under his consideration or known to him while acting as such. **28. Officers and other employees of Authority.—(1) The appropriate Government may, in** consultation with the Authority appoint such officers and employees as it considers necessary for the efficient discharge of their functions under this Act who would discharge their functions under the general superintendence of the Chairperson. 21 ----- (2) The salary and allowances payable to, and the other terms and conditions of service of, the officers and of the employees of the Authority appointed under sub-section (1) shall be such as may be prescribed. **29. Meetings of Authority.—(1) The Authority shall meet at such places and times, and shall follow** such rules of procedure in regard to the transaction of business at its meetings, (including quorum at such meetings), as may be specified by the regulations made by the Authority. (2) If the Chairperson for any reason, is unable to attend a meeting of the Authority, any other Member chosen by the Members present amongst themselves at the meeting, shall preside at the meeting. (3) All questions which come up before any meeting of the Authority shall be decided by a majority of votes by the Members present and voting, and in the event of an equality of votes, the Chairperson or in his absence, the person presiding shall have a second or casting vote. (4) The questions which come up before the Authority shall be dealt with as expeditiously as possible and the Authority shall dispose of the same within a period of sixty days from the date of receipt of the application: Provided that where any such application could not be disposed of within the said period of sixty days, the Authority shall record its reasons in writing for not disposing of the application within that period. **30. Vacancies, etc., not to invalidate proceeding of Authority.—No act or proceeding of the** Authority shall be invalid merely by reason of— (a) any vacancy in, or any defect in the constitution of, the Authority; or (b) any defect in the appointment of a person acting as a Member of the Authority; or (c) any irregularity in the procedure of the Authority not affecting the merits of the case. **31. Filing of complaints with the Authority or the adjudicating officer.—(1) Any aggrieved** person may file a complaint with the Authority or the adjudicating officer, as the case may be, for any violation or contravention of the provisions of this Act or the rules and regulations made thereunder, against any promoter, allottee or real estate agent, as the case may be. _Explanation.—For the purpose of this sub-section “person” shall include the association of allottees_ or any voluntary consumer association registered under any law for the time being in force. (2) The form, manner and fees for filing complaint under sub-section (1) shall be such as may be 1[prescribed]. **32. Functions of Authority for promotion of real estate sector.—The Authority shall in order to** facilitate the growth and promotion of a healthy, transparent, efficient and competitive real estate sector make recommendations to the appropriate Government or the competent authority, as the case may be, on,— (a) protection of interest of the allottees, promoter and real estate agent; (b) creation of a single window system for ensuring time bound project approvals and clearances for timely completion of the project; (c) creation of a transparent and robust grievance redressal mechanism against acts of omission and commission of competent authorities and their officials; (d) measures to encourage investment in the real estate sector including measures to increase financial assistance to affordable housing segment; (e) measures to encourage construction of environmentally sustainable and affordable housing, promoting standardisation and use of appropriate construction materials, fixtures, fittings and construction techniques; 1. Subs. by the Real Estate (Regulation and Development) Removal of Difficulties Order, 2016 [S.O. 3347 (E)], for “specified by regulations” (w.e.f. 28-10-2016). 22 ----- (f) measures to encourage grading of projects on various parameters of development including grading of promoters; (g) measures to facilitate amicable conciliation of disputes between the promoters and the allottees through dispute settlement forums set up by the consumer or promoter associations; (h) measures to facilitate digitization of land records and system towards conclusive property titles with title guarantee; (i) to render advice to the appropriate Government in matters relating to the development of real estate sector; (j) any other issue that the Authority may think necessary for the promotion of the real estate sector. **33. Advocacy and awareness measures.—(1) The appropriate Government may, while formulating** a policy on real estate sector (including review of laws related to real estate sector) or any other matter, make a reference to the Authority for its opinion on possible effect of such policy or law on real estate sector and on the receipt of such a reference, the Authority shall within a period of sixty days of making such reference, give its opinion to the appropriate Government, which may thereafter take further action as it deems fit. (2) The opinion given by the Authority under sub-section (1) shall not be binding upon the appropriate Government in formulating such policy or laws. (3) The Authority shall take suitable measures for the promotion of advocacy, creating awareness and imparting training about laws relating to real estate sector and policies. **34. Functions of Authority.—The functions of the Authority shall include—** (a) to register and regulate real estate projects and real estate agents registered under this Act; (b) to publish and maintain a website of records, for public viewing, of all real estate projects for which registration has been given, with such details as may be prescribed, including information provided in the application for which registration has been granted; (c) to maintain a database, on its website, for public viewing, and enter the names and photographs of promoters as defaulters including the project details, registration for which has been revoked or have been penalised under this Act, with reasons therefor, for access to the general public; (d) to maintain a database, on its website, for public viewing, and enter the names and photographs of real estate agents who have applied and registered under this Act, with such details as may be prescribed, including those whose registration has been rejected or revoked; (e) to fix through regulations for each areas under its jurisdiction the standard fees to be levied on the allottees or the promoter or the real estate agent, as the case may be; (f) to ensure compliance of the obligations cast upon the promoters, the allottees and the real estate agents under this Act and the rules and regulations made thereunder; (g) to ensure compliance of its regulations or orders or directions made in exercise of its powers under this Act; (h) to perform such other functions as may be entrusted to the Authority by the appropriate Government as may be necessary to carry out the provisions of this Act. **35. Powers of Authority to call for information, conduct investigations.—(1) Where the Authority** considers it expedient to do so, on a complaint or suomotu, relating to this Act or the rules or regulations made thereunder, it may, by order in writing and recording reasons therefor call upon any promoter or allottee or real estate agent, as the case may be, at any time to furnish in writing such information or explanation relating to its affairs as the Authority may require and appoint one or more persons to make an inquiry in relation to the affairs of any promoter or allottee or the real estate agent, as the case may be. 23 ----- (2) Notwithstanding anything contained in any other law for the time being in force, while exercising the powers under sub-section (1), the Authority shall have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) while trying a suit, in respect of the following matters, namely:— (i) the discovery and production of books of account and other documents, at such place and at such time as may be specified by the Authority; (ii) summoning and enforcing the attendance of persons and examining them on oath; (iii) issuing commissions for the examination of witnesses or documents; (iv) any other matter which may be prescribed. **36. Power to issue interim orders.—Where during an inquiry, the Authority is satisfied that an act in** contravention of this Act, or the rules and regulations made thereunder, has been committed and continues to be committed or that such act is about to be committed, the Authority may, by order, restrain any promoter, allottee or real estate agent from carrying on such act until the conclusion of such inquiry or until further orders, without giving notice to such party, where the Authority deems it necessary. **37. Powers of Authority to issue directions.—The Authority may, for the purpose of discharging its** functions under the provisions of this Act or rules or regulations made thereunder, issue such directions from time to time, to the promoters or allottees or real estate agents, as the case may be, as it may consider necessary and such directions shall be binding on all concerned. **38. Powers of Authority.—(1) The Authority shall have powers to impose penalty or interest, in** regard to any contravention of obligations cast upon the promoters, the allottees and the real estate agents, under this Act or the rules and the regulations made thereunder. (2) The Authority shall be guided by the principles of natural justice and, subject to the other provisions of this Act and the rules made thereunder, the Authority shall have powers to regulate its own procedure. (3) Where an issue is raised relating to agreement, action, omission, practice or procedure that— (a) has an appreciable prevention, restriction or distortion of competition in connection with the development of a real estate project; or (b) has effect of market power of monopoly situation being abused for affecting interest of allottees adversely, then the Authority, may, _suomotu, make reference in respect of such issue to the Competition_ Commission of India. **39. Rectification of orders.—The Authority may, at any time within a period of two years from the** date of the order made under this Act, with a view to rectifying any mistake apparent from the record, amend any order passed by it, and shall make such amendment, if the mistake is brought to its notice by the parties: Provided that no such amendment shall be made in respect of any order against which an appeal has been preferred under this Act: Provided further that the Authority shall not, while rectifying any mistake apparent from record, amend substantive part of its order passed under the provisions of this Act. **40. Recovery of interest or penalty or compensation and enforcement of order, etc.—(1) If a** promoter or an allottee or a real estate agent, as the case may be, fails to pay any interest or penalty or compensation imposed on him, by the adjudicating officer or the Regulatory Authority or the Appellate Authority, as the case may be, under this Act or the rules and regulations made thereunder, it shall be recoverable from such promoter or allottee or real estate agent, in such manner as may be prescribed as an arrears of land revenue. 24 ----- (2) If any adjudicating officer or the Regulatory Authority or the Appellate Tribunal, as the case may be, issues any order or directs any person to do any act, or refrain from doing any act, which it is empowered to do under this Act or the rules or regulations made thereunder, then in case of failure by any person to comply with such order or direction, the same shall be enforced, in such manner as may be prescribed. CHAPTER VI CENTRAL ADVISORY COUNCIL **41. Establishment of Central Advisory Council.—(1) The Central Government may, by** notification, establish with effect from such date as it may specify in such notification, a Council to be known as the Central Advisory Council. (2) The Minister to the Government of India in charge of the Ministry of the Central Government dealing with Housing shall be the ex officio Chairperson of the Central Advisory Council. (3) The Central Advisory Council shall consist of representatives of the Ministry of Finance, Ministry of Industry and Commerce, Ministry of Urban Development, Ministry of Consumer Affairs, Ministry of Corporate Affairs, Ministry of Law and Justice, Niti Aayog, National Housing Bank, Housing and Urban Development Corporation, five representatives of State Governments to be selected by rotation, five representatives of the Real Estate Regulatory Authorities to be selected by rotation, and any other Central Government department as notified. (4) The Central Advisory Council shall also consist of not more than ten members to represent the interests of real estate industry, consumers, real estate agents, construction labourers, non-governmental organisations and academic and research bodies in the real estate sector. **42. Functions of Central Advisory Council.—(1) The functions of the Central Advisory Council** shall be to advise and recommend the Central Government,— (a) on all matters concerning the implementation of this Act; (b) on major questions of policy; (c) towards protection of consumer interest; (d) to foster the growth and development of the real estate sector; (e) on any other matter as may be assigned to it by the Central Government. (2) The Central Government may specify the rules to give effect to the recommendations of the Central Advisory Council on matters as provided under sub-section (1). CHAPTER VII THE REAL ESTATE APPELLATE TRIBUNAL **43. Establishment of Real Estate Appellate Tribunal.—(1) The appropriate Government shall,** within a period of one year from the date of coming into force of this Act, by notification, establish an Appellate Tribunal to be known as the —(name of the State/Union territory) Real Estate Appellate Tribunal. (2) The appropriate Government may, if it deems necessary, establish one or more benches of the Appellate Tribunal, for various jurisdictions, in the State or Union territory, as the case may be. (3) Every bench of the Appellate Tribunal shall consist of at least one Judicial Member and one Administrative or Technical Member. (4) The appropriate Government of two or more States or Union territories may, if it deems fit, establish one single Appellate Tribunal: Provided that, until the establishment of an Appellate Tribunal under this section, the appropriate Government shall designate, by order, any Appellate Tribunal functioning under any law for the time being in force, to be the Appellate Tribunal to hear appeals under the Act: 25 ----- Provided further that after the Appellate Tribunal under this section is established, all matters pending with the Appellate Tribunal designated to hear appeals, shall stand transferred to the Appellate Tribunal so established and shall be heard from the stage such appeal is transferred. (5) Any person aggrieved by any direction or decision or order made by the Authority or by an adjudicating officer under this Act may prefer an appeal before the Appellate Tribunal having jurisdiction over the matter: Provided that where a promoter files an appeal with the Appellate Tribunal, it shall not be entertained, without the promoter first having deposited with the Appellate Tribunal atleast thirty per cent. of the penalty, or such higher percentage as may be determined by the Appellate Tribunal, or the total amount to be paid to the allottee including interest and compensation imposed on him, if any, or with both, as the case may be, before the said appeal is heard. _Explanation.—For the purpose of this sub-section “person” shall include the association of allottees_ or any voluntary consumer association registered under any law for the time being in force. **44. Application for settlement of disputes and appeals to Appellate Tribunal.—(1) The** appropriate Government or the competent authority or any person aggrieved by any direction or order or decision of the Authority or the adjudicating officer may prefer an appeal to the Appellate Tribunal. (2) Every appeal made under sub-section (1) shall be preferred within a period of sixty days from the date on which a copy of the direction or order or decision made by the Authority or the adjudicating officer is received by the appropriate Government or the competent authority or the aggrieved person and it shall be in such form and accompanied by such fee, as may be prescribed: Provided that the Appellate Tribunal may entertain any appeal after the expiry of sixty days if it is satisfied that there was sufficient cause for not filling it within that period. (3) On receipt of an appeal under sub-section (1), the Appellate Tribunal may after giving the parties an opportunity of being heard, pass such orders, including interim orders, as it thinks fit. (4) The Appellate Tribunal shall send a copy of every order made by it to the parties and to the Authority or the adjudicating officer, as the case may be. (5) The appeal preferred under sub-section (1), shall be dealt with by it as expeditiously as possible and endeavour shall be made by it to dispose of the appeal within a period of sixty days from the date of receipt of appeal: Provided that where any such appeal could not be disposed of within the said period of sixty days, the Appellate Tribunal shall record its reasons in writing for not disposing of the appeal within that period. (6) The Appellate Tribunal may, for the purpose of examining the legality or propriety or correctness of any order or decision of the Authority or the adjudicating officer, on its own motion or otherwise, call for the records relevant to deposing of such appeal and make such orders as it thinks fit. **45. Composition of Appellate Tribunal.—The Appellate Tribunal shall consist of a Chairperson and** not less than two whole time Members of which one shall be a Judicial member and other shall be a Technical or Administrative Member, to be appointed by the appropriate Government. _Explanation.—For the purposes of this Chapter,—_ (i) “Judicial Member” means a Member of the Appellate Tribunal appointed as such under clause (b) of sub-section (1) of section 46; (ii) “Technical or Administrative Member” means a Member of the Appellate Tribunal appointed as such under clause (c) of sub-section (1) of section 46. **46. Qualifications for appointment of Chairperson and Members.—(1) A person shall not be** qualified for appointment as the Chairperson or a Member of the Appellate Tribunal unless he,— (a) in the case of Chairperson, is or has been a Judge of a High Court; and 26 ----- (b) in the case of a Judicial Member he has held a judicial office in the territory of India for at least fifteen years or has been a member of the Indian Legal Service and has held the post of Additional Secretary of that service or any equivalent post, or has been an advocate for at least twenty years with experience in dealing with real estate matters; and (c) in the case of a Technical or Administrative Member, he is a person who is well-versed in the field of urban development, housing, real estate development, infrastructure, economics, planning, law, commerce, accountancy, industry, management, public affairs or administration and possesses experience of at least twenty years in the field or who has held the post in the Central Government or a State Government equivalent to the post of Additional Secretary to the Government of India or an equivalent post in the Central Government or an equivalent post in the State Government. (2) The Chairperson of the Appellate Tribunal shall be appointed by the appropriate Government in consultation with the Chief Justice of High Court or his nominee. (3) The Judicial Members and Technical or Administrative Members of the Appellate Tribunal shall be appointed by the appropriate Government on the recommendations of a Selection Committee consisting of the Chief Justice of the High Court or his nominee, the Secretary of the Department handling Housing and the Law Secretary and in such manner as may be prescribed. **47. Term of office of Chairperson and Members.—(1) The Chairperson of the Appellate Tribunal** or a Member of the Appellate Tribunal shall hold office, as such for a term not exceeding five years from the date on which he enters upon his office, but shall not be eligible for re-appointment: Provided that in case a person, who is or has been a Judge of a High Court, has been appointed as Chairperson of the Tribunal, he shall not hold office after he has attained the age of sixty-seven years: Provided further that no Judicial Member or Technical or Administrative Member shall hold office after he has attained the age of sixty-five years. (2) Before appointing any person as Chairperson or Member, the appropriate Government shall satisfy itself that the person does not have any such financial or other interest, as is likely to affect prejudicially his functions as such member. **48. Salary and allowances payable to Chairperson and Members.—(1) The salary and allowances** payable to, and the other terms and conditions of service of, the Chairperson and other Members shall be such as may be prescribed and shall not be varied to their disadvantage during their tenure. (2) Notwithstanding anything contained in sub-sections (1) and (2) of section 47, the Chairperson or a Member, as the case may be, may:— (a) relinquish his office by giving in writing to the appropriate Government a notice of not less than three months; (b) be removed from his office in accordance with the provisions of section 49. (3) A vacancy caused to the office of the Chairperson or any other Member, as the case may be, shall be filled-up within a period of three months from the date on which such vacancy occurs. **49. Removal of Chairperson and Member from office in certain circumstances.—(1) The** appropriate Government may, in consultation with the Chief Justice of the High Court, remove from office of the Chairperson or any Judicial Member or Technical or Administrative Member of the Appellate Tribunal, who— (a) has been adjudged as an insolvent; or (b) has been convicted of an offence which, in the opinion of the appropriate Government involves moral turpitude; or (c) has become physically or mentally incapable; or (d) has acquired such financial or other interest as is likely to affect prejudicially his functions; or 27 ----- (e) has so abused his position as to render his continuance in office prejudicial to the public interest. (2) The Chairperson or Judicial Member or Technical or Administrative Member shall not be removed from his office except by an order made by the appropriate Government after an inquiry made by the Judge of the High Court in which such Chairperson or Judicial Member or Technical or Administrative Member has been informed of the charges against him and given a reasonable opportunity of being heard in respect of those charges. (3) The appropriate Government may suspend from the office of the Chairperson or Judicial Member or Technical or Administrative Member in respect of whom a reference of conducting an inquiry has been made to the Judge of the High Court under sub-section (2), until the appropriate Government passes an order on receipt of the report of inquiry made by the Judge of the High Court on such reference. (4) The appropriate Government may, by rules, regulate the procedure for inquiry referred to in sub-section (2). **50. Restrictions on Chairperson or Judicial Member or Technical or Administrative Member** **on employment after cessation of office.—(1) The Chairperson or Judicial Member or Technical or** Administrative Member, ceasing to hold office as such shall not:— (a) accept any employment in, or connected with, the management or administration of, any person or organisation which has been associated with any work under this Act, from the date on which he ceases to hold office: Provided that nothing contained in this clause shall apply to any employment under the appropriate Government or a local authority or in any statutory authority or any corporation established by or under any Central, State or Provincial Act or a Government Company as defined under clause (45) of section 2 of the Companies Act, 2013 (18 of 2013), which is not a promoter as per the provisions of this Act; (b) act, for or on behalf of any person or organisation in connection with any specific proceeding or transaction or negotiation or a case to which the Authority is a party and with respect to which the Chairperson or Judicial Member or Technical or Administrative Member had, before cessation of office, acted for or provided advice to, the Authority; (c) give advice to any person using information which was obtained in his capacity as the Chairperson or Judicial Member or Technical or Administrative Member and being unavailable to or not being able to be made available to the public; (d) enter into a contract of service with, or accept an appointment to a board of directors of, or accept an offer of employment with, an entity with which he had direct and significant official dealings during his term of office as such. (2) The Chairperson or Judicial Member or Technical or Administrative Member shall not communicate or reveal to any person any matter which has been brought under his consideration or known to him while acting as such. **51. Officers and other employees of Appellate Tribunal.—(1) The appropriate Government shall** provide the Appellate Tribunal with such officers and employees as it may deem fit. (2) The officers and employees of the Appellate Tribunal shall discharge their functions under the general superintendence of its Chairperson. (3) The salary and allowances payable to, and the other terms and conditions of service of, the officers and employees of the Appellate Tribunal shall be such as may be prescribed. **52. Vacancies.—If, for reason other than temporary absence, any vacancy occurs in the office of the** Chairperson or a Member of the Appellate Tribunal, the appropriate Government shall appoint another person in accordance with the provisions of this Act to fill the vacancy and the proceedings may be continued before the Appellate Tribunal from the stage at which the vacancy is filled. 28 ----- **53. Powers of Tribunal.—(1)The Appellate Tribunal shall not be bound by the procedure laid down** by the Code of Civil Procedure, 1908 (5 of 1908) but shall be guided by the principles of natural justice. (2) Subject to the provisions of this Act, the Appellate Tribunal shall have power to regulate its own procedure. (3) The Appellate Tribunal shall also not be bound by the rules of evidence contained in the Indian Evidence Act, 1872 (1 of 1872). (4) The Appellate Tribunal shall have, for the purpose of discharging its functions under this Act, the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) in respect of the following matters, namely:— (a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of documents; (c) receiving evidence on affidavits; (d) issuing commissions for the examinations of witnesses or documents; (e) reviewing its decisions; (f) dismissing an application for default or directing it ex parte; and (g) any other matter which may be prescribed. (5) All proceedings before the Appellate Tribunal shall be deemed to be judicial proceedings within the meaning of sections 193, 219 and 228 for the purposes of section 196 of the Indian Penal Code (45 of 1860), and the Appellate Tribunal shall be deemed to be civil court for the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). **54. Administrative powers of Chairperson of Appellate Tribunal.—The Chairperson shall have** powers of general superintendence and direction in the conduct of the affairs of Appellate Tribunal and he shall, in addition to presiding over the meetings of the Appellate Tribunal, exercise and discharge such administrative powers and functions of the Appellate Tribunal as may be prescribed. **55. Vacancies, etc., not to invalidate proceeding of Appellate Tribunal.—No act or proceeding of** the Appellate Tribunal shall be invalid merely by reason of— (a) any vacancy in, or any defect in the constitution of, the Appellate Tribunal; or (b) any defect in the appointment of a person acting as a Member of the Appellate Tribunal; or (c) any irregularity in the procedure of the Appellate Tribunal not affecting the merits of the case. **56. Right to legal representation.—The applicant or appellant may either appear in person or** authorise one or more chartered accountants or company secretaries or cost accountants or legal practitioners or any of its officers to present his or its case before the Appellate Tribunal or the Regulatory Authority or the adjudicating officer, as the case may be. _Explanation.—For the purposes of this section,—_ (a) “chartered accountant” means a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949 (38 of 1949) or any other law for the time being in force and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act; (b) “company secretary” means a company secretary as defined in clause (c) of sub-section (1) of section 2 of the Company Secretaries Act, 1980 (56 of 1980) or any other law for the time being in force and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act; (c) “cost accountant” means a cost accountant as defined in clause (b) of sub-section (1) of section 2 of the Cost and Works Accountants Act, 1959 (23 of 1959) or any other law for the time 29 ----- being in force and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act; (d) “legal practitioner” means an advocate, vakil or an attorney of any High Court, and includes a pleader in practice. **57. Orders passed by Appellate Tribunal to be executable as a decree.—(1) Every order made by** the Appellate Tribunal under this Act shall be executable by the Appellate Tribunal as a decree of civil court, and for this purpose, the Appellate Tribunal shall have all the powers of a civil court. (2) Notwithstanding anything contained in sub-section (1), the Appellate Tribunal may transmit any order made by it to a civil court having local jurisdiction and such civil court shall execute the order as if it were a decree made by the court. **58. Appeal to High Court.—(1) Any person aggrieved by any decision or order of the Appellate** Tribunal, may, file an appeal to the High Court, within a period of sixty days from the date of communication of the decision or order of the Appellate Tribunal, to him, on any one or more of the grounds specified in section 100 of the Code of Civil Procedure, 1908 (5 of 1908): Provided that the High Court may entertain the appeal after the expiry of the said period of sixty days, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal in time. _Explanation.—The expression “High Court” means the High Court of a State or Union territory_ where the real estate project is situated. (2) No appeal shall lie against any decision or order made by the Appellate Tribunal with the consent of the parties. CHAPTER VIII OFFENCES, PENALTIES AND ADJUDICATION **59. Punishment for nonregistration under section 3.—(1) If any promoter contravenes the** provisions of section 3, he shall be liable to a penalty which may extend up to ten per cent. of the estimated cost of the real estate project as determined by the Authority. (2) If any promoter does not comply with the orders, decisions or directions issued under sub-section (1) or continues to violate the provisions of section 3, he shall be punishable with imprisonment for a term which may extend up to three years or with fine which may extend up to a further ten per cent. of the estimated cost of the real estate project, or with both. **60. Penalty for contravention of section 4.—If any promoter provides false information or** contravenes the provisions of section 4, he shall be liable to a penalty which may extend up to five per cent. of the estimated cost of the real estate project, as determined by the Authority. **61. Penalty for contravention of other provisions of this Act.—If any promoter contravenes any** other provisions of this Act, other than that provided under section 3 or section 4, or the rules or regulations made thereunder, he shall be liable to a penalty which may extend up to five per cent. of the estimated cost of the real estate project as determined by the Authority. **62. Penalty for nonregistration and contravention under sections 9 and 10.—If any real estate** agent fails to comply with or contravenes the provisions of section 9 or section 10, he shall be liable to a penalty of ten thousand rupees for every day during which such default continues, which may cumulatively extend up to five per cent. of the cost of plot, apartment or building, as the case may be, of the real estate project, for which the sale or purchase has been facilitated as determined by the Authority. **63. Penalty for failure to comply with orders of Authority by promoter.—If any promoter, who** fails to comply with, or contravenes any of the orders or directions of the Authority, he shall be liable to a penalty for every day during which such default continues, which may cumulatively extend up to five per cent., of the estimated cost of the real estate project as determined by the Authority. **64. Penalty for failure to comply with orders of Appellate Tribunal by promoter.—If any** promoter, who fails to comply with, or contravenes any of the orders, decisions or directions of the 30 ----- Appellate Tribunal, he shall be punishable with imprisonment for a term which may extend up to three years or with fine for every day during which such default continues, which may cumulatively extend up to ten per cent. of the estimated cost of the real estate project, or with both. **65. Penalty for failure to comply with orders of Authority by real estate agent.—If any real estate** agent, who fails to comply with, or contravenes any of the orders or directions of the Authority, he shall be liable to a penalty for every day during which such default continues, which may cumulatively extend up to five per cent., of the estimated cost of plot, apartment or building, as the case may be, of the real estate project, for which the sale or purchase has been facilitated and as determined by the Authority. **66. Penalty for failure to comply with orders of Appellate Tribunal by real estate agent.—If any** real estate agent, who fails to comply with, or contravenes any of the orders, decisions or directions of the Appellate Tribunal, he shall be punishable with imprisonment for a term which may extend up to one year or with fine for every day during which such default continues, which may cumulatively extend up to ten per cent. of the estimated cost of plot, apartment or building, as the case may be, of the real estate project, for which the sale or purchase has been facilitated, or with both. **67. Penalty for failure to comply with orders of Authority by allottee.—If any allottee, who fails** to comply with, or contravenes any of the orders, decisions or directions of the Authority he shall be liable to a penalty for the period during which such default continues, which may cumulatively extend up to five per cent. of the plot, apartment or building cost, as the case may be, as determined by the Authority. **68. Penalty for failure to comply with orders of Appellate Tribunal by allottee.—If any allottee,** who fails to comply with, or contravenes any of the orders or directions of the Appellate Tribunal, as the case may be, he shall be punishable with imprisonment for a term which may extend up to one year or with fine for every day during which such default continues, which may cumulatively extend up to ten per cent. of the plot, apartment or building cost, as the case may be, or with both. **69. Offences by companies.—(1) Where an Offence under this Act has been committed by a** company, every person who, at the time, the offence was committed was in charge of, or was responsible to the company for the conduct of, the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section, shall render any such person liable to any punishment under this Act if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company, and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. _Explanation.—For the purpose of this section,—_ (a) “company” means any body corporate and includes a firm, or other association of individuals; and (b) “director” in relation to a firm, means a partner in the firm. **70. Compounding of offences.—Notwithstanding anything contained in the Code of Criminal** Procedure, 1973 (2 of 1974), if any person is punished with imprisonment under this Act, the punishment may, either before or after the institution of the prosecution, be compounded by the court on such terms and conditions and on payment of such sums as may be prescribed: Provided that the sum prescribed shall not, in any case, exceed the maximum amount of the fine which may be imposed for the offence so compounded. **71. Power to adjudicate.—(1) For the purpose of adjudging compensation under sections 12, 14, 18** and section 19, the Authority shall appoint, in consultation with the appropriate Government, one or more judicial officer as deemed necessary, who is or has been a District Judge to be an adjudicating officer for 31 ----- holding an inquiry in the prescribed manner, after giving any person concerned a reasonable opportunity of being heard: Provided that any person whose complaint in respect of matters covered under sections 12, 14, 18 and section 19 is pending before the Consumer Disputes Redressal Forum or the Consumer Disputes Redressal Commission or the National Consumer Redressal Commission, established under section 9 of the Consumer Protection Act, 1986 (68 of 1986), on or before the commencement of this Act, he may, with the permission of such Forum or Commission, as the case may be, withdraw the complaint pending before it and file an application before the adjudicating officer under this Act. (2) The application for adjudging compensation under sub-section (1), shall be dealt with by the adjudicating officer as expeditiously as possible and dispose of the same within a period of sixty days from the date of receipt of the application: Provided that where any such application could not be disposed of within the said period of sixty days, the adjudicating officer shall record his reasons in writing for not disposing of the application within that period. (3) While holding an inquiry the adjudicating officer shall have power to summon and enforce the attendance of any person acquainted with the facts and circumstances of the case to give evidence or to produce any document which in the opinion of the adjudicating officer, may be useful for or relevant to the subject matter of the inquiry and if, on such inquiry, he is satisfied that the person has failed to comply with the provisions of any of the sections specified in sub-section (1), he may direct to pay such compensation or interest, as the case any be, as he thinks fit in accordance with the provisions of any of those sections. **72. Factors to be taken into account by the adjudicating officer.—While adjudging the quantum** of compensation or interest, as the case may be, under section 71, the adjudicating officer shall have due regard to the following factors, namely:— (a) the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default; (b) the amount of loss caused as a result of the default; (c) the repetitive nature of the default; (d) such other factors which the adjudicating officer considers necessary to the case in furtherance of justice. CHAPTER IX FINANCE, ACCOUNTS, AUDITS AND REPORTS **73. Grants and loans by Central Government.—The Central Government may, after due** appropriation made by Parliament in this behalf, make to the Authority grants and loans of such sums of money as that Government may consider necessary. **74. Grants and loans by State Government.—The State Government may, after due appropriation** made by State Legislature by law in this behalf, make to the Authority, grants and loans of such sums of money as the State Government may think fit for being utilised for the purposes of this Act. **75. Constitution of Fund.—(1) The appropriate Government shall constitute a fund to be called the** 'Real Estate Regulatory Fund’ and there shall be credited thereto,— (a) all Government grants received by the Authority; (b) the fees received under this Act; (c) the interest accrued on the amounts referred to in clauses (a) to (b). 32 ----- (2) The Fund shall be applied for meeting— (a) the salaries and allowances payable to the Chairperson and other Members, the adjudicating officer and the administrative expenses including the salaries and allowances payable to the officers and other employees of the Authority and the Appellate Tribunal; (b) the other expenses of the Authority in connection with the discharge of its functions and for the purposes of this Act. (3) The Fund shall be administered by a committee of such Members of the Authority as may be determined by the Chairperson. (4) The committee appointed under sub-section (3) shall spend monies out of the Fund for carrying out the objects for which the Fund has been constituted. **76. Crediting sums realised by way of penalties to Consolidated Fund of India or State** **account.—(1) All sums realised, by way of penalties, imposed by the Appellate Tribunal or the** Authority, in the Union territories, shall be credited to the Consolidated Fund of India. (2) All sums realised, by way of penalties, imposed by the Appellate Tribunal or the Authority, in a State, shall be credited to such account as the State Government may specify. **77. Budget, accounts and audit.—(1) The Authority shall prepare a budget, maintain proper** accounts and other relevant records and prepare an annual statement of accounts in such form as may be prescribed by the appropriate Government in consultation with the Comptroller and Auditor General of India. (2) The accounts of the Authority shall be audited by the Comptroller and Auditor General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Authority to the Comptroller and Auditor General of India. (3) The Comptroller and Auditor-General and any person appointed by him in connection with the audit of the accounts of the Authority under this Act shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor General generally has in connection with the audit of Government accounts and, in particular shall have the right to demand and production of books, accounts, connected vouchers and other documents and papers, and to inspect any of the offices of the Authority. (4) The accounts of the Authority, as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf, together with the audit report thereon shall be forwarded annually to the appropriate Government by the Authority and the appropriate Government shall cause the audit report to be laid, as soon as may be after it is received, before each House of Parliament or, as the case may be, before the State Legislature or the Union territory Legislature, where it consists of two Houses, or where such legislature consists of one House, before that House. **78. Annual report.—(1) The Authority shall prepare once in every year, in such form and at such** time as may be prescribed by the appropriate Government,— (a) a description of all the activities of the Authority for the previous year; (b) the annual accounts for the previous year; and (c) the programmes of work for the coming year. (2) A copy of the report received under sub-section (1) shall be laid, as soon as may be after it is received, before each House of Parliament or, as the case may be, before the State Legislature or the Union Territory Legislature, where it consists of two Houses, or where such legislature consists of one House, before that House. 33 ----- CHAPTER X MISCELLANEOUS **79. Bar of jurisdiction.—No civil court shall have jurisdiction to entertain any suit or proceeding in** respect of any matter which the Authority or the adjudicating officer or the Appellate Tribunal is empowered by or under this Act to determine and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act. **80. Cognizance of offences.—(1) No court shall take cognizance of any offence punishable under** this Act or the rules or regulations made thereunder save on a complaint in writing made by the Authority or by any officer of the Authority duly authorised by it for this purpose. (2) No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence punishable under this Act. **81. Delegation.—The Authority may, by general or special order in writing, delegate to any member,** officer of the Authority or any other person subject to such conditions, if any, as may be specified in the order, such of its powers and functions under this Act (except the power to make regulations under section 85), as it may deem necessary. **82. Power of appropriate Government to supersede Authority.—(1) If, at any time, the** appropriate Government is of the opinion,— (a) that, on account of circumstances beyond the control of the Authority, it is unable to discharge the functions or perform the duties imposed on it by or under the provisions of this Act; or (b) that the Authority has persistently defaulted in complying with any direction given by the appropriate Government under this Act or in the discharge of the functions or performance of the duties imposed on it by or under the provisions of this Act and as a result of such default the financial position of the Authority or the administration of the Authority has suffered; or (c) that circumstances exist which render it necessary in the public interest so to do, the appropriate Government may, by notification, supersede the Authority for such period, not exceeding six months, as may be specified in the notification and appoint a person or persons as the President or the Governor, as the case may be, may direct to exercise powers and discharge functions under this Act: Provided that before issuing any such notification, the appropriate Government shall give a reasonable opportunity to the Authority to make representations against the proposed supersession and shall consider the representations, if any, of the Authority. (2) Upon the publication of a notification under sub-section (1) superseding the Authority,— (a) the Chairperson and other Members shall, as from the date of supersession, vacate their offices as such; (b) all the powers, functions and duties which may, by or under the provisions of this Act, be exercised or discharged by or on behalf of the Authority shall, until the Authority is reconstituted under sub-section (3), be exercised and discharged by the person or persons referred to in sub-section (1); and (c) all properties owned or controlled by the Authority shall, until the Authority is reconstituted under sub-section (3), vest in the appropriate Government. (3) On or before the expiration of the period of supersession specified in the notification issued under sub-section (1), the appropriate Government shall reconstitute the Authority by a fresh appointment of its Chairperson and other members and in such case any person who had vacated his office under clause (a) of sub-section (2) shall not be deemed to be disqualified for re-appointment. (4) The appropriate Government shall cause a copy of the notification issued under sub-section (1) and a full report of any action taken under this section and the circumstances leading to such action to be laid before each House of Parliament or, as the case may be, before the State Legislature, or the Union 34 ----- Territory Legislature, as the case may be, where it consists of two Houses, or where such legislature consists of one House, before that House. **83. Powers of appropriate Government to issue directions to Authority and obtain reports and** **returns.—(1) Without prejudice to the foregoing provisions of this Act, the Authority shall, in exercise of** its powers and in performance of its functions under this Act, be bound by such directions on questions of policy, as the appropriate Government may give in writing to it from time to time: Provided that the Authority shall, as far as practicable, be given an opportunity to express its views before any direction is given under this sub-section. (2) If any dispute arises between the appropriate Government and the Authority as to whether a question is or is not a question of policy, the decision of the appropriate Government thereon shall be final. (3) The Authority shall furnish to the appropriate Government such returns or other information with respect to its activities as the appropriate Government may, from time to time, require. **84. Power of appropriate Government to make rules.—(1) The appropriate Government shall,** within a period of six months of the commencement of this Act, by notification, make rules for carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— 1[(a) the form, time and manner of making application and fees payable therewith under sub-section (1) of section 4; (ab) information and documents for application to the Authority for registration under clause (m) of sub-section (2) of section 4; (ac) the form of application and the fees for extension of registration under section 6;] (b) the form and manner of making application and fee and documents to be accompanied with such application as under sub-section (2) of section 9; (c) the period, manner and conditions under which the registration is to be granted under sub-section (3) of section 9; (d) the validity of the period of registration and the manner and fee for renewal under sub-section (6) of section 9; (e) the maintenance and preservation of books of account, records and documents under clause (b) of section 10; (f) the discharge of other functions by the real estate agent under clause (e) of section 10; (g) the rate of interest payable under section 12; (h) the form and particulars of agreement for sale under sub-section (2) of section 13; (i) the rate of interest payable under clause (b) of sub-section (1) of section 18; (j) the rate of interest payable under sub-section (4) of section 19; (k) the rate of interest payable under sub-section (7) of section 19; (l) the manner of selection of Chairperson and Members of Authority under section 22; (m) the salaries and allowances payable to, and the other terms and conditions of service of, the Chairperson and other Members of the Authority under sub-section (1) of section 24; (n) the administrative powers of the Chairpersons under section 25; 1. Subs. by the Real Estate (Regulation and Development) Removal of Difficulties Order, 2016 [S.O. 3347(E)], for clause (a) (w.e.f. 28-10-2016). 35 ----- (o) the salaries and allowances payable to, and the other terms and conditions of service of, the officers and other employees of the Authority under sub-section (2) of section 28; 1[(oa) the form, manner and fees for filing of a complaint under sub-section (2) of section 31;] (p) the details to be published on the website as under clause (b) and under clause (d) of section 34; (q) the additional functions which may be performed by the Authority under clause (iv) of sub-section (2) of section 35; (r) the manner of recovery of interest, penalty and compensation under sub-section (1) of section 40; (s) the manner of implementation of the order, direction or decisions of the adjudicating officer, the Authority or the Appellate Tribunal under sub-section (2) of section 40; (t)recommendations received from the Central Advisory Council under sub-section (2) of section 42; (u) the form and manner and fee for filing of appeal under sub-section (2) of section 44; (v) the manner of selection of Members of the Tribunal under sub-section (3) of section 46; (w) the salaries and allowances payable to, and the other terms and conditions of service of, the Chairperson and other Members of the Appellate Tribunal under sub-section (1) of section 48; (x) the procedure for inquiry of the charges against the Chairperson or Judicial Member of the Tribunal under sub-section (4) of section 49; (y) the salaries and allowances payable to, and the other terms and conditions of service of, the officers and employees of the Appellate Tribunal under sub-section (3) of section 51; (z) any other powers of the Tribunal under clause (g) of sub-section (4) of section 53; (za) the powers of the Chairperson of the Appellate Tribunal under section 54; (zb) the terms and conditions and the payment of such sum for compounding of the offences under section 70; (zc) the manner of inquiry under sub-section (1) of section 71; (zd) the form to be specified in which the Authority shall prepare a budget, maintain proper accounts and other relevant records and prepare an annual statement of accounts under sub-section (1) of section 77; (ze) the form in which and time at which the Authority shall prepare an annual report under sub-section (1) of section 78; (zf) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be made, by rules. **85. Power to make regulations.—(1) The Authority shall, within a period of three months of its** establishment, by notification, make regulations, consistent with this Act and the rules made thereunder to carry out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:— 2* - - - (c) such other information and documents required under clause (f) of sub-section (1) of section 11; 1. Ins. by the Real Estate (Regulation and Development) Removal of Difficulties Order, 2016 [S.O. 3347(E)], (w.e.f. 28-10-2016). 2. Omitted by ibid. (w.e.f. 28-10-2016). 36 ----- (d) display of sanctioned plans, layout plans along with specifications, approved by the competent authority, for display under clause (a) of sub-section (3) of section 11; (e) preparation and maintenance of other details under sub-section (6) of section 11; (f) time, places and the procedure in regard to transaction of business at the meetings of the Authority under sub-section (1) of section 29; 1* - - - (h) standard fees to be levied on the promoter, the allottees or the real estate agent under clause (e) of section 34; (i) any other matter which is required to be, or may be, specified by regulation or in respect of which provision is to be made by regulations. **86. Laying of rules.—(1) Every rule made by the Central Government, every regulation made by the** Authority under the Union territory of Delhi and the Union territories without Legislature and every notification issued by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or in the notification, as the case may be, or both Houses agree that the rule or regulation or the notification should not be made, the rule or regulation or notification, as the case may be, shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation or notification, as the case may be. (2) Every rule made by a State Government or the Union territory Government, as the case may be, every regulation made by the Authority under the State Government or [2][the Union territory Government of Puducherry or the Union territory Government of Jammu and Kashmir], as the case may be, and every notification issued by the State Government or [2][the Union territory Government of Puducherry or the Union territory Government of Jammu and Kashmir], as the case may be, under this Act, shall be laid as soon as may be, after it is made, before the State Legislature, or the Union territory Legislature, as the case may be, where it consists of two Houses, or where such legislature consists of one House, before that House. **87. Members, etc., to be public servants.—The Chairperson, Members and other officers and** employees of the Authority, and the Appellate Tribunal and the adjudicating officer shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). **88. Application of other laws not barred.—The provisions of this Act shall be in addition to, and** not in derogation of, the provisions of any other law for the time being in force. **89. Act to have overriding effect.—The provisions of this Act shall have effect, notwithstanding** anything inconsistent therewith contained in any other law for the time being in force. **90. Protection of action taken in good faith.—No suit, prosecution or other legal proceedings shall** lie against the appropriate Government or the Authority or any officer of the appropriate Government or any member, officer or other employees of the Authority for anything which is in good faith done or intended to be done under this Act or the rules or regulations made thereunder. **91. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of** this Act, the Central Government may, by order, published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty: Provided that no order shall be made under this section after the expiry of two years from the date of the commencement of this Act. 1. Omitted by the Real Estate (Regulation and Development) Removal of Difficulties Order, 2016 [S.O. 3347 (E)], (w.e.f. 28-10-2016). 2. Subs. by the Jammu and Kashmir Reorganization (Adaptation of Central Laws) Third Order, 2020, vide notification No. S.O. 3807(E) dated (26-10-2020). 37 ----- (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. **92. Repeal.—The Maharashtra Housing (Regulation and Development) Act, 2012 (Maharashtra Act** No. II of 2014) is hereby repealed. 38 -----

6-May-2016

23

The Repealing and Amending Act, 2016

https://www.indiacode.nic.in/bitstream/123456789/12141/1/a2016____23.pdf

central

# THE REPEALING AND AMENDING ACT, 2016 ## _________ ARRANGEMENT OF SECTIONS _________ SECTIONS 1. Short title. 2. Repeal of certain enactments. 3. Amendment of certain enactments. 4. Savings. THE FIRST SCHEDULE THE SECOND SCHEDULE ## 1 ----- # THE REPEALING AND AMENDING ACT, 2016 ACT NO. 23 OF 2016 ## [6th May, 2016.] # An Act to repeal certain enactments and to amend certain other enactments. ## BE it enacted by Parliament in the Sixty-seventh Year of the Republic of India as follows:— 1. Short title. — This Act may be called the Repealing and Amending Act, 2016. 2. Repeal of certain enactments.—The enactments specified in the First Schedule are hereby repealed to the extent mentioned in the fourth column thereof. 3. Amendment of certain enactments. — The enactments specified in the Second Schedule are hereby amended to the extent and in the manner mentioned in the fourth column thereof. 4. Savings. —The repeal by this Act of any enactment shall not affect any other enactment in which the repealed enactment has been applied, incorporated or referred to; and this Act shall not affect the validity, invalidity, effect or consequences of anything already done or suffered, or any right, title, obligation or liability already acquired, accrued or incurred, or any remedy or proceeding in respect thereof, or any release or discharge of or from any debt, penalty, obligation, liability, claim or demand, or any indemnity already granted, or the proof of any past act or thing; nor shall this Act affect any principle or rule of law, or established jurisdiction, form or course of pleading, practice or procedure, or existing usage, custom, privilege, restriction, exemption, office or appointment, notwithstanding that the same respectively may have been in any manner affirmed or recognised or derived by, in or from any enactment hereby repealed; nor shall the repeal by this Act of any enactment revive or restore any jurisdiction, office, custom, liability, right, title, privilege, restriction, exemption, usage, practice, procedure or other matter or thing not now existing or in force. 2 ----- THE FIRST SCHEDULE (See section 2) REPEALS Year No. Short title Extent of repeal 1 2 3 4 1863 16 The Excise (Spirits) Act, 1863 So much as is not repealed. 1874 4 The Foreign Recruiting Act, 1874 So much as is not repealed. 1875 18 The Indian Law Reports Act, 1875 So much as is not repealed. 1879 6 The Elephants Preservation Act, 1879 So much as is not repealed. 1890 13 The Excise (Malt Liquors) Act, 1890 The whole. 1898 3 The Lepers Act, 1898 The whole. 1902 4 The Indian Tramways Act, 1902 The whole. 1912 8 The Wild Birds and Animals Protection Act, 1912 So much as is not repealed. 1913 6 The MussalmanWakf Validating Act, 1913 The whole. 1916 7 The Indian Medical Degrees Act, 1916 The whole. 1919 1 The Local Authorities Pensions and Gratuities Act, 1919 The whole. 1930 32 The MussalmanWakf Validating Act, 1930 The whole. 1933 2 The Children (Pledging of Labour) Act, 1933 The whole. 1936 18 The Red Cross Society (Allocation of Property) Act, 1936 The whole. 1936 22 The Indian Companies (Amendment) Act, 1936 The whole. 1938 24 The Employers’ Liability Act, 1938 The whole. 1940 12 The Income-tax Law Amendment Act, 1940 So much as is not repealed. 1941 22 The Indian Merchant Shipping The whole. (Amendment) Act, 1941 ## 3 ----- 1 2 3 4 1941 23 The Indian Income-tax (Amendment) Act, 1941 The whole. 1941 24 The Excess Profits Tax (Second Amendment) Act, 1941 The whole. 1941 25 The Railways (Local Authorities' Taxation) Act, 1941 The whole. 1947 44 The Income-tax and Business Profits Tax (Amendment) Act, 1947 The whole. 1947 45 The Indian Trade Unions (Amendment) Act, 1947 The whole. 1948 38 The Continuance of Legal Proceedings Act, 1948 The whole. 1948 48 The Income-tax and Business Profits Tax (Amendment) Act, 1948 The whole. 1948 58 The Exchange of Prisoners Act, 1948 The whole. 1948 60 The Resettlement of Displaced Persons (Land Acquisition) Act, 1948 1949 24 The Delhi Hotels (Control of Accommodation) Act, 1949 1949 53 The Indian Merchant Shipping (Amendment) Act, 1949 The whole. The whole. The whole. 1949 59 The Merged States (Laws) Act, 1949 The whole. 1950 9 The Indian Tea Control (Amendment) Act, 1950 The whole. 1950 26 The Drugs (Control) Act, 1950 So much as is not repealed. 1950 52 The Essential Supplies (Temporary Powers) Amendment Act, 1950 The whole. 1950 71 The Indian Income-tax (Amendment) Act, 1950 The whole. 1950 72 The Essential Supplies (Temporary Powers) Second Amendment Act, 1950 The whole. 1951 42 The Indian Merchant Shipping (Amendment) Act, 1951 The whole. 1951 59 The Delhi Premises (Requisition and Eviction) Amendment Act, 1951 1952 9 The Indian Independence Pakistan Courts (Pending Proceedings) Act, 1952 The whole. So much as is not repealed. 1952 49 The Indian Tea Control (Amendment) Act, 1952 The whole. 1952 54 The Central Tea Board (Amendment) Act, 1952 The whole. 1953 23 The Indian Merchant Shipping (Amendment) Act, 1953 The whole. 1953 25 The Indian Income-tax (Amendment) Act, 1953 The whole. ## 4 ----- 1 2 3 4 1953 54 The Reserve Bank of India (Amendment and So much as is not repealed. Miscellaneous Provisions) Act, 1953 1954 9 The Control of Shipping (Amendment) Act, 1954 The whole. 1954 13 The Press (Objectionable Matter) Amendment Act, The whole. 1954 1954 23 The State Acquisition of Lands for Union Purposes The whole. (Validation) Act, 1954 1954 33 The Indian Income-tax (Amendment) Act, 1954 The whole. 1954 41 The Taxation Laws (Extension to Jammu and Kashmir) The whole. Act, 1954 1954 53 The Prevention of Disqualification (Parliament and Part C States Legislatures) Second Amendment Act, 1954 The whole. 1955 29 The Industrial Disputes (Appellate Tribunal) The whole. Amendment Act, 1955 1955 52 The Prevention of Disqualification (Parliament and The whole. Part C States Legislatures) Amendment Act, 1955 1956 10 The Control of Shipping (Continuance) Act, 1956 The whole. 1956 26 The Indian Income-tax (Amendment) Act, 1956 The whole. 1956 36 The Industrial Disputes (Amendment and So much as is not repealed. Miscellaneous Provisions) Act, 1956 1956 45 The Newspaper (Price and Page) Act, 1956 The whole. 1956 52 The Government Premises (Eviction) Amendment Act, The whole. 1956 1956 63 The Scheduled Castes and Scheduled Tribes Orders The whole. (Amendment) Act, 1956 1956 95 The Banking Companies (Amendment) Act, 1956 So much as is not repealed. 1957 17 The Life Insurance Corporation (Amendment) Act, 1957 So much as is not repealed. 1957 47 The Indian Telegraph (Amendment) Act, 1957 The whole. 1957 53 The Indian Railways (Amendment) Act, 1957 So much as is not repealed. 1957 64 The Prevention of Disqualification (Amendment) Act, The whole. 1957 1958 9 The Control of Shipping (Continuance) Act, 1958 The whole. 1958 33 The Estate Duty (Amendment) Act, 1958 So much as is not repealed. 1958 35 The Manipur and Tripura (Repeal of Laws) Act, 1958 The whole. 1958 54 The Prevention of Disqualification (Amendment) Act, The whole. 1958 1959 1 The Indian Income-tax (Amendment) Act, 1959 The whole. 1959 17 The Coal Grading Board (Repeal) Act, 1959 The whole. ## 5 ----- 1 2 3 4 1959 29 The Public Wakfs (Extension of Limitation) The whole. Act, 1959 1960 16 The Estate Duty (Amendment) Act, 1960 So much as is not repealed. 1960 18 The Indian Boilers (Amendment) Act, 1960 So much as is not repealed. 1960 28 The Taxation Laws (Amendment) Act, 1960 The whole. 1960 45 The Indian Museum (Amendment) Act, 1960 So much as is not repealed. 1960 54 The Railway Passenger Fares (Amendment) Act, The whole. 1960 1960 65 The Companies (Amendment) Act, 1960 So much as is not repealed. 1961 7 The Banking Companies (Amendment) Act, 1961 So much as is not repealed. 1961 36 The Newspaper (Price and Page) Continuance Act, The whole. 1961 1961 55 The Sugar (Regulation of Production) Act, 1961 The whole. 1962 17 The Air Corporations (Amendment) Act, 1962 So much as is not repealed. 1962 43 The Companies (Amendment) Act, 1962 The whole. 1962 56 The State-Associated Banks (Miscellaneous So much as is not repealed. Provisions) Act, 1962 1962 59 The Personal Injuries (Emergency Provisions) Act, The whole. 1962 1963 21 The Compulsory Deposit Scheme Act, 1963 The whole. 1963 37 The Personal Injuries (Compensation Insurance) The whole. Act, 1963 1963 53 The Companies (Amendment) Act, 1963 The whole. 1964 32 The Companies (Amendment) Act, 1964 The whole. 1965 23 The Banking Laws (Application to Co-operative So much as is not repealed. Societies) Act, 1965 1965 31 The Companies (Amendment) Act, 1965 The whole. 1966 21 The Merchant Shipping (Amendment) Act, 1966 So much as is not repealed. 1966 30 The Electricity (Supply) Amendment Act, 1966 So much as is not repealed. 1966 37 The Companies (Second Amendment) Act, 1966 The whole. 1967 14 The Essential Commodities (Amendment) Act, 1967 So much as is not repealed. 1967 25 The Standards of Weights and Measures (Extension The whole. to Kohima and Mokokchung Districts) Act, 1967 1968 60 The State Agricultural Credit Corporations Act, The whole. 1968 ## 6 ----- 1 2 3 4 1969 17 The Companies (Amendment) Act, 1969 So much as is not repealed. 1969 22 The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1969 The whole. 1969 23 The Coal Bearing Areas (Acquisition and Development) So much as is not Amendment Act, 1969 repealed. 1969 28 The Central Sales Tax (Amendment) Act, 1969 So much as is not repealed. 1969 37 The Delhi High Court (Amendment) Act, 1969 So much as is not repealed. 1969 38 The Wakf (Amendment) Act, 1969 So much as is not repealed. 1970 24 The Petroleum (Amendment) Act, 1970 So much as is not repealed. 1970 25 The Merchant Shipping (Amendment) Act, 1970 So much as is not repealed. 1970 51 The Central Labour Laws (Extension to Jammu and The whole. Kashmir) Act, 1970 1971 63 The Jayanti Shipping Company (Acquisition of Shares) Act, 1971 1971 64 The Coking Coal Mines (Emergency Provisions) Act, 1971 The whole. The whole. 1972 58 The Indian Copper Corporation (Acquisition of So much as is not Undertaking) Act, 1972 repealed. 1972 72 The Sick Textile Undertakings (Taking Over of The whole. Management) Act, 1972 1973 15 The Coal Mines (Taking Over of Management) Act, 1973 The whole. 1973 62 The Konkan Passenger Ships (Acquisition) Act, 1973 The whole. 1974 4 The Esso (Acquisition of Undertakings in India) Act, The whole. 1974 1974 37 The Additional Emoluments (Compulsory Deposit) Act, 1974 1976 2 The Burmah Shell (Acquisition of Undertakings in India) Act, 1976 1976 97 The Burn Company and Indian Standard Wagon Company (Nationalisation) Act, 1976 1976 98 The Laxmirattan and Atherton West Cotton Mills (Taking Over of Management) Act, 1976 1976 106 The Untouchability (Offences) Amendment and Miscellaneous Provision Act, 1976 1977 17 The Caltex [Acquisition of Shares of Caltex Oil Refining (India) Limited and of the Undertakings in India of Caltex (India) Limited] Act, 1977 ## 7 The whole. The whole. The whole. The whole. So much as is not repealed. The whole. ----- 1 2 3 4 1978 21 The Deposit Insurance Corporation (Amendment and Miscellaneous Provisions) Act, 1978 1979 28 The Kosangas Company (Acquisition of Undertaking) Act, 1979 1980 64 The Maruti Limited (Acquisition and Transfer of Undertakings) Act, 1980 1981 18 The Essential Commodities (Special Provisions) Act, 1981 1981 19 The Prevention of Blackmarketing and Maintenance of Supplies of Essential Commodities (Amendment) Act, 1981 1981 41 The Burmah Oil Company [Acquisition of Shares of Oil India Limited and of the Undertakings in India of Assam Oil Company Limited and the Burmah Oil Company (India Trading) Limited] Act, 1981 1982 26 The Prevention of Cruelty to Animals (Amendment) Act, 1982 The whole. The whole. The whole. The whole. So much as is not repealed. The whole. So much as is not repealed. 1982 31 The Estate Duty (Amendment) Act,1982 The whole. 1982 38 The Payment of Wages (Amendment) Act, 1982 The whole. 1982 50 The Amritsar Oil Works (Acquisition and Transfer of Undertakings) Act, 1982 1982 58 The Central Excise Laws (Amendment and Validation) Act, 1982 The whole. The whole. 1982 68 The Drugs and Cosmetics (Amendment) Act, 1982 So much as is not repealed. 1983 29 The National Oilseeds and Vegetable Oils Development Board Act, 1983 1983 40 The Textile Undertakings (Taking Over of Management) Act, 1983 The whole. The whole. 1983 44 The Indian Railways (Amendment) Act, 1983 So much as is not repealed. 1984 1 The Banking Laws (Amendment) Act, 1983 The whole. 1984 16 The Ganesh Flour Mills Company Limited (Acquisition and Transfer of Undertakings) Act, 1984 1984 26 The Payment of Gratuity (Second Amendment) Act, 1984 1984 33 The Mogul Line Limited (Acquisition of Shares) Act, 1984 1984 34 The Essential Commodities (Amendment) Act, 1984 The whole. So much as is not repealed. The whole. The whole. 1984 38 The Delhi Development (Amendment) Act, 1984 The whole. 1984 45 The Employees’ State Insurance (Amendment) Act, 1984 ## 8 So much as is not repealed. ----- 1 2 3 4 1984 53 The Estate Duty (Amendment) Act, 1984 The whole. 1984 54 The Levy Sugar Price Equalisation Fund (Amendment) Act, 1984 1984 59 The University Grants Commission (Amendment) Act, 1984 So much as is not repealed. So much as is not repealed. 1984 63 The Dowry Prohibition (Amendment) Act, 1984 The whole. 1984 67 The Taxation Laws (Amendment) Act, 1984 The whole. 1985 3 The General Insurance Business (Nationalisation) Amendment Act, 1985 1985 83 The Futwah-Islampur Light Railway Line (Nationalisation) Act, 1985 So much as is not repealed. The whole. 1986 33 The Merchant Shipping (Amendment) Act, 1986 So much as is not repealed. 1986 66 The Shipping Development Fund Committee (Abolition) Act, 1986 The whole. 1987 27 The National Security (Amendment) Act, 1987 The whole. 1987 43 The Constitution (Scheduled Tribes) Order (Amendment) Act, 1987 The whole. 1989 3 The Direct Tax Laws (Amendment) Act, 1989 The whole. 1989 29 The Employees' State Insurance (Amendment) Act, 1989 So much as is not repealed. 1991 2 The Taxation Laws (Amendment) Act, 1991 The whole except section 6. 1991 34 The Consumer Protection (Amendment) Act, 1991 So much as is not repealed. 1991 44 The Wildlife (Protection) Amendment Act, 1991 So much as is not repealed. 1991 60 The Delhi High Court (Amendment) Act, 1991 So much as is not repealed. 1993 49 The Betwa River Board (Amendment) Act, 1993 So much as is not repealed. 1994 27 The Punjab Gram Panchayat, Samitis and Zilla Parishad (Chandigarh Repeal) Act, 1994 1999 2 The Cotton Ginning and Pressing Factories (Repeal) Act, 1998 1999 4 The Railway Claims Tribunal (Amendment) Act, 1998 The whole. The whole. The whole. 1999 11 The Income-tax (Second Amendment) Act, 1998 The whole. 1999 17 The Patents (Amendment) Act, 1999 The whole. 1999 21 The Companies (Amendment) Act, 1999 The whole. 1999 28 The Income-tax (Amendment) Act, 1999 The whole. 1999 38 The Mines and Minerals (Regulation and Development) Amendment Act, 1999 ## 9 The whole. ----- 1 2 3 4 2000 2 The Telecom Regulatory Authority of India (Amendment) Act, 2000 The whole. 2000 19 The Cotton Textiles Cess (Repeal) Act, 2000 The whole. 2000 24 The Indian Companies (Foreign Interests) and the Companies (Temporary Restrictions on Dividends) Repeal Act, 2000 The whole. 2000 25 The Cotton Cloth (Repeal) Act, 2000 The whole. 2000 26 The Iron and Steel (Amalgamation and Takeover Laws) Repeal Act, 2000 The whole. 2000 27 The Motor Vehicles (Amendment) Act, 2000 The whole. 2000 31 The Army and Air Force (Disposal of Private Property) Amendment Act, 2000 The whole. 2000 32 The Indian Power Alcohol (Repeal) Act, 2000 The whole. 2000 33 The All-India Institute of Medical Sciences (Amendment) Act, 2000 2000 36 The Cable Television Networks (Regulation) Amendment Act, 2000 2000 38 The Rehabilitation Council of India (Amendment) Act, 2000 2000 46 The Workmen's Compensation (Amendment) Act, 2000 2000 47 The Passport (Entry into India) Amendment Act, 2000 The whole. The whole. The whole. The whole. The whole. 2000 51 The Aircraft (Amendment) Act, 2000 The whole. 2000 53 The Companies (Amendment) Act, 2000 The whole. 2001 1 The Taxation Laws (Amendment) Act, 2000 The whole except section 5. 2001 4 The Taxation Laws (Amendment) Act, 2001 The whole except section 8. 2001 11 The Insurance Laws (Transfer of Business and Emergency Provisions) Repeal Act, 2001 2001 17 The U.P. Sugarcane Cess (Validation) Repeal Act, 2001 2001 18 The Post-Graduate Institute of Medical Education and Research, Chandigarh (Amendment) Act, 2001 2001 20 The Banking Companies (Legal Practitioners' Clients' Accounts) Repeal Act, 2001 2001 21 The Electricity Regulatory Commissions (Amendment) Act, 2001 The whole. The whole. The whole. The whole. The whole. 2001 28 The Live-stock Importation (Amendment) Act, 2001 The whole. 2001 31 The Trade Unions (Amendment) Act, 2001 The whole. 2001 32 The Pre-natal Diagnostic Techniques (Regulation and Prevention of Misuse) Amendment Act, 2001 The whole. 2001 34 The Indian Medical Council (Amendment) Act, 2001 The whole. ## 10 ----- 1 2 3 4 2001 35 The Sugarcane Cess (Validation) Repeal Act, 2001 The whole. 2001 44 The Salaries and Allowances of Ministers (Amendment) Act, 2001 2001 55 The National Commission for Safai Karamcharis (Amendment) Act, 2001 2001 56 The Cine-workers Welfare Fund (Amendment) Act, 2001 The whole. The whole. The whole. 2001 57 The Companies (Amendment) Act, 2001 The whole. 2002 13 The Jute Manufactures Cess (Amendment) Act, 2002 The whole. 2002 17 The Passports (Amendment) Act, 2002 The whole. 2002 24 The All-India Institute of Medical Sciences (Amendment) Act, 2002 2002 25 The Constitution (Scheduled Castes) Order (Amendment) Act, 2002 2002 32 The Constitution (Scheduled Castes and Scheduled Tribes) Orders (Amendment) Act, 2002 The whole. The whole. The whole. 2002 44 The Coast Guard (Amendment) Act, 2002 The whole. 2002 45 The National Co-operative Development Corporation (Amendment) Act, 2002 The whole. 2002 50 The Petroleum (Berar Extension) Repeal Act, 2002 The whole. 2002 61 The Constitution (Scheduled Castes) Orders (Second Amendment) Act, 2002 The whole. 2002 63 The Merchant Shipping (Amendment) Act, 2002 The whole. 2002 64 The Medical Termination of Pregnancy (Amendment) Act, 2002 The whole. 2003 1 The Companies (Amendment) Act, 2002 The whole. 2003 14 The Pre-natal Diagnostic Techniques (Regulation and Prevention of Misuse) Amendment Act, 2002 The whole. 2003 16 The Wildlife (Protection) (Amendment) Act, 2002 The whole. 2003 19 The Water (Prevention and Control of Pollution) Cess (Amendment) Act, 2003 The whole. 2003 29 The Banking Service Commission (Repeal) Act, 2003 The whole. 2003 38 The Infant Milk Substitutes, Feeding Bottles and Infant Food (Regulation of Production, Supply and Distribution) Amendment Act, 2003 2003 43 The Airports Authority of India (Amendment) Act, 2003 2003 47 The Constitution (Scheduled Tribes) Order (Amendment) Act, 2003 The whole. The whole. The whole. 2003 52 The Railway Protection Force (Amendment) The whole. ## 11 ----- 1 2 3 4 2003 54 The Taxation Laws (Amendment) Act, 2003 The whole. 2003 56 The Railways (Amendment) Act, 2003 The whole. 2003 57 The Electricity (Amendment) Act, 2003 The whole. 2004 5 The Indian Council of World Affairs (Amendment) Act, 2003 The whole. 2004 8 The Indian Telegraph (Amendment) Act, 2003 The whole. 2004 25 The Customs and Central Excise Laws (Repeal) Act, 2004 The whole. 2005 15 The Patents (Amendment) Act, 2005 The whole. 2005 23 The Navy (Amendment) Act, 2005 The whole. 2005 41 The Payment of Wages (Amendment) Act, 2005 The whole. 2005 47 The Railways (Amendment) Act, 2005 The whole. 2005 55 The Taxation Laws (Amendment) Act, 2005 The whole. 2006 7 The Cost and Works Accountants (Amendment) Act, 2006 The whole. 2006 8 The Company Secretaries (Amendment) Act, 2006 The whole. 2006 9 The Chartered Accountants (Amendment) Act, 2006 The whole. 2006 23 The Companies (Amendment) Act, 2006 The whole. 2006 33 The Juvenile Justice (Care and Protection of Children) Amendment Act, 2006 The whole. 2006 39 The Wildlife (Protection) Amendment Act, 2006 The whole. 2006 42 The Central Silk Board (Amendment) Act, 2006 The whole. 2006 48 The Constitution (Scheduled Tribes) Order Amendment Act, 2006 The whole. 2006 57 The Indian Telegraph (Amendment) Act, 2006 The whole. 2007 4 The Commissions for Protection of Child Rights (Amendment) Act, 2006 2007 25 The Cable Television Networks (Regulation) Amendment Act, 2007 The whole. The whole. 2007 26 The Electricity (Amendment) Act, 2007 The whole. 2007 31 The Constitution (Scheduled Castes) Order (Amendment) Act, 2007 The whole. 2007 36 The Apprentices (Amendment) Act, 2007 The whole. 2007 38 The Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Amendment Act, 2007 2007 42 The All-India Institute of Medical Sciences and the Post-Graduate Institute of Medical Education and Research (Amendment) Act, 2007 The whole. The whole. 2007 44 The Aircraft (Amendment) Act, 2007 The whole. 2007 45 The Payment of Bonus (Amendment) Act, 2007 The whole. 2007 49 The Indian Boilers (Amendment) Act, 2007 The whole. ## 12 ----- 1 2 3 4 2008 11 The Railways (Amendment) Act, 2008 The whole. 2008 12 The Prasar Bharati (Broadcasting Corporation of India) Amendment Act, 2008 2008 13 The Food Safety and Standards (Amendment) Act, 2008 2008 14 The Constitution (Scheduled Tribes) Order (Amendment) Act, 2008 The whole. The whole. The whole. 2008 15 The Maternity Benefit (Amendment) Act, 2008 The whole. 2008 26 The Drugs and Cosmetics (Amendment) Act, 2008 The whole. 2009 2 The Constitution (Scheduled Tribes) (Union Territories) Order (Amendment) Act, 2008 2009 3 The Post-Graduate Institute of Medical Education and Research, Chandigarh (Amendment) Act, 2008 2009 10 The Information Technology (Amendment) Act, 2008 The whole. The whole. The whole. 2009 28 The Carriage by Air (Amendment) Act, 2009 The whole. 2009 34 The Metro Railways (Amendment) Act, 2009 The whole. 2009 45 The Workmen's Compensation (Amendment) Act, 2009 2009 46 The National Rural Employment Guarantee (Amendment) Act, 2009 The whole. The whole. 2009 47 The Payment of Gratuity (Amendment) Act, 2009 The whole. 2010 2 The Salaries and Allowances of Ministers (Amendment) Act, 2009 The whole. 2010 15 The Payment of Gratuity (Amendment) Act, 2010 The whole. 2010 17 The Plantations Labour (Amendment) Act, 2010 The whole. 2010 18 The Employees' State Insurance (Amendment) Act, 2010 The whole. 2010 24 The Industrial Disputes (Amendment) Act, 2010 The whole. 2010 25 The Foreign Trade (Development and Regulation) Amendment Act, 2010 2010 26 The Securities and Insurance Laws (Amendment and Validation) Act, 2010 The whole. The whole. 2010 28 The Energy Conservation (Amendment) Act, 2010 The whole. 2010 32 The Indian Medical Council (Amendment) Act, 2010 The whole. 2010 34 The Mines and Minerals (Development and Regulation) Amendment Act, 2010 The whole. 2010 35 The Essential Commodities (Amendment) Act, 2010 The whole. 2011 10 The Jawaharlal Institute of Post-Graduate Medical Education and Research, Puducherry (Amendment) ## 13 The whole. ----- 1 2 3 4 2011 12 The Juvenile Justice (Care and Protection of Children) Amendment Act, 2011 The whole. 2011 13 The Indian Medical Council (Amendment) Act, 2011 The whole. 2011 18 The National Council for Teacher Education (Amendment) Act, 2011 2011 21 The Cable Television Networks (Regulation) Amendment Act, 2011 2012 1 The Damodar Valley Corporation (Amendment) Act, 2011 2012 2 The Constitution (Scheduled Tribes) Order (Amendment) Act, 2011 The whole. The whole. The whole. The whole. 2012 3 The Chartered Accountants (Amendment) Act, 2011 The whole. 2012 4 The Company Secretaries (Amendment) Act, 2011 The whole. 2012 6 The Prasar Bharati (Broadcasting Corporation of India) Amendment Act, 2011 2012 9 The Petroleum and Minerals Pipelines (Acquisition of Right of user in Land) Amendment Act, 2011 2012 10 The Cost and Works Accountants (Amendment) Act, 2011 The whole. The whole. The whole. 2012 20 The Indian Medical Council (Amendment) Act, 2012 The whole. 2012 24 The Constitution (Scheduled Tribes) Order (Amendment) Act, 2012 2012 25 The Railway Property (Unlawful Possession) Amendment Act, 2012 2012 30 The Right of Children to Free and Compulsory Education (Amendment) Act, 2012 2012 37 The All-India Institute of Medical Sciences (Amendment) Act, 2012 2013 2 The Prevention of Money-laundering (Amendment) Act, 2012 2013 3 The Unlawful Activities (Prevention) Amendment Act, 2012 The whole. The whole. The whole. The whole. The whole. The whole. 2013 13 The Criminal Law (Amendment) Act, 2013 The whole. 2013 19 The National Highways Authority of India (Amendment) Act, 2013 2013 22 The Securities and Exchange Board of India (Amendment) Act, 2013 2013 24 The Constitution (Scheduled Tribes) Order (Amendment) Act, 2013 2013 29 The Representation of the People (Amendment and Validation) Act, 2013 ## 14 The whole. The whole. The whole. Sections 2 and 3. ----- THE SECOND SCHEDULE (See Section 3) AMENDMENTS Year No. Short title Amendments 2013 14 The Sexual Harassment of Women at Work Place (Prevention, Prohibition and Redressal) Act, 2013 In sections 6, 7 and 24, — (i) for the words “Local Complaints Committee”, wherever they occur, the words “Local Committee” shall be substituted; (ii) for the words “Internal Complaints Committee”, wherever they occur, the words “Internal Committee” shall be substituted. 2014 8 The Governors (Emoluments, Allowances In section 2, — and Privileges) Amendment Act, 2014 (i) the words and figure “section 2 of” shall be omitted; (ii) after the brackets and words “(hereinafter referred to as the principal Act)”, insert the words and figure “in section 2”. ## 15 -----